Management

Financial management

Control • Control and reporting

– Loose or tight

– Locus of control

• Development of “standards”

– Information sources

– Variability

• Monitoring of actual against standards

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd.2

Control feedback

• Control and reporting– Loose or tight


• Development of “standards”– Information sources

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 3

Cash flow


Cash flow predictions ¼ 1/3 model


Cash flow projectionsDHSS curve


Min and Max cash requirements

– Based on “gradient” of expediture.

– If all occur at same time can trigger bank action


Impact of management

• Control and reporting– Loose or tight


• Development of “standards”– Information sources

– Variability

• Monitoring of actual against standards© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 8

Impact of management

• Control and reporting

– Loose or tight


• Development of “standards”

– Information sources

– Variability

• Monitoring of actual against standards

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd . 9

Reality• Different approaches to resource payments– Labour- weekly–Materials- availability of credit– Subcontractor-dependent upon terms

• Generally a pragmatic approach– Cash cutoff date for all contracts determined– Payment “runs” to minimise need for cash

requirements– Accounting information systems


Data from site

• More accurate than models• Use of programme and documentation to develop schedule• Use of contract to anticipate monies in• Subcontract schedule to look at major payments out• Use of pro forma

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd.

Aggregate positions


Aggregate cash budget


Management

Documents

Transcript of Management