CASHFLOW FORECASTING Lincoln Allen, Cashflow Controller 11 June 2008
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CASHFLOW FORECASTINGLincoln Allen, Cashflow Controller11 June 2008
Overview Cash balances & long term debt What is cashflow forecasting? Reporting and models What gives me a headache How you can help.
Investing cash How much? 51m For how long? instant to 6 months In what? SIBA Term deposits Via cash managers Money market funds.
Long term debt Debt refinancing (165m) To fund infrastructure programme Liquidity days 50 days is trigger line 40 days is rock bottom.
What is cashflow forecasting?
A cashflow forecast is, err, self-defining, a cashflow forecast! Includes all cashflows: Operating activities Finance activities Capital program For 5 years by month/quarter AND For next 90 days by day
Advantages of cashflow forecasts
Cash is quing Easy to understand Shows impact of change Identifies financial issues Model/scenarios Scope corrective action A financial tool in the FDs kitbag.
Liquidity days Rigorously control debt Dont run out of cash.
Cashflow reporting Monthly reporting to FD By month/quarter to 2013 By day for next 90 days Liquidity days How good are the forecasts?.
Models Long term (5 years) Short term (3 months) Integrated reporting Health check.
Garbage in = garbage out Annual data v monthly forecasts Timeliness of information Integrating into existing processes Profile Analysis of actuals Limited non-involvement.
What you can do Cash culture awareness Keep me in the loop Tell me about anything >25,000Ring meEmail meUse form on the netStop me in the corridor Tell me about changes to plans Tell others.
EXPERIENCE THE RAW GUT-WRENCHING DRAMA OF HUMAN CONFLICT THROUGH CASHFLOW FORECASTING PREPARING TO DO BATTLE THE THRILL OF VICTORYTHE AGONY OF DEFEAT
Contact detailsLincoln AllenCashflow ControllerFinance Services Tel: 3827Email: L.Allen@exeter.ac.uk
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