Financial Services

Cashiering: Receipts money deposited into the County Treasury; settles with the bank for all County and School checks presented for payment on a daily basis; and maintains records of accounts with service bank, as well as daily cash reconciliation.

Accounting: Maintains records of all receipts and disbursements of cash; produces daily balance sheet, maintains cash ledger balances, and makes monthly reports of the Treasurers accounting system.

Debt Management: Performs various debt management services including financial advisory, structuring and feasibility analysis, document review, settlement with bond purchasers, investment management, and paying agent services.

Investments: Prudent investment of all available treasury funds with primary consideration for safety and liquidity to achieve maximum interest earnings. Treasury funds include more than 500 separate funds of County, schools, and special districts for a total of more than $180 million in custody.

Dealer Selection

Only Primary Dealers or subsidiaries of Primaries are considered eligible to trade with the County. Primary Dealers are those authorized to enter into Re-purchase and Reverse Repurchase Agreements with the Federal Reserve. Authorized dealers can be added or deleted only with the Treasurers approval. Dealers are selected on the basis of creditworthiness, capital adequacy, availability of investment inventory, and experience in trading in authorized investments. Firms utilized for money market mutual funds must either attain the highest ranking or the highest letter and numerical rating provide by not less than two of the three largest nationally recognized rating services (Moody's, Standard & Poors, or Fitch) OR have retained an investment adviser registered with the Securities and Exhange Commission with not less than five years experience investing in the secuites and obligation as authorized in G.C. 53635 and have assets under management in excess of five hundred million dollars ($500,000,000).

All financial institutions and broker/dealers who desire to become qualified firms for County Treasury investment transaction must supply the auditied financial statements, proof of National Association of Securities Dealers (NASD) certification, proof of State registration, completed broker/dealer questionnaire, and certification to having read the Kings County Investment Policy.

Current Authorized Dealers can be found in the the Investment Guides.

Dealer Selection

A copy of the County's Investment Policy, including this section, will be delivered to those firms and persons dealing with the County, along with a receipt for same. It will acknowledge delivery of the Policy and that the parties covering the account, including back-up and management staff have reviewed its content. It places no liability upon the salesperson or the firm for its enforcement. It's purpose is to assure all parties that the salesperson possesses a copy of Government Code Section 53635 and any further restrictions imposed by the County, as well as delivery instructions for trade settlement. Should a salesperson fail to sign and return the receipt within thirty days, trading with that firm will be suspended until the receipt is returned.

Under no circumstances will a trading counter-party retain custody of any securities owned by the County. ALL TRADES WILL BE DELIVERY VERSUS PAYMENT (DVP) THROUGH THE COUNTY'S CUSTODIAN.

BROKERS, BROKERAGES, DEALERS, OR SECURITIES FIRMS SELECTED TO DO BUSINESS WITH THE COUNTY ARE PROHIBITED FROM MAKING POLITICAL CONTRIBUTIONS OF ANY KIND TO THE TREASURER-TAX COLLECTOR, ANY MEMBER OF THE COUNTY BOARD OF SUPERVISORS, ANY MEMBER OF THE COUNTY INVESTMENT OVERSIGHT COMMITTEE, OR ANY CANDIDATE FOR THE ABOVE POSITIONS.

Treasury Oversight Committee

In accordance with G.C. 27130, the Kings County Board of Supervisors passed Resolution No. 95-081, dated December 5, 1995 and Resolution No. 95-081.2, dated October 13, 1998, creating and amending the County Treasury Oversight Committee. The purpose of the Committee is to allow local agency representatives participation in the policies that guide the investment of depositor funds. The Committee consists of the following seven members: County Director of Finance, County Auditor-Controller, County Administrative Office representative, County Superintendent of Schools representative, School District’s representative (elected), Special District representative (elected), and a public member (appointed).

The primary responsibilities of the Committee include: (a) to review and monitor the County Department of Finance's Statement of Investment Policy, (b) to cause an annual audit to be conducted to determine the County Treasury’s compliance between the investment portfolio to the Investment Policy and applicable G.C. sections, and (c) to establish criteria for depositor withdrawal of funds for the purpose of investing or depositing outside the County Treasury pool. Meetings of the Oversight Committee are open to the public and subject to the Ralph M. Brown Act.

A member of the Oversight Committee may not be employed by any member of a legislative body of any local agency that has deposited funds into the county treasury, in the previous three years or during the period that the employee is a member of the Committee. While serving on the Oversight Committee, a member may not directly or indirectly raise money for any member of a legislative body of any local agency that has deposited funds into the county treasury. Finally, a member may not secure employment with, or be employed by, bond underwriters, bond counsel, security brokerages or dealers, or a financial services firm, with whom the treasurer is doing business during the period that the person is a member of the committee or for one year after leaving the committee.

The Oversight Committee is not allowed to direct individual investment decisions; select individual investment advisors, brokers, or dealers; or impinge on the day-to-day operation of the County treasury and investment operations.

Quarterly Interest Rate & Earnings

Cash Management Operations Manual
Investment Procedures
Interest Earnings

Interest is computed on the accrual basis of accounting on the average daily balance method of apportionment, simple interest method, and net of all administrative costs.

GASB 31 Reporting