Cash Management and Single Treasury Account

Abstract

Cash management lies at the heart of all financial management activities since it is the primary indicator of the efficiency of economic management. However, managing cash effectively must be associated with compliance with the relevant rules and practices. The Nigerian government's finance ministry operation has continued to change regarding the cash management function. The promulgation of the Financial Regulation (FR) of 1958 aimed at harmonizing the treasury functions of the Nigerian government under one treasury department made provisions regarding the responsibility of the accountant general in the area of cash management and control.

The essence of financial management in public services is to ensure optimal service delivery objectives and Vision 20:2020 goals, which lie in effective service implementation. It is also expected to develop effective competition in production, innovation and technological development. Supposed financial management in low prices certified Accountants' Institute of Certified Public Accountants (1979). Poor financing of industrial organizations in a country is an economic barrier to development. Once again, public finances in Nigeria are having severe crises theoretically and in practice to an extent, the Nigeria system could project cash deficit governments budgeting, the federal as a level of the government would result in supplement borrowing to part of the excess expenditure the desired and dire crude and simple terms this may involve borrowing at low rate of interest outside the country to launch the expected foreign exchange earning, exhibitive solely from the export of the goods and services from this campaign, the economic social and economics reason it is necessitated to ensure the compulsory installment payment of money into the public capitalized account at the close of every working day by all the government offices in Nigeria and the remittance of effects into the particular daily collection account often to as federal government account domiciled with the Central Bank of Nigeria as duty as an affordable price to avoid the undesirable fundraising at high interest or in suffering the embarrassment of non fulfillment of the exchange commitments to international creditors and donors to use series to their financial dataset of transparence, which is in line with International Public Sector accounting standards (IPSAS). Transfer of such entry shall be made in the approved appropriations recorded in three ledgers cells, namely: continues expenditure, development administration and statutory or internally generated revenue account apparent to the commercial banking system through the presence of the accountant general of the Federation represented by the director of cash management every month a resource monitoring of budget and cash curtailment meeting co-chaired by the accountant – general financial affairs of the ministry of finance.