Cash Management in the US Accounting Systems

  • Steve Modlin
Living reference work entry



Cash management is the proper utilization and management of government funds in order to provide maximum levels of interrupted service in conjunction with the maintenance of substantial reserves which are continually accruing interests.


Maintaining an adequate cash flow is vital to sustaining government services at all levels of government. The most notable expected expenses are in the forms of salaries and benefits, but additional expenses in the form of facility maintenance, equipment purchase and repair, and various types of insurance including health care, lawsuits, and risk assessment liabilities are included as well. Unfunded liabilities associated with retirements are emerging as a major funding problem for many local governments.

These factor points not only illustrate the need for a sound cash management policy, but a policy which has support components that...

This is a preview of subscription content, log in to check access.


  1. Coe CK (2007) Government and nonprofit financial management. Management Concepts, ViennaGoogle Scholar
  2. Larson MC (2004) Cash and investment management. In: Aronson JR, Schwartz E (eds) Management policies in local government finance, 5th edn. International City/County Management Association, Washington, DC, pp 451–477Google Scholar
  3. Modlin S (2014) Collecting and disbursing: increasing cash management efficiency through the utilization of bank services. Public Financ Manag 14(3):355–368Google Scholar
  4. Modlin S, Stewart L (2012) Cash management practices among Southeastern county governments: proper utilization or excessive caution. Public Financ Manag 12(2):100–119Google Scholar
  5. Modlin S, Stewart L (2013) Assessing participation in the state-sponsored local government investment pool during the recession: an examination of North Carolina counties. Public Budg Finance 33(2):90–106CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.National Coalition of Independent ScholarsSan AntonioUSA