ERIC Number: ED113997
Record Type: RIE
Publication Date: 1975-May
A Cash Management Model.
Boyles, William W.
NACUBO Professional File, v7 n2 May 1975
In 1973, Ronald G. Lykins presented a model for cash management and analysed its benefits for Ohio University. This paper attempts to expand on the previous method by providing answers to questions raised by the Lykins methods by a series of simple algebraic formulas. Both methods are based on two premises: (1) all cash over which the business officer has discretionary investment authority should be consolidated in one operating bank account; (2) balances shown on the books of the bank as credited to the institution's account should be kept at the minimum required or desired level, regardless of the amount of cash balances shown on the books of the institution. The model is designed to answer the following questions: (1) when should a short-term cash investment be initiated? (2) how much cash should be committed? (3) for what period of time should cash be committed? (JMF)
Descriptors: Accounting, Administration, Budgeting, Educational Administration, Educational Economics, Educational Finance, Financial Policy, Fiscal Capacity, Higher Education, Management Systems, Money Management
National Association of College and University Business Officers, One Dupont Circle, Washington, D.C. 20036
Publication Type: Journal Articles
Education Level: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.