The Basics for University Treasurers: the need-to-knows

Th e Ba sics for
Un ive rsit y Tre a su re rs:
t h e n e e d-t o-k n ow s

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2
• Introductions
• Higher Education Industry Insights
• Southern Methodist University’s Treasury Program
• The California State University’s Treasury Program
• Panel Session/ Q&A
Agenda

3
Introductions
Brice Priestley
Assistant Treasurer,
Southern Methodist
University
Ron Flatt
Director Treasury
Operations
The California State
University – Office of
the Chancellor
Whitney Henry
Higher Education
Consulting Director
Huron Consulting
Ashlee Hartman
Executive Director
Kyriba

7
Poll Question 1

Industry Insights:
Higher
Education
Treasury
Insights
8
 Higher Education been under considerable financial pressure
due to changes in enrollment, student housing revenue
impacts and strained financial operations where declines in
revenue are outpacing declines in expenses.
 Many institutions are addressing administrative and
academic program costs to support efforts to address long -
term financial health.
 Higher education institutions are looking to address
technology systems to support financial visibility, data and
reporting needs, student retention and revenue support.

Higher
Education
Treasury
Insights
9
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
Daily Liquid Assets (per Moody’s)
Note: Bubble sizes represent daily liquid assets
CAGR
in
Daily
Liquid
Assets
Growth Rate in Daily Liquid Assets:
Q4 2019 to Q4 2020
Operating Cash Management
Institutions have increased access to daily liquidity by, on average, nearly 8% (includes the nearly 50
institutions that report daily liquidity to Moody’s) over the last year.
New Digital Processes and
management needed for work
from home realities
Uncertain Cashflow Realities
(e.g., lines of credit, liquid
resources, internal funds, state
support)
Operating and Capital
decisions determined with
understanding of short and
long-term consequences
Real-time cash and liquidity
management and reporting
needs

Higher
Education
Treasury
Insights
10
Treasury Operations Transitions
Treasury management can seem overwhelming with compliance, accounting, internal audit,
PCI compliance, liquidity, reporting, and many processes and systems that should integrate.
• Visibility, liquidity financial forecasting and reporting, and
operating cash investment optimization
• Establish integration of systems and processes
• Automation of entries; strengthen internal controls and compliance
• Reduction in manual and spreadsheet errors
Drivers for Optimization
Treasury Services Optimization Efforts
• Entrenchment in existing processes
• Culture and relationships
• Time and financial resource allocation
Challenges to
Optimizing
Treasury
Challenges
Drivers for
Treasury
Optimization

11
Poll Question 2 (Pick Top 3)

12
About the University:
• Established 1911
• Private University
• Dallas, TX
• Theology, Humanities, Law, Business, Arts
• Education, and Engineering
• NCAA Athletics
• 6,835 Undergraduate students
• 5,550 Graduate students
Southern Methodist University

What was Treasury’s processes prior to implementing a TMS
Treasury
Organization
Prior to Kyriba
1
3
• Manual reporting and
reconciliations
• Management by email
correspondence
• Maintenance of multiple
Excel spreadsheets
• Time intensive
• Logged into multiple
banking platforms
• Time -intensive reporting
Manual Processes Inefficient

Benefits of Kyriba
Benefits of
implementing
TMS
14
Data Automation
Reporting
FULL-TIME
EMPLOYEE
SAVINGS
ENHANCED DAILY
CASH REPORTING
CLOUD-BASED,
ACCESSIBLE
PLATFORMM
One-Stop
Shop
DATA, DATA, AND
MORE DATA

COVID-19 Impact
• Accelerate adoption of data, digitalization,
and technology
• The pain points that existed prior to
implementation no longer there
• Employee morale – human capital effect
• Business resiliency
How it Helped
During
Covid -19
15

The continued evolution of Treasury
What’s Next?
16
Enhanced Cash
Forecasting
Enhanced
Reconciliation
Processes
Automation of
Payments to 3 rd
Parties

Lessons Learned from Implementation
Lessons
Learned
17
Start Small,
Add as Needed
Avoid Scope
Creep
Dedicate 3
resources to
Implementation
Tell the Story and Share the Dream

18
Poll Question 3 (Pick Top 3)

19
• CSU is the nation largest 4 -year public university system
• 23 campuses and eight off -campus centers
• 486,000 Students
• CSU Funding $6.8B
• Financial Aid - 83% of Student Population
• Single banking platform
• Over 300 active bank accounts
• FY19/20
• 473,000 Deposited items
• 2.3 M disbursements
The California State
University

Transformation of Treasury Operations
Treasury Management System
Project Requirements
• Reduce manual processes
• Daily Cash Position
• Excel workbook
• Retire Legacy Systems
• Gain Analytics / Insight
• Cash & Investments
• Investments ~ $5B
Business Requirements – Stakeholders
• Banking Operations
• Investment Operations
• Short Term & Long -Term Finance
• Accounting
• Systemwide Financial Standards & Reporting
• IT
• Campuses
Project
Goals
20

Wish
List
21
Bank Module
• Comprehensive cash view in real time
• Automation of the DCP, end -to-end (prior day, intraday, & cash movement uploads)
• Generate both investment CPO or redemption notification and email
• Campus portal for EFT alerts
• CPO processing & workflow for treasury items
• Cash forecasting tool (actual vs. forecasted, daily plus 13 -month rolling)
• Account reconciliation automation bank -to-book GL
• In-House banking – Bank of CSU
• Payment workflow process (ACH & wires)
• Netting capabilities (campus -to-campus)
• Data collection of transactions (deposits/disbursements by campus)
• Data warehouse for CMO
• Interface with 3rd party software i.e. CashNet, SmartPay, Fintech, etc.
• Interface, if and when available with SCO Systems
• Automation Bank Fee Analysis including report and allocation by campus
• Generate/post JEs
Bank Relations Module
• List of all signers by account/campus
• Master list of all bank accounts and account structure
• Assigned authority limits by users, by campus
• Users profile management, including legacy
• Document storage and electronic generation of bank documents
• FBAR/OFAC (Foreign Bank and Financial Accounts) compliance notification
Debt Management Module
• Comprehensive debt management view
• Track debt instruments
• Payment schedules
• Forecasting Changing Interest Rates – Fixed /Floating
• Cash Flows/Cash modeling functionally
• Refunding Calculator
• Market rates
• Generate financial compliance reports
Investment Management Module
• Comprehensive investment view
• Customized Performance Views/Calculators
• Fixed Income Portfolio Analytics – Duration, Ratings, Sector Allocations
• Ability to Interface with Custodian so we can execute trades through the System
• Ability to Interface with other Software Tools -- Portfolio Construction (Asset Allocation/Manager
Search) and Portfolio Monitoring (Asset Allocation/Performance Reporting)
• Tracks SWIFT portfolios balances
• Track trades
• Manage SWAPs/Netting
• Investment policy and compliances
• Benchmark / mark to market
• Investment fees analysis and reporting
• Investment Earnings Report – Quarterly & Annual
• Investment Earnings Allocation Report
• FX transition – hedging capabilities
Reporting Module
• Dashboard – cash, investments, earnings, and debt
• Business Intelligence for presentation ready graphics and charts
• Generation - CPOs
• TRX detail data for Ad Hoc reporting and analysis
• GAAP/GASB capabilities
• Generate/post JEs – including journal support
System interfaces
• Web-based – SAAS platform
• Bank Proprietary System i.e. CEO (WFB), P Card (US Bank)
• Cash-Net, Higher -One
• Investment Market Feed
• Accounting Systems / Financial Databases

Key questions:
• Readiness
• Change Management
• Adoption
• In-house vs TMS
• Integration with ERP
• Scope
• Phased Approach vs. Full deployment
• Historical Data
• Process Changes
• Today vs. Tomorrow
• ROI
• Tangible and Nontangible Savings
Considerations
22

• Systemwide Readiness
• RFP
• Selection process
• Vendor
• Right Solution
• Adoption
• UI – critical
• Ease of Use
• Internal resources
• Staff
• IT
• End Users
• Change Management
Challenges
23

• CSU’s Deployment Plan
• Phased Approach
• Bank Account Administration
• Maintenance of bank accounts
• Bank relationships and fee analysis
• Cash Positioning
• Short-term forecasting
• Daily cash positioning
• Treasury Information Reporting
• TIR Previous Day/Intra Day Systemwide
• Debt & Equity Management
• Managing long -term and short -term debt
• Debt valuation and accounting
24
CSU’s
Deployment

• Bank Account Administration
• Maintenance of bank accounts
• Bank relationships and fee analysis
• Cash Positioning
• Short-term forecasting
• Daily cash positioning
• Treasury Information Reporting
• TIR Previous Day/Intra Day Systemwide
• Debt & Equity Management
• Managing long -term and short -term debt
• Debt valuation and accounting
Going Live June 2021
25
Update
On
Hold

• COVID-19
• Be Flexible
• Zoom / Remote
• Difficult Deployment
• Process Changes
• Nonvalue Eliminated
• New
Lessons
Learned
26

The Basics for University Treasurers: the need-to-knows

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