Is advanced liquidity management worth the effort? You bet it is. In order to substantiate that claim, we will highlight three different counties from across the U.S. that have drastically improved their cash position by using the latest in liquidity-analysis tools.
In order to measure the true impact of effective liquidity management, we first calculated how much each of these counties would have earned over the past 12 months had their funds remained on deposit in daily money market accounts or general deposit accounts. Those are reliable options for SOME of your day-to-day operating funds, but they are not good options for ALL of a county’s funds. That’s especially true when those funds could remain on deposit for many months.
Here are some examples of what effective liquidity management can do for a county’s bottom line:
Wayne County, NY (population: 90,000) is an example of excellent liquidity-management practices. They earned a total of $828,000 last year versus the $60,000 they would have earned had their deposits been earned at the 2021 average daily U.S. Treasury rate of five basis points. Over the past six years, Wayne County has earned more than $7 million dollars.
Beaufort County, SC (population: 192,000) is another great success story. They earned $1,317,000 in 2021; they would have only earned $88,000 at U.S. Treasury daily rates. Beaufort County has earned an incredible $15.5 million in income over the past four years (2018-2021) by employing sound liquidity-management techniques.
Chautauqua County, NY (population: 127,000) created $806,000 in value in 2021 whereas they would have earned just $20,000 at daily rates. Total earned 2019-2021 added up to more than $4.0 million dollars.
Want to know more about how the cashVest program is generating revenue for entities across the nation? Join us on March 24th at 2:00 PM EST for “cashVest Score: what is it, and how do I improve?” presented by Garrett Macdonald.
