Within the Metropolitan Transportation Authority (MTA), the Financing Organization is responsible for the financing and cash management of MTA’s multi-billion dollar Capital Improvement Program. To meet these responsibilities Financing requires accurate information as to the status of existing capital programs; the schedule and cash flow requirements of new programs; the size, cost, and schedule of the current debt; the size, cost, schedule and budgeting impact of postulated borrowings; and the latest market information both for borrowing and investment. In addition, Financing requires basic tools/methodologies which can take raw data and transform them into information formatted and structured to facilitate the management decision making process.
STR was retained by the MTA to identify the information requirements of the Director of Financing and recommend a course of action by which the requirements could be met over time. As a result of a thorough interview process and analysis of the information requirements, STR delineated a four point plan to meet the needs of the Financing organization:
As a result of this study effort MTA embarked on two programs to develop a Bond Issuance/Budget Forecasting Model and to develop a post processor which improved the accuracy of the Capital Program’s cash flow projections.