The Treasurer Division is the banker, investor and cash manager for the county and many of the special districts including the schools. Responsibilities include depositing the revenue from all sources into the bank, keeping accurate daily records of the fund balances and paying the checks that are written by the Auditor. The funds are pooled for investment purposes and interest is apportioned quarterly on the basis of those average daily fund balances.
Many people focus on the investment function as the most time consuming aspect of the treasurer division. While it certainly holds the most risk and requires the most expertise, the banking and accounting functions take more time. The pooled funds not used immediately for payment of checks issued by the Auditor Division are invested in the money market. California Government Code determines allowable investments and the Sierra County investment policy further limits the types of investments that are appropriate for the county investment pool. The guiding principles of the investment policy are always in this order: safety, liquidity and yield. This is the public's money being invested so safety (low-risk) is the first consideration and, therefore, funds cannot be invested in the stock market. The second consideration is availability of funds when needed to cover disbursements (liquidity). After the first two criteria are met, the yield (interest earnings) on investments is the focus. An independent investment advisor provides investment expertise and reporting services to assist in keeping up on market conditions and opportunities.
June 19-20 Treasurer Summary
Investment Policy and Guidelines