Kennedy Says System Helps State Earn More Interest on Its Money

BATON ROUGE, LA – The Louisiana Department of Wildlife and Fisheries (LDWF) and the Office of Student Financial Assistance (OSFA) are the newest state agencies to implement lock-boxes to increase the efficiency and accuracy of state deposits, according to State Treasurer John Kennedy.

The Treasury advises other state agencies on how to better manage taxpayer dollars and regularly gives guidance on banking technologies to improve the way disbursements and deposits are made, said Treasurer Kennedy. We’ve discovered that lock-boxes are a terrific cash management tool because they help agencies deposit money into the bank more quickly. This means we earn more interest on our money by taking advantage of the immediate investment of state funds.

To set up a lock-box, a state agency opens a special post office box with the state’s central depository bank and directs citizens to remit payments and other paperwork to that location. The bank retrieves mail from this lock-box four to five times a day, processes receipts and other paperwork for the state agency, and makes deposits without delay into the State Treasury’s bank account.

The LDWF uses a lock-box to shorten the processing time of boat registration renewals, and the OSFA uses one to handle student loan repayments. The OSFA also plans to expand its lock-box to include deposits for the START college savings program.

Other state agencies considering lock-boxes include the Department of Revenue, Department of Public Safety and Department of Insurance, and I encourage even more to jump on board to increase the efficiency of their operations, said Treasurer Kennedy. Lock-boxes also help state agencies focus more of their time on serving the public instead of processing paperwork, and they reduce the opportunity for mistakes when handling state funds.

For more information, visit www.latreasury.com, or call the Louisiana Department of the Treasury at (225) 342-0049.

Contact:
Sarah Mulhearn
(225) 342-0012