Issues around cash management for schools

Running a school or education operation already has so much complexity, that few will appreciate that it all operates on the lubrication provided by cashflow. In most cases, operating a schools' finances is more complex than many mid-sized business, but schools do not have the luxury of investing in complex financial or treasury software, let alone the skilled resources.

Lets consider just a few of the issues faced:

Issues around cash management for schools

Liquidity

Ensuring that the school has sufficient liquidity to meet its obligations. Typically income is combinations of school fees, government contribution or grants, endowments and other sources

Idle Cash

Income and expenses are often not aligned, more so with endowmnets, and the school will have periods of excess (idle) cash and without proper attention, this cash can sit idle in zero or low interest accounts, losing valuable interest for the school

Interest rate risk

For many schools, they will also finance equipment or buildings, and therefore this debt is exposed to interest rate risk

Governance

One of the most critical aspects is that school management must ensure good governance is embedded in the schools operations and finance, more so as funds most likely have 3rd party rfeporting requirments. So policies, actions must be visible and auditable

Risk management

Once again, the fiduciary obligations bestowed on school management extends to risk management, and in the case of cash, is to ensure that cash is safe and securely invested with appropriate counterparties, in accordance with policies and guidelines

Bank relationships

As an extension of the governance aspect, schools must foster good bank relationships to ensure continuity in all circumstances

Systems and Reporting

Ensuring a fit for purpose match with reporting requirements, simplicity and automation

Solutions for school cash management and governance

Likwidity introduces a groundbreaking automated platform engineered for the sophisticated finance, accounting, and treasury professional. Our solution transforms the management of surplus and idle cash from a routine entry in your ERP or TMS into a dynamic, profit-generating activity. Automate the investment process, ensure rigorous risk management, and unlock significant increases in interest income without the need for brokers. With our pure SaaS platform, superior bank deposit optimization is now within reach

Unlocking Maximum Yield with Our Interest Discovery Marketplace

Delivering a slution to the issues around cash management for schools

In today's complex financial landscape, businesses constantly ask, how can we maximise interest on bank deposits

Likwidity provides the definitive answer. Our platform offers a one-click, multi-bank, and multi-currency comparison of cash rates from an extensive network of partner banks. This next-generation cash optimization tool delivers superior liquidity returns through unparalleled automation, streamlined administration, and comprehensive reporting.

For Schools

Liquidity

Likwidity can integrate into schools financial systems to provide a dashboard showing where cash is invested, how long and when it becomes available

Idle Cash

The core of Likwidity is about automating the process of bespoke rate discovery and thereby ensuring that idle cash is always safely optimized and earning the maximum interest

Interest rate risk

Likwidity provides insight into bank credit rating as part of the mitigation of interest rate risk

Governance

Audit trails, bank limits are embedded into Likwidity to ensure that all cash investments can be inspected and audited and remains within the prescribed limits

Risk management

The combination of multi-bank comparison, bank rating and individual bank limits offers support to the board that risk management around cash is not overlooked

Bank relationships

Our multi-bank dashboard and management tool offers schools an easy way to maintain fair and unbiased bank relationships without friction

Systems and reporting

Likwidity is fit for purpose in providing school management an easy to use platform with adeqaute automation and reporting to satisfy most avearge education organizations.

What questions should the Finance Committee at schools be asked?

1. What is our operational cash runway?

2. How much grant/ endowment funds do we have?

3. Where is school funds invested?

4. How safe is the investments?

5. Do we have a backup plan if something happens to our bank?

6. How do we know we are getting the best interest rates on our cash?