The Financial Operations Division (FOD) is charged with properly accounting for and reporting on all funds that are deposited, invested, and disbursed through the Department of State Treasurer. FOD Accounting handles: Departmental Accounting (functions for the Department), Investment and Banking Accounting, State Debt Accounting, State Health Plan Accounting, Retirement Accounting (Pension and Supplemental Retirement Plans) and Escheat Accounting.
FOD performs the State Treasurer's role of serving as the State's Banker and ensures that efficient banking services are provided to all State agencies and institutions.
There is a centralized Procurement and Contracting function in FOD that is responsible for managing the procurement cycle - from the early stages of a Request For Proposal to contract compliance.
The Financial Operations Division is comprised of five sections:
All revenues collected by a State entity on behalf of the State must be deposited with the State Treasurer. Banking Operations maintains correspondent depository relationships with various North Carolina banks and savings institutions in order for State entities to have a convenient location to make their deposits. Relationships are maintained with six major banking institutions that have a statewide branch network (Wells Fargo, Bank of America, PNC, First Citizens, BB&T, and SunTrust), as well as more than 90 other bank accounts across the state. State funds are deposited both at branch locations as well as electronically through Automated Clearing House (“ACH”) and wires. Banking Operations reviews all incoming electronic payments and ensures that the funds are credited to the account of the agency expecting the funds.
State entities disburse funds from their accounts maintained with the State Treasurer either electronically or by the issuance of warrants or checks. During fiscal year 2017-2018, more than 3.3 million warrants were processed, representing approximately $19.4 billion in payments. In addition, Banking Operations initiated over 24,000 wires in the amount of $166.3 billion. Banking Operations is also responsible for activities of the Division’s custodian bank, including securities delivery instructions, as well as collection of income and maturities.
Banking Operations also performs the accounting and monitoring process for the Collateralization of Public Deposits program, which provides for the securing of funds deposited by the State and local units of government with financial institutions over and above what is provided by the FDIC. As of March 31, 2018, Banking Operations oversaw $8.6 billion in pledged securities and collateral for $7.4 billion in deposits not otherwise covered by the Federal Deposit Insurance Corporation (“FDIC”) insurance.
The Bank Reconciliation Unit is responsible for reconciling all of the State Treasurer’s bank accounts as well as reconciling budget code balances between the Office of State Controller and DST.
Pension and Investment Accounting
The Pension and Investment Accounting area manages the accounting for all funds that are deposited, invested and disbursed through the Department of State Treasurer including the investment pool and banking programs. It also maintains the general ledgers for the North Carolina Retirement System and for the State agency and ancillary investments, employee benefit trust funds, and the Escheats Fund, also known as the Unclaimed Property Fund, administered by the State Treasurer. Pension and Investment Accounting is responsible for preparing the financial statements for the Investments and the Supplemental Retirement Plans for external audit.
The accounts for the outstanding General Obligation and Special Indebtedness of the State, including proceeds of bonds issued, are maintained by the Statewide Accounting area which is responsible for the payment of principal and interest. Statewide Accounting also maintains the general ledger for the State Health Plan recoding premiums collected and benefits paid. Statewide Accounting prepares and maintains the budget for DST. Accounting for Escheat deposits and claims payments is also part of Statewide Accounting. Finally, the group performs the annual EAGLE (Enhancing Accountability through Government Leadership and Education) internal control review for DST.
Departmental Accounting manages all fiscal duties relating to the accounting for DST program operations including Travel, Accounts Payable, Fixed Assets, PCard, Accounts Receivable and Monthly Accounting Close out.
All accounting areas are responsible for all Comprehensive Annual Financial Report content submitted annually to the Office of The State Controller.
Procurement and Contracting
Procurement and Contracting is a centralized function that ensures compliance and consistency in purchasing and contracting for DST.