1. Financial management

2. Control Control and reporting Development of “standards”
Loose or tight
Locus of control
Development of “standards”
Information sources
Variability
Monitoring of actual against standards
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 2

3. Control feedback Control and reporting Development of “standards”
Loose or tight
Locus of control
Development of “standards”
Information sources
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 3

4. Cash flow
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 4

5. Cash flow predictions ¼ 1/3 model
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 5

6. Cash flow projections DHSS curve
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 6

7. Min and Max cash requirements
Based on “gradient” of expediture.
If all occur at same time can trigger bank action
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 7

8. Impact of management Control and reporting Development of “standards”
Loose or tight
Locus of control
Development of “standards”
Information sources
Variability
Monitoring of actual against standards
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 8

9. Impact of management 9 Control and reporting Loose or tight
Locus of control
Development of “standards”
Information sources
Variability
Monitoring of actual against standards
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 9

10. Reality Different approaches to resource payments
Labour- weekly
Materials- availability of credit
Subcontractor-dependent upon terms
Generally a pragmatic approach
Cash cutoff date for all contracts determined
Payment “runs” to minimise need for cash requirements
Accounting information systems
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 10

11. Graphically
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd.

12. Data from site More accurate than models
Use of programme and documentation to develop schedule
Use of contract to anticipate monies in
Subcontract schedule to look at major payments out
Use of pro forma
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd.

13. Aggregate positions
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14. Aggregate cash budget
© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 14