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Budget and Financial Analysis
Budget analysis is an in-depth review of proposed and actual expenditures and revenues of an agency or program. Several years of data are typically analyzed both by cost center and individual expenditure or revenue line item to determine trends and to assess the benefits.
Financial analyses involve assessing an organization´s financial position, including its fund balances and reserves, current and future cash flow needs, and current and future revenue flows.
Budget and financial analyses include:
- Budget analysis
- Assessments of financial condition, financing plans and debt management
- Internal service fund analyses
- Activity cost analyses
- Financial modeling and projections
- Prospective financial analyses
- Revenue enhancement analyses
- User fee/cost recovery analyses
- Utility rate analyses
- Analyses of contracting for services
The benefits of budget and financial analyses include:
- Evaluation of appropriateness of planned expenditure levels
- Identification of revenue enhancement opportunities
- Assessment of financial position before embarking on a multi-year capital project or expansion
- Identification of excess fund balances or reserves
- Identification of inadequate reserves for future costs