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Cash Management Bank Services

 

The Treasury Department provides banking and investment services for state funds. Under Colorado Revised Statute §24-36-104, the Treasurer competitively selects banks located in Colorado to provide banking services to the state.

 

 

Treasury manages more than one hundred separate bank accounts and a variety of banking services for dozens of state agencies, including:

  1. General demand deposit account services (checking accounts);
  2. Funds concentration services, which are used to transfer funds from the bank accounts of various agencies to the state operating account;
  3. Controlled disbursement accounts, which facilitate daily cash management;
  4. Lockbox services, which process payments from taxpayers (e.g. boat permits, plumber licenses, business tax payments, etc);
  5. Electronic transfer services to individuals and businesses;
  6. Information services, which enable agencies to monitor account balances and identify transactions;
  7. Specialized services, including the safekeeping of investments.


 

Currently three banks are under contract to the State to provide these services:

  1. Chase Bank
  2. Key Bank
  3. Wells Fargo Bank
     

Numerous other banks throughout the State temporarily hold State funds deposited by remote State offices such as Parks or the Highway Patrol.


 

Bank fees are paid through a combination of interest earnings on account balances and direct invoices. The latter may range from $50,000 to $100,000 per month, depending upon the interest earnings offset and the volume of bank activity, i.e. number of checks deposited, number of lockbox documents processed, number of electronic payments, etc.


 

Every bank under contract to Treasury must meet two statutory requirements. It must be a certified public depository as set forth by the State Public Deposit Protection Act (PDPA) CRS §11-10.5-101 and maintain that status throughout the term of the contract. For more information about the PDPA, see the state banking commission's website. Every bank covered by the Federal Community Reinvestment Act (12 USC 2901) must maintain a CRA rating of satisfactory or outstanding. The CRA governs a bank's services to its local community, among other requirements.


 

Additional information about state banking services may be obtained from the cash manager at (303) 866-3253.

The following websites contain additional information relevant to banking services:
 

Public Deposit Protection Act

U.S. Mint

U.S. Comptroller of the Currency

Colorado Bankers Association