A detailed cash flow analysis is intended to identify specific cash requirements for payroll and other vendor bills and to determine investment opportunities that provide the highest possible interest rate while meeting these requirements.
Tax collections are the district's main source of revenue.
The district also is responsible for internal controls, safeguarding its procedures for handling and transferring cash. Such controls may, for instance, require one employee to transfer and invest cash while another reconciles the balances and approves any transfers, to limit the possibilities of theft and fraud. Careful controls also must be maintained over the timing of disbursements to ensure that bills are paid only as they are due. Accurate forecasting helps to ensure that surplus cash is invested in ways that maximize interest returns. Exhibit 7-1 Cash Management Roles and Responsibilities Position Roles and Responsibilities Director of Finance Oversees the cash and investment management activities.