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Indian River Memorial Hospital , Inc . and Subsidiaries Notes to Consolidated Financial Statements For the Years Ended September 30 , 2002 and 2m1 The trust indentures for the Series 1985 , 1988 , 1989 and 1990 Bonds require the establishment and maintenance of a construction account and a debt service reserve fund.- These arrangements require the Trustee to control the expenditure of bond proceeds and to maintain a debt service reserve fund. These funds are invested primarily in U.S . Treasury notes, bonds and accrued interest receivable. Investments are carried at fair value in the accompanying consolidated financial statements. Realized earnings on the investments for the debt service reserve fund are classified as other revenue. In 1990, the Hospital established an irrevocable bank-administered trust to fund the self- ' insured portion of the professional liability program. Under the terms of the trust agreement, these funds are to be. utilized for the payment of professional liability claims and related - expenses and-the cost of administering the trust These funds are primarily iirvested in common stocks, U. S . Government Agency obligations, foreign obligations, corporate obligations and cash and cash equivalents. Realized earnings on these investments are ( classified as other revenue. In 1993 , the Hospital established an account to fund liabilities associated with workers' 4 compensation deductibles and related expenses . These funds are invested in bank certificates of deposit. Earnings on these investments are classified as investment income. During fiscal year 2002, the Hospital entered into a letter of credit to fund workers' -compensation and related expenses. - Assets restricted by donors for property and equipment.additions include cash and -cash - ' equivalents, pledges receivable, common stocks, U. S . Government Agencyobligations and corporate obligations . The pledges receivable represent the estimated net realizable value of amounts pledged to the Foundation. Property and Equipment Property and equipment including betterments of existing facilities are recorded at cost. Maintenance, repairs and minor renewals are charged to expense as incurred. Donated property and equipment are recorded at fair market value at the time of the donation. Depreciation is provided using the straight-line method over the following estimated useful lives, which are m agreement with American Hospital Association guidelines : Years Land improvements 10-20 Buildings 540 Fixed equipment 8-20 Major movable equipment 5 - 15 Minor equipment 5 40 -