As the budget season is just getting underway, many are finding it to be a very different process this year. This is certainly not the best timing to start budget projections given the unusual situation COVID-19 has put us all in.
Rather than having committees meet and sort through departmental requests, hires, retirements, predictable revenue patterns, etc., the process is rather taking place remotely, singularly, and with “best-guess” revenue projections that will surely be affected by this pandemic. The starting point is a stab in the dark, as sales tax, revenue sharing, and other kinds of projections are still 30 to 60 days away from being released.
Where do you even start in preparing for 2021, let alone the next quarter?
One major tool that can be a helpful guide in determining a budget cycle is the liquidity data that are at your own fingertips.
We consider liquidity data to be the science of looking at each financial transaction that passes through an organization. The patterns that liquidity data are able to capture include an entity’s past behaviors over the course of a full budget year. The greater the data, the greater the output in determining financial patterns.
In addition, liquidity data provide the ability for one to apply different potential scenarios, like how the coronavirus is affecting the community. As a result, revenue projections can be adjusted around certain assumptions, such as revenue losses and funds received by direct or indirect federal and/or state funding. Coupling this information with the actual levels an entity will require to meet day-to-day cash needs, an organization is able to use the remaining cash as a revenue-producing asset, thus having a positive impact on its budget.
Gathering liquidity data is a science and serves as a valuable tool and resource to any finance office. As an added benefit, the information is available remotely and securely.
The liquidity analysis and data provided by three+one’s cashvest® platform is the only service of its kind that’s available to public entities and higher Ed institutions nationwide. Not only can you have liquidity data provided to you directly to use in preparing a budget, it can also be used to provide specific forward forecasting that can be applied in “what-if” circumstances, while comparing any potential stresses on your operating cash levels.
Let the three+one® team help you through your budget process. There is not a specific liquidity scenario that we have not had to address, in good times or challenging ones. Consider us as part of your remote budget team to help you apply liquidity data to ensure a better outcome.
The impact of COVID-19 has highlighted the crucial need for data to craft informed financial policy. As such, the role of Chief Data Officer is growing in importance as finance & technology continue to become more inextricably linked. When budgets are strained & finance teams are working beyond capacity, especially given today’s state of the economy, cashvest® is the CDO your entity needs on your side.
As we continue to talk with all our clients, families, and friends during these challenging times, we want to emphasize that cashvest® by three+one® remains ready to serve you.
In fact, during the past week, the National Association of Counties (NACo) and the New York State Association of Counties (NYSAC) have endorsed cashvest as a liquidity analysis and data services specialist in dealing with the COVID-19 crisis.
At three+one® we have always viewed our responsibility to our individual clients, public entities and to those seeking affordable Higher Ed, and to public taxpayers as a sacred trust. We feel this obligation now more than ever and fully embrace the duties that come with it.
Putting cashvest® data to work now has an added benefit. Over the months to come, your office will be able to utilize the data received as a result of COVID-19 to develop an Emergency Preparedness Plan (EPP) based on your tailored liquidity analysis. Please take note that any EPP that does not take liquidity analysis into account is not a complete and reliable EPP.
We take great pride in the feedback we have received from actual three+one® clients through the COVID-19 crisis. Here are some of the comments that we have received over the last week:
“We are fortunate to have strong relationships like the one we have with three+one. Knowing you’re there for us is genuinely comforting and gives me one less thing to worry about.”
“Out of any relationship that the County has, there isn’t a single one that is as profitable and beneficial as the one we have with three+one.”
“Alex has been a wonderful resource to us, and I am sure we will continue to lean on him for assistance in the months to come.”
“We appreciate you being there for us. Your team has been (as always) a great help!!”
“Thank you for thinking of us. I appreciate all of the three+one’s hard work!”
“Appreciate the relationship we have built with three+one.”
“It looks like we are in the best shape that we can expect at this unusual time.”
“I am extremely pleased with the continued excellence received from three+one!”
“Appreciate your concern—you are a good partner!”
Once more, we want to express our genuine gratitude for the honor and privilege of serving each of our clients—both public entities and Higher Ed institutions, along with your taxpayers and students.
Want to get started with your COVID-19 financial analysis and Emergency Preparedness Plan?
Call us today at 585-484-0311.