NZQA Expiring unit standard
25941 version 3
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Title
Demonstrate and apply knowledge of the budgeting process for an
organisation
Level
5
Credits
8
Purpose
People credited with this unit standard are able to: explain the
purpose of budgets for an organisation; prepare budgets for an
organisation; and review actual results against the budget.
Classification
Accounting > Accounting - Middle Level
Available grade
Achieved
Entry information
Unit 11622, Demonstrate knowledge of the nature of
accounting and prepare financial statements for an entity; and
Unit 25939, Demonstrate and apply knowledge of an
accounting system; or demonstrate equivalent knowledge and
skills.
Recommended skills
and knowledge
Explanatory notes
1
People must be assessed against this unit standard in their workplace using naturally
occurring evidence, or in a realistic simulation of such a context. Competence must
be demonstrated within timeframes expected in a commercial environment.
2
Organisation may include but is not limited to – a community club, a small-to-medium
enterprise.
Outcomes and evidence requirements
Outcome 1
Explain the purpose of budgets for an organisation.
Evidence requirements
1.1
The purpose of budgets is explained in terms of their use by managers.
Range
purpose includes but is not limited to – planning, control.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
1.2
25941 version 3
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The explanation identifies two implications that budgeting has on managers’
behaviour.
Range
may include but are not limited to – monitoring, prioritising.
Outcome 2
Prepare budgets for an organisation.
Range
budgets include but are not limited to – sales, expenses, cash, profit and loss,
balance sheet.
Evidence requirements
2.1
Data is gathered and validated.
Range
2.2
historical data, projected data.
Any problems in gathering data are identified.
Range
problems – missing data, delayed data, exceptions.
2.3
Budget calculations are supported by verifiable evidence.
2.4
Budgets are linked to produce the budgeted profit and loss, and balance sheet.
Outcome 3
Review actual results against the budget.
Range
budgets – cash, profit and loss.
Evidence requirements
3.1
Variances between budgeted and actual results are identified.
3.2
Significant variances are identified and remedial action is recommended.
Range
four variances.
Replacement information
This unit standard and unit standard 11620 have been
replaced by unit standard 29017.
This unit standard is expiring. Assessment against the standard must take place by
the last date for assessment set out below.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25941 version 3
Page 3 of 3
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
21 August 2009
31 December 2018
Rollover
2
24 October 2014
31 December 2018
Review
3
19 May 2016
31 December 2018
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016