unit 15 urgent help ---management of cash balance

carolyn

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

A-Vic

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

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

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

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