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City of Redwood City 6.1.F. - Page 69
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2012
<br /> NOTE 2—CASH AND INVESTMENTS�CONTINUED�
<br /> The following is a summary of pooled cash and investments, including cash and investments with fiscal
<br /> agent at June 30, 2012:
<br /> Financial
<br /> Government-wide Statement of Net Assets Statements
<br /> Fiduciary Funds
<br /> Governmental Business-Type Statement of
<br /> Activities Activities Total Net Assets Total
<br /> $ $ $ $ $
<br /> Cash and Investment 101,717,752 42,737,143 144,454,895 - 144,454,895
<br /> Restricted Cash and
<br /> Investments 7,580,915 17,352,155 24,933,070 14,186,842 39,119,912
<br /> Total Cash and Investments 183,574,807
<br /> e. Risk Disclosures
<br /> Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest
<br /> rates, the City's investment policy provides that final maturities of securities cannot exceed three years.
<br /> Specific maturities of investments depend on liquidity needs.
<br /> As of June 30, 2012, the City had the following cash and investments available for operations:
<br /> Investment Maturities(in years)
<br /> Fair Value 1-2 Years 2-3 Years 3-4 Years
<br /> $ $ $ $
<br /> Demand Accounts at Banks 921,247 921,247
<br /> Certificates of Deposit 1,095,000 1,095,000
<br /> Petty Cash 11,453 11,453
<br /> County of San Mateo Investment Pool 13,585,884 13,585,884
<br /> California Local Agency Investment Fund 47,725,571 47,725,571
<br /> U.S.Agencies,Securities,and Corporate Notes:
<br /> Federal Home Loan Bank 6,000,990 3,000,930 3,000,060
<br /> Federal National Mortgage Association 45,075,360 3,027,060 18,031,080 24,017,220
<br /> Federal Home Loan Mortgage Corporation 15,016,950 3,001,650 12,015,300
<br /> Federal Farm Credit 15,022,440 3,004,200 12,018,240
<br /> TOTAL 144,454,895 66,366,215 27,037,860 51,050,820
<br /> Credit Risk—Defined as the risk of loss of value of an investment due to a downgrade of its rating or the
<br /> failure or impairment of its issuer. Credit Risk shall be mitigated by investing in investment grade
<br /> securities and by diversifying the investment portfolio so that failure of any one issue does not unduly
<br /> harm the City's capital base and cash flow. In order to limit loss exposure due to Credit Risk, the
<br /> investment policy limits purchases of commercial paper investments to those rated A-1 by Standard and
<br /> Poor's or P-1 by Moody's Investor's Service, and corporate bonds to those rated A or better by Standard
<br /> and Poor's or Moody's Investor's Service.
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