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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2009 NOTE 4 -CASH AND CASH EQUIVALENTS The County maintains a cash an d investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. A. Deposits At September 30, 2009, the carrying amount of the primary government's deposits was $29,648,177 and the bank balance was $34,575,522. The County's policy requires all deposits with financial institutions to be 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer, in accordance with Chapter 280, Florida Statutes also known as the Florida Security for Public Deposit Act. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. The carrying amount of the component unit's deposits totaled $690,033 and the bank balance was $693,298. B. Accrued Interest Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and investment pools and then allocated to each fund based on each fund's average monthly balance. As of September 30, 2009, accrued interest for the County's portfolio totaled $1,261,921. The remaining accrued interest is reflected in utilities and road paving assessments. C. Investments On August 12, 2008, the County and the constitutional officers,with the exception of the Tax Collector, updated their investment policy pursuant to Section 218.415, Florida Statutes, which established permitted investments, asset allocation limits, issuer limits, credit ratings requirements and maturity limits to protect the County's cash and investments. The Tax Collector adopted his formal policy in February 2005. 58