financial distress indicators for local communities

As stewards of public funds, community leaders are responsible for managing those dollars responsibly and effectively. But how will you know when there is trouble ahead? The red flags are there if you know what to look for. 

Financial Distress Indicators for Local Communities (a.k.a., the "dirty dozen"):

1. Declining fund balance
2. Fund balance below target
3. Deferred capital outlay and maintenance
4. Struggling to make required pension contribution
5. No plan or ability to fund retiree health care
6. Lack of timely financial reports
7. Excessive program subsidies
8. Borrowing to cover cash flow needs
9. No millage capacity and at or near full development
10. Declining bond rating
11. Over reliance on significant tax payer or customer
12. No long-range financial plan

For more than 50 years, governmental organizations have trusted Plante & Moran to guide them through the maze of reporting requirements and advise them on everything from strategic planning to technology decisions. We’ve seen it all. And we can help. Please contact us to see how we can put our experience to work for you.