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NYS Comptroller

THOMAS P. DiNAPOLI

The Academy for New York State's Local Officials

Cash Management: A Tutorial for Local Governments and School Districts

Module 4: Monitoring Cash Balances

Identify Major Types of Revenues and Expenditures

After gathering all the information listed on the previous page, the next step in preparing a cash flow analysis is identifying major types of revenues and expenditures. The following list will assist you in assembling preliminary revenue and expenditure types:

Major Revenue Types:

  • Property Tax
  • Sales and Use Tax
  • Mortgage Tax
  • Departmental Income
  • User Fees
  • Federal and State Assistance
  • Other

Major Expenditure Types:

  • Payroll (net)
  • Withholding and Employee Benefits
  • New York State Retirement
  • Debt Service
  • Insurance
  • Utilities
  • Contractual Services/Supplies
  • Other

The next step is determining the timing of major revenues and expenditures, or when you expect major revenues and expenditures to be received or paid out, and the anticipated amounts. Recognizing and scheduling both recurring and nonrecurring items will guide you in estimating how much and when your cash will become available. Now you are ready to develop your cash flow analysis.

In developing your cash flow analysis, remember to review your historical data by month to find out what percentage each type of revenue and expenditure contributed to the monthly total. Try to develop some type of strategy for adjusting prior years' data to arrive at an estimate for the current period. For example, a review of actual sales tax revenue for the last four years shows sales tax revenues increased approximately 5 percent each year. Based on this historical trend, you could increase the previous year's receipts by 5 percent to reflect a realistic estimate of the amount to be received for the current period. In addition, you should adjust your analysis for new information stemming from economic downturns, or other extraordinary events.

  Next: Elements of a Good Cash Flow Analysis

  Go to Sample Six-Month Cash Flow Analysis