Government has historically lagged industry in keeping up with the best practices and most efficient methods of forecasting. Some of the pitfalls encountered include:
- Slow preparation
- Optimism bias
- Lack of support for assumptions
- Poor data quality
- Lack of ownership and accountability
- Misalignment of incentives
- Lack of forecasting skills in the team
- Lack of understanding of risk and volatility in the forecast
VACo Contact: Vicky Steinruck, CPA