The term cash management is an acronym for cash management, a system that manages money by assigning a value to the assets or liabilities of an entity.
The term “cash management” refers to the use of cash to make payments and to cover transactions that are required by law.
The government uses the term cash accounting for its financial statements.
While there is no uniform definition of what constitutes cash management (which is different for each jurisdiction), the government generally defines the term as a program that includes the following steps:1.
A cash management account or account management plan must have the following information: A written description of the organization’s cash management plan, including the cash management plans and other accounts for the accounts.2.
A copy of each cash management agreement or agreement between the organization and the bank, the financial institution or the custodian that holds the accounts, and any other documents that identify the account(s) or account(es) and the account or accounts in which the assets are or are not held.3.
An account history for each account.4.
A summary of the cash balances in the accounts and an estimate of how much each account has received.5.
A description of how the cash in the account will be used.6.
A record of the date of payment, when the account was opened, when and for how long the account has been in use, and the date the account is due to be paid.7.
An explanation of any fees, charges, or other costs associated with the account.8.
The names and addresses of the account holders, the account numbers, the date each account was closed, and a description of any associated documents.9.
A statement that the organization has taken all reasonable steps to ensure that the cash is held for its full value, including any additional fees, costs, and restrictions.10.
A declaration that the accounts are fully and fully liquidated and that the account management account is not available for any future use, including, for example, for collection or transfer purposes.11.
An estimate of the total cost of all outstanding accounts that will be closed by the end of the year.12.
A list of all account holders and the amount of the accounts held by each account holder.13.
A reconciliation of the amounts paid to each account for the current year and the accounts in the future years.14.
An agreement for the collection and transfer of all balances in all accounts in excess of $500,000.15.
An accounting plan for the organization.16.
A reference to the organization for all other types of account information.17.
The name and address of the agency that holds any of the funds held in the cash account.18.
The date the funds were used.19.
A breakdown of the amount held in each account and a statement of the balance of each account by amount.20.
The account number or account number and account number of each person who received an account, or the account number(s), of an account in the current or future year.21.
The balance of the person’s current account with the organization, including an explanation of the purpose for the account being closed.22.
The total amount held by the account holder(s).23.
The statement that any interest, penalties, or fees associated with account balances will be paid in full.24.
A report of any change in the organization or its financial condition.25.
The description of each program of the type and amount described in this subsection.26.
The amount of any interest that may be paid on any such account, including a description that the amount will be adjusted as the account balances decrease or decrease in value.27.
The summary of each transaction by the person to whom an account has or may have been used, or a description, such as “debt service,” “payment,” or “transfer.”28.
The list of current account balances, including their estimated amount and any balances that are not in current account account, and an explanation that the amounts will be increased as the accounts decrease in number.29.
A written statement that all account balances are accounted for and that no account has a greater amount of outstanding balance than the amount in the description provided for that account.30.
A separate report of all accounts held, including amounts held in excess, for any year.31.
The agreement for collection and the information that must be provided in order to make the account available for collection, such the collection agreement, payment agreement, or contract.32.
The accounts history, including information on any fees charged for account use.33.
The information required to be provided under the federal Consumer Financial Protection Act.34.
A listing of any account( and associated documentation) that are owned or controlled by a person other than the account owner.35.
A detailed description of a program or activity that involves the transfer of a principal amount of money from one account to another.36.
A notice that any outstanding account balances or the amount at which any account balances exceed