Financial Foundations Framework

Financial Foundations Framework

Created by GFOA, the Financial Foundations Framework helps facilitate collaboration and support for public policies and programs. Organized into five pillars, the Framework shows you how to improve your financial position now and create a strong foundation for a thriving community over the long-term. Each pillar includes different leadership strategies and/or institutional design principles. Understanding that local governments cannot order people to collaborate, leadership strategies help inspire pride and public support for a strong financial foundation. Institutional design principles, meanwhile, are the “rules of the road.” They provide the context for leadership strategies and ensure continuity of good financial practices through changes in leadership.

For many GFOA is a source of best practices, model policies, and other recommendations on what to do to improve financial management in your government. The Financial Foundations Framework provides guidance on how to implement those changes and create a financially sustainable organization.

Pillar 1: Establish a Long-Term Vision

Give people a reason to collaborate. All finance officers need to promote collaboration. The only thing better than an inspiring vision is an inspiring shared vision. In addition, work to balance long-term goals with short-term needs.

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Pillar 2: Build Trust and Open Communication

Create conditions for cooperation. Communication is key. Create and promote two-way channels to connect peers within the organization, elected officials, and members of the public. Communication creates transparency, which leads to trust.

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Pillar 3: Use Collective Decision Making

Develop forums for participation. Finance officers need to engage key stakeholders from throughout the organization in decision making. We are stronger together - think how you can pool resources and collaborate to solve problems within your organization or in the community.

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Pillar 4: Create Clear Rules

Reinforce constructive behavior. Create and share expectations about how decisions get made. Financial sustainability relies on everyone following the rules. People need to be held accountable and play fair.

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PIllar 5: Treat Everyone Fairly

Promote and protect mutual trust and respect. It's impossible to please everyone all the time and disputes will happen. People must get what they pay for and pay for what they get.

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Financial Foundations for Thriving Communities

Financial Foundations for Thriving Communities introduces GFOA's new Financial Foundations Framework. Organized into five pillars, the Framework shows you how to improve your financial position now and create a strong foundation for a thriving community over the long-term. Each pillar includes different leadership strategies and/or institutional design principles.

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Financial Policy Challenge

Recent GFOA surveys show that in some critical areas of public finance, less than 50% of governments have adopted policies. To encourage more governments to adopt financial policies that guide decision making, and to develop a resource that allows all governments to improve the quality of their own financial policies, GFOA is hosting a Financial Policy Challenge.

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Financial Foundations Framework Handout

Download a two page quick reference guide to the Financial Foundations Framework. All five pillars, including their leadership strategies and institutional design principles are listed.

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