Cash Management Improvement Act of 1988

(Measure passed Senate, amended)

Cash Management Improvement Act of 1988 - Authorizes the Secretary of the Treasury to collect a charge from each executive agency that does not comply with regulations regarding the timely disbursement of Federal funds through cash, checks, electronic funds transfer, or any other means prescribed by the Secretary. Requires the deposit of such charges in the Treasury. Provides that such charges shall, to the maximum extent possible, be paid out of appropriations available for agency operations and shall not reduce program funding levels.

Requires States and Federal agencies to minimize the time elapsing between transfer of funds from the Treasury and the issuance or redemption of checks, warrants, or payments by other means.

Directs the Secretary to issue regulations requiring a State, when not inconsistent with program purposes, to pay interest on funds from the time of deposit until disbursement. Requires the Government to pay interest to a State that disburses its own funds under a Federal program. Requires the budget submitted by the President to include a statement of such interest payments.

Requires States that receive refunds of funds to return such refunds to the executive agency administering the grant program or apply such funds to reduce the amount of funds owed to the State under the grant program. Requires States to account for grant money made available to them as U.S. Government grant money in the accounts of the State.

Provides for periodic audits of the implementation of this Act.

Directs the Secretary to study and make recommendations concerning standards for the establishment of lockbox systems for executive agencies. Defines such a system as the use of locked post office boxes for the receipt of payments. Sets forth a schedule for the implementation of such a system.