2002-05-22 WS Packet - Laserfiche WebLink

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CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS. CONTINUED Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other State or local govermnent obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $4,333,270 and the bank balance was $4,480,218. The bank balance was covered by federal depository insurance totaling $400,000. The remaining balance of $4,080,218 was covered by collateral. The City did not have sufficient collateral covering the statutory required ten percent above deposits. Investments Investments are categorized into these three categories of credit risk 1. Insured or registered, or securities held by the City or its agent in the City's name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. At year end, the City's investment balances were as follows: CateQorv 2 3 Carrying and Fair Value U.S. Government Securities Investments not subjected to risk categorization: Broker money market funds Minnesota Municipal Money Market fund $ 356676 $ $ - $ 356,676 Total Investments 6,507 1.036.737 $ 1.399 920 Cash on Hand Cash in the possession of the City consisting of petty cash totals $170. Cash and Investments Summary A reconciliation of cash and investments as shown on the Combined Balance Sheet for the City follows: Cash on hand $ 170 Carrying amount of deposits 4,333,270 Carrying amount of investments 1.399.920 Total Cash and Temporary Investments $ 5 733 360 B, Due From Other Governments A summary of amounts due from other governments as of December 31, 2001 is as follows: County General $ 62,911 Special revenue Recycling 6.498 Total $ 69 409 -15-