Cash Flow Management Program

Money management goes beyond picking investment products. We believe improving Participants’ overall investment plan is the smartest way to impact and improve returns. At NPAIT, this process begins with a thorough understanding of cash flows and is carried out through PMA’s Cash Flow Management Program, which analyzes large fields of data and capitalizes on the newfound insight.

PMA’s Cash Flow Management Program gives NPAIT Participants a complete and accurate picture of their cash flow so they can put their money to work sooner and longer.

There is more to money management than simply shopping for investments. An accurate cash flow plan allows a client to build an investment schedule that capitalizes on the yield curve benefits of longer-term investing. PMA’s cash flow analysis helps Participants meet liabilities with a maturity, invest longer to take advantage of higher rates, plan for cash shortfalls, and identify long-term investment potential and maximize interest income. PMA’s cash flow analysis is free of charge for NPAIT Participants.

The Power of a Good Plan

The result of PMA’s comprehensive historical analysis of a Participant’s financial statements is a daily cash flow plan. This plan maps out such items as payroll dates and amounts, debt schedules and state aid payments, and a range of additional variables. PMA then builds an optimized investment schedule that:

1. Covers expenses
2. Extends maturity lengths
3. Captures the yield curve benefits of long-term investing

Competitive Bidding

Not only does PMA put Participant’s money to work for the long-term, our competitive bid program seeks to secure the best rate possible. This is accomplished by competitively bidding investments across our expansive network of banks and securities dealers on behalf of each public entity. A single call to the NPAIT service team gives investors efficient access to a robust institutional network of financial institutions.

Bond Proceeds Management Program

Offered through the NPAIT program, PMA’s Bond Proceeds Management Program (PMA BPM) is a comprehensive service that helps Participants establish a reliable and sufficient flow of funds, optimize investment earnings, and adequately cover projected expenses. Additionally, PMA BPM helps public entities reap significant benefits in the critical areas of investment, arbitrage and reporting.

Tax exempt debt issuers are subject to a long list of Internal Revenue Service (IRS) requirements that dictate how and when they can use their bond proceeds. Through PMA BPM these obligations are fulfilled with as little hassle as possible.

Investment, Arbitrage and Reporting

PMA BPM assists public entities in reaping significant benefits in the critical areas of investment, arbitrage and reporting.

1. PMA competitively bids client investments across its expansive network of banks and dealers to obtain optimal pricing on client investments.
2. PMA’s local bank participation program allows local institutions to participate in the process if desired.

PMA helps bring a public entity’s construction project to life through a comprehensive investment and arbitrage management program that assists in maximizing interest earnings while complying with arbitrage and IRS regulations, existing policies, as well as state and federal statutes.

PMA’s specialized monthly reports provide:

• Reliable interest earnings projections
• Arbitrage spend down status
• Spending exception tests
• Monthly updates on potential arbitrage payments
• Comprehensive portfolio reporting