A bank account may need to be opened and maintained by an agency for revenue collections, cash advances, or other authorized agency sole custody purposes. Pursuant to Section 106 of the State Finance Law requires that ALL monies received by any state officer or persons receiving moneys shall be deposited in a bank or trust company approved by the State Comptroller. Upon this mandatory approval, the Bureau of State Accounting Operations Cash Management Unit (BSAO CMU) will arrange for payment of banking services and collateralization of accounts.

It is the policy of OSC that all state agencies obtain the most economical and beneficial banking services and such banking services adequately meet the program needs of each department as well as provide for the maximum utilization of the state's cash. It is also the intent of OSC to limit the number of state bank accounts and the services provided to the minimum level necessary to meet these goals.

Agencies have responsibilities pertaining to these accounts including no less than monthly account reconciliations, monthly and annual reporting requirements, escheatment of uncashed checks, and recordkeeping. State agencies are required to provide monthly reports to the Commissioner of Taxation and Finance of all bank account balances under the administrative control of the agency. Section 107 of the State Finance Law requires the Commissioner of Taxation and Finance to publish in the State Register, on or before the last day of each month, a detailed statement of all balance(s) on deposit in any bank account under the administrative control of any state officer or board. This includes, but is not limited to: agency revenue collection accounts, cash advance accounts, custodial accounts (e.g. inmate funds, patient accounts, etc.), agency funds, etc.

The State Comptroller must ensure compliance with SFL §111 that provides that no money in the possession, custody or control of any officer, agent, or agency of the state and no monies in or belonging to any fund or depositary, title to which is vested in the state, shall be paid, expended or refunded except upon audit by the State Comptroller. Monies held in a fiduciary capacity (title is not vested in the state) by an officer of the State such as inmate or client funds does not apply to this section of law.

Guide to Financial Operations

REV. 09/14/2015