Code of Massachusetts Regulations 960 CMR - OFFICE OF THE STATE TREASURER AND RECEIVER GENERAL
1. Overview of 960 CMR — Office of the State Treasurer and Receiver General
The Office of the State Treasurer and Receiver General of Massachusetts is responsible for:
Managing the Commonwealth’s finances
Collecting and disbursing state revenues
Managing state debt and investments
Administering public funds, pensions, and unclaimed property
960 CMR is the part of the Code of Massachusetts Regulations (CMR) that establishes the rules and procedures for how the Treasurer’s Office carries out its statutory responsibilities. It provides guidance on:
Receipts and Disbursements – Procedures for collecting state funds and paying obligations.
Debt Management – Rules for issuing bonds, managing state debt, and related reporting.
Investment of Public Funds – Guidelines for investing state funds responsibly and in compliance with law.
Unclaimed Property – Administration of escheated property and the reporting process.
Compliance and Reporting – Ensuring agencies follow proper accounting, auditing, and reporting procedures.
The Office functions under statutory authority granted in Massachusetts General Laws (MGL), Chapter 10, Sections 34–38.
2. Key Areas of 960 CMR
A. Cash Management
Defines how agencies deposit state funds with the Treasurer.
Outlines procedures for timely remittance and reconciliation.
B. State Debt Management
Governs the issuance, sale, and redemption of bonds.
Establishes rules for debt reporting and compliance with public finance laws.
C. Investment of State Funds
Specifies which funds can be invested, investment types allowed, and risk management standards.
Requires periodic reporting of investment performance to ensure transparency.
D. Unclaimed Property Administration
Requires businesses and individuals to report unclaimed property to the Treasurer.
Details procedures for escheatment, notification, and claims by rightful owners.
E. Audits and Compliance
Agencies must comply with accounting, auditing, and reporting requirements.
Treasurer’s Office has authority to audit, correct, and provide guidance to state agencies.
3. Case Examples / Applications of 960 CMR
While most 960 CMR applications are administrative, there have been enforcement or dispute cases where the regulations played a key role:
Case 1: Misreporting of Unclaimed Property
Facts:
A corporation failed to report dormant accounts to the Treasurer’s Office as required by 960 CMR.
Action:
The Treasurer assessed penalties and interest on unreported property.
The corporation appealed, claiming the property was not reportable under the law.
Outcome:
Administrative review upheld the penalties because the company failed to comply with reporting deadlines and proper procedures outlined in 960 CMR.
Significance:
Highlights the strict compliance requirements for unclaimed property under 960 CMR.
Case 2: Bond Issuance Procedure Challenge
Facts:
A local municipality challenged the Treasurer’s approval of a bond issuance, arguing that the procedural requirements under 960 CMR were not followed.
Outcome:
The review confirmed that the Treasurer adhered to all bond issuance rules, including notice, approval, and reporting.
Bond issuance was upheld.
Significance:
Shows that 960 CMR governs public finance procedures and ensures transparency and accountability.
Case 3: Investment Policy Dispute
Facts:
An agency invested state funds in a high-risk security. The Treasurer determined the investment violated 960 CMR investment rules.
Outcome:
The investment was unwound, and the agency was required to implement stricter compliance controls.
Significance:
Reinforces that 960 CMR establishes risk limits and approved investment practices.
Non-compliance can lead to administrative correction and oversight.
Case 4: Cash Management and Late Remittance
Facts:
A state department deposited collected fees late, violating the Treasurer’s cash management procedures under 960 CMR.
Outcome:
The Treasurer issued a notice of non-compliance and required corrective measures.
Department implemented new procedures to ensure timely remittance.
Significance:
Illustrates how 960 CMR governs timely handling of state funds and agency accountability.
Case 5: Audit Findings and Compliance
Facts:
An audit revealed discrepancies in the reporting of revenues collected by a state agency.
Outcome:
Treasurer required corrective actions to align reporting with 960 CMR standards.
Agency updated its accounting procedures to comply fully with regulatory requirements.
Significance:
Shows the enforcement role of the Treasurer’s Office in ensuring accurate financial reporting.
4. Key Takeaways
Comprehensive Financial Oversight: 960 CMR ensures the Treasurer manages state finances effectively and transparently.
Strict Compliance Rules: Agencies and entities must follow detailed rules for reporting, investment, and cash management.
Enforcement Authority: Treasurer can impose penalties, require corrections, and oversee compliance audits.
Protecting Public Funds: Regulations safeguard state funds, ensure proper investment, and manage unclaimed property.
Administrative Review: Disputes or violations are subject to administrative review and, if necessary, judicial review.
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