PrintCIPFA’s Cash Flow Statement Toolkit for Practitioners in RSLs
Recent research conducted by CIPFA has found that the biggest bugbear for
accountants in the production of the annual
accounts, is the completion of the Cash Flow
Statement.
Given the increasing pressure to close the accounts and to report results earlier, the process of producing an accurate, FRS 1 (revised) and SORP compliant Cash Flow Statement can prove to be a lengthy process for practitioners working for Registered Social Landlords.
In response to this need, CIPFA has developed an automated Cash Flow Statement Toolkit (CFST) for public sector housing organisations. The Toolkit includes a detailed guidance manual and training to support implementation. The CFST consists of a number of excel worksheets that guide the practitioner through the step-by-step processes required to achieve a balanced FRS 1 (revised) and SORP compliant Cash Flow Statement and associated notes.
The worksheets are set up to calculate cash flow figures and export these to other cells or worksheets throughout the CFST as appropriate, thereby avoiding the need to recalculate or re-input figures. The Toolkit also provides a complete worked example for reference and guidance. In recognition of the risks associated with the use of spreadsheets, the CFST is populated with control checks and balances to ensure accuracy. Helpful cell comments and tips are included throughout the CFST to facilitate the prompt preparation of the Cash Flow Statement
The guidance manual provides a comprehensive step-by-step guide for completion of the worksheets. It also includes a number of helpful tips to increase practitioners’ awareness of non-cash items and other entries, that need to be identified and adjusted for, to provide correct input data and an accurate and balanced Cash Flow Statement.
The Cash Flow Statement Toolkit for housing organisations has been successfully piloted across the United Kingdom. All pilot organisations found the CFST to be an invaluable, user-friendly aid for the production of an accurate Cash Flow Statement and easily auditable working papers. They confirmed that the CFST dramatically reduced the amount of time, resources and effort required to produce the Cash Flow Statement.
The cost of this Toolkit is £600 plus VAT and includes:
- A CD ROM containing all excel worksheets with appropriate formulae, prompts and macros
- A worked example
- Detailed guidance manual (on CD ROM and hard copy)
| Click here to purchase the Toolkit in the online CIPFA Shop |
We also provide a one-day workshop which will be held at various locations across the UK at a cost of £200 plus VAT per delegate. This workshop will provide practical, detailed guidance on the preparation for, and completion of, the Cash Flow Statement.
IMPORTANT FEATURES OF THE TOOLKIT
- Significantly reduces the time taken to prepare the Cash Flow Statement during times of prime resource competition in the finance section
- Ensures that figures are entered only once into CFST worksheets to keep errors and omissions to a minimum
- Is simple to understand and apply, even in the most complex circumstances
- Identifies areas in the financial statements’ working papers that may need further analysis
- Promotes a structured approach to the preparation of the Cash Flow Statement
- Provides a comprehensive set of easily auditable working papers
- Can be imported quickly and accurately into the core financial statements
- Streamlines what is a very time consuming, manual and often protracted process
VIEWS OF PRACTITIONERS IN RSLs AND LOCAL AUTHORITIES
‘The cash flow model was ideal for our needs. It is easy to use
and has helped us streamline our year end cash flow process - it
has saved time and reduced the possibility of error.’
Karen Slack
Accountant, Raven Housing Trust Limited
'This is a very useful tool, well put together, easy to use and
based on robust and realistic assumptions. The Toolkit provides a
method to do in a couple of hours what can otherwise take days
and I would warmly recommend it.'
Peter Bateman
Principal Accountant, Birmingham City Council
'We found the toolkit to be extremely useful, particularly in
helping us to take a more structured approach. We completely
relied on the toolkit, to the extent of not even attempting to follow
the approach that was adopted by the person who completed the
cash flow the previous year.'
Jonathan Hepworth
Group Accountant, Hartlepool Borough Council
'Overall, we found the package to be simple to use and extremely
valuable in simplifying the process of producing our cash flow for
2007/2008. The overall layout is clearly arranged into logical
sections and the links between sections are easy to follow. In
particular, we found that the model was technically sound, to the
extent that it allowed us to identify an error in our treatment of
the premium payable on the early redemption of debt which had
been made in accordance with guidance provided by our external
advisors.'
Hugh Emsden
Corporate Finance, Cornwall County Council