NZQA registered unit standard
26366 version 3
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Title
Prepare and use budgets for an entity
Level
4
Credits
Purpose
5
People credited with this unit standard are, for an entity, able
to: prepare operating, cash, and capital budgets; and identify
and address budget variances.
This unit standard is for people who are not financial specialists
or experts but who need financial knowledge and skills in their
workplace.
Classification
Financial Management > Financial Skills
Available grade
Achieved
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
An entity may include but is not limited to – an entire organisation; a part of an
organisation such as a cost-centre, department, or branch; a small-to-medium
enterprise (SME), a community group such as a sports club.
Outcomes and evidence requirements
Outcome 1
Prepare operating budgets for an entity.
Evidence requirements
1.1
Available budget policies, guidelines, timeframes, procedures, and long-range
plans are identified to inform budget preparation.
1.2
Data is gathered and validated.
Range
historical data, projected data.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
1.3
Internal and external factors are identified which may impact on the budget.
Range
1.4
26366 version 3
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internal and external factors – political, economic, social,
technological, environmental (PESTE);
identification may be by – SWOT analysis, market analysis,
PESTE analysis.
Budgets are prepared consistent with gathered data.
Range
budgets – income, expenditure.
Outcome 2
Prepare cash budgets for an entity.
Evidence requirements
2.1
Cash budgets are prepared in accordance with the predicted cash-flow needs of
operating and capital budgets.
2.2
Deficiencies and surpluses in cash-flows are identified and options for dealing
with them are recommended.
Outcome 3
Prepare capital budgets for an entity.
Evidence requirements
3.1
Capital budgets identify the costs of proposed capital investment.
Range
3.2
one of – acquiring new capital assets, developing new products,
expanding services.
Capital budgets are linked to capital investment decisions as identified in longrange plans.
Outcome 4
Identify and address budget variances for an entity.
Range
one of – operating budget, cash budget, capital budget.
Evidence requirements
4.1
Purpose of the budget is explained in terms of its benefit to the entity.
Range
4.2
purpose – planning, control, review.
Variances between budgeted and actual results are identified.
Range
regularly during budget period, at end of period.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
4.3
26366 version 3
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Corrective actions are recommended that address causes of variances that may
significantly affect the entity.
Replacement information
This unit standard replaced unit standard 1857.
Planned review date
31 December 2020
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
21 May 2010
31 December 2016
Rollover
2
18 April 2013
N/A
Rollover and
Revision
3
17 September 2015
Republished
3
11 March 2016
N/A
N/A
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 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.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016