The city's financial planning process
1. Strategy and spending decision
The council decides on strategy and spending framework in September. The council’s decision includes the strategic results targets and budgeted amounts for each sector denominated in euros. Within the scope of the spending decision, the distribution of funds in the financial plan for the city’s units is prepared.
2. Financial plan proposal
The Mayor prepares the budget proposal, based on suggestions made by committees, available resources and valid decisions on the Espoo strategy and spending evaluation. The city’s management group refines the proposal into a budget and financial plan. The Mayor’s proposal is published in October-November.
3. Deciding on the budget
After the publication of the Mayor’s proposal, the City Administration processes it and requests a statement on it from the council’s negotiating committee. Once the statement has been received, the City Administration makes a proposal about it to the council. The council decides on Espoo strategy and the budget and financial plan in December.
4. Monitoring budget implementation
In connection with guidelines concerning the validity and observance of the budget, a decision is also made on monitoring the budget appropriations and revenue as well as the strategic targets. The aim of monitoring the implementation of the budget is to give decision-makers sufficient information about the achievement of set targets, the sufficiency of appropriations, the implementation of revenue and year-end forecast.
5. Financial statement
The City of Espoo’s financial statement includes the profit and loss account, balance sheet, notes to the accounts, a comparison of budget implementation, an annual report and a consolidated financial statement. The City Administration approves the financial statement by the end of March, and gives it to the auditor for auditing. The auditor prepares the auditor’s report by the end of May. The council processes the financial statement by the end of June. At least one week before processing by the council, the auditing committee gives the council an evaluation report about the achievement of the operating and financial targets. The auditing committee makes a proposal to the council about whether the financial statement can be approved and whether discharge from liability can be granted to those liable to render the accounts.