CASH MANAGEMENT IMPROVEMENT ACT - 8010

The Cash Management Improvement Act of 1990 (CMIA) is to ensure efficiency, effectiveness, and equity in the exchange of funds between the states and the federal government for federal assistance programs.

The CMIA was enacted by Public Law 101-453, codified at Title 31 U.S. Codes 3335, 6501, and 6503. The federal regulations for implementing CMIA are outlined in Title 31 CFR Part 205.

The general provisions of CMIA are as follows:

• Federal agencies must make timely fund transfers and grant awards to state agencies/departments.
• State agencies/departments must minimize the time between the deposit of federal funds in the state's account and the disbursement of funds for federal assistance program purposes.
• The state is entitled to interest from the federal government from the time state warrants are redeemed until federal funds are deposited in the state's account.
• The federal government is entitled to interest from the state from the time federal funds are deposited in the state's account until the state warrants are redeemed.