Auditor Opinion on Whether Cash and Check Bid Deposits Should Be Deposited

In my blog posting of  February 13, 2013, I referenced RCW 43.09.240 that seems to require that bid guaranties on public works projects in the form of cash or check (certified or cashier's) should be deposited within 24 hours of receipt instead of keeping the bid guaranty and returning it to the bidder after a contract has been executed.

State Auditor's opinion:  A handful of blog readers asked whether the State Auditor's Office had weighed in on whether this was a correct interpretation of state law.  By email, the Auditor's Office recently responded to the Municipal Research and Services Center (MRSC), who had asked the same question I had asked of them.

Here's the response that MRSC received from Scott Bills, Assistant Audit Manager, on May 7, 2013:  

"Yes, cash should be deposited and checks should be cashed upon receipt and a new check issued to the bidders not awarded the contract.  It is a good internal control.  How else would the entity know whether the funds were actually in the bank or not unless the check is cashed?"

Mike Purdy's Public Contracting Blog 
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