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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2011 <br />NOTE 4 - CASH AND CASH EQUIVALENTS <br />The County maintains a cash and investment pool that is available for use by all funds except those <br />whose cash and investments must be segregated due to bond covenants or other legal restrictions. <br />A. Deposits <br />At September 30, 2011, the carrying amount of the primary government's deposits was $24,020,955 <br />and the bank balance was $27,567,107. The County's policy requires all deposits with financial <br />institutions to be 100% insured by federal depository insurance or by collateral provided by qualified <br />public depositories to the State Treasurer, in accordance with Chapter 280, Florida Statutes also known <br />as the Florida Security for Public Deposits Act. The Act established a Trust Fund, maintained by the <br />State Treasurer, which is a multiple financial institution pool with the ability to assess its member <br />financial institutions for collateral shortfalls if a member fails. <br />B. Accrued Interest <br />Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and <br />investment pools and then allocated to each fund based on each fund's average monthly balance. As of <br />September 30, 2011, accrued interest for the County's portfolio totaled $318,844. The remaining <br />accrued interest is reflected in utilities and road paving assessments. <br />C. Investments <br />On August 12, 2008, the County, with the exception of the Tax Collector and the Clerk of the Circuit <br />Court, updated their investment policy pursuant to Section 218.415, Florida Statutes, which established <br />permitted investments, asset allocation limits, issuer limits, credit ratings requirements and maturity <br />limits to protect the County's cash and investments. The Tax Collector adopted a formal investment <br />policy in February 2005, and revised the policy in November 2009 and August 2011. The Clerk of the <br />Circuit Court and Comptroller (Clerk) elected not to adopt a formal investment policy and selected the <br />alternative investment guidelines as provided by Florida Statutes subsection 17, 218.415. <br />•1 <br />