Memorandum for the Heads of Executive Departments and Agencies on Federal Cash Management

Memorandum for the Heads of Executive Departments and Agencies
Subject: Federal Cash Management

I have directed my reorganization staff, in conjunction with the Treasury Department, to conduct a comprehensive review of cash management policies, practices and organization throughout the Federal government.

The purpose of this effort is to identify further opportunities to apply modern cash management techniques to our massive cash flow. Within the constraints of monetary and economic policy, and building on the continuing work of the Treasury Department, the effort will seek ways to use our cash more efficiently with a view toward reducing Federal debt requirements and interest costs. The study will pay special attention to how effectively the government collects and disburses money, compensates banks and other financial institutions for services, controls cash balances, and provides incentives to make Federal managers more aware of the cash management implications of their decisions.

Representatives of my reorganization staff will contact you. They may ask you for help, advice, staff resources, or to participate in reviewing your own cash management activities. Inasmuch as I consider this to be a major management improvement effort, I trust you will share my enthusiasm and cooperate to the fullest extent possible.

In order to inform all affected parties that this review is underway, I have directed that this memorandum be published in the FEDERAL REGISTER.

JIMMY CARTER