County Treasury Wins Seal of National Group

The county’s revamped treasurer’s office has received a certification award from the Municipal Treasurers’ Assn. following the group’s review of county investment policies and procedures.

Orange County became the 143rd government agency to receive certification, which is determined by a panel of financial experts who examine more than a dozen criteria including liquidity, safety, internal controls and portfolio diversification.

The panel, a national organization based in Washington, also reviewed ethics and conflict-of-interest rules.

“This policy covered all the bases,” said Rod Rich, chairman of the association’s certification committee.

County Treasurer-Tax Collector John M.W. Moorlach said the award highlights the many reforms the county has imposed since its Dec. 6, 1994, bankruptcy filing, which stemmed from a $1.64-billion loss to an investment pool.

The losses were blamed on risky investment policies of Moorlach’s predecessor, Robert L. Citron.

The Municipal Treasurers’ Assn. never certified Citron’s investment policies, officials said, even though Citron was honored as an “outstanding public official” by the Orange County chapter of the American Society of Public Accountants.

In the last 18 months, the county has created two treasury watchdog committees, required frequent audits and adopted conservative investment guidelines that ban exotic investments.

“We now have a completely different shop,” Moorlach said. “This has really been a team effort.”

Board of Supervisors Chairman Roger R. Stanton added, “We learned the lesson that all municipalities have to learn, that you need backup systems and oversight systems.”