Current Cash Management Efforts within the Federal Government, Department of Defense and the Navy: Overview and Applications.

摘要

Among other economies, the Federal Government and its components can save millions of dollars annually in interest costs by implementing sound cash management principles. Cash management is simply getting the most out of the time value of money and the process of arranging finances to minimize the money borrowed and the interest arranging finances to minimize the money borrowed and the interest paid for it. The Federal Government's cash management program stresses three principles: (1) collecting money when it is due and depositing collections promptly; (2) paying bills and making disbursements when due, neither earlier nor later; and (3) minimizing idle cash balances. Within the Department of Defense and the Navy there is room for improvement in all three principles, but especially with regard to minimizing cash balances. Improvements in this area can be made by providing additional guidance to disbursing officers in computing cash requirements, retention of summary data from which cash forecasts can be made, education of money managers in the cash management field, and the further study of Economic Order Quantity (EOQ) models involving the management of cash. (Author)