Overview

Pursuant to the State Finance Law, §98, the State Comptroller shall invest and keep invested all moneys belonging to any and all funds (of the State) in classes and kinds of investments that are identified in this section of law. The Comptroller is responsible for the investment of State funds until they are needed to support day-to-day operations and to make appropriated and in some cases, non-appropriated payments.

The Short Term Investment Pool (STIP) is comprised of all the operating cash of the State Treasury, State agencies, authorities, municipalities, and other political subdivisions on deposit in the State’s General Checking Account (GCA). The daily investments of the STIP are managed by the OSC Pension, Investments and Cash Management Division and is comprised of high-quality, short-term investments. It allows for separate accounting for individual fund receipts and disbursements AND the pooling of cash assets of the funds within the State’s GCA for the purposes of short-term investments.

The STIP investment objective is to seek a high level of interest income consistent with safety of principal and sufficient liquidity to meet the State’s daily cash flow requirements.

While all funds in the STIP participate in the calculation of interest earnings, pursuant to SFL §98-a, only those funds that are authorized to receive interest (or be charged interest) will have interest earnings posted or recorded to the fund once a month. Enacted legislation should be reviewed by state agencies every fiscal year to determine the impact of legislative changes on interest received in current and new funds of the State.

Guide to Financial Operations

REV. 09/14/2015