Centralized Treasury and Securities Management Division (CTSMD)

Electronic Fund Transfer and Deposit Programs for State Agencies

Electronic Fund Transfer Program

The Electronic Fund Transfer (EFT) Contract is managed by CTSMD and currently held by MUFG Union Bank, on behalf of major revenue collecting agencies, under which the state collects over $95 billion annually. EFT is an electronic method for making payments. Banks, corporations and individuals must use EFT if their quarterly estimated tax payment or extension payment exceeds $20,000 or if their total tax liability exceeds $80,000.

If a tax-payer does not meet the mandatory EFT requirement, they can still file by EFT on a voluntary basis as it is a secure, efficient and cost-effective method to make payments. Under the EFT Program, funds are transferred from the tax-payer’s bank account to the State’s bank account. Payment information is transmitted to the appropriate tax collecting agency, eliminating the need to send a paper check and payment document.

Miscellaneous Sort Deposit Program

The Miscellaneous Sort Deposit Contract is managed by CTSMD and currently held by Bank of the West, under which the state collects over $30 billion annually. Under this program, Bank of the West acts as a depository for daily Miscellaneous Sort bank deposits for the State’s pre-sorting agencies (these are the major revenue collecting agencies). The State’s major revenue collecting agencies presort their checks by the bank on which they are drawn to expedite the availability of funds and to reduce or eliminate float. Checks, which are not drawn on one of the 8 depository banks are grouped as miscellaneous and processed by the bank that holds the contract at the negotiated float factor.

Electronic Deposit Form (EDF) Program

The State Treasurer's Office (STO) has developed an Electronic Deposit Form (EDF) Internet-based application for use by California state agencies. This application allows an agency to access on-line Report of Deposit (ROD) forms and key their deposit information directly into our EDF application.

Electronic Check Image and Deposit Programs

The State Treasurer's Office (STO) supports the implementation of Image Cash Letter (ICL) and Remote Site Deposit (RSD) processing for check imaging and making deposits into the Centralized Treasury System (CTS).