The BTI maintains a proprietary fund which is reported separately from the fiduciary funds (investment pool) activity. The proprietary fund is an internal service fund, or operating fund, used to account for activities that provide investment and administrative services on behalf of the State and other participants in the Consolidated Fund. The BTI’s annual budget is adopted by the Board and approved by the West Virginia Legislature. The budget is subject to annual review and approval by the Legislature. Budgetary control is maintained through legislative appropriation and the executive branch allotment process. After legislative approval of the budget, the West Virginia Department of Administration maintains controls over the spending at the activity level and by the use of quarterly allotments. The West Virginia State Auditor’s Office exercises control over spending at the annual appropriation level.
Operating revenues of the BTI’s proprietary fund are derived from fees charged to the investment pools for administrative services provided by the BTI and charges for direct expenses. Administrative service expenses include staff salaries and benefits, fiduciary bond fees, software licenses, and office supplies and equipment. Direct expenses are those expenses directly attributable to the pools and accounts for investment management, investment consulting and investment custodian expenses. The fees are transferred to the proprietary fund and all expenses paid from that fund.
The BTI has the following expense appropriations:
9152 00100 Salaries & Benefits Special Revenue Appropriated
9152 13000 Current Expense Special Revenue Appropriated
9152 09900 Unclassified Special Revenue Appropriated
9152 91300 BRIM Premiums Special Revenue Appropriated
9152 93800 Fees of Custodians, Advisors & Mgrs. Special Revenue Appropriated
9152 BTI Fees Fund
Fees are collected based on the annual Board approved budget. Fees are taken from gross income prior to distribution. The Administrative Fee is set each year at a level sufficient to support the Administrative expense budget. Other fees charged to the pools include:
Investment Management Fees Flat and tiered basis points on assets under management.
Custodial Fees Combination of basis points on AUM and transaction costs
Consultant Fees Fixed annual fee billed in quarterly installments
Standard & Poor’s Fixed annual fee charged to the WVMM and WVGMM pools
Bloomberg Monthly fee charged
BTI Investment Funds
There are four funds in wvOASIS, the statewide accounting system, used to account for investment activity:
9151 WV Money Market Pool Fund
9153 WV Government Money Market Pool Fund
9154 WV Short Term Bond Pool Fund
9155 Participant Directed Pool Fund
Each of these funds reflect the investment in securities for the respective pools and accounts.
The BTI utilizes wvOASIS, the statewide financial accounting system, to record daily summary investment receipt and disbursement transaction data for the investment pools and accounts. The daily postings reflect investment purchases, sales, income receipts and maturities.
Net income distributions to participants are posted in wvOASIS in the following month. The BTI provides Participant Accounting with pool income, which is posted to detailed accounts maintained in the Broadridge Financial Solutions Q2 Investment Accounting System used for participant accounting recordkeeping. Participant Accounting also posts income distributions to the participants’ accounting funds in wvOASIS.
Bank Accounts
BTI Investment bank accounts are maintained at the Custodian bank, BNY Mellon. There is an account for each manager for each pool and one account for all Participant Directed Activity. An interest bearing account for the Reserve Pool is maintained at United Bank.