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||Merge with "Expense Model"|
financial statements and graphs that contain the forecasted capital
expenses for a building.
The expenditure plan forms one half of the financial analysis in a reserve study (depreciation report).
The expenditure plan answers the question: "How much money will we need?", whereas the funding plan answers the question: "How much money will we have?"
A meaningful expenditure plan should meet the following criteria:
The alternative formulas to determine the capital load can be classified into two broad classes: a) top-down formulas and b) bottom-up formulas. They ask the question: "How much money will we need?". These models form part of the expenditure plan in the financial analysis.
Reinvestment formulas can be grouped into three general categories, as follows:
Fig. I. Care is trying to ensure that inflows match outflows, but this requires agreement on long-range stewardship, cooperation and teamwork.
Fig. I. Care attempting to remove an expenditure from the tactical plan.
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