Manage Investment Pools (70.7)

Business Process Overview

Section 17.57, Florida Statutes (F.S.), establishes the Chief Financial Officer’s (CFO) responsibilities to deposit and invest State money and establishes the types of investment securities that can be purchased. Section 17.61, F.S., establishes the CFO powers and duties in the investment of certain funds, which include General Revenue (GR), trust, and agency funds, as well as funds from certain boards, associations, or entities created by the State Constitution or law that are part of the Special Purpose Investment Account (SPIA). This statute provides the State funds that cannot receive interest revenue and designates earnings from the balances in those funds be appropriated to GR. It further establishes the annual assessment referred to as the administrative fee that is charged to participants by the Department of Financial Services (DFS), Division of Treasury (Treasury) to administer the investment program.

During the CMS Wave, the Manage Investment Pools business process addresses how interest apportionment is calculated and distributed to Trust Funds, GR, SPIA participants, and the Collateral Administration Program (CAP). The business subprocess included are: 

• 70.7.1 – Manage SPIA Balances
• 70.7.2 – Distribute Interest Apportionment

Treasury maintains and reconciles participant investment and liquidation transactions and the average daily participant investment balance. Treasury invests excess cash and maintains a daily investment balance. The Manage SPIA Balances business subprocess documents the process for recording SPIA participant transactions in Florida PALM. The process integrates Florida PALM with the SPIA application where participants record investment transactions. This integration provides the daily balances for SPIA participants.

The Distribute Interest Apportionment business subprocess documents the monthly process for allocating investment earnings to Trust Funds, GR, CAP, and SPIA participants. The daily balances for Trust Funds, CAP and SPIA participants are maintained in the ledger. Based on the participant’s average daily balance, Treasury apportions investment earnings and administrative fees earned on the investment portfolios monthly. Three critical components are used in the apportionment process: average investment balances, average daily participant balance, and the total amount of investments. The initial allocation apportions interest to Trust Funds, CAP and the SPIA participants. The undesignated investment balance is allocated to GR. A second distribution allocates the interest to individual Consolidated Revolving Accounts (CRA).

Dependencies and Constraints

Dependencies and Constraints describe any conditions or criteria that impact how or when the business process should be executed. These could be set within Florida PALM or from external sources (i.e., Law or Rule).

• Dependent on transaction information from the SPIA application.
• Dependent on agencies recording their investments/disinvestments.

Agency Configurations

The table below identifies the Agency Configurations related to this Business Process. These items are not included within the Business Flow Diagrams; however, these items are important elements of each Business Process.

Conversions

The table below identifies the Conversions related to this Business Process. These items are not included within the Business Flow Diagrams; however, these items are important elements of each Business Process.

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