Develop budgets in the creative industries
Overview
This Standard is about developing budget plans in the creative industries that enable work to be carried out to the appropriate quality, whilst taking into account cost effectiveness. It requires you to estimate or research costs, negotiate budgets so that they are sufficient for the work and agree budgets and any sub-budgets that may be necessary. Budgets may be internal or external to the organisation.
Performance criteria
You must be able to:
1 confirm the business objectives, scope, timescales and, if appropriate, the overall budget
2 confirm the artistic objectives and any special requirements which will impact upon the process
3 determine the most appropriate requirements in terms of materials, technology, outsourcing, delivery and personnel and their likely costs that will meet the overall needs of the project
4 if relevant, determine the size of the budget available and clarify whether any allocations have already been made
5 identify and record allowance for contingencies to address potential problems and circumstances that could affect budget
6 provide visual representations to others to clarify the scale and type of materials required
7 interpret the implications of project specifications and creative parameters upon budgets
8 use accurate information to calculate realistic and cost effective budgets
9 present budgets to relevant people for potential agreement
10 negotiate and provide structured arguments if necessary to support the size and allocations of proposed budgets
11 agree a final budget which will meet the objectives and specification for the project
12 record all agreements and ensure that all parties confirm their acceptance of the agreement
13 ensure that details regarding the size of the budget and its planned allocation are available to people that require this information
14 confirm that there is sufficient petty cash provision, if relevant, and that arrangements are in place to store it correctly in line with insurance instructions
15 confirm that there are sufficient allocations to cover
exchange rate differences, if necessary
Knowledge and Understanding
You need to know and understand:
1 details of
the overall project, its objectives and timescales
2 where to get information about overall
budgets and existing allocations
3 the creative objectives and how they
impact on business objectives
4 specific time and work implications for
all appropriate creative input
5 who to consult to get accurate information
about likely costs, both in-house, in partner organisations and external to the
organisation
6 the relationship between the budget and
the schedule
7 ways to make sure others understand the
scale and type of resources required
8 the current standard prices for resources
9 what constitutes self-employment or employment, for the crew crew and the impact on the budget
10 how to identify options which offer best
value for money
11 the types of contingencies that may arise,
and how to take them into account when estimating costs
12 how to identify petty cash requirements with
insurers
13 how to accurately calculate a budget
14 how to calculate exchange rates
15 budgetary headings that should be used
16 how to present budgets to others
17 how to negotiate and provide structured
arguments to support the size and allocations of your budgets
18 procedures for recording agreed budgets
19 who has the right to access budgetary
information and who needs to be involved in agreeing initial and revised budgets
20 which budgeting and financial control
package to select, and how to use it
21 when it is appropriate to seek financial advice and
how to access it