Cash Management Overview
The Cash Management Division is responsible for managing the State's cash transactions, banking relationships, and short-term investments.
The Division maintains maximum investment balances by ensuring more timely deposits, controlling disbursements, minimizing bank balances and banking costs, and providing accurate cash forecasts.
The Division manages the Short-Term Investment Fund, seeking to earn the highest income level providing for the safety of principal, first, and the provision of liquidity, second.
In managing the State's cash inflows and outflows, the Division invests those funds viewed to be more stable for longer periods and higher yields, including banks that meet standards for financial strength and community support; protects State deposits through well-controlled internal operations and use of banks that meet standards for financial strength; improves operating efficiency by increased use of electronic data communication and funds processing; and provides State agencies with technical assistance on cash management and banking issues.
The Bank Control and Reconciliation unit maintains accountability for the state's internal and external cash flow. The unit tracks the flow of funds through 20 Treasury bank accounts and authorizes the release of state payroll, retirement and vendor checks. The unit also processes stop payments and check reissues. In addition, the unit works with state agencies to speed the deposit of funds and identify mechanisms to reduce banking costs, reviews State agencies' requests to open new bank accounts, maintains records of the State's bank accounts held by individual banks, reviews bank invoices and compensation, and manages the Division's procurement efforts for new bank services. The unit also manages the insurance collateral program in conjunction with the Department of Insurance, which requires companies writing insurance policies in the State to deposit securities and funds totaling a fixed percentage of the policies' value. On June 30, 2025, approximately $297 million in securities were pledged to the program.
The Cash Control unit, on a daily basis, forecasts available cash, funds disbursement accounts, concentrates cash from depository banks, sweeps available cash into short-term investment vehicles to maximize investment balances, and executes electronic transfers. The unit also prepares annual cash flow projections for various State and bond rating credit agencies, monitors actual cash receipts and disbursements, and prepares the monthly cash report for the legislature. During Fiscal Year 2025, the unit controlled the movement of $45 billion to and from State bank accounts and investment vehicles.
The Short-Term Investments unit invests STIF assets, monitors custodian activity, and prepares monthly, quarterly and annual reports on the Fund. During Fiscal Year 2025, the unit managed an average $18.3 billion in short-term money market instruments. As of June 30, 2025, the unit administered 1043 active STIF accounts for 393 State agencies and authorities and 650 for municipalities and local entities. In addition, the unit manages the Grant Express program that enables municipalities to deposit grant payments directly into their STIF accounts, and the Debt Express and Clean Water Fund Express programs that allow towns to make debt payments automatically from their STIF accounts.
Pursuant to CGS 3-24k, the unit oversees the Community Bank and Credit Union Initiative, in which the Office of the Treasurer supports Connecticut-based banks and credit unions through the investment of State funds in certificates of deposit at qualifying institutions.