Summary

GAO evaluated the economy and efficiency of the banking, cash management, and short-term investment operations of the District of Columbia government.

In general, the District has a sound cash management system and utilizes bankwire, lockbox, and other auxiliary services and maximizes the investment of idle funds. However, GAO found that there were several areas where cash management could be improved. The wide range of bank service charges indicated that the District may be paying inappropriate prices to some banks. Competitive bidding for banking services is a good cash management tool for obtaining the best price for the services. Cash forecasting is made difficult by inadequate information and control over anticipated cash receipts.