A professional certification provides a degree of confidence that practitioners are adequately trained, educated and experienced to be prepared for financial challenges in the real world. Education, experience and ethics requirements serve as a standard for the profession. Those who have received the Certified California Municipal Treasurer have subjected themselves to review of their educational and experience. Whereas in the private sector, revenue generation and collection, banking and debtmanagement are important to management and stockholders, in the public sector there is an element of safeguarding the public trust that is added.
CCMT Requirements
CCMT candidates must meet or exceed requirements in two areas; 50% educational standards and 50% experience and training requirements. Certification is also designed as a guide for municipal treasurers to become valued administrators in local government. Education Requirement: College or University degrees at Bachelor level in Public Administration, Accounting, Finance or related field or satisfactory completion of a course of education approved by CMTA – ½ point per instruction hour. Professional Experience and Training Requirement equivalent to employment as a Municipal Treasurer for 12.5 years, financial administrative position in local government or in corporate or private business for 25 years or a combination of several factors including board service on state and national treasury boards. Current active participation in CMTA is required. CCMTs must be recertified every four years. Recertification is accomplished by a combination of treasury experience and a minimum of 40 hours of continuing education.
According to Benjamin Finkelstein, “On Main Street, political risk entails all the bad things that can happen to elected officials and their appointees when they take risks – even reasonable risks – with taxpayer money and come up short.” The municipal treasurer does not have the public’s permission to put public funds principal at risk, no matter how great the potential yield. Securities options, therefore, are limited by statute to the safest portion of the investment continuum. Public Treasury statutes mandate a priority of safety, liquidity and yield. Since there is an inverse relationship between risk and rate of return, the potential return is limited by the risk that public funds are permitted to take.
The objective of municipal investments is to enhance the economic status of a given agency consistent with the prudent protection of the agency’s investments. Agencies are required to create a publicly reviewed investment policy, prepared in conformance with all pertinent existing laws of the State of California including California Government Code Sections 53600, et seq. This section of California GovernmentCode defines permitted and prohibited investments. California public treasurers must abide within the limits of this code.