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Local Government Finance Forum LG fin’ 05 November 16 th 2005. Larry. N. Mitchell Finance & Policy Analyst (Local Government). © Larry Mitchell 2005. Agenda. ‘Financial’ involvement in the LTCCP? (a poll) Research paper … data requirements A little bit of history
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Local Government Finance ForumLGfin’05November 16th 2005 Larry. N. Mitchell Finance & Policy Analyst(Local Government) ©Larry Mitchell 2005
Agenda • ‘Financial’ involvement in the LTCCP?(a poll) • Research paper … data requirements • A little bit of history • A case study for setting financial targets • A case study for monitoring outcomes • Future developments.
Women are from Venus …but are the LTCCP planners ‘of this world’? • The Community Plan conference - are we on the same planet? Have we left the planners a vacuum?
Financial involvement in the LTCCP (a poll) • Are Accountants really involved? Are they interested or have they been outflanked? • Evidence from Council’s surveyed …less than 1 in 5 (20%) have the Finance second tier ‘Director’ leading the LTCCP team • The place of the LTFS its prime purpose(s)
It all comes down to the $$$’s ‘We hope to achieve improvements to all well-being outcomes’
What is the purpose? • All of this (LTCCP) effort must (one hopes) be both pre-meditated and done for a reason …economic gains firstly • A research paper -Some 'first principles' relating to the nature, extent and quality of the Long-Term Council Community Plan, (ltccp) data … a forerunner to an Audit Guideline? www.kauriglen.co.nz/larry/marketing/LTCCPdataFirstPrinciples.doc
What is the purpose? • OAG’s LTCCP audit a ‘self assessment and compliance approach’ which is not very helpful for achieving ‘results’ … • So what do Councils really want? … and • Who is to lead? • Are we going to get social engineering or economic rewards? • How will we know?
What is the purpose? • The 80:20 rule, Council’s level of discretionary expenditures • Socio economic goals yes …but social engineering? … I think not. • The pivotal role of the AMP’s and the LTFS as the basic framework for the LTCCP • If we want improvements over all QBL outcomes • It all gets back to the $$$’s in the end …
Research paper LTCCP data requirements • LTCCP data requirements …why these need to be specified and are important • High expectations but nominal and sensible ones based on acquiring ‘data fit for the LTCCP purpose’ • An audit compliance ‘tick’ objective … or ‘meaningful and useful’ information serving Council and Community decision making?
A little bit of history • Missing in action … the OAG, LGNZ and others? • DIA… excellent information …as far as it goes. • StatsNZ help the DIA but … • LTCCP needs not addressed by DIA and • No comparative sense …done deliberately • No sense of goal setting
A little bit of history • Other agencies …disappointing? • The OAG have not delivered • Other agencies have cooperated well but LGNZ and SOLGM have not assisted the sector in ‘performance’ and data terms • Regional Council groupings have shared outcomes and some shared data • The 80:20 rule applies to social indices
Why Comparative analysis? • The benchmarking alternative does not work • There is no better available option than some form of comparative analysis • Targets and Outcomes cannot be set in a vacuum • There is a need to ‘locate’ every Council’s present and planned positions using past results, desired results and achieved results whilst employing appropriate target setting, monitoring and reporting tools • Examples …
Two case studies… for setting financial and economic targets • Data Mining and • Monitoring Outcomes
Second case study… monitoring outcomes the ‘Outcomes-Results’
Future developments • Put yourself in the 2009 position or later • Ask the ‘thermos flask’ question… How will we know? … results • The actual results at an Outcomes level of Outcomes that directly affect Economic Well Being (including Financial Outcomes and Ability to Pay) including … • Why did this we get these results? • What were the influences over these results? • Were the results satisfactory or not? • Comparative assessments • Where do responsibilities lie for the results?
Where to now? • If you are on road without a map you are either lost, anywhere, nowhere and all of the above • Consider the need for targeting, monitoring, measurement and reporting tools • Consider the need for appropriate measurement tools.
A roadmap … or the bush • ‘If the Outcomes planned and hoped for do not eventuate (or are exceeded)… • Was this because the target needs adjusting or not? … comparisons at work • What were the major influences that produced this result? …and were these … • Due to a worse (or better) performance of NZ Inc or of our District …which one? and by how much?
A roadmap … or the bush … an example Our local District economy as measured in terms of local Incomes, the local Economy and its Wealth base has grown by say 10% over the three years to 2009 whilst NZ Inc and other similar Councils have grown by only say 6% … what has this been due to?, was it a result that we can take (some) credit for?, and to what degree do we now modify our 2009-2019 LTCCP Outcomes? Go figure.
PO Box, Puhoi, Auckland, NZ Ph: 09 422 0598 Fax: 09 422 0700 Mobile: 027 479 2328 All phones: 0800 784 648 Email: larry@kauriglen.co.nz Website: www.kauriglen.co.nz/larry Larry Mitchell is a Finance & Policy Analyst working with Local Government. His products include‘Base Stats with Trendz’reports, which now include‘Outcomes-Results’and‘Data Mining’benchmarks.