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FLORIDA DEVELOPMENT FINANCE CORPORATION <br />NOTES TO FINANCIAL STATEMENTS <br />YEAR ENDED JUNE 30, 2015 <br />Note 1 - Summary of Significant Accounting Policies (continued) <br />0 Assets. Liabilities and Net Position <br />(1) Deposits and Investments <br />(a) Cash and Cash Equivalents <br />Highly liquid financial instruments with an original maturity of three months or less at the time they are <br />purchased by FDFC are considered to be cash equivalents <br />FDFC places its cash and cash equivalents on deposit with financial institutions in the United States The <br />Federal Deposit Insurance Corporation (FDIC) covers $250,000 for substantially all depository accounts From <br />time to time, FDFC may have amounts on deposit in excess of the insured limits. As of June 30, 2015, FDFC <br />had $991,923 on deposit in excess of these insured amounts Management believes the associated risk is <br />minimized by placing such assets with qualified public depositories. FDFC has not experienced any losses on <br />such accounts <br />(b) Investments <br />Florida Statute §218 415 states that units of local government electing not to adopt a written investment policy <br />may invest or reinvest any surplus public funds in their control or possession in (1) the Local Government <br />Surplus Funds Trust Fund, or any intergovernmental investment pool authorized pursuant to the Florida <br />Interlocal Cooperation Act of 1969, (2) Securities and Exchange Commission registered money market funds <br />with the highest credit quality rating from a nationally recognized rating agency. (3) interest-bearing time <br />deposits or savings accounts in qualified public depositories, and (4) direct obligations of the U S Treasury <br />(2) Fees <br />Issuance fees paid by borrowers for conduit debt obligations are recognized as revenue in the period the bonds <br />are issued, however application fees are not refundable and are typically recognized when received <br />E Use of Estimates <br />The preparation of basic financial statements in conformity with accounting principles generally accepted in the <br />United States of America requires management to make estimates and assumptions that affect the amounts of <br />assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial <br />statements and the reported amounts of revenues and expenses during the reporting period Actual results <br />could differ from those estimates <br />F Income Taxes <br />FDFC is a not-for-profit corporation and has been'determined by the Internal Revenue Service to be a 501(c)(4) <br />company exempt from taxes under Section 501(a) of the Internal Revenue Code Accordingly, no provision has <br />been made for income taxes <br />11 <br />21 <br />