These numbers are real: from $20,000 to $418,000 in FY 2017 (June 2016-June 2017) to $605,000 in FY 2018 (June 2017-June 2018)—and now to a projected $950,000+ for FY 2019. These are the consistent numbers for the University of Redlands (Redlands, CA) on the interest earned on all their cash.
The numbers really add up and they’re meaningful. This is not an aberration, but rather the result of a proactive approach in managing cash as an asset. It has led to a continual flow of income for the university year over year. In fact, over a period of five years, the level of new income generated by this initiative will top $5 million.
Each of the clients threeplusone serves is seeing real numbers like these on a similar scale. While the nation’s strong economic climate, coupled with higher short-term interest rates are helpful components to higher interest earnings, the common dominator to higher yield is the underlying liquidity data used to unmask all levels of cash for investment.
So what does one do to get started? The simplest step would be to contact threeplusone. Our first step would be a comprehensive liquidity analysis on the entity’s total cash position, determining the time value of all its cash, and identifying its value in the marketplace. Our pure and independent data enables a proactive approach that can be used with your financial institutions to capture the highest level of interest earnings on all cash—without jeopardizing any necessary legal, safety, or liquidity requirement.
Impressed with University of Redlands’ numbers? With our help, they could be yours—and used to benefit those you serve.
For more about how the University of Redlands’ is leading the way please read our October 2017 Blog
University of Redlands is Leading the Way with an interest earnings jump from under $20,000 to over $400,000.
Last week the University of Redlands shared the results of their mid-year cashVest score with the Board of Trustees, which we have been granted permission to share with all of you.
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