Cash Management

The Cash Management Program is responsible for ensuring the availability of cash to meet the State's financial obligations when required.   To carry out this responsibility, the Financial Administration Division is assigned the tasks of receiving, safeguarding, investing and disbursing all funds in the State Treasury.

All State funds deposited with State appointed depositories (financial institutions) are deemed, under State law, to be deposited in the State Treasury.   To protect the deposits, the funds must be fully collateralized by the depository with securities deposited with the Director of Finance as provided in Section 38-2, Hawai`i Revised Statutes (HRS).   All funds that are in excess of immediate needs are invested in the types of investments permitted under Section 36-21, HRS.   Permitted investments are based on the criteria of safety, liquidity and yield, with yield as a secondary consideration, to ensure payment of State obligations.

In the Department's continuous effort to maximize investment income, an investment pool program was implemented in August 1999.   The investment pool program centralizes all phases of the investment process under the sole direction of the Department, thereby pooling the State's vast cash resources to enhance investment returns.   Income derived from investments from the State Treasury annually exceeds $100 million.