Bank Reconciliation Section
The State Treasurer’s Office, Bank Reconciliation Section (BRS) reconciles all deposits made by various state agencies/departments into the Centralized Treasury System (CTS) accounts. BRS ensures that all financial activities are accurately and timely posted by the State depository banks; and manages the Electronic Fund Transfer, Miscellaneous Sort Deposit and Electronic Check Image Deposit programs which are designed to expedite the processing of State revenue.
Electronic Fund Transfer Program
The Electronic Fund Transfer (EFT) Contract is managed by CTSMD on behalf of major revenue collecting agencies and is currently held by US Bank. EFT is an electronic method for making payments to State agencies/departments. Banks, corporations, and individuals must use EFT to pay certain taxes if their quarterly estimated tax payment or extension payment exceeds $20,000 or if their total tax liability exceeds $80,000.
If a taxpayer does not meet the mandatory EFT requirement, they can still file by EFT on a voluntary basis as it is a secure, efficient, and cost-effective method to make payments. Under the EFT Program, funds are transferred from the taxpayer’s bank account to the State’s bank account. Payment information is transmitted to the appropriate tax collecting agency, eliminating the need to send a paper check and payment documentation.
Miscellaneous Sort Deposit Program
The Miscellaneous Sort Deposit Contract is managed by CTSMD and is currently held by BMO Bank. Under this program, BMO Bank acts as a depository for daily Miscellaneous Sort check deposits for the State’s presorting agencies (these are the major revenue collecting agencies). The State’s major revenue collecting agencies presort their checks by the bank on which they are drawn to expedite the availability of funds and to reduce or eliminate float. Checks which are not drawn on one of our depository banks, are grouped as miscellaneous and processed by the bank that holds the contract at the negotiated float factor.
Electronic Check Image and Deposit Programs
The State Treasurer's Office (STO) supports the implementation of Image Cash Letter (ICL) and Remote Site Deposit (RSD) processing for check imaging and making deposits into the CTS.
This technology removes the need to physically transport deposits to a bank, allows agencies to view deposit images online, and provides accurate electronic deposit information for invested funds. Electronic images and deposits are less costly to process than manually processed deposits. In addition, the system helps avoid missed deposit cut-off times by permitting deposits to be made up until 8 p.m. Pacific Time for same-day ledger credit.
The ICL process should be used by agencies with a high daily volume of 1,000 or more checks for deposit. The RSD process should be used by agencies that deposit any amount of checks up to 1,000 checks daily.
The STO will serve as the liaison between State agencies and depository banks during implementation of ICL or RSD. Agencies should contact BRS for more information.