0950 State Treasurer
Program Descriptions

10 - INVESTMENT SERVICES

The Investment Division is responsible for investment of state monies from the date of receipt through the date of redemption. During the 2012-13 fiscal year, this Division handled 6,778 security investment transactions totaling $269.3 billion. The Pooled Money Investment Board (PMIB) program accounted for 4,693 of these transactions totaling $233.9 billion; time deposits accounted for 1,166 transactions totaling $27.4 billion. The remaining $8.0 billion is invested on behalf of the state's special funds, such as those associated with the California Housing Finance Agency, the Department of Fish and Wildlife, the state's retirement system, etc. The Division also administers the Local Agency Investment Fund (LAIF), a voluntary investment program created to offer California local agencies greater access to the financial markets through the PMIB program. In the 2012-13 fiscal year, 2,626 local agencies participated in LAIF, with deposits averaging $20.8 billion for the fiscal year.

20 - 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, and 4) reconciles state accounts with depository banks and redeems all state items submitted by presenting banks for payments.

The Division is also responsible for 1) executing the clearance and income collection for state investments (excluding PERS and STRS) and securities pledged to the state, 2) the clearance and settlement of securities pledged to the state for the time, demand, and other state agency programs, and 3) the safekeeping of securities and other personal property owned by or pledged to the state.

30 - PUBLIC FINANCE

The Public Finance Division is responsible for selling State of California general obligation bonds, commercial paper notes, revenue anticipation notes, revenue bonds, and any other indebtedness for all state agencies. The Division provides debt administration services for most state bonds and is responsible for disseminating information to bondholders through the Investor Relations Program.

The Division also assures compliance with federal tax laws applicable to state debt. The post-issuance tax compliance for various state debt includes monitoring the use of bond proceeds, monitoring use of bond financed property, tracking expenditures, managing rebate and yield restriction compliance, coordinating necessary financial disclosure, and ensuring proper record keeping.

50 - ADMINISTRATION AND INFORMATION SERVICES

The Administration Division, Executive Office, and the Information Services Division provide executive direction and support services to programs in the State Treasurer's Office. Services include budgeting, personnel, accounting, information systems, business services, technical support, and production operations.