0300 Cash Management

The purpose of this policy is to ensure that neither the federal government nor the State of North Carolina benefits or suffers financially as a result of the transfer of cash in support of State-administered federal assistance programs. This policy shall apply to all funds received from federal assistance programs and deposited into the State Treasurer's account by agencies and institutions.

All school administrative units and their officers and employees are subject to the provision of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to the school administrative unit for expenditure by warrants drawn on the State Treasurer.

All agencies, institutions, bureaus, boards, commissions, and officers of the General Court of Justice as defined in Article IV of the Constitution are subject to the provisions of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer; provided, that the provisions of G.S. 147-86.11 shall not apply to any funds deposited with a clerk of superior court unless the beneficial owner of the funds is either the State or a local governmental unit of the State.

All community colleges and their officers and employees are subject to the provisions of G.S. 147-86.11 with respect to moneys required by law to be deposited with the State Treasurer and with respect to moneys made available to them for expenditure by warrants drawn on the State Treasurer.

All agencies, institutions, departments, bureaus, boards, commissions, and officers of the State shall devise techniques and procedures for receiving, depositing, and disbursing monies in their control and custody that are designed to maximize interest-bearing investment of cash while minimizing idle and nonproductive cash balances. This policy applies to the General Court of Justice, public school administrative units, and community colleges with respect to receiving, depositing, and disbursing monies required by law to be deposited with the State Treasurer and with respect to monies made available to them for expenditures by warrants drawn on the State Treasurer. All cash deposited with the State Treasurer by State agencies should be managed in pooled investment accounts to maximize interest earnings. This policy shall include the acceptance of electronic payments in accordance with G. S. 147-86.22 to the maximum extent possible consistent with sound business practices.

OSC develops, implements, and amends the Statewide Cash Management Policy for all State agencies. The Office of the State Auditor (OSA) monitors agency compliance with the cash management policy. The State Treasurer publishes a quarterly report on all funds in the control or custody of the State Treasurer, showing cash balances on hand, investments of cash balances, and a comparative analysis of earnings and investment performances.

The State Controller, with the advice and assistance of the State Treasurer, the State Budget Officer and the State Auditor, is charged with developing and implementing a uniform statewide plan to carry out the cash management policy for all State agencies, departments and institutions. This Statewide Cash Management Plan outlines the policies, duties, responsibilities and requirements for cash management within State government on a broad basis. It is the responsibility of each agency, department and institution to prepare a cash management plan that meets both the requirements of the Statewide Plan and the unique cash management needs of the individual agency, department or institution. When used in this policy, "State agency" means any agency, institution, bureau, board, commission or officer of the State; however, except as provided in G.S. 147-86.12, 147-86.13, 147-86.14, and 147-86.22, this policy does not apply to the agencies, institutions, bureaus, boards, commissions and officers of the General Court of Justice as defined in Article IV of the North Carolina Constitution or to the local school administrative units and community colleges and their officers and employees.