Corrective Action on Cash Management Audits

Corrective Action on Cash Management Audits

Recently, we’ve served as a resource for several partners in NYS who have undergone a wave of cash management audits by the state comptroller. And just like them, public sector & local education entities across the nation are under increased pressure due to today’s market environment.

Our team at three+one® has identified certain trends in corrective actions centered around liquidity management being cited by oversight bodies not just in NYS, but in counties, towns, and education authorities just like yours. Know that we’re available to help you navigate these challenges too.

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

Before and After: Getting a Clear Picture of County Finances Amidst COVID-19

Before and After: Getting a Clear Picture of County Finances Amidst COVID-19

As a proud partner of NACo, three+one jointly presented a webinar with the National Association of Counties on navigating public finances in the wake of the pandemic. COVID-19 has left its mark on 2020, and its impact on your county’s liquidity position is likely to last past 2020. New data opportunities allow your county the opportunity to explore how to best maximize the value on all taxpayer dollars after the COIVD-19 pandemic using liquidity analysis. This webinar will focus on how to get a clear picture of your liquidity needs, and how to use data to communicate those needs to internal stakeholders, external stakeholders, and financial providers.

An on-demand recording of this important webinar:

In this webinar you will discover how to:
-Investigate the impacts of an economic shock on your county’s liquidity position.
-Forecast liquidity to plan for different scenarios in 2021.
-Learn how to use liquidity analysis.
-Evaluate financial partners to maximize value for the taxpayers.
-Use data to share your county’s changing financial picture with stakeholders.

The information deck from the webinar:

 

Rise of the Chief Data Officer

Rise of the Chief Data Officer

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.

Shifting Focus on Liquidity

Shifting Focus on Liquidity

Liquidity data has, again, come into focus as S&P Global Ratings has reassessed its local government ratings measures to include seven new criteria of which one is “liquidity.” The new “Liquidity Score” actually measures the availability of cash (and cash equivalents) in the short, medium, and long term. Liquidity now makes up 10% of the framework for local GO ratings at S&P.

According to S&P, the chart below outlines a summary of the basis for providing a local government’s GO rating.

Among the other qualitative factors that positively affect this Liquidity Score, two of the most often highlighted are: (1) Liquidity projections for the current year and the following year, and (2) “Robust and stable” cash-flow capacity compared with peers.

We all know governments carry cash on the balance sheet for liquidity needs, reserves, etc., but do you have a forward-looking analysis evaluating cash and how it can be used to provide stability and generation of value to your taxpayers? According to S&P, this can increase your Liquidity Score and potentially have a positive impact on your entity’s credit rating.

In assessing your entity’s readiness to prepare for more attention and scrutiny regarding liquidity, here are four questions you should consider:

(1) What ongoing mechanisms are in place to help your liquidity management?

(2) Does your entity have control and oversight of liquidity data?

(3) How does your entity qualitatively and quantitatively provide liquidity data to help maximize the value brought to the taxpayers on cash?

(4) What is your entity’s cash-flow capacity compared with peers?

Aside from credit rating agencies placing an emphasis on liquidity, liquidity data have also come into focus as FASB issued an Accounting Standards Update (ASU) requiring not-for-profit entities to disclose in the notes to their financial statements relevant information about their liquidity position. These liquidity disclosures require numerical details about the actual liquidity position of a not-for-profit.

Your entity may have controls, internal experts, and time to provide and perform these types of analyses on a regular basis, and if not, three+one® can provide you with the tools, data, and peer comparisons to ensure you’re always prepared to have a credit rating that looks its best.

Sources:

https://www.standardandpoors.com/en_US/web/guest/article/-/view/type/HTML/id/2313704

https://www.governing.com/topics/finance/gov-credit-ratings-still-matter.html

http://www.msrb.org/~/media/Files/Education/Credit-Rating-Basics-for-Municipal-Bond-Investors.ashx??