ctcLink Accounting Manual | 40.30.10.8 Investment with LGIP (1000050)

The Local Government Investment Pool (LGIP) investments deposited with the State Treasurer in the LGIP are considered a Cash Equivalent.

The LGIP is a voluntary investment vehicle operated by the State Treasurer. It was started in 1986 to provide safe, liquid, and competitive investment options for local government pursuant to RCW 43.250.

The LGIP allows colleges to use the State Treasurer’s resources to safely invest their funds while enjoying the economies of scale available from a $15-26 billion pooled fund investment portfolio.

LGIP’s investment objectives are, in priority order:

1. Safety of principal
2. Maintaining adequate liquidity to meet cash flows, and
3. Providing a competitive interest rate relative to other comparable investment alternatives.

LGIP offers 100% liquidity to its participants.

Colleges can withdraw up to $10 million without notifying the Treasurer and may withdraw more with one day’s notice.

Illustrative Entries

Depositing Cash with LGIP

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790 Only	285	ddddd	Voucher	1000050	1000070

Interest Earnings Distributed to All Funds and Earnings Reinvested

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790 Only	285	ddddd	Journal Entry	1000050	1000199
Distribution to Funds	ccc	ddddd	Journal Entry	1000199	4120010

Interest Retained Until Maturity

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790 Only	285	ddddd	Journal Entry	1000050	4120010

Interest Earnings Distributed to All Funds at Maturity

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790	285	ddddd	Accts Rec	1000070	4120010
Fund 790	285	ddddd	Journal Entry	4120010	1000199
Distribution to Funds	ccc	ddddd	Journal Entry	1000199	4120010

Original Investment Returned at Maturity

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790	285	ddddd	Accts Rec	1000070	1000050