unit 15 urgent help ---management of cash balance

carolyn
carolyn Registered Posts: 28 Dedicated contributor ? ? ?
Hi there.

I am struggling with Unit 15 - Operating a Cash Management and Credit Control System.

If anyone can help me to answer the following the question, I am using the Kaplan textbook, but I can not find the answer in the book.

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

All replies greatly appreciated.

many thanks,:001_tt2:

Carolyn

Comments

  • A-Vic
    A-Vic Registered Posts: 6,970
    carolyn wrote: »
    Hi there.

    I am struggling with Unit 15 - Operating a Cash Management and Credit Control System.

    If anyone can help me to answer the following the question, I am using the Kaplan textbook, but I can not find the answer in the book.

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

    All replies greatly appreciated.

    many thanks,:001_tt2:

    Carolyn

    You need to look at how they are regulated controld and funding
  • arleneld
    arleneld Registered Posts: 56 ? ? ?
    I think its somewhere along the lines that the use of cash in the public sector must be for a "specific" use and cannot be used for anything else, eg roadworks.

    Wheras this does not apply in the Private Sector.
  • Sally
    Sally Registered Posts: 69 ? ? ?
    I cant find my notes to give you the definition given us by our tutor - but it was along the lines of- In the Private Sector, Management of surplus cash is controlled by the Finance Director/Director whilst in the Public Sector there are statutory Regulations to be adhered to which will dictate the types of investment they are able to make. Hope that makes sense.
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    You can choose not to read the detail, but I'd recommend it

    This posting looks at this issue and forms the final posting I made on the thread.

    It is a topical area, a lot of students will be scared away at the prospect of a lot of reading but the Icelandic banking crisis is a super way to illustrate the issues.

    I recommend reading it.
    Treasury 5th Report Banking Crisis: The impact of the failure of the Icelandic banks
    Sandy
    [email protected]
    www.sandyhood.com
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