Unit 15 Question

Esme
Esme Registered Posts: 711 Epic contributor 🐘
in AAT Level 4 (Level 8 in Scotland)
'How is the management of cash balances in public sector organisations different from private sector organisations?'

Can't seem to find any info on this in my Osbourne book! :(

Comments

  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    http://wiki.answers.com/Q/What_is_public_sector_and_private_sector_organisation
  • currywala
    currywala Registered Posts: 14 New contributor 🐸
    Yes but it still does not answered the question as to how management of cash balance is different in public sector to the private sector
  • currywala
    currywala Registered Posts: 14 New contributor 🐸
    ESME did you sit the simulation for ocmc recently as I did few weeks ago waiting result and this question I cud not answer.
  • Esme
    Esme Registered Posts: 711 Epic contributor 🐘
    No, this is my practice simulation. I can't get wiki on my work computer so will look at the attatchment when I get home, thanks A-vic.
  • katsutlieff
    katsutlieff Registered Posts: 459 Dedicated contributor 🦉
    This one came up in my sim on Tuesday, seems a popular question. I said private sector is regulated by corporate governance as set out in the turnbull report. Whereas the public sector will have a set of standing orders setting out the responsibilities employees have in terms of invesment. These regs will be written into the statement of internal contr and must comply with The accounts and audit regs 2003. Fingers crossed this is right
  • katz568
    katz568 Registered Posts: 93 Regular contributor ⭐
    In public sector organisations there are statutory and other regulations (SORP's) relating to the management of cash balances, whereas in private sector organisations there are no regulations regarding the management of cash balances other than those contained in the Companies Act regarding directors' duties and maintaining records.

    This is the model answer I was given to that question.
    HTH
    Katrina
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    i did this last year so please bear with me

    We were told to think about the post office (public company) that is a government run organisation and ruled strickly, audits are performed every six months and they have to follow certain rules and regluations when it comes to money management.

    However privte sector businesses dont have to follow such rules as long as they report financial gain for the purposes of tax ect o and only responsbility is to it shareholders in reporting money management

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