Financial Forecast for Local Government
Develops forward-looking financial projections by gathering inputs from across the organization and modeling expected outcomes.
Supports Local Government Act compliance, freedom of information requirements, and public accountability standards.
Workflow Stages
Input Collection
Gather rates revenue pipeline data, expense commitments, headcount plans, and other inputs from division leaders.
Inputs
- Sales pipeline report
- Division spending plans
- Headcount and hiring plans
Outputs
- Consolidated input data
- Assumption documentation
- Missing data follow-up list
Model Development
Build or update the financial model incorporating all inputs and key assumptions.
Inputs
- Consolidated input data
- Financial model template
- Historical trend data
Outputs
- Updated financial model
- Scenario analysis (best, expected, worst)
- Key driver sensitivity analysis
Variance Analysis
Compare the forecast to the budget and prior forecast to identify and explain variances.
Inputs
- Financial forecast
- Approved budget
- Prior period forecast
Outputs
- Variance analysis report
- Explanation for significant variances
- Trend observations
Leadership Review
Present the forecast to leadership for discussion, challenge, and endorsement.
Inputs
- Forecast presentation
- Variance analysis
- Scenario analysis results
Outputs
- Leadership feedback incorporated
- Endorsed forecast
- Action items from discussion
Decision Points
- • Does leadership endorse the forecast assumptions?
- • Are corrective actions needed?
Distribution and Monitoring
Distribute the endorsed forecast to stakeholders and establish monitoring checkpoints.
Inputs
- Endorsed forecast
- Stakeholder distribution list
- Monitoring metrics
Outputs
- Forecast distributed
- Monitoring dashboard updated
- Next forecast cycle scheduled
Frequently Asked Questions
How accurate are the forecasts expected to be?
Forecast accuracy targets are defined by the finance team. Variances within an acceptable threshold are considered normal. Accuracy is tracked over time to improve the forecasting process.
What is the difference between a forecast and a budget?
The budget is the approved financial plan set at the beginning of the period. The forecast is a regularly updated projection that reflects current conditions and expected outcomes.
How often are financial forecasts updated?
Standard forecasts are produced monthly, with more detailed rolling forecasts updated quarterly. Ad-hoc forecasts are produced when triggered by significant council events.
Ready to implement this workflow in your business?
Our team can implement this workflow into your business operations with custom tools and training.