Monitoring Economic Development Performance

Type: 
Best Practice
Approved by GFOA's Executive Board: 
January 2010
Recommendation: 

The Government Finance Officers Association (GFOA) makes the following
recommendations to finance officers about ways to monitor economic development projects and programperformance. For the purposes of consistency, transparency, and accountability, a clearly defined monitoring process should be a part of every economic development policy. Objectives of the monitoring process should include periodic evaluations of individual project performance by incentive and an evaluation of the cumulative costs, benefits, and degree of goal attainment of the jurisdiction’s overall program. The finance officer should be responsible for reporting the fiscal impact on the jurisdiction of each incentive used and the cumulative impact of all incentives on the overall financial condition.