CFO Checklist

COVID-19 Coronavirus

Written by Glenn Elliott

Last published at: March 26th, 2020

CFO Checklist

All CFO's are likely already through at least part of this list now.

Cash

Run a number of scenarios (forced closure for a period of time/reduced revenues/delayed cash receipts), run 13-week short term cash flow & complete line by line review on all cash flows for each scenario (by expense category)

Cash

Identify the payments that are not essential - prioritise business critical payments and cancel DD payments (pay on invoice)

Cash

Have you put non-essential capital projects on hold?

Cash

Revisit who has authority to sign off expenditure or more importantly incur costs on behalf of the company - approval should now be FD & CEO only?

Cash

Review expense policy - only business critical expenses should be signed off

Cash

All RemCo matters need to be considered (Pay rise/bonus etc.)

Cash

Consider opportunities for Government support in light of daily “Boris updates” – e.g. business rates holidays, British Business Bank liquidity support loans (up to £5m). An evolving picture. See our Guidance and information pack here.

Cash

Consider potential impacts on credit insurance and associated working capital impact

Business Continuity Plan

Simulate BCP (e.g. Can we split teams into A & B/Can your network accommodate home working (if applicable)/can you zone the workplace)?

Advisors

Have you got legal and corporate finance support lined up?

Auditors

How will you get audit sign off/covenant compliance certificates?

Beware presentation of debt as “current liability” if a waiver is not obtained before a year-end covenant breach (retrospective doesn’t work)

Bank

Review all available bank facilities and consider full draw-down after taking appropriate advice (legal/banking docs etc.)

Board governance

Set up a regular board call [at least weekly] to discuss liquidity/workforce/short term cash flow etc.

Board governance

All material strategies/decisions should go through the normal Board approval process

Communication - Bank

Present contingency plans & understand support available post-Board sign off

Communication - Customers

Have you engaged with your customers to keep them updated? What support might your customers be able to give you? (Example – payment terms)

Communication - Suppliers

Have you asked for support from suppliers?

Communication - Workforce

Have you nominated someone internally to own colleague communications?

Governance

Review insurance – consider/implement business interruption or credit insurance - understand cover and route/process to claim as well as scale of cover

Governance

Are we acting responsibly, are there any issues where we could be accused of endangering customers, colleagues, suppliers etc.?

Governance

Do you have a central committee who is responsible for all Covid-19 related issues, risk mitigation and management?

Governance

Do you have an emergency response protocol to an infected employee confirmation who was/is present at the workplace

Legal documentation

Review banking docs to understand legal position. Be aware of bear trap requirements e.g. RCF clean-down

Sector

Are you engaging with your peers and regulatory bodies to understand how your industry is responding?

Supply Chain

Have you reviewed sole source supplier concentration for dual source optionality/risk mitigation?

Workforce

Freeze on non-essential recruitment?

Workforce

Can you identify the vulnerable groups in your workforce? (over 60/underlying health conditions)

Workforce

Can you identify temporary wage mitigation options?

Workforce

Have you stopped overtime?

Workforce

Have you removed agency staff?