DISBURSEMENT METHODS - 8403

Agencies/Departments should use the most cost-effective means available to minimize the cost of disbursements. 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:

• Controller’s Warrants
• Revolving Fund Checks
• Automated Clearing House
• CAL-Card
• State Fleet Fuel Card

A warrant is 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 State Controller’s Office (SCO) prepares warrants and transfers for the payment of state expenditures. The SCO’s warrants are treated like bank checks.

The SCO issues payroll warrants, which 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/department’s fund(s). For information on payroll warrant distribution, see SAM Section 8580.

A Controller's Transfer authorizes an increase or decrease of cash between funds or appropriations without disbursing a warrant. The SCO settles "No Warrant" claims by an SCO journal entry to reduce the agency/department advance or a transfer if no advance was made.