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Financial Management: Implementation of the Cash Management Improvement Act

  Premium   Download PDF Now (22 pages)
Report Type Reports and Testimonies
Report Date Jan. 8, 1996
Report No. AIMD-96-4
Subject
Summary:

The Cash Management Improvement Act seeks to promote equity in the exchange of funds between the federal government and the states. This legislation was enacted in response to allegations that states either drew cash advances well before federal funds were needed to make payments or used their own funds to satisfy federal program needs and were not reimbursed promptly by federal agencies. GAO found that the act has heightened awareness of cash management at both the state and federal levels. The Treasury Department, federal agencies, and the states have made substantial progress in implementing the act. By revising the act's regulations to streamline the process and by emphasizing the results of single audits as a way to oversee state activities and enforce the act's requirements, the Treasury's Financial Management Service should be able to improve the act's effectiveness and help alleviate any concerns about administrative burden.

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