| State Bank Accounts |
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The Treasury Division maintains approximately 600 bank accounts throughout the State of Minnesota. The primary reason for so many accounts is to make it convenient for State agencies to quickly deposit money in the bank. Each morning the staff of the Treasury Division electronically "sweeps" virtually all funds from each of these accounts and gathers them into one General Account. Funds which are available for investment from the General Account are then certified for investment by the staff of the Treasury Division to the Minnesota State Board of Investment. The State's bank accounts are divided into four categories: 1) warrant clearing accounts; 2) major revenue accounts, including the General Account; 3) accounts in locations where there are more than one financial institution; and 4) accounts in locations where there is only one financial institution. These bank account categories are all bid out in 5 year contracts. Contracts for the major revenue accounts and accounts in locations having more than one financial institution are awarded based upon responses to Requests for Proposals. Contracts for the warrant clearing accounts and for accounts in locations having only one financial institution are negotiated. All negotiated contracts for bank accounts are negotiated and awarded by Minnesota Management & Budget, subject to approval by the Executive Council. Once these bank accounts have been established, the Treasury Division manages the accounts. The Treasury Division are the only ones authorized to withdraw the funds. The Treasury Division works with agencies to resolve deposit errors, return items, and any other matter that may affect the bank account or deposits made to them. Each month the Treasury Division receives and reconciles some 600 bank account statements. Certain State bank accounts are reconciled on a daily basis using electronic technology. |
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