Answer to Question #10852 in Economics of Enterprise for Harry G Williams
describing the individual, corporate, and government financial management impacts of the upcoming 2012 presidential elections
Under the Local Government Act 2009, local governments are required to adopt and implement a corporate plan. The programs under their control will have either a functional or a service orientation, and councils must have a corporate structure appropriate to the conduct of their affairs.
Councils also are required to adopt an operational plan and a budget which reflects, and is consistent with, the objectives of the corporate plan. The corporate plan also reflects the direction of the community plan (see module 6).
Corporate planning helps a council to understand its present situation, to examine how current and future trends may affect it and to decide how best to manage anticipated challenges. Corporate planning identifies where a council wants to be in the future and provides information about how it will get there based on available resources.
Corporate plans enable councils to further inform and negotiate with stakeholders and the community to ensure the community consultation process is open and transparent.
Planning is a vital component of sustainability. The corporate plan is embedded within the financial management, planning and accountability documents of council.