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.

  • Financial disciplines

    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.

  • Headaches

    Garbage in = garbage out Annual data v monthly forecasts Timeliness of information Integrating into existing processes Profile Analysis of actuals Limited non-involvement.

    Challenges

  • 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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