Department of Transporation (DOT) Case Study

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DOT Cash Flow Forecasting

DOT cash flow forecasting with Vanguard Predictive Planning™

A Midwestern Department of Transportation (DOT) wanted to manage their cash flow forecasting, but their spreadsheet-based system was inflexible and slow. The DOT had difficulty knowing how to apportion variable funding streams across over 2000 construction projects in different phases of completion. Looming budget cuts made understanding cash flow critical.

The DOT’s spreadsheet based financial forecasting system had multiple weaknesses:

  • Their forecasting took weeks. The DOT’s finance group made manual inputs on thousands of data points and assumption from multiple sources into complex spreadsheets that we too slow to open and difficult to edit
  • The DOT could not easily adjust its forecasts for common issues like fuel tax changes, budget cuts, seasonality, or project delays. Responses to legislative inquires took approximately four weeks.
  • Only one person could understand the cash flow forecasting process and its impact on the DOT’s cash flow. The DOT was unable to train another employee due to the incredible complexity of the system.

Vanguard Software’s instant forecasting reports enabled the Department of Transportation (DOT) to tightly control their budget and respond to historic cuts with revenue generating investment.

With Vanguard Predictive Planning™, they saw:

  • Instant 10 year forecasts and analysis of cash flow, meaning the DOT could move funds around without impeding cash flow.
  • Their cash flow adjusted for state-specific issues like seasonality, meaning the DOT understood when to start, delay, or stop projects.
  • The DOT could respond swiftly to legislative inquires about the impact of further cuts with concrete details about project delays.

To read more about Vanguard Software’s Cash Flow Forecasting abilities, download our white paper on Cash Flow Forecasting. Accurate forecasting is critical for balancing capital investment plans with liquidity needs. Learn how Vanguard Predictive Planning™ financial science with software automation so you can focus on strategy and growth.