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Components of a Funding Model
The key components of a funding model are:
of Funding Models
Methods of Calculation
The two primary methods of calculating the contributions to a funding model are as follows:
Analysis of the Model
Analysis of the patterns in the funding models utilitizes the following principles:
Variables & Assumptions
The key variables in a funding model are:
Reinvestment models are used to determine the size of the expenditures.
Fig. Workflow to illustrate how funding models form part of a sensitivity analysis when helping owners review alternative funding level.
Part I: Alternative Cash Flow Graphs
Fig.Financial graphs to illustrate: a) annual closing balance, b) annual contributions and c) special assessments
Fig. "I. Care" is trying to raise funding levels but this may be quicker than the owners can sustain.
Fig. Special assessments shown on a funding cash flow graph.
Fig. Closing balance shown on a funding cash flow graph.
Part II: Cash flow Table
Fig. Cash flow table portion of a funding model.
Fig. I. Care is trying to ensure that inflows match outflows, but this requires agreement on long-range stewardship, cooperation and teamwork.
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