Treasury Management and Best Practices

This set of flashcards reviews key concepts related to Treasury Management, including internal and external relationships, strategic and operational planning, policies and procedures, payment methods, forecasting, fraud prevention, and procurement processes.

What are some key internal relationships in treasury management?

Treasury, Council, Mayor, Accounting, Public Works, Parks & Rec, Legal, Risk Management, IT, HR, Internal Audit, Procurement, Budget.

Who are the main external relationships in treasury management?

Treasury, Banks, Custodians, Ratings Agencies, Broker Dealers, Underwriters, Municipal Advisors, Investment Advisors, External Auditors, Bond Counsel, Disclosure Counsel.

What is the purpose of a strategic plan in treasury management?

To determine goals and direction for Treasury Services.

What should a treasury organization assess to develop its culture?

Services provided, perception of the treasury unit, familiarity with best practices, adherence to internal policies, and identification of organizational risks.

What are essential elements of treasury management policies and procedures?

Review of state law requirements, understanding local parameters, and the distinction between policy and procedure involving application and frequency of changes.

What type of transactions are suitable for Automated Clearing House (ACH) payments?

High volume, low dollar transactions such as payroll, routine vendor payments, and expense reimbursements.

What is a positive pay system in check processing?

A fraud prevention method where the government sends a check register to the bank to verify and authenticate checks.

What should be considered when using purchasing/procurement cards?

Establishing a robust program with controls, including limits on merchant category codes and individual transaction maximums.

What is the significance of cash flow forecasting in treasury management?

It projects anticipated cash receipts and disbursements to ensure sufficient liquidity and improve investment earnings.

What are the components of effective fraud prevention in treasury?

Internal controls, technology, training, and clear policies for handling finances and identifying fraud.

What should a Request for Proposal (RFP) process for banking services include?

Goals of the RFP, required service areas, background information, procurement timeline, and evaluation criteria.