The Government Finance Officers Association (GFOA) recommends that your special district perform “ongoing cash forecasting to ensure that [you] have sufficient cash liquidity to meet disbursement requirements and limit idle cash.” Not only do they recommend that your special district perform ongoing cash forecasting on a continual basis, but they recommend this be done on an annual basis at a minimum.
According to GFOA, “cash forecasting can reduce the need for short-term borrowing or liquidation of long-term investments before maturity in the event of a cash shortfall and can identify idle funds and determine whether those funds could be invested during that idle time frame.”
But what tools does your special district need to perform a cashflow analysis? How long will it take? How many resources do you need to dedicate to this project? Performing a cash analysis on your special district’s receipts and disbursements by fund over time is labor-intensive and can cost thousands of dollars, but it is an essential tool that you can leverage long-term and enhances informed management decision making.
It is more important than ever that your special district possess an in-depth understanding of its cashflows, especially in today’s rising interest rate environment! A comprehensive cash flow analysis can prove to be beneficial by establishing a multiple duration approach to provide liquidity for overnight- and short-term strategies, seeking to enhance income performance with assets identified for longer duration strategies.
Attending CSDA’s General Manager Leadership Summit? Book a 15-minute appointment with California CLASS & Public Trust Advisors to discover how a cashflow analysis can positively impact your special district’s investment funds, helping you identify any potential dollars that can be reallocated to ensure your special district is earning on every investable dollar. By signing up, your special district will leave with actionable tools, an example of a cashflow analysis performed, and a step-by-step guide on how your special district can get the most out of its investment program.
If you are registered for the event and want to take advantage of this offer, log into www.csda.net and visit the General Manager Leadership Summit Community.
To learn more about this opportunity contact Cassandra Strawn cassandras@csda.net or 877.924.2732.
Need even more of a reason to book a session? Every special district that books an appointment is automatically entered into a raffle drawing to win the grand prize of Yeti cooler!