0950 State Treasurer
0740019 - CENTRALIZED TREASURY AND SECURITIES MANAGEMENT
In 1949, the California Legislature amended Government Code Section 16305 to create the Centralized Treasury System (CTS) thereby requiring agencies of the State to deposit their money in trust with the Treasurer. The legislation also requires the Treasurer to safeguard the money and make safe and prudent investments. In 1955, the Legislature created the PMIB, giving the Board the responsibility to designate the amount of money available for the investment in securities, bank deposits, and loans to the General Fund.
The Centralized Treasury and Securities Management Division (CTSMD) oversees all banking aspects of the CTS. The goal of the CTSMD is to maximize the earning of interest consistent with safe and prudent treasury management, and to ensure that the depository banks provide the state with proper and adequate security for the deposit of state monies. The State Treasurer maintains demand bank accounts with eight banks for the purpose of providing necessary statewide depository coverage for the remittance of funds collected by the various state agencies.
The CTSMD 1) monitors the cash flow of all state funds, forecasts cash balances, revenue, expenditures, and the amounts available for daily investments, 2) ensures accurate and timely agency deposits, 3) administers and executes the wire transfer of funds, 4) reconciles state accounts with depository banks and redeems all state items submitted by presenting banks for payments, 5) executes the clearance and income collection for state investments (excluding PERS and STRS) and securities pledged to the state, 6) fulfills the clearance and settlement of securities pledged to the state for the time, demand, and other state agency programs, and 7) is responsible for the safekeeping of securities and other personal property owned by or pledged to the state.