EPA Releases DWSRF Cash Flow Management Handbook
On December 23rd, EPA released its Drinking Water State Revolving Fund (DWSRF) Cash Flow Management (CFM) Handbook. This handbook is a narrative guide for State DWSRF programs providing simple, step-by-step instructions on how to build a cash flow model in Excel and use it to help determine the States’ maximum prudent lending capacity for the year. The handbook includes a fully developed example cash flow model which a state could adapt for its own use. Cash flow modeling captures all the funds flowing into a state DWSRF account and all the funds flowing out. This allows a state to plan for how to meet disbursement obligations, without needing to keep the full loan amount in the ‘bank’. When implemented appropriately, this approach could greatly increase state lending capacity for drinking water infrastructure.
