The Santa Cruz County Board of Supervisors unanimously approved new treasurer's office policies and guidebooks that formalize investment practices, implement a five-step account reconciliation process and codify credit-card reconciliation procedures.

Why it matters: The policies establish written standards for prudence, ethics, delegation of authority and oversight of investments and reconciliations. The treasurer’s presentation emphasized safety of principal, liquidity and then return as the portfolio's primary objectives.

Treasurer Mr. Pass told the board the investment policy “defines the parameters within which funds are to be managed” and that it will operate in conformance with applicable federal and state legal requirements, including the Arizona Revised Statutes cited in the policy text. The policy names three primary objectives: safety of principal, liquidity to meet operating requirements and market-rate returns consistent with the county’s risk constraints. Mr. Pass said the treasurer may delegate day-to-day portfolio management to a qualified investment advisor, subject to written procedures and conflict-of-interest rules.

On reconciliations, Mr. Pass described a new five-step process intended to ensure that bank statements, internal software records and the general ledger are matched and that exceptions are investigated and cleared before final sign-off. “Once it gets to me at the fifth step, I reconcile all of the pieces,” he said. He also said the office has created an investment log that will be available to the board on request and that credit-card and point-of-sale collections have a separate reconciliation workflow tied to daily Point & Pay reports.

Board members praised the work. “The checks and balances that have been put in place, the building of capacity within your department is very much appreciated,” one supervisor said. During discussion the treasurer also noted he planned to submit the policy for review to a professional investment officers group for feedback and confirmation of best practices.

Action taken: A supervisor moved to approve the treasurer's policies and guidebooks, a second was recorded, and the board approved the item by voice vote with the chair calling “Aye.” The meeting record shows the motion carried unanimously.

What was not changed: The new documents were presented as living policies; Mr. Pass said future adjustments will be brought back to the board for review. The board did not tie the policy adoption to any immediate change in county spending or staffing levels.