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Cash-flow
🟢 Our monthly cash-flow is predictable and consistent
Highly developed: No difficulty in predicting cash-flow.
Reflection:
- No immediate response required as we do have cash-flow mapping done for the next ten months.
- Others -
Action:
- No action necessary.
- Others -
Notes for Development:
- No difficulty in predicting cash-flow.
- Cash-flow is consistent and generally predictable on a month by month basis, for the next twelve months.
- Highly developed funding portfolio has been helping in controlling the cash flow as per expenditure plans.
🟡 We work around annual cash-flow and the same is linked solely with grants we have acquired
Developing: Have clear sight but may not always be accurate.
Reflection:
- No immediate response required as we do have cash-flow mapping done for the next few quarters months.
- Others -
Action:
- Park this task for next year and address immediate fund crutch issue.
- Others -
Notes for Development:
- Have clear sight but may not always be accurate.
- Cash-flow is linked to grant disbursal agreements and is generally known for the year.
- Consider developing other income lines for mitigating any risks around cash-flow, or unexpected change in grant relationships.
🟠 We have cash-flow sight for a very short period - maybe 2 quarters; beyond that we have no idea on future cash-flow
Poorly developed: Have cash-flow sight for a short period and is inadequate for financial prudence.
Reflection:
- Fundraising and organisation financing plan to be developed with the aid of FF level Financial guidance; simultaneous integration of this financing plan with fundraising plan is to be driven by CEO.
- Conduct a risk analysis for unpredictable cash-flow.
- Others
Action:
- Think of starting a few fundraising efforts specifically designed to influence predictability in cash-flow.
- Delegate cash-flow projection and analysis project.
- Others -
Notes for Development:
- Have cash-flow sight for a short period and is inadequate for financial prudence.
- Cash-flow situation is not in control mostly.
- Consider developing other income lines for mitigating any risks around cash-flow.
🔴 Lots of uncertainty over monthly cash-flow
High risk: Does not have strong sight to cash-flow situation mostly.
Reflection:
- Cash-flow situation for the next twelve months to be studied and a risk mapping is to be done by Finance, with clear recommendation on preferred cash-flow based on planned expenditure, recurring or core costs etc.
- Fundraising and organisation financing plan to be developed with the aid of FF (or other external experts) level
- Financial guidance; simultaneous integration of this financing plan with fundraising plan is to be driven by CEO.
- Others -
Action:
- Delegate cash-flow projection and analysis project.
- Develop a financing strategy and plan post cash-flow analysis.
- Consult external financial specialist.
- Others -
Notes for Development:
- Does not have strong sight to cash-flow situation mostly.
- Cash-flow situation is hardly in control ever and it lead to high financial stress to the organisation.
- Consider developing new income lines for mitigating any risks around cash-flow and its predictability.