Agenda Item   



                                                                                                                        ASR Control  23-000880




legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Treasurer-Tax Collector   (Approved)

Department contact person(s):

Shari L. Freidenrich (714) 834-7625 



Jason Prole (714) 834-4774



Subject:  Approve Investment Policy Statement and Delegate Investment Authority


      ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Resolution to Form




3 Votes Board Majority




    Budgeted: N/A

Current Year Cost:   N/A

Annual Cost: N/A




    Staffing Impact:


# of Positions:            

Sole Source:   N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:     N/A

County Audit in last 3 years: 2021, 2022, 2023

   Levine Act Review Completed: N/A


    Prior Board Action:         12/20/2022 #15, 12/14/2021 #15, 11/17/2020 #12, 11/19/2019 #14






Approve the 2024 Investment Policy Statement.



Adopt Resolution approving the 2024 Investment Policy Statement and delegating investment authority to the Treasurer-Tax Collector for calendar year 2024.







Approval of the Investment Policy Statement will continue to authorize the Treasurer-Tax Collector to invest public funds for calendar year 2024 and provide for oversight of public funds.





In accordance with California Government Code Section 53646, the Treasurer-Tax Collector (Treasurer) may annually render to the Board of Supervisors (Board) and any oversight committee a statement of investment policy for funds in the County Treasury, which the Board shall review and approve at a public meeting. As required by the current Investment Policy Statement (IPS), any changes to the IPS must be reviewed and approved by the Board at a public meeting after being reviewed by the Treasury Oversight Committee (TOC).  In addition, in order to continue the delegation of authority from the Board to the Treasurer to invest funds, the Board is required under County of Orange Ordinance 1-2-320 to receive and approve an annual investment policy statement from the Treasurer. The annual report of the TOC for 2023 is expected to be reviewed by the TOC at the January 2024 meeting, and the Chair is expected to present this required verbal and written report to the Board during the first quarter of 2024.


Consistent with the August 4, 2015, memo to the Board describing the process in place for due diligence of the IPS, the Treasurer performed the due diligence review of the County of Orange 2024 IPS and updated the policy based on that review. The TOC reviewed the draft 2024 IPS on October 25, 2023, as required by the TOC Bylaws.


There are no major changes being requested in the current proposed IPS but there are several non-substantive changes primarily related to funds covered by the IPS. The non-substantive changes are as follows:


                        Section PURPOSE:    Moved the list of government agencies to Scope section.

                        Section I. POLICY STATEMENT:  Deleted the section on separate funds as it is no longer applicable.

                        Section II. SCOPE:  Defines the funds that are excluded from the County Treasury that are established by the governing body. 

                        Section II. SCOPE. FUNDS:  Adds that revolving funds established by the governing body are not part of the County Treasury.  Adds that all pooled funds and specific investment account funds are governed by the IPS. 

                        Section II. SCOPE. Funds a) Pooled Funds:  Adds that Orange County Treasurer’s Pool (OCTP) may be a permitted investment in bond indenture documents. 

                        Section II. SCOPE. Funds b) Specific Investment Accounts:  Defines that the agency must bank with the County, that new accounts require Treasurer approval and adds, consistent with state law that the net interest income, after investment administrative fees, is to be credited to each account.

                        Section IV. DELEGATION OF AUTHORITY:  Removes Government Code Section 53608 as it is not applicable in this section.

                        Section V. OBJECTIVES:  Identifies the primary three objectives from state law and separates out the MARK-TO-MARKET section, which is internal County of Orange policy. 

                        Section VI. AUTHORIZED INVESTMENTS:  Adds that both OCTP and Specific Investment Accounts must only use authorized investments.

                        Section VI. AUTHORIZED INVESTMENTS. 7. MONEY MARKET MUTUAL FUNDS (MMMF): Added c) to be consistent with State law and clarified that for specific investment accounts, this limit applies to the total balances of the agency’s funds.

                        Section VII. INVESTMENT CREDIT RATING RESTRICTIONS: Clarified that this applies to both OCTP and Specific Investment Accounts and that exceptions for MMMF to only have one NRSRP must meet the requirements of Section VI.7.b.

12.       Section VIII. INVESTMENT TYPE, DIVERSIFICATION, MATURITY AND DURATION RESTRICTIONS:  Clarified that this applies to both OCTP and Specific Investment Accounts and added the MMMF restriction noted above and that only the OCTP had a duration restriction.


Based on the above, the Treasurer believes that the proposed changes to the 2024 IPS are appropriate and suitable for the County of Orange.


Delegation of Investment:

The Board is vested with certain public funds investment authority with respect to the County and other funds and may delegate its authority to invest funds to the Treasurer under California Government Code Sections 27000.1 and 53607 and County of Orange Ordinance 1-2-320 (a) and (b). If the Board delegates its authority to invest funds to the Treasurer, then the Treasurer shall thereafter assume full responsibility for such transactions, for a period of one year. This delegation is subject to the Treasurer's submission to the Board an IPS for review and approval annually. 


The Treasurer, as required by California Government Code Section 53607, has made and will continue providing the monthly transactions to the legislative body. In addition, as noted above in the IPS changes, the Treasurer will provide at least quarterly investment reports within 45 days of the end of the quarter that, as required by Government Code Section 53646, will state the compliance of the portfolio to the IPS and include a statement denoting the ability of the County to meet the pool expenditure requirements for the next six months and included other information relative to the County investments. 


Delegation for Safekeeping Authority

On December 14, 2021, as allowed under Government Code 53608 and County Ordinance 1-2-320(c), the Board delegated the depository authority for safekeeping to the Treasurer and that delegation is effective until revoked. 


Prior Board Actions:


Board Date

Board Action

12/20/2022 #15

Approved the 2023 IPS and the delegation of investment to the Treasurer for calendar year 2023.

12/14/2021 #15

Approved the 2022 IPS, the TOC Bylaws, the delegation of investment to the Treasurer for calendar year 2022 and delegated the deposit for safekeeping  authority to the Treasurer-Tax Collector

11/17/2020 #12

Approved the 2021 IPS, the TOC Bylaws and the delegation of investment and depository authority to the Treasurer for calendar year 2021

11/19/2019 #14

Approved the 2020 IPS, the amended TOC Bylaws and the delegation of investment and depository authority to the Treasurer for calendar year 2020

12/18/2018 #21

Approved the 2019 IPS, the amended TOC Bylaws and the delegation of investment and depository authority to the Treasurer for calendar year 2019



County Audits in Last Three Years:

The Auditor-Controller Internal Audit Division (A-C IAD) regularly audits compliance with the Investment Policy Statement as required by Government Code 26920(a) and (b) and a Treasury Oversight Committee directive. A-C IAD performed the Quarterly Compliance Monitoring of the Treasury Investment Portfolio from January 1, 2021, through June 30, 2023, with no compliance exceptions. The Annual Compliance Audit as required by Government Code 27134 was completed for FY 2021-22 with no compliance exceptions.


















Attachment A - 2024 Investment Policy Statement
Attachment B - 2024 Investment Policy Statement Redlined
Attachment C - County Resolution
Attachment D - California Government Code Section 53646
Attachment E - County Ordinance 1-2-320
Attachment F - August 4, 2015, Memo to the Board of Supervisors
Attachment G - California Government Code Sections 53600-53608
Attachment H - California Government Code Section 27000.1
Attachment I - California Government Code Sections 27134
Attachment J - California Government Code Sections 26920(a) and (b)