ACCOUNTING FOR INVESTMENT SECURITIES - 8770

Securities purchased as fund investments will be recorded as assets of the fund under the date of the State Treasurer's Advice unless the date of the Controller's warrant is different from the date of the advice. If the warrant date is different, the State Treasurer will show the warrant date on his advice. In this case, the transaction will be accounted under the date of the warrant. Claim schedules prepared for the purchase of securities will not be recorded in the agency accounts since no liability is incurred nor is there any change in the fund assets until the securities are purchased. Such claim schedules will serve as memorandum records pending completion of the transaction as evidence by the State Treasurer's Advice.

Many agencies that maintain savings accounts outside the centralized State Treasury System or have investments which they manage have received requests from depository banks and other payers of interest for taxpayer identification numbers normally required by the Internal Revenue Service for the identification and reporting of interest, dividends, and other payments.

The Internal Revenue Service does not require taxpayer identification numbers for accounts of funds owned or controlled by the State. Therefore, agencies that receive such requests should inform those requesting the numbers of the nature of the entity for which the savings account or investment is held. Agencies should not request taxpayer identifying numbers from Social Security Administration or Internal Revenue Service.