The Academy for New York State's Local Officials

Cash Management

A Tutorial for Local Governments and School Districts


The purpose of this section is to provide ideas as to where disbursement systems can be improved. There are various ways of controlling the timing of your disbursements.

Advantages to operating an effective disbursement system include:

  • Aggregate cash position is more easily calculated.
  • Idle cash balances are reduced and the availability of funds increases.
  • Bank and internal costs are reduced.
  • Multiple payments to a single vendor during a month are eliminated.

To help you to discover whether your local government or school district can improve the timing of disbursements, a self-assessment questionnaire, which can be taken at any time, is provided for this topic. The results will allow you to focus on the practices that will provide the best opportunities for improvement. There are also links to an overall discussion and the most important concepts and ideas pertaining to this topic.