Match the time frame with the purpose of the forecast. ![]() ![]() The prospective audience may require a certain set of data and related assumptions. Clarify the intended purpose of the forecast.Several action steps may increase the reliability of forecasts, if taken before forecasts are prepared. When this is done, current budgetary decisions may be evaluated for their long-term results. Additionally, forecasting provides fiscal impact analysis that may be integrated into the budget development process. Forecasts of projected enrollments, property tax base and revenues, costs associated with salary adjustments, and so on, are important elements in setting baseline budgetary guidelines and creating the basis for the assumptions used to prepare budgets. Forecasting creates the framework for anticipatory management.Īlthough financial forecasting should be a continuing process, it is most important as a component of budget development. Forecasts provide valuable insight into future issues, which allows administrators to be proactive. It enhances decisionmaking at all levels of administration.For example, enrollment forecasting may reveal growing student populations and focus attention on the need for increased resource allocations for staff, facilities, or both. It clarifies trends, needs, and issues that must be addressed and evaluated in the preparation of budgets.Thus, budgetary priorities may be evaluated on the basis of their long-term impacts. It facilitates planning efforts by quantifying the future costs and benefits of strategic decisions.Financial forecasting is important for several reasons such as the following: It is an integral part of all ongoing planning efforts. Appendix E-Criteria for Distinguishing Equipment From Supply ItemsĬhapter 3: Budgeting - Financial Forecasting and Planningįinancial forecasting is the practice of projecting the quantitative impact of trends and changes in the operating environment on future operations.Appendix D-Illustrative Financial Statements for an Independent School District.Appendix A-Summary of Account Code Changes Since 2003.Chapter 7: Cost Accounting and Reporting for Educational Programs.Chapter 6: Account Classification Descriptions.Preparation of Construction Project Budgets and Related Financing.Budgets for Multiyear Construction Projects.Planning for Annual and Multiyear Construction and Grant Programs.Operating Budget Responsibilities and Guidelines.Chapter 2: Financial Reporting Within a System of Education Information. ![]()
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