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University of Toronto – Cash Management

University of Toronto – Cash Management. CAUBO June 2006 By Helen Choy 416-978-2981 Helen.choy@utoronto.ca. Cash Inflows. Provincial Operating Grants & Investment income. Clearing bank. Any bank. Student fees. General Bank Account. Master Card Account. Student fees for

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University of Toronto – Cash Management

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  1. University of Toronto – Cash Management CAUBO June 2006 By Helen Choy 416-978-2981 Helen.choy@utoronto.ca

  2. Cash Inflows Provincial Operating Grants & Investment income Clearing bank Any bank Student fees General Bank Account Master Card Account Student fees for self-funded programs, Sales of Goods & Services, Research Grant Contracts USD Account Research Grants (Wires) Trust Bank Account Donations

  3. Cash Outflows General Bank Account Payroll Expenditure Account Individuals (net pay) Foreign Drafts Current Account Suppliers, affiliates, research partners, taxing bodies Cash- in-action Short-Term $US Account Investment By UTAM (Longer- Term) Mastercard Account Imprest & Petty Cash

  4. The beginning… • UTAM formed in April 2000 • Cash management transferred to Financial Services Dept. • Assessment & more understanding • Hired help (3 months) for data gathering • Used downloads from financial systems, investments & banking reports and spreadsheets

  5. Now that we know more… • Identified patterns • Identified cash volume & timing • Consider impact of major upcoming cash flow changes • How to best perform cash management? • What tools to use?

  6. Objective of Cash Management • Maximize funds available for investing • Accurate and timely information for budgeting and forecasting • Accurate and timely information for borrowing and internal lending • Accurate and timely forecast of capital available for investment

  7. Functions and reports • Daily cash requirements & transfers • Monthly forecast for next 3 months • Monthly forecast for the fiscal year • Annual long-range budgets - multi-year • Other cashflow-related analysis and reports

  8. How… • Worked closely with other areas with information affecting cash inflow & outflow • Used downloads from system & spreadsheets to summarize & report • Expanded the existing daily cashflow spreadsheet

  9. How… • Detailed forecast of Provincial Grants: • Gathered historical data & budgets • monitored receipts by program & dates • Revised with new information • Detailed forecast of Research wire deposits: • Gathered historical data & awards information • Monitored receipts by sponsor & dates • Revised with new information

  10. How… • Detailed forecast of payments: • Classified cheques over $50K by major categories, by month issued and by month cashed. • Tabulated amounts for cheques under $50K by issued and cashed date. • Daily estimate of cheques to be cashed – over and under $50K

  11. How… • Other: • Modelled and analyzed the impact of changes in major cashflows • Continued updating historical data and graphing cashflows • Prepared daily cashflow balances and compared to monthly averages

  12. Benefits • Reduced amounts kept in our bank accounts without incurring overdraft charges, hence kept more funds invested • Better estimate of amounts available for investing (budgets and forecast) • Assisted in decisions on internal lending and external borrowing

  13. Time spent • Daily cash management: 0.25 FTE • Gathering and updating and reporting of related information: 0.3 FTE • Monthly forecast and annual budget: 0.2 FTE

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