You agree with me that cash management is a very important aspect of public financial management that ensures the availability of funds to support intended uses while controlling and safeguarding the cash resources of the entity. The objectives of proper cash management in public financial management include:

• To eliminate idle cash balances: Every Cedi held as cash rather than used to augment revenues or decrease expenditures represents a lost opportunity. Funds that are not needed to cover expected transactions can be used to buy back outstanding debt or can be invested to generate a flow of funds into the Treasury’s account. Minimizing idle cash balances requires accurate information about expected receipts and likely disbursements.
• To deposit collections timely: Having funds in-hand is better than having accounts receivable. Once funds are due to the Government, they should be converted to cash-in-hand immediately and deposited in the Treasury’s account as soon as possible.
• To ensure timely disbursements: Some payments must be made on a specified or legal date. For other payments, such as vendor payments, discretion in timing is possible. Timely disbursements can be used to secure discounts and reduce costs.
• To promote efficient and effective management of cash resources: Cash management seeks to ensure that cash of government is used wisely to achieve the intended purposes while demonstrating accountability.
• To enhance financing decisions: Effective cash management will help forecast cash deficiencies and crises, enabling proactive steps to be taken to address potential problems ahead of time.