Cash Management/Bonds

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The Cash Management/Bond Division is responsible for all banking duties of Treasury, including the accurate reconciliation of state funds received in state treasury bank accounts, payment of duly executed warrants and electronic transactions, and approval of cash deposited in treasury bank accounts.   The staff manages and invests excess treasury funds in statutory eligible securities and bank deposits.

This division also maintains financial records for state issued bonds, pays principal and interest on the bond indebtedness of the state and manages unspent bond proceeds.

Cash Management Documents and Forms

Approved State Depository

Any bank or savings association that conducts the business of making loans and taking deposits in the State of Alabama and is an active member of the State’s Security for Alabama Funds Enhancement (“SAFE”) Program may file a written application with the State Treasurer to be designated as a state depository.  A bank must be designated as an approved state depository to hold any State of Alabama monies.

To apply, a bank should complete the Application for Designation of State Depository, attach a copy of the bank’s Certificate of Qualified Public Depository to confirm membership in the SAFE Program, scan and email the documents to deposits@treasury.alabama.gov.  Upon certification by the State Treasurer, the Governor may designate the bank as a state depository.  Once designated, the Treasurer will provide a written order to the bank declaring it a state depository until its authority is revoked. Section 41-14-1-3, Code of Alabama, as amended.

INTEREST DEPOSIT MANAGEMENT SYSTEM (“IDMS”)

The IDMS is a secure online portal to manage interest bearing deposits held in approved state depository banks.  All state depository banks have access to the portal.

LOGIN TO IDMS

Bank features of IDMS:

• Request state deposits
• View available deposit interest rates and maturities
• View available deposit types– CD, TDOA, Linked
• View current Treasury deposits held at bank
• Submit, renew or retire deposit decisions
• View finalized documents
• View messages and announcements from Treasury
• Manage and authorize bank users

Watch the IDMS Tutorial to learn more about the IDMS.

To get started using the IDMS, please complete and email the IDMS Authorized User Representatives Form to deposits@treasury.alabama.gov.

Interest Earning Bank Deposit Accounts

The Treasurer may place monies in an approved state depository.   Currently available deposit products and rates are viewable in the Interest Deposit Management System (IDMS).  New and renewed requests for state deposits should be made through the Interest Deposit Management System on Wednesday. If funds are available and approved, the deposit will be funded two days later on Friday.

The types of bank interest earning deposits statutorily allowed are described below.

CERTIFICATES OF DEPOSIT (CD)

The Treasurer may deposit the money of the state in any available bank product in any bank or savings association that is a qualified public depository under SAFE, so long as the bank or savings association agrees to pay interest on the money.

CDs may have maturities of 91 days, 182 days, one year and two years with the rate of interest paid on each deposit representing a current market rate. Interest is calculated on an actual/actual basis, is payable monthly and credited to the state General Fund.  Section 41-14-30, Code of Alabama, as amended.

TIME DEPOSIT OPEN ACCOUNTS (TDOA)

The Treasurer may apportion TDOA among state banks giving priority to the value and importance of such deposits to the economy of the communities as indicated by its loan to deposit ratio.

TDOA may have maturities of 91 days, 182 days, and 365 days with the rate of interest paid on each deposit corresponding to the rate of the US Treasury obligations of comparable maturity.  Interest is calculated on an actual/actual basis, is payable monthly and credited to the state General Fund.  Section 41-14-33, Code of Alabama, as amended.

LINKED DEPOSITS PROGRAM

The Linked Deposit Program allows the Treasurer to deposit state funds with any state depositary which in turn funds a reduced rate loan in the full amount of the deposit to an eligible borrower.  An eligible borrower is an agricultural, emergency or small business borrower that meets the definition and criteria to participate in the program. 

The initial linked deposit has a maturity of two years at a rate two percent below the Two-Year Constant Maturity Treasury rate and may be renewed for three additional two-year terms.  The minimum linked deposit rate is one percent.

The program is offered at the discretion of the Treasurer.  Section 41-15-50, et al, Code of Alabama, as amended.