The State Treasurer’s Office, Financial Services Section (FSS) is responsible for managing the demand account banking functions of the Centralized Treasury System (CTS), meeting the cash liquidity needs of all State agencies/departments, and ensuring that all idle funds are invested daily. These goals are accomplished by 1) forecasting agency revenue collections and disbursements and their impact on the Treasurer's Pooled Money Investment Portfolio, and 2) using compensating balances to allow for the variances in cash flow that are a natural consequence when forecasting the movement of cash. Additionally, FSS keeps the depository accounts at the monthly average balance prescribed by the Pooled Money Investment Board (PMIB) as compensation to the banks for services provided and for uncollected funds deposited.
To manage the significant flows of money and to manage the financial needs of various State agencies/departments and the Local Agency Investment Fund participants, the FSS develops short-term cash forecasts by analyzing and projecting the following day’s financial activities, as well as, keeping up to date on any legislative and budgetary changes. The State Treasurer maintains demand bank accounts with seven banks for the purpose of providing necessary Statewide depository coverage for the remittance of funds collected by the various agencies/departments. In summary, the FSS is responsible for the following activities:
- Ensuring that all State money is cashiered and disbursed in accordance with the State’s laws and constitution
- Processing all federal Letters of Credit and reimbursements
- Paying of debt service on all issued State bonds
- Determining and funding the amounts available for investment daily
- Paying banks for presenting instruments drawn on the CTS
- Acting as support staff for the Pooled Money Investment Board (PMIB)