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Indian River County, Florida <br />Tax Collector <br />Notes To Financial Statements <br />Year Ended September 30, 2011 <br />NOTE 2 - CASH AND INVESTMENTS - Continued <br />B. Investments — Continued <br />Concentration Risk - Continued <br />All funds held in Fund B are "on -behalf -of ' (OBF) accounts. These OBF accounts were established on <br />December 26, 2007 and held for the eleven taxing districts that did not have SBA accounts at the time of <br />the restructuring of SBA funds into the LGIP and Fund B. At September 30, 2011, the State Board of <br />Administration (SBA) determined a negative fair market value adjustment of 24.32% of the portfolio <br />balance was needed for the Fund B portfolio balance. At year-end, the cash balance in Fund B was <br />$102,428 with a fair market adjustment of $24,907; consequently, the net investment in Fund B is <br />reported at $77,521. <br />Interest Rate Risk <br />The Tax Collector will attempt to match investment maturities with known cash needs and anticipated <br />cash flow requirements. Investments of current operating funds shall have maturities of no longer than <br />twelve months. <br />Credit Risk <br />Florida Statutes authorize investments in certificates of deposit, savings accounts, the Local Government <br />Surplus Funds Trust Fund administered by the Florida State Board of Administration; Securities and <br />Exchange Commission registered money market funds with the highest credit quality rating from a <br />nationally recognized rating agency, and direct obligations of the U.S. Treasury. <br />Custodial Credit Risk <br />All investments are held in the name of the Tax Collector, by the Tax Collector, with the exception of <br />the Florida Trust Day to Day Fund, which was held by UMB Bank, and the LGIP which was held by <br />BNY Mellon. <br />NOTE 3 - INVENTORIES <br />Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of <br />accounting. The costs of general fund inventory are recorded as an expenditure when consumed rather <br />than when purchased. Inventory of the Tax Collector, included in the general fund, represents postage. <br />363 <br />