Cash forecasting and financial mgt controls

1. Cash forecasting and financial mgt controls • Pauline K Mpofu • Mompati D Nwako • Division of Budget Administration • Ministry of Finance & Development Planning, Botswana

2. Cash forecasting and financial mgt controls • Cash forecasts • The receipts and expenditures as outlined in the Governments Budget • Any shortfall has to financed in some way – cash (loans or drawing down reserves) • Botswana does not in the strict sense have cash forecasting

3. Needs for cash forecasting • Smoothening of seasonality of inflows against outflows • Ensure cash is available to meet Government obligations

4. Forecasting considerations • Factors peculiar to the revenue item • The base of the previous year • Capacity for growth

5. Management Controls • Cash flow reporting Monthly, weekly, daily • Cash inflow control Improved collection plans • Cash outflow control • Control of Cash balances

6. Other mgt controls considerations • Transparency • In account lines e.g subsidies • Foreign payments • Personal Emoluments/allowances