Centralized Treasury and Securities Management Division
Financial Services
The primary responsibilities of the Financial Services Section (FSS) are managing the demand account banking functions of the Centralized Treasury System (CTS), through which we managed approximately $2.9 trillion in transactions this past fiscal year; meeting the cash liquidity needs of all State agencies and 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, the FSS keeps these accounts at the monthly average balance prescribed by the Pooled Money Investment Board (PMIB) as compensation to the banks for services provided and 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. In summary, the FSS is responsible for the following activities:
- Ensuring that all State funds are cashiered and disbursed in accordance with the State’s laws and constitution
- Processing all federal Letters of Credit, and reimbursements
- Wire transfers of funds from the State’s demand accounts
- Payment of debt service on all issued State bonds
- Determining and funding, daily, the amounts available for investment; and
- Paying banks presenting instruments drawn on the CTS.
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 State agencies. Currently, the State Depository Banks are:
- Bank of America
- BMO Bank, N.A.
- Citibank
- JP Morgan Chase
- U. S. Bank
- Wells Fargo Bank
- WestAmerica Bank