Mendocino County Grand Jury • 2013-2014

County Treasury Investment Pool Our “Surplus” Money June 9, 2014

Published: June 09, 2014 11 pages
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Findings and Recommendations 9 findings

F1
The Mendocino County Investment Pool is a major responsibility of the County Board of Supervisors and the County Treasurer. The magnitude of the funds coupled with the legal requirements regarding their investment requires a thorough knowledge of the financial markets, the economy, and the financial needs of the participants.
No recommendations for this finding
F2
Chandler Asset Management is contributing an essential function as financial advisor in the performance of the Investment Pool and providing periodic professional reports. These periodic reports would be improved by the addition of an explanatory report by the County Treasurer.
Related Recommendations (1)
R2
Performance parameters be included in the Pooled Investment Reports that indicate what return on investments has been obtained. (F2, F5)
F3
The management of the Investment Pool has been successfully investing in accordance with the County approved investment plan, with consideration given to socially responsible companies as identified in the Calvert Social Index.
Related Recommendations (1)
R1
Additional resources for evaluating the social responsibility of the investment instruments in the portfolio be identified and applied. (F3)
F4
There is no Oversight Committee or a treasury investment round table discussion group meeting scheduled. The Grand Jury believes community involvement is required to improve local economic growth.
Related Recommendations (1)
R3
An Oversight Committee of members of the participating agencies and representatives of the financial and interested community be organized and utilized. (F4)
F5
The County Board of Supervisors is exercising proper responsibility in requiring periodic performance reports on the Investment Pool from the County Treasurer. The reports on the investments meet the County Investment Policy goals of security and liquidity. The reports do not provide information regarding whether a reasonable rate of return on the investments was obtained.
Related Recommendations (1)
R2
Performance parameters be included in the Pooled Investment Reports that indicate what return on investments has been obtained. (F2, F5)
F6
The establishment of a public-owned bank by the County, although desired by some, and arguably beneficial to the local economy, is problematic for many reasons.
No recommendations for this finding
F7
The investment of Investment Pool funds locally is not possible under current legislation.
Related Recommendations (1)
R4
Out-reach be made to local banks to obtain dialogue concerning future participation among the banks and the County Treasury Investment Pool. (F7)
F8
In 2012 the local financial institutions did not show interest in being a custodian of the Investment Pool liquid assets and out-of-county banks were selected.
No recommendations for this finding
F9
The quarterly reviews of the County Treasury by the County Auditor per Government Code §26920(a) are not available or reported to the Board of Supervisors.
Related Recommendations (1)
R5
The quarterly review of the County Treasury be performed and a report be provided to the Board of Supervisors as required by Government Code §26920(a). (F9) RESPONSES Pursuant to Penal Code §933.05, responses are required from the following individuals: • Auditor, Mendocino County (All Findings, All Recommendations) • Treasurer, Mendocino County (All Findings, All Recommendations) Pursuant to Penal Code §933.05, responses are required from the following governing bodies: • Board of Supervisors, Mendocino County (All Findings, All Recommendations)

Agency Responses 1

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.