Treasury reporting to the executive committee: the seven indicators that matter
A twelve-page treasury report does not get read. Seven indicators, one page, and one presentation rule: every figure must be tied to a possible decision. The full template, including the currency section.
A treasury report has one purpose: to prompt a decision. Any figure that can trigger no action does not belong in the document — it consumes attention and dilutes what matters.
The test to apply to every line of your report: « if this figure deteriorates by 20 %, what decision do we take? » With no answer, the line leaves the document.
The seven indicators
| Indicator | Definition | Decision it triggers |
|---|---|---|
| Net cash position | Cash + realisable investments − short-term financial debt | Funding or investment |
| Available cash at 13 weeks | The lowest point of the rolling forecast | Anticipating a facility, deferring an investment |
| Forecast vs actual variance, decomposed | Volume, timing and FX variances, separated | Action on collections, on sales or on hedging |
| DSO and DPO | Actual average collection and payment periods | Action on customer credit or supplier negotiation |
| Net exposure by currency | Unhedged net flows, by currency and by horizon | Putting on or adjusting a hedge |
| Realised hedge ratio | Share of exposure actually hedged, by horizon | Compliance with the policy, ratio trade-off |
| Realised average rate vs budget rate | Percentage gap on flows settled in the period | Price revision, briefing the CEO |
The one-page rule
A report fits on one page, with a structure that stays constant from month to month: figures at the top, variances in the middle, decisions requested at the bottom. Appendices exist, they are not read in the meeting, and that is entirely fine.
Consistency of format matters more than its elegance: a committee that finds the same lines in the same place reads the document in three minutes. A format that changes every month has to be rediscovered, and attention is spent on the form instead of the substance.
The section that makes the difference: decisions requested
This is the part almost no report contains, and the one that turns an information document into a steering tool. Three to five lines, each on the same pattern: the situation, the recommended option, what needs approval.
- « The cash low point in week 9 comes to EUR 380k. We propose deferring the machine deposit by three weeks. Approval requested. »
- « Net dollar exposure at six months reaches USD 1.4m, a hedge ratio of 48 % against the 70 % set by the policy. We propose hedging a further USD 300k. For information. »
- « The realised average rate is 2.3 % away from the budget rate, inside the alert zone set by the policy. No action proposed at this stage; review at the next closing. »
The currency section, in detail
Three lines are enough, and together they carry all the useful information:
- Net exposure by currency and by horizon bracket — 0-3 months, 3-6 months, 6-12 months. This is the snapshot of the risk.
- The realised hedge ratio per bracket, against the policy's target ratio. This is the compliance measure.
- The realised average rate on flows settled in the period, against the budget rate. This is the performance measure.
These three lines answer the three questions a CEO actually asks: am I exposed, did I do what we decided, and did it work.
What to take out of the report
- Balances account by account: that is management information, not steering information. It goes in the appendix.
- The detail of the period's FX transactions: absent an anomaly, it calls for no decision in committee.
- Market commentary: an executive committee does not have to arbitrate a view on EUR/USD, and offering one moves the discussion onto ground where it cannot be settled.
The last point is the one that lightens the document most. A treasury report is not a market note: it accounts for the execution of a policy, not for an opinion on the market.
FX reporting ready for the committee
ELEGG FX produces net exposure by currency, the hedge ratio and the market value of positions — the report's lines, with no reworking.
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Frequently asked questions
The questions finance departments ask most often on this topic
How often should a treasury report be produced?
Monthly for the executive committee, weekly internally for operational steering. The weekly document is a working tool for the finance team; the monthly one is a decision tool. Merging the two produces a report too detailed for the committee and too slow for the team.
Should FX positions be presented to the executive committee?
Not position by position, but three aggregates: net exposure by currency and horizon, the realised hedge ratio against the policy target, and the gap between realised average rate and budget rate. Those three lines answer the questions a committee actually asks, and leave the detail in the appendix.
Which treasury indicator matters most?
Available cash at the lowest point of the rolling 13-week forecast. Unlike today's balance, it says when a funding decision will have to be taken, and leaves time to take it on good terms rather than under pressure.
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