Banking Service Options for State Agencies
OST’s cash managers ensure the unimpeded inflow of monies to the State’s bank accounts and the timely outflow of monies to state and local governments, vendors, beneficiaries, claimants, and employees.
The Office of the State Treasurer published a Request for Proposal in 2013 to replace our expiring Concentration Account contract. As a result of this RFP, a contract was signed with US Bank, effective July 1, 2014. This contract includes, but is not limited to the following:
- Receiving and disbursing all Treasury/Treasury Trust funds;
- Deposits of Treasury/Treasury Trust moneys from state agencies into the Treasurer’s cash management account(s)
- Distribution of state and federal revenues to counties, cities, school districts, and other local governments;
- Reporting of all credits and debits to the state’s concentration account(s)
- ACH Services
Merchant Bankcard Services
The Office of the State Treasurer administers a mandatory use contract for all state agencies for Merchant Bankcard Services. This contract covers VISA, MasterCard, and Discover acceptance along with PIN Debit acceptance. There is also a separate agreement to accept American Express cards.
An Economic Feasibility Study (EFS) is required prior to implementing a bankcard program. The Office of Financial Management (OFM) is responsible for the approval of an agency’s EFS. Information about the EFS process can be found at OFM’s website – http://www.ofm.wa.gov/policy/40.40.htm
The outreach program at the OST has a 2 hour presentation on payment options for state agencies. This is available to any state agency who is contemplating other payments options for their clients.
For more information about Merchant Bankcard Services, or to schedule a meeting on payment options, contact Mandy Kaplan by email at Mandy.Kaplan@tre.wa.gov,or by phone at (360)902-8906.
Master Depository Account (MDA) Program
The Office of the State Treasurer has agreements with financial institutions statewide for common banking services. Under the MDA program, the fees for these services are kept static for 2 years. State agencies can open accounts under the MDA program once they have received authorization to establish a local account outside the treasury.
Master Depository Accounts are most often used by state agencies who have offices in locations where there is no convenient access to a branch of the bank who holds the state’s concentration account. These Master Depository Accounts are swept on a regular basis by cash management staff at the OST.
For more information about the Master Depository Account program, contact Ryan Pitroff — firstname.lastname@example.org or by phone at (360)902-8917.
Lockbox services are primarily for state agencies that process a large volume of checks and associated forms. Agency clients mail their payments to a Post Office Box that the bank services several times a day. These payments are processed and deposited into an agency account at the bank. The agency then receives the associated paperwork via courier or electronically, depending on an agency’s business requirements. The bank notifies the OST of all deposits made via lockbox, and those funds are swept daily into the state’s concentration account.
The Office of the State Treasurer published a Request for Proposal in 2010 for Lockbox services. As a result of this RFP, a contract was signed with US Bank, effective July 1, 2011. This contract covers two different lockbox methods, manual processing (wholesale) and automatic processing (retail).