MONTEREY COUNTY TREASURY

Transcription

1 MONTEREY COUNTY TREASURY

2 WHAT WE DO: The Monterey County Treasury functions as the County s bank. The Treasury receives annual revenue from deposits totaling nearly $1.5 billion from county departments, school districts, special districts, and the State of California. The Treasury maintains records of all bank activity and balances those funds to the County Auditor- Controller s ledgers.

3 SOURCES OF DEPOSITED REVENUE: Annually, the Treasury receives more than 300,000 checks and other negotiable instruments, including electronic deposits. These are normally deposited into the County's operating account within 24 hours of receipt.

4 MAJOR SOURCES OF DEPOSITED REVENUE: Property Taxes State subventions, for health and human services, local sales tax, school average daily attendance revenue, and motor vehicle license fees. Fines Service Charges

5 TYPES OF FUNDS DEPOSITED: Cash Deposited to checking account on the next business day. Checks Deposited to checking account on the same business day. Electronic Funds Transfer (EFTs) These include wires and Automated Clearing House (ACH) transfers. Deposited same business day.

6 DEPOSITS: The Treasury receives deposits from other county departments and special districts. The deposits are processed through Advantage Software using a Cash Receipt (CR) document or Cash Receipt for Special Districts (CRS).

7 CASH RECEIPTS: A Cash Receipt (CR) document is submitted by a county department once a deposit is ready to be submitted. The CR goes through a thread of approvals before the funds are deposited in the Treasury. Each Department creates it s own path for approvals but they generally follow a similar process: Customers County Department Auditor Controller's Office Treasury County Checking Account

8 CASH RECEIPT FOR SPECIAL DISTRICTS: A Cash Receipt for Special Districts (CRS) document is submitted to the Treasury by a Special District. Treasury verifies the deposit and a CRS is forwarded to the Auditor s Office for final approval. Customers Special District Treasury Auditor Controller s Office County Checking Account

9 FUNDS IN CHECKING ACCOUNT: What happens once the funds are deposited in the county s checking account? Vendor Payments Payroll Investment Pool

10 PAYMENT FLOWCHART: Department s Request of Vendor or Public Payment Vendor or Public Auditor Controller s Office Treasury County s Checking Account Payroll Request Employee

11 FUNDS NOT REQUIRED FOR IMMEDIATE USE: Not all funds received by the Treasury are required for immediate use. The Treasury has developed a comprehensive cash flow forecast that projects the amounts and time frames when liquid funds must be available for depository agency disbursements. The Treasury s average daily cash outflow from all participating agencies exceeds $6 million. Throughout the fiscal year, the total cash outflow is approximately $1.5 billion in annual deposited revenues, and is evidenced by over 500,000 disbursement checks.

12 FUNDS NOT REQUIRED FOR IMMEDIATE USE: The Investment Pool

13 THE INVESTMENT POOL: Funds not required for immediate use become part of the Investment Pool. The general purpose of the investments is to provide for the liquidity needs of depositors. The Treasury manages a short term fixed income investment portfolio that averages approximately $1.1 billion. Investments are limited to instruments legally permitted under section of the California Government Code, and must meet the criteria of the Monterey County Treasurer-Tax Collector s Investment Policy. The policy is reviewed and approved annually by the County Board of Supervisors. Compliance with the investment policy is also audited annually by an independent certified public accountant and periodically by the County Auditor- Controller.

14 POOL PARTICIPANTS Participants in the Treasury s Investment Pool are limited to County of Monterey, school districts within the Monterey County, and special districts, which by statute, maintain depository authority with the County Treasurer-Tax Collector.

15 THE INVESTMENT POOL: The portfolio has, at a minimum, 30% of total funds in overnight investments and short-term money market instruments that can be readily converted to cash. This degree of liquidity assures that funds are always available to meet normal and unexpected cash demands without the need to sell other investments that could result in a loss due to market conditions. The investment portfolio maintains a weighted average of less than one and a half years.

16 THE INVESTMENT POOL: Other investments in the pool may include U.S. Treasuries, Federal Agency Securities, Commercial Paper, Banker s Acceptances, and highly-rated Corporate Notes.

17 PRIMARY INVESTMENT OBJECTIVES: Safety: Safety of Principal Liquidity: The Portfolio shall remain sufficiently liquid to enable all deposits to meet reasonably anticipated expenditure requirements. Return on Investment: The Portfolio is designed with the objective of attaining a market rate of return throughout budgetary and economic cycles within the parameters of prudent risk management.

18 RISKS THE INVESTMENT POOL FACES: State law mandates that the County Investment Pool be invested conservatively and limits investment to fixed income securities. Accordingly, County pools may not invest in equities, commodities, real estate, index funds and derivative notes. While these mandates mitigate risk, other risk factors remain present.

19 OTHER RISKS: Liquidity Risk: The risk of being unable to quickly sell an asset at its fair market value. Interest Rate Risk: Risk that changes in interest rates will adversely affect the value of the securities in the Portfolio. Credit Risk: Risk that an issuer may default on repayment of principal assets, resulting in a loss in the Portfolio.

20 INVESTMENT FLOWCHART: Government Code County s Cashflow Needs Investment Decision Investment Policy The Market

21 INVESTMENT POOL SAFETY: Several tools are utilized to ensure the safety of Treasury Pool assets. Some examples include: CREDIT RATINGS Treasury staff assesses each investment s credit rating to ensure it complies with required levels. DIVERSIFICATION Another safety measure employed by the Treasury is diversification. Markets offer several types of fixed income securities. Assets are diversified through different investment vehicles, which reduces the risk of incurring losses.

22 OVERSIGHT OF THE INVESTMENT POOL: The Monterey County Board of Supervisors delegates authority to manage the Monterey County investment program to the Treasurer-Tax Collector pursuant to Government Code Section The Treasurer-Tax Collector is responsible for establishing written procedures for the operation of the investment program that are consistent with the investment policy, and include explicit delegation of authority to persons responsible for investment transactions. Additionally, a Treasury Oversight Committee, selected by the Treasurer-Tax Collector and confirmed by the Board of Supervisors pursuant to Government Code section 27130, reviews policy and reports on compliance on a quarterly basis.

23 THE COMPLETE TREASURY FLOWCHART: Funds from Customers Vendor Payment/Payroll Request County Department Auditor Controller s Office Treasury Investment Decision Investment Institution County s Checking Account Vendors Payroll Law Government Code County Investment Policy The Market County s CashFlow Needs

24 OTHER SERVICES: Banking Information Setting up ACH for service payments. Wire information Grant Applications Banking Services Access to CashPro Credit Card Machines Assistance with account filters. For assistance with any of these services or call

25 OTHER SERVICES: Assistance with cash handling procedures using the Auditor s Cash Handling Policy Petty Cash check handling. Monetary change for official business services. Counterfeit currency detection information. For assistance with any of these services Treasury@co.monterey.ca.us or call

26 OTHER SERVICES: Assistance with Loomis Courier Service Set up of service Cancellation Re-scheduling Electronic Funds Transfer (EFT) research. Returned check imaging and information W-4 form For assistance with any of these services or call

27 VISIT OUR WEBSITE: Treasury s Cash Management. Investment Management. Counterfeit Currency PowerPoint presentation. Handling contaminated currency. Unclaimed Property. Treasury Oversight Committee Current Investment Policy Current and Archived Board Reports. Investment Definitions.

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29 CONTACT INFORMATION: We are located at: 168 West Alisal Street First Floor Salinas, CA Phone (831) Fax (831) Hours: Monday Friday 8AM 5PM

30 Questions?