In 1990 the Cash Management Improvement Act (CMIA) was passed by Congress and the Unites States Financial Management Service (FMS) was charged with implementing the regulations. As defined by Congress the purpose of CMIA is to ensure the efficiency, effectiveness, and equity in the transfer of funds between state and federal governments.
The major provisions of CMIA are:
The CMIA representative from the state and federal government negotiate an agreement. The agreement covers state programs funded with federal dollars identified as major programs reported in the Statewide Single Audit Report. This agreement describes the processes that will be used to deposit federal dollars into various state accounts as well as how the state will draw down the dollars from the accounts. Significant deviations from the agreed upon processes result in interest being owed to or from the state.
To view the federal regulation governing CMIA, visit the web-site www.fms.treas.gov/cmia/statute.html
Agreement and Reports: