What are the rules and regulations covering cash management in local government?

Answer 1

These are generally outlined by state statutes with possible additional county or local regulations. Generally speaking, government is held to a high standard of accountability and transparency in their accounting practices. The utmost care should be taken in cash management.

If you would like to see an example, check out the budget and annual reports at this city government's website:
http://www.gocolumbiamo.com/Finance/Services/Financial_Reports/