An effective disbursement system should include the following goals:
- Reduce the amount of idle cash balances.
- Avoid late fees and take advantage of discounts offered by vendors.
- Reduce the net cost of processing disbursements.
Three simple practices that local governments can consider to achieve these goals are:
- Examine the Timing of Vendor Payments
- Examine Your Payroll Schedule
- Use Direct Deposit and Electronic Funds Transfer (EFT)