The Budgetary Cycle - Revenue Forecast
A Revenue Forecast is a realistic summary of anticipated income from all sources including federal government departments, provincial ministries, community-based royalties, trusts and foundations, and private agreements.
For ongoing program funding, the Financial Controller should start with the funding provided in the year preceding the Revenue Forecast and adjust those levels in accordance with the escalation factors included in the funding agreements. If escalation factors are not known, then the previous fiscal year funding levels should be used.
For project funding, the Revenue Forecast should only include committed project funding. Throughout the fiscal year, if additional projects are approved, the Revenue Forecast and the Appropriations can be adjusted accordingly. For income funding, (rentals, royalties, investments, etc.) the Revenue Forecast should include any known increases or decreases to the previous year's income. Band-owned businesses present a unique problem for fiscal planning. The insistence of the Department of Indian Affairs on a consolidated audit (that is, an audit which requires all operations of the Band to be put together in a summary audit and one bottom line) means that Band-owned businesses often represent a wild-card in determining the First Nation's year-end position (see Audit). It is critical therefore that, in addition to Fiscal Planning Calendar activities as they relate to programs, that regular reports be required from Band-owned businesses. For purposes of the Revenue Forecast, a very conservative approach is best-in other words, discount revenue expectations from Band-owned businesses.