Government Cash and Treasury Investment Management Training Course

Programme Summary

Government cash and treasury investment management is the subject of this five-day training course for public treasurers and finance directors at advanced level, culminating in a public funds investment policy and cash management plan for their own entity. Public bodies often hold idle balances across many accounts while borrowing elsewhere, or chase yield with funds needed within weeks. The approach moves from consolidating and forecasting cash to investment policy, instruments, risk control and reporting. Mars Training Centre UK delivers this programme in government cash and treasury investment management.

The Business Case

Losing public principal is a public failure, and so is leaving balances idle while the state pays interest on debt. A consolidated cash position, a reliable forecast and a written investment policy let a public body protect principal, meet every payment on time and earn a fair return on surplus funds.

• Idle Balances and Borrowing Cost: Fall as cash is pooled and surpluses are matched against funding needs.
• Investment Losses and Policy Breaches: Decline as permitted instruments, limits and counterparties are set in advance.
• Oversight Confidence: Rises as councils and audit bodies receive regular, transparent investment reports.

Principles and Evidence Base

• Safety, Liquidity and Yield: The priority order for public funds set out by the Government Finance Officers Association governs decisions from Session 3.
• Treasury Single Account: International Monetary Fund guidance on consolidating government cash shapes the account structure designed in Session 1.
• Active Government Cash Management: IMF guidance on forecasting, investing idle balances and coordinating with debt management frames Session 2.
• Written Public Investment Policy: A policy approved by the governing body sets objectives, instruments, limits and delegation in Session 3.

Intended Participants

• Leaders accountable for a public body's cash and investments.
• Managers who forecast cash flows and coordinate them with borrowing.
• Officers who place deposits, buy securities and manage bank relationships.
• Finance directors who report investment results to oversight bodies.

The programme serves ministries of finance, municipalities, public authorities and government-owned funds.

Learning Outcomes

1. Participants will be able to diagnose fragmentation and idle balances in a public body's cash position.
2. Participants will be able to construct a cash flow forecast that segments funds by liquidity horizon.
3. Participants will be able to design a public investment policy grounded in safety, liquidity and yield.
4. Participants will be able to evaluate instruments and counterparties for credit, rate and liquidity risk.
5. Participants will be able to prioritise controls over collateral, safekeeping and dealing authority.
6. Participants will be able to justify investment results to oversight bodies.

Programme Structure

Day 1: Consolidating Government Cash

Where is public money held, and why is it idle?

• Treasury Single Account Design and Coverage
• Bank Account Inventory and Rationalisation
• Cash Pooling and Sub-Accounts for Spending Units
• Banking Relationships, Service Agreements and Fees
• Roles of the Treasury, Central Bank and Commercial Banks

Day 2: Forecasting and Active Government Cash Management

How much cash is needed, when, and how much can be invested?

• Revenue and Expenditure Cash Flow Forecasting Methods
• Segmenting Funds: Liquidity, Core and Reserve Balances
• Cash Buffers and Contingency Liquidity
• Coordinating Cash Management With Public Debt Issuance
• Forecast Accuracy Tracking and Variance Review

Day 3: Public Investment Policy and Instruments

What may public funds be invested in, and on whose authority?

• Safety, Liquidity and Yield as a Decision Hierarchy
• Investment Policy Structure: Objectives, Delegation and Limits
• Permitted Instruments: Deposits, Treasury Bills, Government and Agency Bonds
• Money Market Funds and Investment Pools
• Ethical and Sharia-Compliant Investment Screens

Day 4: Treasury Investment Risk and Controls

How are principal and liquidity protected?

• Credit and Counterparty Limits and Rating Thresholds
• Interest Rate Risk: Maturity Ladders and Duration Targets
• Collateralisation of Public Deposits
• Safekeeping, Custody and Delivery-Versus-Payment Settlement
• Segregation of Duties and Dealing Authority Controls

Day 5: Applying the Government Treasury Investment Framework

Is the plan ready for approval?

• Applying Day 2 Fund Segments to the Day 3 Instrument List
• Setting Day 4 Limits for Each Fund Segment
• Benchmarks and Performance Measurement for Public Portfolios
• Investment Reporting to Councils, Boards and Audit Bodies
• Public Funds Investment Policy and Cash Management Plan Completion

Methodology

The programme is built around a structured exercise. Participants run the treasury of a fictional public authority over a simulated year, forecasting cash, investing and reporting as revenues slip and rates move. Cases from ministries, municipalities and a public utility show how liquidity needs and acceptable risk differ by entity.

• Suggested activity: Mapping a public body's bank accounts and estimating idle balances.
• Suggested activity: Building a maturity ladder for core funds within policy limits.
• Suggested activity: Presenting a quarterly investment report to a mock council.

Capstone Output

Each participant completes a public funds investment policy and cash management plan for their entity. It covers account structure, forecast method, fund segments, instruments, risk limits, controls and a reporting template, and is used to seek governing body approval.

Frequently Asked Questions

Is the government cash and treasury investment management programme suitable for municipal finance directors?

Yes. It is set at advanced level for central and local public treasurers, and assumes experience of public budgeting and banking.

Which frameworks does government cash and treasury investment management training rest on?

It rests on the safety, liquidity and yield order for public funds, IMF guidance on the Treasury Single Account and active cash management, and a written public investment policy.

How is the investment policy from the government treasury investment course used at work?

You can submit it to your governing body, use its limits to authorise dealing and adopt its reporting template.

How does government cash and treasury investment management differ from corporate treasury training?

Corporate treasury serves shareholders and commercial funding. Government treasury investment protects public money first, under public accountability, and coordinates with sovereign debt management.