a.
Cash Inflow and Outflow Management:
- Understanding the importance of managing cash inflow and outflow effectively.
- Identifying sources of cash inflow such as tuition fees, donations, grants, etc.
- Managing cash outflow for expenses like salaries, utilities, supplies, etc.
- Provide examples of common cash inflow and outflow scenarios specific to the
institution.
- Explain the impact of mismanaged cash flow on the institution's financial health.
- Offer tips for improving cash flow management practices.
B. Cash Flow Management Principles:
Explaining the principles of cash flow management, such as maintaining liquidity,
monitoring cash balances, and forecasting cash needs.
Cash Flow Principles: Explain the importance of cash flow forecasting and how it helps in
planning for future expenses and managing cash reserves
- Principles such as maintaining cash reserve, monitoring cash flow regularly, and
forecasting future cash needs.
- Strategies for optimizing cash flow, such as negotiating payment terms with vendors
and managing receivables efficiently.
- Importance of separating personal and institutional cash flows.
- Explain each principle in detail and its relevance to the institution's financial stability.
- Provide case studies or real-life examples of successful cash flow management
strategies.
- Encourage employees to apply these principles in their daily cash handling
responsibilities.
- Introduce key principles of cash flow management, including the importance of
liquidity, timing of cash flows, and cash flow forecasting.
- Emphasize the relationship between cash flow, profitability, and financial health of the
organization.
Monitoring and Internal Controls:
C. Maintaining Cash Flow Evidence of Cash Flow Transactions:
- Importance of documenting all cash transactions for transparency and accountability.
- Examples of source documents include receipts, invoices, bank statements, etc.
- Guidelines for organizing and storing cash flow evidence securely.
- Provide step-by-step instructions for documenting cash transactions accurately.
- Highlight the consequences of not maintaining proper cash flow evidence.
- Offer best practices for record-keeping and document retention.
- Emphasize the importance of accuracy and completeness in documenting cash
transactions.
- Provide examples of common source documents and how to properly fill them out.
- Explain the significance of maintaining a paper trail for all cash inflows and outflows.
- Offer guidance on how to reconcile cash flow evidence with financial records regularly.
- Explain the significance of maintaining evidence of cash flow transactions as a source
document for financial records.
- Emphasize the need for proper documentation to support the accuracy and reliability of
cash flow statements.
- Provide guidelines on organizing and storing evidence for easy retrieval and reference.
- Stress the importance of documenting all cash transactions accurately.
- Provide templates for cash receipts, disbursement vouchers, and reconciliation reports.
- Highlight the significance of retaining source documents for auditing purposes.
- Maintaining Evidence: Importance of maintaining evidence about cash flow as a source
document, including receipts, invoices, and bank statements.
- Stress the importance of documenting all cash flow transactions with supporting
evidence such as receipts, invoices, bank statements, and financial reports. Highlight the
significance of accurate record-keeping for audit purposes.
D. Impacts of Ineffective Cash Flow Management:
- Discuss the potential consequences of poor cash flow management, such as cash shortages, missed
opportunities, and financial instability.
- Highlight how ineffective cash flow management can lead to budget deficits and operational
challenges
- Provide examples of institutions that faced financial difficulties due to mismanaged cash flow.
- Discussing the consequences of ineffective cash flow management, such as cash shortages, late
payments, and financial instability.
- Highlight the consequences of ineffective cash flow management, such as cash shortages, missed
opportunities, increased borrowing costs, and potential insolvency.
- Discuss the risks associated with poor cash flow practices and the importance of proactive cash
- Highlight real-life examples of organizations that have faced financial difficulties due to poor cash flow
management practices.
F. The Consequences of Payments without Evidences & Including Unrecognized Cash Collection as
Revenue:
- Explain the risks associated with making payments without proper documentation, such
as fraud, errors, and compliance issues.
- Discuss the implications of recognizing unverified cash collections as revenue, including
misleading financial statements and potential audit findings.
- Provide guidelines for verifying the legitimacy of cash collections and ensuring all
payments are supported by valid evidence.
