What is a primary function of treasury management systems (TMS) in public agencies?

A primary function of treasury management systems (TMS) in public agencies is to facilitate the management of cash flows and investments. TMS helps organizations track and manage their cash resources efficiently, ensuring that there is adequate liquidity to meet obligations while optimizing the returns on investments. This function is crucial for maintaining financial stability and supporting strategic financial planning.

The TMS integrates various financial processes, which include cash forecasting, cash positioning, and investment monitoring. By providing real-time data and analytics, TMS allows agencies to make informed decisions regarding cash reserves and investment opportunities, thereby enhancing financial performance and accountability.

In contrast, minimizing employee costs, conducting on-site audits, and developing marketing strategies are not primary functions of a TMS. While these activities may be relevant to the overall operations of a public agency, they fall outside the specific scope of treasury management, which is primarily focused on the effective handling of financial resources.