Students

AFCP8050 – Corporate Treasury Management

2021 – Term 1, Special circumstances

Notice

As part of Phase 3 of our return to campus plan, most units will now run tutorials, seminars and other small group activities on campus, and most will keep an online version available to those students unable to return or those who choose to continue their studies online.

To check the availability of face-to-face and online activities for your unit, please go to timetable viewer. To check detailed information on unit assessments visit your unit's iLearn space or consult your unit convenor.

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Alison Belot
Contact via Email
Credit points Credit points
5
Prerequisites Prerequisites
ECFS867 or AFCP8004
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit aims to give students an insight into treasury management for non-financial corporations. It will examine cash forecasting and liquidity management, financing, financial risk management, and managing relationships with financial institutions, ratings agencies and within the business. We consider the issues confronting the treasurer today and the changing role of treasury in today's environment. A key focus is how treasury fits within the broader corporation, understanding how and why a corporate treasury differs from financial institutions, how it can add value to the corporation and work to support broader corporate objectives.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://students.mq.edu.au/important-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • ULO1: Analyse and explain the scope of corporate Treasury responsibilities and its role within the broader corporation, and how Treasury can support the business and add value to the corporation, both as an individual and a group.
  • ULO2: Identify and implement appropriate strategies to manage key treasury risks, including short term liquidity, interest rate, FX and commodity price risks for a variety of time horizons.
  • ULO3: Understand, apply and interpret appropriate Treasury management and funding techniques to ‘real world’ situations.
  • ULO4: Critically analyse the importance of appropriate systems and governance to protect the integrity of Treasury activities.

General Assessment Information

Information - Extension Requests / Penalties

Group Class Case Study (10%)

Students who do not attend receive a mark of zero. This penalty does not apply in cases where an application for Special Consideration has been made and approved.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration

 

Assignment (30%)

No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission incurs a 20% penalty). This penalty does not apply for cases in which an application for Special Consideration is made and approved.

Late submissions will be accepted up to 96 hours after the due date and time.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration

 

Final Exam (60%)

You are expected to present yourself for examination at the time and place designated in the relevant MAFC Timetable at https://www.mq.edu.au/about/about-the-university/faculties-and-departments/business/study-with-us/macquarie-applied-finance-centre/timetables.

Deferral of an examination is not permitted unless an application for Special Consideration is made and approved.

Students who do not attend receive a mark of zero. This penalty does not apply in cases where an application for Special Consideration has been made and approved.

Further information on submitting an Application for Special Consideration can be found at https://students.mq.edu.au/study/my-study-program/special-consideration

Assessment Tasks

Name Weighting Hurdle Due
Group Class Case Study 10% No Refer to iLearn
Assignment 30% No Refer to iLearn
Final Exam 60% No Refer to timetable

Group Class Case Study

Assessment Type 1: Participatory task
Indicative Time on Task 2: 0.00 hours
Due: Refer to iLearn
Weighting: 10%

Group case studies to be submitted during class, based on topics covered in class and notes.


On successful completion you will be able to:
  • Analyse and explain the scope of corporate Treasury responsibilities and its role within the broader corporation, and how Treasury can support the business and add value to the corporation, both as an individual and a group.
  • Identify and implement appropriate strategies to manage key treasury risks, including short term liquidity, interest rate, FX and commodity price risks for a variety of time horizons.
  • Understand, apply and interpret appropriate Treasury management and funding techniques to ‘real world’ situations.
  • Critically analyse the importance of appropriate systems and governance to protect the integrity of Treasury activities.

Assignment

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 11.00 hours
Due: Refer to iLearn
Weighting: 30%

An individual assignment of up to 3,500 words.


On successful completion you will be able to:
  • Analyse and explain the scope of corporate Treasury responsibilities and its role within the broader corporation, and how Treasury can support the business and add value to the corporation, both as an individual and a group.
  • Identify and implement appropriate strategies to manage key treasury risks, including short term liquidity, interest rate, FX and commodity price risks for a variety of time horizons.
  • Understand, apply and interpret appropriate Treasury management and funding techniques to ‘real world’ situations.
  • Critically analyse the importance of appropriate systems and governance to protect the integrity of Treasury activities.

Final Exam

Assessment Type 1: Examination
Indicative Time on Task 2: 20.00 hours
Due: Refer to timetable
Weighting: 60%

An individual closed book assessment that is 2 hours and 10 minutes.


On successful completion you will be able to:
  • Analyse and explain the scope of corporate Treasury responsibilities and its role within the broader corporation, and how Treasury can support the business and add value to the corporation, both as an individual and a group.
  • Identify and implement appropriate strategies to manage key treasury risks, including short term liquidity, interest rate, FX and commodity price risks for a variety of time horizons.
  • Understand, apply and interpret appropriate Treasury management and funding techniques to ‘real world’ situations.
  • Critically analyse the importance of appropriate systems and governance to protect the integrity of Treasury activities.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Learning Skills Unit for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

CLASSES

Timetable: Detailed timetable for classes are on the Centre’s website at https://mafcstudents.mq.edu.au/

Consultation Times:

Students who wish to contact any of the teaching staff may do so through:

  • The unit’s iLearn site, in relation to general queries (so that all students may benefit); or
  • Individual consultation with the lecturer by email in the first instance, if necessary.

 

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Text: Nil

Additional Readings: Unit notes and readings will be supplied, as well as case study materials for class discussion.

Lecture Notes: Available in printed form and electronically via iLearn.

Study Problems: Students are required to work systematically through suggested problem sets. These problems will not be collected but they will help you prepare for the exams. Answers to the problems will be handed out in class.

Pre-unit Materials: Pre-reading material is provided and must be read before class begins.

Useful References: Students should read financial press widely, and have a strong interest in corporate financial activity.

Calculators:

  • A basic calculator would be of assistance for the completion of in-class exercises.
  • In examinations, hand held calculators are permitted. Mobile phones and computers are not permitted.

Assumed Knowledge: Students are expected to be familiar with relevant material from the Financial Risk Management unit.

Assumed Access: Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy.

 

TECHNOLOGY USED AND REQUIRED

Unit iLearn Site:

  • Found by logging on to iLearn ilearn.mq.edu.au, then clicking on AFCP8050 Corporate Treasury Management.
  • This is where you will find forums, downloadable resources and links to important pages.
  • The forum allows you to communicate with other students and lecturer(s) and may provide supplementary material.
  • You are requested to post your questions on the forums at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Please try to not leave your questions to the last few days.

Laptops: A laptop per group would be beneficial to enable students to present the results of the in-class case study.

Notes: Additional subject notes may be distributed during classes to students attending (where relevant).

Important Notice:

  • It is important that you familiarise yourself with the unit’s iLearn site.
  • The lecturer will advise during the class about the distribution of material (such as additional notes, assignment, and case studies), that may appear on the unit's iLearn site, if relevant.
  • Students should check the unit’s iLearn site regularly (minimum twice a week and prior to all lectures) and look for updates and distribution of materials (including case studies) related to the unit or assessments and, if relevant, participate in forum discussions.

Unit Schedule

This course is intended to give students a working understanding of the day-to-day activities and issues facing a corporate Treasury. A general working knowledge of the corporate environment and current financial events would be beneficial. The knowledge of financial markets and instruments gained through the successful completion of the core subjects will be sufficient for students undertaking this subject.

 

1.    SHORT TERM CASH MANAGEMENT

Topics:

1.1    Producing an accurate cash flow forecast

1.2    Cash flow forecast exercise

1.3    Measuring and improving cash flow forecast accuracy

1.4    Bank account structuring, including pooling and sweeping

 

2.    BALANCE SHEET MANAGEMENT

Topics:

2.1    Debt vs equity

2.2    Equity

2.3    Debt

2.4    Working capital management

2.5    Long term cash flow forecasting and stress testing

2.6    Debt portfolio risk management

2.7    Case study – debt portfolio

2.8    Bond pricing 

2.9    Case study – local bond issue

2.10    Balance sheet management exercises

2.11    COVID 19

2.12   Case study

 

3.    MANAGING MARKET RISK

Topics:

3.1    Risk identification and quantification

3.2    Foreign exchange risk  management

3.3    Interest rate risk management

3.4    Commodities are different

3.5    Commodity price risk management

3.6    Credit risk management

3.7    Managing the risks of a bond issue

 

4.    MANAGING TREASURY RELATIONSHIPS

Topics:

4.1    Key external relationships

4.2    Relationship banks

4.3    Credit rating agencies

4.4    Debt investors

 

5.    SYSTEMS AND GOVERNANCE

Topics:

5.1    Creating a Treasury policy

5.2    The right control environment

5.3    When it all goes wrong

5.4    Impacts from the external environment

5.5    Treasury systems

5.6    Business continuity protocol

5.7    Information and dealing platforms

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to help you improve your marks and take control of your study.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Enquiry Service

For all student enquiries, visit Student Connect at ask.mq.edu.au

If you are a Global MBA student contact globalmba.support@mq.edu.au

Equity Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.