Putting a treasury's policies and procedures into written form seems like a good idea, but not all treasuries have formal written policies to guide the various types of work they do, according to a survey by the Association for Financial Professionals.

The incidence of formal written policies varies widely by the type of activity, with investment management policies the most common. More than half (56%) of the 554 treasury practitioners AFP surveyed said their company has a formal written policy for investment management, while 20% said they have written guidelines or procedures for investing and 13% use unofficial operating standards or rules of thumb.

“Any time you're dealing with money, it's always good to have policies and procedures to be your backstop, well-documented procedures to make sure you're doing things correctly and they're reviewed by your auditors,” said Thomas Hunt, director of treasury services at AFP. Hunt described such policies as “a safety factor, something that you can fall back on and have confidence in, and that helps you when things get tough.”