CIPFA’s Cash Flow Statement Toolkit (CFST) is now in its second year and has been successfully integrated into the end of year process of the numerous Local Authorities that have purchased this product. The CFST has proved to be an invaluable, user-friendly aid for the production of an accurate Cash
Flow Statement and easily auditable working papers. Users of the Toolkit have confirmed that the CFST has dramatically reduced the amount of time, resources and effort required to produce the Cash Flow Statement.

The Toolkit was developed in response to a need identified by Local Authority practitioners to produce an accurate, FRS 1 (revised) and SORP compliant Cash Flow Statement. This was proving to be a lengthy process for practitioners, particularly given the need for earlier closing.

The automated CFST comes complete with a detailed guidance manual and training to support implementation for the 2008/09 financial statements. The Toolkit 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 re-calculate 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.

Those Authorities investing in the Toolkit will be entitled to a delegate place at a one-day workshop that will provide practical detailed guidance on the preparation for, and completion of, the Cash Flow Statement.

The cost of this Toolkit is £1,500 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)
• Attendance of one delegate at a one-day workshop which will be held at various locations across the UK

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