What Does a Treasury Manager Do?

Fund management is a general term for the planning, control, supervision, and evaluation of state-owned enterprise funds sources and use of funds by socialist countries. An important part of financial management. Fund management includes fixed fund management, working capital management and special fund management.

Money management

Investment decisions and plans, establishing the use and management of funds

The principles of Funds Management are: clear allocation of fixed funds, liquid funds,

(1) Improper fund-raising decisions, which lead to irrational or invalid financing of the capital structure, may lead to excessive funding costs or debt crisis for the enterprise.

(2) Mistakes in investment decisions, which lead to blind expansion or loss of development opportunities, may lead to the rupture of the capital chain or the inefficient use of funds.

(3) Irrational fund scheduling and poor operation may lead to financial distress or redundant funds.

(4) Strict control of funds activities may lead to embezzlement, embezzlement, flight, or fraud.

Market demand shrinks and corporate inventory increases

The global economic slowdown triggered by the financial crisis has slowed down, and investors' lack of confidence has caused

Weak awareness of fund management and inadequate management system

This case mainly introduces the plan for a commercial bank to build a three-dimensional fund monitoring system for a provincial telecommunications company, and reveals how a company can achieve highly centralized management and comprehensive monitoring of funds with the assistance of a commercial bank, and improve the efficiency of corporate funds operation In order to achieve the purpose of controlling financial risks, optimizing the capital structure, increasing capital returns, reducing capital costs, and increasing corporate value.

Money Management Case Background

After completing the acquisition of a domestic subsidiary, China Telecom Co., Ltd. (hereinafter referred to as China Telecom), in order to reduce the gap with the capital market requirements, strengthen the overall fund dispatching ability, implement refined capital operations, and establish a dynamic fund monitoring system, hope to adopt Establish a unified national fund management and control system, build a three-dimensional fund monitoring system, improve the provincial company's ability to control and control internal funds, achieve highly centralized management and comprehensive monitoring of funds, and improve the operational efficiency of corporate funds, so as to control financial risks, The purpose of optimizing the capital structure, increasing capital returns, reducing capital costs, and increasing corporate value. Since the first half of 2004, China Telecom has implemented step-by-step capital management and control projects at provincial-level companies, with provincial telecommunications as its core, and providing integrated and real-time funding information services for provincial telecommunications and city and state branches.

Fund Management Main Business

The main needs of a provincial telecommunications company (hereinafter referred to as a provincial telecommunications company) are:

1. Account management. All accounts belonging to a certain province's telecommunications are included in the system management, including timely reflection of account changes.

2. Collection of funds. Realize the end-of-day full-automatic collection of the provincial company's four-level income account funds for the city, county, and business halls, implement a zero balance account fund transfer, and reduce capital sedimentation. The fund collection process is as follows: the payer of the branch office, the payer of the county branch, the income account of the Douxian branch, the payer of the city company, the payer of the city company, and the designated account of the provincial company. Funds are allocated on a daily basis.

3. Fund transfer. Realize the day-to-day zero balance payment function of provincial companies to prefecture and city company and county company's expenditure accounts (cost households and engineering households), the control function of the periodic cumulative payment limit, and the automatic end-of-day collection function of the daily overdraft negative balance.

4. Real-time query of funds information. Through the direct connection with the banking system to centralize capital information, strengthen the analysis of capital inflows and outflows, analysis of operating capital efficiency, income return analysis, and liquidity risk analysis.

5. Dynamic monitoring of capital flows: Real-time grasp of information on accounts at all levels and capital inflows and outflows, and dynamic monitoring of account opening and large capital flows to reduce capital risks.

6. The system actively initiates fund allocation and allocation (mainly quota allocation) to realize the internal fund settlement function.

7. Provide the bank electronic statement to the financial system through the banking system, realize automatic reconciliation and generate accounting vouchers, reduce workload and error rate.

Schematic diagram of centralized fund management structure model

Fund Management Implementation Plan

According to the business needs of a certain province's telecommunications, the final formulation of the plan is to adopt corporate account overdraft + ordinary version of Bank-Enterprise Interconnection + Professional Edition Bank-Enterprise Interconnection three main product combinations to develop the project implementation plan.

(I) Account establishment

The provincial company opens a settlement account at the local Industrial and Commercial Bank of China, and simultaneously applies for the general version of the Bank-Enterprise Interconnection, the professional version of the Bank-Enterprise Interconnection, and the legal person account overdraft for the purpose of collecting income, allocating expenses, and handling other external settlement services (below the provincial company account bank (Referred to as the undertaking bank). Municipal companies, government agencies, county-level branches, and business offices open three income, cost, and engineering accounts with Industrial and Commercial Bank of China. The income account is used to store and allocate various types of income. This account is used for capital purposes. Control, that is, the funds in the account are transferred to the provincial company account, and ICBC assists in the management of no other payments; costs and engineering accounts are used to handle various payment services, and the account implements source control of the funds, that is, the funds are transferred from the company's headquarters account. In addition to the various fees paid and the refund service for external payment of this account, ICBC assisted in the management of not accepting other income payments, and applied for an account overdraft service at the same time. Account opening banks (hereinafter referred to as co-organizing banks) of telecommunication branches and business offices at all levels.

(2) Collection of income accounts

In the professional version of the Bank-Enterprise-Wale Union system, the automatic collection of income accounts is hierarchically set, and the full amount of funds is transferred (the minimum execution limit is 0 yuan).

(3) Cost and zero balance management of project households

The cost and engineering households adopt a zero balance management model of quota control + daytime overdraft + day-end zeroing.

1. Liquidation process. Accounts at all levels will be directly overdrawn when making external payments without exceeding the amount used in the current month. At the end of the day, the system will automatically liquidate all cost and engineering households that have incurred expenditures, and use the funds of the provincial-level company's comprehensive households to level up Fill in the day-to-day expenditures of the city and county-level companies so that the balance of all payment accounts of the city- and county-level companies ends at zero.

Day-end provincial company's comprehensive account balance = day-to-day balance-the amount of daily payments made by companies at all levels

2. Manage with funds. The amount of money used is a province's telecommunications company's zero balance cost for each branch and the payment control limit for engineering households. Based on this, the Industrial and Commercial Bank of China will set up an account overdraft for a province's telecommunications zero balance cost and engineering household payment. The prefecture-level telecommunications branch reports to the provincial telecommunications monthly payment amounts and project payment amounts according to the capital budget. The provincial company reviews and approves, and automatically transfers the payment limit adjustment table to the ordinary version of the online banking internal management system through the bank-enterprise interconnection interface. The undertaking bank and the assisting bank actively check the results of the examination and approval, and are responsible for adjusting and processing, and allocating quotas among the cost households and engineering households within their jurisdictions and county companies.

Fund Management Case Reviews

This case mainly uses bank products to design a reasonable account structure and fund dispatching route for the company, assisting the company to control the account balance and cash flow, and achieves the company's requirements for account setup, fund collection, and dynamic monitoring and management; through cash management consulting and The docking of bank products helps enterprises achieve the purpose of improving capital operation efficiency, reducing capital risk and saving capital cost.