Which of the following is NOT a goal of cash flow forecasting?

Cash flow forecasting is an essential process that helps organizations predict their future financial positions based on expected cash inflows and outflows. Each of the identified goals plays a critical role in achieving effective treasury and investment management.

The first three options, focusing on optimizing the use of funds, meeting liquidity needs, and mitigating the need for short-term borrowing, all directly tie into the primary objectives of cash flow forecasting. By accurately forecasting cash flows, an organization can ensure that its funds are utilized efficiently, have enough liquidity to cover its obligations, and reduce reliance on borrowing for operational needs.

On the other hand, establishing prioritization of expenditures does not directly align with the core objectives of cash flow forecasting. While understanding cash flows may inform spending decisions and help identify when certain expenditures can be made, the act of prioritizing expenditures is more about strategic planning and budgeting rather than cash flow forecasting itself. Cash flow forecasting informs liquidity and funding strategies, while expenditure prioritization involves assessing the relative importance and timing of expenses, which is a different financial management process altogether. Therefore, this differentiates the correct answer from the others, which are intrinsic goals of cash flow forecasting.