HomeMy WebLinkAboutTreasury Oversight Committee Compliance Audit Sweeney, Kathleen
From: Lam, Lisa
Sent: Friday, April 29, 2016 4:56 PM
To: Connelly, Bill; Kirk, Maureen; Lambert, Steve; Teeter, Doug; Wahl, Larry
Cc: Moak, Peggy; Taggart, Kevin; Sweeney, Kathleen
Subject: Treasury Compliance Audit -Accept for Information
Attachments: TTC.TresCompAudit.Rpt.pdf
Good afternoon,
The Butte County Treasury Oversight Committee was required to have an annual compliance audit done to ensure the
county's compliance with Government Code Article 6,, Section 27130 et sec.The committee was dissolved as of
11/10/15, and a new Investment Pool Oversight Committee was formed.The compliance audit was,reviewed and:
accepted at the 4/12/16 Investment Pool Oversight Committee meeting. For the fiscal year 14/15,the audit was
performed by Gallina, LLC.A copy of the audit is attached.The compliance audit found the county to be in compliance
with applicable code.The audit conctuded that"the Treasury Oversight Committee functioned during 2014/2015 as was
intended by the legislation. It is our opinion that oversight was properly provided."
Please accept for informational purposes only.
Thank you,
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Assistant Treasurer-Tax Collector, Treasury Division
QLAtte Co nt -Frpasurer-"I"ax C.Oector
25 Cou t.y
Li _f,—!I�er Ddy 1 0 ov e CA 95965
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T. 53011.538.7539 I F 530.538.76-4-6. ............................------------
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COUNTY OF BUTTE
Treasury Oversight Committee
For the Year Ended June 30, 2095
Table of Contents
Page
IndependentAccountant's Report...................................................................................................... 1
CommitteeMembers.......................................................................................................................... 2
Backgroundand General............................................. ................................................................... 3
ComplianceAudit............................................................................................................................... 3
Committee Formation and Operation.....................................................................-.—.................... 3
InvestmentPolicy Statement.............................................................................................................. 3
InvestmentPolicy Review................................................................................................................... 4
Complianceto Policy...............................................................................................
Reporting............................................................................................................................................ 4
InterestApportionment....................................................................................................................... 4
Conclusion.......................................................................................................................................... 5
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GALLINA
E Ill V Ill RUOLVt A C C O U N Tit h ro
INDEPENDENT ACCOUNTANT'S REPORT
Members of the Treasury
Oversight Committee
County of Butte
Oroville, California
We have examined the County of Butte's compliance with the Treasury Oversight Committee and the
County of Butte Statement of Investment Policy provisions contained in Article 6, Sections 27130-27137 of
the California Government Code and the County of Butte Statement of Investment Policy, for the year
ended June 30, 20,15. The County Treasury's management is responsible for the compliance with those
requirements. Our responsibility is to express an opinion on the County's compliance based on our
examination. We did not audit, verify or confirm the existence of the investments as this was not within the
scope of this engagement and is normally included as part of the County's annual financial audit. Rather,
the sole purpose of this audit was to determine compliance with the requirements specified in the
Government Code Sections,
Our examination was made in, accordance with standards established by the American Institute of
Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about
Treasury management's compliance and performing such other procedures as we considered necessary
in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on compliance with specified requirements,.
In our opinion the County of Butte is in compliance, in all material respects, with the articles of Sections
27130427137 of the Government Code for the fiscal year ending June 30, 2015. We have included on the
following pages our discussion and observations regarding the oversight provided.
Anou—',
Roseville, California
December 7, 2015
COUNTY OF BUTTE
Treasury Oversight Committee
For the Year Ended June 30,2015
COMMITTEE MEMBERS
Member Title/Organization Agoointed From
Maureen Kirk,Chairperson Third District Supervisor/
Butte County Board of Supervisors Representative
Lisa Anderson,Vice-Chairperson BCOE Director of Fiscal Services/
Superintendent of Schools Representative
David A. Mouser Butte County Auditor-Controller
Mark Milbum Paradise Recreation&Park District/
Special Districts Representative
Susan Watts OUMSD Assistant Superintendent of Business/
School Districts Representative
Adviso
Peggy Moak Treasurerfrox Collector
Susie Akins Administrative Analyst
2
COUNTY OF BUTTE
Treasury Oversight Committee
For the Year Ended June 34,2015
Rackgroung and General
In 1995, the California legislature passed provisions requiring each county and city to establish an
oversight committee of 3 to 11 members representing various organizations(the pool of organizations was
also specified in the legislation). The purpose of this committee was to oversee the policies that guide the
investment of public funds.The committee was not to impinge on the day-to-day operations of the County
Treasurer, but rather to review and monitor the Treasurer's investment policy and reporting.
Certain statutory changes were enacted by the California legislature effective January 1, 2005.
Government Code Section (GC) 27131 now makes the Treasury Oversight Committee optional, although
the Legislature encourages the continuation of the Oversight Committee. If the County elects to continue
the Treasury Oversight Committee, Government Code section 27134 would still require an annual audit to
determine compliance.
Other statutory changes also include the removal of the mandatory filing of the County's annual
investment policy and the County's quarterly investment report with the Treasury Oversight Committee.
Instead, the County's annual investment policy should be submitted to the County Board of Supervisors
and the quarterly investment reports should be submitted to the County's Administrative Office, Auditor-
Controller or Board of Supervisors.
Comaliang Audit
The oversight legislation included many specific requirements such as the required contents of the
Treasurers Investment Policy. GC 27134 requires an annual audit to determine compliance with the
provisions. This audit serves to comply with this provision.
ComMittee Formation and Oyeratlon
In 1996, Butte County issued a Resolution, which established the Butte County Treasury Oversight
Committee(Committee), membership,term of members,organization, powers and duties.
Meetings were held during the 20142015 year on September 9, 2014 and April 7,2015.We reviewed the
minutes and believe the meetings were properly conducted in order to provide oversight.
Investment Policy Statement
GC 27133 requires the County Treasurer to annually prepare an investment policy statement even if there
were no policy changes. The Statement is reviewed by the Oversight Committee and submitted to the
Board of Supervisors for approval. We noted that this was properly done and a policy updated as of
July 1, 2014 was on hand and was used for purposes of this audit. It was submitted and approved by the
County's Board of Supervisors.
3
COUNTY OF BUTTE
Treasury Oversight Committee
Forthe Year Ended June 30, 2015
Investment Policy Review
We reviewed the requirements specified in GC 27133, items a-h,which describe the required contents of
the investment policy. We noted the following;
Policy Deemed
Reaufrement Section Compliant
a) Authorized securities VIII Yes
Maximum percentage by type VIII Yes
b) Maximum terms Vill Yes
c) Criteria for selection of brokers IX Yes
Prohibition of political contribution X Yes
d) Limits on gifts(GC§27130) X Yes
e) Reporting to Oversight Committee XI Yes
f) Calculation of treasurer's costs III Yes
(GC§27013)
g) Voluntary depositors V Yes
h) Requests for withdrawal VI Yes
As shown above, we believe the policy adopted contained all the provisions specified in the oversight
legislation.
COMPHance,12 Policv
We reviewed the County's actual practices during 2014-2015 to determine compliance to the investment
policy. We verified the maximum percentages by category of investment. All categories of investments did
not exceed the maximum allowed percentage at year end. We also verified that maximums for single
issuers and maximum term limits specified in the policy were not exceeded at year end. There were no
exceptions noted.
Reporting
We reviewed the quarterly reports which were submitted to the Board of Supervisors and to the
Committee to verify that they contained the information specified in the law. They appeared to be complete
with all the required information.
Interest ARportlonment
The interest earned on the pooled investments is apportioned by the Treasurer's office each quarter.
These apportionments are made based on the average daily balances of each fund for the quarter. We
reviewed the methodology used to apportion the Treasurer's costs that were charged against the interest
before the balance was apportioned. We believe the apportionment process is properly functioning to
equitably distribute the investment earnings to the fund participants.
4
COUNTY OF BUTTE
r
Treasury Oversight Committee
For the Year Ended June 30,2015
Conclusion
The investments at June 30, 2015 appear to be in compliance with the County's investment policy. We
believe the Treasury Oversight Committee functioned during 2014-2015 as was intended by the
legislation. It is our opinion that oversight was properly provided.
5