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.
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.
