\”The various factors that positively and negatively impact budget forecasting are building bias toward safety in forecasting techniques, monitoring actual values relative to forecast ones, and preparing for unfavorable forecasting errors by making arrangements for or actually taking corrective actions. Building a bias toward safety in forecasting techniques means slightly biasing or slanting forecasts toward whichever directions would leave an organizations with more money or resources on hand. Some policy makers who want to spend more money bias revenue forecasts up and expenditure forecasts down; other policy makers take the opposite stance. Monitoring means observing actual values to see how closely they conform to forecast values and being open to deciding that forecast erred. Monitoring helps in deciding whether to monitor the forecast values more closely and to see whether changes need to be made in financial decisions. Unexpected events might make corrective financial actions necessary. Corrective actions to implement after problems arise include implementing prepared plans, as well as rescinding expenditure authority, freezing expenditures, and reformulating expenditures plans.\”
