Cash Management & Investments
The Cash Management and Investments Division is responsible for the investment of state funds and the administration of banking and cash management services. The division manages state and local government funds by maximizing investment earnings within levels of prudence established by statute and Treasury Board guidelines; works with state agencies/institutions and financial institutions to improve cash management and ensures the highest quality of service to the Commonwealth at competitive costs.
Programs and Portfolios administered by Cash Management & Investments:
The General Account- The division manages assets in excess of $10 billion with the largest portfolio being the General Account, which includes the operating funds for the Commonwealth. The largest funds in the General Account are the General Fund, the Transportation Trust Fund, the Highway Maintenance Fund, the Lottery Fund, and various Insurance Funds. By pooling assets, Treasury is able to structure a more ambitious and dynamic investment program for all participants as evidenced by the enhancements provided by hiring external managers for more specialized investment services. View the General Account Investment Guidelines.
The Local Government Investment Pool (LGIP)
The Local Government Investment Pool (LGIP) - The Cash Management & Investments Division manages the very successful LGIP, which is used by various governmental entities on a completely voluntary basis. The LGIP enables these governmental entities to maximize the return on investment, adhere to Code investment requirements, and realize the economies of large scale investing and professional funds management. The LGIP is managed in accordance with Statement No. 79 of the Governmental Accounting Standards Board and has been rated AAAm by Standard & Poor's, the highest rating awarded to such funds. For more information about the program please click here.
State's Banking Network
The division also manages the state's banking network which consists of four concentration/disbursement banks and 43 regional depositories. This network accelerates the deposit and availability of state funds received from approximately 1,500 depositing locations throughout the state.
The Division procures and monitors delivery of both routine and specialized banking services in excess of $13 million for the Treasury and all other state agencies. Disbursement and investment activities are enhanced through comprehensive forecasting of the Commonwealth's $30 billion annual cash-flow. In addition,CMI is responsible for the interest income forecast of the General Fund.
Check Image Retrieval System
In May, 1999 the Department of the Treasury introduced a more efficient mechanism for retrieving images of paid checks. The system in place at the time involved receiving microfilm from the banks along with a magnetic tape which provided an index to the film. In addition to the Department of the Treasury, the VEC, VRS, Department of Taxation, and the Department of Social Services also had to retrieve copies of checks via this microfilm system. The problem with the old system was that microfilm copies were not always very clear, and the retrieval process was very slow.
On June 25, 2001 all four of the SE check-writing agencies were trained by Information Services at the Department of the Treasury. Treasury personnel had already been using the system since March, 2001. Agencies can now access checks on the Treasury website using their Internet browser. Security has been installed which limits an agency to only the checks which it issues. Each individual from an agency who has a need to retrieve images of paid checks is issued a logon ID and password after attending training at the Department of the Treasury. If an agency is interested in obtaining access to this system please contact Cash Management & Investments at (804) 225-2647.
The State Non-Arbitrage Program (SNAP)
As authorized by the Government Non-Arbitrage Investment Act, the Treasury Board created SNAP to assist local governments in Virginia in complying with federal arbitrage rebate regulations by offering a program to provide investment management and accounting, rebate accounting, custodial, and legal services to meet federal arbitrage rebate requirements. Treasury administers SNAP (§ 2.2-4700 through 2.2-4705 of the Code of Virginia) on behalf of the Treasury Board by overseeing the private sector contractors hired as service providers. For additional information see the SNAP web site.
Tobacco Indemnification and Community Revitalization Endowment (TICR)
The division oversees the Tobacco Indemnification and Community Revitalization Endowment that was established pursuant to § 3.1-1109.1 of the Code of Virginia. The Treasury Board serves as trustee, custodian and has full power to invest and reinvest funds credited to the Endowment. Treasury Board has adopted investment guidelines, TICR Taxable Guidelines and TICR Tax-Exempt Guidelines, to ensure that investments are made in a manner which will provide the highest investment return with the maximum security while meeting the annual cash flow demands of the Endowment.