9 - MASBO Institute 2013- Cash Management · PDF file 1 Presenters: Carole Loehr PFM Asset...

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Transcript of 9 - MASBO Institute 2013- Cash Management · PDF file 1 Presenters: Carole Loehr PFM Asset...

  • 2/18/13

    1

    Presenters: Carole Loehr

    PFM Asset Management LLC

    Michelle Evenson ROCORI School District

    February 26, 2013

    │ 2

    o  Controlling receipts and disbursements of cash

    o Pay the bills on time o Recognize the need to borrow o Maximize amount available for interest

    earnings

    │ 3

    o  Good fiscal management (Best Practice)

    o  Fulfill responsibility to

    o  School Board – keeps them informed o  Taxpayers – maximizes interest income

    and minimizes borrowing o  Students – maximizes educational opportunities

  • 2/18/13

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    │ 4

    o  To plan

    o  For shortages/borrowing o  For investment portfolio optimization o  Account analysis

    │ 5

    Page | 5

    Ideal Cash Flow

    Time

    Dollars $

    Receipts

    Disbursements Surplus

    │ 6

    Page | 6

    Deficit Cash Flow Forecast

    Time

    Dollars $

    Receipts

    Disbursements Deficit

  • 2/18/13

    3

    │ 7

    o  Establish and maintain an adequate liquidity level

    o  Maximize investment income

    o Extend length (duration) of investments o Realize benefits of longer term

    investments of “Core Balances” in “normal yield curve environment”

    │ 8

    o  Provide that all expenditures are properly funded

    o Identify all material expenditures o Project cash flow timing and amount o Avoid over-funding of expenditures o Utilize JIT (Just-in-Time) funding of

    expenditures

    │ 9

    o  Identify near-term cash short falls

    o How much? and when? o Clarify short-term borrowings

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    │ 10

    o  Identify macro fiscal trends

    o  Administrative tool

    o  Provide continuity and safeguards through changes in staff

    │ 11

    o  Two forecasting methods

    o Historical analysis o If the district is relatively stable

    (finances, enrollment) o If historical data is reliable and in a

    consistent format

    │ 12

    o  Two forecasting methods

    o Projection based o Is district growing/declining? o Have there been material changes to

    educational programs? o Any new outsourcing? Could it effect

    bill timing? o Payroll cycle change? o Revenue stream change?

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    │ 13

    o  Be conservative

    o  Keep cash flow materials updated

    o  Be aware of your school board investment policy

    o  Have written assumptions o Liquid balance o % increase for estimates

    │ 14

    o  Historical monthly receipts and disbursements

    o  Historical cash flow borrowing o  Current budget o  Payroll schedule o  Board meeting schedule o  Bond and interest payment schedules o  Capital expenditure schedules o  School calendar o  Current investment schedule

    │ 15

    o  Which funds should be included? o  General (Transportation, Capital Service) o  Food Service o  Community Service o  Debt

    o  Funds usually kept separate o  Building o  Student Activity

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    │ 16

    The accuracy of any cash flow forecast is dependent upon the accuracy of the input data used in the spreadsheet.

    o  All bank accounts

    o  All current investments – noting maturity dates

    │ 17

    o  Receipts o  State o IDEAS o Federal through the State o Other – Finance Department

    o County o Tax Settlements o School Tax Report o Levy Certification

    │ 18

    o  Receipts Other o Federal o Food Services o Gate Receipts o Community Services o Donations

    Debt o Aid Anticipation Certificates o Interest

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    │ 19

    County Property Tax General State Aid (GSA) State Cetegoricals and Grants Federal Aid Miscellaneous TOTAL RECEIPTS Year-Over-Year Growth Rates Year-Over-Year Growth Rates Year-Over-Year Growth Rates Year-Over-Year Growth Rates Year-Over-Year Growth Rates FY 12 - 13

    FY 13-14 3.00% FY 13-14 3.00% FY 13-14 3.00% FY 13-14 3.00% FY 13-14 3.00% FY 14-15 3.00% FY 14-15 3.00% FY 14-15 3.00% FY 14-15 3.00% FY 14-15 3.00%

    County Property Tax General State Aid (GSA) State Cetegoricals and Grants Federal Aid Miscellaneous Date Payment Date Payment Date Payment Date Payment Date Payment

    10/22/2012 $1,000,000 7/12/2012 $254,340 9/28/2012 $470,000 7/31/2012 $162,585 7/16/2012 $500 11/22/2012 $1,500,000 7/23/2012 $254,340 12/28/2012 $470,000 8/31/2012 $162,585 8/15/2012 $6,000 1/31/2013 $500,000 8/13/2012 $254,340 3/29/2013 $470,000 9/28/2012 $162,585 9/17/2012 $7,000 5/31/2013 $2,000,000 8/22/2012 $254,340 6/28/2013 $470,000 10/31/2012 $162,585 10/15/2012 $12,000

    9/12/2012 $254,340 11/30/2012 $162,585 11/15/2012 $9,000 9/24/2012 $254,340 12/31/2012 $162,585 12/17/2012 $6,000

    10/12/2012 $254,340 1/31/2013 $162,585 1/16/2013 $7,000 10/22/2012 $254,340 2/28/2013 $162,585 2/15/2013 $6,000 11/12/2012 $254,340 3/29/2013 $162,585 3/15/2013 $5,000 11/22/2012 $254,340 4/30/2013 $162,585 4/16/2013 $4,000 12/12/2012 $254,340 5/31/2013 $162,585 5/15/2013 $3,000 12/24/2012 $254,340 6/28/2013 $162,585 6/15/2013 $1,000 1/14/2013 $254,340 1/22/2013 $254,340 2/12/2013 $254,340 2/22/2013 $254,340 3/12/2013 $254,340 3/22/2013 $254,340 4/12/2013 $254,340 4/22/2013 $254,340 5/13/2013 $254,340 5/22/2013 $254,340 6/12/2013 $254,340 6/24/2013 $254,340

    TOTAL 5,000,000.00 TOTAL 6,104,160.72 TOTAL 1,880,000.00 TOTAL 1,951,017.00 TOTAL 66,500.00

    R EC

    EI PT

    S

    │ 20

    o  Disbursements

    Payroll o Pay dates o 12 months of net or gross payroll history o Extraordinary payroll Accounts Payable Other o Capital Projects

    │ 21

    o  Disbursements

    o Debt o Aid Anticipation Certificates o Bonds

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    │ 22

    Payroll Accounts Payable P & I - Debt Service NOT USED Year-Over-Year Growth Rates Year-Over-Year Growth Rates Year-Over-Year Growth Rates Year-Over-Year Growth Rates

    FY 13-14 5.00% FY 13-14 5.00% FY 13-14 5.00% FY 14-15 5.00% FY 14-15 5.00% FY 14-15 5.00%

    Payroll Accounts Payable P & I - Debt Service NOT USED Date Payment Date Payment Date Payment

    7/13/2012 $500,000 7/20/2012 $1,676,346 11/30/2012 $1,250,000 7/27/2012 $500,000 8/16/2012 $1,676,346 5/31/2013 $250,000 8/10/2012 $500,000 9/14/2012 $676,346 8/24/2012 $500,000 9/28/2012 $1,000,000 9/3/2012 $800,000 10/12/2012 $676,346 9/7/2012 $1,600,000 10/26/2012 $1,000,000 9/21/2012 $1,600,000 11/9/2012 $1,676,346 10/5/2012 $1,600,000 12/14/2012 $1,676,346

    10/19/2012 $1,600,000 1/18/2013 $1,676,346 11/2/2012 $1,600,000 2/8/2013 $676,346

    11/12/2012 $1,600,000 2/22/2013 $1,000,000 11/16/2012 $1,600,000 3/8/2013 $676,346 11/30/2012 $1,600,000 3/22/2013 $1,000,000 12/14/2012 $1,600,000 4/19/2013 $1,676,346 12/28/2012 $1,600,000 5/3/2013 $676,346 1/11/2013 $1,600,000 5/24/2013 $1,000,000 1/25/2013 $1,600,000 6/7/2013 $676,346 2/8/2013 $1,600,000 6/21/2013 $1,000,000 2/22/2013 $1,600,000 3/8/2013 $1,600,000 3/22/2013 $1,600,000 4/5/2013 $1,600,000 4/19/2013 $1,600,000 5/3/2013 $1,600,000 5/17/2013 $1,600,000 5/31/2013 $4,555,000 6/14/2013 $525,000 6/28/2013 $550,000

    TOTAL 40,430,000.00 TOTAL 20,116,146.96 TOTAL 1,500,000.00

    D IS

    BU R

    SE M

    EN TS

    │ 23

    o  Payroll – timing and amount (any variations)

    o  Accounts Payable – timing o  Minimum liquidity level o  Revenue receipts o  Non-recurring receipts and

    disbursements o  Budgets (current and future years) o  Assumptions unique to each district

    │ 24

    o  Estimate cash receipts

    o  Estimate cash disbursements

    o  Record investment activity o Redemption of outstanding

    investments o Purchase of future investments

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    │ 25

    Cash Flow Schedule

    Receipts Disbursements Investments

    Date County Property

    Tax General State

    Aid (GSA) Other Payroll Accounts Payable Debt Service

    Existing Maturities &

    Coupons

    Proposed Portfolio

    Cashflows

    Total Liquid (Non- Invested) Balance w/

    Investments

    7/1/2012 10,000,000.00

    7/2/2012 10,000,000.00

    7/3/2012 10,000,000.00

    7/4/2012 10,000,000.00

    7/5/2012 10,000,000.00

    7/6/2012 10,000,000.00

    7/7/2012 10,000,000.00

    7/8/2012 10,000,000.00

    7/9/2012 10,000,000.00

    7/10/2012 10,000,000.00

    7/11/2012 10,000,000.00

    7/12/2012 104,498.58 54,340.03 10,158,838.61

    7/13/2012 500,000.00 500,000.00 10,158,838.61

    7/14/2012 10,158,838.61

    7/15/2012 10,158,838.61

    7/16/2012 500.00 10,159,338.61

    7/17/2012 10,159,338.61

    7/18/2012 10,159,338.61

    7/19/2012 10,159,338.61

    7/20/2012 1,676,345.58 1,500,000.00 9,982,993.03

    7/21/2012 9,982,993.03

    7/22/2012 9,982,993.03

    7/23/2012 54,340.03 200,000.00 10,237,333.06

    7/24/2012