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The State Treasurer has wide ranging responsibility for management of the state’s
financial resources. As the chief fiscal officer, the State Treasurer is
responsible for keeping the books and managing taxpayers’ money from the time it
is collected in taxes until it is spent on programs funded by the Legislature.
The Office of the State Treasurer provides banking, cash management, investment, debt
issuance, and accounting services for state government and plays a major role in
providing financial services to local governments.
Serves the employees of the agency. Establishes the agenda for the long-term
operation of the agency by:
- Developing and directing agency policy;
- Allocating resources to implement policy directives;
- Representing the agency before the Legislature and the public;
- Ensuring compliance with relevant regulations, restrictions, and directives of the
legislative and executive branches; and
- Representing the state in various financial relationships.
[Investment Section Page]
The Investments Section of the Office of the State Treasurer serves state agencies and
the citizens of the state. The section invests the state’s short-term cash reserves
for maximum return by:
- Investing and reinvesting cash balances in a manner consistent with the safety and
liquidity requirements for these funds as well as maximizing the earnings on temporary
surplus funds in accordance with statute;
- Investing funds with state financial institutions for the Treasurer’s Time
Certificate of Deposit and Linked Deposit programs which are designed to promote state
economic activity;
- Contracting with financial institutions for securities custody services and coordinating
investment transactions between the broker dealers and the master custody provider;
- Calculating the maximum allowable usury interest rate applicable under statute;
- Communicating with local governments and assisting them with investment problems and
questions; and,
- Reporting to the Revenue Forecast Council, Office of Financial Management, and other
agencies on projected investment income.
[LGIP Page]
The Local Government Investment Pool serves more than 400 local government cash
managers. It allows local governments to utilize the expertise of the Treasurer’s
Office investment staff and the economies of scale inherent in the securities market. The
pool provides flexibility for cash managers and offers competitive rates of return while
maintaining safety of the funds. The Office of the State Treasurer administers the pool
by:
- Prudently investing and managing the funds on deposit;
- Ensuring accurate input and execution of all deposit and withdrawal transactions;
- Communicating with local governments and assisting them with investment problems and
questions;
- Providing timely reporting to local governments, including monthly statements, a
quarterly newsletter, and annual financial reports; and
- Providing reporting services to local government, the State Auditor’s Office,
Governor’s Office, and the Legislative Budget Committee.
[Debt Management Page]
Serves the State Finance Committee, bond holders (institutional and retail investors),
state agencies, local governments, and the citizens of the state. Provides financing recommendations
and operational services to the State Finance Committee, which is responsible for the
authorization and issuance of all state debt. Detailed information on
outstanding Bonds and Certificates of Participation can be found in the June
Monthly Report located on the OST
Monthly Report Archive section of the website.
The Debt Management section administers the state's debt program by:
- Providing financing for capital projects through the sale of bonds;
- Refinancing existing bonds when sufficient debt service savings can be achieved;
- Maintaining and updating a bond database which supports state financing operations and
biennial debt service budgeting requirements;
- Preparing and publishing the Official Statement for each bond offering, which provides
investors with financial and legal disclosure regarding the State of Washington;
- Administering the Fiscal Agent contract which establishes and controls the banking
relationships used by the state and municipal issuers for the purposes of acting as bond
registrar in processing debt service payments to individual bond holders; and
- Preparing and publishing an annual report which certifies the debt limitation of the
state for use by the Legislature in authorizing debt issues.
State bonds are issued for the benefit of the state’s capital program as directed
by the Legislature. Proceeds from the sale of bonds provide financing for facilities
such as correctional institutions, hospitals, university and college campuses, the
acquisition of parks and open space lands, highways and ferries, common school
construction as well as grants to local government for projects such as jails, sewage
treatment and clean water facilities, and special projects like the restoration of
historic buildings.
Debt Management also issues and administers Certificates of Participation (COPs) to provide
financing under the Lease/Purchase Program.
[Lease/Purchase Page]
Serves state and local government agencies, certificate holders, and trustee
banks. Provides financial services for the purchase of essential equipment for state
and local government agencies and the acquisition or construction of real property for
state agencies by:
- Securing lowest, cost-effective borrowing for agencies’ projects;
- Servicing existing contracts with state and local agencies; and
- Maintaining databases for monitoring and reporting both detail and summary information
for the lease/purchase program.
Serves public treasurers (such as the State Treasurer and city/county treasurers),
financial institutions, and the citizens of the state. Provides security and safety
of public funds on deposit in qualified public depositaries by:
- Making and enforcing regulations necessary to administer the Public Deposit Protection
Act;
- Approving Washington State banks and thrifts as public depositaries;
- Maintaining, with each public depositary and a third-party trustee, a depositary pledge
agreement which governs the safekeeping account for collateral pledged by the depositary;
- Maintaining and monitoring a bank collateral pool and a thrift collateral pool;
- Monitoring the financial condition of each public depositary and advising public
treasurers and other interested parties of the current net worth and public funds on
deposit in each qualified depositary;
- Providing information to public treasurers, public depositaries, the general public, and
non-public entities such as brokers/dealers or lawyers regarding banks, thrifts, and the
public deposit protection program; and
- Authorizing public entities to maintain, under special circumstances, out-of-state and
alien bank demand accounts for operating and revenue collection purposes.
Currently, 101 public depositaries and 44 out-of-state/alien bank accounts are
authorized by the Public Deposit Protection Commission.
Serves state agencies and the citizens of the state. Ensures the unimpeded inflow
of moneys to the state’s bank accounts; the timely outflow of moneys to state and
local government, vendors, beneficiaries, claimants, and employees by:
- Receiving and depositing moneys into the state’s bank account;
- Initiating transfer of moneys deposited locally in over 110 bank branches statewide into
the state’s bank accounts;
- Recording and reconciling all receipts and disbursements to bank statements;
- Initiating and recording electronic funds transfers including Federal Reserve Bank wires
and Automated Clearing House (ACH) transactions;
- Working with state agencies to evaluate banking service requirements;
- Serving as liaison between state agencies and financial institutions;
- Contracting with financial institutions for banking services such as lock boxes, debit
cards, credit cards, and various account services to meet the
state’s banking requirements;
Manages an annual cash flow in excess of $287.8 billion.
Serves state agencies and warrant (check) recipients. Maintains the records of
warrants which bear the signature of the State Treasurer by:
- Providing oversight and controlling the printing, signing, and release of warrants
issued for the benefit of state employees, public retirees, public assistance recipients,
workers’ compensation claimants, state agencies, vendors, and other governmental
entities;
- Maintaining information on all warrants issued, redeemed, or canceled and providing
access to state agencies and interested parties to determine the status of warrants;
- Reconciling to the warrant database those warrants presented through the banking system
for payment, updating the warrant database, and authorizing the payment of the redeemed
dollar amount from the state’s bank account; and
- Coordinating with state agencies, financial institutions, the courts, and law
enforcement to recover funds on forged and fraudulent warrants.
Nearly 3 million warrants were processed last year. The responsibility for
authorizing and producing warrants resides with individual state agencies.
Serves state agencies, local governments and the citizens of the state.
Staff of a number of work units including Cash Management, the Local
Government Investment Pool, Warrant Management, Accounting and Debt Management
input data to the statewide accounting system known as AFRS, the
Treasury Management System (TM$) and the Debt Management System and
ensure reconciliation of the system(s).
Serves state agencies, local government, legislators, legislative staff and the citizens of the state.
Manages the daily cash records for more than 500 Treasury and Treasury Trust funds by:
- Reconciling the Treasury Management System (TM$) with the statewide accounting system known as AFRS;
- Calculating and distributing investment earnings to funds in accordance with statute;
- Processing fund transfers on behalf of state agencies or as directed by the Legislature;
- Assisting state agencies in their reconciliation processes to ensure accuracy of fund balances;
- Providing current and historical reporting services such as fund balances, receipts, disbursements, distributions
and other fund information as requested; and
- Managing and processing over 6,000 fund transfer documents through the Treasury Management System (TM$) each month.
Serves state agencies and local governments. Maintains the official records of
ownership and accounting for investment transactions, including purchases, sales,
maturities, income, and gains and/or losses by:
- Recording, verifying, and reconciling the purchases, sales, maturities, and interest
payments with Cash Management and the master custodian bank;
- Initiating and maintaining accounting records in the Treasury
Management System (TM$) and the statewide accounting system (AFRS);
- Responding to reporting requirements in an ever-changing investment environment; and
- Preparing balance sheets and earnings and distribution statements for Local Government
Investment Pool participants.
Serves state agencies and local governments. Distributes state and federal
revenues to cities, towns, counties, public transportation districts, universities,
community colleges, water districts, fire districts, health districts and various
other governmental entities (including two non-profit agencies) by:
- Maintaining historical distribution records and providing information to state and local
government and other interested organizations;
- Processing state revenues collected by cities, towns, counties and health districts and
transferring them to administering state agencies according to statute;
- Processing and distributing revenues in accordance with formulas prescribed by state law
through the utilization of the Automated Clearing House (ACH) to ensure timely and
accurate distribution of funds;
- Assisting local government by providing revenue estimates for budgetary purposes; and
- Maintaining distribution data within the Treasury Management System (TM$).
Approximately 80 different programs or distributions totaling over $9 billion annually
are made weekly, monthly, semi-monthly, quarterly, or annually as prescribed by statute.
Serves the State Finance Committee, state agencies, bond holders, and the citizens of
the state. Manages the accounting records for state bonds by:
- Managing the long-term accounting records needed for verifying and coordinating the
payment of principal and interest with the fiscal agent and initiating supporting
transfers required by the bond covenants;
- Disbursing proceeds from bond sales for capital expenditures and the cost of issuance;
- Computing federal arbitrage rebate calculations; and
- Coordinating reimbursable debt activity for all other participating state agencies.
Serves state agencies. Manages the accounting records on lease/purchase contracts
by:
- Reviewing state agencies’ sublease agreements and coordinating payments by the
trustee bank to appropriate vendors;
- Coordinating state agency payments to ensure accurate and timely payments to trustee
banks; and
- Coordinating with financial institutions to ensure that debt service payments to
investors are made in a timely manner.
Serves the State Treasurer’s Office and state agencies. Provides a fully
functional information processing environment, including computer operations, technical
support, and application development, offering a wide array of information and technology
solutions by:
- Evaluating, selecting, acquiring, installing, and maintaining information technology
resources;
- Designing, developing, coding, maintaining, and enhancing the agency’s business
application systems;
- Providing technical consultation, support, and training for client/server and mainframe
applications and software;
- Providing backup support for warrant scanning services for Warrant Management;
- Preparing and implementing agency-wide disaster recovery and security plans;
- Developing strategic and tactical plans for the use of information technology resources
to ensure the security of systems, applications, and data.
Serves the citizens of the state and the employees of the agency by:
- Providing legal counsel and legislative liaison services and reviewing state and federal
regulations/legislation affecting the Treasury and/or the agency;
- Administering a public affairs and information program, preparing briefing papers and
publishing reports/documents as necessary or as required by statute;
- Providing records retention services and internal audit of agency records;
- Providing human resource management services;
- Providing agency support services including payroll, budget, and purchasing;
- Cashing Washington State warrants and personal checks in accordance with statute; and
- Providing administrative and clerical support.
The Treasurer’s Office has been designated responsibility for the following
reports and programs:
- RCW 2.04.092
and RCW 2.06.062
state that no salary warrant may be issued to a justice of the supreme court or a judge of
the court of appeals until the justice or judge files an affidavit that attests to
uncompleted or undecided opinions or decisions.
- RCW 69.50.505
requires that a report be filed by local law enforcement agencies on items seized or
forfeited from drug crimes.
- RCW 23B.14.400
requires that a report be filed on the disposition of dissolved corporations’ assets.
- RCW 46.61.5058
requires that a report be filed and funds remitted by law enforcement agencies from the
sale of vehicles owned by persons arrested for driving under the influence.
- RCW 9.41.098
requires that an inventory and funds be remitted by law enforcement agencies when short
firearms are sold or destroyed.
- RCW 46.29.550
provides motorists with the option of pledging $60,000 in assets with the State Treasurer
to satisfy motor vehicle financial responsibility requirements.
- RCW 10.105.010
requires that funds be remitted by each seizing agency from net proceeds of any property
involved in a felony.
- RCW 9.46.231
requires that a report be filed by each seizing agency on forfeited property from gambling
crimes.
By statute, the Treasurer serves on the following boards and commissions:
- Chair of the State Finance Committee which authorizes all state debt programs;
- Chair of the Public Deposit Protection Commission which protects public deposits in
banks and thrifts;
- Secretary of the Housing Finance Commission which issues bonds and tax credits to
provide financing for low and moderate income housing and non-profit agencies;
- Member of the State Investment Board which oversees management of the public
employees’ pension and other trust funds; and
- Member of the Washington Economic Development Financing Authority which facilitates
access to capital by in-state businesses.
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