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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 1: Speeding Up the Collection and Deposit of Receipts

Departments Depositing Funds Directly Into Their Own Accounts

Improving cash management starts by assessing your current and potential interest earnings. The schedule to be used to do this depends on how money is deposited. This section of the tutorial pertains to departments that deposit funds directly into their own accounts and then remit them to the CFO.

If your local government does not handle deposits in this way, click on the appropriate link below to get the schedules you need:

Departments Depositing Directly into Their own Account: The schedule shows how often money is deposited and later remitted to the CFO. This schedule also shows the difference between how often money is remitted and how often it is expected to be remitted.

The example illustrates potential interest earnings for a department head depositing funds into his/her own account and remitting it to the CFO. Often, we find in smaller units that department heads remit money to the CFO approximately twice a month. If money is remitted to the CFO more frequently, the CFO could invest these funds in short- or long-term certificates of deposit earning a higher rate of interest.

Step 1: Choose a specific period to review the departments (e.g., a three-month period).

Step 2: Determine how often you expect each department to remit money to the CFO (e.g., every three days).

For the period reviewed, base your potential interest earnings on the investment yielding the highest rate of return (e.g., the most recent interest rate from a certificate of deposit).

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