Financial Services

Treasury Management Policy

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Related Policies or legislation

The University of Western Australia Act 1911

Financial Services centrally provides treasury management services for the University.

Individual Business Units do not have the authority to undertake treasury activities on behalf of the University, without the explicit approval from the Director, Financial Services or higher authority.

Treasury Management activities include:

  • investment and management of University cash
  • foreign currency management
  • specialised banking services including bank guarantees and letters of credit.

University cash is managed to meet the short term operational and capital liquidity requirements of the University as well as for investment purposes. For further details on investment of cash, please refer to the Investment Policy Statement: University Policy 09/13.

To support the University's liquidity management and ensure cash available to meet disbursements, all Business Units are required to advise Treasury and Investments, Financial Services of expected material cash flows as follows:

  • Cash flows equal to or greater than $500,000: provide cash flow details at least 10 working days in advance.
  • Cash flows equal to or greater than $250,000: provide details of cash flow at least five working days in advance.

It is the University policy that all invoices should be raised in Australian dollars to avoid the risk of currency fluctuations. In the event a contract or activity is exposed to foreign currency, the University's foreign currency management requires as a general policy, all Business Units recognise and consider foreign currency risk.

The University provides guidelines on the management of foreign exchange transactions which recommend each Business Unit assesses all foreign exchange transaction exposures on an individual basis to determine the risk management approach, with all transactions with a base value of more than A$50,000 specifically considered for hedging. This is especially the case where there are significant individual project funding impacts associated with a potential movement in exchange rates.

For further information regarding University invoicing policy, please refer to Issuing an Invoice.

Other specialised banking services including bank guarantees and letters of credit are arranged on request by Financial Services with the assistance of the relevant area.

Policy statement

The University treasury management policy requires:

  • All University treasury management activities (excluding devolved operations) are undertaken centrally by Financial Services, unless explicit approval from the Director, Financial Services or higher authority has been obtained.
  • University treasury activities will be conducted under a dual-signatory basis unless circumstances support the explicit approval as a single-signatory activity. Single-signatory activities are generally not permitted and will only be approved in limited circumstances.
  • Financial Services invests cash balances under the Investment Policy Statement University Policy 09/13 and ensures that cash is available for payroll and other disbursements when needed.
  • To support the University's liquidity management and ensure cash available to meet disbursements, all Business Units are to advise Treasury and Investments, Financial Services of expected large cash flows.
  • To support the University's foreign currency management, all Business Units are to consider their management of foreign currency risk.