Copyright © 2002 NLThomas
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TAHLEQUAH, OK - The Cherokee Nation has announced a temporary hiring freeze for positions that do not provide direct services to the Cherokee people.

"With the poor economy and projected federal budget cuts, now is the time to tighten our belts", said Principal Chief Chad Smith. "Eighty-five percent of our budget goes to direct services, and this temporary hiring freeze impacts only the remaining 15%. Current personnel are not affected, but we are taking steps to curtail our administrative and support expenses."

To further minimize the impact any federal cuts may have on direct services to the Cherokee people, the Cherokee Nation is taking steps to streamline its internal cash management structure and improve cash flow.

Under the current system, the Cherokee Nation pays all of its bills out of the General Fund. Federal programs then reimburse the Cherokee Nation for the actual money expended.

"In essence, we are advancing the federal government a loan until they pay us back", Smith said.

In most cases, the advance is repaid in three or four days, but sometimes it may take months. With tough times looming nationwide, the Cherokee Nation is decreasing the turnaround time on those loans to the federal government.

The Cherokee Nation is also billing the federal government weekly, rather than monthly, for all services provided, to improve cash flow, as well as speeding up internal repayments to the General Fund from all programs. The Cherokee Nation is also reducing travel and postponing capital expenditures for non-federal programs.

"We are within our budget, but we have to be careful with every penny", Smith said.

The Cherokee Nation still has large reserves of money for federal programs, as well as settlements from lawsuits and revenue earned from tribal businesses, but has chosen to reserve that money for direct services and not to use that money to pay for these administrative costs.

The Cherokee Nation has prioritized sound fiscal management over the last two and a half years, with clean and timely audits being the rule. The tribe’s new cash management policies are being implemented to make sure the Cherokee Nation is ready for whatever the future holds.

"The best time to chop wood is in the summer", Smith said.