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CASHFLOW FORECASTING

CASHFLOW FORECASTING. Lincoln Allen, Cashflow Controller 11 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

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CASHFLOW FORECASTING

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  1. CASHFLOW FORECASTING Lincoln Allen, Cashflow Controller 11 June 2008

  2. Overview Cash balances & long term debt What is cashflow forecasting? Reporting and models What gives me a headache How you can help.

  3. Investing cash • How much? • £51m • For how long? • instant to 6 months • In what? • SIBA • Term deposits • Via cash managers • Money market funds.

  4. Long term debt • Debt refinancing (£165m) • To fund infrastructure programme • Liquidity days • 50 days is trigger line • 40 days is rock bottom.

  5. 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

  6. 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 FD’s kitbag.

  7. Financial disciplines Liquidity days Rigorously control debt Don’t run out of cash.

  8. Cashflow reporting • Monthly reporting to FD • By month/quarter to 2013 • By day for next 90 days • Liquidity days • How good are the forecasts?.

  9. Models • Long term (5 years) • Short term (3 months) • Integrated reporting • Health check.

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

  11. What you can do • Cash culture awareness • Keep me in the loop • Tell me about anything >£25,000 • Ring me • Email me • Use form on the net • Stop me in the corridor • Tell me about changes to plans • Tell others.

  12. EXPERIENCE THE RAW GUT-WRENCHING DRAMA OF HUMAN CONFLICT THROUGH CASHFLOW FORECASTING PREPARING TO DO BATTLE THE THRILL OF VICTORY THE AGONY OF DEFEAT

  13. Contact details Lincoln Allen Cashflow Controller Finance Services Tel: 3827 Email: L.Allen@exeter.ac.uk

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