Within the Metropolitan Transportation Authority (MTA), the Financing Organization is responsible for the financing and cash management of the 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 will improve the accuracy of the Capital Program’s cash flow projections.