F23 Control income and expenditure
F23.2 Update budget and cash flow against variances and contingencies
Performance Criteria - this involves being able to...(a)monitor and audit allocated budgets and accurately calculate fluctuations in financial performance
(b)estimate cash flow projections against actual income and expenditure
(c)assess actions which are recommended by staff and compare them with relevant sources of information about allocated budgets and cash flow projections
(d)recommend ways of dealing with variances and contingencies in a way which enables decisions to be made
(e)take appropriate corrective action promptly and inform staff about the changes that are required to allocated budgets
(f)investigate the reasons for variances and contingencies and take action which will prevent them happening again
(g)inform interested parties about actions which will require major restructure of allocated budgets and cash flow projections
(h)update allocated budgets accurately and reissue them to people who have financial responsibilities / The Range...
[1]Budgets:
• earned income;
• employment costs;
• capital plant and equipment;
• materials;
• liabilities;
• subcontract costs;
• consumables
[2]Cash flow projections:
• income receivable;
• expenditure
[3]Variances:
• overspend;
• underspend;
• change in value of the work
[4]Contingencies:
• delays in receivables;
• project and contract delays;
• interruptions;
• risk
[5]Interested parties:
• colleagues;
• financial providers
F23 Control income and expenditure
F23.2 Update budget and cash flow against variances and contingencies
The Evidence - performance and processProduct Evidence:
(1)Record(s) of monitored and audited budgets, which include calculated fluctuations, cash flow projects (a,b) [1,2]
(2)Assessment(s) of actions which are recommended by staff (c) [1,2]
(3)Recommendation(s) about ways of dealing with variances and contingencies which include investigations and corrective action (d,e,f) [1,3,4]
(4)Information provided to decision makers about restructuring of allocated budgets and cash flow projections (g) [1,2]
(5)Updated budget(s) (h) [1]
Process Evidence:
None applicable / The Evidence - knowledge and understanding
(1)How do you calculate fluctuations in financial performance? (application) (a) [1]
(2)How do you take appropriate corrective action promptly and inform staff about the changes that are required to allocate budgets? (application) (f) [1,4]
(3)How do you update allocated budgets and reissue them to people who have financial responsibilities? (application) (g) [1]
(4)How and why do you monitor and audit allocated budgets? (analysis) (a) [1]
(5)How do you inform interested parties about actions which will require major restructuring of allocated budgets and cash flow projections? (application) (g) [1,2,5]
(6)How and why do you estimate cash flow projections against actual income and expenditure? (analysis) (b) [2]
(7)How and why do you assess actions which are recommended by staff? (analysis) (c) [1,2]
(8)How and why do you compare actions which are recommended by staff with relevant sources of information about allocated budgets and cash flow projections? (synthesis) (c) [1,2]
(9)How do you investigate the reasons for variances and contingencies? (understanding) (f) [3,4]
(10)How do you take action to prevent variances and contingencies happening again? (application) (f) [3,4]
(11)How and why do you recommend ways of dealing with variances and contingencies? (synthesis) (d) [3,4]