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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2005 NOTE 4 - DETAILED NOTES ON ALL FUNDS (Continued) A. Deposits and investments (Continued) 1. Components of Cash and Investments (Continued) Cash and investments are presented in the financial statements as follows: Statement of Net Assets - Governemnt Wide Cash and cash equivalents - Primary Government Cash and cash equivalents - Component Unit Restricted investments Statement of Fiduciary Net Assets Cash and cash equivalents - Investment Trust Fund Cash and cash equivalents - Agency Funds Total 2. Deposits $ 36,700,319 787,746 767,833 984,213 811,983 $ 40,052,094 In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking accounts and certificates of deposits. The following is considered the most significant risk associated with deposits: Custodial credit risk — In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better; revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City has no additional deposit policies addressing custodial credit risk. At year -end, the carrying amount of the City's deposits was $8,124,951 while the balance on the bank records was $8,537,272. At December 31, 2005, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City's agent in the City's name. 55