What is the Cash Management Improvement Act?

The Cash Management Improvement Act (CMIA) is a federal law that regulates how states and local governments handle their finances. It was enacted in 1986 to ensure that states complied with federal regulations when managing funds. In South Carolina, the CMIA is enforced by the State Treasurer, who is responsible for ensuring the state follows the regulations of the act. The purpose of the act is to promote effective and efficient management of state and local government funds. It does this by requiring states to maintain cash management plans, which lay out how the state will manage its funds. To comply with the act, South Carolina must report its cash activities on a regular basis and implement certain procedures, such as transferring funds between accounts. The state must also develop policies for investing public funds and ensure that funds are available to meet obligations. Additionally, the state must provide timely notices to individuals and organizations when their payments are delayed. In sum, the Cash Management Improvement Act is a federal law that requires South Carolina to have a plan in place to effectively manage its funds. This includes reporting activities, transferring funds, and providing timely notices when payments are delayed. In doing so, the state is better able to make use of its finances and ensure they are available to meet obligations.

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What is the Cash Management Improvement Act?

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