Discuss and set quarterly targets

Introduction

The NZTA reviews its cash-flow strategy and sets its plans and targets on a quarterly cycle to maintain the required balance between revenue and expenditure over time. In some situations, the NZTA may need to respond to variations from its plans based on shorter term monitoring of revenue and expenditure by the Finance team.

The setting of cash-flow targets, plan and strategy is assisted by the NZTA’s Finance team, which also provides annual opening balance and revenue & expenditure information, and reconciles the NLTF The fund established under section 10 of the LTMA account.

Reviewing the cash-flow strategy

The NZTA’s modelling of revenue and expenditure scenarios, with moderation and discussion amongst regional and national staff, including Finance, informs the setting and consequent reviewing of its cash-flow strategy. The strategy considers the desired positioning of the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied   revenue-expenditure balance over time and any ongoing requirement of the short-term debt facility to manage cash-flows.

The Group Manager Planning & Investment endorses the reviewed cash-flow strategy each quarter.

Setting the plan and targets

Based on the endorsed cash-flow strategy, an expenditure plan, including target investment levels, is formulated by activity class and communicated to NZTA staff, including state highway staff, as required.  In some cases the targets may be maximum expenditure levels and may encompass a grouping of activity classes.

Feed back on performance against forecasts.

The NZTA (planning & investment) aims to provide feedback to Approved Organisations, the NZTA (state highways) and other investment partners on their performance against their forecasts.

Advice from Finance

In addition to supporting the process for revenue and expenditure forecasts and cash-flow strategies, the NZTA’s Finance team provides information for modelling on the opening balance for each year, actual Revenue per month and annual expenditure recorded through the financial reporting system. It also reconciles the NLTF The fund established under section 10 of the LTMA account and provides advice on short term cash-flows.