Cashflow Forecasting

(1) Cash flow information shall be provided to the Ministry of Finance, as follows -

(a) to Budget Division -

(i) an annual forecast of expenditure (by output/activity and SEG) and of revenue, for each month - ten working days before the start of each year; and

(ii) a monthly update of forecast expenditure (by output/activity and SEG) and of revenue for each remaining month - three working days before the start of each month.

(b) to the Unit within the Ministry of Finance responsible for cash flow forecasting -

(i) a rolling forecast of total daily expenditure and total daily revenue for the next four week period – two working days before the start of each week; and

(ii) updated forecasts of variations in the timing of cash flows of $100,000 or more – on the day the variation becomes known.

(2) The Accounting Head must ensure that the forecast information provided is reliable and does not lead to unnecessary borrowing costs to government.

(Finance Instructions 2005 s(42))

Cashflow Forecasting

• At least one month before the start of the financial year, all Section Heads that control a budgetary allocation or revenue collection must submit a forecast of expenditure or revenue for the entire year to the Accounting Head. This information must be further broken down into monthly forecasts.
• The Accounting Head is responsible for collating such information in the form specified in the Finance Instructions.
• The Accounting Head must liaise closely with other Section Heads to ensure that the forecast information provided is reliable.
• Regular analyses must be carried out between actual figures and forecasts. The analysis shall focus on:
• payment patterns and rate of collection for outstanding debts and revenue;
• availability of funds to meet outstanding commitments.
• Any revisions to forecast information shall be submitted to the Ministry of Finance at least 2 working days before the start of the following week.