Objectives of a Collection System
The objectives of a collection system are to accelerate the receipt of available
funds, safeguard the government’s cash while it is in the government’s possession,
and keep banking costs to a minimum by having an appropriate
account structure and restricting the number of bank accounts managed by
outlying locations. To set up an effective collection system, governments
should understand the concept of float and how float affects the availability
of funds, and should produce timely and accurate reports.