General Information

 

Purpose 

A centralized cash model is an essential part of our finance transformation, serving the larger, longer-term goal of this University to establish a single source of trusted, timely and reliable financial information. 

Centralized cash requires a shift in mindset. We realize that moving from the current decentralized approach of handling cash to a centralized model is a major change in practice and in frame of mind. From the beginning, this whole effort of finance transformation has required a shift in our thinking.  The financial management of the University has operated in practice as a collection of many independent operators. The goal of this transformation is to take this organization into the future as one UW. One boundless institution that positively impacts the world. 

 

Approach 

Centralized cash management enables more efficient handling of cash and supports three strategic goals:  

  • Prevents the duplication of efforts.  

  • Reduces likelihood of unclaimed cash.  

  • Enables access to a more comprehensive picture of cash position.  

In our current accounting framework, booking cash also means units are recording revenue. Moving to full accrual basis accounting enables units to continue recording revenue separately from when cash is received. 

A centralized cash model supports Workday first approach. Workday’s unified settlement engine allows for oversight into all transactions: expenditures, revenue, and cash. Workday is unable to support decentralized cash management or match one lump payment to multiple invoices so a gap application is essential. A central team utilizing this tool for fund matching in tandem with Workday facilitates the most effective, strategic use of these tools. 

 

Oversight 

Centralized management of cash under Sponsored Programs Finance leverages the expertise of our current team. More than one-third of the cash received by the University is grant money. Leveraging the existing expertise of the Research and Cash Accounting team in applying cash best serves units throughout the University.  

 

The Research and Cash Accounting team in Research and Compliance Operations will take on this role as the central cash management team.