The number of US corporate treasurers concerned about regulatory compliance increased from 5% in 2003 to more than 30% in 2004. Polled about the key issues they currently face, corporate Treasurers put regulatory compliance, primarily Sarbanes-Oxley, at the top of the list.
“This certainly reflects a strong trend we see with our corporate clients,” says Mike Gallanis, a principal with Treasury Strategies, a consultancy which conducted the survey. “There has been significant attention paid recently to Sarbanes-Oxley related programs – verifying or improving Treasury controls, documenting control procedures, and ensuring adequate and accurate Treasury reporting.”
Among survey respondents, 78% have Sarbanes-Oxley related projects underway or planned for 2004. “This issue is consuming a considerable portion of Treasury resources this year,” adds Gallanis, “and actually represents an opportunity for Treasurers to implement best practices.”
Other issues cited indicate a growing pressure to optimize the use of staff resources and corporate cash assets, specifically including financing and credit, the effective application of technology, identifying operating efficiencies, and effective working capital management. The challenge of managing cash on a global scale is also an issue growing in importance.
The survey also shows that staffing levels are remaining stable – this after several years of significant reductions. “What we saw in the specific comments about Treasurers’ key issues, and what we hear consistently from our corporate clients is that there is growing pressure to do more with less,” says Susan Skerritt, the Partner who leads Treasury Strategies’ Corporate practice. “In the context of the current regulatory environment, rapidly changing technology, constrained resources, and expanding complexity in financial management activities, Treasurers are facing a significant challenge to satisfy the demands placed on them.”
Treasury Strategies’ Corporate Treasury Management Survey polls CFOs and Treasurers annually to explore current issues and gather information about various strategic and tactical aspects of treasury.