The Academy for New York State's Local Officials

Cash Management

A Tutorial for Local Governments and School Districts

Effective Timing of Disbursements

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)