NORTH CAROLINA DEPARTMENT OF STATE TREASURER STATE AND LOCAL GOVERNMENT FINANCE DIVISION AND THE LOCAL GOVERNMENT COMMISSION JANET COWELL TREASURER T. VANCE HOLLOMAN DEPUTY TREASURER Memrandum # 2015-09 TO: FROM: SUBJECT: Finance Officers f Cunties, Municipalities, Bards f Educatins and Public Authrities Sharn Edmundsn, Directr Fiscal Management Sectin Instructins fr LGC-203 FORMs: LGC-203EZ & Standard LGC-203 - Reprts due t us by January 25, 2015 DATE: The fllwing reprt is required t be submitted t the Secretary f the Lcal Gvernment Cmmissin by lcal gvernments, bards f educatin, hspitals and public authrities under G.S. 159-33 and 115C-446: LGC-203 (Reprt f Depsits and Investments) infrmatin at. This Semi-annual reprt is due t ur ffice n r befre January 25, 2015 ITEMS OF NOTE PLEASE REVIEW Chse frm the tw LGC-203 frms fr the cycle based n the fllwing: 1. The ONE PAGE LGC203 EZ (Rev. 12-14) frm is t be used by NC Lcal Gvernments wh have their depsits/ investments in nly the fllwing and nthing else: Pling Banks Finistar, CDARS r ICS depsits NC Capital Management Trust Cash r Term Prtfli 2. The Standard LGC 203 (Rev. 12-14) All Public schls, Public Husing Authrity s and all Lcal Gvernment Units wh have depsits r investments in Dedicated Methd Banks and/r any investments in additin t thse listed n the EZ frm. PLEASE USE THE MOST CURRENT REPORT FORMS each reprting cycle. ALL lcal gvernments, bards f educatin and public authrities WITH Micrsft Excel and email shuld cmplete this reprt using the mst current psted LGC-203 Excel wrkbk reprting frm available n ur website at www.nctreasurer.cm. We update the frm each reprting cycle due t changes in Pling Banks and ther statutry requirements. Please email the cmpleted LGC-203 Excel wrkbk reprting frm via email t LGC0203@nctreasurer.cm fr autmated prcessing. DO NOT email the frms directly t staff. 325 NORTH SALISBURY STREET, RALEIGH, NORTH CAROLINA 27603-1385 Curier #56-20-45 Telephne (919) 807-2350 Fax (919) 807-2352 Physical Address: 4505 Fair Meadw Lane, Blue Ridge Plaza, Suite 102, Raleigh, NC 27607 Website: www.nctreasurer.cm
Mem # 2015-09 LGC-203 fr Page 2 Please nte the e-mail address and the zer in frnt f 203. An autmated respnse email is sent nce the reprt is received at the 0203 email address. If yu d nt get an autmated respnse the reprt was nt received, the email address may have been entered incrrectly. PLEASE NOTE LGC-203 reprts will arrive blank and nt be prcessed if the LGC-203 reprt is prepared directly frm the DST Website. Please d nt prepare yur LGC-203 reprt directly frm the DST Website as this is NOT an nline frm at this time. Dwnlad and Save the LGC-203 frm t yur wn system first Prepare the saved LGC-203 reprt directly frm yur wn system. Send the reprt frm yur wn system t LGC0203@nctreasurer.cm NO WEB ACCESS r DO NOT HAVE Micrsft Excel - Please call us at 919-807-2375 (Jenny Jhanns) t request a hard cpy f the LGC-203EZ r Standard LGC-203 frm alng with instructins. We will mail the blank frm t yu. REVIEW all materials applicable t yur unit and fill in all applicable sectins f the LGC-203 EZ (Rev. 12-14) r the Standard LGC-203 (Rev. 12-14), chse whichever frm is applicable t yur Unit f Gvernment. Chse the Name f Unit in the light gray cell frm the drp-dwn list f the names f each unit in ur database that are required t submit a LGC- 203. Yu cannt type a name in that field. If yu cannt find yur unit, please cntact either Becky Dzingeleski r Sara Shippee. Their cntact infrmatin is at the end f this mem. We created the drp dwn list t address prblems with names submitted n the LGC-203 nt matching ur recrds. If yu use ICS r CDARs Depsits please list the amunts in the areas marked under the Dedicated sectin. Finistar - please list bth the pling bank amunts frm yur statement in the Pling Bank Sectin and the amunts listed n the statement as Dedicated Bank amunts in the Dedicated sectin. Attach a cpy f the page(s) frm yur June 30, 2014 statement t the email shwing the varius banks and amunts in which yur funds are invested fr us t review. DISCRETELY PRESENTED COMPONENT UNITS (DPCUs) that are legally separate NC lcal gvernments r public authrity s affiliated with the primary gvernment EX: Turism Develpment Authrities must submit a separate LGC- 203 reprt. Please d nt include the cash and investment data fr DPCUs in the parent gvernment LGC-203 reprt. We are required t review the separate LGC- 203 reprt fr the DPCU indicating the cash & investments f the DPCU. If this is nt received, yu will receive a late reprt letter stating that we have
Mem # 2015-09 LGC-203 fr Page 3 nt received the LGC-203 fr the DPCU. If yu have a questin abut yur specific unit, please call ur ffice at 919-807-2381. Fr Pling Methd depsits, select the light gray cell in the Pling Sectin fr each depsitry with which yu have depsits. Use the bank drp-dwn list t find the name f the bank. If yu cannt find yur bank in the drp-dwn list, it may be fllwing the dedicated methd f depsit. The drp-dwn list is current as f. NOTE - In the past, units have listed their depsits in Pling Methd Banks under the Dedicated Methd Bank sectin f the LGC- 203 reprts in ERROR. Mst lcal gvernments (except fr Husing Authrities, which are required by HUD t use the Dedicated Methd) have all r the majrity f their depsits with Pling Methd depsitries. Select frm the drp-dwn list under the Pling Bank sectin t enter yur Bank. If yur bank is nt n that drp-dwn list, the Bank is cnsidered t be using the Dedicated Methd f cllateralizatin fr which the finance fficer has the respnsibility f mnitring the pledged cllateral cvering the uninsured depsits. If yu have a questin abut where t list yur bank, please call Becky r Sara. Dedicated Methd depsits, please be sure t cmplete the Securities pledged as cllateral and escrw agent sectin in Sectin VIII (light yellw cells) n Page 2, and attach a cnfirmatin statement f the market value f the pledged cllateral frm yur depsitry. Thse units reprting via email shuld attach a cpy f the cnfirmatin t the email and CLEARLY indicate the name f the unit t which it relates. We cannt cmplete ur review f the LGC-203 reprt if we d nt receive these cnfirmatin statements. T avid us having t cntacting yu t request it please be sure and include it. Sectin V. Investments: Gvernment Securities, Gvernment Agencies, Cmmercial Paper, Bankers Acceptance, Other Investments and Repurchase Agreements are n Pg. 2 f the current Standard LGC-203 frm. Please cmpute the market value ttals f each type f investment categry in each f the apprpriate bxes n Pg. 2 f the Standard LGC 203 frm. Please send yur wn separate schedule (required with the LGC-203 reprt) with a clear descriptin fr each f these investment categries, including Name f Custdian, Type-Name f Investment and the amunt fr each investment, purchase amunt, market value as f the reprt date, purchase date and maturity date and any ther special features. This additinal infrmatin is necessary fr ur review/evaluatin f the investments fr cmpliance with General Statutes. EMAIL the cmpleted Excel wrkbk t LGC0203@nctreasurer.cm. PLEASE INCLUDE THE NAME OF THE UNIT IN THE SUBJECT LINE OF THE EMAIL. Fr example City f Dgwd 12-2014 LGC203 EZ. A physical signature is n lnger required n the LGC-203 frm if yu e-mail the wrkbk and
Mem # 2015-09 LGC-203 fr Page 4 include yur cntact infrmatin as an email signature in the bdy f yur email. PLEASE DO NOT INCLUDE questins r cmments abut the preparatin f this frm r ther general cash and investment questins in yur email t LGC0203@nctreasurer.cm AS WE MAY NOT SEE THEM. Instead, email r call Becky r Sara directly with questins r cmments. REPORT DELIVERY OPTIONS Due t ur autmated prcess we prefer the cmpleted LGC-203 reprt t be emailed t us in Excel wrkbk frm t LGC0203@nctreasurer.cm. If this is nt pssible, yu are als free t mail a printed frm t NC Department f State Treasurer, State and Lcal Gvernment Finance Divisin, 325 N. Salisbury Street, Raleigh, NC 27603-1385. We strngly discurage faxed reprts due t them ften being illegible when we receive them. BOARDS OF EDUCATION Must use the Standard LGC 203 (Rev. 12-2014) and als cmplete the LGC-203S, Reprt f Depsits and Investments fr Individual Schls. In the past, sme units have failed t include the LGC-203S prtin f the reprt. See Bards f Educatin sectin later in this mem fr mre infrmatin specific t yur type f unit. HOUSING AUTHORITIES Must use the Standard LGC 203 (Rev. 12-2014). Recently a number f husing authrities have nt submitted cnfirmatins frm custdians indicating market value f cllateral pledged t secure depsits under the Dedicated Methd f cllateralizatin. In rder t cnfirm that cllateral is adequate, we must receive a cpy f these cnfirmatin statements. We will call t request the cnfirmatin statement if it is nt received with the Standard LGC-203 (Rev. 6-2014) reprt. See Husing Authrities sectin later in this mem fr mre infrmatin specific t yur type f unit. Special Instructins fr Bards f Educatin Please read carefully all materials applicable t yur unit and fill in all applicable sectins f the reprt(s). Sample cmpleted LGC-203S are included in the Excel wrkbk at tabs titled Sample 203-S PG 1 and Sample 203-S PG 2. Individual schls shuld include n the LGC-203S nly thse funds in the custdy f the schl treasurer. If the administrative unit is hlding funds fr the individual schls, these funds shuld be listed n the LGC-203S. Please disclse the respective financial institutin(s) with the name f each schl utilizing that bank. Nte: accunt balances fr the individual schls which exceed the FDIC limit f $250,000 and are depsited in Dedicated Methd institutins must be cllateralized and mnitred by the finance fficer.
Mem # 2015-09 LGC-203 fr Page 5 Special Instructins fr Husing Authrities Please nte that all husing authrities are required t utilize the Dedicated Methd f cllateralizatin f depsits. This can be accmplished thrugh the use f any financial institutin in Nrth Carlina regardless f whether they nrmally use the Pling Methd r the Dedicated Methd fr securing depsits. In rder t cmply with applicable HUD regulatins, it is necessary that escrw agreements be executed with each financial institutin hlding husing authrity depsits if the ttal accunt balance is likely t exceed the $250,000, FDIC insurance limits, at any time during the fiscal year. The signed escrw agreement is required in rder t prtect the uninsured depsits f the authrity by prviding that the pledged assets transferred by the financial institutin t the escrw agent (in the name f the husing authrity) wuld be available t fully cver any uninsured depsits (up t the amunt f cllateral) in the case f failure by the financial institutin. The husing authrity finance fficer is respnsible fr: 1) Regularly reviewing the adequacy f the cllateral held by the escrw agent, and 2) Requiring additinal cllateral transfers by the financial institutin when accunt balances exceed the FDIC insurance limits ($250,000) plus the market value f the available cllateral. The cmplete regulatins, prcedures, and the respective N.C. Administrative Cde can be fund in a dcument called Cllateralizatin f Public Depsits in Nrth Carlina, revised April 2013. It can be dwnladed frm the State Treasurer s web site at https://www.nctreasurer.cm/fd/pages/cllateralizatin.aspx. The apprpriate Cllateralizatin frms als are available frm the same web page. Therefre, all husing authrity units that maintain any fficial depsitry accunt that exceeds the $250,000 FDIC insurance limit at any time must cmplete all questins in Sectin VIII in the light yellw cells, including the market value infrmatin (as f ) f the cllateral securities being held by the escrw agent pursuant t the required escrw agreement. Please attach cnfirmatins f pledged cllateral as f frm these financial institutins. Fr thse custdial arrangements that prvide fr the cllateral securities t be held by Federal Reserve Bank branches, please indicate in Sectin VIII the lcatin f the Federal Reserve Branch that is hlding the cllateral securities and cmplete the remaining infrmatin requested in Sectin VIII. Cntact Infrmatin Becky Dzingeleski at (919) 807-2396 - becky.dzingeleski@nctreasurer.cm Sara Shippee at (919) 807-2356 - sara.shippee@nctreasurer.cm.