Banking Information

The goal of the Office of the State Treasurer is to ensure effective internal control of State cash transactions by providing centralized cash collection, processing, disbursement and management of state funds.

From an accounting perspective, we work toward internal control through proper segregation of duties—the Treasurer is appointed by the Legislature, while the Department of Administrative and Financial Services is part of the Executive Branch of State government. Our ‘independence’ in collection and processing of state revenues, bank reconciliations, and cash management helps to maintain checks and balances.

Title 5: Administrative Procedures and Services, Part 1: State Departments, Chapter 7: Treasurer of State, Section 131, states:

1.  Departmental collections; immediate payment to State Treasury.  A department or agency of the State collecting or receiving public money, or money from any source whatsoever, belonging to or for the use of the State, or for the use of any state department or agency, shall pay the money immediately into the State Treasury, without any deductions on account of salaries, fees, costs, charges, expenses, refunds, claims or demands of any description whatsoever.
[PL 2019, c. 326,  §1 (NEW).]

2.  Certain payments not immediate.  Notwithstanding subsection 1, payments from a department or agency of the State made to the State Treasury through the use of automated procedures, electronic processes and computer driven technology must be deposited in the State Treasury in accordance with the requirements established in rules adopted by the Treasurer of State and the State Controller. The Treasurer of State and the State Controller shall adopt rules to implement this subsection, including rules outlining procedures for the use of automated procedures, electronic processes and computer driven technology for the collection of these payments pursuant to this subsection. Rules adopted pursuant to this subsection may not waive prohibitions against deductions on account of salaries, fees, costs, charges, expenses, refunds, claims or demands of any description whatsoever. Rules adopted pursuant to this subsection are major substantive rules as defined by section 8071.

As the clearinghouse for all of the State's cash revenue, totaling nearly $10.6 billion for the last fiscal year, the Office of the State Treasurer is responsible for managing the State's cash transactions and banking relationships.

We maintain two primary bank accounts, one for check disbursements and one to concentrate all cash inflows, to accommodate the banking service needs of State agencies. In addition, there are 27 specialized accounts that accommodate unique requirements or functions of individual agencies that cannot be met through the more general accounts.

These accounts include an electronic disbursement account, a payroll checking account, a payroll direct deposit account, a credit card settlement account, two Lottery accounts, four specialized Labor accounts, five accounts for tax deposits and refunds for Maine Revenue Services, a checking account to process restitution payments to victims of crime, one Bureau of Financial Institution EFT account, three Department of Administrative and Financial Services accounts, three DHHS specialized services accounts, and one IF&W specialized account.

Proprietary software systems may produce data files which may be transmitted to the bank (i.e. check issuance information), or may require standardized imports from the bank to feed a proprietary system.

In addition to these accounts and services, the Treasurer currently maintains 11 deposit accounts with satellite banks throughout the State in order to meet geographic needs and provide operational flexibility.

The Office of the State Treasurer is responsible for processing revenues to the State’s accounting system through its electronic revenue collection system.

Unmatched or open reconciliation items between the State’s accounting system and actual banking transactions are researched and the Office of the State Treasurer works with the appropriate State agency or the appropriate bank for resolution.

We also work with State agencies to procure advantageous arrangements for new petty cash, escrow accounts, and/or non-operational accounts seeking security, minimal fees and maximum interest earnings.