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Indian River County,Florida Notes To Financial Statements Year Ended September 30, 2009 NOTE 4 -CASH AND CASH EQUIVALENTS- Continued C. Investments - Continued Credit Risks- Continued 7. Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; 8. Repurchase agreements with a term of one year or less collateralized by direct obligations of the United States Government which have maturities of three (3) years or less and a market value 103%or more of the repurchase amount. Currently, Fund B participants are permitted to withdraw scheduled amounts as assets become liquid. Full realization of the principal value of Fund B assets is uncertain and dependent upon the collateralized securities underlying each holding and is contingent upon future market conditions. Concentration Risk The County's investment policy has established asset allocation and issuer limits to reduce concentration of credit risk in the County's investment portfolio. All investments are stated at fair value. The County's investment policy does not allow for more than 20% of the entire portfolio to be invested in any one issuer, with the exception of United States Treasury Obligations and state authorized pools. No more than 10% of the portfolio may be placed in certificates of deposit(CD) and no more than $3 million of the portfolio may be placed in certificates of deposit with any one financial institution. No more than 5% of the portfolio may be placed in any one money market fund, mutual fund, or intergovernmental investment pool. The Tax Collector does allow 25% of the portfolio to be invested in CDs and/or money market funds. See investment list and percentages at the beginning of Note 4C. Custodial Credit Risk The County's investment policy pursuant to Section 218.415 (18), Florida Statutes requires securities to be registered and shall be held with a third party custodian and all securities purchased by, and all collateral obtained by, the County shall be held in the name of the County. The securities must be held in an account separate and apart from the assets of the financial institution. As of September 30, 2009, the County's investment portfolio in U.S. Treasuries, U.S. Agencies, and all money market funds, was held by The Bank of New York/Mellon with the exception of the following: Federated U.S. Treasury Fund (Federated), the SunTrust NOW account, and the Florida Trust Day to Day Fund. Federated was held by SunTrust Capital Markets and the Florida Trust Day to Day Fund was held by UMB Bank. D. OPEB Trust Investments Funds are held in the name of the Indian River County OPEB Trust (IRCOT), an irrevocable trust, by a third party custodian. The investment is reported at fair value. The County approved a separate investment policy for the IRCOT assets on February 3, 2009 (amended on May 12, 2009), and the funds will be reinvested in accordance with that policy. 61