Introduction

The Logic of the Model page discussion refers to this use as "reconciling a forecast.” In this mode CAPACITY will replicate the financial projections produced by an association's own business planning model, and input via a standardised format, to facilitate a) full analysis of financial performance and borrowing capacity and b) sensitivity flexing of the forecast.

From the input data the model exactly replicates the association's own (unflexed) financial projections via a detailed set of "reconciliation factors". The model can then be used to flex key assumptions and, hence, the financial projections, independent of the association's own business planning model. In fact this is the main reason for building a “reconciliation” model. The flexed forecasts will not be as "accurate" as those produced by the association's own model because the capacity model is built around a simplified, "one-size-fits-all" logic.