Financial expertise

Management of local authorities’ budget

Public authorities must have a long-term vision of (i) the balance of their budgets and (ii) the financial leeway they have to :

• Implement new projects ;
• Support the transfer of competences and intermunicipal arrangements ;
• Ease the budgetary dialogue.

In this exercise, they must consider (i) the significant uncertainties related to the future nature and level of their revenues; (ii) the need to regularly rethink the modes of implementation of services and associated cost structures, with a view to continuously improve efficiency.

Economic and financial opportunity and feasibility

Nowadays, many funding sources are available for public investments (including debt, equity), and the challenge for public entities rather lie in making informed decisions regarding :

• Project identification and planning to prioritize those creating the most social value and best return on investment ;
• Determination of the best business model for projects (Value-For-Money assessment, maximization of revenues and minimization of expenses) ;
• The selection of the procurement/implementation method most likely to allow the project's efficient implementation and to control risks (public contracting, PPP, concession, creation of an ad hoc company).

Securing financing

Funding sources for public investment projects have diversified (subsidies, bank loans, bonds, etc.) and the number of players has multiplied (commercial banks, development banks, debt and investment funds, participatory financing platforms, etc.). There are also an increasing number of project co-financing mechanisms (calls for projects, etc.).

Financial management of public contracts

Local authorities typically manage a large number of public services and facilities, the management of which may be entrusted to third parties (private, mixed economy or public companies, associations, etc.). A strict monitoring of these contracts is essential to guarantee the service's performance over time and a fair economic balance.

Public contracts signed by local authorities may require modifications involving financial consequences (for instance extension of the contract's scope, new subsidies, etc.).

Creation and control of public, private or mixed economy vehicles

To effectively implement increasingly diverse activities, public authorities can rely on a wide range of "satellites”. Often, they must actively participate in their creation by anticipating a solid business plan and governance. They must also regularly monitor their financial performance.