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:<span style="color:#4B0082">'''''Don't put irrelevant numbers into reports'''''</span>
:<span style="color:#4B0082">'''''Scope of treasury reporting'''''</span>


:"Treasury's most important function is that it is able to give the Treasury Committee, and senior stakeholders comfort via regular monthly reporting  that Treasury is managing the company's exposures within the limits set by the Board.  
:"Treasury's most important function is that it is able to give the Treasury Committee, and senior stakeholders comfort via regular monthly reporting  that Treasury is managing the company's exposures within the limits set by the Board.  

Revision as of 02:03, 22 May 2024

1. Financial reporting.

Collating and publishing financial information.

For example, through a company's annual report and accounts.


Limitations of general purpose financial reports
"... general purpose financial reports do not and cannot provide all of the information that existing and potential investors, lenders and other creditors need.
Those users need to consider pertinent information from other sources, for example, general economic conditions and expectations, political events and political climate, and industry and company outlooks."
IFRS - Conceptual Framework.


2. Law - regulation - conduct.

Disclosure to relevant authorities about alleged or suspected breaches of law, regulation, rules of conduct, or similar guidance.


3. Risk - risk management.

The communication of risk and risk management outcomes for the purposes of comparing the results with the policy and the early identification of potential problems.


Scope of treasury reporting
"Treasury's most important function is that it is able to give the Treasury Committee, and senior stakeholders comfort via regular monthly reporting that Treasury is managing the company's exposures within the limits set by the Board.
Typically this will include the monitoring of headroom for going concern, to bank counterparty limits, and FX and Interest rate hedging exposures etc.
Other wider important reporting will be preparing annual debt covenant compliance certificates to external stakeholders who would typically include banks and credit rating agencies."
Tim Coope FCT, Head of Treasury, Interim, St James’s Place.


Don't put irrelevant numbers into reports
"Reporting should be purposeful. I always start designing of a report with a blank sheet of paper, divide it into squares and then write the questions I’m trying to answer in each square.
This avoids putting numbers in a report just because they are produced.


E.g. How is my liquidity going to change in the next 90 days? Key questions that each graph or table should tell the reader (1) What has changed? (2) Is it important? (3) Do I need to do anything?"
Robert Langley FCT, Director of Treasury Strategy, OSB Group.


Principles of reporting - BCBS
"The Basel Committee with the BCBS 239 standards defined the most important principles of reporting that any bank or company should follow.
In summary, it highlighted the importance of a thorough end to end process that included governance and infrastructure.
It presented the risk aggregating capabilities key values (accuracy and integrity, completeness, timeliness and adaptability) and outlined the principles of reporting practices (accuracy, comprehensiveness, clarity and usefulness, frequency and distribution)."
Dimitris Papathanasiou CFA, Treasury and Risk executive.


4. Information services - journalism - financial journalism.

In information services and journalism, reporting includes investigating, witnessing and verifying facts, as well as their selection, interpretation and presentation.

Providers of financial information include Bloomberg, IDC and Reuters.


5.

More broadly, collating and publishing any significant information.

For example, information relating to corporate social responsibility, including carbon reporting.


6.

More broadly still, any structured or unstructured communication about facts or alleged facts.


Risk assurance
"Reflecting back, it would have been useful to survey all interested parties to understand precisely what their priorities were.
Add to this any other metrics for effective treasury reporting.
Ultimately, it's about giving assurance whether we are on track versus defined risk appetite parameters."
Raj Gandhi FCT, former group treasurer and CFO.


And then what?
"The key question to ask for every report produced is: “… and then what?”
This question should be used as the filter for the efficacy and usefulness of the report produced.
If there are no good answers as to how the report will be used to make an impact, drive decisions, or shape specific outcomes - one should really change or drop it, and save time and effort."
Andre Khor FCT, Chief Financial Officer, Chandra Asri Group.


Advance the profession by sharing your story
"While there are many ‘traditional’ ways to consider reporting within the treasury function, it’s also important to think outside the box.


Increasingly, this means looking beyond pure financial reporting to include non-financial areas such as ESG and DEI.


Since reporting is about the provision (and consumption) of reliable business information, the concept also includes the sharing of treasury best practice and innovation.
This might be via treasury associations, conferences, webinars, podcasts, magazine articles, and more.


In fact, reporting on successes (and failures) is vital to the ongoing education of the treasury community.
As such, if you ever have the opportunity to share your story with other treasury professionals, consider it not only as an act of reporting with accuracy and balance around your project or career, but also of advancing the profession."
Eleanor Hill, Founder, The Treasury Storyteller.


See also


Other resource

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