There are no prerequisites.

Course Description

The treasury function administers the financial holdings and obligations of an organization. This is a major task in an organization that has millions or even billions of dollars in cash and investments, receivables, payables, and debt. Even in a smaller organization, these tasks are essential to the ability of a business to continue in operation. Consequently, though treasury is an administrative function, it is still one of the most vital parts of a business.

The treasurer is responsible for a broad range of activities, which include bank relations, cash forecasting, investments, fund raising, risk management, and even insurance. These are critical, high-risk activities, so the treasurer must also have a detailed knowledge of processes, controls, and treasury management systems. The Treasurer's Guidebook addresses all of these topics and more, with the intent of giving a new treasurer a solid grounding in how to perform the job.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Dec 18, 2017
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Recognize the responsibilities of the treasury function.
  • Cite the circumstances under which local treasury expertise is needed.
  • Note the activities of the different parts of the treasury department.

Chapter 2

  • Note the different types of bank fees.
  • Identify the circumstances that could trigger a credit assessment.

Chapter 3

  • Note the benefits of a cash concentration system.
  • Recognize the effects of a threshold cash sweep.
  • Recognize how notional pooling functions.
  • Identify the circumstances under which multi-tiered banking is used.
  • Identify the type of cash pooling that works best when managers want local control.

Chapter 4

  • Note the methods and adjustments used to develop a cash forecast, and why a cash forecast reconciliation is used.

Chapter 5

  • Identify the need for a correspondent bank.
  • Recognize the different types of settlement systems.

Chapter 6

  • Note the different types of investment strategies.
  • Recognize the characteristics of the different types of investments.
  • Identify the reasons why a secondary market is needed.

Chapter 7

  • Identify the circumstances under which exemptions can be used to raise capital, and the requirements of each one.

Chapter 8

  • Cite the terms used for factoring and hard money deals.

Chapter 9

  • Note the circumstances under which a supply chain financing offer would be accepted.

Chapter 10

  • Identify the types of hedging transactions that can be used to mitigate risk, note the terms of hedging contracts, and recognize when risk mitigation is not needed.

Chapter 11

  • Recognize the types of insurance sales channels.
  • Note the methods used to review the financial condition of insurers.
  • Cite the terms included in insurance contracts, and their effects.
  • Identify the benefits and coverage characteristics of the different types of insurance.
  • Recognize the methods used to reduce the cost of insurance.

Chapter 12

  • Note the documentation typically used in a credit review.
  • Recognize the uses to which a credit policy can be put.
  • Identify the characteristics of a high-quality credit rating system, and when it works best.
  • Cite the indicators of possible future payment delinquencies.

Chapter 13

  • Identify the actions needed to achieve zero working capital.

Chapter 14

  • Note the accounting required for the different investment activities, as well as the accounting for impairment losses, and why investments are assigned to different classifications.
  • Note the accounting required for hedging transactions, the types of hedges, and the characteristics of a highly effective hedge.

Chapter 15

  • Recognize the costs and advantages of a treasury management system.

Chapter 16

  • Identify the controls for cash forecasting, investments, debt, and stock issuances.

Chapter 17

  • Recognize the formulas for turnover measurements, investment returns, and the ability to pay.

Table of Contents

Chapter 1 – Treasury Management

Learning Objectives


Treasury Responsibilities

Treasurer Job Description

Treasury Organizational Structure

Treasury Centralization

Treasury Outsourcing

The Performance Culture

Schedule of Activities

Process Reviews

Department Layout

Skills Review and Training


Chapter 1 – Review Questions

Chapter 2 – Bank Relations

Learning Objectives


Bank Centralization

Banker Dialog

Frequency of Reporting

Bank Fees

Loan Covenants


Account Signers

Credit Assessment

Causes for Change


Chapter 2 – Review Questions

Chapter 3 – Cash Concentration

Learning Objectives


The Need for Cash Concentration

Cash Sweeping

The Zero Balance Account

Multiple Sweep Arrangements

Manual Sweeping

Sweeping Rules

Sweep Problems

Sweep Costs


Notional Pooling

Notional Pooling Problems

Notional Pooling Costs


Multi-Tiered Banking

Hybrid Pooling Solutions

Cash Concentration Best Practices

Cash Concentration Alternatives


Chapter 3 – Review Questions

Chapter 4 – Cash Forecasting

Learning Objectives


The Cash Forecast

The Short-Term Cash Forecast

The Medium-Term Cash Forecast

The Long-Term Cash Forecast

The Use of Averages

Automated Cash Forecasting

The Reliability of Cash Flow Information

The Impact of Special Events

Cash Forecasting Documentation

The Foreign Currency Cash Forecast

Cash Forecast Reconciliation


Chapter 4 – Review Questions

Chapter 5 – Clearing and Settlement Systems

Learning Objectives


The Clearing and Settlement Process

Correspondent Banks

Check Clearing

Foreign Check Clearing

The Automated Clearing House System (ACH)





Continuous Linked Settlement



Chapter 5 – Review Questions

Chapter 6 – Investment Management

Learning Objectives


Investment Guidelines

Cash Availability Scenarios

Investment Strategy

Types of Investments

Repurchase Agreements

Time Deposits

Certificates of Deposit

Bankers’ Acceptances

Commercial Paper

Money Market Funds

U.S. Government Debt Instruments

State and Local Government Debt


The Primary and Secondary Markets

The Discounted Investment Formula


Chapter 6 – Review Questions

Chapter 7 – Equity Financing

Learning Objectives


Regulation A Stock Sales

Solicitations of Interest

Forms 1-A and 2-A

Regulation D Stock Sales

Regulation D Rules

Regulation D Process Flow

The Form D Filing

The Accredited Investor

Private Investments in Public Equity

Seasoned Equity Offerings

The Rights Offering



Chapter 7 – Review Questions

Chapter 8 – Debt Financing

Learning Objectives


Overview of Debt Financing

The Line of Credit

The Borrowing Base

Invoice Discounting


Receivables Securitization

Inventory Financing

Loan Stock

Purchase Order Financing

Hard Money Loans

Mezzanine Financing

The Long-Term Loan


Debt for Equity Swaps


Chapter 8 – Review Questions

Chapter 9 – Supply Chain Financing

Learning Objectives


Supply Chain Financing

Early Payment Discounts


Chapter 9 – Review Questions

Chapter 10 – Treasury Risk Management

Learning Objectives


Benefits of Risk Management

Funding Risk

Credit Policy Risk

Credit Exposure Risk

Terms Alterations

Receivables Financing

Outside Financing

Portfolio Approach to Risk

Cross-Selling Credit Exposure Risk

Credit Concentration Risk

Foreign Exchange Risk Overview

Foreign Exchange Risk Management

Take No Action

Avoid Risk

Shift Risk

Time Compression

Payment Leading and Lagging

Build Reserves

Maintain Local Reserves



Types of Foreign Exchange Hedges

Loan Denominated in a Foreign Currency

The Forward Contract

The Futures Contract

The Currency Option

The Cylinder Option



Interest Risk Overview

Interest Rate Risk Management

Take No Action

Avoid Risk

Asset and Liability Matching


Types of Interest Rate Hedges

The Forward Rate Agreement

Relevant FRA Dates

The Futures Contract

The Interest Rate Swap

Interest Rate Options

Interest Rate Swaptions


Chapter 10 – Review Questions

Chapter 11 – Insurance

Learning Objectives


Insurance Distribution

Insurance Policy Terms and Conditions



Limit of Insurance



Insurance Riders



Who is the Payee?

Insurance Company Analysis

Insurer Financial Performance

Boiler and Machinery Insurance

Business Interruption Insurance

Policy Inclusions

Additional Coverages

Management Actions

Commercial Automobile Insurance

Commercial Crime Insurance

Commercial General Liability Insurance

Coverage Limitations

Umbrella Coverage

Credit Insurance

Directors and Officers Liability Insurance

Management Actions

Additional Coverages

Inland Marine Insurance

Life Insurance

Property Insurance

Types of Property

Policy Inclusions

Policy Exclusions

Additional Coverages

Coverage Limitations

Valuation Issues

Management Actions

Surety Bonds

Surplus Lines Insurance

Managing the Cost of Insurance

Broker Training

Odds Analysis

Insurer Messaging

Covered Items Analysis

Double Coverage Analysis

Split Limits Elimination

Continual Policy Updates

Unlikely Rider Payouts


Deductibles Analysis

Small Claims Avoidance

Self-Funded Insurance

Captive Insurance Company

Insurance Claims Administration


Chapter 11 – Review Questions

Chapter 12 – Credit Management

Learning Objectives


Overview of the Credit Policy

Credit Policy: Mission

Credit Policy: Goals

Credit Policy: Responsibilities

Credit Policy: Required Documentation

Credit Policy: Review Frequency

Credit Policy: Credit Calculation

Credit Policy: Terms of Sale

Credit Policy: Revision Frequency

The Credit Application

Adjustments to the Credit Application

Trade References

Updating the Credit Application

The Credit Rating

Internal Credit Rating Systems

Third Party Credit Ratings

Use of Credit Ratings

Credit Rating Errors

Credit Documentation

Indicators of Future Payment Delinquency

Ongoing Credit Monitoring Actions

Requests for Credit Increases

The Riskiest Customers


Chapter 12 – Review Questions

Chapter 13 – Working Capital Management

Learning Objectives


The Nature of Working Capital

The Importance of Working Capital

The Optimum Amount of Working Capital

Zero Working Capital

Working Capital for a Growing Business

Working Capital for a Declining Business

Responsibility for Working Capital

The Receivables Component of Working Capital

Receivables Strategy

Inventory Strategy

Replenishment Strategy

Fulfillment Strategy

Customization Strategy

Startup Outsourcing Strategy

Payables Strategy


Chapter 13 – Review Questions

Chapter 14 – Accounting for Treasury Transactions

Learning Objectives


Other Comprehensive Income

Investment Classifications

The Realized and Unrealized Gain or Loss

Purchase and Sale of Investments

The Gain or Loss Calculation

Noncash Acquisition of Securities

Assignment of Costs to Securities

Lump-Sum Purchases

Restricted Stock

Conversion of Securities

Sale of Securities

Accounting for Dividends and Interest Income

Stock Dividends and Stock Splits

Noncash Dividends

Ongoing Accounting for Investments

Investment Transfers

The Effective Interest Method

Impairment of Investments

What is a Derivative?

Hedge Accounting - General

Hedge Accounting – Fair Value Hedges

Hedge Accounting – Cash Flow Hedges

Accounting for Insurance

Insurance Payments

Claims Receipts


Chapter 14 – Review Questions

Chapter 15 – Treasury Management Systems

Learning Objectives


Components of a Treasury Management System

Advantages of a Treasury Management System

Disadvantages of a Treasury Management System

Additional TMS Considerations

Data Feeds


Chapter 15 – Review Questions

Chapter 16 – Treasury Controls

Learning Objectives


The Cash Forecasting Controls Environment

The Funds Investment Control Environment

The Foreign Exchange Hedge Control Environment

The Debt Procurement Control Environment

The Stock Issuance Control Environment

Additional Treasury Controls – Fraud Related

Terminating Controls


Chapter 16 – Review Questions

Chapter 17 – Treasury Measurements

Learning Objectives


Treasury Metrics

Cash Conversion Cycle

Days Sales in Accounts Receivable

Days Sales in Inventory

Days Payables Outstanding

Actual Cash Position versus Forecast

Earnings on Invested Funds

Ability to Pay Measurements

Interest Coverage Ratio

Debt Service Coverage Ratio

Fixed Charge Coverage Ratio

Cash Coverage Ratio

Debt to Equity Ratio

Average Cost of Debt

Borrowing Base Usage

Additional Treasury Measurements


Chapter 17 – Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation

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