fundamentals of treasury practice 2015 · fundamentals of treasury practice 2015 page 4 6....

Fundamentals of Treasury Practice 2015

Department of Finance and Investment Management

Fundamentals of Treasury Practice 2015 Page 1

TABLE OF CONTENTS

1. PURPOSE OF THE PROGRAMME ...................................................................................................... 2

2. RULES OF ACCESS ............................................................................................................................. 2

3. CLOSING DATE FOR APPLICATIONS .................................................................................................. 2

4. SELECTION PROCESS ........................................................................................................................ 3

5. REGISTRATION AND FEES ................................................................................................................. 3

6. COMMENCEMENT OF LECTURES ..................................................................................................... 4

7. CURRICULUM ................................................................................................................................... 4

8. LECTURES AND PROGRAMME .......................................................................................................... 5

9. PRESCRIBED MATERIAL .................................................................................................................... 5

10. COMPOSITION OF MARKS ................................................................................................................ 5

11. APPLICATION PROCEDURES ............................................................................................................. 6

12. ENQUIRIES ........................................................................................................................................ 6

13. COURSE OUTCOMES AND ASSESSMENT CRITERIA .......................................................................... 8



1. PURPOSE OF THE PROGRAMME

The Fundamentals of Treasury Practice is a short learning programme with seven independent modules

covered during the course of a year. The purpose of this short learning programme is to provide the

student an opportunity to study in a field focused on Treasury Management. The student will then be

able to apply the knowledge learnt in their working career in treasury management. This programme

will broaden a student’s knowledge and skills in the area of treasury and cash management to ensure

efficient allocation of a company’s cash resources necessary to maintain on-going activities. Applicants

will be required to understand theoretical financial aspects of corporate treasury, while developing

practical and strategic insights into treasury and risk management.

Applicants will gain a solid foundation in operations of treasury markets in the Southern Africa

environment, global financial sectors and multinational companies. Major areas of focus are principles

and concepts corporate treasury management, the practical knowledge of financial instruments as well

as the tools to analyse and manage financial and operational risks.

2. RULES OF ACCESS

National Senior Certificate (NSC) obtained in 2008 or after, or Senior Certificate (SC) obtained prior to

2008.

Meeting the minimum admission requirements does not assure acceptance into the programme as all

applicants will be subjected to a selection process as determined by the Department of Finance and

Investment Management.

3. CLOSING DATE FOR APPLICATIONS

The closing date is 15 January 2015 for foreign (i.e. non-South African resident) applicants and for South

African resident applicants for study in 2015. All foreign applicants (i.e. international applicants) applying

should consult with the International Admissions Office at the University of Johannesburg on 011 559

4517 or visit www.uj.ac.za/international



4. SELECTION PROCESS

Prospective applicants that have not studied at the University of Johannesburg previously should also

complete a University of Johannesburg application form and pay the non-refundable 2015 application if

applicable. This is done online via the UJ

application link found on:

http://www.uj.ac.za/EN/StudyatUJ/Student

EnrolmentCentre/ApplicationProcess/Onlin

eWebApplication/Pages/Continuing-

Education-Programme-Extra-curricular-

Short-Course.aspx

Failure to submit all the required

documentation may result in your

application not being considered. All

prospective applicants will be subjected to

a selection process conditional to the rules of access.

5. REGISTRATION AND FEES

Registration details for the programme will be communicated to successful applicants in January 2015.

A registration deposit must be paid during registration each year. The exact cost of the programme will

be communicated in the acceptance letter.

The programme fees are R2 850 per module. Please note that this is only an indication as the fees for

2015 will be communicated to successful applicants in their acceptance letter.

The course fees excludes a 2015 non-refundable registration fee (annual fee), and a non-refundable ICT

levy (annual fee), as well as residence fees (annual fee if residing on campus) and prescribed textbooks.

Focused Treasury Management



6. COMMENCEMENT OF LECTURES

The Fundamentals of Treasury Practice Programme lectures will commence in February 2015. A time

table for the Fundamentals of Treasury Practice Programme will be sent to all applicants once they are

registered.

7. CURRICULUM

The Fundamentals of Treasury Practice is a short learning programme with seven independent modules.

It is presented over one year after working hours. Students are not required to complete all seven

modules, but can select which modules they wish to study. However, all seven modules will need to be

completed to complete the Fundamentals of Treasury Practice programme. All modules are 4 weeks in

duration. Each module has three classes, followed by an examination. Classes will be held once per week

on a Monday evening. Evening classes start at 17.30 and end at 20.00. Applicants have to pass the

modules they selected.

Modules:

Introduction to Treasury Management (Semester 1)

Processes in Treasury Management (Semester 1)

Cash and Liquidity in Treasury Management (Semester 1)

Financial Markets in Treasury Management (Semester 1)

Funding in Treasury Management (Semester 2)

Risk in Treasury Management (Semester 2)

Financial Treasury Management (Semester 2)

Detailed information of the course outcomes and assessment criteria are listed on page 8 – 11.



8. LECTURES AND PROGRAMME

Lectures will be presented by full-time academics and occasional guest lecturers. Lectures will

commence in February 2015. Successful applicants will be supplied with a detailed programme and

timetable once they have registered.

9. PRESCRIBED MATERIAL

The prescribed textbook for each module will be communicated to accepted applicants in January 2015

once they have registered.

10. COMPOSITION OF MARKS

Your studies are your responsibility. Although the lecturers share that responsibility with you, you will

determine how well or poorly you perform in each subject. You have to ensure that you prepare for, and

attend classes, make use of consulting hours and set up appointments to discuss subject matter that is

not clear, study and write assessments throughout the academic year.

Each module lecturer will publish their module mark calculation in the module work programme at the

commencement of the module on uLink and in the module work programme. Your final module mark

will be calculated as follows:

A module mark of at least 40% is required for admission to the last assessment opportunity

(examination)

Students that do not obtain a module mark of 40% and above, will not be allowed to write the

last assessment opportunity.

Module marks will count 50% towards the final mark

The final assessment will carry a weighting 50% towards the final module mark

A final mark for each module of 50% or above must be achieved to pass a module

A student passes a module with distinction if he/she obtains a final mark of at least 75%



Students will complete a number of assessments throughout the duration of each module. Assessments

may take the form of assignments and/or projects. A last assessment opportunity in the form of an

examination will be completed at the end of each module.

11. APPLICATION PROCEDURES

Please follow the following process to apply for the programme:

An application needs to be submitted to UJ, either via the Student Enrolment Centre (situated opposite

the library next to the A Block)

OR Online via

http://www.uj.ac.za/EN/StudyatUJ/StudentEnrolmentCentre/ApplicationProcess/OnlineWebApplication

/Pages/Continuing-Education-Programme-Extra-curricular-Short-Course.aspx

All prospective students that wish to apply to study this programme MUST submit the following

documents before the above deadlines:

Application forms

Certified copy of identity document (or passport if foreign student);

Certified copy of your Grade 12 (matric) certificate;

SAQA evaluations certificate if your highest academic qualification was not obtained in South

Africa.

12. ENQUIRIES

University of Johannesburg - Department of Finance and Investment

Queries related to the above content should be addressed to:

[email protected]

For general departmental information please consult the departmental website:

http://www.uj.ac.za/EN/Faculties/ecofin/fininvestman/Pages/default.aspx



Association of Corporate Treasurers of Southern Africa

Queries regarding the Association of Corporate Treasurers of Southern Africa should be addressed to:

Artemis Galatis on [email protected]

For general information regarding the Association of Corporate Treasurers of Southern Africa please

consult the ACTSA website: http://www.actsa.org.za/



13. COURSE OUTCOMES AND ASSESSMENT CRITERIA

Fundamentals of Treasury Practice

Brief description of course content

Topics covered

Module 1. Introduction to Treasury Management (Month Module)

Module 2. Processes in Treasury Management (Month Module)

Module 3. Cash and Liquidity in Treasury Management (Month Module)

Module 4. Financial Markets in Treasury Management (Month Module)

Module 5. Funding in Treasury Management (Month Module)

Module 6. Risk in Treasury Management (Month Module)

Module 7. Financial Treasury Management (Month Module)

Outcomes

Students will be able to:

Assessment criteria

Students will be competent if:

Module

1

• analyse the theories,

concepts, procedures and

structure of treasury

management in entities and

implement; and

• evaluate key calculations

necessary to understand the

exposure that financial

instruments have on the

financial structure of an

entity

• the goals of the treasury manager are explained;

• the functioning of a treasury market is analysed;

• the treasury management process is described;

• the nature and development of treasury

management is evaluated;

• the main roles of a treasury department and the

key concerns of managers when dealing with

working capital are described;

• the factors influencing the balancing of the

different types of debt in terms of maturity,

currency and interest rates are explained;

• simple financial problems related to treasury

management are solved;

• the structure of treasury management is

evaluated;

• the functions of a treasurer are described;

• the various banking services offered are

understood; and

• the steps involved in the competitive bid process

for bank selection is described.

2 • manage an entity’s Treasury

Operations and Capital

Structure in a commercial

• the key factors in managing an entity’s treasury

operations and contracts are analysed;

• the ability to identify and manage an entity’s key



environment including

managing processes,

operations and controls in a

treasury management

environment.

treasury exposures is demonstrated;

• bank term loans are understood and capital issues

of debt and equity securities are described;

• systems that reduce holdings of non-earning cash

balances to minimum levels are managed while

still providing adequate liquidity;

• technology to streamline the cash management

process is understood;

• domestic and international banking relationships

to support global cash management are described;

• an entity’s internal policies/processes and external

variables that impact cash management are

explained;

• the role of treasury operations in an international

or a local bank is described;

• several different treasury management systems,

their functions and features are explained;

• treasury policy and control is described and its

importance and elements are evaluated; and

• a treasury framework is understood and explained.

3 • describe and implement

cash and liquidity

management; and

• calculate the financial

instruments relevant to cash

and liquidity management in

a treasury management

environment

• a basic cash flow forecast is explained and

implemented;

• the steps involved in preparing a cash flow forecast

are understood;

• forecasting techniques are described and

preformed;

• the types of collection methods and strategies

within treasury management are explained;

• the need and purpose of planning, organising and

controlling of cash and borrowing by the means of

treasury management are described;

• both short- and long-term borrowed funds are

managed in a timely manner and at an acceptable

cost;

• credit facilities to fund corporate cash shortages

are evaluated and correctly explained;

• the link between corporate strategy and treasury

operations are described, and a basic corporate

strategy linked to a long term financial plan and

forecast can be developed;



• short-term interest bearing instruments are

described; and

• short-term interest bearing instruments are

calculated correctly.

4 • differentiate between

various financial markets;

and

• describe and calculate

financial market instruments

utilised in a treasury

management environment.

• various financial markets are clearly described;

• financial market instruments (in capital markets,

debt and equity markets, foreign exchange

markets) used in treasury management are

correctly calculated and implemented; and

• the factors affecting the various markets are

evaluated.

5 • explain, calculate and

evaluate funding options

and the linked financial

instruments in a treasury

management environment.

• working capital concepts and issues are explained;

• working capital is effectively managed;

• sources of short- and long-term financing are

identified;

• considerations of issuers and investors are

described;

• the factors of the forms of funding are evaluated

and the forms of funding are correctly utilised; and

• the financial instruments used to give effect to the

form of funding adopted are correctly calculated.

6 • describe and interpret risk

management techniques and

processes; and

• calculate the effect of risks in

treasury management.

• the concepts of risk, its processes, identification and

measurement, is correctly described and

implemented;

• methods how the treasurer might reduce risk for

the firm can be identified;

• the exposure to interest rate risk, foreign exchange

risk and other financial risks can be explained,

monitored and controlled;

• the financial risks facing organisations are assessed;

• the management principles for managing and

hedging liquidity risk, interest rate risk, foreign

exchange risk, and credit risk (including the use of

credit ratings) are described;

• the risk management processes are explained;

• the application of hedging techniques used in

corporates treasury operations is evaluated; and

• the financial instruments and strategies used to

manage risk are correctly identified, calculated and

interpreted.



7 • analyse the theories and

concepts, undertake the

management; and

• calculate the effects of

management strategies on

funding in treasury

management by the use of

financial management

principles.

• corporate valuations is performed and assessed;

• basic financial accounting and reporting in the

treasury management environment is understood;

• portfolio management theory is described and

implemented;

• the required organisational structure for treasury

operations within entities are analysed and

selected;

• recommendations to devise relevant policy and

objectives can be done;

• treasury performance is evaluated; and

• corporate cash is efficiently understood and

evaluated.

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