Treasury management: An overview: the National Magazine of Business Fundamentals C&FM Teigen, Lee E. Business Credit 103.

7 (Jul/Aug 2001): 23-24. Turn on hit highlighting for speaking browsers Hide highlighting Abstract (summary) TranslateAbstract What is treasury? Webster defines treasury as "a place where stores of treasures are kept; the place of deposit, care, and disbursement of collected funds." Moreover, if you consider the treasury function in your own organization, this definition would most likely broadly describe it. This article expands on this definition and describes the scope of responsibilities in a typical treasury function. Full Text TranslateFull text Turn on search term navigation Headnote What is treasury? Webster defines treasury as "a place where stores of treasures are kept; the place of deposit, care, and disbursement of collected funds." Moreover, if you consider the treasury function in your own organization, this definition would most likely broadly describe it. This article will expand on this definition and describe the scope of responsibilities in a typical treasury function. Treasury and its responsibilities fall under the scope of the Chief Financial Officer. In many organizations, the Treasurer will be responsible for the treasury function and also holds the position of Chief Financial Officer. The CFO's responsibilities usually include capital management, risk management, strategic planning, investor relations and financial reporting. In larger organizations, these responsibilities are usually separated between accounting and treasury, with the controller and the treasurer each leading a functional area. Generally accepted accounting principles and generally accepted auditing standards recommend the division of responsibilities in areas of cash control and processing. Accounting will create the entries for treasury to process payments, treasury will advise accounting of receipts of cash, so accounting can make the proper entries, and reconciliation of bank accounts under the control of treasury will be completed by accounting. The working relationship between the managers of these two financial functions must be very close and ethical. High-level treasury responsibilities will normally include capital management, risk management and relationship management. Treasury is a staff service

function that supports many different areas of the organization. As an internal consultant to the teams in the different functional areas, treasury provides advice in the areas of cost of capital, risk analysis and mitigation, and the effects of the teams' actions on vendors, customers or investors. The specific tasks of a typical treasury function include cash management, risk management, hedging and insurance management, accounts receivable management, accounts payable management, bank relations and investor relations. Following is a description of each of these tasks: Cash Management includes the control and care of the cash assets and liabilities of the organization. This will include the selection of banks and bank accounts, investment vehicles, investment brokers, methods of borrowing, cash management information systems, and the development and compliance with cash and investment policy and processes. Bank selection can be based on geographical location, services provided (controlled disbursements, positive pay, lockbox processing, sweep account investing, trade finance, etc.), technology provided to customers, financial strength, covenants in the credit agreement and customer service provided by the bank. Investment vehicles can include commercial paper, bonds, mutual funds, certificates of deposit and savings accounts. Of course, investment broker selection will depend on the investment vehicles they can provide, their bonding, technology provided to their customers and their service abilities. Borrowing will include the selection of lenders and borrowing vehicles that best serve the business and the lenders. These vehicles can include prearranged revolving and term credit agreements, commercial paper, debentures and private loans. Just as credit agreements will control the methods of borrowing, treasury must also develop an investment policy that discusses the level of risk taken through investments of excess cash. Information systems provided by the banks, investment brokers and other cash management providers must be integrated. All of these pieces of the cash management puzzle need to be coordinated and documented in a procedural manual in order to control the risk associated with cash. Risk Management includes customer credit management, vendor/contractor financial analysis, liability claimsmanagement, business disaster recovery, and employee benefits program risk. Customer credit managementincludes financial analysis, credit limit establishment and order control. Vendor/contractor financial analysis involves the advising of purchasing management of the viability and risk associated with those contractors and vendors that supply our organizations. From time to time, every organization must defend itself against some type of lawsuit. These suits can involve bodily injury, environmental

issues, investor suits or even frivolous suits; treasury is the conduit for information to the insurance companies and attorneys that represent and protect the company. Some companies consider disaster recovery an IT responsibility, however, disaster recovery goes beyond computer systems; it involves the entire organization, and because of treasury's involvement with risk and insurance management, they should be considered the primary leader in this endeavor. There are many risks associated with employee benefit plans, and treasury should be an integral part of this process in order to mitigate and control this risk. Insurance Management is the process of negotiation of insurance policies to mitigate the risks that the organization does not want to assume. The normal types of insurance that are usually obtained are General Liability, Workers' Compensation, Automobile, Director & Officers Liability, Fiduciary Liability, Employment Practices Liability, Crime & Theft (Securities), Property, Transportation and Surety Bonds. Some companies substitute self-insurance or captive insurance companies for some of this risk. If the organization does not employ a full-time licensed insurance manager, they usually retain an insurance broker to advise on insurance issues and obtain insurance in the open market. Another method of risk mitigation is through hedging; this is normally used for foreign exchange, interest rates and purchase of raw materials. Accounts Receivable Management includes the control of cash receipt systems within the organization. This involves the management of customer disputes and deductions, collections, and the systems and processes for control of accounts receivable. It will usually include the establishment of credit card/purchasing card settlement systems. Accounts Payable Management includes the control of the cash disbursement process. This function will include vendor relations, disputes and negotiation of the disputes, and the systems and processes for control of accounts payable to conserve cash while maintaining positive vendor relationships. Bank Relations is that function that is a delicate balancing act due to the normal practice of having more than one lender involved in most credit arrangements, and meeting their needs for services and information from your organization. These lenders must be considered a partner to your business and must be treated fairly. Bank services are obtained through negotiation or through the issuance of Requests for Proposals (RFPs), which ask for the bank's solution to providing the requested service and the pricing for the service.

In today's business environment of mergers and consolidations, this responsibility is particularly important in order to maintain the support needed for the organization's cash flow requirements. Investor Relations is that area of treasury's responsibilities that can have a great effect on the value of publicly traded organizations. To provide expedient processing of stock trades, a competent shareholder service provider should be retained by the organization. The company and the shareholder service provider have many SEC regulations that must be followed. This function must also control the flow of information to the investment community so there are no SEC violations. A successful treasury function has the same attributes as any other function within the organization that is considered successful. These qualities are: * Teamwork * Respect of Organization * Forward Thinking * Global Thinking * Technologically Advanced * Customer Focused * Finance/Accounting Knowledge * Legal Knowledge * Reliability The treasury function must work with all operations within the organization. The operational functions they are working with should consider treasury to be an internal consultant, with expertise in risk and finance. That expertise is confirmed through the holding of certifications such as CCE (Certified Credit Executive), CCM (Certified Cash Manager) and CRM (Certified Risk Manager) among many other financial and risk credentials. Treasury is an exciting and interesting function of the organization that gets involved in many diverse areas of the business that most other positions in the company do not get the opportunity to be involved in. It is a natural progression in the career of many who start out in credit management. AuthorAffiliation By Lee E. Teigen, CCE, CCM, CRM AuthorAffiliation

Lee E. Teigen, CCE, CCM, CRM, is Director, Corporate Treasury for OshKosh B'Gosh, Inc. He can be reached at 920/232-4127. Copyright National Association of Credit Management Jul/Aug 2001 Word count: 1300 Indexing (details) Cite Subject Treasury operations; Cash management; Financial institutions; Credit management Location United States, US Classification 9190: United States, 8110: Commercial banking services, 3200: Creditmanagement Title Treasury management: An overview Author Teigen, Lee E Publication title Business Credit Volume 103 Issue 7 Pages 23-24 Number of pages 2 Publication year 2001 Publication date Jul/Aug 2001 Year 2001 Publisher

National Association of Credit Management Place of publication New York Country of publication United States Journal subject Business And Economics--Banking And Finance, Business And Economics-Marketing And Purchasing ISSN 08970181 Source type Trade Journals Language of publication English Document type Feature ProQuest document ID 230189838 Document URL http://search.proquest.com/docview/230189838?accountid=8107 Copyright Copyright National Association of Credit Management Jul/Aug 2001 Last updated 2010-06-10 Database ProQuest Central

Ce este trezorerie? Definete Webster trezorerie ca fiind "un loc n care magazinele de comori sunt inute,. Locul de depozit, de ngrijire, precum i cheltuirea fondurilor colectate" Mai mult dect att, n cazul n care considerai funcia de trezorerie n organizaia dumneavoastr, aceast definiie ar descrie cel mai probabil, n linii mari acesta. Acest articol se va extinde pe aceast definiie i descrie domeniul de aplicare al responsabilitilor ntr-o funcie tipic de trezorerie. Trezorerie i responsabilitile sale intr n domeniul de aplicare al Chief Financial Officer. n multe organizaii, Trezorierul va fi responsabil pentru funcia de trezorerie i deine, de asemenea, poziia de Chief Financial Officer. Responsabilitile includ, de obicei, CFO gestionare a capitalului, de gestionare a riscurilor, planificarea strategic, relaii cu investitorii i raportare financiar. n organizaiile mai mari, aceste responsabiliti sunt de obicei separate ntre contabilitate i trezorerie, cu controlerul i trezorier fiecare ducnd o zon funcional. Principiile contabile general acceptate i a standardelor de audit general acceptate recomanda repartizarea responsabilitilor n zonele de control i procesare numerar. Contabilitate va crea intrri de trezorerie pentru plile de proces, trezoreria va sftui contabil a ncasrilor de numerar, astfel nct contabil poate face meniunile corespunztoare, precum i reconcilierea conturilor bancare sub controlul trezoreriei va fi completat de ctre contabil.Relaia de colaborare dintre managerii acestor dou funcii financiare, trebuie s fie foarte aproape i etice. La nivel nalt responsabiliti trezorerie va include n mod normal gestionare a capitalului, managementul riscului i managementul relaiei. Trezoreria este un serviciu funcie de personal care accept mai multe domenii diferite ale organizaiei. Ca un consultant intern pentru a echipelor din diferite zone funcionale, trezoreria ofer consultan n domeniul costurilor de analiz capital de risc, i diminuarea riscurilor, precum i efectele aciunilor echipe de pe vnztori, clieni sau investitori. Sarcinile specifice ale unei funcii tipice includ trezorerie cash management, managementul riscului, managementul de acoperire i de asigurare, conturile de gestiune de ncasat, conturi de pltit de management, relaiile bancare i relaii cu investitorii. n urma este o descriere a fiecreia dintre aceste sarcini: Cash Management include controlul i ngrijirea a activelor i pasivelor n numerar ale organizaiei. Aceasta va include selectarea bncilor i conturi bancare, vehicule de investiii, brokeri de investiii, metode de mprumut, sisteme de numerar de gestionare a informaiilor, precum i dezvoltarea i conformitatea cu politica de investiii i de lichiditi i procese. Banca de selecie se poate baza pe localizarea geografic, serviciile oferite (plile controlate, plata pozitiv, lockbox de prelucrare, contul de investire matura, trade finance, etc), tehnologia furnizate clienilor, puterea financiar, conveniile n contractul de credit i servicii pentru clieni furnizat de banc. Vehicule de investiii pot include efecte comerciale, obligaiuni, fonduri mutuale, certificate de depozit i conturile de economii. Desigur, selecia broker de investitii va depinde de vehicule de investiii le pot oferi, lipirea lor, cu condiia de tehnologie pentru clienii lor i abilitile lor de serviciu. mprumut va include selectarea creditori i vehicule ndatorrii care servesc cel mai bine mediul de afaceri i creditorii. Aceste vehicule pot include acorduri de tip revolving prestabilite i de credit pe termen, hrtii comerciale, obligaiuni i mprumuturi private. Aa cum contracte de credit va controla metodele de mprumut, trezorerie trebuie s dezvolte, de asemenea, o politic de investiii care discut

despre nivelul de risc asumat, prin investiii de bani n exces. Sistemelor de informaii prevzute de bnci, brokeri de investiii i ali furnizori de cash management trebuie s fie integrate. Toate aceste piese ale puzzle-ului de cash management trebuie s fie coordonate i documentate ntr-un manual de procedur, n scopul de a controla riscurile asociate cu numerar. Managementul riscului de credit include gestionarea client, furnizor / contractor analiza financiara, managementul creanelor rspunderea, afaceri recuperarea dup dezastru, i beneficiile programului de risc angajat. Credit Management Clieni include analiza financiar, de credit i de control stabilirea limitei ordine. Analiza furnizor / contractor financiar implic avizarea de cumprare de gestionare a viabilitii i a riscurilor asociate cu aceste contractorii i vnztorii care furnizeaz organizaiile noastre. Din timp n timp, fiecare organizaie trebuie s se apere mpotriva unora tip de proces. Aceste costume pot implica vtmri corporale, problemele de mediu, costume de investitor sau chiar costume frivole, trezoreria este canal de informaii pentru companiile de asigurri i avocailor care reprezint i de a proteja societatea. Unele companii considera de recuperare caz de dezastru o responsabilitate, cu toate acestea, recuperarea dup dezastru merge dincolo de sistemele computerizate; ea implic ntreaga organizaie, i din cauza implicrii trezorerie cu risc i managementul de asigurare, acestea ar trebui s fie luate n considerare lider principal n acest efort. Exist multe riscuri asociate cu planurile de beneficii ale angajailor, si de trezorerie ar trebui s fie o parte integrant a acestui proces, n scopul de a atenua i de a controla acest risc. Management n Asigurri este procesul de negociere a polielor de asigurare pentru a reduce riscurile pe care organizaia nu doresc s-i asume. Tipurile normale de asigurare, care sunt, de obicei, sunt obinute de rspundere civil general, despgubirilor acordate lucrtorilor,, directorul Automobile & Rspunderea ofierilor, rspunderea fiduciare, practicile Rspunderea Ocuparea forei de munc, Crime si furt (valori mobiliare), proprietate, transport i Garanii. Unele companii substitui auto-asigurare sau de companiile captive de asigurare pentru o parte din acest risc. n cazul n care organizaia nu angajeaz un manager full-time licentiat de asigurare, s i pstreze, de obicei, un broker de asigurare pentru a consilia cu privire la probleme legate de asigurare i de a obine de asigurare n piaa deschis. O alt metod de diminuare a riscurilor este prin acoperire; acest lucru este utilizat n mod normal pentru schimb valutar, rata dobnzii i achiziionarea de materii prime. Managementul conturilor de creane include controlul sistemelor de primire de numerar n cadrul organizaiei. Aceasta presupune gestionarea litigiilor clientilor si deduceri, colecii, precum i sistemele i procesele de control al conturilor de creane. Acesta va include, de obicei, stabilirea de carduri de credit / cumprare sistemelor de decontare carte. Managementul conturilor furnizori include controlul procesului de decontare n numerar. Aceast funcie va include relaiile furnizori, dispute i de negociere a disputelor, precum i sistemele i procesele de control al conturilor de pltit pentru a economisi bani n timp ce menine relaii pozitive furnizor. Relaiile bancare este faptul c funcia pe care este un act de echilibrare delicat ca urmare a practica normal de a avea mai mult de un creditor implicate n acordurile de creditare cele mai multe, i satisfacerea necesitilor lor pentru serviciile de date i informaii de la organizaia dumneavoastr. Aceste creditorii trebuie s fie considerat un partener pentru afacerea dvs. i trebuie s fie tratai n mod echitabil. Serviciile bancare sunt obinute prin

negociere sau prin emiterea de Cereri de propuneri (RFPs), care solicit pentru soluie bncii de a furniza serviciul solicitat i de stabilire a preurilor pentru servicii. n mediul de afaceri de astzi de fuziuni i consolidri, aceast responsabilitate este deosebit de important pentru a menine sprijinul necesar pentru cerinele organizaiei de flux de numerar. Relaii cu investitorii este faptul c zona a responsabilitilor de trezorerie, care poate avea un mare efect asupra valorii organizaiilor cotate la burs. Pentru a oferi cu promptitudine prelucrarea tranzactiilor cu actiuni, un furnizor de servicii de acionar competent ar trebui s fie pstrate de ctre organizaie. Compania si furnizor de servicii de acionar au reglementri multe SEC, care trebuie s fie urmate. Aceast funcie trebuie s controleze, de asemenea, fluxul de informaii ctre comunitatea de investiii, astfel c nu exist nclcri SEC. Un succes funcia de trezorerie are aceleai atribute ca orice alt funcie n cadrul organizaiei, care este considerat un succes. Aceste caliti sunt: * Munca n echip * Respectarea Organizaiei * nainte de gndire * Global Thinking * Avansate tehnologic * Orientarea ctre client * Finante / Contabilitate de cunotine * Juridic de cunotine * Fiabilitate Funcia de trezorerie trebuie s lucreze cu toate operaiunile din cadrul organizaiei. Funciile operaionale pe care le lucreaz ar trebui s analizeze cu trezorerie a fi un consultant intern, cu expertiza in risc i finane. Aceast expertiz este confirmat prin deinerea de certificri, cum ar fi CCE (Certified executiv de credit), CCM (Manager de numerar Certified) i CRM (Certified Risk Manager), printre multe alte acreditri financiare i de risc. Trezoreria este o funcie interesant i interesant al organizaiei, care se implic n multe domenii diverse ale afacerii pe care cele mai multe alte funcii n cadrul companiei nu primesc posibilitatea de a fi implicate inch Este o progresie natural n cariera de muli dintre cei care ncep n managementul de credit.