The City of Walterboro, South Carolina solicited a $250,000 6 month CD using GFOA YieldAdvantage, a new Internet auction website offered by the Government Finance Officers Association. Traditionally, government entities and school districts solicit bids from banks via phone. Using the GFOA YieldAdvantage website, state and local governments are able to solicit bids easily and efficiently from a larger number of banks via the Internet and to conduct an on-line auction in which these banks bid against each other for the deposit. The state or local government gets the benefit of a higher investment rate from the combination of increased competition and the auction format. Solicitation amounts range from $100,000 (or less in some instances) to millions of dollars. In the City of Walterboro auction, 5 banks from South Carolina submitted 24 bids during the 30 minute auction.
In December 2003, the GFOA entered into an alliance with Grant Street Group, a fixed income Internet auction house and parent of MuniAuction, to create the GFOA YieldAdvantage website (www.gfoayield.com).
About the Government Finance Officers Association
The GFOA is the premier professional association in public finance, serving the needs of more than 15,000 governments in the United States and Canada. Established in 1906, GFOA is the main vehicle for recommended financial management practices that guide the state and local public sector. GFOA provides training programs, a wide range of publications and periodicals, renowned awards programs, and consulting services. For more information, visit the GFOA Website at www.gfoa.org.