During the month of January, three+one will launch a five-week Winter Blog Series to discuss the five different categories of our cashVest® score. Every three+one liquidity analysis will include a cashVest score to establish a baseline going forward. It has been demonstrated, time and time again, that if an entity follows our recommendations in each of the five categories, a higher cashVest score is achieved, the more money an entity will earn on their low- and non-performing cash, coupled with savings through the efficiencies obtained through new banking services and enhanced technology.
This week will highlight our first category:
1.) Percent of Available Funds Invested: Most public and Higher Ed entities consider their cash invested, even if it is sitting in a low- or non-performing bank account. It is essential to analyze the daily cash flow trends and establish the potential of one’s operating and non-operating cash if one is to determine the actual percentage of funds that are available for investment. In most cases, this percentage is actually rather low. As this percentage increases, so will the level of income an entity can realize on an annual basis, leading to tens or even hundreds of thousands of dollars of new income.
At three+one we look to have our clients achieve a 95-100% level of funds invested, leading to Five stars, while still meeting all legal, safety and liquidity requirements.