To be trustworthy stewards of Virginia’s financial resources through prudent management of public funds, unclaimed property, and risks.

To be a leader in providing exceptional financial management and services.

Stewardship: Cultivating an ethic of responsible management of the Commonwealth's resources entrusted to our care

Integrity: Maintaining the highest ethical standards in the way we conduct our business; honoring our commitments and being personally responsible for our words, actions, and results

Excellence: Striving to achieve exceptional results in service to the citizens of the Commonwealth

The Department of the Treasury is an innovative, customer-driven, results-oriented state agency providing statewide financial management services for the Commonwealth.  Treasury’s philosophy of stewardship and service through innovation is part of our culture and has been the hallmark of our program and service delivery.  The agency has a long history of increased productivity and response to customer needs. 

Treasury consists of seven very distinct divisions that serve the Commonwealth.  Debt Management directs financing for capital needs of the Commonwealth and its agencies, boards and authorities.  Risk Management administers statewide insurance and self-insurance programs.  Cash Management and Investments invests the Commonwealth's funds and maintains a statewide banking network. Unclaimed Property administers the Virginia Disposition of Unclaimed Property Act and the Escheats Statute.  Accounting and Trust Services provides support services to Treasury and related boards and authorities for budgeting and accounting for investments, trust and bond funds, and debt issuances.  Check Processing and Bank Reconciliation provides support services for the receipt and disbursement of state funds. Administrative Services provides day-to-day active management and control of the agency. 

Mission Focus - Treasury continues to strive to achieve its mission to ensure excellence in the management and administration of its diverse financial programs and services through innovative fiscal management and fiduciary oversight, and to instill these values in its leadership, financial professionals, and staff.

Data Governance Standards - Treasury is partnering with the Office of Data Governance and Analytics (ODGA) to develop, implement, and maintain a comprehensive data governance initiative. This initiative will enhance the agency’s capability to leverage data as a strategic asset aligning with its mission to be trusted stewards of Virginia’s financial resources. Treasury will establish robust policies, standards, and best practices, and will employ available technology solutions to ensure effective data governance.

Treasury continues to aggressively pursue innovation and efficiency through the work of our Information Technology team.  Some highlights of Treasury's current and future products are summarized below: 

Data Analytics - Treasury will continue to develop data analytics utilizing available tools that allow management to integrate, gather, present, and analyze internal and external data from disparate sources.  Treasury management will utilize data analytics applications to make data more readily available and timely providing insight into Treasury’s performance related to daily operations and long-term goals. Real-time data will allow management to monitor both agency and division-level performance and facilitate fact-based decision-making. 

Legacy Internal Applications - Treasury Information Technology Division (IT) continues to maintain two legacy applications that support critical back-office functions. The Central Access Database application is an internally developed application to support Identity and Access Management. This system is several years old and requires inefficient manual supporting processes. The Agency is interested in pursuing possible enterprise offerings from Virginia Information Technologies Agency (VITA) in this space as Role and Identity Management is paramount to protecting Commonwealth data. In addition, Treasury utilizes an internal Knowledge Base and Project Library called "Workspaces". This tool was also internally developed over 10 years ago using older technology. The current system has reached performance limits and lacks sufficient reporting and collaboration functionality. The agency would like to pursue alternative options, possibly utilizing the Microsoft Power Platform in Microsoft Teams etc.

Unclaimed Property Automation – IT continues to support the Division of Unclaimed Property (UCP) during these planning cycles to include added compliance and automation around claims processing.  IT and UCP successfully implemented an automated telephone interface allowing clients to follow a self-service status of their claim. In addition, IT has implemented enhancements around the UCP Audit and Compliance needs. While the UCP system utilizes a full SaaS solution, IT continues to support their technology and integration needs.

Risk Management Information Systems Replacement – Treasury's Division of Risk Management (DRM) completed the replacement of its legacy Risk Management Information System which combines three separate applications, VACCS, VAPS and CIVITAS, into one application. VAPS and CIVITAS went live in summer 2024.  The Car Care System, VACCS, is slated to go live in October of 2024 and will include an enhanced premium invoicing process. The previous systems, built on outdated and vulnerable ASP.NET technology, are being replaced with a unified SaaS solution. The transition will enhance system maintainability, accessibility, and operational efficiency by consolidating member data, accounts, and administration into a single platform. The new system offers improved reporting and analytics, significantly boosting DRM's ability to deliver high-quality, timely reports for the actuary and helping Treasury meet state budget deadlines. 

Funds Management System (FMS) Upgrade – IT rolled out several maintenance releases for Cash Management of Investments Division’s (CMI) FMS application, aligning with the strategic goal of achieving excellence in operational results, resiliency, and stability. One key initiative, the Trade Ticket Automation, will enable FMS to automatically generate and send trade files to its custodian. In addition, CMI and IT are in the design phase of a significant Wire Automation project. This project seeks to eliminate the need for CMI staff to manually enter data into bank portals and document transactions in the FMS system, instead allowing the FMS system to handle wire transactions directly. In support our continuity operations, IT also plans to enhance FMS with additional features to ensure that CMI staff always have access to up-to-date investment and cash position data, regardless of the IT system's status.

Bond Requisition Process Systemization – Operations continues an effort to replace the manual, legacy, spreadsheet driven processes that currently support the bond requisitions process. This project will automate processes today that are limited to the knowledge of a small number of existing staff.  With the advent of imminent retirements, an automated system will greatly aid in succession planning. In addition, this system will remove several manual processes and enable a new customer “portal” for those needing to do business with Treasury. Three of the five bond programs are complete.

Cloud Computing/Failover and Resiliency - Treasury has an open goal to move its virtual server environment to Azure Web Cloud Services as this has the potential for cost savings, while decreasing our dependency on physical infrastructure located in the Commonwealth Data Center.  

Security for Public Deposits Act (SPDA) - In support of greater transparency, Treasury has incorporated required enhancements to the SPDA program, adding additional levels of oversight regarding public depositors. The on-line system is designed to automate the monthly reporting of public deposits.  The system requires upgrades which enhance customer support and meet the current business needs of the agency. The improvements will also provide operational efficiencies for Treasury staff.

Digital Equity and Inclusion - Treasury acknowledges the importance of Digital Equity and Inclusion and is exploring options to promote digital equity on Treasury public facing websites. This should include expanded accessibility, usability and outreach, ensuring our services align with Executive Order One and the One Virginia initiative, while fulfilling our legislative responsibilities as custodians of Commonwealth finances. IT, with support of the VITA Web Modernization project team, continue to pursue improvements to our public facing web sites for accessibility and consistency for our constituents.

Backoffice Automation - In line with Treasury's strategic goal to "Increase effectiveness through technology" and to leverage the new "Low Code" Microsoft Power Platform available to VITA customers, IT has launched several initiatives to enhance automation and workplace efficiency. Recently, IT introduced Robotic Process Automation to streamline the access request process, yielding positive results. Building on this success, IT is collaborating with Operations to automate the currently manual, and in some cases paper-based, process of entering bank statement data for reconciliation.

Additionally, IT has developed "Low Code" applications to manage our Invoice and Contract processes more effectively. Our ongoing objective is to automate all Treasury forms, introduce advanced workflows, and eliminate manual, inconsistent, and time-consuming procedures.  This supports the strategic objective to “Enhance the management of agency documents throughout their lifecycle”.

Throughout this performance cycle, IT will actively seek out new use cases within the Agency to drive further efficiencies and time savings.

Debt Management and IT - For Treasury's Debt Management Division, the current IT investments continue to meet the current agency business needs. Planning discussions, however, should occur to determine if greater resources will be needed in the future to meet any potential opportunities related to bond system data managed by Debt and Operations, that could have operational benefits (reduction to duplication and improvement to data accuracy through the reduction of human error). In addition, with the Financial Data Transparency Act (federal law), there may be greater burdens on Operations for Authority financials (and Department of Accounts and possibly Operations for the Commonwealth's financials as a whole), that could require future software acquisition, consultants, and greater staffing related to a potential XBRL requirement. Given that FDTA is new, the specific requirements and impacts are currently unknown, but planning needs to begin now for any potential impacts. No specific funding has been appropriated for this effort.

COTS to SaaS – Bank Reconciliation - While the current off the shelf application, Frontier, that supports the Bank Recon process currently meets agency needs, the system is costly and requires costly upgrades every 2 or 3 years. In line with the objective to increase effectiveness through technology by exploring new platforms to gain efficiencies, IT will need to look at SaaS options in this space to limit administrative overhead.

Treasury Partner Portal - Within Q2 of FY 2025, Treasury will implement an external Portal or Gateway to facilitate our partner higher education, banking and locality users to securely authenticate and request/perform transactions such as Local Government Investment Pool (LGIP) wire requests, submission of requisitions against authorized bonds and certify collateral for our public banking institutions under the SPDA system.  This portal will facilitate one stop authentication and access to authorized systems.

Secretary of Finance – Cyber WorkGroup – The Secretary of Finance, with support from VITA, has an initiative underway during this planning cycle to strengthen the cyber controls and share common practices that are applicable specifically to the Finance or “Money” agencies such as Treasury, Taxation and Department of Accounts.  The Work Group is chartered to define core competencies among the finance agencies and develop an action plan and resource requirements needed for this endeavor.  Agencies as well as VITA will be submitting any needed decision packages as required.

In order to provide the high level of performance and service required by a critical, high-level finance agency, Treasury employs financial professionals who are experts in their fields. Treasury faces several challenges in maintaining a top-level staff.  First, Treasury has an aging workforce. Currently, 28% of Treasury employees can retire within the next few years.  Some of these employees hold senior level positions across the agency. Second, Treasury employees are recruitment targets by banking, finance, investment, and insurance firms, as well as universities and other finance offices. In the past year, Treasury lost approximately 16% of its workforce. The current unemployment rate in Virginia is 2.8%. Treasury can expect to continue to experience turnover as employers seek knowledgeable, highly skilled, well trained, candidates to fill their positions. Third, Treasury salaries are below market as compared with the private sector, Richmond area local government entities, and even other state agencies.

In order to maintain a high level of service in light of budget constraints, Treasury will revise its training policy, using an extensive needs analysis to develop a training plan.  The plan will develop specific job skills for existing staff that might be needed to step in and fill the void created by retirements, resignations and emergency situations. In addition, cross training will be reviewed and augmented to address potential Continuity of Operations contingencies.  Treasury will continue to adapt recruitment strategies to ensure the best candidates.  Treasury will review its salary administration plan to allow a flexible compensation strategy to attract and retain a diverse workforce.  Additionally, Treasury will review its recognition policy to reward top performing employees for their contributions to the agency.

The Department of the Treasury leases space on three floors and storage space in the basement in the James Monroe Building in support of its mission.  The Monroe Building, however, is currently slated for demolition.  Treasury awaits the results of a study commissioned by the General Assembly to determine possible new office facilities for Treasury employees.

Federal Government Uncertainty - Due to Virginia's proximity and economic dependence on federal employment, actions (or inactions) such as sequestration, furloughs, and budget shutdowns could have a detrimental impact on Virginia’s economy.  In addition, regulatory, congressional, and other actions by the federal government could negatively impact Commonwealth bond ratings.

Federal Tax Code Changes - As the Tax Cuts and Jobs Act provisions near a sunset in 2025, it is thought that Congress will look to make changes to the tax code.   As items are evaluated, there could be certain benefits to governments if certain provisions such as the ability to advance refund tax-exempt bonds on a tax-exempt basis were reinstated.  However, of greater concern is the risk of governments losing their ability to issue tax-exempt and private activity bonds should the funds lost to these exemptions be seen as needed to assist with other budgetary priorities.  The loss of tax-exemption would cause borrowing rates to increase and would result in an increase to future debt service costs and it could result in a reluctance by some governmental entities to pursue capital projects on the same pace as would have otherwise been sustained.  Similarly, the Commonwealth is monitoring for any further changes to provisions concerning Build America Bonds (BABs), which was a program where issuers sold taxable bonds with the understanding a subsidy would be provided by the federal government.  Through federal sequestration, the subsidy has been reduced and at times has been completely questioned.  As a result, the Commonwealth has had to conservatively budget for an entire cut of the subsidy to simply be prepared for any failures of the federal government to make good on its program.  The Commonwealth will continue to look for any opportunities to refund its BABs and will be monitoring for any federal tax code changes that impact bond issuers.   

Literary Fund Assets Availability - Constitutionally, the Literary Fund is required to maintain an $80 million asset balance.  Available cash balances beyond that amount may be used for K-12 school purposes.  This has typically taken the form of loans to localities for school construction and payments for teacher retirement.  In recent years, the Literary Fund has not been making new loans.  The 2022-2024 Appropriation Act, however, authorized up to $200 million in school construction loans in each of the first and second years.  The Appropriation Act also made changes to the terms of Literary Fund loans to make them more attractive to localities.  While there has been a significant influx of cash from the Unclaimed Property program to the Literary Fund in recent years due to various one-time stock sales and similar activities, it is expected that this source of income to the Literary Fund will dwindle. Finally, increased outreach claim efforts are returning a higher percentage of unclaimed properties, leaving less available income to the Literary Fund, further exacerbating the declining asset balance situation.

VaRISK- Constitutional Officers plan; Jails - Over the past several years there have been concerted efforts by a few local private insurers to provide liability coverage to regional jails.  They have been successful in entering agreements with a handful of the lowest risk facilities. This has resulted in shrinking the pool of jail facilities participating in VaRISK and leaving higher risk facilities with more substantial loss histories in the Plan. This has contributed to increased costs for the remaining facilities.  The Division of Risk Management (DRM) has no ability to deny coverage for any state agency/constitutional officer/regional jail/local government. DRM is statutorily required to provide liability protection options no matter how high the risk or how negative the loss history.

Sovereign and Qualified Immunity - Treasury's Division of Risk Management administers several risk management plans and programs that protect Virginia's constitutional officers, including sheriffs and regional jail officers, and localities from financial loss.  The Commonwealth utilizes sovereign immunity and qualified immunity to reduce claim liability and costs.  Any legislative efforts to limit or eliminate these defenses would increase the cost of these programs significantly.

Concentration of Pending Retirements - While Treasury has been fortunate to have many long serving employees, one division within Treasury has several key positions with employees who have either recently retired or who are eligible for retirement.  This includes managers of trust accounting, check processing, and bank reconciliation. Treasury has struggled to attract adequate replacements in this area and will need to continue to focus on succession planning before a vast amount of institutional knowledge retires.

Treasury's base budget is funded 21% from general funds ($19.7 million) and 77% from non-general funds ($73.05 million). The non-general fund sources are: $ 9.7 million from the receipt of unclaimed property used to administer the Commonwealth's unclaimed property laws; $ 59.4million from insurance trust fund balances; $.2 million from charges to select agencies for check printing services; $.6 million from charges to debt issuing authorities and agencies for debt issuance and management services; $3 million for investment services provided to state and local governments; and $.79 million for fees charged financial institutions and insurance carriers.

Treasury receives revenues from various services provided to its customers and constituencies. These non-general fund sources are from the receipt of unclaimed property used to administer the Commonwealth’s unclaimed property laws; charges to state agencies and localities for insurance coverage; charges to select agencies for check printing services; charges to debt issuing authorities and agencies for debt issuance and management services; for investment services provided to state and local governments; and fees charged to financial institutions and insurance carriers. It is expected that non-general fund revenue will remain stable.

The following statistics provide a comprehensive snapshot of Treasury’s productivity during FY 2022:

None.

In FY 2024, Treasury managed investments totaling $45.2 billion in state and local government funds, issued or participated in financing over $1.6 billion in debt obligations (and nearly $2.1 billion if transportation items presented to the Treasury Board were included in the total), processed 1.8 million checks, collected $257 million in unclaimed property revenue, returned $89.3 million of unclaimed property to rightful owners, and transferred $200 million to the Literary Fund for public education purposes.   In addition, Treasury provided liability and property insurance for the Commonwealth, its agencies and institutions, and local officials and employees in over 500 political subdivisions and non-profit organizations.  Treasury also manages the Commonwealth’s banking through a statewide network of three concentration and twenty-four regional banks, accelerating the deposit and availability of state funds received from approximately 300+ regional depositing locations. 

Provided Financial Guidance to Policymakers – The Debt Management Division provided guidance to both the Governor’s Office and the Legislative Branch through either its development of required reports or its requested participation in various discussions. The Division analyzed an economic development project related to a combined NBA and NHL arena and considered the project’s impact on debt capacity. The Division has continued to strive for excellence in reporting and has further enhanced its Debt Capacity Advisory Committee Report. In addition to extensively evaluating the impact of higher interest rates on debt capacity and interest costs, the Division incorporated an additional revenue stress test based on historical Commonwealth data. These changes are in addition to greater reporting on the impact of transportation debt on the model and the overall debt level of the Commonwealth. As a result of these efforts, the most recent 2023 DCAC Report was deemed the most comprehensive report to date for providing decisionmakers with relevant data and insights.

Incorporated Innovation into the Financing Process - The Debt Management Division has until recently benefited from years of record low interest rates.  In an increased interest rate environment, however, the Debt Management Division has had to carefully plan and evaluate its debt issuances and any opportunities to refund bonds. In FY 2023, the Debt Management Division was presented an innovative method to achieve refunding savings through a tender of taxable bonds. The team pursued more information and then engaged an underwriting team to accomplish this effort. Through the process, it became apparent that this effort could be expanded to additional tax-exempt bonds. As a result of this innovative financing technique and the willingness to undertake the extensive effort, Treasury was able to achieve approximately $21 million of net present value savings across a tender transaction and a related taxable advance refunding.

Fiscal Year 2024 - Fiscal Year 2024 was a very consequential year for Treasury. Treasury earned more interest income from investment earnings than ever before. Debt management used a variety of techniques to issue low interest bonds and refund higher interest bonds. HR led a multiyear engagement effort within the agency that culminated in Treasury being named a ‘Top Workplace 2024’ by the Richmond Times Dispatch.  UCP processed a near record number of claims and is on pace to exceed that record in FY25. Risk Management transitioned to a new claims management system that will help our customers with increased transparency and help our agency identify data trends. Risk Management also led an aggressive and successful effort to reduce the states property insurance premiums.

This goal aligns to the Enterprise Strategic Priority of maintaining Virginia's AAA bond rating. In order for the Department of the Treasury to accomplish its mission of ensuring excellence in the management of its banking, investing, and financing services, the Department must to provide for the timely filing of primary and continuing disclosure documents in accordance with Municipal Securities Rulemaking Board and Securities and Exchange Commission rules and, in the case of continuing disclosure, in compliance with the undertakings provided by the issuer at the time of issuance of the bonds. This goal applies to bonds issued by entities staffed by the Department of the Treasury (i.e., Treasury Board (general obligation bonds), Virginia College Building Authority, Virginia Public Building Authority, Virginia College Building Authority and the Tobacco Settlement Financing Corporation).

In order to enable the department to support Virginia's long-term objectives of Best Managed State and maintain Virginia's high credit ratings, it must: provide for debt financing in the most efficient and cost-effective manner, while ensuring the most favorable borrowing rates available; ensure debt financings are provide in compliance with statutes and regulations to maintain the tax-exempt status of bonds; and provide advice, assistance, access to programs and accurate information to customers

• Provide for the timely, efficient and cost effective issuance and management of debt programs managed by the agency.

• Launch an investor website with information on Virginia issuers and bonds targeted directly to current and potential investors.

• Work with Treasury's various financial advisors to develop a strategy to inform and engage potential purchasers of Commonwealth bonds in the retail market.

• Use existing and developing data resources to improve operational efficiency, enhance investor and customer outreach and respond more quickly to emerging market trends.

• Improve, expand, monitor, and document post bond issuance disclosure concerning the Commonwealth and its issuing entities.

• Engage with bond rating agencies to maintain a positive dialog concerning the credit quality and security for Commonwealth's bonds to help maintain the Commonwealth's high debt ratings.

• Monitor the legislative and regulatory environment at the federal and state levels to stay up-to-date on requirements and needs of regulators, investors, customers and partners to provide services in the most efficient and effective manner.

This goal aligns to the Enterprise Strategic Priority of enhancing the productivity and efficiency of state government operations. This goal also aligns with the agency's mission of serving the Commonwealth by ensuring excellence in the management of its banking, investing, and financing services and the administration of unclaimed property and insurance programs.

In order to enhance the productivity and efficiency of the agencies resources it must provide a workforce development plan to aid in the training and education of agency staff.

• Ensure staff is aware of the various benefits, specifically the employee training program.

• Support alternate work schedules to allow employees to have flexible schedules to attend training or continue education.

• Educate managers on the importance of proactively coaching employees to develop talent within the agency.

This goal aligns to the Enterprise Strategic Priority of continuing to successfully manage the Commonwealth's long-term investments, assets, and liabilities. In order for the Department of the Treasury to accomplish its mission of ensuring excellence in the management of its banking, investing, and financing services, the Department must (1) provide for the effective management of state and local government funds to maximize investment earnings within levels of prudence established by statute and guidelines, (2) manage and administer a Local Government Investment Pool(LGIP) that provides value to local governments which choose to invest their funds in the LGIP, and (3) work with agencies and institutions, as well as financial institution partners, to implement an effective and efficient statewide banking network developed to provide state-of-the-art cash management services to ensure the highest quality services are available to our customers.

Work with agencies and institutions, as well as financial institution partners, to implement an effective and efficient statewide banking network, developed to provide state-of-the-art cash management services to ensure the highest quality services are available to customers.

• Review current banking contracts and requests for proposals to determine where greater efficiencies and cost savings can be negotiated.

• Develop a process to integrate critical banking and investment information on a real time basis in order to minimize errors, delays in reporting and repetitive reporting systems.

• Continue to maximize use of electronic receipts and disbursements and reduction in check payments.

In order to enable the department to achieve efficiency and effectiveness benefits to support Virginia's long-term objectives of Best Managed State, it must: provide for the effective management of state and local government funds to maximize investment earnings within levels of prudence established by statute and guidelines; and manage and administer a local Government Investment Pool that provides value to local government which choose to invest their funds in the Pool.

• Ensure, over a trailing five-year period, the yield on the state's general fund investment earnings in the Primary Liquidity Portfolio will exceed the identified benchmark.

• Review investment securities within statutory guidelines to determine where an increase in yields is possible within overall principles of liquidity and preservation of principle.

• Continue to maintain the S&P AAAm rating for the Local Government Investment Pool to ensure continued service to local governments.

This goal aligns to the Enterprise Strategic Priority of maintaining Virginia's AAA bond rating. In order for the Department of the Treasury to accomplish its mission of ensuring excellence in the management of its banking, investing, and financing services, the Department must (1) provide for debt financing in the most efficient and cost-effective manner, while ensuring the most favorable borrowing rates available, (2) ensure debt financings are provided in compliance with statutes and regulations to maintain the tax-exempt status of bonds, and (3) provide advice, assistance, access to programs and accurate information to customers.

• Maintain internal debt service schedule of payment due dates and date payments.

• Develop continuity strategies to ensure the timely payment of debt obligations under all contingencies.

Through focused enhancements to Treasury's website and better use of social media platforms, the public should have access to information to better understand Treasury's performance of its duties.

• Provide program metrics on the agency’s website and keep them up to date.

• Review and update the agency’s website content regularly.

This goal aligns to the Enterprise Strategic Priority of continuing to successfully manage the Commonwealth's long-term investments, assets, and liabilities. In order for the Department of the Treasury to accomplish its mission of ensuring excellence in the administration of insurance programs, the Department must provide for protection of the assets of the Commonwealth through (1) superior insurance and risk management services, (2) excellent claims and litigation management, (3) expert consultation services and loss prevention and control training (4) prudent and cost effective management of the State Insurance Reserve Trust Fund, and (5) outstanding customer service.

In order to enable the department to achieve efficiency and effectiveness benefits to support Virginia's long-term objectives of Best Managed State, ii must provide for the protection of the assets of the Commonwealth through: superior insurance and risk management services; excellent claims and litigation management; expert consultation services and loss prevention and control training; prudent and cost effective management of an actuarially sound State Insurance Reserve Trust Fund; and outstanding customer service.

• Maintain the State Insurance Reserve Trust Fund on an actuarially sound basis.

• Expand loss prevention and loss control training and consultation services by increasing the use of social media to reach an expanding customer base.

• Improve automobile claims handling effectiveness and reduce costs by bringing the process in-house to be handled by the department's staff.

• Upgrade current web applications to provide more functionality and security features and integrate with the risk management system to improve claim adjusting, records maintenance, financial reporting and more accurate billing.

In order to enable the department to achieve efficiency and effectiveness benefits to support the agency's mission as a steward of the Commonwealth's financial resources and the interests of its citizens, it must: administer an unclaimed property program in accordance with the Uniform Disposition of Unclaimed Property Act. The Act provides for the return of tangible and intangible personal property that has been deemed abandoned to the rightful owners; provide resourceful outreach efforts to enhance the location of owners; provide comprehensive claims verification and processing that returns property to the rightful owners in an expeditious manner; and provide strategic holder compliance and enforcement efforts to maximize the required reporting of unclaimed property. The Treasury must also effectively administer the Escheats Generally statute and a program for abandoned real property that returns abandoned parcels of land to an active tax earning status.

In order to enable the department to achieve efficiency and effectiveness benefits to support Virginia’s long-term objectives of Best Managed State, it must: administer an unclaimed property program in accordance with the Uniform Disposition of Unclaimed Property Act that provides for the return of unclaimed property to the rightful owners; provide resourceful outreach efforts to enhance the location of owners; provide comprehensive claims verification and processing that returns property to the rightful owners in an expeditious, economical manner; provide strategic holder compliance and enforcement efforts to maximize required reporting of unclaimed property. The Treasury must also effectively administer the Escheats Generally statute and a program for abandoned real property that returns abandoned parcels of land to an active tax earning status.

• Expand and fine-tune owner outreach, media and social media communications, community relations, marketing and public relations initiatives in an effort to maximize the return of unclaimed property to rightful owners.

• Overhaul the Unclaimed Property webpage and the Click and Claim on-line searchable database found at VAMoneySearch.org to provide more information for holders, citizens and claimants about the unclaimed property program and make reporting and claiming property more user-friendly.

• Assess the Revised Uniform Unclaimed Property Act of 2016 for possible adoption.

• Work to reduce the number of unclaimed property exemptions that exist in the current Act that have limited consumer protection for property.

• Work to better educate localities and escheators about escheat laws and responsibilities.

This goal aligns to the Enterprise Strategic Priority of maintaining Virginia's AAA bond rating. In order for the Department of the Treasury to accomplish its mission of ensuring excellence in the management of its banking, investing, and financing services, the Department must provide for (1) the accurate accounting for and preparation of financial statements for boards and authorities staffed by Treasury, (2) the accurate and timely accounting for state investments and debt structures, (3) the proper administration of and accounting for Treasury's budget, (4) the accurate and timely disbursement of state funds in accordance with the Prompt Payment Act, (5) the accurate recording of state receipts and reconciliation of bank accounts (6) the proper administration of the Security for Public Deposits Act to ensure compliance by public depositories and the safety of public deposits, and (7) the accurate accounting and safekeeping of securities pledged by insurance companies transacting business in the Commonwealth in compliance with the Insurance Collateral Program.

In order to enable the department to achieve efficiency and effectiveness benefits to support Virginia’s long-term objectives of Best Managed State, it must ensure: the accuracy of accounting for and preparation of financial statements and budget; the accurate and timely accounting for state investments and debt structures; the accurate and timely disbursement of state funds; the accurate recording of state receipts and reconciliation of bank accounts; the proper administration of the Security for Public Deposits Act to ensure compliance and safety of public deposits; and the accurate accounting and safekeeping of securities pledged in the Insurance Collateral Program.

• Continue to develop agency data analytics capabilities, including the dashboard management information system, to provide agency management information needed to review the status of major programs and to aid in planning and decision-making.

• Continue standardization of check-write files received from check-writing agencies.

• Keep abreast of the Department of Accounts new general ledger system, Cardinal, to determine how the new accounting system can best be used to Treasury’s advantage.

This service area provides debt issuing and advisory services for the Commonwealth, certain state authorities, agencies and institutions.

As staff to the Treasury Board, Virginia Public School Authority (VPSA), Virginia College Building Authority (VCBA), Virginia Public Building Authority (VPBA) and the Tobacco Settlement Financing Corporation, the Debt Management Division (the Division) plans and coordinates the issuance of debt obligations for financing the capital needs of agencies, institutions of higher education, and local school division throughout the Commonwealth. The Division also administers outstanding debt obligations and monitors for opportunities to refinance the obligations for savings, and ensures compliance with applicable federal regulations (e.g., arbitrage restrictions under Internal Revenue Code; continuing disclosure requirements under Securities Exchange Commission Rule 15c2-12). The Division also administers two leasing programs for use by state agencies to finance equipment needs and energy efficiency projects, assists Virginia Department of Transportation staff with financings executed by the Commonwealth Transportation Board, analyzes and coordinates the approval of leases and other alternative financing arrangements and reviews private activity bond requests requiring the Governor's signature.

In the area of advisory services, the Division considers and advises the Administration, General Assembly staff, agencies and institutions on financing alternatives proposed or under consideration. This may include traditional options (e.g., bonded debt through established state issuing entities) or leases, public private partnerships, privatization etc. As staff to the Debt Capacity Advisory Committee (DCAC), the Division evaluates the Commonwealth's tax-supported debt commitments and develops capacity and other recommendations for consideration by the Committee for presentation to the Governor and General Assembly.

The Division administers a biennial Treasury Board debt service budget of more than $2 billion.

This service area directly aligns with the Department of the Treasury's mission of ensuring excellence in the management of its banking, investing, and financing services.

The budget for this service area is comprised of personnel costs funded through general fund and non-general fund appropriations. Non-general fund support is from Virginia Department of Transportation and Virginia Public School Authority. Fees charged to participants in NGF programs are deposited to the GF and serve to offset service area costs. Those fees are not reflected in the numbers below.

The Division of Risk Management (DRM) manages several liability programs that protect the Commonwealth’s agencies, employees, and its assets against claims and lawsuits. DRM handles liability situations involving State Agencies, Auto, Cyber, Constitutional Officers and Regional Jails, Local Government, Property and Performance Bond. Pursuant to state law, the DRM administers various risk management plans and programs that protect Virginia's state government, political subdivisions, non-profit organizations, and certain individuals serving in the public interest from financial loss. Depending on the entity or individual, this protection may include tort liability, public officials’ liability, law enforcement liability, professional liability (including medical or legal malpractice), automobile liability, automobile physical damage, property, boiler and machinery, watercraft, aviation, and employee malfeasance (surety bonding). The risk management service mission is to provide protection of the Commonwealth's assets, using a high level of expertise resulting in the most cost-effective delivery of insurance coverage, claim and litigation management, risk services and loss control activities.

Highlights include:

Liability and property insurance for the Commonwealth, its agencies and institutions, and employees, and over 540 political subdivisions and non-profit organizations. This includes nearly 14,000 state buildings and their contents with a value in excess of $63 billion and, including more than $4.9 billion in fine arts.

This service area directly aligns with the Department of the Treasury's mission of ensuring excellence in the administration of unclaimed property and insurance programs.

The budget for this service area is funded by nongeneral funds from premiums received from participants in the State Insurance Plans.

This service area provides for the (1) management and investment of state funds, (2) administration and management of the Local Government Investment Pool (LGIP), a AAAm rated fund available to local governments and other public entities of the Commonwealth for the investment of public funds, (3) administration and management of the Commonwealth's AAAF/S1 rated Local Government Investment Pool Extended Maturity Portfolio (LGIP EM), (4) administration of the State Non-Arbitrage Program (SNAP) to ensure the investment of bond proceeds are in compliance with federal arbitrage rebate regulations, (5) management of the Commonwealth's statewide banking network and cash concentration system, and (6) development of banking and cash management services for state agencies and institutions.

Highlights include:

The Cash Management and Investment Division (CMI) administered $44.8 billion in managed investment portfolios, comprised of $30.5 billion in the General Account portfolio, $13.8 billion in the LGIP portfolio, $168 million in LGIP EM portfolio, $42.3 million in special portfolios, and $42.9 million in outside trustee portfolios for FY 2025, and $318.3 million in funds managed for the Tobacco Indemnification and Community Revitalization (TICR) Endowments.

During the past few years CMI made significant strides automating and improving integration of its investment, banking, and related support activity workflow Accomplishments include elimination of task redundancy and human error common in legacy keystroke environments, reduction or elimination of reliance on paper, enablement of shared screen and real time information use by multiple teams, and reduction in uncertainty of inflow and outflow of funds.

CMI manages an extensive, efficient statewide banking network of 24 regional banks and 4 concentration banks that accelerates the deposit and availability of state funds received from approximately 285 regional depositing locations throughout the state. Treasury's IT Division provided support essential to automating receipt and upload of daily files from the Commonwealth's four concentration banks into CMl's Financial Management System.

This service area directly aligns with the Department of the Treasury's mission of ensuring excellence in the management of its banking, investing, and financing services.

The budget for this service area is funded with general and non-general funds.

This service area administers the Virginia Uniform Disposition of Unclaimed Property Act (The Act) and the Escheats Generally Statute. The Act protects the property rights of owners of tangible and intangible personal property by requiring holders to report the property to the Treasury. The Escheats Generally Statute assists localities by returning abandoned real estate back to an active tax-earning status. This service area monitors escheat activities with local government officials and escheators and handles numerous inquiries and questions related to the process.

Some highlights include:

Treasury, through the Unclaimed Property Division (UCP) collected $305 million in unclaimed property revenue from holders and stock sales, returned to owners $118 million, and transferred $150 million to the Literary Fund for public education purposes in FY 2025.

For FY 2025, Division's PR and Marketing team implemented began to phase out call center events and transition back to in-person events for which include local treasurers, financial institutions, other state organizations, senior organizations, local sheriff and police events, homeless events, veterans’ events, etc. to assist the public have their funds reunited. In all, 42 total outreach events executed, the team also concentrated on contacting high dollar claimants with a one-shot/pro-active initiative, contacted other divisions and organizations to initiate partnerships promoting the UCP program. Through these efforts, UCP's PR and Marketing team was able to locate $59 million for citizens.

Moving forward the PR and Marketing team will continue to concentrate on the high dollar claimants and has hired two new employees to focus on returning funds directly with localities, governmental organizations, non-profits, places of worship, etc. all of which allows citizens and organizations the opportunity to confirm our legitimacy and contact the marketing staff directly.

In August 2022, The Division of Unclaimed Property implemented an unclaimed property management system which is currently utilized by over 35 states nationwide which has streamlined the reporting of unclaimed property but, more importantly, made claiming property for citizens significantly easier by establishing a 100% availability to claim online through a revitalized public facing website.  By implementing a true ‘fast track’ claims process where the claimant is automatically verified with their property when submitting a claim, the Division was able to reunite over $7 million for over 38k claims without having to submit any documentation whatsoever.  Additionally, through the newly implemented CashNow initiative, the Division was has automatically mailed over 38k checks for over $9 million to proactively return lost funds to citizens.

In FY 2025, UCP collected 14,659 holder reports containing 2,116,468 owners (an average of 144.38 owners per report).

This service area directly aligns with the Department of the Treasury's mission of ensuring excellence in the administration of unclaimed property and insurance programs.

The budget for this service area is funded from nongeneral funds. The service area receives revenue primarily from holders of unclaimed property that is held by the State Treasurer in a custodial capacity. Operating expenses are appropriated; a reserve is maintained for payments for revenue refunds to owners of unclaimed property when claims are filed; and each year the remainder is transferred to the Literary Fund.

This service area provides statewide trust accounting and financial reporting services to Commonwealth agencies, institutions, and several of its debt-issuing authorities. Some highlights include:

At June 30, 2025, approximately $9.4 billion in public deposits, net of federal deposit insurance, was secured by securities pledged as collateral to the Treasury Board by the banks and savings institutions holding Virginia public deposits.

At June 30, 2025, over $409 million in securities pledged by insurance companies conducting business in the Commonwealth were held as collateral by the Treasury for the benefit of Virginia insurance policyholders.

This service area directly aligns with the Department of the Treasury’s mission to be trusted stewards of Virginia’s financial resources through prudent management of public funds, unclaimed property, and risks.

The budget for this service area is primarily to fund personal service costs and bank safekeeping fees. The primary revenue streams that fund this service area are general fund appropriations and special revenue funds from annual administrative fees charged insurance companies that operate in Virginia and financial institutions that hold public funds under the Security for Public Deposits Act.

This service area is responsible for check processing and distribution for Commonwealth checks and reconciles Commonwealth bank accounts. Some Highlights include:

In FY 2025, Treasury and our vendor printed and distributed approximately 2 million checks for the Commonwealth, and Bank Reconciliation reconciled more than 67 bank accounts on a monthly basis for the Commonwealth.

This service area directly aligns with the Department of the Treasury's mission of ensuring excellence in the management of its banking, investing, and financing services and the administration of unclaimed property and insurance programs.

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The budget for this service area is used primarily to fund check production costs for our new vendor DataMatx, Inc. This service area is funded by general fund appropriations and special revenue funds from fees collected from the Department of Social Services, the Virginia Employment Commission, and the Virginia Retirement System for the processing of their checks. Treasury prints and mails approximately 2 million general warrant, payroll, social services, employment commission, tax refund, and retirement checks annually.

As a central state agency, the Department of the Treasury provides statewide services to citizens, agencies, and institutions of the Commonwealth. The Administrative Services service area of Treasury provides the day-to-day management and control of the agency and its seven service areas. This service area includes the State Treasurer, Deputy State Treasurer and the functional areas of Procurement, Policy, Legislative Review Facilities Maintenance, Human Resources, Information Systems, Internal Audit, Internal Controls, and Strategic Planning.

This service area directly aligns with the Department of the Treasury's mission of serving the Commonwealth by ensuring excellence in the management of its banking, investing, and financing services and the administration of unclaimed property and insurance programs.

The budget for this service area is funded with general and nongeneral funds. Changes may be required by future actions of the General Assembly as budgets are developed for this biennium.