Cash management practices in business operations

Cash Flow Management

Cash Management Practices in Arizona Parks and Recreation

The key to keeping any business, public or private, alive is to ensure that the available funds are properly allocated and that the amount spent monthly is less than or equal to the amount available. When it comes to state-run entities, one essential factor that each agency must take into account is their limited budget and the necessary holdings for any and all risks associated with that vein of the state (Office of Financial Management, 2010). One such agency that of late has constantly struggled with meeting its cash management goals is the Arizona Parks and Recreation. The primary focus of this analysis will review the park's specializations, risk allocations, and staffing practices.

The Arizona parks and recreation is responsible for the care of all state parks and community centers. Additionally, the division is responsible for events held within the parks, parades, and other public community events (Arizona Parks and Recreation). Among these specializations is the ability to keep the parks clean and functional, improve existing fixtures as needed within the parks, repair any damage to the parks, and in many instances allocate partial funds to the rebuilding of emergency damaged areas.

Along with the standard areas of management, the division must also allocate funds for any crisis that may happen along the way (Office of Financial Management, 2010). Over the past decade, the Arizona Department of Parks and Recreation has dealt with crisis ranging from stranded hikers to serious forest fires. As the duration of and expenses associated with certain crisis increased, so did the division's need to allocate funds properly and, in many cases, seek restitution for the citizen who caused the crisis. With the decreased tax dollars allocated to the parks it is no wonder that such measures were necessary to keep the department afloat. For example, when a hiker becomes stranded on one of the hiking trails in the parks, the department will organize the rescue attempt, but the hiker will receive the bill for the services. Forest fires are among the most expensive risks that the Arizona Parks and Recreation must anticipate. In fact, the department spends millions annually thinning and clearing dried debris to attempt to prevent the annual blazes (Huffman, 2004). These funds must be earmarked and allocated from the existing funds that the park service raises.