How accurate is your utility expense budget?

RELEASE: March 11, 2003

CINCINNATI — Everyone understands the issues and associated implications of going over budget. However, miss forecasting expenses on the low side can be just as critical to your organization as being over budget. This is due to the overall corporate management of cash and how it is used throughout your organization. The over estimated budget can take resources from other key projects that might have delivered incremental revenue, reduced operating expense, or improved quality.

Ask Yourself…

• Did you account for expenses related to open and closed sites?
• Did you give consideration to the utility rate changes?
• What are the impacts of the capital investments on demand?
• How did you account for weather anomalies from year to year?

Here’s Your Solution…
Cadence Budget Forecasting Service delivers improved financial forecasts, improved management reporting, and customization to meet your needs. We combine our knowledge of your facilities and associated energy data with our knowledge of the energy markets throughout the nation to deliver a cost effective solution.

If it's your responsibility to establish your company's utility budget for 2003 then it is critical that you have accurate historical data as well as a reliable forecast on how your expenses are expected to increase due to utility-influenced factors, such as electric rates and their associated charges. Cadence's Rate Table can help normalize historical data (by understanding rate adjustments) and help set expectations for base rate increases for 2003.

Cadence will utilize a proven six-step process to efficiently create your budget forecast:

1. Default Variation Projections
2. Client Baseline Expense Summary
3. Client Variation Projections
4. Client Final Budget Forecast
5. Monthly Budget Variation Reports
6. Research and Identification

And the Result…
Simple…Cadence will deliver an accurate Multiple Site Budget Forecast that you can use to manage expenses throughout the year.

About Cadence:
Cadence helps companies with multiple facilities monitor and manage one of their third largest costs of doing business - facility-related energy, water, and telecommunication expenses.

Cadence provides Accounts Payable outsourcing solutions, web-based software applications and professional services (including invoice auditing, rate analysis, energy procurement, benchmarking and budget forecasting) that address the unique business needs of companies with many departments managing many vendors across many geographically dispersed locations.

Cadence's Solution delivers hard-dollar cost savings and efficiencies with average net returns greater than 200% for tens of thousands of facilities throughout North America. Cadence is an independent and privately held company located in Cincinnati, Ohio.

CONTACTS
Cadence Network Contact: Ben Dolan, Cadence Network,Inc. 866-CADENCE (866.223.3623) bdolan@cadencenetwork.com