Cash Management Overview

‚ÄčThe Cash Management Program is primarily responsible for managing the operating funds of the State.  The main participants in this program are the State's General Fund and Highway Funds.  

Assets invested under this program can be utilized at any time by the State, so it is imperative that the investment strategy is conducted in a very conservative manner.  The majority of the assets of the Cash Management Program are invested through the Short-Term Investment Fund.

The Short-Term Investment Fund (STIF) is the internally managed portfolio of highly liquid fixed income securities. These securities are primarily money market instruments and short to intermediate treasuries and agencies. 

The primary objectives of the STIF are safety and liquidity, followed by providing maximum income within the parameters of the IRS regulations on bond arbitrage. Since the funds in the STIF can be called at anytime, it is necessary that a conservative investment strategy be utilized.
General Statute 147-69.1 governs what securities are eligible for purchase by the fund. The fund can invest in maturities ranging from overnight to seven years.