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The contents of this report reflect the views of the author(s), who is responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the Virginia Department of Transportation, the Commonwealth Transportation Board, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. Any inclusion of manufacturer names, trade names, or trademarks is for identification purposes only and is not to be considered an endorsement.


A Review and Update of the Virginia Department of Transportation's Cash Flow Forecasting Model: Interim Report
Kyte, Cheryl A.
James S. Gillespie
James S. Gillespie
Year: 1995
VTRC No.: 96-IR1
Abstract: The Virginia Department of Transportation uses a cash flow forecasting model to predict operations expenditures by month. Components of this general forecasting model estimate line items in the VDOT budget. The cash flow model was developed in the early 1980's and has not been updated since 1988. This project involved reviewing and updating several components of the cash flow model, namely, the monthly factors submodel used to predict monthly payments to construction contracts, and the maintenance expenditures submodel, used to predict maintenance payments. The project produced an update of the monthly factors submodel by, for the most part, following the same basic methodology used in the development of the general cash flow model. A chart of the new monthly factors parameters is in the appendix. The authors employed a new approach to formulate a forecasting model to estimate maintenance expenditures. The resulting forecasting model is on page 11. The authors will work in conjunction with Financial Planning and Debt Management staff in the coming months to evaluate the forecasting methods suggested by the update.