Banking Service Options for State Agencies
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Concentration Account(s)
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 2020 to replace our expiring Concentration Account contract. As a result of this RFP, a contract was signed with US Bank, effective July 1, 2021. 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
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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 Banking Services program at the OST has a 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 our Bankcard program by email at bankcards@tre.wa.gov.
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Lockbox Services
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 daily. 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 2017 for Lockbox services. As a result of this RFP, a contract was signed with US Bank, effective July 1, 2018. This contract covers two different lockbox methods, manual processing (wholesale) and automatic processing (retail).