November isn’t just election season, it’s also referendum season. Across the U.S., referendums were on the ballot with the goal of improving student outcomes, funding key projects, and compensating staff. Managing these funds is an important aspect of district operations, and ensuring their safety is paramount. In order to successfully manage your bond proceeds, here are five important steps to consider.
- STEP ONE: Review your district’s investment policy
- This policy will outline the approved investment vehicles, procedures, and policies that govern the management of bond proceeds. Ensure you are familiar with all requirements.
- STEP TWO: Focus on safety
- Ensuring that all district funds and bond proceeds are fully protected by deposit insurance through your bank or additional financial institutions means that you are protected in the event of a bank failure. It’s worth noting that the United States has had several high-profile bank failures over the last few years.
- STEP THREE: Build efficiencies
- Managing drawdown schedules, facilitating vendor payments, handling arbitrage rebate compliance, and reporting on spending can become time intensive. Consider partnering with a treasury management partner with expertise in public funds administration.
- STEP FOUR: Maximize your rate
- Ensure that no matter where you place your liquid cash, you are getting the best possible rate for your deposits. Better returns can help drive incremental project improvements.
- STEP FIVE: Consider how you can support the community
- Managing funds through local community banks can help drive job creation, business expansion, and overall growth in your community. Supporting community banks with deposits grows the positive impact of your district on the community in a significant and tangible way.
No matter where you are at in your bond proceeds management process, Ampersand can help you maximize impact, and minimize costs and management time.
Learn how Ampersand can help you create a deposit management strategy. Contact Ampersand to get started.
