LTFP

LTFP -> 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.

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.

Related Pages

• Finance & Accounting

Contributors

The following site members have contributed to this page:

• Wayne Eddy

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

See Also

• Acronyms