Since 1999, Nottingham has been providing a flexible, customized accounting system to a large state treasury. The Treasurer of this jurisdiction worked with their legislature to modernize the investment policies of state government and government-affiliated entities. Moving quickly to outsource investment management of significant blocks assets, investments ranged from retirement plan assets to overnight cash for over 140 state agencies. With access to the best investment expertise available, the goal was set to offer the same investment expertise to smaller blocks of assets within all other state-governed or state-affiliated entities.
The best mechanism for offering these investment options was to pool all underlying accounts together, creating, in essence, “mutual fund” type pools, providing efficiency for the advisors and maximum leverage when negotiating fees with vendors relative to the investment and cash-management process. Pooling is ideal for these economies of scale. The 140 state agencies and several hundred affiliated entities, however, feared “loss of control.” The chief financial officer of each underlying entity remains responsible for the management and outcome of those assets, even though the actual investment management is delegated to the Treasurer’s office.
Nottingham developed a thorough, customized investment accounting solution that adapted to the specific needs of the Treasury. Some of the largest investment custodians in the United States are domiciled in this large eastern seaboard state. Yet no institution was able to provide the complete and flexible accounting solution, that integrates with appropriations codes and existing system data, like the system built by Nottingham.
For over a decade, Nottingham has continued to tailor and revamp the system, constantly updating the operational system to fulfill the identified needs of the Treasurer’s office. Nottingham’s solution includes secure online access, instant database and reporting functions, plus built-in controls enabling Treasurer oversight.
Nottingham designed a unitized accounting system that:
The improved accounting system: