University of Toronto Cash Management

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University of Toronto Cash Management

• CAUBO June 2006
• By Helen Choy
• 416-978-2981
• Helen.choy_at_utoronto.ca

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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
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Cash Outflows
Payroll Expenditure Account
General Bank 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
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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

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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?

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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

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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

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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

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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

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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

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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

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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

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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