Long-Term Financial Planning for Governments

LONG­TERMFINANCIAL PLANNING

GO V E R NM E N T

A 2­minute Overview

S T R A T E G Y   &  F O R E C A S T I N G / B U D G E T I N G

Long­term financial planning consists of

defining a strategy within the constraints of a

forecast or budget.

WHAT IS IT?

E I G H T   R E A L ­ W O R L DB E N E F I T S

Incorporate financial perspective

Stimulate long­term thinking

Stimulate big­picture thinking

Frame specific issues

Clarify strategic intent

Impose discipline

Communicate to citizens

Demonstrate good management

WHY DO IT?

7   C R I T I C A L   C O M P O N E N T SF O R   S U C C E S S

5­ to 10­year time horizon

Includes all funds

Periodically scheduled

Data & analysis­based

Strategies to reach financial balance

Monitoring & reporting

Visibility to electeds & public

ESSENTIALELEMENTS

4   S T E P S   T H A T   T U R N   I N T OA   C O N T I N U O U S   P R O C E S S

Mobilization

Analysis

Decision

Execution

WHAT'S THEPROCESS?

MO B I L I Z A T I O N

The CEO/CFO/Financial Director:

WHAT'S THEPROCESS?

Outlines the process, purpose, and people

Gathers preliminary info (environmental scan)

Identifies services, policies, and priorities

Validates and/or creates financial policies

A N A L Y S I S

The CEO/CFO/Financial Director conducts:

WHAT'S THEPROCESS?

Fiscal environmental analysis

Revenue and expense projections

Debt analysis

Financial balance and imbalance analysis

D E C I S I O N S

The governing body makes decisions based on

analysis or service­level adjustments.

WHAT'S THEPROCESS?

E X E C U T I O N

The CEO/CFO/Financial Director executes the

decisions by putting decisions into effect and

monitoring/evaluation results and outcomes.

WHAT'S THEPROCESS?

LONG­TERM FINANCIALPLANNING  AT A HIGH LEVEL

SINCE

WE HUSTLE

StrategicPlan

SINCE

WE HUSTLE

Long­TermFinancial Plan

SINCE

WE HUSTLE

CapitalImprovement Plan

Budget

Outcomes

BENJAMIN HART, CPA

QUESTIONS?

Vice President, Assurance Services

Allen, Gibbs & Houlik, L.C.

          [email protected]

          linkedin.com/in/benjaminhartcpa

          @bohartcpa

          316.291.4159