Providing efficient, accurate & timely banking services
The Banking Division manages the relationships with the Qualified Public Depositories that provide a variety of banking services to the State of South Carolina’s State agencies and universities to support receipt and disbursement of funds including specialized services for merchant payment cards and merchant card processing services. The Division performs the daily cash management functions using modern cash management products to implement best practices for effective cash management to maximize bank available operating funds available for investment beyond what is needed to support cash needs each day. The Division Monitors bank balances to ensure State Funds on deposit are protected with FDIC insurance coverage or are properly collateralized in accordance with State of South Carolina’s Code of Law.
Quarterly Statement of Bank Balances
Statement of balances in the State Treasurer's office showing the bank in which funds are deposited at the close of business:
- serves as the State's authority for the development, control, and maintenance of statewide policies and procedures for banking products and services for SC State Agencies, Colleges and Universities
- provides, establishes and implements banking solutions for South Carolina State agencies and Universities to ensure response to State Agency and taxpayer needs by providing and selecting banking solutions
- monitors the ability to eliminate, amend and initiate changes in bank accounts, services and products required by changes in market conditions or the procurement process
- explores new financial products and improved data delivery methods that will increase its capabilities to provide efficient cost-savings for receipt and disbursement transactions and banking services, reduce reconciling transactions, errors and ease of reporting including increasing remote banking capabilities and reducing paper check disbursements and receipts
- anticipates future banking needs of the state to maintain and contain costs while accommodating the complexity of banking transactions
- ensures adequate protection of State funds on deposit through monitoring of accounts and collateral balances. The Banking Division requires qualified financial institutions to pledge collateral to secure public deposits. Risk assessment reports are analyzed to determine data accuracy, the institution’s financial condition, and the percentage of collateral required. The pledged collateral is monitored and must comply with all State requirements and custodial agreements. Pledged securities are monitored to assure that acceptable, valid, and marketable instruments secure public funds at all times. Custodial banks are monitored to evaluate their strength and stability
- researches and works with banking institutions, and other professional organizations in implementing modern cash management products to implement best practices and accelerate receipts for more effective cash management- and thereby maximize funds available for investment.
Qualified Public Depositories
The Banking Division coordinates the designation of financial institutions that various state agencies and universities use for banking services. These financial institutions are referred to in the SC Code of laws as “qualified public depositories.” Banking services pertain to functions related to both the receipt of funds and the disbursement of funds. The State Treasurer has issued a policy relating to the designation of qualified public depositories.
Various state agencies and universities disburse funds electronically. One of the disbursement methods utilized is Automated Clearing House (ACH) payments. Another term for ACH payment is direct deposit. The State Treasurer has issued a policy for agencies to follow regarding the effective date of ACH payments.
PCI Data Security Compliance
State agencies and universities accepting credit cards must comply with the Payment Card Industry (PCI) Data Security Standard (PCI DSS). The State Treasurer’s Office has issued a policy for agencies’ compliance responsibilities, as well as providing materials to assist agencies in their compliance efforts.
Merchant Card Processing/Payment Gateways
The State has two statewide contracts for use by eligible entities desiring to accept merchant cards. A contract with SunTrust Merchant Services LLC (STMS) pertains to the processing of card payments. A contract with South Carolina Interactive (SCI) is an optional contract supporting card payments via a web portal. The State Treasurer’s Office has guidance regarding options available when a payment gateway is required.
Collateralization of Public Deposits
The SC State Code requires financial institutions accepting public deposits to secure the deposit of funds for amounts that exceed FDIC insurance coverage. In the case of deposits of political subdivisions, the financial institutions have the option to pledge securities under either the dedicated method or pooling method. The Banking Division coordinates and monitors the collateralization process for banks depositing funds with the State Treasurer and for those banks utilizing the pooling method to secure deposits of the political subdivisions.