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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

How to Begin

In order to assess whether or not you can improve your system, you first need to track where each department deposits and remits moneys it receives, as follows:

  • Which departments, if any, deposit receipts directly into the chief fiscal officer's (CFO's) bank account?
  • Which, if any, collect cash and checks and remit them directly to the CFO?
  • Which, if any, deposit receipts into their own bank accounts and then periodically remit money to the CFO?

This information enables you to pick the correct schedule to use in this analysis.

Second, you need to know what legal statutes pertain to your local government officials (departments) for the deposit and remittance of money. Document the legal statutes as follows:

  • How often money is required to be deposited into each department's own bank account
  • How often money is required to be deposited into the CFO's bank account
  • How often departments are required to remit money to the CFO.

Third, decide how often you want deposits and remittances to be made. Certain statutes allow a greater period of time before money is required to be deposited and remitted. Examples of some of these statutes for a town are as follows:

  • Town Law, §29 (2) requires that the supervisor deposit and secure all money in the official town bank account within 10 days after receipt.
  • Town Law, §27 requires that town officers or employees, other than the tax collector, remit money that is the property of the town to the CFO by the fifteenth of each month following its receipt.

Although the statutes above allow a greater period of time between receipt and deposit or remittance, speeding up these frequencies may benefit you. You could request that money be deposited daily and remittances be made at least twice a week to the CFO.

Fourth, ask department heads to prepare one or more of the following schedules (click on the link to go to examples and worksheets pertaining to each schedule):

Departments Depositing Directly into the CFO's Account: A schedule showing the date of receipt and the date of deposit for each receipt. This schedule also shows the difference between the date of receipt and date of deposit, and how often you expect the receipts to be deposited.

Departments Depositing Directly into their own Accounts: A schedule showing how often money is deposited. This schedule also shows the difference between how often money is expected to be remitted and how often it is actually remitted.

Departments Remitting Directly to the CFO: A schedule showing the date of receipt and date of remittance to the CFO for a specific period of time. This schedule also shows the difference between the date of receipt and date of remittance to the CFO, and how often you expect money to be remitted to the CFO.

  Next: Departments Depositing Directly Into the CFO's Account