General Electric, Microsoft and The City of Los Angeles beat a record number of submissions to win the three categories of the Association for Financial Professionals' 2009 Pinnacle Award, which annually recognizes excellence in treasury and finance. The Pinnacle Award is sponsored by Wells Fargo.
The Pinnacle Award is divided into three categories: Innovation, Risk Management and Strategy. Microsoft won for Innovation, General Electric for Risk Management, and the City of Los Angeles for Strategy. The organizations will receive their Pinnacle Award on October 4 at the 2009 Association for Financial Professionals Annual Conference in San Francisco.
The three category winners are eligible for the AFP Pinnacle Grand Prize, which will be announced at the October 4 ceremony. The Grand Prize Winner receives a $10,000 donation from Wells Fargo to the charity of its choice. Danny Peltz, Head of Wells Fargo Treasury Management, and Jim Kaitz, AFP President & CEO, will host the ceremony.
"AFP is extremely proud to honor the 2009 Pinnacle Award winners," said Kaitz. "General Electric, Microsoft and The City of Los Angeles used the incredible challenges of the past year as an opportunity to transform their treasury and finance operations-and lead the industry in the process."
Microsoft's global cash forecast initiative reduced approximately 12,000 employee hours per year across 250 subsidiary controllers. They also moved to bi-monthly funding, increasing cash in their investment portfolio by almost $500 million.
GE's treasury risk management team produced exposure reports that highlighted counterparty exposures over thresholds set by the risk team; evaluated secured and unsecured exposures compared to target levels; consolidated the liquidity profile of assets; underscored changes in exposures by product type/source; and broke out the maturity profile of exposures from derivatives. GE has used this tool to reduce and eliminate exposure to at-risk parties ahead of counterparty events.
City of Los Angeles
The Office of the Treasurer of Los Angeles updated its 30-year-old system and reduced unidentified deposits from 1,220 to less than 20 per month; automated general ledger posting, resulting in the reduction of 107 FTE hours per week; realized annual float savings of $1.13 million from implementation of four controlled disbursement accounts; and decreased compensating balances with an associated increase in return on investment of $4 million.
The Association for Financial Professionals (AFP) serves a network of more than 16,000 treasury and finance professionals. Headquartered in Bethesda, MD, AFP provides members with breaking news, economic research and data on the evolving world of treasury and finance, as well as world-class treasury certification programs, networking events, financial analytical tools, training, and public policy representation to legislators and regulators. AFP is the daily resource for treasury and finance professionals.
AFP's global reach extends to over 150,000 treasury and financial professionals worldwide, including AFP of Canada, AFP's gtnews, an on-line resource for the treasury and finance community, and the London-based bobsguide, a financial IT solutions network.