Unit 15 Task 10

ema192
ema192 Registered Posts: 107 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Difference Between a Public and Private sector in the way in which they can invest surplus money??

I have an idea of the possible answer, just wondered if anyone could maybe give me any clear possibilities?

Thankyou in advance

Emma

Comments

  • gregory
    gregory Registered Posts: 37 Regular contributor ⭐
    Public ones can't invest surplus money outside of an organisation and if an organisation goes on debts can't seek external funds to cover it.
    This is what remember from my reviews. But You better check with others
  • exam panic
    exam panic Registered Posts: 157 Dedicated contributor 🦉
    public vs private

    Hi there .
    I think public sector when they invest surplus they have to following regulations from goverment .
    Private sector they can do what they want with there money as long they have to following 1985 company act.
  • stevef
    stevef Registered Posts: 258 Dedicated contributor 🦉
    The public sector have to follow the CIPFA codes of practice on Treasury Management and the CIPFA Prudential code, as well as legislation. Basically: the public sector (local government anyway) have to consider security and liquidity before yeild; can only invest using sterling; have to prepare detailed policies and practice documents for presentation to and approval by elected members (setting out all risks and actions taken to mitigate these risks, interest rate forecasts and schedules of who you can invest with); have to report on investment activities to elected members at least twice each year; only invest with high credit rated organisations; and if investing for more than 364 days, set out even more detailed analysis of risks and mitigation.

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