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7.1.G. - Page 71
<br /> Notes to the Basic Financial Statements
<br /> For the year ended June 30, 2013
<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, 2013:
<br /> Fiduciary Fund
<br /> Financial
<br /> Government -wide Statement of Net Position Statements
<br /> Fiduciary Funds
<br /> Governmental Business -Type Statement of
<br /> Activities Activities Total Net Position Total
<br /> $ $ $ $ $
<br /> Cash and Investment 105,650,110 53,306,199 158,956,309 158,956,309
<br /> Restricted Cash and
<br /> Investments 6,545,205 10,115,923 16,661,128 11,399,585 28,060,713
<br /> Total Cash and Investments 187,017,022
<br /> 8. 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, 2013, 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
<br /> $ $ $
<br /> Demand Accounts at Banks 1,225,768 1,225,768
<br /> Certificates of Deposit 1,095,000 1,095,000
<br /> Petty Cash 11,400 11,400
<br /> County of San Mateo Investment Pool 37,520,364 37,520,364
<br /> California Local Agency Investment Fund 56,271,177 56,271,177
<br /> U.S. Agencies, Securities, and Corporate Notes:
<br /> Federal Home Loan Bank 2,983,800 2,983,800
<br /> Federal National Mortgage Association 23,964,540 2,990,130 20,974,410
<br /> Federal Home Loan Mortgage Corporation 8,991,180 8,991,180
<br /> Federal Farm Credit 26,893,080 2,991,870 23,901,210
<br /> TOTAL 158,956,309 102,105,709 56,850,600
<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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