Opportunity for Strategic Planning and Non ... - The FiscalDoctor Is In

Opportunities occur in moments of turmoil. Governmental accounting transparency is being drug kicking and screaming into the sunlight.

There has just been a seismic shift on governmental fund balances with more truth coming on the magnitude of unfunded governmental pension benefits with two newly passed governmental accounting regulations.

The Governmental Accounting Standards board (GAS approved Statement Number 67, Financial Reporting for Pension Plans, and Statement Number 68, Accounting and Financial Reporting for Pensions. Statement Number 68 will require governments with defined benefit pension plans to disclose a net pension liability on their balance sheets.

Do not be put off with the dull and dreary and yet crucial category. Basically the regulatory accounting agency for governmental accounting (US cities and states) will have to start admitting (by no later than 2014, with early adoption recommended) a lot of the unfunded liabilities for employee pension costs (estimated by the PEW foundation at well over one trillion dollars). Most governmental ratios of funded pension costs will drop several points, increasing pressure for more taxes or cutting benefits of retirees. Think of Illinois and California and how little maneuvering room they have to absorb this 800 pound gorilla that leaders knew was there but preferred to ignore, until a better time occurred.

This so called blind spot really is more of a deliberate communications issue ranging between the hope that someone else will fix it or a hope to wait as long as possible to address the issue or a concern that with the acknowledgement of the issue will come blame. Whatever the background or reason on how we got here, how can you make lemonade out of these lemons?

Based on this overview of a moment of turmoil that is rapidly approaching, where can you look for opportunities? How about thinking outside the box to consider issues like the following:

How many governmental units will rapidly need updated strategic plans, bereft of the wishful thinking assumptions used in the past?

How much legal work is available for the almost guaranteed computation of those liabilities as an requirement to renegotiate benefits to sustainable levels so your state and local government does not file bankruptcy like Stockton, California just did?

How much more willing will business be to sign up for property tax rendition services to limit looming property tax rate and valuation increases?

How many businesses and nonprofits that depend for governmental business will need help on a facilitated contingency planning session?

Where else is there an opportunity from this formerly invisible risk that must now be faced?

Bottom line? - Find Your Million Dollar Blind Spot Opportunities to Accelerate Correct Fiscal Leadership Decisions!

Nurture Financials - Avoid Disaster! Helping your company become fiscally fit and make you more money. THE NUMBERS WILL NOT SCARE YOU WHEN YOU LEARN TO apply this information to improve your fiscal management, profitability, re-engineer business models, and strengthen or gain competitive advantage in the marketplace.

And apply the free Fiscal Test available at http://fiscaldoctor.com/fiscaltest.html.

From Gary W Patterson, http://www.FiscalDoctor.com FiscalDoctor? Copyright 2011

Source: http://fiscalclinic.com/2012/08/14/opportunity-for-strategic-planning-and-nonprofit-specialists.aspx?ref=rss

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