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 that 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 19 Treasury bank accounts and authorizes the release of state payroll, retirement and vendor checks. More than three million transactions are accounted for and reconciled annually. The unit works with state agencies to speed the deposit of funds and identify mechanisms to reduce banking costs. The unit also 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 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 agencies and the primary retirement funds, monitors actual cash receipts and disbursements, and prepares the monthly cash report for the General Assembly.

The Short-Term Investments unit invests STIF assets, monitors custodian activity, and prepares quarterly and annual performance reports on the Fund. The unit makes longer-term investments for balances that are expected to be available on a more stable basis in the Extended Investment Portfolio, and, pursuant to CGS 3-24k, the Community Bank and Credit Union Initiative, in which the Office of the Treasurer supports Connecticut-based banks and credit unions with assets not exceeding $2.0 billion through the investment of State funds in certificates of deposit at the qualifying institutions.