Provide banking assistance and services to State agencies. The cash management function of the State Treasurer’s Office includes accepting money for deposit (through the fiscal agent bank), processing withdrawals, reconciling all bank transactions and balances, and managing securities used as collateral in accordance with Federal Reserve requirements. The State Treasurer’s Office acts as the state’s bank and records the receipt and disbursement of all state moneys defined by statute as being in the custody of or payable to the State Treasurer.
Validate bank activity. The State Treasurer’s Office validates deposits and withdrawals into and out of the state’s fiscal agent accounts, including all adjustments to the accounts such as returned checks, stop payments, and other miscellaneous bank account transactions. This process helps identify and eliminate fraudulent activity.
Act as paying agent on the State’s outstanding debt/bond issues. The State Treasurer’s Office is the paying agent for state-issued bonds and is required to make all debt payments on scheduled maturity dates to designated payees.
Manage and invest the state’s operating cash. The Chief Investment Officer invests money in the custody of the State Treasurer’s Office that is not immediately needed for the operations of state government. In accordance with this fiduciary responsibility, all investments made by the State Treasurer’s Office must follow three fundamental principles: safety, liquidity, and yield, prioritized in that order.
Manage and invest the state’s bond proceeds until needed for project costs. The State Treasurer’s Office is responsible for investing bond proceeds from the issuance of general obligation bonds, severance tax bonds, and supplemental severance tax bonds, which are long-term obligations issued by the State of New Mexico to fund various infrastructure projects on behalf of the State of New Mexico.
Manage and invest the New Mexico Local Government Investment Pool (LGIP) on behalf of New Mexico’s local governing entities. The LGIP is a Standard & Poor’s AAAm-rated money market fund offered by the State Treasurer’s Office to eligible local public bodies. The State Treasurer’s office’s ability to combine moneys received from local public entities into an investment pool offers these entities greater purchasing power and the economy of scale necessary to secure the best yields with the lowest possible participant fees.
Enforce the State’s collateral policy on financial institutions holding State money. Collateral ensures adequate protection of State money deposited by agencies in local banks, the State’s fiscal agent account, and ancillary receivership deposits. The State Treasurer’s Office’s Collateral Section reviews, tracks, and reconciles collateral pledged by financial institutions to secure public deposits.