Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment Cash management consists of taking the necessary actions to maintain adequate levels of cash to meet operational and capital requirements and to obtain the maximum yield on short-term investments of pooled, idle cash. A good cash management program is a very significant component of the overall financial management of a municipality. Such a program benefits the city or town by increasing non-tax revenues, improving the control and superintendence of cash, increasing contacts with members of the financial community and lowering borrowing costs, while at the same time maintaining the safety of the municipality's funds. The primary goals of a good cash management system are: · To maintain adequate monies at hand to meet the daily cash requirements of the municipality while maximizing the amount available for investment. · To obtain the maximum earnings on invested funds while ensuring their safety. In order to reach these primary goals, a management should strive to: · Develop strong, internal control of cash receipts and disbursements. · Establish improved procedures for collecting outstanding taxes. · Establish clear lines of communication between the management and department heads. · Develop solid professional relationships with local bankers and other members of the investment community. Elements of an Effective Cash Management Program The management should strive to be constantly aware of the range of services available from area banks. Since banks' service charges and investment rates vary, the management should regularly evaluate the charges and rates of the banks used by the municipality to make certain that continuing to utilize these banks best serves the interests of the municipality. When selling bonds or notes, the management should endeavor to receive a sufficient number of bids to ensure competitive rates for the borrowed funds. Whether borrowing or investing monies, the management should solicit bids from at least 3 area banks. Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
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Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
As a component of implementing an effective cash management program, the management must prepare a cash flow statement, also called a cash budget. Cash budgeting involves the estimation of cash receipts and cash disbursements to determine cash availability. A management can best identify the municipality's major cash items by examining an annual budget, payment and collection records and past cash flow patterns. Let us discuss the parts of cash flow statements
WHAT IS CASH? . WHAT IS CASH FLOW? POSITIVE CASH FLOW NEGATIVE CASH FLOW WHAT ARE THE COMPONENTS OF CASH FLOW? Operating Cash Flow Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment |
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| Funny Picture, Video, wallpaper, games Free Study Material For Student Investing Cash Flow Financing Cash Flow Cash Flow Statement The cash flow statement is designed to convert the accrual basis of accounting used to prepare the income statement and balance sheet back to a cash basis. This may sound redundant, but it is necessary. The accrual basis of accounting generally is preferred for the income statement and balance sheet because it more accurately matches revenue sources to the expenses incurred generating those specific sources. However, it also is important to analyze the actual level of cash flowing into and out of the business. Like the income statement, the statement of cash flow measures financial activity over a period of time. And the cash flow statement also tracks the effects of changes in balance sheet accounts. The cash flow statement is one of the most useful financial management tools you will have to run your business. The cash flow statement is divided into four categories: Net cash flow from operating activities: Operating activities are the daily internal activities of a business that either require cash or generate it. They include cash collections from customers; cash paid to suppliers and employees; cash paid for operating expenses, interest and taxes; and cash revenue from interest dividends. Net cash flow from investing activities: Investing activities are discretionary investments made by management. These primarily consist of the purchases (or sale) of equipment. Net cash flow from financing activities: Financing activities are those external sources and uses of cash that affect cash flow. These include sales of common stock, changes in short- or long-term loans, and dividends paid. Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment |
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| Funny Picture, Video, wallpaper, games Free Study Material For Student Net change in cash and marketable securities: The results of the first three calculations are used to determine the total increase or decrease in cash and marketable securities caused by fluctuations in operating, investing and financing cash flow. This number is then checked against the change in cash reflected on the balance sheet from period to period to verify that the calculation has been done correctly. Estimating Collection Receipts By reviewing a accounting records, a management can determine the pattern of receipts. To assist in determining this pattern, the management should develop a table that displays: (1) the type of each receipt, (2) the total amount of the receipt and (3) the month when each portion of the receipt was received. The management should assess the historical patterns of these cash flows in light of current estimates and events. Although making adjustments for changing time environments is uncertain business, attempting to make such adjustments should improve a collections forecast. The expenditures tend to be relatively constant; accordingly, they can be reliably predicted. A management should use prior expenditure records, together with the next fiscal year's budget, to calculate the amount of the annual payroll. The gross payroll, however, is not the amount disbursed. Rather, the amount disbursed is the gross payroll amount less deductions for federal and state income taxes and for fringe benefits, such as workers compensation and retirement. The payroll disbursement forecast should also include adjustments for seasonal or temporary workers and for seasonal payments, such as vacation advances in the summer months. If a municipality offers a lump sum payment option for teachers, the payments are disbursed at the end of the school year. Disbursement of monies previously withheld for income taxes and for employee benefits constitutes a significant payment by a municipality. To forecast the amount of this disbursement for some discrete period, such as from July 1 through January 1, the management must add all of the deductions from a weekly or biweekly payroll and multiply the sum by the number of pay periods falling within the designated time period. After completing the payroll disbursement forecast, the management should develop forecasts for other kinds of payments. The management might begin by analyzing each departmental budget for non-payroll items and then focusing on the more expensive items first. For each item, the management should converse with the departmental officials familiar with expenditures to discover the pattern of past cash disbursements with respect to that item and the anticipated pattern and amount of expenditure for the item for the upcoming year. The management, based upon a greater familiarity with the timing and volume of cash outflows, should ensure that these patterns and expenditure projections are reasonable. Funny Picture, Video, wallpaper, games Free Study Material For Student |
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Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
Analyzing Cash Flow and Preparing a Budget A management should prepare cash flow data on a monthly basis for the current year. In larger communities, the management should compile cash flow information more frequently, on a daily, weekly, or biweekly basis, depending on the size of the community. The management should prepare cash flow summaries using two basic categories of inflows and outflows of cash, recurring and extraordinary. Recurring payments and receipts, such as payroll expenses and property taxes payments, can be anticipated regularly, month after month; extraordinary payments and receipts, on the other hand, result from nonrecurring programs or items, such as federal grants or capital expenditures. The management should use the history of major collections and disbursements for the previous 3 to 5 years to identify recurring expense and disbursement patterns. The management should then extrapolate these past trends into the future, being careful, at the same time, to make adjustments for anticipated changes in timing and payment patterns and to recognize when particular historical data is not representative. Suggestions for Improving Cash Flow The management can maximize the amount of a available cash by accelerating cash receipts. A management can increase the available cash amount by: · Making daily deposits. · Using a lock box. · Applying promptly for reimbursement of amount. · Utilizing, direct deposits, Automated Clearing House payments, and other electronic means of transferring funds, whenever possible, making sure that the appropriate safeguards are in effect. · Effectively Investing Available Cash the management invest all monies not required for current operations so as to receive the highest rate of return reasonably available taking into account safety, liquidity and yield. To maximize interest income, the management must determine how much money is available to invest by answering the following questions: · How much cash is on hand? · How much money is needed to meet weekly or monthly warrants? · How much money will be deposited weekly or monthly? The management should use the answers to these questions as a basis for planning investments. By maintaining a chart of deposit accounts, adding the daily deposits to these accounts, and subtracting amounts transferred or paid on warrants, the management can determine exactly how much cash is available to invest. Furthermore, the cash flow budget will permit the management to determine the length of time for which particular funds can remain in investments. Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
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Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
An investment is a placement or commitment of money or capital in a way intended to gain profit or interest, as by purchasing property, securities or bonds. As noted above, managements are compelled to invest "all monies…not required to be kept liquid for purposes of distribution…in such a manner as to require the payment of interest on the money at the highest possible rate reasonably available, taking account of safety liquidity and yield." Liquidity is the quality of being readily convertible into cash without substantial transaction costs. Security is the quality of assurance that the investment expectation will be fulfilled in a timely fashion. Yield is the measure of effective return on an investment, usually expressed as a percent. Many communities maintain written investment policies that serve as a guideline in making investments of short-term funds. These policies delineate investment procedures and considerations and define levels of acceptable risk. Frequently, the policies identify the financial institutions that have satisfied the community's criteria for secure deposits. In addition, the policies generally include specific information about delegation of authority, internal controls, ethics and conflict of interest. Ultimately, the standard to which a management is held in making investments is the "prudent person" standard. A management should always remember to weigh the risk of financial loss when making municipal investments. When investing a municipality's money, the management should carefully avoid high-risk or speculative investments, even if legally permitted. identify the various institutions into which municipal funds may be deposited. A management who deposits monies into these institutions will not be personally liable for any loss of money due to the failure of the institutions. Notwithstanding, a prudent management must make certain that deposits and investments are sufficiently insured, adequately collateralized and invested in institutions that have been researched for stability and safety. A Certificates of Deposit, generally known as a CD, is a written acknowledgement by a commercial bank, savings and loan institution or mutual savings bank containing a promise to pay interest at a specified rate for a fixed period of time for funds deposited in the institution. CDs provide a useful instrument for short-term investments, usually more than 7 days. They are available in almost any denomination, although most have a minimum amount. The bank pays interest on the certificate's face value, and the interest accrues on a 360-day or 365-day basis. Rates vary depending on the length of time for which the certificates are issued, the amount of money deposited and the prevailing market rate. Rates also vary among banks, making it important for managements to obtain quotes from a number of banks before making a purchase. Treasury bills are bearer obligations of the Government that are issued on a discount basis; that is, a purchaser buys the instruments at less than the face value and receives the face value upon redemption. The difference between the purchase price and the redemption price is the interest income. Treasury bills are backed by the full faith and credit of the Government and are considered the safest investment. Because of their relative safety and marketability, T-Bills, as they are called, generally provide lower yields than do comparable short-term investments. Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
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Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
A repurchase agreement, also known as a "repo" or a "buyback," is a contract that requires a seller of securities, most often treasury securities, to buy the investment back in the future at a designated time and price. An advantage of this investment vehicle is the flexibility of its maturity. A repo may be sold for a fixed period of time, on demand, or renewable on a day-to-day basis. The management invest in repurchase agreements is set out in This statute permits the management to invest in "obligations issued or unconditionally guaranteed by the United States government or any agency thereof and having a maturity from date of purchase of one year or less, or in United States government securities or securities of United States government agencies purchased under an agreement with a trust company, national bank or banking company to repurchase at not less than the original purchase price of said securities on a fixed date, not to exceed ninety days." However, while repose offer flexibility in maturity dates, they are not without risk. In the past, some banks have used the same security for several, simultaneous repurchase agreements. Accordingly, when investing in a repo, the management should make certain to take possession of the underlying security or to receive written notification of the transaction from a third-party trustee who holds the security on behalf of the municipality. In this way, the municipality will be protected in the case of a bank default. Money Market Deposit Accounts (MMDAs) A money market account is a savings account that shares some of the characteristics of a money market fund, a mutual fund that invests solely in short-term securities. These accounts, like other saving accounts, are insured by the Federal government Banks generally place restrictions on money market accounts. The restrictions usually include: A minimum daily balance requirement, with an interest rate reduction if the balance falls below this minimum. A limit on the number of withdrawals, such as 6 per month with a maximum of 3 checks. Under such a limit, a depositor could, for example, write 3 checks and make 3 withdrawal transfers in a month. Alternatively, the depositor might write 2 checks and make 4 withdrawal transfers and two checks, etc. Primary markets allow investors to bid directly for the purchase of securities with issuers and, as a result, tend to provide more favorable prices. Secondary markets permit investors to purchase securities at other times than their issuance dates or to sell securities prior to their maturity dates. General economic conditions affect interest rates, which in turn determine the market behavior of securities in both primary and secondary markets. Confidence in a particular security can also affect its behavior. Confidence is determined by an investor's perception of the financial health of an institution or the collateral behind a security. It tends to be most important in determining the strength and activity of a security in the secondary market. Funny Picture, Video, wallpaper, games Free Study Material For Student Free Tips How To Earn Money Online Without Any Investment
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Organizing and Staffing The Project Office INTRODUCTIONThe staff of project consists of the project manager, the project office (whose members may or may not report directly to the project manager), and the functional or interface members Successful project management is only as good as the individuals and leaders who are managing the key functions. A project requires a group of individuals dedicated to the achievement of a specific goal. Project management includes: . A project manager . An assistant project manager . A project (home) office . A project team Project office personnel are assigned full-time to the project and work out of the project office, whereas the project team members work out of the functional units and may spend only a small percentage of their time on the project. Before the staffing function begins, five basic questions are usually considered: [1] What are the requirements for an individual to become a successful project manager? [1] Who should be a member of the project team? [1] Who should be a member of the project office? [1] What problems can occur during recruiting activities? [1] What can happen downstream to cause the loss of key team members?
THE STAFFING ENVIRONMENT
Before staffing the project office we must understand the characteristics of project management, including the project environment, the project management process, and the project manager. Two major kinds of problems are related to the project environment: personnel performance problems and personnel policy problems. Performance is difficult for many individuals in the project environment because it represents a change in the way of doing business. Individuals, regardless of how competent they are, find it difficult to adapt continually to a changing situation in which they report to multiple managers.
On the other hand, many individuals thrive on temporary assignments because it gives them a "chance for glory." Unfortunately, some employees might consider the chance for glory more important than the project. For example, an employee may pay no attention to the instructions of the project manager and instead perform the task his own way. In this situation, the employee wants only to be recognized as an achiever and really does not care if the project is a success or failure, as long as he still has a functional home to return to where he will be identified as an achiever with good ideas The second major performance problem lies in the project–functional interface, where an individual suddenly finds himself reporting to two bosses, the functional manager and the project manager. If the functional manager and the project manager are in agreement about the work to be accomplished, then performance may not be hampered. But if conflicting directions are received, then the individual may let his performance suffer because of his compromising position. In this case, the employee will "bend" in the direction of the manager who controls his purse strings. |
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Personnel policy problems can create havoc in an organization, especially if the "grass is greener" in a project environment than in the functional environment. Functional organizations normally specify grades and salaries for employees. Project offices, on the other hand, have no such requirements and can promote and pay according to achievement. The difficulty here is that one can distinguish between employees in grades 7, 8, 9, 10, and 11 in a line organization, whereas for a project manager the distinction might appear only in the size of the project or the amount of responsibility. Bonuses are also easier to obtain in the project office but may create conflict and jealousy between the horizontal and vertical elements. Because each project is different, the project management process allows each project to have its own policies, procedures, rules, and standards, provided they fall within broad company guidelines. Each project must be recognized as a project by top management so that the project manager has the delegated authority necessary to enforce the policies, procedures, rules, and standards. Project management is successful only if the project manager and his team are totally dedicated to the successful completion of the project. This requires each team member of the project team and office to have a good understanding of the fundamental project requirements, which include: [1] Customer liaison [1] Project direction [1] Project planning [1] Project control [1] Project evaluation [1] Project reporting Ultimately, the person with the greatest influence during the staffing phase is the project manager. The personal attributes and abilities of project managers will either attract or deter highly desirable individuals. Basic characteristics include: [1] Honesty and integrity [1] Understanding of personnel problems [1] Understanding of project technology [1] Business management competence [1] Management principles [1] Communications [1] Alertness and quickness [1] Versatility [1] Energy and toughness [1] Decision-making ability [1] Ability to evaluate risk and uncertainty |
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Selecting the project manager The most important decision made by upper-level management is the selection of project managers. Some managers work best on long-duration projects where decision making can be slow; others may thrive on short-duration projects that can result in a constant-pressure environment. A director was asked whom he would choose for a key project manager position—an individual who had been a project manager on previous programs in which there were severe problems and cost overruns, or a new aggressive individual who might have the capability to be a good project manager but had never had the opportunity. The director responded that he would go with the seasoned veteran assuming that the previous mistakes would not be made again. The argument here is that the project manager must learn from his own mistakes so they will not be made again. The new individual is apt to make the same mistakes the veteran made. However, this may limit career path opportunities for younger personnel. He must not only keep track of what is happening but also play the crucial role of advocate for the project. Even for a seasoned manager, this task is not likely to be easy. Hence, it is important to assign an individual whose administrative abilities and skills in personal relations have been convincingly demonstrated under fire. Selection process for project managers The selection process for project managers is not easy. Five basic questions must be considered:
Project management cannot succeed unless a good project manager is at the controls. It is far more likely that project managers will succeed if it is obvious to the subordinates that the general manager has appointed them. Usually, a brief memo to the line managers will suffice.
Responsibilities of the project manager The major responsibilities of the project manager include:
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interface, resource, and planning and control management. These implicit responsibilities are shown below: . Interface Management . Product interfaces —Performance of parts or subsections —Physical connection of parts or subsections . Project interfaces [1] Customer [1] Management (functional and upper-level) [1] Change of responsibilities [1] Information flow [1] Material interfaces (inventory control) [1] Resource Management [1] Time (schedule) [1] Manpower [1] Money [1] Facilities [1] Equipment [1] Material [1] Information/technology [1] Planning and Control Management [1] Increased equipment utilization [1] Increased performance efficiency [1] Reduced risks [1] Identification of alternatives to problems [1] Identification of alternative resolutions to conflicts SKILL REQUIREMENTS FOR PROGRAM MANAGERSManaging complex programs represents a challenge requiring skills in team building, leadership, conflict resolution, technical expertise, planning, organization, entrepreneurship, administration, management support, and the allocation of resources. This section examines these skills relative to program management effectiveness. A key factor to good program performance is the program manager's ability to integrate personnel from many disciplines into an effective work team. To get results, the program manager must relate to (1) the people to be managed, (2) the task to be done,(3) the tools available, (4) the organizational structure, and (5) the organizational environment, including the customer community. With an understanding of the interaction of corporate organization and behavior elements, the manager can build an environment conducive to the working team's needs. The internal and external forces that impinge on the organization of the project must be reconciled to mutual goals. Thus the program manager must be both socially and technically aware to understand how the organization functions and how these functions will affect the program organization of the particular job to be done. In addition, the program manager must understand the culture and value system of the organization he is working with. Effective program management is directly related to proficiency in these ten skills:
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