Lost Opportunity 2017 Winter Blog Series PART IV

Cashvest Score

During the month of January, three+one is publishing a five-week Winter Blog Series to discuss the five different categories of our cashVest® score. Every three+one liquidity analysis includes a cashVest score to establish a baseline going forward. It has been demonstrated, time and again, that if an entity follows our recommendations in each of the five categories, and a higher cashVest score is achieved, the more money an entity will earn on their low- and non-performing cash.

This week will highlight our fourth category:

Cash Flow Optimization:

 Winter Blog Series Lost Opportunity 2017 Winter Blog Series PART IV

Before an entity can best manage its operating and non-operating cash, it must first streamline the flow of cash into and out of the organization. With the levels of technology throughout the U.S. banking system, you should be able to review and quantify the movement of your cash flow, no matter how swiftly it moves.

You should be monitoring excess balances in all of your accounts and be checking the market for every income generating opportunity. We perform ongoing in-depth analyses of our clients’ accounts on a transactional level. The result is we help uncover short- and long-term gaps in an entity’s budget and cash flow and match it to opportunities in the marketplace.

The rapid flow and ease of cash movement is essential for you to optimize your cash flow for investment. But before you can put your operating cash to work, you need to have it come into the bank.

Achieving a five-star rating in the Cash Flow Optimization category requires (a) having strong banking relationships; (b) adopting technology and practices that create efficient and streamlined cash-flow practices; and (c) avoiding “lost opportunities” in managing operating cash.

At three+one, we can provide specific recommendations—through detailed analyses—on treasury and merchant services that enable a public entity or Higher Ed institution to adopt processes that optimize its cash flow, save money, and increase income.

if you’d like a copy… click here!

2017 Winter Blog Series. Part III: Nine Times the Value

Cashvest Score

During the month of January, three+one is publishing a five-week Winter Blog Series to discuss the five different categories of our cashVest® score. Every three+one liquidity analysis includes a cashVest score to establish a baseline going forward. It has been demonstrated, time and again, that if an entity follows our recommendations in each of the five categories, and a higher cashVest score is achieved, the more money an entity will earn on their low- and non-performing cash.

This week will highlight our third category:

The Warnick Rate Indicator®:

The Warnick Rate Indicator®

The Warnick Rate Indicator (WRI) is named after Tom Warnick, an innovative and progressive county treasurer. In his role as Wayne County (NY) Treasurer, Tom strives to invest every dollar of cash held by his county in the most profitable ways possible.

In addition to seeing his funds are fully invested, Tom routinely uses three+one liquidity analyses to determine the time value of Wayne County’s funds. The WRI allows him to compare the rate his cash is earning compared to the potential rate his funds might earn in the marketplace.

In doing so, Tom has been able to actively manage funds that had been earning lower rates. He has been able to increase earnings by over nine times the previous value of funds. Significantly, he has achieved these results without jeopardizing any legal, safety, and/or liquidity requirements set by Wayne County and the State of New York.

As a result of Tom’s success with our liquidity analyses, three+one created the WRI. We then began using it with public-sector entities and Higher Ed institutions across the country, helping them determine the level of funds that they should invest with their bank or Registered Investment Advisor (RIA). The more information and data we can provide an entity the greater the return they can expect on their low- and/or non-performing funds.

By following the principles of the Warnick Rate Indicator, entities are likely to gain tens and even hundreds of thousands of dollars in new income each year.

Achieving five stars in the WRI means that an entity is maximizing the use of 95 to 100% of its funds, thus receiving the highest level of earnings available in the marketplace—and is still meeting its legal, safety, and/or liquidity requirements.

For more information on cashVest and the Warnick Rate Indicator, please visit our website: www.threeplusone.us

2017 Winter Blog Series. Part II: For Liquidity’s Sake…

Cashvest Score

During the month of January, three+one is publishing a five-week Winter Blog Series to discuss the five different categories of our cashVest® score. Every three+one liquidity analysis includes 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, and a higher cashVest score is achieved, the more money an entity will earn on their low- and non-performing cash.

This week will highlight our second category:

Liquidity Proficiencies:

Liquidity Proficiencies

 

Liquidity represents those dollars available for disbursement at a given moment. Many times the need for liquidity is simply a “frame of mind” for the unexpected, leaving funds dormant for the pure comfort that dollars are kept available “just in case.”

Having dollars available for disbursement while also being invested is a balancing act, but you can have both.

To achieve five stars in this category requires having 90 to 100% of your operating and non-operating dollars invested, while maintaining enough liquidity to meet various disbursement needs.

At three+one we can help entities determine their day-to-day cash needs, making sure that every dollar of operating and non-operating funds is being invested at all times by their financial institution(s)—while still ensuring that all funds remain safe, liquid, and are earning a good yield.

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if you’d like a copy… click here!

2017 Winter Blog Series. Part I: Funds Available to Earn Income

Cashvest Score

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:

Percent of Available Funds Invested

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.