Cash & Liquidity
Investment Portfolio Position
Surplus cash invested across institutions and instruments.
Why Investment Position Is Governed Tightly
Surplus public cash may only be invested in line with the MFMA Municipal Investment Regulations, which prioritise the preservation of capital and liquidity over yield and restrict the permitted instruments and counterparties. An over-concentrated or non-compliant investment portfolio exposes public funds to avoidable loss and is a finding the AGSA reports under cash and investment management. AuditPro Core presents surplus cash invested across institutions and instruments so concentration, compliance and liquidity are managed together.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Total Invested
R 528 m
▼ 14% YoY
Weighted Yield
8.4%
▲ 0.6 pts
Largest Counterparty
32%
concentration
Maturing < 90 Days
R 214 m
liquid
Invested Balance by Institution (R m)
Portfolio Detail
| Institution | Balance (R m) | Rate % | Maturity |
|---|---|---|---|
| Bank A | 168 | 8.6% | 32-day notice |
| Bank B | 142 | 8.5% | Call |
| Bank C | 108 | 8.3% | 12 months |
| Bank D | 66 | 8.1% | 6 months |
| CPD | 44 | 7.9% | Call |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Permitted investments
The Municipal Investment Regulations restrict investments to defined low-risk instruments and require an approved investment policy. Investing outside the permitted list is non-compliant regardless of the return offered.
Counterparty concentration
Spreading deposits across institutions limits the loss if one counterparty fails. A portfolio concentrated in a single bank carries concentration risk that the regulations and prudent practice seek to avoid.
Liquidity matching
Investment maturities should align with when the cash is needed for operations. Locking surplus into long maturities while creditors go unpaid defeats the purpose of holding the funds.
How AuditPro Core Bridges the Gap
- Reconciliation: the portfolio reconciles to the cash and investment ledger, confirming all invested funds are accounted for.
- Continuous monitoring: the position by institution and instrument is tracked so concentration and maturity profiles stay within policy.
- Exception workflow: investments breaching permitted instruments, counterparty limits or maturity policy are flagged for action.
- Audit-ready export: the portfolio position exports for the investments note and the compliance assessment against the Investment Regulations.
Key Takeaways
- Preservation of capital and liquidity rank above yield under the regulations.
- Only permitted instruments are allowed, whatever the return on offer.
- Spread deposits across counterparties to limit concentration risk.
- Match maturities to cash needs so funds are available when required.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.