Case studies - forecasting, reporting and measurement

Cash in mind: a charity plans for a healthy cashflow

A charity believed it had cashflow challenges and had not previously linked income and expense planning with cashflow projections. A forecasting model was developed with operational department managers giving them responsibility for their budgets and this linked to cashflow projections. Time was spent with managers discussing alternative scenarios and how their activities impacted on the financial results. An investment policy was then established to maximise the return on funds held.