2017 Annual Report (Pdf)
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OFFICE OF THE STATE TREASURER FISCAL YEAR 2017 ANNUAL REPORT RICHARD L. SATTGAST STATE TREASURER OF SOUTH DAKOTA STATEMENT OF PURPOSE SUMMARY --- The South Dakota State Treasurer shall be the custodian of all monies paid into the state treasury; keep an accurate account of the receipts and disbursements of the various accounts within the state’s accounting system; monitor the investments of cash by the State Investment Office; secure the deposits of all public funds; and administer the South Dakota Uniform Unclaimed Property Act. SELECT LEGAL CITATIONS-----Election ----powers and duties. S.D. Const. art. IV, § 7. General duties, SDCL 1-10-1. Annual report to Governor, SDCL 1-10-2. Appointment of deputy, SDCL 1-10-4. Public officers and employees, SDCL title 3. Official bonds, SDCL 3-5-3. Full-time devoted to duties of office, SDCL 3-8-1. State Board of Finance, SDCL ch. 4-1. Funds maintained in treasury – Local bank accounts, SDCL 4-4-3. Funds, SDCL 4-5-1. Custody and investment of state funds, SDCL titles 4 and 5. Depositories of public funds, SDCL ch. 4-6. Insurance of public deposits, SDCL ch. 4-6A. Authority for state expenditures, acceptance and disbursement of federal funds, SDCL chs. 4-8 and 4-9. Accounts of receipts and disbursements, SDCL 4-10-1. Reconciliation of accounts – adjustments and transfers, SDCL 4-10-4. Uniform Unclaimed Property Act, SDCL ch. 43- 41B. STATE TREASURY STAFF Richard L. Sattgast State Treasurer Rik Drewes Deputy State Treasurer Sandy Tillman Banking Operations Manager Marianne Gabriel Finance Officer/Deposits Manager Amy Stotts Cash Manager/Administrative Assistant Laura Wilson Outreach Manager/Cash Manager Lee DeJabet Unclaimed Property Manager Anissa Grambihler Compliance/Portfolio Manager Amy Ullmann Claims Manager CASH TRANSACTIONS Year Ended June 30 ______________________________ 2017 2016 Percent Increase/ (Decrease) Receipts $ 5,197,293,409 $ 4,955,107,398 4.89% Disbursements $ 5,532,663,886 $ 5,341,285,347 3.58% - 1 - CONTENTS Statement of Purpose --------------------------------------------------------------------------------------------- 1 State Treasury Staff ---------------------------------------------------------------------------------------------- 1 Cash Transactions ------------------------------------------------------------------------------------------------ 1 Fiscal Year 2017 Record Results ------------------------------------------------------------------------------- 2 Letter of Transmittal ---------------------------------------------------------------------------------------------- 3 State Treasurer Richard L. Sattgast ----------------------------------------------------------------------------- 4 Balance Sheets ----------------------------------------------------------------------------------------------------- 5 Fund Balances: Depositories of State Funds ------------------------------------------------------------------ 6 Cash Balances & Activity ----Grand Total All Funds ------------------------------------------------------- 6 Cash Balances by Fund ------------------------------------------------------------------------------------------- 7 General Fund Revenues Analysis by Source----All Accounts ------------------------------------------- 11 2017 CD Portfolio ----------------------------------------------------------------------------------------------- 12 Office Expenditures --------------------------------------------------------------------------------------------- 13 Program Performance ------------------------------------------------------------------------------------------- 14 South Dakota State Treasurers -------------------------------------------------------------------------------- 15 FISCAL YEAR 2017 RECORD RESULTS 2017 2016 Total Resources ........................................................... $ 12,196,354,350 $ 11,616,895,123 Receipts ....................................................................... $ 5,197,293,409 $ 4,955,107,398 Eligible Collateral ........................................................ $ 2,220,832,602 $ 2,303,707,247 Certificate of Deposit ................................................... $ 29,211,000 $ 30,554,000 Total Unclaimed Property Receipts ............................. $ 85,402,857 $ 75,262,672 Unclaimed Property Claims Paid ................................. $ 27,558,407 $ 19,407,853 - 2 - LETTER OF TRANSMITTAL Office of the State Treasurer Richard L. Sattgast, State Treasurer Rik Drewes, Deputy State Treasurer 500 East Capitol Avenue, Pierre, SD 57501-5070 Telephone: (605) 773-3378 ● Fax: (605) 773-3115 www.sdtreasurer.gov November 15, 2017 Honorable Dennis Daugaard Governor of South Dakota State Capital 500 East Capitol Avenue Pierre, SD 57501 Dear Governor Daugaard: In conformity with the statutes of the South Dakota Codified Laws, I herewith respectfully submit this annual report of the Office of the State Treasurer disclosing the transactions of the office and the condition of the various funds and bank balances. Additionally, the report describes the receipt, maintenance, protection, and disbursements of the state’s public monies for the fiscal year ending June 30, 2017. Respectfully submitted, Richard L. Sattgast South Dakota State Treasurer - 3 - STATE TREASURER RICHARD L. SATTGAST State Treasurer Rich Sattgast, graduated from Spearfish High School and later earned his B.S. in Political Science and Business Administration from Black Hills State University. Rich has served 25 years in both the active and reserve armed forces. Sattgast’s military career includes service with the Occupation Force in Berlin in the 1980’s, Desert Storm in the 1990’s, and the National Guard and Reserve. First elected to statewide office as State Auditor in 2003, Rich is proud to serve the people of South Dakota as their State Treasurer. In addition, in 2015 Rich was appointed by Governor Daugaard to serve as an Acting Public Utility Commissioner concerning the Dakota Access Pipeline. The State Treasurer is the state’s chief banking official. The treasurer serves as the receiver and custodian of all state funds. The office manages the state’s banking relationships and state fund transfers. Its primary responsibility is the depositor of all state public funds. The office also administers the state’s unclaimed property program, oversees repayment of certain student grant and loan programs, administers the Teen Court Grant program fund and the Commission of Equal Access to our Courts, promotes financial literacy for high school students, and supervises local bank accounts held by various state agencies. The office directs all electronic fund transfers. The State Treasurer is a member of the State Investment Council, which is affiliated with the Office of the State Treasurer for administrative purposes. - 4 - BALANCE SHEETS Year Ended June 30 Cash Assets 2017 2016 CASH AND CASH EQUIVALENT ASSETS $ 12,196,354,350 $ 11,616,895,123 Total Assets $ 12,196,354,350 $ 11,616,895,123 Year Ended June 30 Summary of Distribution 2017 2016 ACTIVE ACCOUNTS: First PREMIER Bank, Sioux Falls $ 4,446,546.59 $ 87,397.02 Dakota State Bank, Pierre $ 13,472.85 $ 2,770.54 INVESTMENT COUNCIL Investment Council: Investment Funds $ 1,244,221,929.92 $ 1,213,522,966.57 School and Public Lands: Investment Accounts $ 255,171,366.30 $ 238,486,950.92 SD Retirement System: Invested $ 9,768,410,466.72 $ 9,287,431,444.04 Dakota Cement Trust $ 277,987,366.77 $ 264,198,419.61 Healthcare Trust $ 126,278,905.79 $ 119,516,792.67 Education Enhancement Trust $ 490,613,295.58 $ 463,094,382.29 CERTIFICATES OF DEPOSIT: Savings & Loans and Credit Unions CDs $ 3,250,000 .00 $ 5,101,000.00 Banks CDs $ 25,961,000.00 $ 25,453,000.00 Total Resources $ 12,196,354,350 $ 11,616,895,123 - 5 - FUND BALANCES: DEPOSITORIES OF STATE FUNDS Year Ended June 30, 2017 Interest Bearing Active Certificates of Deposit Value of Collateral Accounts (Number of Certificates) (Securities Pledged) INACTIVE DEPOSITORIES Banks and Trusts in State $ 0.00 $ 25,961,000 (42) $ 2,164,717,947.91 (71) Savings and Loans in State $ 0.00 $ 250,000 (2) $ 36,664,654.76 (3) Credit Unions in State $ 0.00 $ 3,000,000 (4) $ 19,450,000.00 (5) ACTIVE DEPOSITORIES: Bank of NY Mellon, New York $ 0.00 $ 0.00 $ 0.00 First Premier Bank, Sioux Falls $ 4,446,546.59 $ 0.00 $ 54,884,655.61 Dakota State Bank, Pierre $ 13,472.85 $ 0.00 $ 0.00 FY 17 Total Public Funds $ 4,460,019.44 $ 29,211,000 $ 2,220,832,602.67 FY 16 Total Public Funds $ 90,167.56 $ 30,554,000 $ 2,303,707,247.27 % Increase (Decrease) -4.40% -3.60% CASH BALANCES & ACTIVITY ---- GRAND TOTAL ALL FUNDS FY 2017 FY 2016 Beginning Balance ........................................ $ 1,137,256,215.37 $ 1,193,009,387.81 Increases to Cash ......................................... $ 21,228,660,522.93 $ 20,651,403,833.04 Decrease to Cash ........................................... $ 21,199,284,264.78 $ 20,707,157,005.48 Ending Balance ............................................. $ 1,166,632,473.52 $ 1,137,256,215.37 - 6 - CASH BALANCES BY FUND BALANCE INCREASES DECREASES BALANCE FUND DESCRIPTION JUNE 30, 2016 TO CASH TO CASH JUNE 30, 2017 1000 STATE GENERAL FUND 87,170,517.78 2,445,520,161.18 2,448,312,041.06 84,378,637.90 2001 BOR CENTRAL OFFICE FEDERAL FUNDS 24,758.43- 771,440.57 777,284.75 30,602.61- 2002 ENVIRONMENT & NAT. RESOURCES FEDERA 698,228.06- 20,770,451.28 21,204,132.19 1,131,908.97- 2003 HUMAN SERVICES FEDERAL FUNDS 1,806,947.74- 253,805,877.21 253,451,886.76 1,452,957.29- 2004 SOCIAL SERVICES FEDERAL FUNDS 10,678,489.43- 936,483,303.33 934,431,289.10