1. 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

2. 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.

3. 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

4. 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!

5. THANK YOU! 