The California Department of Motor Vehicles (DMV) is seeking a cash management solution to replace or reduce the current need for armored car and courier services, and a streamlined solution to the daily bank deposit and change services for our field offices in 2022.

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DMV has over 190 offices throughout California that accepts cash and check payments for DMV transactions. Currently, DMV has contracts with armored car and courier services to deliver the field offices’ daily deposits to the bank and provide change services for the offices. For fiscal year 2020/2021, the total dollar amount of cash and check deposited for field offices was $378,417,480.96 and $781,186,417.43 respectively. In addition, the annual total count of checks deposited was 1,011,685.  

The field office’s control cashier process of preparing and verifying the office cash and check deposits are time consuming. Due to time required for a control cashier to prepare a deposit, a field office may miss a scheduled morning armored car or courier pick-up. Daily armored car and courier services are also expensive and have not been reliable in remote locations.

This causes the issues listed below:

1. It is very difficult to replace any existing contracted armored car vendor for severe performance issues due to the limited vendor pool.
2. Many field office locations consistently experience armored car or couriers missing deposit pick up resulting in some locations requiring CHP escort to take their deposits to the bank.
3. Armored car services are not available when roads are closed, when there are weather issues, or staffing shortages due to the pandemic.
4. Armored car services need to follow their own route to pick up the deposits from different merchants and frequently miss the DMV office contracted scheduled pickup time.
5. Frequently missed services by armored car services creates a liability and safety issue for the office and delays the deposit from being processed and credited to DMV accounts in a timely manner.
6. It is time consuming to trace missing bank deposits. Accounting needs to contact different entities (i.e. bank, courier, armored carrier) for research and to request manifests, which logs every time deposits change hands.
7. When the field office run out of change, the office must wait for their scheduled change order request from the bank, which is an inconvenience and may affect operations.
8. The dispute process required by the armored car vendors to deduct the invoice amount for the missed service(s) is time consuming and requires a collaborative effort from ASD and FOD staff.

Ideas being considered: 

• Smart Safe

Requirements/Constraints:

1. The solution must allow DMV to transmit checks and cash to the bank electronically for deposit, crediting DMV accounts the next day, and provide a solution for dishonored checks.
2. The solution must allow DMV to auto-reconcile each field office’s checks and cash deposits to DMV deposit records, and seamlessly work with current systems and processes.
3. The solution must allow coin and currency deposits, and also allow the DMV to make withdrawals for change.
4. The solution must provide the functionality of automatic cash counting when inserted.
5. The solution must be able to detect counterfeit bills, and a streamlined mechanism to properly document and handle.
6. The solution must provide all transactions with a complete audit trail by office, including receipts, and reports for the office to balance their work.
7. The solution must have a secure feature to safeguard against theft.
8. The solution must have an alert feature for any discrepancies or questionable items.
9. The solution must have the ability to identify the individual performing the deposit/change process. Access must be restricted only to those assigned with the responsibilities to perform the authorized task.
10. The solution must separate daily DMV collections and change services.
11. The solution must have the capacity to hold enough change to last between scheduled pick-ups.
12. DMV must have the ability to control the cut-off time for the settlement process of our transactions.
13. Per DMV Accounting Manual 6.16.5 - Although the State Administrative Manual section 8032.1 states accumulated receipts of any amount will not remain un-deposited for more than five working days, the departmental policy is more stringent requiring daily collections to be submitted to the bank, courier service, or the armored car provider by the next work day.
14. Per DMV Accounting Manual 4.5 - Change will be made from the office change fund. The change fund and the collections must always be separate.