1.1 Corporate Structure and Treasury

The structure of an organisation—whether centralised, decentralised, or hybrid—has a direct impact on treasury operations and how they are accounted for . A centralised treasury function, where group treasury owns payment execution, approval routing, and reporting across all entities, offers better control and cost efficiency. A decentralised structure, where each entity manages its own treasury, offers flexibility and local expertise. A hybrid model combines group-level visibility with local execution, balancing control with flexibility. The choice of structure affects budgeting, forecasting, and the management of exposures .

1.2 Budgets and Forecasts in Treasury

Budgets and forecasts are essential tools for treasury planning and control. The ACT syllabus requires an understanding of “budgets and forecasts in treasury” as part of evaluating the impact of organisational structure . Treasury professionals must be able to prepare and analyse cash flow forecasts, budget for funding requirements, and assess the impact of different scenarios on the organisation’s financial position. These tools are critical for liquidity management, risk mitigation, and strategic decision-making.

1.3 The Importance of Cash and Currency Exposures

Effective treasury management requires a deep understanding of cash flows and currency exposures. Treasurers must identify, measure, and manage transaction, translation, and economic exposures arising from foreign currency activities . The organisational structure influences how these exposures are managed—centralised structures often enable better netting and risk consolidation, while decentralised structures may require more complex intercompany arrangements..