INTEREST-BEARING PRIVATE TRUST ACCOUNTS - 19420.1
(Revised and Renumbered from 19420.3)
Except where prohibited by law, agencies/departments shall deposit private trust moneys in an interest-bearing account at federally insured financial institutions. This requirement does not apply to trust moneys held in reserve for the daily cash needs of the trust.
Agencies/Departments shall credit interest earnings to trust accounts when earnings are credited by the depository institutions and at the time trust accounts are closed.
Agencies/Departments may consolidate funds from individual trust accounts for investment purposes. For example, agencies/departments may purchase Treasury Bills or Certificates of Deposit with consolidated funds to generate more interest earnings for each trust account. Agencies/Departments shall credit interest earnings to individual trust accounts.
Agencies/Departments are responsible for maintaining accountability for each private trust account. Any program to consolidate funds from individual trust accounts requires approval from the Department of Finance, Fiscal Systems and Consulting Unit. For a description of trust investments, see SAM Section 19460.