Long-Term Financial Plan

A long-term financial plan is a financial plan that forecasts expected revenue & expenditure over a period of ten or more years.

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The Local Government Association of South Australia stipulates that a long-term financial management plan should contain:

  • A list of all the assumptions that have been used in developing the plan;
  • A statement of expected revenues and their source, over the relevant time frame;
  • A statement of expected expenditures, based on the current strategic management plans;
  • The service standards that underlie the expenditure plans;
  • The performance measures to be used to monitor achievement of the plans;
  • Links and references to strategic and other management plans;
  • Details of the sensitivity analysis performed, which highlight the factors or assumptions most likely to affect the long-term financial performance; and
  • Draft budgets for the relevant time frame – these could be in the form of different scenarios, e.g. most likely, optimistic, conservative;”

Linking asset data to long-term financial plans is a requirement of the Queensland Asset Management Advancement Program.

National Asset Management Assessment Framework

The National Asset Management Assessment Framework questionnaire suggests that a Long Term Financial Plan should include a sensitivity analysis and scenario modelling to optimise decision making.

External Links & References

  1. Bayside City Council Long Term Financial Plan
  2. IPWEA LTFP Practice Note
  3. Integrating long term financial planning - Ray Burton - Townsville City Council
  4. Google Search
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