Cash management touches every program, from how and when entities collect taxes, royalties and fees to how and when they pay suppliers, contractors, grant recipients and employees. Cash management requires forecasting when cash flows will occur to ensure cash is available when needed, to invest surplus cash at optimal returns, and to minimize debt, interest and administrative costs.
Objective and Scope
The objective of our audit was to assess if the Department of Treasury Board and Finance has efficient and economical cash management systems. We focused on disbursements systems, banking services and cash forecasting, which are integral components of cash management.
The Department of Treasury Board and Finance monitors and manages cash of the general revenue fund and the Consolidated Cash Investment Trust Fund. However, the department can do more to ensure cash management across the government as a whole is efficient and economical. While some improvements have been made to banking practices in recent years, there are significant opportunities to make cash management, banking practices and payment practices more efficient and economical.