10/27/2016
1
North Carolina Department of State Treasurer
Staff of State and Local Government Finance Division
October 27, 2016
Becky Dzingeleski, Senior Accounting &
Financial Management Advisor
Cash and Investments –
Current Issues In North Carolina
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Agenda
• Banking – Collateralization
• Pooling Bank Memo & list (handout #1)
• Custody & Safekeeping
• Current Cash & Investment Issues
• Local Government Reporting Requirements
– DST Website
– LGC 203 – sample reports
• LGC203 EZ (handout #2)
• Standard LGC 203 (handout #3)
– COLL 91- Annual Notification of Accounts by
Public Depositor
(handout #4)
• Comparative portfolios, statistics
Banking & Collateralization in NC
• NC Banking
– Banking Commission
– State Treasurer – Banking Operations
• Collateralization – required by law
– Dedicated method – finance officer monitors
collateral
• FDIC coverage is per Bank
• Recognizes one Official custodian
– Pooling method – State Treasurer monitors
collateral
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Banking & Collateralization
– Know your bank and their history
– Watch the Pooling Bank List – DST website
– Dedicated banks – make sure your
agreements are in order & that you monitor
your collateral
• COLL-94A – Security agreement; COLL-94B
Escrow agreement
• “Collateral & Public Deposits in NC”
These documents located at www.nctreasurer.com
Variation: FDIC pass-through protection
[G.S. 159-30(b1) for CDARs & ICS – G.S. 159-31(a) for Finistar]
• CDARs, Insured Cash Sweep, Finistar
Banking & Collateralization
Issue - As of LGC-203 report date there is insufficient
collateralization (Market Value) or no collateralization for
deposit accounts in NON-pooling Banks that are required
to collateralize the Units public funds by use of the
dedicated method.
o“Appropriate forms that were needed for the Bank to
collateralize the deposits had not been filed”
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Banking – Official Depository
• G.S. 159-31(a)
– The governing board of each local government
and public authority shall designate as its
official depositories one or more banks, savings
and loan associations, or trust companies in
this State…”
• An acceptable “official depository” must:
– have a presence in the state,
– be open for business to the general public,
– agree to meet NC collateral requirements.
Use of Credit Union’s as a NC Local Government or Public
Authority Depository is not specified in the NC Statutes
Custody and Safekeeping
G.S. 159-30 (d) “…. Securities and deposit certificates
shall be in the custody of the finance officer who shall
be responsible for their safekeeping and for keeping
accurate investment accounts and records.”
• Custody has to do with the physical safety of the
securities. In the “book-entry” system there are no
physical documents so investment securities must be
held by custodians in Third Party safekeeping or trust
accounts in the name of the Unit of Government.
Best Practice: Signed Third Party safekeeping contract
directly between the Unit and the custodian.
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Custody and Safekeeping
§ AG Advisory Memo #2013-03
§ Investments can be held in “safekeeping” accounts or trust
accounts in the following
§ Commercial banks in North Carolina
§ Trust accounts in banks authorized to do trust work in North
Carolina
§ Commercial Bank or Trust Department’s Safekeeping
responsibilities
§ Separation and identification are federal banking regulatory
requirements
§ Hold assets separate and apart from bank assets
§ Readily identifiable and account for as local government assets
§ Securities in the name of unit is the best practice
§ Unit should maintain documentation of activity
Bank’s investment or operating arm cannot provide custody
What services does your custodian provide?
• If custodian is buying / selling securities for you
they become the “counterparty” under the
definitions of GASB Statements 3 and 40
– If they both provide and safe keep the security
investment you have a Category C investment – least
favorable
– “Third party” custodial agreements are the strongest and
most secure custody arrangements: the broker and the
custodian are separate – most favorable
• GFOA best practice and a Category A
investment under GASB
Role of Custodian & Custodial risk
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Use of outside investment managers requires
special legislation
– State Treasurer has authority in G.S. 147-69.3
– Comparable language does not exist in G.S.159
– Those with authority to use outside managers
have gone to the general assembly for special
legislation
– Therefore, outside managers are not allowed
under G.S. 159 and their use requires special
action by the legislature
Investment Managers – NC SLGFD Position
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Certificates of Deposit – CD’s
GS 159-30(b) Moneys may be deposited at interest
in any bank, savings and loan association, or trust
company in this State in the form of certificates of
deposit or such other forms of time deposit as the
Commission may approve…….
vThe only CDs that are allowed under the law are those
where the Unit of Government deposits the funds in a
bank “in this State” subject to collateral
vBrokers sometimes offer an investment product called
“brokered CDs” typically from out of state banks
Brokered CD investments are not authorized
under G.S. 159-30
Money market accounts
• Money Market Deposit Account
versus Money Market Mutual Fund
• “Money market” has different meanings
and you must determine how it is used
• NC statutes allow MMDAs
(Money Market Deposit Accounts)
• Verify with bank that account is FDIC
insured and collateralized
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Money Market Demand Account
versus
Money Market Mutual Fund
Money Market Deposit
Account
Money Market Mutual
Fund
Liquid
Yes Yes
Competitive Interest
Rate
Yes Yes
Limited Withdrawals
Yes No
Annual Fee
No Yes
FDIC Insured
Yes No
Statutorily Allowable
Yes No – except for NCCMT
Commingled Investment Pools
159-30(c)(9) & (10)
•
Commingled investment pool established and administered by
the State Treasurer
§ Short Term Investment Fund (STIF) G.S. 147-69.
§ Boards of Education & select local government units
§ OPEB Trust Funds – State Treasurer
§ 17 participants as of 7.30.2016
Interested Units can contact NPPI@nctreasurer.com. Someone
will get back to you. There is a minimum investment amount.
§ Hospital Investment Fund – State Treasurer
Commingled investment pools established by interlocal
agreement are no longer used since establishment of
NCCMT
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Endowments
NC Local Governments & Public Authorities are
legally bound by §159-30 regarding authority to
invest
• Carefully read & understand the endowment documents
o Unit has complete discretion to invest?
o If Unit changes investment type will they lose
endowment?
o Consult Units attorney
Exception – Public Schools
Public Schools - Endowment funds
Unique Investment authority: Session Law 2011-284
•
Section 77 re-writes §115C-490
Creation of endowment funds; administration
o Any local board of education is hereby authorized and empowered
upon the passage of a resolution to create and establish a permanent
endowment fund which shall be financed by gifts, donations, devises,
or other forms of voluntary contributions.
o Any endowment fund established under the provisions of this Article
shall be administered by the members of such board of education
…known as "The Board of Trustees of the Endowment Fund…. The
board of trustees so established shall determine its own organization
and methods of procedure."
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Public Schools - Endowment funds
• Section 78 re-writes §115C-491
Board of Trustees public corporations; powers & authority
generally; investments
...Board of trustees created and organized under this Article shall be a body
politic, public corporation and instrumentality of government and as such may
sue and be sued in matters relating to the endowment fund and shall have the
power and authority to acquire, hold, purchase and invest in
o all forms of property, both real and personal, including, but not by way of
limitation, all types of stocks, bonds, securities, mortgages and all
types, kinds and subjects of investments of any nature and
description.
o may receive pledges, gifts, donations, devises and bequests, devises, and
may in its discretion retain such in the form in which they are made, and
may use the same as a permanent endowment fund.
o The board of trustees shall be responsible for the prudent investment of
any funds or moneys monies belonging to the endowment fund in the
exercise of all forms of property, both real and personal
Investing Bond Proceeds
• Must follow G.S. 159-30 – no exceptions
– Even units with expanded investment
authority from special legislation must use
G.S.159-30 for bond proceeds
– Be wary of financial advisors or banks with
creative proposals – call us if something
needs clarification or investigation
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Investing Bond Proceeds
• Use of Mutual Funds for Bond proceeds
– NCCMT clearly permitted by Statute,
recertified in 2016
– Other mutual fund investments would require
bond counsel’s approval with the proper
criteria -
G.S. 159-30(c)(13)
• Proceeds must be for projects subject to arbitrage
– vendor must provide arbitrage tracking
• Investments in the fund must have highest ratings
• Mixed legal opinions on the use of mutual funds
other than NCCMT – consult legal counsel
INVESTMENT ISSUES -
NC ST HSG FIN AGY HOMEOWNERSHIP – not a municipal
corporation, local government agency, or an obligations of the
State of NC - G.S.159-30(c)(3)
NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY -
Educational Facilities Revenue and Revenue Refunding
Bonds –NCCFFA is conduit issuer that permits an entity
(University) to borrow on a tax-exempt basis. Bonds are not an
obligation of the State of NC but are an obligation of the University.
UNIVERSITY REVENUE BONDS must be evaluated on a case by
case basis. Revenue Bonds are most often backed by Dorm fee
revenue & normally are not obligations of the State of NC -
G.S.159-30(c)(3)
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INVESTMENT ISSUES -
NC MED CARE COMMISSION BONDS
MCC Is an agency of the State of NC, their
bonds are not obligations of the State of NC as
required under §159-30 (c)(3).
CERTIFICATES OF PARTICIPATION (COPs)
of NC local governments are not “bonds and
notes” as required by the statutes. Not issued
by the local government or public authority but
by a nonprofit corporation.
Summary
§ Status of collateral method chosen by banks can
change due to mergers
vPooling Method vs. Dedicated Method
§ Collateralization - “Dedicated Method” can be
complicated. Refer to Collateralization Of Public
Deposits In North Carolina – examine agreements
with Dedicated method Depositories
§ Official Custodian – examine custodial agreements
vSigners on an account does not automatically
make them official custodians to the FDIC
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• “Brokered CD’s” are generally not allowable for most NC
Local Government Investments
• “Money market” deposit accounts are allowed -
investments in mutual funds are limited by law. Ask for
more details on the “Money market” account being
offered – deposit or investment?
• Public Schools have special authority to invest
endowments, all other Local Governments do not have
this same authority
• Not all Bond investments are allowable, read the offering
documents
Summary
Deposit and Investment Local
Government Reporting Requirements
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“LGC-203 report forms are now available”
How does the LGC make announcements or
send reminders?
LGC_News listserve
Best way to stay informed is through LGC_News
listserv. Register multiple people on your staff in case
you are out of the office.
Provide a business card or send an email request,
to get registered.
ANNOUNCEMENTS / REMINDERS
LGC-203
Report of Deposits and Investments
o Required by G.S. 159-33 Local
Governments / Public Authorities
o Required by G.S. 115C-446 for Public
Schools
**Not required for Charter Schools
NC General Statutes are available without
charge at the web site of the North Carolina
General Assembly at www.ncga.state.nc.us.
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ABC Board’s
Required by § 18B-702 (t) for ABC Boards –
ABC Board 203 report forms are reviewed by
and accessed at the NC ABC Commission
Website.
LGC-203 – Report of Deposits and Investments
LGC 203 Reports
G.S. § 159-33. Semiannual reports on status of
deposits and investments.
• Each officer having custody of any funds of any local
government or public authority shall report to the
secretary of the Local Government Commission on
January 1 and July 1 of each year (or such other dates
as he may prescribe) the amounts of funds then in his
custody, the amounts of deposits of such funds in
depositories, and a list of all investment securities and
time deposits held by the local government or public
authority………
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LGC 203 Reports
(Semi-annual Report on Deposits & Investments)
LGC-203 Report forms, instructions & Memos will
be found on the NC State Treasurer's Website
Please use most current updated report form
every reporting cycle
**
Forms must be saved to your own system first, opened from
your own system then completed. Cannot prepare them from the
DST website – Yet.
June 30
th
- report due by July 25
th
Dec 31
st -
report due by January 25
th
https://www.nctreasurer.com/Pages/default.aspx# .Hoverover
divisionsthenclickonState&LocalGovernment
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ClickonLocalFiscalManagement
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Position
pointerover
filename.
Rightclick
thenSave
thereport
formto
yourown
System…
INV91isnowCOLL-91
https://www.nctreasurer.com/slg/lfm/forms-
instructions/Pages/Cash-and-Investments.aspx
https://www.nctreasurer.com/slg/lfm/forms-
instructions/Pages/Cash-and-Investments.aspx
Handout#1
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As of the report date: June 30 or December 31
– Ending statement balances in total from
each depository
• Finistar – enter both dedicated amounts and
pooling amounts separately on the report
• CDARs
• Insured Cash Sweeps (ICS)
– Investments Market Value
If the funds are in the name / tax ID of the Local
Government they should be on the LGC-203
LGC-203 reports - What goes on the form?
ØCompleted Excel workbook report form is
preferred or a signed scanned PDF copy
of the report form
ØSupplemental schedules (Investments)
ØCollateral statements (Dedicated method of
collateralization)
ØFinistar, CDARs, ICS statements as of the
LGC-203 report date
(June 30 or December 31)
LGC-203 reports – Emailing the report
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LGC-203 Reports
Why is it required ?
G.S. 159-33
§ Two times a year LGC staff reviews LGC-203
report & counsels unit for:
§ Cash balances & adequate collateral
§ Allowable investments and maturities
§ Cross reference of statute violations to note
disclosures in the Financial Statements
§ Communication if Statutory Violation –
§ Phone Call with email to Unit’s finance officer
§ Letters written if appropriate
§ Letters copied to Auditor
LGC 203 - Basics
Both the EZ & Standard Report form’s and related macros for
automated processing are updated every reporting cycle with
• Dates, New Units, Pooling Banks, Instructions
Updated LGC-203 report forms, Memos & instructions posted to
NC DST Website then announced through
LGC_News listserve
June 30 report is due July 25
December 31 report is due January 25
Not sending LGC 203 / COLL 91 is a
Statutory Violation
Sending LGC-203 / COLL 91 Report late – Not a Statutory Violation
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LGC203 EZ (Rev. 6-2016) IMPORTANT-Please read the FORM REMINDERS tab
AS OF
As of : June 30 2016
Name of Unit **
Unit Code Unit Type
Rec'd Date
** Note - Discretely Presented Component Units must submit separate LGC-203 reports
Legal Name of Unit:
CERTIFICATION
Telephone Number, includi ng area code
This is to certify that the
Name of Official (Type or print your name) Unit Mai li ng Address - Street Number Extension
data contained in this
report is accurate to the
Title (i.e. Finance Officer, Treasurer, etc) Unit - City, State & Zip Code
best of my knowledge
and belief.
Signature of Official (only if mailing or faxing)
I.
Cash on hand
Amount
Petty cash funds and change funds
……………………………………………
Undeposited receipts
……………………………………………
Total Cas h on Hand
II.
De dicated Met hod Financial Ins titutions
** If you have addi ti onal depos its in Dedi cated Banks ( non-po ol ing ), you must use the LGC-2 03 St andard Fo rm
Interest Bearing
C.D.s Chec king Acco unts
Finis tar Dedicated Amounts
CDARS - attach statement or leave blank if NA
ICS - attach statement or leave blank if NA
Total Dedicate d Deposits
Totals for Finistar, CDARS and ICS -$ -$
III.
Pooling Me tho d Financial Inst itutions
** LIST ONLY BANKS INCLUDED ON NC POOLING BANK MEMO
Sel ect B ank Name from Dro p Down Menu Demand Interest Bearing
Please do not select the same bank name more than once
Deposits Chec king Acco unts
Enter total amount for each bank Account type going across Regular Savings C.D.s
(1)
(2)
(3)
(4)
(5)
Total Pooling Deposits
Finistar Pooling amounts ------
Totals for All Pooling Banks $ $ $ $
IV.
Investments NCCMT
Amount
CASH DEPOSITS & INVESTMENTS
LOCAL GOVERNMENT COMMISSION
Emai l Addre ss
$
……………………………………………………………………………………………………
3200 Atlantic Avenue, Raleigh, North Carolina 27604
Deposits
$
Time
……………………………………………………………………………………………………
LGC Use Only
…………………………………………………………………
$
FINISTAR (total dedicated amount from statement)
attach statement or leave blank if NA
FINISTAR (total pooling amount from statement)
attach statement or leave blank if NA
…………………………………………………………………
Handout#2
LGC-203 EZ Form
• One Page Form
• Units that have Deposits in Pooling Method
Banks, Investments in NC Cash Management
Trust Cash or Term Portfolio , Finistar, CDARs
and have No other investments
• Ideal for almost all Local Government’s who only
have deposits accounts and invest in only the
NC Cash Management Trust
• Not for use by Board of Education’s or Public
Housing Authorities
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Standard LGC 203 (Rev. 6-16), page 1
IMPORTANT - Please read the form reminders tab and sample 203 for assistance.
AS OF
JUNE 30
LGC Use Only
Name of Unit:
Unit Code Unit Type
Legal Name of Unit:
CERTIFICATION
Telephone Number, includi ng are a code
This is to certify that the Name of Official (Type or print your name) Unit Mai li ng Address - Str eet Number Extension
data contained in this
report is accurate to the
Title (i.e. Finance Officer, Treasurer, etc) Unit Mai li ng Address - Ci ty, State & Zip Code
best of my knowledge
and belief.
Signature of Official (only if mailing or faxing)
I.
Cash on hand
(see Instruction 2).
Amount
Pe tty cash funds and change funds ……………………………………………
Undepo sited receipts ……………………………………………
Total Cas h on Hand
Manual Pre parers: ENTER TOTAL CASH ON PAGE 2 S ECTION VI LIN
II.
Pooling Me thod Financ ial Inst itutions
Manual Preparers: LIST ONLY BANKS INCLUDED ON POOLING BANK MEMO
Select Bank from Drop Down menu Demand Interest Bearing
Do not se le ct the same bank name more tha n one time
Deposits Chec king Acco unts
Enter total amount for each Account type at the bank goi ng across Regular Savings
C.D.s
(1)
(2)
(3)
(4)
(5)
---
Total Pooling Bank
$ $ $ $
Grand Total Pooling D
Grand Totals for All Poo ling Banks $ $ $ $
Manual Pre parers: ENTER GRAND TOTAL ON PAGE 2 SECTION VI L
III.
De dicated Met hod Financial Institution
(see Instruction 3 & 5): Note: All Housi ng Authorities mus t use the De dicated Met hod rules.
Manual Preparers: fill out Section VII on Pg.2 for each Dedicated Bank
A B C
List the Bank Name and location Demand Time Interest Bearing
Do not ent er the same bank name more t han once
Deposits Deposits Chec king Acco unts
Enter total amount for each Account type at the bank going across Regular Savings C.D.s
(1)
(2)
(As required by G.S. 159-33 and G.S. 115C-446)
CASH DEPOSITS &
State of North Carolina
LOCAL GOVERNMENT COMMISSION
3200 Atlantic Avenue, Raleigh, North Carolina 27604
REPORT OF DEPOSITS AND INVESTMENTS
Deposits
$
Emai l Addre ss
$
FINISTAR (total pooling amount from statement) attach
statement or leave blank if NA
Supplemental Pages - TOTALS (Pooling Method)
Time
Handout#3
Standard LGC 203 (Rev. 6-16), Page 2
V. Investments (see Instruction 7): Se nd your own suppleme ntal re port that includes details and market value totals for each type belo w.*(se nd wit h LGC-203 )
INVESTMENT TOTALS Name of Custodian
or Safekeeper
Type of Security Purchase Amount Total * Market Value Total
Government Securities
$
Government Agencies
$
Commercial Paper
$
Bankers' Acceptance
$
Other Investments
$
Repurchase Agreements (see Instruction 8):
$
Grand Total of Sect. V Investments (See Instruction 9)
VI.
Summary
(s ee Ins truction 1 1)
:
Please recheck totals.
(1) Cash on hand (ENTER TOTAL FROM PAGE 1 SECTION I)
$
(2) Total cash on deposit for Pooling Method (from SECTION II)
$
(3) Total cash on deposit for Dedicated Method (from SECTION III)
$
(4) Total cash (Lines 1, 2 & 3 totaled)
(5) Investments - Pg. 1 (totals Sec tion IV)
(6) Investments - Pg. 2 (totals Sec tion V)
(7) Total cash and investments (total lines 4, 5 & 6 combined)
(8) Less: Unexpended bond and/or note proceeds
(9) Net cash and investments (line 7 minus 8)
VII.
Deposits in Dedicated Method Financial Institutions:
(See Instruction 12)
REQUIRED for banks lis
Name of financial institution (1)
(a) (b) (a)-(b)
Deposit FDIC Insured Uninsured
Amount
Amount Amount
Total Demand deposits: Sec. III. - A …………………………………………..
$
250,000$
$ U.S. Treas. & agencies
Time deposits: regular savings & CD's combined: Sec. III. B …………………………
$
NOW, SUPERNOW, and Money Market
Interest Bearing checking accounts: Sec. III. C ……………………………………
Other
250 000$
Market Value of Total
Totals agree to Supplementary Pages or suppplemental
report provided by Unit
Securities
State of N.C.
/county/municipal
with Third
REPORT OF DEPOSITS AND INVESTMENTS
$
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Standard LGC-203
Multiple Page Form to be used by
1. Local Governments who have Investments in items
other than and/or in addition to or the NC Cash
Management Trust
Ø Includes Units with either small or large Investment
Portfolio’s
2. Local Governments who have Depositories that are
not Pooling Banks (Dedicated Banks)
3. Public Housing Authorities – dedicated method of
collateralization required by HUD
4. NC Public Schools – supplemental pages
** Charter Schools not required to complete LGC-203 report
Standard LGC-203 form requirements
Other Investments – 203 report reflects totals
Units are required to send additional documentation
with supporting detail
Excel workbook listing or Statements of the Portfolio details of
“Other Investments” for our detail review
• Specific name of each Investment
• Example: Agency, Security, Commercial Paper
• Purchase date, maturity date
• Purchase Value / Market Value at Report date
• Yield
• Rating at time of purchase (commercial paper)
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GovernmentSecurityG.S.159-30(c)(1)-
ObligationsoftheUnitedStatesorobligationsfullyguaranteed
bothastoprincipalandinterestbytheUnitedStates.
**CustodiancanbelistedontheLGC-203reportitself
Descriptionof
Security
Issuer Purchase
amount
Market
Value
Purchase
Date
Maturity
Date
Yield
T-Note1-
10/31/2016
Treasury $15,106 $15,114 11/10/2011 10/31/2016 0.854
T-Note1.5-
1/31/2019
Treasury $19,986 $20,183 2/26/2014 1/31/2019 1.515
Government Agency 159-30 (c)(2)
ObligationsoftheFederalFinancingBank,theFederalFarmCredit
Bank,theBankforCooperatives,theFederalIntermediateCredit
Bank,theFederalLandBanks,theFederalHomeLoanBanks,the
FederalHomeLoanMortgageCorporation,FannieMae,the
GovernmentNationalMortgageAssociation,theFederalHousing
Administration,theFarmersHomeAdministration,theUnited
StatesPostalService.
Custodian Nameof
Specific
Agency
Purchase
amount
Maturity
Value
Purchase
Date
Maturity
Date
Yield
WELLS
FARGO
FEDERAL
FARM
CREDIT
BANK
2,053,357.61 2,175,042.00 01/31/08 12/15/17 4.625%
BANKOF
NEWYORK
FHLMC 1,703,000.00 1,873,657.63 01/30/08 11/17/17 5.125%
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Commercial Paper G.S.159 (c)(6)
Primequalitycommercialpaperbearingthehighestratingofat
leastonenationallyrecognizedratingserviceandnotbearinga
ratingbelowthehighestbyanynationallyrecognizedratingservice
whichratestheparticularobligation.
Custodian NameofCP–
CPRatingat
Purchase
Purchase
amount
Maturity
Value
Purchase
Date
Maturity
Date
Yield
WELLS
FARGO
BARCLAYSUS-
A1/F1
2,992,378.33 3,000,000.00 10/17/14 07/13/15 0.310%
WELLS
FARGO
CREDIT
AGRICOLE- A1
/F1
1,996,882.78 2,000,000.00 01/14/15 07/14/15 0.310%
WELLS
FARGO
DCATLLC- A1/
P1
4,996,930.56 5,000,000.00 04/21/15 07/15/15 0.260%
• Email completed form to special address
– lgc0203@nctreasurer.com
• Zero, two, zero, three
• Remember to attach supporting documents
to your emailed document
– e.g. collateral reports, Finistar, CDARS, ICS statements
• All supplemental reports as of report date
Letters and/or emails will be sent by our office -
• When reports are late
• For items that raise questions
• For items that may be compliance violations
LGC 203 Reports
10/27/2016
26
Statutory Violations of NC §159-30
WhatifIhaveaDepositorInvestment
statutoryviolation?
**Confirmedinvestmentviolationsarerequiredto
bereportedtotheUnit’sAuditorandmaybe
disclosedintheunit’sfinancialstatement.
LGC 203 Reports
G.S. § 159-33. Semiannual reports on status of deposits and
investments.
• ……….… If the secretary finds at any time that any funds of
any unit or authority are not properly deposited or secured,
or are invested in securities not eligible for investment, he
shall notify the officer or depository in charge of the
funds of the failure to comply with law or applicable
regulations of the Commission. Upon such notification,
the officer or depository shall comply with the law or
regulations within 30 days, except as to the sale of
securities not eligible for investment which shall be
sold within nine months at a price to be approved by
the secretary. The Commission may extend the time for
sale of ineligible securities, but no one extension may
cover a period of more than one year. (1931, c. 60, s. 33;
1971, c. 780, s. 1; 1979, c. 637, s. 2.)
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27
Handout#4
COLL-91– NotificationofPublicDeposit
Why? Required by Administrative Code
20 NCAC 07.0103
20 NCAC 07.0103 Notification By Depositor
(b) As of June 30 of each year, or when requested by
the State Treasurer, the public depositor shall provide
the depository Form INV-91 "Notification of Public
Deposit ", listing the current account names and
numbers of all public deposit accounts, and shall
provide a duplicate copy to the State Treasurer.
Form INV-91 shall be certified by the public
depositor that the statements are correct.
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28
COLL-91 Notification of Public Deposit report form
and Instructions Department of State Treasurer
website . New report form and instructions
beginning with the June 2016 report cycle.
Reports now emailed directly to NCDST Financial
Operations and not to SLGFD.
New Email for COLL-91:
sbu.collateral@nctreasurer.com
COLL-91 Reports
(Notification of Public Deposits)
COLL-91NotificationofPublicDeposit
Notifies depository of collateralization requirement –
• System of checks and balances to ensure the bank and
the Unit agree as to public deposits.
• Alerts the Bank of discrepancies between the Unit’s
account listing and the Bank’s
• Account not coded as public funds will not be covered
by additional collateralization required
COLL-91 forms are reviewed and the accounts matched by the
NC Department of State Treasurer’s Banking Operations
Section to the collateral reports filed by the Depositories
Both the LGC-203 and the COLL 91 reports are required for all
local governments & public authorities, except Charter Schools
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29
COLL-91– NotificationofPublicDeposit
• All public depositors must file the form COLL-91 form
annually, for the quarter ending June 30th
• Due annually: July 25
• Depositories (the banks) providing the Dedicated Method
of collateralization should request the COLL-91 form from
their Public Depositors
• Prepared in triplicate, signed
• original should be mailed to the branch office of the
Depository
• a copy emailed directly to DST financial operations
sbu.collateral@nctreasurer.com - (NEW)
• a copy for your records
Questions or assistance needed?
LGC-203 – DST SLGFD
Becky Dzingeleski 919-814-4287
Becky.Dzingeleski@nctreasurer.com
COLL-91- DST Financial Operations Division
Cherin Bland 919-814-3889
Cherin.Bland@nctreasurer.com
LGC-203 & COLL-91
10/27/2016
30
Portfolios
Counties & Municipalities
in North Carolina
Units Investing in the following -
Of553Municipalities
atJune30,2016
Of100Counties
atJune30,2016
GovernmentSecurities 17 GovernmentSecurities 12
GovernmentAgencies 27 GovernmentAgencies 30
CommercialPaper 18 CommercialPaper 29
“Other”: BondProceedsor
expanded Investment
authority
22
“Other”:BondProceedsor
expanded Investment
authority
17
NCCMTCashPortfolio 333 NCCMT CashPortfolio 96
NCCMTTermPortfolio 104 NCCMTTermPortfolio 48
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31
June 2016 County & Muni Statistical Reports
County & Municipal Portfolios Over the last
three years
vWhat they are investing in – combined & separately
vComparisons over time
vDiversity of the portfolio mix
vWhat the June 30, 2016 LGC-203 reports showed for
Counties & Municipalities in North Carolina
County&Municipal
Combinedportfolio’satJune30,2016
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Deposits NCCMT Government
Securities
Government
Agencies
Commercial
Paper
Other
Counties- $7.42Bil
2.29
2.56
0.24
1.79
0.42
0.12
Municipalities- $9.85Bil
2.75
2.07
0.28
3.72
0.30
0.73
BillionsofDollars
10/27/2016
32
Combined County & Municipal
Deposits & Investments
atJune30,2016- 2015- 2014
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
$6.0
Deposits NCCMT Government
Securities
Government
Agencies
Commercial
Paper
Other
2016- $17.28Bil
5.04 4.64 0.52 5.51 0.72 0.85
2015- $17.01Bil
5.29
3.93
0.32
5.43
1.09
0.95
2014- $14.05Bil
4.86
3.59
0.27
3.38
0.96
0.99
BillionsofDollars
County Deposits&Investments
atJune30,2016– 2015- 2014
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Deposits NCCMT Government
Securities
Government
Agencies
Commercial
Paper
Other
CountyDeposits
2016- $7.42Bil
2.29 2.56 0.24 1.79 0.42 0.12
2015- $7.38Bil
2.62
2.00
0.10
2.02
0.54
0.10
2014- $6.71Bil
2.53
1.87
0.09
1.64
0.48
0.10
BillionsofDollars
10/27/2016
33
MunicipalDeposits&Investments
atJune30,2016- 2015- 2014
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Deposits NCCMT Government
Securities
Government
Agencies
Commercial
Paper
Other
2016- $9.85Bil
2.75 2.07 0.28 3.72 0.30 0.73
2015- $9.65Bil
2.67
1.94
0.23
3.41
0.55
0.85
2014- $7.36Bil
2.34
1.72
0.18
1.74
0.49
0.89
BillionsofDollars
PercentChangefrom2015to2016
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
Deposits NCCMT Government
Securities
Government
Agencies
Commercial
Paper
Other
Counties
-12.45%
28.34%
147.08%
-11.39%
-22.53%
26.73%
Municipalities
3.00%
7.02%
25.71%
9.00%
-45.55%
-14.65%
Total
-4.65%
17.84%
61.99%
1.43%
-34.22%
-10.42%
%Change
10/27/2016
34
PercentChangefrom2014to2015
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Deposits NCCMT Government
Securities
Government
Agencies
Commercial
Paper
Other
Counties
3.69%
6.74%
8.92%
22.89%
12.82%
-1.79%
Municipalities
14.26%
12.75%
22.19%
96.32%
13.79%
-4.31%
Total
8.77%
9.62%
17.89%
60.67%
13.31%
-4.06%
%Change
County & Municipal
PortfolioMix- June30,2015
Counties Municipalities
35.6%
27.7%
27.1%
20.1%
28.7%
37.7%
8.6%
14.6%
Deposits NCCMT Gov'tSecurities&Agencies Other
10/27/2016
35
ALL NCLocalGovernment&Public
AuthoritiesInvestments
• NCCapitalManagementTrustCASHPortfolio
583of1153– 51%
• NCCapitalManagementTrustTERMPortfolio
178of1153– 15%
• GovernmentSecurities– 42of1153– 3.6%
• GovernmentAgencies- 74of1153– 6.4%
• CommercialPaper- 50of1153– 4.3%
• Other– 57of1153- 5%