EY Treasury Management Services

8/3/2019 EY Treasury Management Services

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Treasury managementPerformance-driven solutions



SummaryOrganization and governance 5

Performance assessments:

towards best practice 6

Financial risk management 8

Cash and liquidity management 9

Corporate funding 10

Financial instruments valuation

and accounting 11

Treasury technology 12

Assurance and control 13

Contacts 14



The evolving treasury function

A challenging contextThe demands on corporate treasury departments are subject to

constant change with, for instance, an increasing requirement of

shareholders for companies to demonstrate how financial

resources and financial risks are managed. These requirements forincreased transparency and control have led to a global trend

toward centralization of treasury activities. In addition, treasurers

need to cope with a growing complexity of financial instruments,

ever more volatile financial markets and the introduction of new

regulations and accounting practices. For treasury, this means that

you need to update continuously your know-how, to ensure

reduction of costs, minimize volatility, bring value to the company

and ensure short and expansive lines of communication.

Your goals — our missionWe will help you to define clearly the responsibilities of treasury

and to engage further in supporting the business. We have the

required know-how and expertise available for all the importanttopics of treasury (for example, cash and liquidity management,

financial risk management, accounting, system utilization). In

addition, we will confirm whether the internal control environment

of your treasury is in accordance with statutory requirements and

market practices.

More than ever, it is important to adopt an integrated holistic

approach instead of pursuing temporary solutions for individual

issues.

Our offerThe growing demands on the treasury function are driven to a

large extent by the current market situation. They are associatedwith a heightened awareness of management for operational and

financial risks, focused on the following themes:

• Improvement of cash-forecasting quality and methodologies for

liquidity management and financial planning

• Management of derivatives, market price and counterparty risks

• Accounting and valuation of all treasury transactions

In parallel, there is continual pressure to improve the efficiency of,

and control over, treasury.

Ernst & Young provides you with a portfolio of services that cover

the full scope of a treasury function. We have a knowledgeable

team, with the right combination of treasury skills and experienceto support your treasury through all types of challenges.

TopicsOur primary Treasury services cover the following areas:

• Treasury organization & governance

•Treasury performance assessments

• Financial risk management, (interest, FX, credit and commodity

risks)

• Cash and liquidity management including cash forecasting

• Corporate funding and capital management

• Treasury technology, including Treasury Management System

TMS selection and implementation

• Valuation and accounting for financial instruments (IFRS and

local GAAP)

• Audit, Quality assurance & compliance

Your benefits

• Integrated service offering

• Powerful, customized approaches• Rapid, sustainable knowledge transfer

• Solid process embedment

• Holistic perspective

• Profit from Ernst & Young’s global Treasury network and

multinational team

Which service offers you the competitive

advantage?

• Self Assessment using our proven analytical methodology

• Analysis of potential improvements, based on your current

situation

• Individual approaches to address any weaknesses identified

• Quick check of accounting policies and hedge relationships

Make an appointment and talk to us. We are happy to inform in

detail about how we can help you drive your treasury forward.

I m p l e men ta t i o n

P l a n n i n g

S trategy

Q

u a

l i t y

a s s u r a n c e

Treasury

management

Assurance& control

Treasurytechnology

Valuation &accounting

Corporatefunding

Cash - andliquiditymanagement

Financial riskmanagement

Performanceassessments

Organization& governance

3Ernst & Young Treasury management





Organization and governanceOrganization& governance



Cash - andliquidity

management

Corporatefunding


Treasurytechnology

Assurance& control


P l a n n i n

g

S trategy

Q u a

l i t y

a s s u r a n c e

Treasury

management

Choosing the right organizationWith the increasing importance of treasury,

companies must choose a robust and

dynamic organizational structure. In

particular, a well thought-out strategic,

forward-looking approach is essential. This

begins with choosing the right operating

model. In order to do this, the scope of

activities that are covered by the treasuryDepartment and the degree of

centralization must be determined. Does

treasury execute only the most necessary

activities such as liquidity management or

if treasury is determined a “core”

organizational process – does it cover the

full range of services? This must be taken

into account when designing the optimal

hierarchical structure of the central and/or

local treasury functions.

Reorganization and

transformationDue to changing circumstances, e.g,

transactions such as mergers and

acquisitions, carve outs, spin offs and as

part of reorganization projects such as

enterprise resource planning (ERP)

implementation and centralization of

treasury functionality, a reformulation of

the organizational structure, processes and

financial risk management is needed.

Our servicesUsing a gap analysis of your current

treasury structures compared with the

requirements according to your strategic

objectives, we make recommendations for

choosing the right organization and

optimizing the treasury function. This leads

to, inter alia, improved communication and

reporting processes and identifies process

duplication and redundancies.

We accompany you along the whole

process: from definition of objectives to

implementing a new or revised organization

of the governance structure and underlying

processes.

Current state analysis

• Analyzing the current state compared

with ”leading practices” and established

control requirements• Assessing the systems and

methodologies, focused on identification

of potential improvements

Future state development

• Defining the target organization given

the objectives, identifying leading

practices that are both fit for purpose

and focused on value optimization

• Defining, updating or standardizing

policies, processes and procedures for:

• Banking network (banking selection

and rationalization)• Cash management (pooling/ netting)

• Short- and medium-term financing

(e.g., factoring and securitization)

• Financial risk management (strategy

optimization)

• Treasury accounting

• Defining and adjustment of (key)

management indicators

• Selecting and implementing TMS(s)

• Defining roles and responsibilities, job

descriptions and provide assistance

towards recruitment and/or secondment

placement

Implementation support

• Project planning and management

(objectives, resources, milestones)

• Identifying and implementing “quick

wins”

• Assist with planning and implementation

of a rollout of the new global structure

• Additional organizational knowledge

through workshops covering operations,accounting, finance, legal, tax services

and information systems

• Interim staffing of operational or control

functions (when allowed)

Your benefits

• Realignment of the treasury to meet

current and future economic and

regulatory requirements

• Realization of potential synergies and

efficiencies by optimizing treasury

processes




Performance assessments:

towards best practicePerformanceassessments



Cash - andliquidity

management

Corporatefunding


Treasurytechnology

Assurance& control


P l a n n i n

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S trategy

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a s s u r a n c e

Treasury

management

Key factors Basics Developing Established Leading class

Policies and

procedures

Informal policies and procedures notdocumented.

High level policy statements setting out centraltreasury activities. Limited documentedguidance on local treasury activities andincomplete procedure documentation.

Well documented group treasury policy andprocedures. Limited policies and procedureson treasury activities in local business units.

Comprehensive policy document for grouptreasury and the business units.

Governance Treasurer or group FD responsible for allaspects of treasury. No compliance monitoringor internal audits.

Regular reporting to the board on treasuryactivities. Internal audits not performed bytreasury experts. Minimal compliancereporting.

Treasury compliance regularly monitored andreported to the board and/or the relevanttreasury/finance committees. Regular internalaudits using external treasury sprecialists.

Treasury activities monitored by and treasurystrategy approved by Board or boardsubcommittee. Regular internal audits bytreasury experts with treasury selfassessments.

Structure Decentralised treasury structure with localbusinesses responsible for managing their owntreasury activities. Little/no interactionbetween Group Treasury and Groupcompanies.

Centrally managed funding with businessesresponsible for managing local treasuryactivities. Some interaction between GroupTreasury and Group companies.

Centralised treasury with clear guidelinesgoverning any local treasury operations.Communication between group treasury andgroup companies on an informal basis.

Centralised treasury with all treasury activitymanaged by group t reasury (as far aspossible). Regular dialogue between grouptreasury and business units.

People and skills Treasury activities are performed by personnelwith little or not treasury experience. Treasuryusually performed by finance staff on parttime basis.

Dedicated treasurer with inexperiencedassistant(s) and support staff.

Experienced and established team withappropriate professional qualifications/qualified by experience in key positions. Goodknowledge of all aspects of treasury and of thecompany’s business.

Experienced and qualified professionals in allkey positions within treasury. Good knowledgeof treasury activities and experience ofworking in a multinational treasury function.

Treasury function maturity

Current state analysisOur performance assessment can be the

first step towards developing a risk-and

profit-oriented, comprehensive view of

your treasury activities. Based on our

treasury experience and peer comparison

in the market, we identify potential points

for improvement and further development

potential.The thorough investigation of structures

and processes and their comparison with

the legal framework and market practices

are the foundation of our treasury

advisory’s holistic approach.

Our servicesErnst & Young has developed a specific

framework for assessing functional

performance of a treasury department,

which is based on our global experience with

treasury organizations, regular treasury

projects and client surveys. In addition,

external benchmarks and guidelines are

taken into account, for example, from localAssociations of Corporate Treasury, IFRS7

and the local Corporate Governance Code.

The many facets of corporate treasury

require a practical and pragmatic

interpretation of relevant regulations, which

need to be considered in the broader context

of the complexity and risks of the company.

Taking into account external market trends,

as well as our extensive industry

experience, we have developed a compact

corporate treasury checklist that allows a

comprehensive benchmarking against

leading practices and provides a quick

insight into potential improvements.

In addition, the ”maturity” of the treasury

function is assessed compared with well-established, ”leading” treasury

organizations, while taking into account the

firm-specific characteristics.

6 Ernst & Young Treasury management



Company XYZ: Treasury management — Process Efciency — Maturity Assessment Dashboard

The main themes covered in a Treasury Assessment are:

• Treasury organization, strategy and systems

• Integration into the company’s strategy, rules and responsibilities

• Management of financial risks (e.g., interest rate, currency andcommodity risks)

• Liquidity and cash management

• Internal control

• Performance measurement

• Reporting

Your benefitsBased on the analysis, you receive an assessment of your treasury

organization compared with leading practices, with individual

recommendations for potential further improvements and

significant risks.

This assessment enables you to determine priorities and — if

applicable — define an action plan, for implementation


Weighted scores Maturity profile — Weighted

Dimensions Currentstate

Futurestate

Leadingpractice

Operational strategy 2.0 3.0 5.0

Process & policy 3.0 4.0 5.0

People &organization

2.0 3.5 5.0

Technology & data 3.5 4.0 5.0

Performancemanagement

3.0 3.0 5.0

Vertical maturityindex

3.0 3.5 5.0

Vertical maturityindex (%)

60.0% 70.0% 100.0%

Raw — Equal dimensions Maturity profile — Raw — Equal dimensions


Futurestate

Leadingpractice




2.0 3.0 5.0


Performance

management3.0 3.5 5.0

Vertical maturityindex

3.0 3.5 5.0


60.0% 70.0% 100.0%

Raw scores — Equal questions Maturity profile — Raw — Equal questions


Futurestate

Leadingpractice




2.0 3.0 5.0


Performancemanagement

3.0 3.5 5.0

Vertical maturity

index

3.5 4.0 5.0


70.0% 80.0% 100.0%



Financial risk management




Cash - andliquidity

management

Corporatefunding


Treasurytechnology

Assurance& control


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Treasury

management

Financial risk managementStrong market volatility, constant evolution

of the international accounting standards

and increasing importance of financial

reporting prompt companies to improve

regularly their financial risk knowledge and

to optimize its management. In this

environment identification of risk drivers

and exposures, definition of riskmanagement policy and implementation of

appropriate management tools,

communication lines and reporting are the

key means to enable effective financial risk

management.

Treasury and financial derivativesIn order to control financial risks, most

treasury departments, inter alia, use

financial derivatives. The hedging

strategies need to be aligned with the

overall objectives of the company, while

ensuring that valuation methods forderivatives do not lead to unwanted

volatility of profits. In addition, a consistent

separation of functions in risk management

and appropriate monitoring systems are

needed.

Major risksThe key financial risks that treasury needs

to identify, quantify, manage and monitor

are liquidity, FX, interest rate and

counterparty risks. An increasing number

of companies are also active in commodity

or energy risk management.

Our servicesBased on our extensive experience, we

provide advice and support for all elements

of financial risk management, for example:

• Identifying the main sources of financial

risk exposure and measuring the

company’s “natural” hedging

effectiveness

• Co-developing a strategy for financial riskmanagement within the group’s financial

supply chain

• Development and validation of models to

quantify and monitor financial risks,

including VaR, EaR, Gap and scenario

analysis

• Integration of more complex financial

products into your information systems

• Implementing appropriate (hedge)

accounting to reflect adequately the

(economic) exposures, including hedge

effectiveness testing• Develop appropriate reporting to enable

effective monitoring and steering of

financial risks by management

The financial crisis has demonstrated that

methods that seem to work in “normal

circumstances” may fail in the case of

major calamities. For example, a significant

interaction between market prices,

collateral demand, liquidity and credit

quality occurred. Therefore, the creation of

an overall corporate financial risk

framework is a central aspect of ourTreasury Advisory approach.

Your benefitsWe will assist in further developing and

strengthening the understanding of the

financial risk management strategies to

help you best achieve your business goals,

both economically and in terms of financial

reporting.

This includes an adequate organizational

structure and infrastructure (policies,

controls, processes, models, etc.) as well

as the development of methods and

processes for quantifying, assessing and

monitoring financial risks.

Together we will develop scenarios and

stress-testing methods, including

emergency plans that are tailored to your

company’s risk profile and classification so

that you are fully prepared to handle crisis

situations.


Identity Diagnose Design Deliver Sustain

K e y T a s k s • Analyze and comment on

current XYZ riskmanagement framework

• Understand and validatethe current state of XYZFX risk managementframework

• Analyze impact of FX riskmanagement frameworkon XYZ’s results

• Formulaterecommendations toimplement enhancedXYZ risk managementframework

• Post implementationanalysis ans sustainableimprovement plan

A c t i v i t i e s

• Understand XYZ businessstructure, economicmodel and transactionalflows

• Conduct FR risk exposureanalysis of XYZ FXporfolio

• Analyze current XYZ FXrisk management policyand hedging framework

• Analyze businessplanning schedule andcycle vs. FX risk forecastschedule and cycle andcomment on potentialimprovement

• Assess and validate thecurrent state of XYZ FXrisk managementframework

• Define criteria for itsevaluation andunderstand XYZ desiredfuture state

• Assess accountingschemes and impact ofFX risk managementframework on XYZ’sresult for both statutoryand managementreporting

• Identify Benchmarkcompetitors (MNC) interms of FX riskmanagement

• Set FX managementobjectives consideringlinkage withshareholders’ value

• Define XYZ’s FX risktolerance taking intoaccount XYZ’s businessdynamics

• Design/Enhance XYZ’sFX risk managementpolicy and hedgingframework

• Formulaterecommendations ofpotential benefits ofusing or not using hedgeaccounting

• Analyze impact on:

• SAP ECC 6.0 andSAP-FSCM

• SOX controlframework

• Develop the approachand requirements for theselected improvementsas stated in the new FXrisk management policy

• Design/Enhance the FXrisk management manual

• Validate the newlydesigned FX riskmanagement framework

• Analyze impact andredesign of FX riskmanagement frameworkon stratutory accounting,management reportingand SOX controlframework

• Support on FX riskManagement frameworkimplementation

• Confirm the newlydesigned FX riskmanagement frameworkis operating as intendedand capture lessonslearned (KPIs,performancemanagement reporting)

• Perform test of design toidentify performancegaps of the newlydesigned FX riskmanagement framework

• Implement an ongoingmonitoring program

• Identify furtheropportunities to extendthe benefits across theXYZ group



Cash and liquidity management

Cash - andliquidity

management




Corporatefunding


Treasurytechnology

Assurance& control


P l a n n i n

g

S trategy

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a s s u r a n c e

Treasury

management

Cash remains KingThe ability of companies to manage

liquidity and loans is scrutinized with ever

more attention by financial markets and

stakeholders. During the financial crisis,

the capacity of a firm to generate liquidity

has re-emerged as the priority. Treasury

plays a central role in monitoring liquidity

risks, setting up cash-flow forecasting andplanning and reporting on liquidity buffers,

relevant financial covenants and other

‘key-indicators’ for liquidity risk.

Stress tests are becoming increasingly

important to monitor potential liquidity

risks. These should reflect both company

specific and market-wide scenarios and are

based on historical market trends, while

also mapping hypothetical - but possible -

future business scenarios. Based on these

tests, liquidity constraints can be identified

to be taken into account in your planningand risk control.

Our servicesWe help you to focus and optimize the

methodologies for cash and liquidity

management and monitoring liquidity risks.

We will assist you to:

• Define a liquidity risk management

strategy, policy and procedures

• Review your company’s local, regional,

and global cash collection, disbursement

and bank account structure• Develop cash pooling solutions, ranging

from architecture and processes to the

request for proposal (RFP) and bank

shortlist

• Develop or review methodologies for

cash-flow forecasting and variance

analysis procedures

• Review or select systems and technology

used in the cash forecasting process

• Optimize the cash and liquidity

management processes and structures in

alignment with global tax strategies

• Assess and reorganize cash managementactivities (for instance, methodology to

implement shared service centers)

• Develop a framework for structured

monitoring of key indicators for liquidity

risk

• Enhance cooperation from local

management

Your benefitsWe are able to guide you through the

optimization of the financial resources of

your company (cash management and

funding) and detect the best path to followto ensure that cash is effectively managed.

We will assist you in assessing cash

forecasting reliability and process adequacy

as well as executing or designing an

adequate cash forecasting model.

In addition, we have the right knowledge to

assist you in securing your payments

means, more effectively leveraging on

Single Euro Payments Area (SEPA) and

other changes in the payments landscape.

50% of large companies

have not implemented

homogenized procedures

to forecast their cash

flows.

34% of companies do notanalyze the variances

between real cash flows

and forecasts

systematically, in order to

make the necessary

improvements.

Source: Ernst & Young European Treasury

Survey




Corporate funding

Corporatefunding




Cash - andliquidity

management


Treasurytechnology

Assurance& control


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management

Funding strategyIn today’s financial context with recurrent

liquidity tensions and increases in funding

costs, the control of liquidity risks is of

strategic importance to companies. Access

to a substantial and diverse ”pool” of

financing is a security interest, providing

companies with the flexibility to adjust their

financial strategy. Regulatory, legal, taxand accounting constraints complicate both

the assessment and the implementation of

financing solutions.

In this environment, the key factors to

success in the financing function of

treasury are:

• The definition of an optimal funding

strategy, to optimize financing costs

while at the same time minimizing

liquidity risks

• The set up of appropriate in-house

banking structures in a complex

regulatory and tax environment

• Effective bank and investor relationship

management

• Effective management of the financial

documentation supported by

management and control

Our servicesOur services cover the full range of

financing activities, from defining the

strategy to support in negotiating and

implementing a financing arrangement.

Define the financing strategy

• Identification of the medium and long

term financing needs

• Develop a methodology for forecasting

and monitoring financing needs and

financial covenants

• Practical examination of the borrower

and its group in terms of banking loans

and/or intra-group and concerning therecurrent and exceptional guarantees

granted to third parties

• Identification of the financing structures

diversity possibilities. For example, bond/

MTN issues, money market, open market

or syndicated banking credit/loan,

securitization, project financing, sale/

lease back and factoring

Negotiate financing

• Implement a ”call for tenders” / RFP

procedure, including the assistance in

preparing term sheets to supportnegotiations with banks

• Examination and negotiation, with the

assistance of legal advisors, of the

financing arrangements

• Second opinion on offered financing

arrangements, including pricing of

(embedded) derivatives and key

covenant implications

• Analysis of the implied credit risk of the

company, based on the credit spread

included in the financing arrangement

• Analysis and advisory on tax and/oraccounting operations treatments

Implementation support

• Assist with implementing the necessary

structures and teams to manage the

financing needs

• Set up an in-house bank, including a

transfer pricing policy for financial

instruments and guarantees

• Provide tax constraint management

while preserving an acceptableadministrative management level (e.g.,

withholding tax, interests’ deduction,

stamp duty and VAT)

Your benefits

• Appropriate structures, procedures and

systems to determine and manage the

financing strategy of the company

• A financing strategy which is tailored to

meet the organizational, legal,

regulatory, fiscal, contractual and

accounting constraints

• Support in reaching optimal financingcosts and appropriate diversification of

funding sources




Financial instruments

valuation and accounting





Cash - andliquidity

management

Corporatefunding

Treasurytechnology

Assurance& control


P l a n n i n

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a s s u r a n c e

Treasury

management

The solid base — or did you feel it

shaking, too?Reliable information is the basis of your

decisions. The valuation of your financial

instruments is, inter alia, the foundation for

measuring and managing risks and taking

strategic decisions. If this foundation is not

stable, the whole “building” is in danger.

Due to the volatility in the financial

markets, the assessment and valuation of

financial instruments has become more

complex. Counterparty and liquidity risks

have to be quantifiable components of your

risk assessments and valuations.

With the increasing use of derivative

instruments, it is important to keep the

accompanying, sometimes very complex,

accounting rules in mind to ensure that the

accounting results are in line with the

economic rationale of your hedging

strategy.

Our servicesFor Ernst & Young, valuation and

accounting are essential core

competencies. Our goal is to translate this

knowledge to add value to our clients. Our

support services can be divided here as

follows:

Valuation

• Valuation of complex financial

instruments, including embedded

derivatives and personnel options

• Modeling and valuation of complex

derivatives

• Quantification of credit risks/spreads and

impacts on valuation

• Valuation and hedging in illiquid markets

Accounting for financial

instrumentsWe assist you in applying the (hedge)

accounting provisions of IAS 39 or your

local GAAP, in particular:

• Preparation or review of your accounting

policy compared with leading practices

• Design and optimization of hedge

accounting procedures

• Measurement of hedge effectiveness

• Support in applying the de-recognitionrequirements so that a reliable

accounting of asset backed securities,

transactions, factoring, etc. is achieved

• Reviews of large portfolios

• Provide accounting advice for the

issuance of mezzanine capital, such as

convertible bonds, hybrid bonds

• Knowledge transfer and training to the

treasurers and relevant operating units

Finally, we support you in the application of

disclosures and risk assessment-related

information according to IFRS7.

Accounting for commodities and

energy derivatives

• Valuation of energy derivatives, such as

virtual power plants and modeling of

electricity spot prices (Hourly Price

Forward Curve)

• Application and interpretation of the

‘”own use exemption”

• Industry-specific features (energy andutilities sector)

• Hedge accounting for commodity

derivatives, including emission rights

Your benefits

• Experience in financial instruments and

valuation

• Skills for modeling and quantifying risks

and valuing derivatives

• Forward-looking statements by use of

various solid valuation methods




Treasury technology

Treasurytechnology




Cash - andliquidity

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Treasury

management

Technology: the core of treasuryTMS has a central role in the control

environment of treasury, as it provides

functionality for front, middle and back

office activities and controls, with a trend

toward ”straight-through-processing”. In

addition, the TMS provides the basis for

critical information such as forecasting,

valuation and reporting. It is thereforeessential to ensure that the system aligns

with the company’s requirements and is

adequately configured and implemented.

At the same time, the range of offers in the

software industry is becoming more and

more complex due to significant evolutions

in technologies and approaches. In the

current economic environment

characterized by the concentration of

vendors, IT solutions tend to widen their

scope of functionalities, covering needs

from market activities to cash managementas well as banking communication.

Our servicesSelecting a solution that fits your needs

Together with you we identify your treasury

organization’s current and future business

requirements. This analysis should not only

focus on functional requirements but also

on technical and vendor-related aspects.

Based on this analysis and our extensive

knowledge of the TMS market we provide:

• Advice on vendors to be considered in astructured selection process

• Support in development of a RFP, based

on existing ‘proven’ templates

• Management of the complete RFP

process, including vendor communication

• Advice on the vendor responses

• Facilitation of vendors demos, ”Proof-of-

concept” and/or reference visits

• Assistance with the preparation of the

cost/benefit analysis and business plan

Support and guidance in the

implementationTo ensure that IT systems quickly and

seamlessly fit into the business of your

treasury, we will guide you in the

implementation through:

• Overall program and/or project

management

• Conduct design workshops and prepare

design documents (blueprints)

• Define and configure static data

• Prototype instruments and unit test

• Define reporting requirements

• Reconcile static data

• Develop and perform testing programs

and scripts

• End-user training

In addition, we provide quality assurance

through all parts of the implementation

project.

Your benefits

• Optimal alignment of treasury

technology to your requirements

• Fast and efficient integration of systems

into the process

• Extensive TMS knowledge and provenmethodologies for system selections and

implementations

• Independence in choosing a system

provider

• Sustainable knowledge transfer

Forecasting system Risk management system Accounting system Repor ting system

Treasury Management System

Interest rate risk

FX risk

Credit risk

Commodity

Cash management

Liquidity management

Corporate finance

Treasury accounting

Back-office

Treasury control & reporting

Market data systems

Bank systems

Trading platforms

Confirmationsystems

• Strategicscope

P h a s e 0

P h a s e 1

Duration

P h a

s e 2

• Request for Information• Motivated long list

• Motivatedshort list

• Test agenda

• Final report withrecommendations

Analyse system integrationEY systemsknowledge base

Project startand planning

Finalreport

Demo‘s

Implementation /integration

Draw uptest agenda

Send, receive and assessRFI

Review:

• Determineselectioncriteria

• Draw uprequest forinformation

• Make long list




Assurance and controlAssurance

& controlOrganization& governance



Cash - andliquidity

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Treasurytechnology


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Treasury

management

Effective controlSeveral recent events remind us of the

importance for a company and its

shareholders to have an effective control

environment for its treasury activities.

The international accounting standards

(IFRS and FAS) and the obligation for

executives to report the internal control

framework (e.g., the Financial SecurityAgreement Law and the Sarbanes-Oxley

Act) have created an additional level of

compliance.

For a technical and ‘high risk’ function, such

as treasury management, specialized

assistance is often necessary to alert the

cash manager, the finance department or

the executive management about the main

challenges and to comfort their opinions

about the quality of the organization and

the internal control framework related to

cash, financing and risk management

activities. It is often necessary to reinforce

the internal teams of the company by

mobilizing competences and methodology

specifically developed for treasury

management control.

Key questions

• Are the objectives for treasury and

financial risk management clearly

defined?

• Are all financial risks of the group

identified and correctly measured?

• Is treasury management meeting its

objectives and does it respect the limits

and guidelines assigned to it?• Is the organizational set up satisfying and

are its procedures correctly documented

and implemented?

• Are the resources of the treasury

management department sufficiently

numerous, competent and independent?

• Is the reporting on treasury transactions

and positions relevant, exhaustive and

independently done?

• Are the methods used and the financial,

legal and fiscal risks related to derivative

instruments well understood, measured

and controlled?

Our servicesWe offer to share control and management

systems and methodologies, taking into

account the requirements for:

• Legislative/regulatory compliance

• Efficiency

• Efficacy

• Accountability

To this end, we perform a full review by

checking and analyzing the current state,

followed by recommendations for

optimization with regard to the statutory

requirements based on our experience of

leading practice.

Our services include support to the existing

internal audit units in the planning,

preparation, performance and reporting,

taking into account current and future

trends. The results are recommendations

for the development of an effective(continuous) monitoring control

environment, support for the

implementation of programs (such as

fraud prevention or SOX) and evaluation of

the implemented controls and efficiency.

Your benefits

• Assurances and advice focused on

minimizing operational risks and

identifying potential operational

improvements

• Compliance with relevant legislation

• Active use of your control framework toincrease efficiency and effectiveness of

processes




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United Kingdom Owen Purcell

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London SE1 2AF

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NO- OO51 Oslo

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Tel : +36 1 451 8795

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Ernst & Young Advisory Ltd.

Váci út 20

1132 Budapest Hungary

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