Idaho: Cash-Flow Model

To help the state’s arts and cultural organizations remain financially solvent, the Idaho Commission on the Arts (ICA) has begun to educate constituents about financial forecasting. In their latest strategic planning process, the ICA identified as a goal for the agency to provide “practical arts business management and arts-learning information to Idahoans.” To achieve this goal, ICA has put a major emphasis on cash-flow analysis to help organizations understand their current positions and forecast beyond the immediate future. The initial training for applicants was possible because of the American Reinvestment and Recovery Act (ARRA). ICA was able to start its work a year ahead of schedule because it required all ARRA applicants to turn in cash-flow reports as a part of the application packet. To help applicants with the process, ICA invited all eligible organizations to Boise to spend the day training with a special financial consultant on the ARRA application and cash-flow forecasting. In step with its long-range plan, within five years ICA will require all applicants in its Public Programs in the Arts funding category to provide a cash-flow report using their actual financial figures from the prior completed year. To learn more about ICA’s cash-flow model for its constituents, contact ICA Executive Director Michael Faison.