Advancing a commitment of harnessing technology to enhance efficiencies, the Cook County Treasurer's Office, Illinois, commenced use of GFOA YieldAdvantage to invest in certificates of deposit on June 7, 2005. Using GFOA YieldAdvantage , an Internet auction offered by the Government Finance Officers Association, the Treasurer's Office invested $88.3 million in certificates of deposit, earning better yields on the CDs.
Maria Pappas, the Cook County Treasurer, said she was pleased with the results of the 30-minute electronic sale. "I believe that county taxpayers benefit because the auction is more efficient and makes it possible for more banks to compete for county deposits. We will be using this platform on a regular basis. It simplified the investment process for us and our bank partners."
Using GFOA YieldAdvantage, the Treasurer held auctions for certificates of deposit for nine different maturities ranging from seven days to 70 days and for amounts between $250,000 and $33 million. Bids for the certificates of deposit were submitted in an "open" auction where the banks bidding saw whether they were leading to win award of the Treasurer's investment or needed to improve and resubmit their rates. A total of 13 banks submitted 133 bids for the nine certificates of deposit.
The Cook County Treasurer's Office plans to repeat the success of this initial certificate of deposit placement on a weekly basis for its investment in certificates of deposit.
GFOA YieldAdvantage is a Web-based investment auction platform offered through an alliance of the Government Finance Officers Association and Grant Street Group. Through the use of GFOA YieldAdvantage, state and local governments are able to solicit bids easily and efficiently from a larger number of financial institutions via the Internet, enhancing the investment of government funds.