Small Group Discussion Session PEMPAL TCOP Cash Management Thematic Group Meeting Small Group Discussion Session November 8th, 2018 Countries: Albania, Croatia, Georgia, Hungary, Kosovo, Macedonia, Montenegro, Turkey Vienna (Austria), November 7th-9th, 2018

Question 1: How do you assess the level of cash flow forecasting in PEMPAL countries?  Shifting and advancing from cash planning to cash forecasting (budget execution still is at a core of forecasting process for some countries!) Need for alternative solutions to MS Excel as forecasting becomes more advanced Insufficient use of KPIs as a mechanism to give incentives for improvement of forecast Insufficient level of analysis of the forecasting performance - lessons learned to improve the quality of future forecasts.

Informality of the process of data collection Question 2: What are the main problems and challenges in preparing cash flow forecasts in PEMPAL member countries? How do you solve them?  Accuracy of forecasting: Not structured, or lack of systematic data collection, especially from Revenue Authorities Informality of the process of data collection Lack of IT Infrastructure & Tools Tax forecast more difficult than spending Lack of sufficient personnel or dedicated staff for Cash forecasting Major uncertainties, e.g.: Contingent liabilities, court decisions, EU funds

Solutions: Top level support essential: recognizing the importance of the function Dedicated and trained staff with clear responsibility for forecasting (mindset change) IT solutions as a tool of data collection and better forecasting Active and effective cooperation between parties involved in the process of forecasting Carrots & Sticks for RA and LM! Early notification of large transactions Training for LM and RA!

THANK YOU! 