19 CAR § 11-206 – Return on investment

(a) Pursuant to Arkansas Code § 19-3-518(d)(4), the State Board of Finance shall establish the method of computing participants’ rate of return and earning to determine the distribution to each participant.
(b) The Treasurer of State shall distribute the monthly earnings of accounts whose moneys are statutorily comingled in the State Treasury’s general account, less any statutory deductions, on the second state business day after the twenty-fifth day of the following month.
(c) In order to determine the distribution to each account, the Treasurer of State shall:
1. (1)
  1. (A) Compute the daily rate of return (ROI) of State Treasury funds for the preceding month.
  2. (B) The daily rate of return will be calculated as a monthly annualized yield assuming daily amortization/accretion of all fixed income securities held and any realized profits or losses; and
2. (2) Calculate the daily earnings of each account by multiplying each account’s daily balance on deposit in the State Treasury by the daily rate of return.
(d) The monthly sum of each account’s daily earnings, less statutory deductions, shall be credited to each account on the distribution day as described above.