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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2013 <br />NOTE 4 - CASH AND CASH EQUIVALENTS - Continued <br />C. Investments - Continued <br />Florida PRIME (formerly known as the Local Government Surplus Funds Trust Investment (SBA) <br />Fund A) is a money market fund classified as a "2a-7 like fund" using the SEC investment requirements <br />for 2a-7 funds. The fund was established by Florida Statute 218.405 and is administered by the Florida <br />State Board of Administration. <br />At September 30, 2013, the County had $275,993 invested in Fund B Surplus Funds Trust Fund (Fund <br />B), a fluctuating net asset value pool. The State Board of Administration (SBA) determined that Fund <br />B did not meet the requirements of a SEC 2a-7 like fund; therefore, a fair value factor (total net asset <br />value of Fund B divided by total participant balances) was provided for reporting the value of the <br />County's participation in Fund B at fiscal year-end. This resulted in a positive adjustment of 13.3% of <br />the portfolio balance, or $36,603. Consequently, the net investment in Fund B is reported at $312,596. <br />The Florida Local Government Investment Trust Fund is a pool of various securities with maturities of <br />less than five years. The fund was established by Florida Statute 163.01, is administered by the Florida <br />Association of Court Clerks, and is marked to market daily. <br />Interest Rate Risk <br />The County's investment policy limits interest rate risk by attempting to match investment maturities <br />with known cash needs and anticipated cash flow requirements. All investments must have stated <br />maturities of ten (10) years or less and no more than 25% of the portfolio shall be invested in <br />instruments with stated final maturities greater than five (5) years. The portfolio shall have securities <br />with varying maturity and at least 10% of the portfolio shall be invested in readily available funds. <br />All constitutional officers with the exception of the Tax Collector and Clerk follow this policy. The Tax <br />Collector's policy is to limit maturities to 24 months or less. The Clerk's policy is to limit maturities to <br />three years or less and maintain at least 50% of the portfolio in readily available funds. <br />64 <br />