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Objective:
Top
recommendations:
Review the board’s budget processes and
development of operating priorities
VBE develop a three-year financial forecast in the Strategic Plan
in order to better develop operating priorities in line with the
Strategic Plan
VBE not publicly release the Initial Preliminary Projections to
avoid creating misperceptions by the Public of the VBE’s financial
circumstances
VBE critically review documents created in preparing the budget
to ensure information is useful to stakeholders
Section
3.4.3
3.4.1.1
3.4.1.5
Objective:
Current state
findings:
Top
recommendations
Review the 2014/15 to 2017/18 fiscal year
forecasts and strategies to balance the multi-year
budgets
Forecasting approach to estimate revenues and expenses for the
Base Budget, Preliminary Budget and Amended Budget generally
reliable (subject to the discussion in Section 4.4 that explains
the significant variance between actual results and the
forecasted deficit)
Unreasonable high differences have been observed between the
Board approved Amended Budget and the actual results,
primarily resulting from unexpected revenue and lower
expenses, the late payment of the Holdback Funds and not
recognizing unspent Internally Appropriated Expenses
The Strategic Plan does not contain a long-term financial plan to
guide the Board in developing budget priorities
MEd undertake a review of the holdback process to mitigate the
size of the holdback and accelerate the release of the holdback
funds
VBE prepare a three-year financial forecast to allow for longterm
decision making and the assessment of various options to
maintain a balanced budget (such forecasting should be aided by
an iterative financial model)
Section
3.5
3.5
3.5.3
3.5.2
3.5.3
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