What We Do
The Office of Treasurer of State of Arkansas was established by the Constitution of 1836, with the Treasurer being selected by a joint vote of both houses of the General Assembly. Since that time, each Constitution has provided for a Treasurer of State.
The first person selected, Treasurer of State, was better known for having established the first newspaper in Arkansas. William E. Woodruff, the founder of the Arkansas Gazette, served as Treasurer of State from 1836 through 1838.
The State’s Banker
The Treasurer of State serves as the State’s banker and is responsible for an investment portfolio of approximately $9 billion. Every day, our staff accepts deposits, reconciles accounts, prepares statements, and answers customers’ questions. As the bank for the State, the office provides many of the same services as private banks.
On average, the office accepts more than $70 million daily in deposits from various local, state, and federal sources and credits them to the proper accounts. These deposits are made up of electronic funds transfers, checks, and cash. We process between 2,000 to 3,000 checks and reconcile over 3,000 accounts daily, representing the funds of nearly 200 state agencies, boards, and commissions.
One of the most toured places in the office is the vault. The vault weighs 22,000 pounds — or the weight of two full-grown elephants — and was built between 1910 and 1912. Thousands of visitors each year, from every state and many foreign countries, visit the vault. School groups from around the state regularly visit the Capitol and come to the vault to take a picture holding anywhere from $100,000 to half a million dollars.
The door and the vault itself are two of the most interesting features for all visitors who come for a tour. The vault was shipped by train to Little Rock from the Mosler Safe Company in Hamilton, Ohio. Transporting the vault door from the train station to its current location in the Capitol proved to be a challenging task. A separate rail spur line had to be built to connect the train station to a second-story window in the Capitol building in order to get the door in its rightful place inside the Treasurer’s Office suite.
The vault lock also tells a story of its own. It is controlled by a timing mechanism built by a Swiss clockmaker. This is an entirely mechanical device and cannot be hacked. Each day, our tellers close the vault and set its timer, which controls when the vault can be reopened. The vault lock is not controlled by or connected to, any Internet-controlled device.
Individuals and small groups are welcome anytime between 8 a.m. and 4:15 p.m., Monday through Friday. For large groups, it may save you some time to schedule your visit so as to avoid waiting for other visitors to finish their tour. Please use the contact form to schedule your visit.
Cash Management Division
The Cash Management Division works with banks and investment firms, initiating daily payment wires and fund transfers to and from the Treasury’s demand accounts to maintain consistent balances. This division also coordinates with the Department of Finance and Administration and other agencies concerning state fund transfers, adjustments, and collection items.
In addition, the Cash Management Division distributes General and Special Revenues on a monthly basis to state agencies, colleges, and universities according to the Revenue Stabilization Act. Interest-earning distributions are completed monthly as set forth by law. Finally, Cash Management balances the General Ledger each day.
Receiving Department
The Treasury receives deposits on a daily basis. All deposits are verified and documented upon receipt. Each day, the receiving department balances its books and submits a deposit summary to the cash management desk. There are five ways money is received by the Treasury:
DIGITALLY: The Treasury implemented the Treasury Receiving Interactive Program, or “TRIP,” portal in 2019. It allows state agency representatives to upload their receipts digitally to the Treasury in real time, improving efficiency and additional security. Approximately 85% of all receipts are now submitted through the TRIP digital portal.
REMOTE CHECK SCANNING: The Treasury implemented the “Check 21” program in 2021, which complements the TRIP portal in that it places remote check scanners at agencies in order to simplify the process of sending deposits to the Treasury. Using the Check 21 program, agency representatives can send deposits directly to the Treasury without ever leaving their desks, improving efficiency and security.
DELIVERIES: State agency personnel deliver deposits to the Treasury. State agencies collect money for fees, taxes, etc., which is deposited to the Treasury and then allocated to a respective fund.
FEDERAL RESERVE WIRES: Agencies request funding from the Federal Reserve Department. Once funding is approved, the agencies set up an account at the Treasury. The Federal Reserve wires money to the Treasury, where agency personnel can access the federal funds.
DFA REVENUE: The Department of Finance and Administration sends a daily deposit with the “Revenue Receipts Deposit” form to the Treasury. The process for verifying the deposit is the same as documented above for deliveries made to the Treasury.
Investment Division
AUTHORITY
The State Treasurer is an executive officer of the state, established by the Constitution of the State of Arkansas, and is required to perform “ all . . . duties which may be required of him or her by law.” One of the responsibilities assigned to the Treasurer is the investment of funds in the State Treasury and the State Treasury Money Management Trust. The Treasurer works under the policies and procedures established by the State Board of Finance concerning the management and investment of these funds.
PRIORITIES
The priorities of the objectives of the State Treasurer’s investment practices are safety first, followed by liquidity, and finally, return on investments.
COLLATERALIZATION
The Treasury requires that banks doing business with the investment program pledge adequate securities and have a market value equal to at least 105% of the amount of Treasury deposits and/or investments (including accrued interest); and that those securities be held by a third-party Financial Institution Custodian. The Collateralization Policy was adopted to ensure that the State Treasury Funds deposited with a financial institution must be secured at all times by conveyance of a perfected security interest in eligible securities as prescribed in Arkansas Code Annotated (Statute Symbol) 9-8-209 and (Statute Symbol) 23-32-1003 and evidenced by a security agreement.
Local Government Services
The Local Government Services division is responsible for distributions to the state’s 75 counties and 500 incorporated cities.
Monthly distributions include County and Municipal Aid, commonly known as turnback funds, and Local Sales and Use Taxes. The Treasury also distributes several other special revenues to cities and counties throughout the year.
In 2020, the Treasury implemented a software system by which cities and counties are notified monthly in real-time of the amounts of their distributions. The system eliminated the need to mail distribution letters to all cities and counties, saving taxpayers roughly $22,000 annually.
Distributions total over $1.7 billion dollars each fiscal year, an important part of our state’s economy.
Warrants Division
A warrant is a check issued by Arkansas State Agencies for payments of services rendered. Warrants can be issued as a paper warrant or an electronic payment. The Warrant Division redeems these warrants once a payee cashes the warrant or the electronic payment is received at the payee’s bank.
529 & Financial Programs
The 529 Division manages the Arkansas Brighter Future 529 Plan, the Achieving a Better Life Experience (ABLE) program for people with disabilities, and the financial education outreach efforts of the Treasurer of State’s office. More information is available at BrighterFutureDirect529.com or by calling the 529 Division at (501) 682-1406.
