Projo Biz Blog

Renegotiated fees with two financial institutions will result in an annual savings of about $283,000 in the state Treasury. The savings were identified after an analysis of bank statements related to the short term cash management program, which manages the daily cash of the state.

General Treasurer Frank Caprio’s staff used the results of the analysis to approach Citizens Bank and Bank of America to negotiate a reduction in fees of $213,000 annually. Treasury staff also secured the elimination of redundant services which will save an additional $70,000 annually. The state does business with several other banks as part of the short term cash management program and those financial institutions are undergoing the same review process.

Additionally, Caprio said his office is reviewing all of its banking relationships on a quarterly basis to maximize earnings and savings.

Caprio said the state has approximately $40 million in daily cash balances at several financial institutions, along with anywhere from $250 million to $550 million in a range of short term investment vehicles. Those vehicles include government money market funds, US Agency Discount Notes, and highly rated commercial paper. Caprio said the state typically spends approximately $90,000 per month in fees, so the negotiated savings represent an almost 30 percent reduction in fees for the state.

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