Elements and Performance Criteria
- Review data
- Costs of, and returns from, assets and liabilities are analysed using standard accounting techniques to identify extent of debt and equity financing
- Data is used to identify costs of different forms of capital to the organisation
- Asset and liability estimates and valuation criteria are standardised and regularly adjusted in line with changes to environmental factors
- Determine options
- Long-term and short-term periods are established for the organisation by reference to strategic goals, cash flow requirements and operational objectives
- Long-term financing requirements are identified and costed in line with the organisation's expected revenue returns, cash flows and asset base
- Sources of financing are researched and evaluated to determine compatibility with the organisation's finance strategy
- Investment analysis and financial planning requirements are identified and analysed
- Implement strategies
- Financial plans are structured to meet strategic goals and provide returns within long-term and short-term operational objectives
- Short and long-term objectives for organisation's capital structure are developed in line with operational and strategic plans
- Internal control procedures are established in consultation with stakeholders to support implementation and to meet possible emergencies with portfolio management techniques applied
- Evaluate outcomes
- Interrelationships between long and short-term objectives are monitored to ensure consistency of returns between operational and investment plans
- Costs and returns are assessed to determine ongoing viability of strategy
- Tax efficiency of financial strategy is regularly reviewed to maintain optimal returns from assets