Statutory regulations on cash balances in the Public Sector

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I've been asked to complete a question on the statutory and other regs relating to the management of cash in public sector organisations.... it's quite strange but I have begun to work for this sector and spoke with a senior accountant who said he was not aware of any regulations!! Now, I presume there must be some as we do have to regulate it somehow - I just don't know the guidelines.<BR>I have been told to search from Google but am not having much luck pin-pointing specific regs. Help!?!?!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Statutory regulations on cash balances in the Public Sector

    Me too, we have been told that we need to write 4000 words assignment about that, but I work at a small commercial company, I have no ideas about Statutory regulations on cash balances in the Public Sector relate to commercial company. <BR><BR>And help and advice will be very appreciated.<BR><BR>Thanks in advance.<BR><BR>Regards<BR><BR>Yanling
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Statutory regulations on cash balances in the Public Sector

    Hi Chloe,<BR><BR>Try looking at your internal procedures. Your Finance Department or whoever handles Governance issues should maintain a set of procedure notes that set out how cash is handled in every situation from banking to reimbursing petty cash etc... There are regulations surrounding things like declaring gifts, interests in other organisations etc...but I think they'd be devolved to a local level as in your NHS Trust or council body or whoever it is you're employed by.<BR><BR>Good luck, Pete.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Statutory regulations on cash balances in the Public Sector

    Chloe05<BR>I have the folowing paragraphs from my local authority<BR><BR>Background<BR>1 The County Council complies with the CIPFA Treasury Management in the Public Services: Code of Practice, which requires a Treasury Management Strategy to be approved before the start of each financial year, and an annual report on investment performance after the close of each year.<BR><BR>2 In addition, the Local Government Act 2003 has repealed Part IV of the Local Government and Housing Act 1989, including the current local authority approved investment regulations, as part of the new prudential capital finance regime, with effect from 1st April 2004. The Office of the Deputy Prime Minister has issued Draft Guidance on Local Government Investments which requires the County Council to approve an Annual Investment Strategy.<BR><BR>May I recommend that you look at your local authority either by visiting the local library of looking at their website.<BR>Then look at CIPFA - this is just one document on Treasury Management<BR><a target=new class=ftalternatingbarlinklarge href="http://www.cipfa.org.uk/conduct/download/treasurySOPP.pdf">http://www.cipfa.org.uk/conduct/download/treasurySOPP.pdf</a><BR><BR>There will be a public sector Treasury Management Conference in May - here are details http://secure.cipfa.org.uk/cgi-bin/CIPFA.storefront/EN/product/US16<BR><BR>My colleague at another college felt that the Pudential Code was important in terms of the knowledge and understanding aspects of CMCC<BR>this would be a good link<BR>http://www.cipfa.org.uk/pt/prudential_framework.cfm<BR><BR>I did not spend a lot of class time on this with my own group, as my interpretation of the AAT requirement was more to do with prudence in short-term treasury management of surplus funds rather than in financing projects.<BR><BR>There may also be information available from the Office of the Deputy Prime Minister (this could start you off)<BR>http://www.odpm.gov.uk/stellent/groups/odpm_localgov/documents/sectionhomepage/odpm_localgov_page.hcsp<BR><BR>The key is the need to be prudent with finance and not to invest surpus balances where there is any risk of not being able to receive the deposit back. To this end you will see that local authorities tend to stick to government stock and banks with a large capitalisation. This will be unlike the commercial treasury departments where portfolios of shares may well be found along with a range of other short term deposits.<BR><BR>I hope this helps. This has been asked before, and no doubt some students have found it a tough topic and perhaps blown it out of proportion with the course as a whole.<BR><BR>Sandy<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Statutory regulations on cash balances in the Public Sector

    Thanks Pete and Sandy - think I have what I need now. :)

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