Module 49 — CFO Toolkit: Templates & Checklists

A practical library of templates and checklists that CFOs use every month — board pack structure, 13-week cash flow model, covenant monitoring tracker, audit preparation checklist, due diligence request list, and IFRS disclosure checklist.

Learning Objectives

Use a structured monthly board pack template to report financial performance
Maintain a 13-week cash flow model with weekly update discipline
Monitor loan covenants using a live covenant compliance tracker
Prepare for an external audit using a structured audit preparation checklist
Conduct financial due diligence using a standardized request list

1. Monthly Board Pack Template

Structure and Page Allocation

Section	Content	Target Pages
1. Executive Summary	Top 3 financial messages; KPI scorecard vs budget/prior year; forward outlook	1 page
2. P&L Performance	Revenue, EBITDA, net profit — actual vs budget vs prior year; variance explanation	2 pages
3. Balance Sheet Snapshot	Key balance sheet metrics; net debt; working capital movement	1 page
4. Cash Flow & Liquidity	Actual cash flow; bank position; facility headroom; 90-day outlook	1 page
5. Business Unit Summary	Each BU: revenue, EBITDA, one key operational metric	1–2 pages
6. Risk Update	Top-10 risk register changes; new or escalating risks	1 page
7. Capital Expenditure Tracker	CAPEX budget vs actual; major projects status	1 page
8. Forecast Update	Revised full-year outlook; scenarios	1 page
9. Items for Approval	Specific board approvals required this meeting	1 page

Total target: 10–12 pages maximum.

Executive Summary — KPI Scorecard Template

FINANCIAL PERFORMANCE SNAPSHOT — [Month] [Year]
────────────────────────────────────────────────────────────────
Metric          | Actual  | Budget  | Prior Yr | Variance vs Bgt
────────────────────────────────────────────────────────────────
Revenue (PKR M)  | X,XXX   | X,XXX   | X,XXX    | +X% / (X%)
Gross Margin %   |  XX.X%  |  XX.X%  |  XX.X%   | +X% / (X%)
EBITDA (PKR M)   |   XXX   |   XXX   |   XXX    | +X% / (X%)
EBITDA Margin %  |  XX.X%  |  XX.X%  |  XX.X%   | +X% / (X%)
Net Profit (PKR M)|   XXX  |   XXX   |   XXX    | +X% / (X%)
Operating Cash   |   XXX   |   XXX   |   XXX    | +X% / (X%)
Net Debt (PKR M) | X,XXX   | X,XXX   | X,XXX    | ---
ND/EBITDA (LTM)  |  X.Xx   |  X.Xx   |  X.Xx    | ---
────────────────────────────────────────────────────────────────
Traffic light: ● Green = on track  ● Amber = monitor  ● Red = action needed

P&L Variance Analysis — Commentary Framework

Every material variance (> 5% and > PKR 10M) must be explained with:

What: The variance in PKR and %
Why: Root cause (not "market conditions" — be specific)
Reversible or structural: Will this reverse in coming months?
Management action: What is being done about it

2. Thirteen-Week Cash Flow Model

Model Structure

                      WEEK 1   WEEK 2   WEEK 3  ... WEEK 13
OPENING CASH           X        X        X           X

RECEIPTS
  Customer collections  X        X        X           X
  Other income          X        X        -           X
TOTAL RECEIPTS          X        X        X           X

PAYMENTS
  Payroll & benefits    X        -        -           X
  Supplier payments     X        X        X           X
  Utilities & rent      X        -        -           X
  Tax (WHT remittance)  -        X        -           X
  GST net               -        -        X           -
  Debt service          -        X        -           X
  Capital expenditure   -        -        X           -
  Other                 X        X        X           X
TOTAL PAYMENTS          X        X        X           X

NET CASH FLOW          +/-      +/-      +/-         +/-

CLOSING CASH            X        X        X           X
────────────────────────────────────────────────────────
FACILITY HEADROOM:
  Revolving credit      X        X        X           X
  Bank overdraft        X        X        X           X
TOTAL AVAILABLE         X        X        X           X

TOTAL LIQUIDITY (Cash + Available Facility)  X  X  X  X
MINIMUM REQUIRED:                            X  X  X  X
HEADROOM/(SHORTFALL):                       +X +X (X) +X

Weekly Update Protocol

Every Friday morning: Update actual week's cash flows vs prior forecast
Variance analysis: Where did actual differ from forecast, and why?
Roll forward: Add week 14, remove week 0, revise weeks 1–13 based on new information
Recipients: CFO, CEO, Finance Director, Treasurer, Lead banker (if in distress)

Assumptions to Document

Collection timing: what % of invoices collected in same week / next week / 2+ weeks
Payment timing: when specific supplier invoices are due
Payroll date: exact date each month
Tax payment dates: WHT 15th of month; GST 15th following month; income tax per advance payment schedule
Debt service: exact dates per facility agreements

3. Covenant Monitoring Tracker

Covenant Register Template

Covenant	Definition	Threshold	Test Frequency	Method
Net Debt/EBITDA	Net borrowings / LTM EBITDA	≤ 3.00x	Quarterly	LTM = Last 12 months rolling
Interest Coverage	EBITDA / Net Finance Charges	≥ 3.00x	Quarterly	LTM basis
Minimum Liquidity	Cash + undrawn revolving credit	≥ PKR 500M	Monthly	Point-in-time
Maximum CAPEX	Cumulative capex in fiscal year	≤ PKR 2bn	Annual	Cumulative YTD
Minimum Revenue	Annual revenue	≥ PKR 8bn	Annual	Per audited accounts

Monthly Covenant Calculation Sheet

COVENANT MONITORING — [Month] [Year]
══════════════════════════════════════════════════════════════
1. NET DEBT / EBITDA
   Net Debt (PKR M):          X,XXX
   LTM EBITDA (PKR M):        X,XXX
   Ratio:                      X.XX x
   Covenant maximum:           3.00 x
   Headroom:                  XX.X%   ●Green / ●Amber / ●Red

2. INTEREST COVERAGE (EBITDA / Finance Charges)
   LTM EBITDA (PKR M):        X,XXX
   LTM Net Finance Charges:     XXX
   Ratio:                      X.XX x
   Covenant minimum:           3.00 x
   Headroom:                  XX.X%   ●Green / ●Amber / ●Red

3. MINIMUM LIQUIDITY
   Cash balance:               XXX M
   Undrawn revolving credit:   XXX M
   Total liquidity:            XXX M
   Covenant minimum:           500 M
   Headroom:                   XXX M   ●Green / ●Amber / ●Red
══════════════════════════════════════════════════════════════
TRAFFIC LIGHT SUMMARY: ●G ●G ●G — All covenants met
Signed: _____________ CFO      Date: _____________

12-Month Forward Covenant Projection

Project each covenant metric monthly for the next 12 months under base and stress case. Flag any period where the stress case results in a covenant breach — trigger for proactive banker discussion.

4. Audit Preparation Checklist

50-Item Audit Preparation Checklist

Pre-Audit Preparation (6 weeks before year-end)

Agree audit timetable with external auditors: start date, draft accounts date, sign-off date
Distribute audit preparation instructions to all teams: Finance, Operations, Legal, HR
Review and update accounting policies: any IFRS changes applicable this year?
Identify Key Audit Matters (KAMs) from prior year audit; prepare management positions
Complete all intercompany reconciliations: agree balances between all group entities
Fixed asset register reconciliation: physical count vs register; additions/disposals
Bank reconciliations: all accounts reconciled to bank statements as at year-end
Trade receivables aging: obtain confirmation letters for top 20 debtors

Cut-Off Review (2 weeks before year-end)

Revenue cut-off: all invoices in correct period; no pre-billing of January revenue into December
Expense cut-off: December invoices received; accruals for invoices not yet received
Goods-in-transit: sales and purchases accounted in correct periods per risk transfer
Sales returns: any post-year-end credit notes relating to December sales?

Provisions and Estimates (at year-end)

Impairment of receivables: review aging; ECL calculation documented
Inventory write-downs: slow-moving, obsolete, or damaged stock identified and written down
Provisions for litigation: legal counsel opinion obtained; quantification documented
Deferred tax: temporary differences recalculated; deferred tax asset recoverability assessed
Goodwill impairment test: CGU identification; recoverable amount calculated; assumption documentation

Key Audit Matter Preparation

Revenue recognition (IFRS 15): documentation of performance obligations, timing, variable consideration
Going concern: 12-month cash flow forecast prepared; covenant compliance confirmed
Related parties: register updated; all transactions disclosed to auditors
Fair value measurements: Level 3 fair value models documented; third-party valuations obtained
Defined benefit pension: actuarial report received and reviewed; key assumption basis documented

Management Representation Letter

Draft MRL reviewed with General Counsel before signing
Confirm: all related parties disclosed; no subsequent events omitted; going concern confirmed
CFO and CEO both sign; board approval of final accounts before MRL signed

5. Financial Due Diligence Request List

80-Item DD Request List (Condensed Structure)

A. Financial Statements and Management Accounts

Audited financial statements — 3 years
Current year management accounts — monthly
Budget for current year
Most recent rolling forecast
Consolidation working papers

B. Revenue and Commercial 6. Revenue breakdown by product/service/geography — 3 years 7. Top 20 customer list with revenue and contract terms 8. Customer concentration analysis 9. Contract pipeline and signed order book 10. Pricing history and pricing power evidence

C. Working Capital 11. Accounts receivable aging — current 12. Accounts receivable aging — prior 3 year-ends 13. Bad debt write-off history 14. Accounts payable aging — current 15. Inventory analysis: fast/slow/obsolete movement

D. Debt and Treasury 16. All facility agreements (loan, revolving credit, overdraft) 17. Covenant compliance certificates — 3 years 18. Interest rate fixing schedule 19. FX exposure analysis and hedging contracts 20. Cash flow from operations — monthly, 3 years

E. Tax 21. Income tax returns — 5 years 22. Tax assessment orders received — last 5 years 23. Transfer pricing documentation (Master File and Local File) 24. Open tax disputes and provisions 25. Deferred tax calculation workings

F. Legal and Regulatory 26. All litigation: current and pending 27. Regulatory correspondence (SECP, FBR, SBP) 28. Environmental liabilities or notices 29. Material contracts list 30. Related party transaction register

6. IFRS Disclosure Checklist

Key Standards and Their Material Disclosures

IAS 1 — Presentation of Financial Statements

Statement of compliance with IFRS
Accounting policies — significant judgments and estimates
Going concern basis confirmed or material uncertainty disclosed

IFRS 15 — Revenue

Disaggregation of revenue by type, geography, timing
Contract balances: contract assets and liabilities opening/closing reconciliation
Performance obligations: description, timing of satisfaction
Variable consideration: constraint description

IFRS 16 — Leases

Right-of-use assets: opening balance, additions, depreciation, closing
Lease liability maturity analysis
Short-term lease and low-value lease exemption disclosures
Sale-and-leaseback transactions

IFRS 9 / IAS 32 / IFRS 7 — Financial Instruments

Classification and measurement table
ECL provisions: staging analysis, movements
Credit risk: maximum exposure, collateral
Liquidity risk: contractual maturity analysis
Market risk: sensitivity analysis (FX, interest rate)
Fair value hierarchy: Level 1/2/3 breakdown

IAS 36 — Impairment

Impairment test for goodwill: CGU, key assumptions, headroom
Sensitivity analysis: how much would assumption need to change to trigger impairment?

IAS 37 — Provisions

Nature, expected timing, amount for each class
Contingent liabilities: brief description, financial effect if estimable

IAS 24 — Related Parties

Key management personnel: compensation by category
Related party transactions: type, amounts, balances outstanding

Register Template

RELATED PARTY REGISTER — [Company Name] — [Year]
════════════════════════════════════════════════════════════

ENTITY REGISTER
Name | Relationship | Ownership % | Contact Director

TRANSACTION REGISTER
Date | Related Party | Nature | Amount (PKR) | Terms | Arm's Length? | Board Approved?

DISCLOSURE LOG
Standard | Note Number | Description | Amount Disclosed

OPEN BALANCES AT YEAR-END
Related Party | Receivable/(Payable) | Interest Rate | Security | Provision
════════════════════════════════════════════════════════════
Prepared by: _________ Reviewed by CFO: _________ Date: _________

8. Budget Variance Report Template

Standard Variance Commentary Structure

[BUSINESS UNIT] — MONTHLY VARIANCE REPORT — [MONTH]

REVENUE: PKR XXX M actual vs PKR XXX M budget (variance: XX%, PKR XX M)
  WHY: [specific cause — e.g., "Export orders 15% below plan due to Red Sea shipping delays
        pushing 3 contracts into Q2. Domestic volumes on track."]
  RECOVERY: [specific action — e.g., "Q1 shortfall expected to recover in Q2 as 2 deferred
              contracts confirmed for February delivery."]

EBITDA: PKR XX M actual vs PKR XX M budget (variance: XX%, PKR XX M)
  WHY: Revenue shortfall PKR XX M; partially offset by cost savings of PKR XX M on
       deferred marketing spend.
  RECOVERY: [specific action]

CASH: PKR XX M actual vs PKR XX M forecast (variance: PKR XX M)
  WHY: Customer collection timing shifted — two large invoices due December 31 collected
       January 3. No concern on recoverability.

REVISED FULL-YEAR OUTLOOK:
  Revenue:  PKR XXX–XXX M (previously: PKR XXX M)
  EBITDA:   PKR XX–XX M  (previously: PKR XX M)
  Confidence level: [HIGH / MEDIUM / LOW] — explain basis

Self-Assessment

Using the covenant monitoring tracker template, calculate covenant compliance for the following: EBITDA PKR 1.6bn, Net Debt PKR 4.2bn, Interest expense PKR 480M, Cash PKR 350M, Undrawn revolving credit PKR 800M. Covenants: Net Debt/EBITDA ≤ 3.0x, Interest coverage ≥ 3.0x, Minimum liquidity PKR 500M. Traffic-light the results and identify what actions you take.
You are 6 weeks from year-end. Work through the audit preparation checklist and identify the three highest-risk areas for your company (a manufacturer with significant trade receivables, goodwill from a 3-year-old acquisition, and two pending customer disputes). For each, describe the management position paper you would prepare.
Your company is the target of a financial due diligence exercise. The buyer sends you a 100-item request list. As CFO, identify the five items most likely to surface issues in your business (based on the checklist above) and describe how you would prepare the data room for each.