Managing Cash
Summary
This publication looks at the central role that cash plays in the conduct of an organisation’s business. It examines how organisations use cash, and how cash can be made to work for them (in other words, how cash can be managed effectively).
Public service organisations are diverse both in terms of size and function. Some will have significant tax collection operations or transfer payment outflows, some will include trading and commercial operations, and others will be in the business of providing services funded largely from government grants. Whatever the case, they will need to manage cash effectively, have proper controls in place and budget for their future cash flows so as to optimise the use of cash as a resource.
In the current economic climate the flows of cash in and cash out of an organisation are subject to greater risk of volatility. Individuals may struggle to pay tax and other payments, key suppliers and delivery partners may encounter liquidity problems and seek to change terms of payment, and instability in financial markets may impact on investment returns and borrowing costs. So it is all the more important that public bodies actively manage their cash flows. This means understanding the timings of flows out, maximising as far as possible the flows in from receipts, while having regard to stakeholder needs, and optimising dealings in financial markets in a prudent manner that safeguards public monies.
This publication is designed to help those directly responsible for cash management, and also members of boards and top management teams who may have little experience of this essential topic.
This title is available as a book and a bookmarked PDF.