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 2014-2015, more than 5 million warrants were processed, representing approximately $19 billion in payments. In addition, Banking Operations initiated approximately 23,500 wires in the amount of $160 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 June 30, 2015, Banking Operations oversaw $9.1 billion in pledged securities and collateral for $7.1 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.
This section manages the accounting for the State Treasurer’s investment pool and banking programs. It also maintains the general ledgers for the State Health Plan, pension fund, employee benefit trust funds and the Escheats Fund, also known as the Unclaimed Property Fund, administered by the State Treasurer.
The accounts for the outstanding State debt are maintained by the Statewide Accounting Operations section. Functions include the recording of new debt and the timely payment of principal and interest for the State’s debt.
The section is also responsible for the financial statement and footnote preparation audit of the NC Supplemental Retirement Income Plan and the North Carolina Public Employee Deferred Compensation Plan audit.
The Departmental Accounting section manages all fiscal duties that relate to the administration of the programs of the Department of State Treasurer. These duties include developing and monitoring the operating budget for the Department, preparing payroll for more than 400 employees and contractors, managing accounts payable, and enforcing centralized purchasing.
Procurement and Contracting
Procurement and Contracting is a centralized function that ensures compliance and consistency in purchasing and contracting for DST.