Treasury Administration Services

SA Government treasury administration services are only available to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals of the Treasurer of South Australia.

SAFA can provide a wide range of administration services relating to treasury and financial transactions, including:

  • Transaction management
  • Reporting
  • Settlements
  • Accounting

In addition to offering individual services, SAFA can provide a complete treasury outsourcing service. SAFA can manage client portfolios and associated treasury operations in line with policies approved by the client's management or Board.

Leasing

SAFA, in conjunction with the Department of Treasury and Finance, has developed Leasing Guidelines to assist governmental agencies in leasing decisions.

The leasing guidelines apply to agencies contemplating procurement via a leasing arrangement where the cost of the asset or group of assets to be acquired and/or the present value of the proposed lease payments exceeds $100,000.

For more information - Leasing Guidelines

SA Government Loans

South Australian Government Loan Products and Services are available only to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals from the Treasurer of South Australia.

SAFA Client Services staff are available to provide advice regarding these products, in order to fulfil clients' individual borrowing requirements.

Overdraft

The working capital facility is a liquid account with funds available same day. It is aimed at agencies with short-term, operational borrowing requirements. Clients are required to notify SAFA by 10.00am on any business day of their requirements to borrow funds or make repayments. Interest is based on SAFA's overnight borrowing rate and applied to the daily balance of the funds borrowed. Interest is accrued daily and payable monthly, by the 10th day of the following month.

Short Term Loans

Short-term loans are suitable for agencies who wish to borrow a set amount of funds for a known period, with the rate for the entire period known up front. Interest is calculated at the quoted fixed rate for the term of the loan and is typically paid at maturity, although more frequent payments can be made if required. The early repayment of a short-term loan will be calculated at prevailing market rates and may result in a break cost or gain to the client.

Interest Only Loans

Longer-term loans can be negotiated on an interest only basis, and are suitable for agencies who wish to borrow a set amount of funds for a known period, and make interest payments during the term of the loan, with the principal amount repaid at maturity. Clients may choose how frequently they wish to pay the interest, and the loan can be negotiated as a fixed rate for the term of the loan or as a floating rate which varies according to prevailing market rates.

Credit Foncier (principal and interest) Loans

Credit foncier loans are suitable for clients who wish to borrow funds for a known period of time, and make repayments of principal and interest during the term of the loan. Clients may choose how frequently they wish to make their repayments, and the loan can be negotiated as a fixed rate for the term of the loan or as a floating rate which varies according to prevailing market rates.

Structured Loans

SAFA can structure loans to suit the individual needs of clients, using a combination of SAFA's standard loan products.

Investment

South Australian Government Investment Products and Services are available only to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals from the Treasurer of South Australia.

SAFA can accept deposits and offer investment products to clients within the South Australian public sector under the Government Financing Authority Act 1982 and with the approval of the Treasurer of South Australia.

SAFA Client Services staff are available to provide advice regarding these products, in order to fulfil clients' individual investment requirements.

At Call Deposit

The At Call Deposit facility is a liquid cash account with funds available same day and provides a competitive return for short term cash surpluses. At Call Deposits are capital guaranteed with interest based on SAFA's overnight deposit rate and applied to the daily balance of the funds on deposit. Interest is accrued daily and payable on the first day of the following month.

SAFA Term Deposits

Term deposits are suitable for government clients who wish to nominate the term of their investment with the rate for the entire period known up front. Interest is calculated at the quoted fixed rate for the term of the deposit and is typically paid at maturity, although more frequent payments can be made if required. The early termination of a term deposit will be calculated at prevailing market rates and may result in a break cost or gain to the client.

Portfolio Management

Portfolio management services are only available to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals of the Treasurer of South Australia.

SAFA can provide a comprehensive portfolio management service for clients with borrowings or investments. We can manage a client portfolio in accordance with the policies approved by the client's management or Board.

In addition to managing the portfolio, SAFA can provide a comprehensive reporting and accounting service for the portfolio.

Foreign Exchange Hedging

The Treasurer of South Australia has issued instructions with regard to agencies managing their foreign exchange exposures (Treasurer's Instruction 23 - Management of Foreign Currency Exposures).

All public authorities as defined by the Public Finance and Audit Act 1987 are required to comply with the instruction, unless an exemption is obtained from the Treasurer.

SAFA assists agencies to assess their foreign currency exposures and implement an appropriate strategy to manage the exposure.

Interest Rate Derivatives

SA Government Interest rate derivative products and services are only available to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals of the Treasurer of South Australia.

SAFA offers a range of interest rate derivative products to assist agencies in managing their interest rate exposure. Agencies will require the Treasurer's approval before entering into derivative products.

Interest Rate Swaps

Interest rate swaps allow agencies to change the nature of their interest rate obligations by swapping them into fixed rates or floating rates with a different frequency.

Interest Rate Futures

Interest rate futures allow agencies to hedge interest rates for periods from one month to a number of years. Australian dollar interest rate futures contacts are traded on the Australian Securities Exchange (ASX).

Forward Rate Agreements (FRA)

A FRA allows agencies to hedge short-term interest rates, similar to interest rate futures. They have greater flexibility in terms of the dates that the hedge is required and the face value of the FRA.

Interest Rate Options

SA Government Interest rate derivative products and services are only available to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals of the Treasurer of South Australia.

SAFA offers a range of interest rate derivative products to assist agencies in managing their interest rate exposure. Agencies will require the Treasurer's approval before entering into derivative products.

Interest Rate Swaps

Interest rate swaps allow agencies to change the nature of their interest rate obligations by swapping them into fixed rates or floating rates with a different frequency.

Interest Rate Futures

Interest rate futures allow agencies to hedge interest rates for periods from one month to a number of years. Australian dollar interest rate futures contacts are traded on the Australian Securities Exchange (ASX).

Forward Rate Agreements (FRA)

A FRA allows agencies to hedge short-term interest rates, similar to interest rate futures. They have greater flexibility in terms of the dates that the hedge is required and the face value of the FRA.

Interest Rate Options

Interest rate options can be purchased to protect Clients against adverse movements in interest rates. They can be tailored to protect a short period of time or a longer period of time. In exchange for the protection, the Client is required to pay an upfront premium.

Financial Advisory Services

SA Government financial advisory services are available only to South Australian public sector agencies, within the confines of the Government Financing Authority Act 1982, and applicable approvals from the Treasurer of South Australia.

SAFA staff are available to provide an advisory role to government clients across a wide range of financial management issues, including:

  • Liability management
  • Investment management and asset allocation
  • Operating and finance leases
  • Treasury accounting
  • Portfolio risk reporting
  • Treasury policy
  • Structured financing

SAFA has participated in a number of government-wide projects requiring expertise in financial management and risk analysis.

For further information on SA Government Treasury Administration Services, contact SAFA's Client Services team, telephone (08) 8226 9441 .


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