UMB PowerPoint Template

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Special Districts Association 2009 Annual
Conference
Effective Treasury Management
Doug Windes, CCM Kari L. Osborne,
CTP Certified Cash Manager Vice President,
Treasury Management Cash Management Solutions,
LLC UMB Bank Colorado n.a.
September 25, 2009
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Table of Contents

• Introduction
• Cash Flow Management
• Cash Flow Analysis
• Cash Forecasting
• Banking Services
• Public Fund Investments
• Elderly Demographics (bonus section)
• Conclusion
• Speaker Contact Information

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I. Introduction

• Importance of effective Treasury Management
• Topics
• Cash flow management and forecasting
• Banking services
• Public funds investment program
• Aging demographics
• Wrap-up / questions and answers
• Speakers
• Kari Osborne, CTP
• Doug Windes, CCM

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Cash Flow Management

• Cash Flow Analysis
• Cash Forecasting
• Banking Services
• Public Funds Investing
• Elderly Demographics

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Cash Flow Analysis

• Key part of effective treasury management
• Enhances fiscal reputation
• Reduces Treasury operations cost
• Formal vs. informal
• Informal policy is typical
• Safety of liquidity
• Opportunity costs

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Cash Flow Analysis

• Cash flow analysis
• Objective - reduce idle or under utilized cash
• Accelerate deposits
• Manage bill payment schedule
• Data sources
• Bank statements
• Budget documents
• Historical trend analysis
• Long range revenue / expenditure plans
• Minimum time span 24 months / longest
  investment maturity

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Cash Forecasting

• Objectives
• Adequate liquidity to pay bills
• Minimize bank balances
• Debt reduction
• Enhances the investment program
• Liquidity
• Prudent fiscal management
• Operational savings
• Bank balance
• Maintain minimum to cover service fees
• Avoids loss of surplus bank earning credits

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Cash Forecasting

• Debt reduction
• Reduce borrowing
• Early redemption
• Enhances the investment program
• Increases cash available for investment
• Expands investments and increases average maturity

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Banking Services

• Banking services support your cash management
  strategy
• Information Reporting
• Receivables
• Disbursements
• Fraud Prevention
• Procurement Card Programs
• Requests for Proposals
• Investing/Debt Reduction

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Banking Services
Receipts
Wire Transfer Foreign Exchange/FX ACH
Merchant Processing Virtual Vault Cash Vault
Online Bill Pay Remote Deposit eLockbox Lockbox

Information Control Account Reconciliation
Services Online Banking Positive Pay EDI Account
Analysis ACH Debit Filter / Block Paper Debit
Block
Debt Reduction
Investments
Procurement Card Program
Wire Transfer Foreign
Exchange/FX Payroll Services Payroll Card
ACH
Controlled Disbursement Zero Balance Account
Disbursements
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Banking Services

• Information reporting
• Online reporting
• Information integration
• Treasury Workstations

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Banking Services

• Receivables Electronic and Paper
• Traditional Depository
• Remote Deposit
• Creates an image cash letter to the bank
• Control
• Possible reduced costs
• Image Lockbox vs. Traditional Lockbox

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Banking Services

• Disbursements Electronic and Paper
• ACH/Wire
• Controlled Disbursement
• Check Imaging
• Control Fraud Prevention
• Positive Pay
• ACH Debit Block/Filter

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Banking Services

• Procurement card programs Benefits and Costs
• Internal controls
• Reconciliation and Management of program
• Built in efficiencies
• No cost program, usually with rebate on annual
  spend

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Banking Services

• Requests-for-proposals process for procuring
  banking services
• Benefits the special district
• Competition is good for you!
• Keep it simple, but descriptive
• Example (Church Ditch Water Authority)

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Banking Services

• Investing/Debt reduction

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Public Fund Investments

• Statutory authority
• Investment authority - CRS 32-1-1001(e)
• Legal investments CRS 24-75-601
• Investment policy
• Mandatory for public investment program
• Policy Contents
• Statutory authority
• Objectives
• Eligible investments
• Personal liability

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Public Fund Investments

• Cash forecast enhances investments
• Extends average maturity
• Expands eligible investments
• American Idol vs. Survivor

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Elderly Demographics (bonus section)

• Replacement fertility rate is 2.1 children per
  mom
• Rate is less than 2.1 for 70 nations - ½ worlds
  population
• Russia and Japan populations decline 25 by 2050
• US population growth continues to 2050
  (immigration)
• US Population demographics
• Gray nation in year 2050
• Percent population 60 years and older US 31
  (now 17)
• Local Impacts
• Assistance with tax payments
• Emergency phone numbers for non-payment
• Fraud prevention for elderly home owners
• Letters with large fonts / white background
• Additional staff time to explain programs

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III. Conclusion

• Topic summarization
• Information sources for cash management and
  banking services
• Questions and answers

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IV. Speaker Contact Information

• Doug Windes, CCM
• Certified Cash Manager
• Cash Management Solutions, LLC
• 720-935-5850
• dsw.cms_at_comcast.net
• Kari Osborne, CTP
• Vice President
• UMB Bank
• 303-839-223
• kari.osborne_at_umb.com