January 12, 1983

COMPTROLLER'S MEMORANDUM NO. 13 (1982-83)

SUBJECT: NOW ACCOUNTS FOR STATE FUNDS

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Public Law 93-100 [(12 USC 1832 (a) (2)] was amended to permit financial institutions to offer NOW (negotiable order of withdrawal) accounts to state and local governments. The purpose of this memorandum is to establish procedures for the handling of earnings on Revolving funds and Clearing Accounts maintained outside the State Treasury, and deposited in NOW accounts.

If the Revolving Funds are funded from the General Revenue Fund, the earnings thereon should be deposited to the General Revenue Fund, 1-000-0000-05. If the Revolving Funds are funded from a Trust Fund, the earnings thereon should be deposited to the appropriate trust fund, interest account, 2-XXX-XXXX-05. Earnings on these accounts should be returned to the State Treasury on a quarterly basis and deposited to the appropriate accounts. If the Revolving fund is funded from a statutorily authorized accounts outside the State Treasury, then the earnings should be distributed to the appropriate account outside the State Treasury on a quarterly basis.

Funds which are handled through Clearing Accounts should follow this same pattern with regard to ultimate disposition of the earnings. However, in accordance with Section 18.101, Florida Statutes, earnings credited to these Clearing Accounts may not be maintained in such Clearing Accounts for a period longer than approved by the Treasurer or 40 days, whichever is shorter, prior to its being transmitted to the Treasurer or distributed to a statutorily authorized accounts outside the State Treasury.

In order to maintain an adequate audit trail, it is mandatory that agencies continue to receive the original paid checks on these accounts.

If you have any questions with regard to these procedures, please contact the Bureau of Accounting at 410-9951, Suncom 210-9951.