Cash Management Framework and Cash Management Framework and its Integration with Debt its Integration with Debt
ManagementManagement
Professional Development Seminar on Debt Management
December 10, 2008
Sailendra
Pattanayak
and Brian Olden, FAD
Ove
rvie
wO
verv
iew
Def
initi
ons o
f Cas
h M
anag
emen
t D
efin
ition
s of C
ash
Man
agem
ent
Out
line
of a
mod
ern
cash
man
agem
ent f
ram
ewor
kO
utlin
e of
a m
oder
n ca
sh m
anag
emen
t fra
mew
ork
Cash
ratio
ning
vs.
cash
man
agem
ent
Cash
ratio
ning
vs.
cash
man
agem
ent
Bene
fits o
f an
effic
ient c
ash
man
agem
ent s
yste
m
Bene
fits o
f an
effic
ient c
ash
man
agem
ent s
yste
m
Prer
equi
sites
for e
ffect
ive
cash
man
agem
ent
Prer
equi
sites
for e
ffect
ive
cash
man
agem
ent
Bank
ing
and
paym
ent a
rran
gem
ents
Ba
nkin
g an
d pa
ymen
t arr
ange
men
ts
Cash
fore
cast
ing
Cash
fore
cast
ing
Inst
itutio
nal f
ram
ewor
kIn
stitu
tiona
l fra
mew
ork
Man
agin
g ca
sh b
alanc
esM
anag
ing
cash
bala
nces
-- the
basic
requ
irem
ents
the
basic
requ
irem
ents
Issu
es su
rrou
ndin
g in
tegr
atio
n of
cas
h an
d de
bt m
anag
emen
t Is
sues
surr
ound
ing
inte
grat
ion
of c
ash
and
debt
man
agem
ent
Disc
ussio
n on
app
ropr
iate
inst
itutio
nal f
ram
ewor
kD
iscus
sion
on a
ppro
priat
e in
stitu
tiona
l fra
mew
ork
Som
e d
efin
itio
ns
of c
ash
So
me
def
init
ion
s of
cas
h
man
agem
ent
man
agem
ent
The
stra
tegy
and
ass
ociat
ed p
roce
sses
for m
anag
ing
The
stra
tegy
and
ass
ociat
ed p
roce
sses
for m
anag
ing
cost
cost
-- effe
ctiv
ely th
e go
vern
men
tef
fect
ively
the
gove
rnm
ent ’’ s
shor
ts s
hort
-- term
cas
h flo
ws
term
cas
h flo
ws
and
cash
bala
nces
, bot
h w
ithin
gov
ernm
ent,
and
and
cash
bala
nces
, bot
h w
ithin
gov
ernm
ent,
and
betw
een
gove
rnm
ent a
nd o
ther
sect
ors.
betw
een
gove
rnm
ent a
nd o
ther
sect
ors.
(Will
iams 2
004)
(Will
iams 2
004)
Hav
ing
the
Hav
ing
the
righ
tri
ght
mon
ey in
the
mon
ey in
the
righ
tri
ght
plac
e at
the
plac
e at
the
righ
tri
ght
time
to m
eet t
he g
over
nmen
ttim
e to
mee
t the
gov
ernm
ent ’’ s
obl
igat
ions
in th
e m
ost
s obl
igat
ions
in th
e m
ost
cost
cost
-- effe
ctiv
e w
ay.
effe
ctiv
e w
ay.
(Sto
rkey
200
1)(S
tork
ey 2
001)
Cas
h m
anag
emen
t fr
amew
ork
Cas
h m
anag
emen
t fr
amew
ork D
eb
t m
an
ag
em
en
t
Reven
ues
Pay
men
ts
Cash
m
an
ag
er
Mo
neta
ry
po
licy
Sp
en
din
g
un
its
Sh
ort
-term
In
vest
men
tsS
ho
rt-t
erm
Bo
rro
win
gs
Trea
sury
sys
tem Cen
tral b
ank
Fin
an
cial
mark
ets
dev.
Ban
ks
Mai
n b
uild
ing
blo
cks
for
cash
M
ain
bu
ildin
g b
lock
s fo
r ca
sh
man
agem
ent
man
agem
ent
Cont
rol o
ver r
ecei
pts a
nd e
xpen
ditu
res.
Cont
rol o
ver r
ecei
pts a
nd e
xpen
ditu
res.
Fore
cast
ing
cash
requ
irem
ents
.Fo
reca
stin
g ca
sh re
quire
men
ts.
Man
agin
g go
vern
men
t cas
h ba
lance
s M
anag
ing
gove
rnm
ent c
ash
balan
ces
––su
rplu
ses/
defic
its.
surp
luse
s/de
ficits
.
Cas
h r
atio
nin
gC
ash
rat
ion
ing
(m
isn
omer
cas
h b
ud
geti
ng)
(mis
nom
er c
ash
bu
dge
tin
g)
Last
reso
rt liq
uidi
ty m
anag
emen
tLa
st re
sort
liqui
dity
man
agem
ent
Lim
its a
bilit
y to
com
mit
until
suff
icie
nt fu
nds a
re a
vaila
ble
Lim
its a
bilit
y to
com
mit
until
suff
icie
nt fu
nds a
re a
vaila
ble
(dela
ys im
plem
enta
tion)
(dela
ys im
plem
enta
tion)
No
forw
ard
cash
plan
ning
No
forw
ard
cash
plan
ning
Disr
uptiv
e to
pro
gram
s, ve
ndor
sD
isrup
tive
to p
rogr
ams,
vend
ors
Hig
h co
rrup
tion
pote
ntial
Hig
h co
rrup
tion
pote
ntial
Nee
d tra
nspa
rent
ex
ante
rule
sN
eed
trans
pare
nt e
x an
te ru
les
Publ
ic pr
oced
ure
Publ
ic pr
oced
ure
Like
ly to
und
erm
ine
budg
et p
riorit
iesLi
kely
to u
nder
min
e bu
dget
prio
rities
Ben
efit
s of
eff
icie
nt
cash
B
enef
its
of e
ffic
ien
t ca
sh
man
agem
ent
man
agem
ent
Ens
ure
oblig
atio
ns c
an b
e m
et a
s the
y fa
ll du
eE
nsur
e ob
ligat
ions
can
be
met
as t
hey
fall
due
Min
imiz
e id
le ba
lance
s and
ass
ociat
ed c
osts
Min
imiz
e id
le ba
lance
s and
ass
ociat
ed c
osts
Cond
uct c
ost
Cond
uct c
ost -- e
ffect
ive
borr
owin
g op
erat
ions
effe
ctiv
e bo
rrow
ing
oper
atio
ns
Cont
ribut
es to
dev
elopm
ent o
f sho
rtCo
ntrib
utes
to d
evelo
pmen
t of s
hort
-- term
mon
ey
term
mon
ey
mar
kets
mar
kets
Redu
ce li
quid
ity im
pact
from
bud
get
Redu
ce li
quid
ity im
pact
from
bud
get
defic
its/s
urpl
uses
defic
its/s
urpl
uses
Sepa
ratio
n of
cas
h m
anag
emen
t fro
m m
onet
ary
polic
ySe
para
tion
of c
ash
man
agem
ent f
rom
mon
etar
y po
licy
Enh
ance
d tra
nspa
renc
y of
gov
ernm
ent f
low
sE
nhan
ced
trans
pare
ncy
of g
over
nmen
t flo
ws
Com
mon
issu
es in
tra
nsi
tion
an
d
Com
mon
issu
es in
tra
nsi
tion
an
d
dev
elop
ing
cou
ntr
ies/
dev
elop
ing
cou
ntr
ies/
LIC
sL
ICs
Budg
et e
xecu
tion
focu
sed
on c
ompl
iance
with
ann
ual b
udge
t Bu
dget
exe
cutio
n fo
cuse
d on
com
plian
ce w
ith a
nnua
l bud
get
law ra
ther
than
eff
icie
ncy
of re
sour
ces.
law ra
ther
than
eff
icie
ncy
of re
sour
ces.
Frag
men
ted
treas
ury
syst
em w
ith m
any
sepa
rate
ban
k Fr
agm
ente
d tre
asur
y sy
stem
with
man
y se
para
te b
ank
acco
unts
acco
unts
-- bot
h in
com
mer
cial b
anks
and
CB.
both
in c
omm
ercia
l ban
ks a
nd C
B.Ca
sh ra
tioni
ng is
the
main
exp
endi
ture
con
trol s
yste
mCa
sh ra
tioni
ng is
the
main
exp
endi
ture
con
trol s
yste
m-- c
reat
es
crea
tes
unce
rtain
ty o
f res
ourc
e av
ailab
ility
for
unce
rtain
ty o
f res
ourc
e av
ailab
ility
for B
IBI
’’ ss . .
Spen
ding
uni
ts n
ot c
once
rned
with
bor
row
ing
cost
s.Sp
endi
ng u
nits
not
con
cern
ed w
ith b
orro
win
g co
sts.
Dail
y ca
sh n
eeds
met
by
the
cent
ral b
ank
Dail
y ca
sh n
eeds
met
by
the
cent
ral b
ank --
less o
f an
issue
with
les
s of a
n iss
ue w
ith
EU
EU
appl
icant
cou
ntrie
s due
to p
rohi
bitio
n on
CB
borr
owin
g.ap
plica
nt c
ount
ries d
ue to
pro
hibi
tion
on C
B bo
rrow
ing.
Liqu
idity
man
aged
for m
onet
ary
polic
y pu
rpos
es.
Liqu
idity
man
aged
for m
onet
ary
polic
y pu
rpos
es.
Pre
req
uis
ites
for
cas
h m
anag
emen
tP
rere
qu
isit
es f
or c
ash
man
agem
ent
Aw
aren
ess w
ithin
the
gove
rnm
ent o
f the
opp
ortu
nity
A
war
enes
s with
in th
e go
vern
men
t of t
he o
ppor
tuni
ty
cost
of m
oney
cost
of m
oney
Cons
olid
atio
n of
gov
ernm
ent c
ash
balan
ces i
n a
Cons
olid
atio
n of
gov
ernm
ent c
ash
balan
ces i
n a
TSA
TSA
Fund
and
acc
ount
ing
cont
rols
thro
ugh
treas
ury
ledge
r sys
tem
Fund
and
acc
ount
ing
cont
rols
thro
ugh
treas
ury
ledge
r sys
tem
Dev
elope
d ex
pend
iture
and
com
mitm
ent c
ontro
lsD
evelo
ped
expe
nditu
re a
nd c
omm
itmen
t con
trols
Well
dev
elope
d ca
sh p
lanni
ng a
nd fo
reca
stin
g fu
nctio
nW
ell d
evelo
ped
cash
plan
ning
and
fore
cast
ing
func
tion
Effi
cient
pay
men
t sys
tem
to su
stain
cas
h ba
lance
s at
Effi
cient
pay
men
t sys
tem
to su
stain
cas
h ba
lance
s at
optim
um le
vel
optim
um le
vel
Such
as c
entra
lized
pay
men
ts p
roce
ssin
gSu
ch a
s cen
traliz
ed p
aym
ents
pro
cess
ing
Pre
req
uis
ites
for
cas
h m
anag
emen
t P
rere
qu
isit
es f
or c
ash
man
agem
ent
––
con
td.
con
td.
Reali
stic
budg
et
Reali
stic
budg
et
Ade
quat
e ac
coun
ting
fram
ewor
kA
dequ
ate
acco
untin
g fr
amew
ork
Tailo
rTa
ilor --
mad
e ca
sh fo
reca
stin
g m
odul
es c
an b
e pa
rt of
m
ade
cash
fore
cast
ing
mod
ules
can
be
part
of IF
MIS
IFM
IS, ,
who
se a
ccou
ntin
g m
odul
e ca
n pr
ovid
e da
ily d
ata
on in
flow
s w
hose
acc
ount
ing
mod
ule
can
prov
ide
daily
dat
a on
inflo
ws
and
outfl
ows.
and
outfl
ows.
Acc
ess t
o fin
ancia
l mar
kets
and
Acc
ess t
o fin
ancia
l mar
kets
and
use
of m
oder
n us
e of
mod
ern
inst
rum
ents
for c
ash
man
agem
ent
inst
rum
ents
for c
ash
man
agem
ent
Cash
man
agem
ent s
epar
ated
from
, but
link
ed to
, Ca
sh m
anag
emen
t sep
arat
ed fr
om, b
ut li
nked
to,
mon
etar
y po
licy
mon
etar
y po
licy
Inte
grat
ion
of c
ash
and
debt
man
agem
ent
Inte
grat
ion
of c
ash
and
debt
man
agem
ent
Sin
gle
Tre
asu
ry A
ccou
nt
Sin
gle
Tre
asu
ry A
ccou
nt
All
reve
nues
and
exp
endi
ture
s go
thro
ugh
All
reve
nues
and
exp
endi
ture
s go
thro
ugh
TSA
TSA
The
cons
olid
atio
n of
gov
ernm
ent c
ash
reso
urce
s thr
ough
a
The
cons
olid
atio
n of
gov
ernm
ent c
ash
reso
urce
s thr
ough
a
TSA
TSA
shou
ld b
e co
mpr
ehen
sive
shou
ld b
e co
mpr
ehen
sive
Budg
et in
stitu
tions
(Bu
dget
inst
itutio
ns ( B
IBI
’’ ss ) d
o no
t hav
e se
para
te b
ank
) do
not h
ave
sepa
rate
ban
k ac
coun
ts.
acco
unts
.BIBI
’’ sstra
nsac
tions
man
aged
thro
ugh
the
treas
ury
ledge
r sys
tem
trans
actio
ns m
anag
ed th
roug
h th
e tre
asur
y led
ger s
yste
mW
here
tran
sact
iona
l acc
ount
s are
nec
essa
ry, b
alanc
es a
re
Whe
re tr
ansa
ctio
nal a
ccou
nts a
re n
eces
sary
, bala
nces
are
sw
ept u
p in
to T
SA p
erio
dica
lly (p
refe
rabl
y da
ily)
swep
t up
into
TSA
per
iodi
cally
(pre
fera
bly
daily
) A
ll m
onies
seen
as f
ungi
ble
to p
reve
nt in
effic
ient u
se o
f A
ll m
onies
seen
as f
ungi
ble
to p
reve
nt in
effic
ient u
se o
f pu
blic
cash
reso
urce
s.pu
blic
cash
reso
urce
s.Th
e ca
sh b
alanc
e in
the
The
cash
bala
nce
in th
e TS
ATS
Ais
main
tain
ed a
t a le
vel
is m
ainta
ined
at a
leve
l su
fficie
nt to
mee
t dail
y op
erat
iona
l req
uire
men
ts o
f the
su
fficie
nt to
mee
t dail
y op
erat
iona
l req
uire
men
ts o
f the
go
vern
men
tgo
vern
men
t
Ad
van
tage
s of
a T
SAA
dva
nta
ges
of a
TSA
Prov
ides
com
plet
e, re
al tim
e, in
form
atio
n ab
out g
over
nmen
t Pr
ovid
es c
ompl
ete,
real
time,
info
rmat
ion
abou
t gov
ernm
ent
fund
sfu
nds
Help
s pre
para
tion
of a
ccur
ate
and
relia
ble
cash
flow
fore
cast
sH
elps p
repa
ratio
n of
acc
urat
e an
d re
liabl
e ca
sh fl
ow fo
reca
sts
Facil
itate
s effe
ctiv
e re
conc
iliat
ion
betw
een
the
gove
rnm
ent
Facil
itate
s effe
ctiv
e re
conc
iliat
ion
betw
een
the
gove
rnm
ent
acco
untin
g sy
stem
s and
cas
h flo
w st
atem
ents
acco
untin
g sy
stem
s and
cas
h flo
w st
atem
ents
Serv
es to
ens
ure
trans
pare
ncy
and
redu
ce n
eed
for e
xtra
Se
rves
to e
nsur
e tra
nspa
renc
y an
d re
duce
nee
d fo
r ext
ra
budg
etar
y fu
nds
budg
etar
y fu
nds
Impr
oves
ope
ratio
nal a
nd a
ppro
priat
ion
cont
rol d
urin
g bu
dget
Im
prov
es o
pera
tiona
l and
app
ropr
iatio
n co
ntro
l dur
ing
budg
et
exec
utio
nex
ecut
ion
Redu
ces t
he u
ncer
tain
ty a
bout
the
cash
rese
rves
for l
iqui
dity
Re
duce
s the
unc
erta
inty
abo
ut th
e ca
sh re
serv
es fo
r liq
uidi
ty
man
agem
ent p
urpo
ses,
and
the
volat
ility
of t
he c
ash
flow
s m
anag
emen
t pur
pose
s, an
d th
e vo
latili
ty o
f the
cas
h flo
ws
Facil
itate
s effi
cient
pay
men
t mec
hani
sms
Facil
itate
s effi
cient
pay
men
t mec
hani
sms
Req
uir
emen
ts f
or a
n e
ffic
ien
t R
equ
irem
ents
for
an
eff
icie
nt
TSA
TSA
Polit
ical
supp
ort i
s ess
entia
l (su
ch a
s for
clo
sure
of a
genc
y Po
litic
al su
ppor
t is e
ssen
tial (
such
as f
or c
losu
re o
f age
ncy
a/a/cscs
))Le
gal a
nd re
gulat
ory
requ
irem
ents
Lega
l and
regu
lator
y re
quire
men
tsE
.g. a
utho
rity
to o
pen
bank
acc
ount
s sho
uld
vest
with
the
E.g
. aut
horit
y to
ope
n ba
nk a
ccou
nts s
houl
d ve
st w
ith th
e M
oFM
oF/T
reas
ury
/Tre
asur
y
Tech
nolo
gica
l req
uire
men
tsTe
chno
logi
cal r
equi
rem
ents
Ade
quat
e tra
nsac
tion
clear
ing
and
inte
rA
dequ
ate
trans
actio
n cle
arin
g an
d in
ter --
bank
settl
emen
t sys
tem
sba
nk se
ttlem
ent s
yste
ms
Dev
elopm
ent o
f an
Dev
elopm
ent o
f an
RTG
SRT
GS
at th
e CB
for h
igh
valu
e tra
nsac
tions
at th
e CB
for h
igh
valu
e tra
nsac
tions
Majo
r com
mer
cial b
anks
and
trea
sury
con
nect
ed to
the
Majo
r com
mer
cial b
anks
and
trea
sury
con
nect
ed to
the
RTG
SRT
GS
Fram
ewor
k ag
reem
ents
bet
wee
n th
e Tr
easu
ry,
Fram
ewor
k ag
reem
ents
bet
wee
n th
e Tr
easu
ry, T
SATS
ABa
nk
Bank
(C
B) a
nd B
anks
pro
vidi
ng re
tail
bank
ing
serv
ices
(CB)
and
Ban
ks p
rovi
ding
reta
il ba
nkin
g se
rvic
esRe
visit
ing
the
char
t of a
ccou
nts f
or c
over
age
of n
onRe
visit
ing
the
char
t of a
ccou
nts f
or c
over
age
of n
on-- b
ank
bank
ex
pend
iture
tran
sact
ions
expe
nditu
re tr
ansa
ctio
nsCa
paci
ty d
evel
opm
ent o
f Ca
paci
ty d
evel
opm
ent o
f TSA
TSA
user
sus
ers
Safe
hav
en fo
r gov
ernm
ent c
ash
depo
sit.
Safe
hav
en fo
r gov
ernm
ent c
ash
depo
sit.
Aid
s the
eff
icie
nt m
anag
emen
t of l
iqui
dity
in th
e A
ids t
he e
ffic
ient
man
agem
ent o
f liq
uidi
ty in
the
econ
omy.
econ
omy.
Cost
eff
ectiv
e ba
nkin
g ar
rang
emen
ts.
Cost
eff
ectiv
e ba
nkin
g ar
rang
emen
ts.
No
bette
r alte
rnat
ive
for e
cono
mie
s in
trans
ition
No
bette
r alte
rnat
ive
for e
cono
mie
s in
trans
ition
Alth
ough
not
con
fined
to d
evelo
ping
or t
rans
ition
A
lthou
gh n
ot c
onfin
ed to
dev
elopi
ng o
r tra
nsiti
on
econ
omies
econ
omies
Rea
son
s F
or T
SA T
o R
esid
e A
t R
easo
ns
For
TSA
To
Res
ide
At
Cen
tral
Ban
kC
entr
al B
ank
Dif
fere
nt
Mod
els
for
TSA
Op
erat
ion
sD
iffe
ren
t M
odel
s fo
r T
SA O
per
atio
ns
Ther
e ar
e a
num
ber o
f mod
els:
Ther
e ar
e a
num
ber o
f mod
els:
Use
com
mer
cial
bank
bra
nch
netw
orks
to c
hann
el fu
nds
Use
com
mer
cial
bank
bra
nch
netw
orks
to c
hann
el fu
nds
to/f
rom
regi
onal
treas
ury
offic
es to
the
TSA
at C
Bto
/fro
m re
gion
al tre
asur
y of
fices
to th
e TS
A a
t CB
Use
regi
onal
bran
ches
of t
he C
B w
here
a re
liabl
e co
mm
erci
al U
se re
gion
al br
anch
es o
f the
CB
whe
re a
relia
ble
com
mer
cial
bran
ch n
etw
ork
is no
t ava
ilabl
e br
anch
net
wor
k is
not a
vaila
ble
Regi
onal
treas
ury
offic
es a
ct a
s ban
ks (o
nly
reco
mm
ende
d Re
gion
al tre
asur
y of
fices
act
as b
anks
(onl
y re
com
men
ded
whe
re th
e co
mm
ercia
l ban
king
sect
or is
rega
rded
as t
oo
whe
re th
e co
mm
ercia
l ban
king
sect
or is
rega
rded
as t
oo
unst
able
)un
stab
le)
Use
com
mer
cial b
anks
bra
nch
netw
ork
to c
lear f
unds
dire
ctly
Use
com
mer
cial b
anks
bra
nch
netw
ork
to c
lear f
unds
dire
ctly
betw
een
TSA
and
taxp
ayer
s/su
pplie
rsbe
twee
n TS
A a
nd ta
xpay
ers/
supp
liers
TSA
TSA
Stru
ctur
e St
ruct
ure
–– Opt
ion
1O
ptio
n 1
Stat
e Tr
easu
ry
Hea
d O
ffic
e
Stat
e Tr
easu
ry
Regi
onal
off
ice
Stat
e Tr
easu
ry
Loca
l off
ice
Cent
ral B
ank
Cent
ral B
ank
Regi
onal
bra
nch
Budg
et u
nit
Paym
ent
orde
r
Paym
ent
orde
r
Rec
onc
.
Sett
lem
ent
Sett
lem
ent
Lim
ited
Trea
sury
co
mm
unic
atio
n an
d in
form
atio
n sy
stem
s
TSA
TSA
Stru
ctur
e St
ruct
ure
–– Opt
ion
2O
ptio
n 2
Stat
e Tr
easu
ry
Hea
d O
ffic
e
Stat
e Tr
easu
ry
Regi
onal
off
ice
Stat
e Tr
easu
ry
Loca
l off
ice
Cent
ral B
ank
Paym
ent
orde
r
Rec
onc.
Sett
lem
ent
Budg
et u
nit
Adva
nced
Tr
easu
ry
com
mun
icat
ion
and
info
rmat
ion
syst
ems
(2a)
TSA
TSA
Stru
ctur
e St
ruct
ure
–– Opt
ion
3O
ptio
n 3 Bu
dget
Uni
t
Com
mer
cial
Ban
kRe
gion
al B
ranc
h
Com
mer
cial
Ban
kH
ead
Off
ice
Paym
ent
Ord
er
Very
Rel
iabl
e an
dAd
vanc
edCo
mm
erci
al B
ank
Sect
or
Cent
ral B
ank
Reco
nc.
Sett
lem
ent
Stat
e Tr
easu
ry
Hea
d O
ffic
e
Man
agem
ent
of C
ash
Bal
ance
s of
M
anag
emen
t of
Cas
h B
alan
ces
of
TSA
T
SA
Def
ine
sepa
rate
poo
ls of
fund
s with
in T
SA sy
stem
, for
D
efin
e se
para
te p
ools
of fu
nds w
ithin
TSA
syst
em, f
or
inst
ance
:in
stan
ce:
Liqu
idity
Liqu
idity
Dep
osit
Dep
osit
Inve
stm
ent
Inve
stm
ent
Diff
eren
tiatio
n ba
sed
on li
quid
ity n
eeds
, lev
el of
D
iffer
entia
tion
base
d on
liqu
idity
nee
ds, l
evel
of
unce
rtain
ty, c
osts
of a
ltern
ativ
e so
urce
s, et
c.un
certa
inty
, cos
ts o
f alte
rnat
ive
sour
ces,
etc.
Selec
t ins
trum
ents
that
mat
ch e
xpec
ted
cash
nee
dsSe
lect i
nstru
men
ts th
at m
atch
exp
ecte
d ca
sh n
eeds
Inte
grat
ed m
anag
emen
t of a
sset
s and
liab
ilitie
s.In
tegr
ated
man
agem
ent o
f ass
ets a
nd li
abili
ties.
Tran
spar
ent a
nd e
fficie
nt p
ricin
g of
ass
ets,
liabi
lities
Tr
ansp
aren
t and
effi
cient
pric
ing
of a
sset
s, lia
bilit
ies
and
serv
ices!
and
serv
ices!
Key
ele
men
ts o
f a
Cas
h M
anag
emen
t K
ey e
lem
ents
of
a C
ash
Man
agem
ent
Fra
mew
ork
Fra
mew
ork
Ann
ual p
lan, 3
Ann
ual p
lan, 3
-- mon
th ro
lling
pro
ject
ions
, m
onth
rolli
ng p
roje
ctio
ns,
mon
thly
ope
ratio
nal p
lan, a
nd fr
eque
nt fo
reca
sts
mon
thly
ope
ratio
nal p
lan, a
nd fr
eque
nt fo
reca
sts
A g
ood
cash
fore
cast
ing
syst
em sh
ould
pro
vide
for
A g
ood
cash
fore
cast
ing
syst
em sh
ould
pro
vide
for
daily
fore
cast
s tha
t are
upd
ated
freq
uent
lyda
ily fo
reca
sts t
hat a
re u
pdat
ed fr
eque
ntly
A te
am le
d by
off
icial
with
aut
horit
y to
col
lect
A
team
led
by o
ffic
ial w
ith a
utho
rity
to c
olle
ct
info
rmat
ion
from
var
ious
dep
artm
ents
info
rmat
ion
from
var
ious
dep
artm
ents
Plan
pre
pare
d by
com
pete
nt st
aff a
nd b
ased
on
Plan
pre
pare
d by
com
pete
nt st
aff a
nd b
ased
on
a re
alist
ic b
udge
t, fo
llow
ing
clea
r fun
ds re
leas
e a
reali
stic
bud
get,
follo
win
g cl
ear f
unds
rele
ase
proc
edur
es a
nd b
udge
t exe
cutio
n ru
les
proc
edur
es a
nd b
udge
t exe
cutio
n ru
les
Key
Rel
atio
nsh
ips
Key
Rel
atio
nsh
ips
Min
istr
y of
Fin
ance
Ove
rsee
ing
tax
and
spen
ding
Fore
cast
ing
fisca
l pos
ition
and
da
ily c
ash
flow
s
Set
s de
bt a
nd c
ash
man
agem
ent p
olic
y
Deb
t and
cas
h m
anag
er
Man
agin
g da
ily c
ash
flow
s
Bor
row
ing
to m
eet s
hort/
med
ium
te
rm n
eeds
Inve
stin
g su
rplu
s as
sets
Enc
oura
ging
stro
ng s
econ
dary
m
arke
t in
gove
rnm
ent s
ecur
ities
Cen
tral
Ban
k
Gov
ernm
ent’s
ban
ker
Man
ages
mon
etar
y po
licy
Cas
h M
anag
emen
t U
nit
C
ash
Man
agem
ent
Un
it --
F
un
ctio
ns
Fu
nct
ion
s
Coor
dina
te su
bmiss
ion
of m
onth
ly c
ash
flow
pro
ject
ions
by
Coor
dina
te su
bmiss
ion
of m
onth
ly c
ash
flow
pro
ject
ions
by
budg
et in
stitu
tions
(spe
ndin
g un
its a
nd re
venu
e ag
enci
es)
budg
et in
stitu
tions
(spe
ndin
g un
its a
nd re
venu
e ag
enci
es)
Prep
are
(con
solid
ated
) cas
h flo
w p
roje
ctio
ns o
n a
rolli
ng
Prep
are
(con
solid
ated
) cas
h flo
w p
roje
ctio
ns o
n a
rolli
ng
basis
basis
Mon
itor c
ash
inflo
w/
outfl
ow o
uttu
rns a
nd id
entif
y M
onito
r cas
h in
flow
/ ou
tflow
out
turn
s and
iden
tify
seas
onal/
mon
thly
pat
tern
sse
ason
al/m
onth
ly p
atte
rns
Mon
itor m
ajor r
ecei
pts a
nd p
aym
ents
and
the
daily
cas
h M
onito
r majo
r rec
eipt
s and
pay
men
ts a
nd th
e da
ily c
ash
posit
ion,
incl
udin
g go
vern
men
t ban
k ba
lance
spo
sitio
n, in
clud
ing
gove
rnm
ent b
ank
balan
ces
Prep
are
and
analy
se re
venu
e /
expe
nditu
re re
ports
and
Pr
epar
e an
d an
alyse
reve
nue
/ ex
pend
iture
repo
rts a
nd
upda
te c
ash
proj
ectio
ns a
s app
ropr
iate
upda
te c
ash
proj
ectio
ns a
s app
ropr
iate
Mak
e pr
opos
als to
Exc
hequ
er /
Liq
uidi
ty C
omm
ittee
for
Mak
e pr
opos
als to
Exc
hequ
er /
Liq
uidi
ty C
omm
ittee
for
adju
stin
g ca
sh fl
ows a
s the
nee
d ar
ises
adju
stin
g ca
sh fl
ows a
s the
nee
d ar
ises
Kee
p th
e ce
ntra
l ban
k fu
lly in
form
ed o
f pro
ject
ed c
ash
Kee
p th
e ce
ntra
l ban
k fu
lly in
form
ed o
f pro
ject
ed c
ash
flow
sflo
ws
Cor
e el
emen
ts o
f ca
sh p
lan
nin
gC
ore
elem
ents
of
cash
pla
nn
ing
Com
preh
ensiv
e in
form
atio
n ne
twor
kCo
mpr
ehen
sive
info
rmat
ion
netw
ork
Regu
lar, r
eliab
le es
timat
es o
f fut
ure
cash
flow
sRe
gular
, reli
able
estim
ates
of f
utur
e ca
sh fl
ows
Det
erm
ine
and
impl
emen
t stra
tegy
for m
atch
ing
cash
D
eter
min
e an
d im
plem
ent s
trate
gy fo
r mat
chin
g ca
sh
flow
s with
fisc
al op
erat
ions
plan
, e.g
.flo
ws w
ith fi
scal
oper
atio
ns p
lan, e
.g.
delay
com
mitm
ents
delay
com
mitm
ents
spee
d up
reve
nue
mob
iliza
tion
spee
d up
reve
nue
mob
iliza
tion
borr
ow fr
om th
e m
arke
t (sh
ort o
r lon
gbo
rrow
from
the
mar
ket (
shor
t or l
ong --
term
)te
rm)
inve
st su
rplu
s bala
nces
opt
imall
y (s
hort
or lo
ngin
vest
surp
lus b
alanc
es o
ptim
ally
(sho
rt or
long
-- term
)te
rm)
Revi
ew a
nd u
pdat
e fin
ancia
l plan
sRe
view
and
upd
ate
finan
cial p
lans
refin
e fo
reca
stin
g te
chni
ques
/set
per
form
ance
targ
ets
refin
e fo
reca
stin
g te
chni
ques
/set
per
form
ance
targ
ets
Cas
h F
orec
ast
and
Bal
ance
sC
ash
For
ecas
t an
d B
alan
ces
Rev
enue
s
1 2
3
4
5 6
7
8
9 1
0 1
1 1
2
Spen
ding
Cen
tral F
orec
asts
Age
ncy
Fina
ncia
l Pla
ns/A
llotm
ents
Bal
ance
Seas
onal
reve
nue
fluct
uatio
n,
spen
ding
pa
ttern
s
Stru
ctur
alre
venu
eflu
ctua
tion,
sp
endi
ng
patte
rns
Arr
ears
Ove
r-
co
mm
mitm
ent
Ran
dom
re
venu
e sh
ocks
Ann
ual
pred
icta
ble
patte
rn
Cor
rect
ive
Mea
sure
s:C
orre
ctiv
e M
easu
res:
Sm
ooth
ing
cash
flo
ws
Smoo
thin
g ca
sh f
low
s
Cas
h B
alan
ce
Seasonal
:1.
Kee
p al
lotm
ents
or
com
mitm
ents
bel
ow
reve
nue,
bui
ld b
alan
ces
2.
Shor
t-ter
m d
ebt
3.
Lim
it ca
sh p
aym
ents
to
cash
bal
ance
s (ar
rear
s)4.
Acc
eler
ate
rece
ivab
les
colle
ctio
n
Structural
:1.
Bud
get r
etre
nchm
ent
2.
Long
-term
deb
t3.
Allo
w c
omm
itmen
t/spe
ndin
g on
ly if
reve
nues
act
ually
re
ceiv
ed4.
Con
tinge
nt li
abili
ty
man
agem
ent
5.
Com
preh
ensi
vene
ss6.
Com
mitm
ent c
ontro
ls
Man
agin
g C
ash
Bal
ance
s M
anag
ing
Cas
h B
alan
ces
Nee
d to
dev
elop
inst
rum
ents
to m
anag
e ca
sh su
rplu
ses a
nd
Nee
d to
dev
elop
inst
rum
ents
to m
anag
e ca
sh su
rplu
ses a
nd
defic
its.
defic
its.
Main
fina
ncial
inst
rum
ents
Main
fina
ncial
inst
rum
ents
TT-- B
ills
Bills
Repo
Repo
’’ ss /re
vers
e /r
ever
se re
pore
po’’ ss
Shor
tSh
ort --
term
faci
litie
s with
com
mer
cial
bank
ste
rm fa
cilit
ies w
ith c
omm
erci
al ba
nks
Dep
osits
Dep
osits
-- ter
m a
nd o
vern
ight
term
and
ove
rnig
htW
ith C
B an
d w
ith c
omm
ercia
l ban
ksW
ith C
B an
d w
ith c
omm
ercia
l ban
ks
Acc
ess t
o Li
quid
ity a
t sho
rt no
tice
for u
nant
icipa
ted
cash
call
sA
cces
s to
Liqu
idity
at s
hort
notic
e fo
r una
ntici
pate
d ca
sh c
alls
Impa
ct o
n do
mes
tic fi
nanc
ial m
arke
ts w
ill b
e re
leva
nt (l
arge
Im
pact
on
dom
estic
fina
ncial
mar
kets
will
be
rele
vant
(lar
ge
stoc
ks o
r flo
ws)
stoc
ks o
r flo
ws)
Coor
dina
tion
with
mon
etar
y au
thor
ities
ess
entia
lCo
ordi
natio
n w
ith m
onet
ary
auth
oriti
es e
ssen
tial
Ob
stac
les
to M
anag
ing
Cas
h
Ob
stac
les
to M
anag
ing
Cas
h
Bal
ance
s B
alan
ces
Und
erde
velo
ped
dom
estic
fina
ncial
mar
kets
Und
erde
velo
ped
dom
estic
fina
ncial
mar
kets
-- par
ticul
arly
mon
ey
parti
cular
ly m
oney
m
arke
ts
mar
kets
La
ck o
f con
fiden
ce in
dom
estic
ban
king
syst
em
Lack
of c
onfid
ence
in d
omes
tic b
anki
ng sy
stem
A
bsen
ce o
f sou
nd, e
fficie
nt c
learin
g an
d se
ttlem
ent s
yste
ms
Abs
ence
of s
ound
, effi
cient
clea
ring
and
settl
emen
t sys
tem
s
Hug
ely
impr
oved
in m
ost t
rans
ition
cou
ntrie
s ove
r las
t 5 y
ears
Hug
ely
impr
oved
in m
ost t
rans
ition
cou
ntrie
s ove
r las
t 5 y
ears
Und
erde
velo
ped
legal,
judi
cial a
nd re
gulat
ory
infr
astru
ctur
esU
nder
deve
lope
d leg
al, ju
dicia
l and
regu
lator
y in
fras
truct
ures
Unt
este
d st
anda
rdiz
ed m
aste
r rep
urch
ase
agre
emen
ts a
nd o
ther
U
ntes
ted
stan
dard
ized
mas
ter r
epur
chas
e ag
reem
ents
and
oth
er
colla
tera
lizat
ion
cont
ract
sco
llate
raliz
atio
n co
ntra
cts
Alth
ough
in p
lace
in m
any
coun
tries
may
not
hav
e be
en fu
lly te
stA
lthou
gh in
plac
e in
man
y co
untri
es m
ay n
ot h
ave
been
fully
test
ed u
nder
nat
iona
l ed
und
er n
atio
nal
legal
fram
ewor
k leg
al fr
amew
ork
Inte
grat
ion
of
Cas
h
Inte
grat
ion
of
Cas
h
and
Deb
t M
anag
emen
t an
d D
ebt
Man
agem
ent
Def
init
ion
of
Pu
blic
Deb
t D
efin
itio
n o
f P
ub
lic D
ebt
Man
agem
ent
Man
agem
ent
The
proc
ess o
f est
ablis
hing
and
exe
cutin
g a
stra
tegy
for
The
proc
ess o
f est
ablis
hing
and
exe
cutin
g a
stra
tegy
for
man
agin
g th
e go
vern
men
tm
anag
ing
the
gove
rnm
ent ’’ s
deb
t in
orde
r to
raise
the
s deb
t in
orde
r to
raise
the
requ
ired
amou
nt o
f fun
ding
, mee
t its
cos
t and
risk
re
quire
d am
ount
of f
undi
ng, m
eet i
ts c
ost a
nd ri
sk
objec
tives
, and
to m
eet a
ny o
ther
deb
t man
agem
ent g
oals
objec
tives
, and
to m
eet a
ny o
ther
deb
t man
agem
ent g
oals
the
gove
rnm
ent m
ay h
ave
set,
such
as d
evelo
ping
and
th
e go
vern
men
t may
hav
e se
t, su
ch a
s dev
elopi
ng a
nd
main
tain
ing
an e
fficie
nt a
nd li
quid
mar
ket f
or g
over
nmen
t m
ainta
inin
g an
effi
cient
and
liqu
id m
arke
t for
gov
ernm
ent
secu
rities
.*se
curit
ies.*
* So
urce
: WB/
IMF
Deb
t Man
agem
ent G
uide
lines
*
Sour
ce: W
B/IM
F D
ebt M
anag
emen
t Gui
delin
es
Issu
es s
urr
oun
din
g d
ebt
and
cas
h
Issu
es s
urr
oun
din
g d
ebt
and
cas
h
man
agem
ent
man
agem
ent
Deb
t man
agem
ent o
ften
rega
rded
as a
stan
d alo
ne fu
nctio
n.D
ebt m
anag
emen
t ofte
n re
gard
ed a
s a st
and
alone
func
tion.
Goa
ls an
d ob
ject
ives
of d
ebt m
anag
emen
t for
mul
ated
on
the
basis
G
oals
and
obje
ctiv
es o
f deb
t man
agem
ent f
orm
ulat
ed o
n th
e ba
sis o
f the
of
the
debt
por
tfolio
.de
bt p
ortfo
lio.
Littl
e em
phas
is on
impa
ct o
f deb
t man
agem
ent d
ecisi
ons o
n ot
her
Littl
e em
phas
is on
impa
ct o
f deb
t man
agem
ent d
ecisi
ons o
n ot
her a
spec
ts
aspe
cts
of P
FM a
nd in
par
ticul
ar c
ash
man
agem
ent.
of P
FM a
nd in
par
ticul
ar c
ash
man
agem
ent.
Frag
men
tatio
n of
resp
onsib
ility
for d
ebt i
ssua
nce
and
cash
Fr
agm
enta
tion
of re
spon
sibili
ty fo
r deb
t iss
uanc
e an
d ca
sh
man
agem
ent.
man
agem
ent.
Inst
itutio
nal s
truct
ure
can
lead
to a
situ
atio
n w
here
deb
t and
cIn
stitu
tiona
l stru
ctur
e ca
n le
ad to
a si
tuat
ion
whe
re d
ebt a
nd c
ash
ash
man
agem
ent u
nits
com
petin
g w
ith e
ach
othe
r for
mar
ket a
cces
s.m
anag
emen
t uni
ts c
ompe
ting
with
eac
h ot
her f
or m
arke
t acc
ess.
Lack
of i
nteg
ratio
n of
deb
t man
agem
ent s
yste
ms w
ith o
ther
La
ck o
f int
egra
tion
of d
ebt m
anag
emen
t sys
tem
s with
oth
er
PFM
and
cas
h m
anag
emen
t rela
ted
syst
ems.
PFM
and
cas
h m
anag
emen
t rela
ted
syst
ems.
Issu
es s
urr
oun
din
g d
ebt
and
cas
h
Issu
es s
urr
oun
din
g d
ebt
and
cas
h
man
agem
ent
man
agem
ent
Incr
ease
d op
erat
iona
l and
liqu
idity
risk
s if c
ash
and
debt
In
crea
sed
oper
atio
nal a
nd li
quid
ity ri
sks i
f cas
h an
d de
bt
man
agem
ent n
ot in
tegr
ated
.m
anag
emen
t not
inte
grat
ed.
Inte
grat
ion
of c
ash
and
debt
man
agem
ent u
nder
a se
para
te
Inte
grat
ion
of c
ash
and
debt
man
agem
ent u
nder
a se
para
te
inst
itutio
nal f
ram
ewor
k ca
n cr
eate
pro
blem
s as w
ell:
inst
itutio
nal f
ram
ewor
k ca
n cr
eate
pro
blem
s as w
ell:
Can
lead
to se
para
tion
of c
ash
man
agem
ent f
rom
bud
get e
xecu
tion.
Can
lead
to se
para
tion
of c
ash
man
agem
ent f
rom
bud
get e
xecu
tion.
Can
ham
per c
oCa
n ha
mpe
r co --
ordi
natio
n w
ith m
onet
ary
and
fisca
l pol
icy.
ordi
natio
n w
ith m
onet
ary
and
fisca
l pol
icy.
Alth
ough
impo
rtant
to c
onsid
er th
ese
issue
s int
egra
tion
bene
fits
Alth
ough
impo
rtant
to c
onsid
er th
ese
issue
s int
egra
tion
bene
fits
outw
eigh
the
pote
ntial
risk
s.ou
tweig
h th
e po
tent
ial ri
sks.
Inte
grat
ion
foc
use
s ac
tivi
ties
on
In
tegr
atio
n f
ocu
ses
acti
viti
es o
n
com
mon
ob
ject
ives
com
mon
ob
ject
ives
Inte
grat
ed c
ash
and
debt
man
agem
ent s
houl
d en
sure
com
mon
obj
ecti
Inte
grat
ed c
ash
and
debt
man
agem
ent s
houl
d en
sure
com
mon
obj
ecti v
es in
ve
s in
relat
ion
to e
ffic
ient
man
agem
ent o
f ass
et a
nd li
abili
ty p
ositi
onre
latio
n to
eff
icie
nt m
anag
emen
t of a
sset
and
liab
ility
pos
ition
s s
Hav
e be
en si
tuat
ions
in so
me
coun
tries
whe
re la
ck o
f com
mun
icat
iH
ave
been
situ
atio
ns in
som
e co
untri
es w
here
lack
of c
omm
unic
ati o
n on
betw
een
cash
and
deb
t uni
ts h
as le
d to
ove
r/un
der i
ssua
nce
in ti
betw
een
cash
and
deb
t uni
ts h
as le
d to
ove
r/un
der i
ssua
nce
in ti
mes
of
mes
of
surp
lus/
defic
it.
surp
lus/
defic
it.
Risk
man
agem
ent c
arrie
d ou
t on
an fi
nanc
ial a
sset
and
liab
ility
Ri
sk m
anag
emen
t car
ried
out o
n an
fina
ncial
ass
et a
nd li
abili
ty b
asis
rath
er
basis
rath
er
than
focu
sing
sole
ly o
n de
bt p
ortfo
lio.
than
focu
sing
sole
ly o
n de
bt p
ortfo
lio.
Also
ens
ures
that
mos
t cos
t eff
ectiv
e in
stru
men
ts u
sed
to fu
nd s
Also
ens
ures
that
mos
t cos
t eff
ectiv
e in
stru
men
ts u
sed
to fu
nd s
hort
hort
-- and
an
d lo
nglo
ng–– t
erm
issu
ance
obj
ectiv
es.
term
issu
ance
obj
ectiv
es.
Op
erat
ion
al a
dva
nta
ges
of
Op
erat
ion
al a
dva
nta
ges
of
inte
grat
ion
inte
grat
ion
Scar
ce re
sour
ces i
n go
vern
men
t sec
tor a
rgue
for t
he c
reat
ion
of
Scar
ce re
sour
ces i
n go
vern
men
t sec
tor a
rgue
for t
he c
reat
ion
of a
sing
le
a sin
gle
finan
cial
man
ager
for g
over
nmen
t. fin
anci
al m
anag
er fo
r gov
ernm
ent.
Typi
cally
staf
f with
exp
erie
nce
of fi
nanc
ial m
arke
ts n
ot e
asy
toTy
pica
lly st
aff w
ith e
xper
ienc
e of
fina
ncial
mar
kets
not
eas
y to
attra
ct a
nd
attra
ct a
nd
reta
in in
the
publ
ic se
ctor
.re
tain
in th
e pu
blic
sect
or.
Ther
efor
e ad
vant
age
of m
ainta
inin
g a
singl
e w
ellTh
eref
ore
adva
ntag
e of
main
tain
ing
a sin
gle
well
-- train
ed p
rofe
ssio
nal s
taff
for
train
ed p
rofe
ssio
nal s
taff
for
both
cas
h an
d de
bt m
anag
emen
t.bo
th c
ash
and
debt
man
agem
ent.
Impo
rtant
in e
very
asp
ect i
nclu
ding
staf
f dea
ling
with
mar
ket t
rIm
porta
nt in
eve
ry a
spec
t inc
ludi
ng st
aff d
ealin
g w
ith m
arke
t tr a
nsac
tions
, ana
lysis
an
sact
ions
, ana
lysis
an
d tra
nsac
tion
proc
essin
g.
and
trans
actio
n pr
oces
sing.
Man
y of
the
oper
atio
nal a
nd tr
ansa
ctio
n pr
oces
ses a
re si
mila
rM
any
of th
e op
erat
iona
l and
tran
sact
ion
proc
esse
s are
sim
ilar --
nece
ssita
tes
nece
ssita
tes
only
one
pro
cess
ing
cent
er.
only
one
pro
cess
ing
cent
er.
Gre
ater
inte
grat
ion
lead
s to
bette
r int
egra
tion
of IT
syst
ems a
nG
reat
er in
tegr
atio
n le
ads t
o be
tter i
nteg
ratio
n of
IT sy
stem
s an d
dat
a on
cas
h d
data
on
cash
an
d de
bt p
ositi
ons.
and
debt
pos
ition
s.
Wh
at is
mea
nt
by
inte
grat
ion
of
deb
t W
hat
is m
ean
t b
y in
tegr
atio
n o
f d
ebt
and
cas
h m
anag
emen
t an
d c
ash
man
agem
ent
Wha
t is t
he a
ppro
priat
e in
stitu
tiona
l fra
mew
ork?
Wha
t is t
he a
ppro
priat
e in
stitu
tiona
l fra
mew
ork?
Shou
ld
Shou
ld c
ashf
low
cash
flow
fore
cast
ing
be c
arrie
d ou
t by
a fo
reca
stin
g be
car
ried
out b
y a
DM
OD
MO
??In
som
e co
untri
es th
e In
som
e co
untri
es th
e D
MO
DM
Opr
oduc
es c
ash
fore
cast
s or f
urth
er re
fines
pr
oduc
es c
ash
fore
cast
s or f
urth
er re
fines
fo
reca
sts r
ecei
ved
from
oth
er in
stitu
tiona
l uni
ts su
ch a
s the
Tr
fore
cast
s rec
eive
d fr
om o
ther
inst
itutio
nal u
nits
such
as t
he T
r eas
ury.
ea
sury
. In
oth
er c
ount
ries i
t is l
eft t
o th
e M
OF
to p
rodu
ce a
nd c
omm
unic
In o
ther
cou
ntrie
s it i
s lef
t to
the
MO
F to
pro
duce
and
com
mun
icat
e w
ith
ate
with
Tr
easu
ry.
Trea
sury
.
Who
is re
spon
sible
for d
eter
min
ing
the
borr
owin
g re
quire
men
t?W
ho is
resp
onsib
le fo
r det
erm
inin
g th
e bo
rrow
ing
requ
irem
ent?
Alth
ough
the
defic
it le
vel i
s a p
olic
y de
cisio
n th
e A
lthou
gh th
e de
ficit
leve
l is a
pol
icy
deci
sion
the
DM
OD
MO
is us
ually
gra
nted
is
usua
lly g
rant
ed
flexi
bilit
y to
fund
this
defic
it as
it se
es fi
t.fle
xibi
lity
to fu
nd th
is de
ficit
as it
sees
fit.
Wh
at is
mea
nt
by
inte
grat
ion
of
deb
t W
hat
is m
ean
t b
y in
tegr
atio
n o
f d
ebt
and
cas
h m
anag
emen
tan
d c
ash
man
agem
ent
Who
is re
spon
sible
for f
inan
cing
decis
ions
?W
ho is
resp
onsib
le fo
r fin
ancin
g de
cisio
ns?
Dep
ends
on
the
leve
l of a
uton
omy
of th
e D
epen
ds o
n th
e le
vel o
f aut
onom
y of
the
DM
OD
MO
. D
eleg
ated
aut
horit
y .
Del
egat
ed a
utho
rity
usua
lly a
ppro
priat
e fo
r fas
t dec
ision
mak
ing.
us
ually
app
ropr
iate
for f
ast d
ecisi
on m
akin
g.
In c
ount
ries w
ith d
evel
oped
cas
h an
d de
bt m
anag
emen
t cap
acity
In
cou
ntrie
s with
dev
elop
ed c
ash
and
debt
man
agem
ent c
apac
ity
dele
gate
d au
thor
ity is
a n
eces
sity
to p
erm
it m
anag
emen
t to
acce
sde
lega
ted
auth
ority
is a
nec
essit
y to
per
mit
man
agem
ent t
o ac
ces s
mar
ket
s mar
ket
oppo
rtuni
ties a
t sho
rtop
portu
nitie
s at s
hort
-- not
ice
with
out h
avin
g to
refe
r to
cabi
net t
o th
e no
tice
with
out h
avin
g to
refe
r to
cabi
net t
o th
e m
inist
er fo
r eve
ry d
ecisi
on.
min
ister
for e
very
dec
ision
.
How
to e
nsur
e lin
kage
s bet
wee
n ca
sh m
anag
emen
t and
H
ow to
ens
ure
linka
ges b
etw
een
cash
man
agem
ent a
nd
budg
et e
xecu
tion
budg
et e
xecu
tion
Impo
rtant
to e
nsur
e go
od c
omm
unic
atio
n lin
ks w
ith b
udge
t par
tici
Impo
rtant
to e
nsur
e go
od c
omm
unic
atio
n lin
ks w
ith b
udge
t par
tici p
ants
pa
nts
and
reve
nue
fore
cast
ers p
artic
ular
ly if
a se
para
te
and
reve
nue
fore
cast
ers p
artic
ular
ly if
a se
para
te D
MO
DM
Obe
ing
cons
ider
ed.
bein
g co
nsid
ered
.
Inst
itu
tion
al A
rran
gem
ents
In
stit
uti
onal
Arr
ange
men
ts
Issu
es t
o C
onsi
der
Issu
es t
o C
onsi
der
DM
OD
MO
’’ ssin
crea
singl
y ad
ding
cas
h an
d as
set
incr
easin
gly
addi
ng c
ash
and
asse
t m
anag
emen
t fun
ctio
ns
man
agem
ent f
unct
ions
––D
MO
DM
Ono
t the
onl
y m
odel.
not t
he o
nly
mod
el.
Who
shou
ld b
e re
spon
sible
for t
he d
iffer
ent e
lemen
ts
Who
shou
ld b
e re
spon
sible
for t
he d
iffer
ent e
lemen
ts
of c
ash
plan
ning
and
man
agem
ent
of c
ash
plan
ning
and
man
agem
ent -- s
houl
d on
e sh
ould
one
in
stitu
tion
be re
spon
sible
or sh
ould
it b
e sh
ared
in
stitu
tion
be re
spon
sible
or sh
ould
it b
e sh
ared
ac
ross
diff
eren
t ins
titut
ions
or u
nits
? ac
ross
diff
eren
t ins
titut
ions
or u
nits
?
Doe
s the
nee
d to
inte
grat
e ca
sh a
nd d
ebt
Doe
s the
nee
d to
inte
grat
e ca
sh a
nd d
ebt
man
agem
ent i
n a
sepa
rate
Inst
itutio
nal m
odel
man
agem
ent i
n a
sepa
rate
Inst
itutio
nal m
odel
outw
eigh
need
for i
nteg
ratio
n w
ith o
ther
ou
tweig
h ne
ed fo
r int
egra
tion
with
oth
er P
FMPFM
func
tions
?fu
nctio
ns?
Inst
itu
tion
al A
rran
gem
ents
In
stit
uti
onal
Arr
ange
men
ts
Issu
es t
o C
onsi
der
Issu
es t
o C
onsi
der
Inst
itutio
nal m
odel
is c
ount
ry sp
ecifi
c.In
stitu
tiona
l mod
el is
cou
ntry
spec
ific.
Goo
d lia
ison
and
shar
ing
data
/inf
orm
atio
n G
ood
liaiso
n an
d sh
arin
g da
ta/i
nfor
mat
ion
acro
ss o
rgan
izat
ion
boun
darie
s is c
ritic
al.
acro
ss o
rgan
izat
ion
boun
darie
s is c
ritic
al.
Cash
fore
cast
ing:
Ca
sh fo
reca
stin
g: M
oFM
oF, , B
IsBI
s , re
venu
e ag
ency
, tre
asur
y , r
even
ue a
genc
y, tre
asur
y et
cet
cA
ctiv
e D
ebt a
nd C
ash
Man
agem
ent
Act
ive
Deb
t and
Cas
h M
anag
emen
t --M
onet
ary
Mon
etar
y ag
ency
, pos
sibly
sub
agen
cy, p
ossib
ly su
b --na
tiona
l gov
ernm
ent
natio
nal g
over
nmen
t
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