Treasury Department

 Why Treasury Department?

Generally, there is one main reason why an organization needs to create a stand-alone treasury department = cash management complexity.   At a certain point during an organization's revenue growth, it's cash management functionality outgrows the Controller's group.  The catalyst for this increase in cash management complexity may be due to organic growth, merger(s) and/or acquisition(s).  It is at this point that it become more secure & efficient for organizations to develop a new, stand-alone treasury department.

Developing a Corporate Treasury Department - Five Key Considerations

Treasury Department Scope of Operations

Treasury Personnel & Hierarchy

Treasury Technology

Treasury Policies & Procedures

Treasury Internal Control

Treasury policies are the rules by which the treasury department will operate.   Treasury procedures are the step-by-step instructions as to how each treasury process will be conducted.  The treasury procedures will operate within the rules dictated by the treasury policies.

Are internal controls incorporated into the new treasury policies?  Treasury procedures?  Are there sufficient separation of duties amongst treasury personnel?  Are there sufficient separation of responsibilities amongst departments?   These questions (and more!) should be address when creating a new treasury department.