This chapter is applicable to all agencies of the state of Washington, unless otherwise exempted by statute or rule. The Budget and Accounting Act (RCW 43.88.020) defines the term "Agency" to mean and include "...every state office, officer, each institution, whether educational, correctional or other, and every department, division, board and commission, except as otherwise provided..."

Agencies may request delegation of authority from the Office of the State Treasurer (OST).

The Office of Financial Management (OFM) has the following responsibilities related to agreements with financial institutions:

1. Work with agencies on requests for delegation of cash management responsibilities, and
2. Respond to requests for information concerning fiscal matters.

The Office of the State Treasurer (OST) has the following responsibilities related to agreements with financial institutions:

1. Negotiate master contracts with financial institutions, including but not limited to, contracts for treasury and treasury trust accounts, contracts for services available from local banks, contracts for electronic transfer of funds, including credit cards and debit cards, automated clearing house (ACH) transfers, wire transfers and contracts for lockbox services. Certain responsibilities may be delegated to agencies with OFM's concurrence. An agency delegated any of these responsibilities should use its best efforts to minimize the financial impact of the contract to the state agency, the taxpayers, and the public who uses its services. Refer to Subsection 40.10.50.
2. Pay, at its discretion, for purchased banking services for treasury and treasury trust accounts from the investment income accounts. OST's reimbursement for purchased banking services is generally limited to amounts above an agency's funding for the activity.
3. Advise agencies of new cash management techniques, practices, procedures and other efficient methods of collecting and disbursing state money to ensure maximum return on state investments.
4. Assist agencies by increasing their knowledge of applicable depository and investment statutes.
5. Advise agencies of required language that must be included in any Request for Proposal (RFP) and/or agreement/contract that has either an electronic funds settlement component or involves a vendor who holds funds for a period of time before remitting them to the state. This language must be included to mitigate the risk of loss of funds to the state.

1. Contact the Office of the State Treasurer (OST) for information on specific services available from financial institutions and for assistance in banking negotiations to set up new local accounts or to expand the services of an existing local account. Agencies seeking delegated authority to negotiate contracts with financial institutions are encouraged to contact OST as early as possible.
2. Agencies seeking delegation of authority must provide documents for OST's review. The following documents are normally required to ensure that resulting contractual arrangements reflect sound business practices at minimized costs, using economies of scale to negotiate favorable fees, while insuring prompt payment and reducing liability:
1. Cover letter requesting delegation of authority,
2. Draft of the RFP or Request for Information (RFI), and
3. Draft of the banking contract.
3. Work with OST and the Public Deposit Protection Commission (PDPC) to ensure that all cash management laws have been met.
4. When preparing an RFP and/or agreement/contract that has either an electronic funds settlement component or involves a vendor who holds funds for a period of time before remitting them to the state, an agency must contact OST. OST will provide required language to be included in the documents that is essential to mitigate the risk of loss of funds to the state.