Unit 15 question

ola2

Hi
Can anyone answer the following question:

How is the management of cash balances in public sectors organisations different from private sector organisations?

I would very much appreciate your help
thanks :001_smile:

Greycow

I currently work in the public sector, the main difference is that any cash surplus cannot be invested etc it goes back into central funds.

Hope this is of some help

Pencil

Surplus funds can be invested by the public sector but it must be extremely secure investments. (If there are any of those around anymore). The public sector is accountable to the public and must be transparant with their investments and deals, making sure they get the best return at minimum risk.

Their investments are conducted via a dedicated accounting team, usually called the Treasury Department, with strict limits on how much can be invested in individual institutions.

The private sector can be as risky as they like, and investments will be made, usually with tiered approval, from their general accounts department.

A-Vic

Public is government money gained from tax revenue, audits are performed examples NHS Police ect mostly none profitable

Private - less control - Private business - Ltd only part accounts need to be shown, any money made can be reinvested.

Sorry not a lot of info but i think you will get the idea

ola2

Thank you very much for your replies, very helpful.