EURO 2024 Copenhagen
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134. Bandwidth planning for public authorities using the example of german municipalities

Invited abstract in session WB-59: OR in Accounting: Planning, Taxation, and Reporting, stream OR in Financial and Management Accounting.

Wednesday, 10:30-12:00
Room: S08 (building: 101)

Authors (first author is the speaker)

1. Christian Fritze
University of Applied Sciences for Police and Public Administration

Abstract

Public authorities are obliged to prepare annual budgets. The planning process regularly takes place in a two-way process between the administrative board and specialist departments and is predominantly based on a qualitative forecasting methodology and the updating of the previous year's plans. However, subsequent plan/actual comparisons regularly show that the actual values realized deviate significantly from the planned values in some cases. The uncertainty of developments in the next financial year appears to be too great for the predominantly applied qualitative methods for determining budget estimates to be sufficient to generate budgets that are stable in the sense of low deviations between planned and actual figures. This is taken as an opportunity to develop a quantitative planning methodology with the aid of Monte Carlo simulation in order to take better account of distribution and event risks. A multi-stage procedure is presented, which takes into account the special features of public administration operations and includes suggestions for practical implementation.

Keywords

Status: accepted

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