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ISSN 2063-5346
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THE TREASURY FUNCTION “DOTTED LINE” RELATIONSHIP AND “SOLID LINE” RELATIONSHIP TO OVERSEE THE CONTROLLER FUNCTION IN CHEMICAL COMPANY

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Ricky Martin Sitorus1 , Henri Wiliam Dani2 , Iskandar Muda3
» doi: 10.31838/ecb/2023.12.s1-B.434

Abstract

Chemical companies are companies involved in the production of chemical substances, including petrochemicals, agrochemicals, pharmaceuticals, polymers, paints, and oleochemicals. In carrying out their operations, of course, chemical companies have several functions that work together in achieving their goals. In a chemical company, there is one function, namely the treasury function. The treasury function is a financial function that is very important in companies, including chemical companies. One of its functions is to check whether the business's financial condition is healthy to be able to maintain its business continuity or not. In addition to the treasury function, there is also a control function in chemical companies that plays an important role in ensuring that financial resources are used effectively and efficiently. By identifying errors and taking corrective action, and ensuring that the company's financial objectives are met. Among the relationships between treasury and control in chemical companies. These two functions are also linked in a "dotted line" and "solid line" relationship in their respective functions in chemical companies. In chemical companies, the "dotted line" relationship between Treasury and Controller can be explained as a weaker relationship compared to the "solid line" relationship. Treasury and Controller have different responsibilities within the company. This "dotted line" relationship shows that Treasury and Controller have a looser relationship and are not too closely related to each other's responsibilities. Although both have different responsibilities, they still have to work together to achieve company goals. Whereas in the context of the relationship, "Solid Line" refers to the close relationship between Treasury and Controller. Treasury is responsible for managing the financial aspects of the company, including cash management, financial risk management, investment, and financing. Meanwhile, the Controller is responsible for ensuring the integrity of financial data, preparing financial reports, and maintaining compliance with accounting regulations. Strong cooperation between Treasury and Controller is essential in maintaining the company's financial balance. With effective cooperation between Treasury and Controller, companies can better achieve their financial goals. Treasury and Controller support each other in terms of risk management, cash flow monitoring, financial strategy determination, and fulfillment of legal and regulatory compliance.

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