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ERIC Number: ED226626
Record Type: RIE
Publication Date: 1982-Apr
Pages: 6
Abstractor: N/A
Reference Count: 0
ISSN: ISSN-0147-877X
Cash Management.
Fischer, Mary L.; Ostrom, John S.
Business Officer, p19-22 Apr 1982
Elements of an effective management program for colleges and universities are examined. Five basic purposes of an effective program of cash management are identified: developing accurate cash projections, managing cash receipts, controlling cash disbursements, establishing sound banking relationships, and investing funds. It is suggested that all institutions can benefit by investing funds promptly for a maximum period. The responsibility of the cash manager is to create an awareness of cash flow throughout the institution. A critical element in effective cash management is daily attention to bank balances, receipts, and disbursements. Tuition payments are a principal source of cash receipts for most institutions. To improve cash flow, consideration should be given to advancing the due date for payment of bills and/or to increasing deposits required from incoming students. Another approach to improving tuition cash flow is through the use of a lock box. Ways that the cash manager can help to direct major receipts to the institutions' investment bank account are noted, along with ways to convert noncash assets. Effective management of cash disbursements also provides opportunities for increasing invested balances. The cash manager must be prepared to react daily to bank balances--to transfer funds to investment when there is an excess over requirements and to transfer from investment to meet disbursement demands. The bank may be requested to advise the institution of its balance each day. Benefits of pooling cash in a minimal number of accounts are identified. Attention is also directed to: cash flow projections; types of short-term investments; and developments in banking and finance, including rates of inflation. (SW)
National Association of College and University Business Officers. 1110 Vermont Avenue NW Suite 800, Washington, DC 20005. Tel: 800-462-4916; Tel: 202-861-2500; Fax: 202-861-2583; Web site:
Publication Type: Opinion Papers; Journal Articles
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.
Note: "Portfolio" article.