DISBURSEMENT METHODS - 8403

The agency/department disbursement processes should minimize the cost of making disbursements by using the most cost-effective means available. To optimize cash management, agencies/departments should minimize early payments unless the early payments result in vendor discounts. The state disburses funds using the following methods:

• Treasury Warrants
• Revolving Fund Checks
• Wire Transfers 
• Automated Clearing House
• CALCARD
• State Fleet Fuel Card
• Electronic Benefit Transfer (EBT)

The State Controller’s Office (SCO) prepares (1) Controller's Warrants and (2) Controller's Transfers for the payment of State expenditures. The SCO’s warrants are treated like bank checks. Governmental Accounting, Auditing and Financial Reporting (GAAFR) defines a warrant as "an order drawn by the legislative body or an officer of a government upon its treasurer directing the latter to pay a specific amount to the person named or to the bearer."

The SCO’s payroll warrants are supported by the Payroll Warrant Register. The SCO disburses payroll warrants from the State Payroll Revolving Fund after the transfer has been made from the agency’s/department’s fund(s).