CASH MANAGEMENT

The Genesee County Treasurer’s Office functions as the County’s bank. The Treasurer receives annual revenue from deposits totaling $494 million (year ending June 30, 2006) from other County departments, various local, state and federal agencies and delinquent taxes. The Treasurer maintains records of all bank activities.

The sources of deposited revenue include; property taxes, fines, service charges and intergovernmental transfers. Checks and other negotiable instruments received by the Treasurer are normally deposited into the County’s operating account within 24 hours of receipt.  Click here for Investment Charts.

Not all funds received by the Treasurer are required for immediate use. Therefore, the Treasurer has developed a cash flow forecast that projects the amounts and time frames when liquid funds must be available for disbursements. The average daily cash outflow from funds collected by the County Treasurer from all agencies exceeds $1.90 million. By the end of the fiscal year, the total cash outflow from the County Treasurer is close to the $494 million annual deposited revenues, and is evidenced by over 59,000 disbursements checks and 7,241 electronic funds transfers and wires.

Revenue received by the County Treasurer that is not required for immediate use becomes part of the County Treasurer’s investment portfolio.

INVESTMENT MANAGEMENT AND POLICY

The County Treasurer actively manages an investment portfolio that averages $103.5 million. Investments are limited to those instruments legally permitted under Public Act 20 Revised of Michigan and must meet the criteria of the Genesee County Treasurer’s Investment Policy. The Genesee County Board of Commissioners approves the investment policy. The Treasurer’s compliance with the investment policy is audited annually by an independent certified public accounting firm.  Click here for Investment Policy.

The Treasurer maintains a portfolio that averages 17% liquidity. This liquidity is composed of government operating money market funds 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. Other investments include Certificates of Deposits, U.S. Treasury and federal agency securities, and commercial paper.