Treasurer of State | Ohio Pooled Collateral System | Ohio CPA Firm
Beginning July 1, 2017, financial institutions will be encouraged to take part in the OPCS, which will allow participating financial institutions to pool collateral for Ohio public entities. Read on to find out what this change means to you.

Recent legislation resulted in the creation of the Ohio Pooled Collateral System (OPCS), an interactive, web-enabled portal monitored by the Treasurer of State, which will allow participating financial institutions to pool collateral for Ohio public entities. Through this system, financial institutions will be able to pledge a single pool of collateral to the Treasurer of State for all public depositors.

To streamline efforts, the Treasurer of State is developing the OPCS website (“Portal”). This portal will be used to collect the report balance and collateral data used by banks and governmental entities.

Read Also: Full Disclosure: Government Entities Must Now Disclose Tax Abatement Agreement Information

While the creation of the OPCS will not impact your entity’s ability to select which eligible financial institution holds your deposits, financial institutions will have two options for collateralizing public funds. They can either join the OPCS to secure pooled collateral, which will reduce the collateral required to 102 percent of uninsured public funds or they can collateralize with specific pledged securities at 105 percent of each governmental entity’s uninsured public funds.

How will the OPCS work?

Financial institutions will be expected to report public deposit balances on the portal daily. With this data, the Treasurer of State will be able to:

  • Price collateral daily
  • Compare the total market value to the total amount of public deposits by financial institution
  • Post daily results

What’s this mean to me?

If your financial institution does not participate in the OPCS program, you will be required to maintain a record of all pledged securities at all times. However, if your financial institution does participate in the new OPCS, moving forward, you will need to:

  • Periodically review your balances on the portal for accuracy and completeness and any discrepancies should be reported to the financial institution immediately.
  • Inform your financial institution of any anticipated significant changes in the amount or activity of your deposits.
  • Use the portal to confirm your account details (balances and contact information) at least annually. If you do not have a portal account, a hard copy of the report and attestation form will be mailed to you.

When is this change effective? 

The Treasurer of State expects to have the OPCS in place by July 1, 2017.

As the implementation date approaches, you should expect to receive a variety of helpful resources to ease the transition. The team at Rea & Associates is also a great resource to reach out to if you have questions or need assistance as well. Feel free to email us at any time to learn more about the OPCS, the portal or for tips to help you prepare for this transition.

By Mindee Johnson, CPA (New Philadelphia office)

Check out these articles for more great tips and insight for your entity.

5 Methods For Procurement Success

Who You Contract With Matters

What You See … Isn’t Always What You Get: Employee, Independent Contractor or Gremlin?

Back to news listing