Leveraging Data to Maximize Public Value

Leveraging Data to Maximize Public Value

As a proud partner of NACo and NCACC, three+one jointly presented a webinar with the National Association of Counties & North Carolina Association of County Commissioners on leveraging data to maximize public value. Together we will discuss the difference between liquidity & cash flow, how to use liquidity data to identify all cash available to your entity – and how long it’s available. You will also see how a future liquidity forecast, in conjunction with cash flow forecasts, can help prepare your entity for upcoming cash needs, and how knowing what your cash needs are allows you to maximize the value of cash you won’t need, using stress testing & peer benchmark data.

Download the information deck from the webinar:

Leveraging Data to Maximize Public Value three+one cashvest

NCACC Webinar – Liquidity Management in 2021 – 1_12_21

three+one® is Not a Bank, We’re Your FinTech Resource

three+one® is Not a Bank, We’re Your FinTech Resource

cashvest® by three+one® is a financial-technology resource for our partners in public sector and higher-ed. We are not a bank, nor do we accept deposits. Instead, we partner with your entity to strengthen banking relationships by providing precise liquidity data, benchmarking tools, and forecasting to financial officers in order to make the best, most informed decisions for taxpayers and stakeholders.

As a COVID-19 resource for your entity and those you serve, let our team be a trusted guide on the Pathway to Recovery® today.

Higher Credit Ratings = Lower Borrowing Costs

Higher Credit Ratings = Lower Borrowing Costs

Higher Credit Ratings = Lower Borrowing Costs

Pathway to Recovery® Series

If your municipality or university is considering refinancing existing debt or borrowing money during 2021, then you will want the bond-rating agencies to recognize your strengths. One sure way to do that is for you to have a precise picture of your organization’s overall liquidity.

Having a cash flow report on hand as you begin the borrowing process is not the same thing as bringing an accurate, up-to-date liquidity analysis.

Cash flow measures the surface, the “ups and downs” and “ins and outs” of daily transactions. A liquidity analysis does much more, measuring the true depths of your entity’s overall financial resources.  Imagine “cash flow” as the waves that roll and swell on the topmost surface of the ocean. The waves may have peaks and valleys, but they do not provide you with a picture of what lies beneath. Now think of “liquidity” as those ocean trenches that descend fathoms deep, all the way to the bottom.  The deeper your “ocean,” the stronger your finances.  The bond-rating agencies recognize that having a precise picture of a public entity’s liquidity can help them determine how much risk to assign to your borrowing.  The stronger your liquidity, the lower the risk and, ultimately, the lower your debt-service charges.

As a longtime County Treasurer and CFO, I participated over the years in many S&P and Moody’s ratings discussions. I can tell you that having accurate liquidity data at your fingertips can help reduce borrowing costs, and ultimately, save taxpayer’s money.

Allegany County (NY) Treasurer Terri Ross, a good friend and highly respected colleague, recently announced that she saved $1.5 million in interest charges on a recent refinancing, thanks to three+one®’s liquidity data!

Our team here at three+one® stands ready to assist your public entity by providing you with a precise measurement of your liquidity.  We have the expertise, the professional staff, and the latest fintech tools to help you present the strongest possible position to S&P, Moody’s, and Fitch Ratings the next time you issue debt.

Financial tools from three+one include cashvest®, MC Forecast®, rfpPrep®, and direct client access to our team of liquidity and cash-management professionals. When combined, these powerful tools provide public entities and higher Ed institutions with the kind of accurate and reliable cash-management data that they need in order to make the best financial decisions for the funds in their care.

The author served for a total of 38 years in local government at the village, town, and county levels, including 24 years as a County Treasurer/CFO responsible for investing public funds. He can be reached by phone at 585-484-0311.

The Year of a Checkup

The Year of a Checkup

Pathway to Recovery® Series

As we enter the new year, the aftermath of the COVID-19 outbreak is being addressed with a combination of vaccines and a series of stimulus funds in an effort to recover. This year may be considered a year to perform a “checkup” on the health and financial well-being of your entity.

The only way a doctor can perform a checkup is to conduct a series of tests, ranging from blood tests to various bio-technology procedures.  The information gathered in performing these tests provide data ranging from what has occurred to assessing your health going forward.

three+one liquidity checkupThat same level of a liquidity review should be considered for your public or higher Ed entity given the traumatic landscape experienced in 2020.  A complete liquidity review should incorporate a holistic perspective of all financial transactions and the ebbs and flows of dollars during the pandemic.  The information gathered through an in-depth analytical review will be extremely helpful, not only around what your entity experienced through an historic multi-generational occurrence, but also how you might better address such events in the future.

A liquidity review should incorporate the following:

— A collection and review of all dollars and financial transactions that flow through an organization on a daily, weekly, monthly and annual basis.

— A review of all bank accounts and fees associated with each financial institution.

— A review of all technology being used to perform financial transactions, including investments.

— A review of fraud protections and policies associated around all financial transactions and financial institutions used.

— In preparation for any current debt, refinancing and/or future lending needs, a complete qualitative and quantitative liquidity analysis report should be prepared for the rating agencies to review.

— A review of one’s Investment Policy Statement, Electronic Payment Policy and an all-inclusive review of banking relationships.

— A projection of cash impact on the entity from the effects of COVID-19, and patterns detected from its implication and any subsequent funds received to address the pandemic, social unrest or natural catastrophe. Please keep in mind, the data collected during 2020 and 2021 will have significant impact on how you manage for the future of your entity’s financial well-being.

At three+one®, our cashvest® platform provides proprietary liquidity analysis and data that allows you to have the confidence in dealing with the financial implications of a major event, such as COVID-19, natural disaster or human inflicted occurrence.

A cashvest® liquidity checkup over 2021 will provide you with new sources of revenue, savings efficiencies and the peace of mind, all while allowing you to focus on what is most important, that being those you serve.

Looking Backward Helps Us to Move Forward

Looking Backward Helps Us to Move Forward

Looking Backward Helps Us to Move Forward

Pathway to Recovery® Series

In order to make forward progress, you have to be able to see and evaluate what is going on behind you. Imagine driving your car and suddenly realizing that your rearview mirror and both side mirrors were no longer visible to you. There’s a reason they describe that perspective as having a “blind spot.” It is because you feel temporarily blinded, despite having already moved beyond those points. Even though you are able to clearly see the road ahead of you, you might still take your foot off the gas pedal or even apply the brakes. Ironically, due to your inability to see what is behind you, your forward progress is disrupted or even brought to a stop.

As we begin the new year and try to envision what the next 12 months might look like, it’s important that—in our careers as well as in our private lives—we rationally evaluate what we may have done right over the past year, as well as what we could have done better. That’s really the only way to make sure that we continue to improve and progress, both professionally and personally.

After having spent many years serving in local government myself, I can honestly say that our public institutions simply do not have the available manpower to spend a lot of time reviewing, evaluating, and analyzing prior performance. In keeping with our “driving a car” analogy, municipalities and other public institutions tend to look forward— “through the windshield” as it were—and they frankly don’t have the staff, nor the time, to be constantly checking those rearview mirrors to evaluate what has already happened. And therein lies the potential “blind spot.”

Here at three+one®, we provide financial tools to help our municipal and higher Ed clients see the whole picture—a panoramic view of the past—as well as a clear vision of the future. Our patented cashvest® technology instantly analyzes hundreds of thousands of past financial transactions; that gives our clients a crystal-clear picture of the precise revenues and expenditures that have flowed into, and out of, their dozens of bank accounts. All of that historical data, when combined with current banking index rates and accurate forecasts of how long that cash will remain in their accounts, provide a sharp, clear picture of how those funds can be used to generate maximum income.

Much like glancing into a car’s rearview mirrors while also scanning the road ahead, with cashvest® in their toolbox, our clients are provided with an accurate picture of the past, while our MC Forecast® projections provide them with a clear and detailed vision of what likely lies ahead. Just as when driving a car, the best way for government entities or higher Ed institutions to move forward is to continuously keep glancing backward.

Financial tools from three+one include cashvest®, MC Forecast®, rfpPrep®, and direct client access to our team of liquidity and cash-management professionals. When combined, these powerful tools provide public entities and higher Ed institutions with the kind of accurate and reliable cash-management data that they need in order to make the best financial decisions for the funds in their care.

The author served for a total of 38 years in local government at the village, town, and county levels, including 24 years as a County Treasurer/CFO responsible for investing public funds. He can be reached by phone at 585-484-0311.