Finance

Responsible Agency:	Office of the Comptroller General
Issued:	Nov 1984
Last Updated:	Aug 2009

Cash flow information and reporting may be used as budget management tool to forecast the most favourable use of funds with available resources. Cash flow is most often used by organizations to provide a short term measure of liquidity to meet expenditure requirements.

“cash flow”	means net change in cash position during a period.1
“fiscal framework”	means the determination of financial resources available for expenditures during the fiscal year.
“forecasting”	means an estimate of future events or conditions or future-oriented financial information based on assumptions that reflect management's judgement as to the most probable set of economic conditions.2
“surplus funds”	means the net positive daily bank balance in the accounts of the Government.

 

¹ CICA, s.v. “cash flow.”

² CICA, s.v. “forecasting.”

Cash flow information shall be provided to predict the amount of cash required over a given period of time versus the amount of cash available in that time period in order to achieve the optimal use of Government surplus funds.

4.1	The Banking and Investment Section of the Finance Department shall be responsible for: Establishing the likely revenue yield on surplus cash. Determining the timing of receipts and commitments together with cash requirements in order to meet expenditure patterns. Determining and monitoring the revenue portion of the Fiscal Framework.
4.2	Program Managers shall be required to provide cash flow information on their operations in order to establish a cash flow forecast (revenues and expenditures).
4.3	The Deputy Minister of the Department shall advise the Comptroller General of significant revenue.
4.4	Directors of Finance and Administration are responsible to ensure controls are in place to address 4.2 above.

• FAA 1(1); Part X.

Failure to comply with policies and directives of the Financial Administration Manual may result in actions under Part X of the Financial Administration Act. The Government of the Northwest Territories may seek legal remedy in the Territorial Courts.