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1 <br /> Indian River County, Florida <br /> Notes To Financial Statements <br /> Year Ended September 30, 2012 <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 S <br /> State Board of Administration. I <br /> At September 30, 2012, the County had $602,869 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 f <br /> B did not meet the requirements of a SEC 2a7-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 negative adjustment of 5.1% of <br /> the portfolio balance, or $30,765. Consequently, the net investment in Fund B is reported at $572,104. <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. All <br /> constitutional officers with the exception of the Tax Collector follow this policy. The Tax Collector's <br /> policy is to limit maturities to 24 months or less and maintain 95% of the portfolio in readily available <br /> funds. <br /> Credit Risks <br /> Florida Statutes Section 218.415 and the County's investment policy limit investments to the following: <br /> 1. Direct obligations of the United States Treasury; <br /> 2. Florida PRIME (formerly known as Fund A) and Fund B Surplus Funds Trust Fund(Fund B); <br /> 3. Florida Local Government Investment Trust Funds; <br /> 4. Interest-bearing time deposits or savings in qualified public depositories as defined in Section <br /> 280.02 Florida Statutes; <br /> 5. Federal agencies and instrumentalities; <br /> 6. Securities of, or other interests in, any open-end or closed-end management-type investment <br /> company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. <br /> 80a-1 et seq., as amended from time to time, provided that the portfolio of such investment <br /> company or investment trust is limited to obligations of the United States Government or any <br /> agency or instrumentality thereof and to repurchase agreements fully collateralized by such <br /> United States Government obligations, and provided that such investment company or investment <br /> trust takes delivery of such collateral either directly or through an authorized custodian; <br /> 62 <br />