Scribd Logo
Upload

Welcome to Scribd!

  • 176 views

    Treasury Cash Management

    Uploaded by

    vicenteferrer
    This document discusses core treasury functions including cash management, financial asset management, debt management, accounting and reporting. It describes varied organizational options for treasuries including having treasury as its own organization or part of the Ministry of Finance. It also discusses treasury systems being centralized, distributed, automated or manual. The document outlines the authority of treasuries having complete authority over budgets or requiring approval. It details cash management objectives and tools like the treasury consolidated fund, financial plans, warrants, invoice payment rationing and supplemental budgets. It describes payment arrangements for the treasury consolidated fund being centralized, deconcentrated or decentralized. The document also discusses financial plans, cash rationing, debt management, and contingent liabilities that must be managed

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Treasury Cash Management

    Uploaded by

    vicenteferrer
    176 views9 pages
    This document discusses core treasury functions including cash management, financial asset management, debt management, accounting and reporting. It describes varied organizational options for treasuries including having treasury as its own organization or part of the Ministry of Finance. It also discusses treasury systems being centralized, distributed, automated or manual. The document outlines the authority of treasuries having complete authority over budgets or requiring approval. It details cash management objectives and tools like the treasury consolidated fund, financial plans, warrants, invoice payment rationing and supplemental budgets. It describes payment arrangements for the treasury consolidated fund being centralized, deconcentrated or decentralized. The document also discusses financial plans, cash rationing, debt management, and contingent liabilities that must be managed

    Original Description:

    TREASURY

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses core treasury functions including cash management, financial asset management, debt management, accounting and reporting. It describes varied organizational options for treasuries including having treasury as its own organization or part of the Ministry of Finance. It also discusses treasury systems being centralized, distributed, automated or manual. The document outlines the authority of treasuries having complete authority over budgets or requiring approval. It details cash management objectives and tools like the treasury consolidated fund, financial plans, warrants, invoice payment rationing and supplemental budgets. It describes payment arrangements for the treasury consolidated fund being centralized, deconcentrated or decentralized. The document also discusses financial plans, cash rationing, debt management, and contingent liabilities that must be managed

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    176 views9 pages

    Treasury Cash Management

    Uploaded by

    vicenteferrer
    This document discusses core treasury functions including cash management, financial asset management, debt management, accounting and reporting. It describes varied organizational options for treasuries including having treasury as its own organization or part of the Ministry of Finance. It also discusses treasury systems being centralized, distributed, automated or manual. The document outlines the authority of treasuries having complete authority over budgets or requiring approval. It details cash management objectives and tools like the treasury consolidated fund, financial plans, warrants, invoice payment rationing and supplemental budgets. It describes payment arrangements for the treasury consolidated fund being centralized, deconcentrated or decentralized. The document also discusses financial plans, cash rationing, debt management, and contingent liabilities that must be managed

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    Treasury and Cash

    Management

    Bill Dorotinsky, PRMPS


    Budget Execution Course
    January 16-17, 2003

    Core Treasury Functions


    Cash management (flow and stock)
    Financial asset management
    Debt management, servicing; guarantee management
    Accounting (policy, chart of accounts, general
    ledger) and reporting
    Revenue collection, forecasting
    Account management (payment, collection,
    reconciliation)
    Central Bank relations

    Varied organizational options


    Treasury as an organization
    MoF core treasury plus formulation
    Core treasury only

    Treasury system system for managing government


    transactions
    Centralized
    Distributed treasury, commercial banks
    Automated, mixed, manual

    Widely differing authority


    Complete authority to reduce below budget, vire
    No authority to reduce, vire without Government or legislative
    approval

    Cash management
    Objectives:
    Assure fund availability for meeting government obligations (liquidity)
    Cash conservation
    Minimize borrowing, borrowing cost
    Maximize returns from idle cash
    Risk management

    Tools:
    Treasury consolidated fund (single account)
    Financial plans
    Warrants (allowable draws on TCF)
    Invoice payment/cash rationing
    Debt issuance
    Supplemental budgets

    Treasury Consolidated Fund


    (treasury single account)
    Single account or accounts under treasury
    management consolidation of cash
    The more accounts, the more difficult to manage, report

    Payment arrangements will vary:


    Centralized: direct transaction from TCF
    Deconcentrated: payment by spending agency from
    TCF
    Decentralized: payment by spending agency from
    imprest account

    Financial plans
    Important link between budget, agency
    programs and activity, cash flow
    Links commitments and cash

    Used for cash flow forecasting when


    combined with revenue forecast
    Allows planned, orderly debt issuance

    Usually monthly
    Periodic variance analysis to plan, budget

    Cash rationing
    (misnomer cash budgeting)

    Last resort liquidity management


    Disruptive to programs, vendors
    High corruption potential
    Need transparent ex ante rules
    Public procedure

    Likely to undermine budget priorities

    Debt management
    Debts and liabilities need to be recognized and inventoried
    Debt can include:
    Bills, notes and bonds
    Budgetary arrears
    Accounts payable
    Unfunded pension liabilities
    Accrued but unpaid employee benefits, to name a few
    Debt can also include certain obligations of sub-national
    governments

    Contingent liabilities
    Government acts as a guarantor of debt repayment
    in the event that the borrower cannot make
    repayment, or of payment under certain conditions
    Loan, pension benefit, bank deposit, agricultural price

    Contingent debt must be managed with the same


    detail as direct debt.
    As with direct debt these contingent debts must be
    inventoried and monitored in a central location
    Active identification, monitoring, management of
    risk important

    You might also like