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Centralized Cash Management System

Requirement:

All Faculty Practice Plan corporations have converted to M&T Bank and utilize the UBA centralized cash management system.

Advantages of Centralized Cash Management:

1. Idle cash is invested in Money Market funds on a daily basis in order to maximize interest revenues.
2. Able to obtain exceptional pricing from M&T Bank for banking services due to the balances and volume of activity for the Practice Plan as a whole.
3. Eliminates duplication of efforts in managing cash in that all activities are centralized and performed by one individual.
4. Future activities will include the opportunity for Practice Plan's to invest in longer-term vehicles with higher returns as recommended by the UBA Board of Directors to the FPMP Governing Board

Description of the Cash Management Process (see attachments):

1. Each Practice Plan will have a minimum of two bank accounts; a depository account and a checking account (controlled disbursement account).
2. Both accounts are considered zero balance accounts. The monies deposited into the depository account will be swept into the central UBA account on a daily basis (see attachment #1). The checking account will only be funded in the amount of checks that will be clearing that night, and therefore will be at a zero balance once the checks have cleared.
3. UBA's cash manager will obtain amounts from the bank via the Web each morning to determine how much money has been deposited into the various department accounts and to determine how much will be clearing the checking accounts that evening. All excess funds will then be invested in the M&T Vision Money Market Fund account.
4. Practice Plans will receive a spreadsheet on a daily basis (or as requested) which details by date the amounts deposited and the amounts disbursed. (Note that UBA sees only total deposits and total disbursements.
5. Dividends (interest) will be calculated and allocated to the Practice Plans based on their average daily balances. For example, if a Practice Plan had 10% of the entire average daily balance, they will receive 10% of the dividends earned for that month.
6. Practice Plans will receive bank statements and service charge analysis statements directly from the bank on a monthly basis. Service charges are charged to the UBA central account, and therefore will be allocated back to the departments on a monthly basis.