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Course Outline

Day 1: Core Principles of Cash Management and Daily Positioning

  • Foundational concepts in corporate cash management
  • Defined roles and accountability for cash management functions
  • Interdependencies among treasury, finance, accounting, procurement, and operational units
  • Distinguishing between profitability, cash flow, and liquidity
  • Analysis of cash inflows, outflows, and liquidity status
  • Basics of the cash conversion cycle
  • Components of operating, investing, and financing cash flows
  • Assessment of bank balances and available funds
  • Methodologies for establishing daily cash positions
  • Challenges associated with cash visibility
  • Reporting requirements for daily liquidity
  • Practical exercise: Preparation of daily cash position statements

Day 2: Cash-Flow Forecasting and Strategic Liquidity Planning

  • Essential elements of cash-flow forecasting
  • Application of direct and indirect forecasting techniques
  • Determining forecast horizons and planning intervals
  • Implementation of rolling forecasts and liquidity strategies
  • Prediction of customer receipts and operational disbursements
  • Forecasting debt obligations and capital expenditure
  • Strategies for mitigating forecast uncertainty
  • Utilization of scenario planning and sensitivity testing
  • Analysis of deviations between forecasts and actuals
  • Enhancing forecast precision and governance standards
  • Practical exercise: Construction of a 13-week cash-flow projection
  • Workshop focused on forecast variance analysis

Day 3: Working Capital Management and Internal Cash Optimization

  • Foundations of working capital administration
  • Optimization of receivables, payables, and inventory levels
  • Metric analysis of Days Sales Outstanding (DSO)
  • Metric analysis of Days Payable Outstanding (DPO)
  • Evaluation of Inventory Holding Days
  • Detailed analysis of the cash conversion cycle
  • Enhancing collection processes and invoicing efficiency
  • Management protocols for delinquent receivables
  • Strategic approaches to supplier payment schedules
  • Evaluation of incentives for early payment
  • Techniques for inventory efficiency
  • Coordination of cross-functional working capital initiatives
  • Practical exercise: Comprehensive working capital analysis
  • Group activity: Development of improvement strategies

Day 4: Banking Relationships, Payment Systems, Funding, and Cash Concentration

  • Administration of corporate banking accounts
  • Management of institutional banking relationships
  • Review of bank fees and service terms
  • Overview of domestic and international payment mechanisms
  • Controls for payment approval and authorization
  • Protocols for fraud prevention and payment security
  • Implementation of segregation of duties and internal controls
  • Structures for cash concentration and pooling
  • Mechanisms for zero balancing and target balancing
  • Arrangements for intercompany funding
  • Options for short-term capital acquisition
  • Utilization of overdrafts, revolving credit, and loans
  • Allocation of short-term investments and deposits
  • Practical exercise: Comparative analysis of funding sources
  • Case study on preventing payment fraud

Day 5: Cash Risk Management, Reporting, Technology, and Continuous Improvement

  • Management of liquidity and funding risks
  • Assessment of counterparty and banking risks
  • Identification of operational and payment-related risks
  • Mitigation of interest-rate and foreign exchange exposure
  • Role of treasury technology and cash management platforms
  • Integration of bank portals and treasury management systems
  • Automation of reconciliation and reporting processes
  • Development of cash management dashboards and performance indicators
  • Formulation of policies and governance frameworks
  • Standards for management reporting and liquidity disclosure
  • Comprehensive case study on integrated cash management
  • Planning for continuous cash management enhancements
  • Final evaluation and participant presentations

Requirements

Participants are recommended to possess the following:

  • A foundational understanding of finance, accounting, or treasury functions.
  • Familiarity with financial statements and cash flow principles.
  • Experience in finance, accounting, treasury, budgeting, or related public sector roles is advantageous but not required.
  • Basic proficiency in spreadsheet software for forecasting and analytical exercises.
 35 Hours

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