In less than two years, the University of Redlands, in Redlands, CA, has developed a strong liquidity strategy leading to a 500+% increase in annual income on its operating cash.
This all happened in light of the faint memories of the liquidity challenges they experienced (as did many of its peers) by the Common Fund after the 2008 financial crisis.
With a spirit of determination, the U of R took the following steps that has led to its success:
1) A complete review of its banking services with an emphasis to improve forecasting of its operating cash. The university has strong banking relationships built on a proactive approach in communication with its banks.
2) Performing ongoing liquidity reviews and having an action plan established in partnership with three+one and the university’s primary bank.
3) A complete review and updating its liquidity and investment policy statements.
4) A liquidity plan with a designated time horizon on all levels of cash and a marketplace review that established reasonable expectations of potential yield, while meeting all legal, safety, and liquidity requirements.
5) Once approved, the U of R finance team swiftly implemented a liquidity plan, creating a new source of revenue within 30 days of initiating the plan.
Can you expect the same type of result on your operating cash?
The answer is “absolutely!” With the help of three+one, you can create a liquidity strategy with confidence that can be used both internally and externally to reach new levels of income on your cash.
The team of advisors at three+one is independent of all banks and financial institutions. Our niche is in developing liquidity analyses for public entities and higher education institutions that can be used internally or externally with their financial providers. Our proprietary processes are designed to lead to new income opportunities while enabling these entities to have stronger relationships with their bank(s).
Northeast GFOA Holiday Seminar – December 13th in Troy, NY