ERIC Number: ED282290
Record Type: RIE
Publication Date: 1986
School District Financial Management and Banking.
Dembowski, Frederick L.; Davey, Robert D.
This chapter of "Principles of School Business Management" introduces the concept of cash management, or the process of managing an institution's moneys to ensure maximum cash availability and maximum yield on investments. Four activities are involved: (1) conversion of accounts receivable to cash receipts; (2) conversion of accounts payable to cash disbursements; (3) the clearing of the bank by cash disbursements; and (4) maximization of cash utilization. The chapter first discusses the major goals of cash management: availability, yield, and safety. Processes and policies that constitute the administrative framework of cash management are considered next. The chapter next turns to cash budgeting, the process that determines the timing of cash management activities. Formal and informal systems for handling the information required to control the cash management process are examined in the next section of the chapter. Cash collection, deposit, and disbursement procedures are covered next. The chapter then turns to the subject of borrowing, discussing types of borrowing, the concept of arbitrage, and factors affecting borrowing in local as opposed to major money markets. Investment is the chapter's next topic, including risk, liquidity, yield, types of securities, and investment strategies. The chapter concludes with a discussion of the effects of a bank's policies and practices on school district profitability. A 16-item bibliography is provided. (PGD)
Publication Type: Guides - Classroom - Learner; Information Analyses
Education Level: N/A
Audience: Administrators; Students; Practitioners
Authoring Institution: Association of School Business Officials International, Reston, VA.
Note: Chapter 9 of "Principles of School Business Management" (EA 019 320).