Good governance is essential for any organisation. Nowhere is this more true than in the public sector, which requires proper structures and processes to provide transparency in the use of public funds.
Corporatisation of agencies and their subsidiaries means that public sector holding companies are increasingly responsible for the management of large cash reserves. Prudent investment of these funds returns value to the public, and it’s necessary that this be done in compliance with corporate investment guidelines.
Compliance rules, such as concentration limits and single-issuer limits, determine how investments are made. However, these rules mean nothing if they’re not followed.
In the area of borrowing, the public sector may look for alternatives and a lower cost of finances beyond the traditional source from the central government. Whilst cheaper, these tend to be short in duration, requiring more active management of repayment profiles. This impacts rating, which in turn affects borrowing capacity.
You can leverage the CS Lucas solution to support your compliance and funding requirements. Investment compliance rules are automatically checked to avoid unnecessary breaches. Any misappropriation is systematically reported, and this is fully auditable. We help you create a culture of greater accountability and transparency.
Our public sector clients have found the following modules to be useful:
Track portfolio investment with compliance rules
Cash and liquidity management
Working capital and medium-term financing
Short term company funding
Working capital management