Develop and explain a policy statement based on your findings to manage areas of concern.
In a paper, use the Financial Trend Monitoring System to identify financial factors affecting the financial solvency of a state, local, or nonprofit agency. You may choose a new agency to analyze or use one of the agencies you looked at in a previous assignment. Using the financial factors from Table 7.1, pick 2–3 factors and conduct a trend analysis.Evaluate selected financial factors by analyzing financial data over at least the last five years. Title this section Trend Analysis.See Table 7.1 Factors Affecting Financial Condition for a list of financial factors.Create a table/chart with each factor indicating the direction of the trend. Title this section Data Analysis.Justify your table/chart for each factor by writing a brief evaluation of the trend. Title this section Trend Evaluation.Develop and explain a policy statement based on your findings to manage areas of concern. Title this section Policy Statement.Your assignment must follow these formatting requirements:Include an Introduction and Conclusion in the 4–5 page count. Your cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, the date, and the reference page are not included in the required assignment page length.This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course.The specific course learning outcome associated with this assignment is:Evaluate financial trends for a selected agency and propose fiscal recommendations.Table 7.1 that is needed:Table 7.1 Factors Affecting Financial ConditionFinancial Factors:A.Revenues: growth, flexibility, elasticity, dependability, diversity, and administration.B.Expenditures: growth, priorities, mandated costs, productivity, and effectiveness.C.Operating Position: operating results, fund balances, reserves, and liquidityD.Debt Structure: short term debt, long term debt, debt schedules, and overlapping debt.E.Unfunded Liabilities: pension obligations, pension assets, and postemployment benefits.F.Condition of Capital Plant: maintenance effort, capital outlay.Environmental Factors:A.Community Needs and Resources: population, density, age, income, property value and distribution, home ownership, vacancy rates, business activity, crime and employment rates.B.Intergovernmental Constraints: intergovernmental mandates and restrictions on revenue.C.Disaster Risk: potential for natural disasters and local preparedness.D.Political Culture: attitudes toward taxes, services, and political processes.E.External Economic Conditions: national and regional inflation, employment and market conditions.In order to use the system, analysts simply have to address the issues as they are laid out. Nollenberger, et al (2003) lays out three basic evaluation questions for each area: Financial, Environmental, and Organizational Setting.Financial Factors: Does your government currently pay the full cost of operating, or is it postponing costs to a future period when revenues may not be available to pay these costs?Environmental Factors: Do the environmental factors provide enough resources to pay for the demands they make?Organizational Setting: Do your management practices and legislative policies enable your government to respond appropriately to changes in the environment?
