Public finance and performance improvement

Financial diagnosis and outlook

To perform our financial analysis on the accounts of public bodies, we offer a method developed from our past experience with the major audit network firms in their Public Sector departments. The method is based on a dynamic, multi-factor analysis, in that it uses and combines the various analytical methods developed by these major firms, the fundamentals of local public accounting through the various accounting classifications (M14, M4, M52, M71, M21…) and the principles of budget management applicable in the Public Sector. It thus provides comprehensive data processing (Management Accounts, Administrative Accounts, and primary budgets), taking several approaches :

  • Intermediate management balances, allowing an analysis of the operating results and the public entity’s degree of solvency (primary budget and ancillary budgets),
  • The public entity’s financial position statement and balance sheet showing the changes for the various entries between two financial years, and detailing the level of liquidity at the close of accounts,
  • The cash flow table, allowing a dynamic examination of changes in the public entity’s cash situation and their primary causes.

With our focus on providing support for decision-making, we have assembled materials for the presentation of results and analyses, which we will present as needed. This approach supporting public initiatives through assessments and forecasts for a particular public decision, constitutes the new approach to governance for public initiatives.

We believe that it allows for a progressive and interactive development of awareness about the key issues, in order to provide impartial support for public decisions. It is central to our approach, and adds true value to the process that we offer to you.

Management oversight, cost awareness and implementation of cost accounting

More than ever, public organisations (hospitals, local governments, public institutions for inter-municipal cooperation [EPCI], regions, and departments) and affiliated bodies are seeing the need to identify and manage the growth of their cost structures to preserve their financial leeway. Their goals can be summarised as follows: to manage public spending in order to ensure the best possible public service.

So, based on a proven process built at the major firms where C5P’s players have practiced, our approach reflects the desire of client public entities to be able to identify, track, consolidate and put into perspective the normative, technical and economic parameters of the various economic activities they engage in. It therefore draws upon knowledge under all these heads, but public legal entities expect a method that is able to gather them together and handle them jointly. That’s why we regularly make use of a cost analysis model based on the ABC / ABM method (see “La méthode ABC/ABM,” NEF 1998), which allows “value to be added to expenses, within a multidimensional approach combining an understanding of the use of resources and distribution of costs.”

Economic and financial feasibility studies

Depending on the progress and maturity of the projects designed by local communities and their representatives, we have been brought in to collaborate with public entities and partner law firms in studying the legal and financial conditions conducive to successful completion of the projects under consideration. In these actions, we have performed either :

  • Positioning studies in collaboration with firms specialising in the subject at hand (hydrotherapy, business tourism…), which provide the market study and comparative studies on comparable facilities
  • More or less detailed financial studies, such as business plans, profitability analyses, or simulations allowing verification of the operation’s balanced conditions
  • Per diem price calculations for social welfare institutions and healthcare centres

Transfers of powers / Inter-municipal cooperation

After the Chevènement Laws of 1999, and those passed in 2004 and known as Act II of the Decentralisation Process between Regions/Departments and the State, and further laws likely to be passed, issues regarding the exercise of authority at the most appropriate administrative division level in light of the mergers, consolidations and transfers of powers, we provide effective support – drawing on our experience working with the major audit networks in the area of areas of competence, inter-municipal structures, and communities – in the analysis, organisation and transfer of jurisdiction among municipalities / EPCIs, between Universities, between State/Regions or between State/Department. The following is a non-exhaustive list of a few of the projects we have carried out :

  • Support for the establishment of structures for inter-municipal cooperation.
  • Support for the transformation of existing structures into more integrated structures.
  • Support for transfers of new powers.

Financial and organisational audits and procedural auditing

In light of the challenges of efficiency and effectiveness in the governance, organisation and management of local administrative activity, local authorities have to enter into contact with service providers capable of supporting them in facing changes and issues as diverse as :

  • The strategy and organisation of a public service following the development of a service plan.
  • Identifying and improving internal procedures after audits.
  • Financial analysis of an elderly persons’ nursing home or decentralised service (CCAS).
  • Organisational and management auditing of subsidised structures.

C5P works in this area of competence with support from partners specialising in the fields of human resources and governance, such as APORH or RH For You.