Cash & Deposits Form Training

Transcription

1 Cash & Deposits Form Training

2 Today s Agenda Purpose of the Cash & Deposits form Provide a reconciliation of Cash and Cash Equivalent to the GL Provide collateralization information for the required note disclosures for the State CAFR Review sample of a completed form Common issues Collateralization of deposits defined Page 2

3 Purpose of the Cash and Deposits Form Page 3

4 Purpose of the Cash and Deposits Form Two Basic Requirements Composition of and Reconciliation to the Agencies Cash and Cash Equivalents reported on the trial balance at June 30 th. Collateralization of Financial Institution Deposits. Page 4

5 Purpose of the Cash and Deposits Form GASB Statement No. 3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, as amended by GASB Statement No. 40, Deposits and Investment Risk Disclosures. The Statement requires certain note disclosures: Disclosure of deposit information Reconciliation of deposits to cash and cash equivalents The portions of each item that are interest bearing, non-interest bearing, insured, and custodial credit risk. Page 5

6 Purpose of the Cash and Deposits Form - Reconciliation Disclosure of Deposits Page 6

7 Purpose of the Cash and Deposits Form - Reconciliation Reconciliation of deposits to cash & cash equivalents Page 7

8 Purpose of the Cash and Deposits Form - Collateralization Page 8

9 Purpose of the Cash and Deposits Form - Collateralization Custodial credit risk - Insured, collateralized, or uncollateralized FDIC insured not at risk. Collateralized not at risk (pledged with trust/agent in State s name). GASB 40 Collateralization categories: Uncollateralized Collateralized with securities held by the pledging financial institution Collateralized with securities held by the pledging financial institution s trust department or agent but not in the depositor-government s name Page 9

10 Deposits Not Exposed to Custodial Credit Risk State Accounting Office $965, in Deposits with CB&T Bank Category 1 $250,000 FDIC Insured Category 2 Collateralized above $250,000 with Trust Department In SAO s Name In SAO s Name BB&T BANK BB&T BANK GA State Pledging Pool Or Other Pledging Arrangement Deposits Exposed to Custodial Credit Risk Must Include in NTFS Category 3 Collateralized above $250,000 with Trust Department NOT In SAO s Name Category 4 Collateralized above $250,000 HELD WITH BANK NOT In SAO s Name Category 5 Uncollateralized BB&T BANK TRUST/AGENT NOT HELD in SAO s Name BB&T BANK BB&T BANK Uninsured and collateralized with securities held by the pledging institution s trust department or agents, but not in the State s name. Uninsured and collateralized with securities held by the pledging institution. Uninsured and uncollateralized

11 Purpose of the Cash and Deposits Form - Collateralization Georgia State Pledging Pool Program Administered by the Georgia Bankers Association Services, Inc. Requires collateralization of 110% of deposits Collateral held by various Custodians Contact Kenyetta with EIN # Current list of participating banks as of April 2014 Ameris Metro Bank SunTrust Bank, NA Bank of America Northeast GA Bank Synovus BB&T Funds Management Persons Banking Company The Brand Banking Company Commercial Banking Company Planters & Citizens Bank The Coastal Bank First State Bank Queensborough National Bank & Trust Co. The First Bank of Georgia Georgia Bank & Trust PNC Bank United Community Banks Hamilton State Bank SCBT, NA Page 11

12 Review sample of a completed form Review of form and discussion of common issues Page 12

13 Review sample of a completed form Form Tabs Checklist Instructions Appendix A Deposit Analysis Short A Deposit Analysis Long B Cash Recon Inquiry to send to Banks Form Completion Examples Page 13

14 Review sample of a completed form Appendix This tab provides definitions of the 5 categories of collateralization A short list of Banks included in the Georgia State Pledging Pool is included. Page 14

15 Review sample of a completed form A Deposit Analysis This tab provides collateralization information to create the required note disclosures in the State s CAFR Question anything in credit risk categories 3 5 Errors in reconciliation will appearing in RED and must be corrected prior to submission Total Deposits to Part B Page 15

16 Review sample of a completed form B Cash Recon Total Deposits amount flows from A Deposit Analysis sheet Total Cash/Cash Equivalents (all funds) should tie to GL for Cash/Cash Equivalents Reconciling Items: (1) LGIP Pooled investments (2) Petty Cash (3) Delete CD s with maturities > 3 months reported on GL as investments (4) Other reconciling items Page 16

17 Recap We talked about the purpose of the Cash & Deposits form and why agencies are required to complete it We talked in detail about disclosures related to deposit collateralization And finally, we reviewed samples of a completed form Page 17

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