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DIVISION OF TREASURY MEMORANDUM
NO. 09-PA-01
October 5, 2009
Florida Public Deposits Program
Public Deaositor Annual Resort to the Chief Financial Officer (Form DFS-J1-1009)
The purpose of this memorandum is to provide public depositors with instructions for filing the Public
Depositor Annual Report to the Chief Financial Officer (annual report). Note: The annual report should not be
completed by the qualified public deoositorv (QPD) that holds the funds.
Section 280.17, Florida Statutes (F.S.), specifies the requirements for public depositors to receive protection
from loss for a public deposit account. Each public depositor should be familiar with the requirements of this
section of Florida law and we have attached it for your review.
Important Notes:
• The annual report must be submitted by November 30, 2009. Processing can be expedited by
faxing your completed report to (850) 488-0216 or emailing a PDF copy of the report to:
___- ~ _ 'rr mfr (~ (~'~; ~~f You may retain the original report for your records.
• Do not submit any of your Public Deposit Identification and Acknowledgment forms with your annual
report. Those forms are to be retained by you and only submitted to this office in the event of a QPD
failure for which you suffer a loss of public deposits. Section 280.17(3)(a), F.S. details the
circumstances in which a new form must be completed.
• Please be certain to complete all of the authorized signer's contact information on the annual
report, including their a-mail address, so that our records will have the most current
information.
• Please make a copy of your completed annual report for future reference.
Additional copies of forms and attachments associated with the Public Depositor Annual Report to the Chief
Financial Officer can be provided by mail, facsimile, or a-mail.
Please direct questions to:
Division of Treasury
Public Deposits Program Administration
200 East Gaines Street
Tallahassee, Florida 32399-0345
Telephone: (850) 413-3164
Fax: (850) 488-0216
Attachments: Public Depositor Annual Report to the Chief Financial Officer
List of Qualified Public Depositories
Section 280.17, F.S.
FLORIDA STATUTES
SECTION 280.17
Requirements for public depositors; notice to public depositors and
governmental units; loss of protection.-In addition to any other requirement
specified in this chapter, public depositors shall comply with the following:
(1) (a) Each official custodian of moneys that meet the definition of a public deposit under
s.280.02 shall ensure such moneys are placed in a qualified public depository unless the
moneys are exempt under the laws of this state.
(b) Each depositor, asserting that moneys meet the definition of a public deposit provided in
s. 280.02 and are not exempt under the laws of this state, is responsible for any research or
defense required to support such assertion.
(2) Beginning July 1, 1998, each public depositor shall take the following actions for each public
deposit account:
(a) Ensure that the name of the public depositor is on the account or certificate or other form
provided to the public depositor by the qualified public depository in a manner sufficient to
identify that the account is a Florida public deposit.
(b) Execute a form prescribed by the Chief Financial Officer for identification of each public
deposit account and obtain acknowledgment of receipt on the form from the qualified public
depository at the time of opening the account. Such public deposit identification and
acknowledgment form shall be replaced with a current form as required in subsection (3). A
public deposit account existing before July 1, 1998, must have a form completed before
September 30, 1998.
(c) Maintain the current public deposit identification and acknowledgment form as a valuable
record. Such form is mandatory for filing a claim with the Chief Financial Officer upon
default or insolvency of a qualified public depository.
(3) Each public depositor shall review the Chief Financial Officer's published list of qualified
public depositories and ascertain the status of depositories used. A public depositor shall, for
status changes of depositories:
(a) Execute a replacement public deposit identification and acknowledgment form, as
described in subsection (2), for each public deposit account when there is a merger,
acquisition, name change, or other event which changes the account name, account
number, or name of the qualified public depository.
(b) Move and close public deposit accounts when an institution is not included in the
authorized list of qualified public depositories or is shown as withdrawing.
(4) Whenever public deposits are in a qualified public depository that has been declared to be in
default or insolvent, each public depositor shall:
(a) Notify the Chief Financial Officer immediately by telecommunication after receiving
notice of the default or insolvency from the receiver of the depository with subsequent
written confirmation and a copy of the notice.
Page 1 of 3
(b) Submit to the Chief Financial Officer for each public deposit, within 30 days after the
date of official notification from the Chief Financial Officer, the following:
1. A claim form and agreement, as prescribed by the Chief Financial Officer,
executed under oath, accompanied by proof of authority to execute the form on
behalf of the public depositor.
2. A completed public deposit identification and acknowledgment form, as
described in subsection (2).
3. Evidence of the insurance afforded the deposit pursuant to the Federal Deposit
Insurance Act.
(5) Each public depositor shall confirm annually that public deposit information as of the close of
business on September 30 has been provided by each qualified public depository and is in
agreement with public depositor records. Such confirmation shall include the federal employer
identification number of the qualified public depository, the name on the deposit account record,
the federal employer identification number on the deposit account record, and the account
number, account type, and actual account balance on deposit. Public depositors shall request
such confirmation information from qualified public depositories on or before the fifth calendar
day of October and shall allow until October 31 to receive such information. Any discrepancy
found in the confirmation process shall be reconciled before November 30.
(6) Each public depositor shall submit, not later than November 30, an annual report to the
Chief Financial Officer which shall include:
(a) The official name, mailing address, and federal employer identification number of the
public depositor.
(b) Verification that confirmation of public deposit information as of September 30, as
described in subsection (5), has been completed.
(c) Public deposit information in a report format prescribed by the Chief Financial Officer.
The manner of required filing may be as a signed writing or electronic data transmission, at
the discretion of the Chief Financial Officer.
(d) Confirmation that a current public deposit identification and acknowledgment form, as
described in subsection (2), has been completed for each public deposit account and is in
the possession of the public depositor.
(7) Notices relating to the public deposits program shall be mailed to public depositors and
governmental units from a list developed annually from:
(a) Public depositors that filed an annual report under subsection (6).
(b) Governmental units existing on September 30 that had no public deposits but filed an
annual report stating "no public deposits".
(c) Governmental units established during the year that filed an annual report as a new
governmental unit or otherwise furnished in writing to the Chief Financial Officer its official
name, address, and federal employer identification number.
(8) If a public depositor does not comply with this section on each public deposit account, the
protection from loss provided in s. 280.18 is not effective as to that public deposit account.
Page 2 of 3
HANSON, PERRY 8~L JENSEN, P.A.
400 EXECUTIVE CENTER DRNE, SUITE 207 -WEST PALM BEACH, FLORIDA 33401-2922
JILL HANSON*
mjhanson ~ hpjlaw.com
ANN H. PERRY
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BONNI SPATARA JENSEN
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•A150 A~Mlrrso IN N.Y.
MEMORANDUM
TO: Board of Trustees
Tequesta General Employees Pension Plan
FROM: Bonni S. Jensen
Hanson, Perry & Jensen, P.A.
DATE: October 2, 2008
SUBJECT: Florida Qualified Public Depository ("QPD")
TELEPHONE (561)686.6550
FACSIMILE (561) 686-2802
In these turbulent times, we want to ensure that the necessary steps are taken to
protect the assets of your pension fund. Under Florida law, your bank must be a Qualified
Public Depository ("QPD") which meets the requirements of §280, Florida Statutes.
Section 280.17 details the specifiic responsibilities of a public depositor (in your
case, the pension fund). If these statutory responsibilities are met, then the deposits
placed in any QPD are protected from loss, without limit. The responsibilities cited are:
1. Use a QPD for any funds placed on deposit. this includes, but is not limited
to, checking, savings, money market deposit accounts as well as certificates
of deposit.
2. For each deposit account established at a QPD, complete and retain as a
record the Public Deposit Identification and Acknowledgment Form. (Copy
Attached)
3. File the Public Depository Annual Report of the Chief Financial Officer each
year. (Copy Attached)
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Florida QPD
Memo to Trustees
October 2, 2008
Page 2 of 2
According to a letter dated January 14, 2008 (attached) published by the State
Bureau of Collateral Management ("BCM"), protection of Florida's public requires onlythat
the public depositor meet the statutory responsibilities and is not based on the amount or
type of collateral pledged to the State by the QPD. If a QPD fails and then is liquidated,
any public depositor that has met its statutory responsibilities would be protected from loss
in the following manner:
The applicable amount of deposit insurance would be paid by the FDIC.
If a public depositor suffered a loss in excess of the FDIC limits, then the
State BCM would liquidate the collateral pledged by the failed QPD.
If the liquidation of the failed QPD's collateral was not sufficient to pay all
public depositor claims, then all QPD's participating in the public deposits
program would be assessed an amount of money to cover the loss.
BSJ/ka
Attachments
E-copy: Administrator
To whom it may concern,
The Bureau of Collateral Management (BCM) has received inquiries from several Florida governmental units
about the protection of their funds under the state's public deposits program. We want to provide information to
all interested parties about the program and how Florida public deposits are protected from loss. Please review
the following information and then feel free to contact ow office if you have questions or need any clarification.
Chapter 280, Florida Statutes (F.S.) governs Florida public deposits. Section 280.17, F.S. details the specific
responsibilities of a public depositor. Jf these statutory responsibilities are met then the deposits placed in any
qualified public depository (QPD) are protected from loss, without limit. These responsibilities are noted below.
Use a QPD for any funds placed on deposit. This would include, but not be limited to, checking,
savings, and money market deposit accounts as well as certificates of deposit. .
For each deposit account established at a QPD, complete and retain as a record the Public Deposit'
Identification and Aclmowledgement form.
File the Public Depository Annual Report to the Chief Financial Officer each year.
BCM wants Florida's public depositors to understand that the protection of their deposits at QPDs is predicated
on meeting their statutory responsibilities and is not based on either the amount or type of collateral pledged to
ow office by QPDs participating in the public deposits program. Should a QPD fail and be subject to ~ -
liquidation, any public depositor that has met its statutory responsibilities would be protected from loss in the
following manner.
The applicable amount of deposit insurance would be paid by the FDIC.
If a public depositoz suffered a loss due to uninswed public deposits, ow office would then liquidate the
collateral pledged to ow office by the failed QPD in order to provide funds for the payment of such
losses. BCM has a perfected security interest in a QPD's collateral via the Collateral Control Agreement
that each QPD's board of directors has adopted as a condition of joining the program.
If the liquidation of the failed QPD's collateral was not sufficient to pay all public depositor claims, then
all QPDs participating in the public deposits program would be assessed an amount of money,
proportional to the amount of public deposits they have on deposit, in order to cover any remaining loss
to public depositors. Ow authority in this area derives from the Contingent Liability Agreement that
each QPD's board of directors has adopted as a condition of j oining the program. Each QPD is
potentially liable for any losses to public depositors that may occw as the result of another QPD's
failwe.
Section 280.13, F.S. establishes the type of securities that are eligible to be pledged to the BCM. As previously
mentioned, these assets are a part of the overall secwity for the public deposits program.
FLORIDA DEPARTMENT OF FINANCIAL SERVICES
Kenneth J. Lee • Financial Analyst Supervisor
Division of Treasury • Bureau of Collateral Management
200 E. Gaines St. • Tallahassee, FL 32399-0345 • Tel. 850-413-3383 • Fax 850-488-0216 • SC 293-3383
Email • Kenneth.LeeQfldfs.com
Affirmative Action • Equal Opportunity Employer
Page 2
January 14, 2008
Additionally, each QPD has a vested interest in BCM administering the public deposits program as effectively as
possible. BCM does so through the assignment of required collateral pledge levels, the required and regular
reporting of public deposits, and of course the required pledge or deposit of eligible collateral. BCM has the
authority to limit a QPD's permitted public deposits, to increase collateral pledge levels, to limit the type of
collateral BCM will accept, and to request a QPD's withdrawal from the program if necessary. We make such
decisions each quarter of the year based on independent bank rating services, on the financial analysis we
conduct on a QPD's financial statements, on information gathered from state and federal banking regulators, and
on such other inforn~ation that might be available to us.
We hope that this information has been helpful to understanding the protection of public deposits in Florida. If
you have any questions, please contaot Kenny I:ee at (850) 413-33 83 or a-mail Kenny at Kenneth.leela~fldfs_corn
and he'll be happy to answer any of your questions. 1