Liquidity Analysis Holds the Key

$20,000 to over $430,000
$50,000 to over $800,000
$7,000 to over $57,000
$45,000 to over $540,000
it goes on and on….

The proof is in the bottom-line results. Time and time again, the financial success stories we have reported were due to well-structured liquidity analyses.

Liquidity Analysis Holds the Key

Over the last 23 years, our team has been a pioneer in performing liquidity analyses for public entities and higher Ed institutions. Using our proprietary model, we are able to identify all levels of cash and ensure every last dollar is recognized as a revenue-generating asset.

Will liquidity analysis lead to greater interest earnings? The answer is without hesitation “yes.”

Since three+one is not a bank, financial advisor, or registered investment advisor, we work differently. Our analytical approach identifies patterns of your cash and considers a time horizon. We then determine a marketplace value on all levels of your cash. At that point the data is yours to share with your financial institutions. Using it, they can help you achieve higher yields—while adhering to all legal, safety, and liquidity guidelines.

The difference can add up in the tens to hundreds of thousands of dollars a year.

A liquidity analysis is not something you do once. Nor is it just an annual practice. Rather it requires a disciplined and independent perspective that you will want to live by.

If you have followed our blogs, you have seen how liquidity analysis can be the key to earning more on your cash. Together with your financial institutions and advisors, you will simply earn more on your cash. That’s the very definition of “win-win.”

The first step to a profitable liquidity analysis is your call three+one. You’ll see how stress free and easy we make the entire process, not only for you but for your financial partners as well.

Millennials Are What?

This past week, members of the three+one team attended the New York GFOA annual conference. The keynote speaker was award-winning author and filmmaker, Josh Tickell, who spoke on the topic “Passing the Torch, Working with the Millennial Generation.” His message echoed with me as I was reminded of my time with my millennial coworkers and as a father of four daughters born to this generation (born from 1980 to 2000).

Millennials Are What?

Millennials have significant technological skills, work well with numbers, and are passionate about achieving their goals. They make up over 25% of the nation’s population and their influence is clearly on the rise. As they continue to integrate into the workforce, their economic, social, political, and religious impact will be significant.

Higher Ed has already felt the impact of the millennial generation. The youngest of that generation (those born in 2000) will be heading off to colleges and universities in the next two years. But the millennial generation has been the almost exclusive student base of higher Ed institutions for the last 15 to 20 years. Colleges and universities across the country have felt millennials’ impact and now is the time for the public sector to feel it.

People younger than 30 only made about 7% of the federal workforce in 2013 compared to 25% in the private sector. This disparity between the government and its people will naturally resolve itself as older public officials leave the workforce and their positions are filled by the technologically adept and more open-minded younger generations. But until they do, it’s your job as a government official to proactively meet the needs of this critical and growing number of your constituents.

Millennials were raised during a time of great technological advances with an underlying philosophy of efficiency and optimization. That’s been ingrained into everything they do and what they expect.

Millennials are quick to adopt and evolve; for example, they hear about online and mobile payment services and then immediately see the inefficiency of cash and checks. So when they use cash and checks in their encounters with public entities, it adds to their belief that government services are antiquated and inefficient.

Millennials make up a generation that is accustomed to easy access, transparency, and a wealth of information at their fingertips. Staying open to new ideas and actively communicating with the public are all things millennials expect.

While grasping with the influence and impact of millennials may seem scary and overwhelming to us baby boomers, the future of where we are going has never looked more optimistic. How do I know? I look at my four daughters and the talent we have at three+one. We have a lot to learn from them, as they do from us.

Yes, millennials are on the rise and they will be the force of the future—all 80 million of them.


See Us At These Upcoming Events and Conferences:
GFOA South Carolina – May 1
National GFOA in Denver – May 21
New York State Association of Counties Finance School- May 2-4

Up, Up, and…

During 2015’s fourth quarter, the Federal Reserve increased Fed fund rates by 25 basis points. That same action was just mirrored in this fourth quarter.

Up, Up, and...

Based on the latest comments from Fed chair Janet Yellen, the next three years should bring another 75 basis point increase per year to achieve a short-term rate of 2.75% to 3.00%. If only half of those estimates actually happen, short-term rates could hover around 1.50%.

Compared to rates over the last decade, this would be a big increase. However, these levels would still be an historic average that is considered healthy in controlling inflation and economic growth.

The difference between now and the last 10 years is that rates are on the way “UP”—to what degree will depend on the rate of economic growth in the U.S. and overseas. Clearly, there is plenty that is very much “up in the air.

What should one consider as next steps under these circumstances? Are your instincts to be proactive or have a sense of urgency? In my view, you should be both. As mentioned in past blogs, the markets are already reflecting the Fed’s action well in advance. Bank deposit rates will lag, while short-term Treasuries are earning close to 1.00% or more.

Up, Up, and...

Every dollar of cash you hold has both a time value and worth. Now is the time to capture the opportunity of new income for your entity. It is real!

At three+one we can help by analyzing every dollar that comes into and goes out from your unit, department, organization, or institution—and place a time value and worth on those funds. The results can add tens to hundreds of thousands of dollars to your fiscal year’s bottom line.

Our proprietary work can produce a sizable “gift” to your taxpayers or customers that will keep on giving for many years to come.

Earning High Grades

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.


Earning High Grades


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