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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

Recap

In summary, you can enhance your system by speeding up collections and reducing the number of days between collections and deposits or remittances. Opportunities for speeding up collections also include receiving your major revenues by electronic funds transfer, using a lock box service, and changing billing cycles for user charges.

The potential for additional interest earnings will vary from unit to unit due to the significance of deposits and related interest rates. No matter where the money is deposited, the main objective is to get the money into higher yielding investments as soon as possible. The best way to do this is to establish written procedures for receipts and deposits and periodically to review each department to ensure that the procedures are being followed.

Remember - The faster the collection and deposit of receipts, the quicker the access to the funds, which increases interest earning opportunities!

  Next: Module 2 - Timing of Disbursements