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| Considering the financial challenges public entities face today, from limited revenues to increasing expenditures, the need for sound financial planning is greater than ever. |
| PMA FPP™ is a long-term (five-year) financial tool that provides a clear and succinct financial path for a public entity, allowing a governing board, an administration and community stakeholders to make well-informed data-driven decisions. |
| What does PMA FPP™ Entail? |
| PMA FPP™ is a financial planning program that allows interaction with a full spectrum of assumptions in order to project a public entity's financial position. PMA projects these positions by analyzing years of historical Annual Financial Report data and combines the analysis with a public entity's current budget and projections for revenue and expense variables. |
| Overall, PMA FPP analyzes more than 2,000 line items per Fiscal Year (FY) in order to provide a comprehensive financial path that will become an integral part of the financial management process and an indispensable tool for sound fiscal policy. Some of these line items include: five years of annual financial reports, current budget, tax levy extensions, debt retirement schedules, equalized assessed valuations, new property growth, Consumer Price Index, tax-cap limitations, referendum rate module, class size by grade, student enrollment by grade, teacher salary scatter-gram and staff retirement plan. |
| Referendum Planning |
| PMA FPP's referendum planning module produces a year by year implementation strategy. It estimates the impact of referendum timing, ballot language calculation, increased local resources, and changes to General State Aid within the context of the public entity's five year financial projections. |
| PMA FPP Process |
| PMA works closely with senior management throughout all phases of FPP. This includes development of a historic database, determination of current financial position, adjustment of selected variables to project a realistic financial picture, delivery of customized output for use by the board of education, committees, and staff, as well as ongoing updating and managing. |
| 1. Historical data analysis |
| Incorporating over 2,000 line items from each year's Annual Report, FPP analyzes five years of historical data and runs calculations down to the individual program level within each fund. |
| 2. Scenario analysis |
| Once the data has been analyzed, public entities have the ability to adjust their projections for virtually any revenue or expense variable that might reasonably impact its finances. |
| 3. FPP Model Output |
| FPP scenario analysis provides immediate feedback. Once a variable is changed in the model, the graphic and numeric output instantly changes to reflect the new information. Your PMA advisor(s) can work with public entity staff and board members to provide real-time feedback as they discuss solutions to a particular financial problem. |
| 4. Changes in assumptions |
| PMA FPP allows for changes to many factors, some of which may include: |
- Consumer Price Index (CPI)
- Enrollment increase/decrease
- Professional staff scatter-gram
- Employee benefits by group
- Special ed categorical aid
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- Equalized Valuations
- Professional staff ratio
- Retirement incentives
- Tax collection rate
- Transportation costs
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- New property growth
- Tax rates
- Salary by group
- General state aid calculation
- Utility costs
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