It looks like a bank, it works like a bank, it must be a bank. In fact, the Office of the Treasurer of State is a bank for the State. Every day the Office accepts deposits, reconciles accounts, prepares statements, and answers customer’s questions. As a bank for the State, the Office provides the same services for the State as the private banks do for their customers.
On an average day, the Office accepts more than $75 million in deposits – taxes, fees, and other payments made by the people of Arkansas – and credits them to the proper account. These deposits are made up of electronic fund transfers, cash, and checks. On an average day, approximately 1,700 checks are processed through the Receiving Department. Treasury reconciles over 12,600 accounts daily, representing the funds of more than 200 State agencies. In fiscal year 2014, $18.2 billion in receipts were processed and $18.2 billion state warrants were redeemed. Total receipts have increased 4.00% over the 2013 fiscal year, while warrant redemption’s have increased 5.20% in the same time period. For Fiscal 2014, we distributed to state agencies $5.022 billion in general revenues, $1.194 billion in special revenues, and $504.9 million in highway revenues and $69.7 million in highway severance tax revenues and $216.1 million in Four Lane Highway Construction revenues.
|Receipts||$17.5 billion||$18.2 billion||$700 million||4.00%|
|Warrants||$17.3 billion||$18.2 billion||$900 million||5.20%|
|Sales & Use Tax||$1.04 billion||$1.06 billion||$20 million||1.92%|
|County & Mun. Aid||$447 million||$530 million||
The Treasurer is responsible for state aid to local governments.During the year ended June 30, 2014, general and special revenues distributed to cities and counties amounted to $530 million, distribution of local sales and use taxes was $1.06 billion, for a combined total of state aid to local governments of $1.59 billion.
The Office is daily accountable for approximately $3.3 billion in Treasury funds. There is $375 million in financial institutions working for you. Based on Arkansas’ population of 2.9 million, that represents over $129 per person. These funds are invested and earning interest at all times. Investments earned over $21.9 million in interest income during the 2014 fiscal year. At the same time, $3.5 million was expended for operations. When comparing the interest earned on investments to the operating budget, the following conclusion can be reached: for each dollar expended, $6.25 was earned. Table 1 illustrates in more detail:
Arkansas Code Section 25, Chapter 16
Established by the state Constitution the Treasurer of State’s Office is charged with numerous administrative and service duties that were established by the legislature and are found in the Arkansas Code Annotated.
RECEIVE – The Office receives and keeps all state money collected by the administering agency.
RECONCILE – The Office keeps an account of all money received and disbursed for over 400 fund accounts representing the fund equities of more than 200 state agencies.
REDEEM – The Office disburses funds by redeeming warrants drawn on the State Treasury in accordance with state law.
REPORT – The State Treasurer reports to the Governor every two years through the Biennial Report the condition of the Treasury and its operations.
Other Duties of the Treasurer
- Serves as custodian and safekeeping agent for twelve state systems with an average balance of over $600 million.
- Manages and invests cash funds.
- Distributes county and municipal aid, averaging $191 million per year.
- Distributes Local Sales and Use taxes, Real Estate Transfer taxes, Severance, Additional Severance, Boating Safety, and Dog Racing taxes.
- Services Rural Medical Revolving Loans and Grants.
- Processes debt service, investing, and paying agent fees for general obligation bonds and college savings bonds.