Assisting behavioral healthcare organizations since 1991
Simulator Tutorial - Audit Version
When you open the simulator you will be greeted by a Home Screen the looks like this:
The simulator can be navigated by the menu located on the left hand side of the screen
Financial Statements
On this page you will be asked to enter your organizations name, the dates of the information from the three audits and to fill in the empty boxes on the financials shown to the right. The boxes will disappear once you have entered the data in.
An important note is that every organization will enter things on their own financials slightly differently so try to enter items that most closely align with what is listed on the simulator.
Cash Assumptions
​Next we have the cash assumptions page. Here you will be asked to input assumptions for the amounts of cash that management determines are necessary for each the six categories that may require cash resources, or “Buckets” as we refer to them.
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BUCKET 1: Basic Working Capital
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This is your operating cash, or cash needed for things like payroll, utilities, insurance, benefits, etc. (It is important to note that on the simulator this is represented in terms of DAYS of expenses)
BUCKET 2: Routine Capital Expenditures
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Cash for routine facilities and equipment upkeep
​***This is automatically calculated based on inputted financial information***
BUCKET 3: Operating Risks
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Cash to protect the organization from a myriad of expected risks (It is important to note that on the simulator this is also represented in terms of DAYS of expenses)
BUCKET 4: Program Service Growth
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Cash intended to provide resources for growth, opportunities, and long-range capital needs (facilities, equipment, technology, etc.) to new or previously existent business lines
BUCKET 5: Major Building and Equipment Replacement
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Cash for Property, Plant, and Equipment (PP&E) replacement
BUCKET 6: Unexpected Risks
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Cash needed to protect the organization from unexpected risks. “Rainy day” funds to that can be available for unforeseen events or to take advantage of opportunities that arise in the future
***This will also be calculated based on inputted financial data, and there is a drop down for different levels of risk aversion***
Simulator
This section shows the results of the projected information in terms of an organizations ability to fulfill cash needs. There are three different sections to this page. First is the Cash Bucket Allocation Chart:
This chart shows starting cash and what happens when you take out the allotted amounts for each bucket
Next is a chart entitled "Cash Needs Per Bucket" which simply shows how much cash is needed in each bucket to provide a sense of how much is needed relative to each other bucket
Finally the last section is a summary chart of all the financial information, displaying: Beginning Cash Available, Cash Needs for all buckets, current cash available or needed, and how many buckets are able to be filled with current available cash
Financial Ratio Charts
This section shows five key ratios that we believe to be most important in assessing the strength of an organization:
Days in Accounts Receivable: This metric measures the average number of days it would take for an organization to collect payments it is owed
Days in Accounts Payable: This metric measures the average number of days it would take an organization to pay off its vendors that it owes money to
Debt to Capitalization: This shows the amount of an organization's assets are financed through debt
Net Income Margin: This measures how much of total revenue is purely profit or net income
Days Cash on Hand: Perhaps the most important ratio in determining the strength of an organization, this measures the number of days an organization can continue to pay its operating expenses given their current cash available
Notes
Finally, the notes page offers a place for the user to fill in basic information about their organization and write down helpful information about the results. This allows the user to keep all information on one file for easy access.
Questions and next steps
If you have any questions about how to download or use the CHFF Cash Bucket Simulator, please do not hesitate reach out to us as we would be happy to assist you! Feel free to contact CHFF for assistance in accessing and utilizing the application to review your own financial standing.