To assist treasury staff in maximizing the earning potential of excess cash, an automated process exists to define participants into an investment pool account whereby excess cash in one or more cash balance sheets for a participant are swept into an investment pool account in return for asset balance in that pool. The accounting from this event does not use the standard cash posting code but one that is reporting-only so that payments can still be made as needed. This reporting posting code gives the investment staff of the treasury a daily total of what can be invested as the sweep should occur after all collections and all payments from the previous day have been recorded. That daily total is stored in the Pool History page for inquiry and is used by the Income Allocation process.
Participation can be in two different forms based on the cash account defined with the participant into a pool. If the cash account is one primarily used for the fund for disbursements and receipts then the participation is ‘passive’ as the sweep process will look to the balance in that account nightly for available cash for investing. If the cash account is not the primary one, then the participating fund has to ‘actively’ move cash into that account so that it can be swept for investing.