By Xiaohu (Shawn) Wang
The hot version of this renowned publication presents a step by step consultant on the way to use monetary administration and budgeting instruments within the public region. The booklet encompasses a useful, case-study process, and comprises abundant routines and examples. it's designed as a textbook for classes on public monetary administration or public budgeting that target the applying of budgeting and monetary administration instruments. Public carrier execs also will make the most of this useful primer.
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Extra resources for Financial Management in the Public Sector: Tools, Applications, And Cases
Forecast the franchise tax revenues of Years 10 to 12. Write a report on your forecast. 6. 12 shows a city’s miscellaneous revenues for the last ten years. ” About 20 percent of the miscellaneous revenue was not included before Year 6. Before forecast, the finance director told you that he would rather underestimate than overestimate this revenue, as overestimation leaves the city no room for spending flexibility. The director even suggested that he would take 95 percent your forecast. What is your strategy to deal with this forecasting conservatism?
73 percent. Suppose that we consider three increments in TMA forecasting. To forecast the revenue in Year 10, we have three increments: $3,907,110 – $3,766,661 = $140,449; $3,766,661 – $3,281,836 = $484,825; and $3,281,836 – $2,994,785 = $287,051. Therefore, the forecast is $4,211,218. 63 percent. 08 percent. 15 percent. 34 In regression forecasting, we can use the data of the first nine years to forecast the revenue in Year 10 and then compare it with the actual revenue in that year to get APE.
Tax base and tax rate are predictors of tax revenue. , the millage = 5). The forecast property tax revenue for this year is $10,000,000 × 5/1,000 = $50,000. This tool may be accurate for short-period forecasting (one to three years). It probably is more accurate for revenues whose predicators can be controlled to some degree. For example, in the above example, if local property tax rates are determined by a local government, forecasters in that government will know the rates for the forecast period, and the forecast could be more accurate because of reduced uncertainty in forecasting.