Finance Division General Phone: (503) 378-4633
Banking & Investment Accounting Fax: (503) 373-1179
Treasury Management Services Fax: (503) 373-1500
The Finance Division provides cash management services to all Oregon state agencies and hundreds of Oregon local government entities, including cities, counties, schools and special districts. The division also administers public funds collateralization requirements governed by ORS chapter 295. The division manages more than 14 million financial transactions annually - including cash deposits, electronic fund transfers and check issuances - with nearly $230 billion flowing in and out of the division each year.
Cash Management / Banking
Through its Cash Management Program, the Oregon State Treasury (Treasury) develops strategies and takes actions to administer and invest the cash of Oregon state agencies and local governments in order to effectively meet their strategic and operational goals and objectives.
Transactions totaling nearly $230 billion moved through the Cash Management Program during calendar year 2015. Costs are recovered through investment administrative fees and banking transaction fees. The program includes four primary areas of cash management activity for state agencies: Short- and intermediate-term investment of cash, central banking operations, cash management improvement activities, and information infrastructure and security activities. Services for local governments include: short-term investment of cash and certain information infrastructure and security activities.
While these activities aren’t inclusive of all OST Cash Management responsibilities, and are certainly not as neatly segregated from an operational perspective as they are represented here, they generally represent the primary program obligations.
Central Banking Operations: Through relationships with commercial banking institutions, Treasury operates as the central bank for all State of Oregon agencies. Treasury procures and administers the State's banking contracts and manages day to day operational issues including reconciliation of commercial bank and agency activity, provision of statements to agencies detailing account activity, and calculation and payment of interest to accounts authorized by statute to retain interest earnings.
Cash Management Improvement Activities: Treasury works to address agencies’ needs for more cost-effective and efficient transaction processing (automated clearing house transactions, wires, merchant bankcard transactions, etc.) and delivery of services (electronic commerce readiness, prepaid card programs, lockbox services, remote deposit, etc.).
Information Infrastructure and Security Activities: Treasury purchases, develops, maintains, and supports an automated and secure cash management technology infrastructure to serve the needs of state agencies and partner banking institutions. Treasury also advises and assists agencies with respect to their own cash management system needs, including as they relate to security and risk management, as well as certain related industry compliance issues.
Short- and Intermediate-Term Investment of Cash: The Investment Division invests cash via the programs outlined below, while the Finance Division provides related administrative and operational support activities.
Oregon Short-Term Fund (OSTF): Treasury operates the OSTF as a short-term cash investment vehicle for state agencies’ idle cash. The primary objectives of the OSTF, in priority order, are preservation of principal (safety), liquidity, and return on investment (yield). The Investment Division invests the cash, while the Finance Division provides administrative and operational support activities. For more information on the OSTF click here.
Oregon Intermediate Term Pool (OITP): Treasury operates the OITP as a vehicle to invest dollars not needed to cover short-term needs and able to withstand greater price volatility to achieve returns often associated with longer-term investments. For more information on the OITP click here.
Short-Term Investment of Cash: The Oregon State Treasury operates the Local Government Investment Pool (LGIP), a part of the OSTF, as a short-term cash investment vehicle for local governments’ idle cash. The primary objectives of the LGIP, in priority order, are preservation of principal (safety), liquidity, and return on investment (yield). The Investment Division invests cash via the programs outlined below while the Finance Division provides all related administrative and operational support activities. For more information about the LGIP click here.
Information Infrastructure and Security Activities: Treasury purchases, develops, maintains, and supports an automated and secure cash management technology infrastructure to serve the needs of local governments and partner banking institutions. Treasury also advises and assists local governments with respect to their own cash management system needs, including as they relate to security and risk management.
ORS chapter 295 governs the collateralization of Oregon public funds and provides the statutory requirements for the Public Funds Collateralization Program (PFCP). Depositories qualified under this program are required to pledge securities as collateral against any public funds deposits in excess of deposit insurance amounts. This provides additional protection for public funds in the event of a depository failure or loss. ORS chapter 295 sets the specific value of the collateral, as well as the types of collateral that are acceptable. ORS chapter 295 creates a shared liability structure for participating depositories, better protecting public funds though still not guaranteeing that all funds are 100% protected.
The Finance Division administers the Public Funds Collateralization Program via an application that facilitates depository, custodian, and public official compliance with ORS chapter 295. For more information on PFCP click here.