The key issues in liquidity management are to minimize "insolvency risk" by

1. determining how much to invest in each component of current assets and allocate funding needs to each component of current liabilities;

2. managing these investments and allocations effectively and efficiently.

“Cash, like the bloodstream in the human body, gives vitality and strength to business enterprises.” 

Cash management in higher education refers to the process of managing the inflow and outflow of cash within a university or college. This involves managing cash receipts from various sources, such as tuition fees, grants, donations, and other revenue streams, as well as managing cash disbursements, such as salaries, purchases, and other expenses.

Effective cash management is crucial for higher education institutions to maintain financial stability, meet financial obligations, and achieve long-term financial goals. Here are some key aspects of cash management in higher education:

1. Cash flow forecasting: Higher education institutions need to have a clear understanding of their expected cash inflows and outflows over a specific period of time. This helps to identify potential cash shortages or surpluses, and enables the institution to make informed decisions about cash management.

2. Cash collection and processing: Universities and colleges need to have efficient and reliable systems for collecting and processing cash from various sources. This may involve setting up electronic payment systems, managing cash receipts, and reconciling bank accounts.

3. Cash disbursement: Managing cash outflows is equally important. Universities and colleges need to have effective systems for managing payroll, accounts payable, and other expenses to ensure timely and accurate payment.

4. Cash reserves: Higher education institutions should maintain sufficient cash reserves to meet unexpected expenses and manage cash flow fluctuations. This may involve setting up a reserve fund, investing cash reserves in low-risk instruments, and regularly reviewing the adequacy of reserves.

5. Cash management policies: Universities and colleges should have clear policies and procedures for managing cash, including guidelines for cash handling, banking relationships, and cash management strategies.

In summary, effective cash management is essential for the financial health and sustainability of higher education institutions. It requires careful planning, monitoring, and execution of cash management strategies to ensure the institution's financial stability and success.

Fund management in higher education involves managing the financial resources of a university or college in order to achieve its long-term financial goals. This includes managing various types of funds, such as endowments, restricted funds, and unrestricted funds. Effective fund management is crucial for higher education institutions to achieve financial stability and sustainability, and to provide quality education to students. Here are some key aspects of fund management in higher education:

1. Investment management: Higher education institutions need to invest their funds in a diversified portfolio of assets to generate returns while managing risks. This involves developing investment policies, selecting investment managers, and monitoring investment performance.

2. Fundraising: Many higher education institutions rely on donations and grants to support their operations and programs. Effective fundraising requires developing fundraising strategies, cultivating donor relationships, and ensuring transparency in fundraising activities.

3. Budgeting: Higher education institutions need to develop annual budgets that align with their long-term financial goals and priorities. This involves developing budget policies, forecasting revenue and expenses, and monitoring budget performance.

4. Accounting and reporting: Higher education institutions need to maintain accurate and timely accounting records and financial reports to comply with regulatory requirements and to provide transparency to stakeholders. This involves developing accounting policies, establishing internal controls, and preparing financial statements.

5. Risk management: Higher education institutions need to identify and manage various types of risks, such as financial, operational, and reputational risks. This involves developing risk management policies, conducting risk assessments, and implementing risk mitigation strategies.

6. Governance and oversight: Higher education institutions need to establish effective governance and oversight mechanisms to ensure that funds are managed in a responsible and transparent manner. This involves establishing clear roles and responsibilities for key stakeholders, such as the board of trustees, investment committee, and finance team, and ensuring that they have the necessary expertise and resources to perform their duties effectively.

7. Compliance and regulatory requirements: Higher education institutions need to comply with various regulatory requirements related to fund management, such as investment guidelines, accounting standards, and tax laws. This involves staying up-to-date with regulatory changes, developing compliance policies and procedures, and working with legal and financial advisors to ensure compliance.

8. Performance measurement and evaluation: Higher education institutions need to regularly monitor and evaluate the performance of their funds and investment strategies to ensure that they are meeting their long-term financial goals. This involves setting performance targets, measuring investment performance, and making adjustments as needed.

9. Communication and transparency: Higher education institutions need to communicate effectively with stakeholders about their fund management activities and performance. This involves providing regular updates on fund performance, investment strategies, and fundraising activities, as well as ensuring transparency in financial reporting and governance.

1. Financial Management for Nonprofit Organizations - 2018 - Zietlow 

2. Cash management practice 

3. "Best Practices in Cash Management for Higher Education Institutions" by Deloitte https://www2.deloitte.com/us/en/pages/financial-advisory/articles/cash-management-for-higher-education-institutions.html