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Indian River County, Florida
<br /> Notes To Financial Statements
<br /> Year Ended September 30, 2003
<br /> NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
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<br /> 3 . Investments
<br /> Florida Statutes , the County ' s Investment Policy, and various bond covenants authorize investments in certifi -
<br /> cates of deposit, money market accounts , savings accounts , repurchase agreements , the Local Government
<br /> Surplus Funds Trust Fund administered by the Florida State Board of Administration, Florida Local Govern- ,
<br /> ment Investment Trust Fund, obligations of the U . S . Government, obligations of government agencies uncon-
<br /> ditionally guaranteed by the U . S . Government, obligations of the Federal Farm Credit Banks , obligations of
<br /> the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation partici -
<br /> pation certificates , obligations of the Federal Home Loan Bank, obligations of the Government National Mort-
<br /> gage Association, obligations of the Federal National Mortgage Association and securities of any management
<br /> type investment company or investment trust registered under the Investment Company Act of 1940 , 15 U . S . C .
<br /> ss . 80a- 1 et seq . , provided the portfolio is limited to U . S . Government obligations and to repurchase agree -
<br /> ments fully collateralized by U . S . Government obligations . The County invested in only these types of instru-
<br /> ments during the fiscal year.
<br /> In accordance with generally accepted accounting principles , the County' s investments are categorized in the
<br /> following schedule to give an indication of the level of custodial credit risk assumed at year end : Category I
<br /> includes investments that are insured or registered, or for which the securities are held by the County or its
<br /> agent in the County 's name . Investments in the Local Government Surplus Funds Trust Fund, the Florida Local Gov-
<br /> ernment Investment Trust Fund, money market accounts and guaranteed investment contract are not categorized since
<br /> the investments are not evidenced by securities that exist in physical or book entry form .
<br /> The Local Government Surplus Funds Trust Fund Investment Pool (Pool) is a "2a- 7" like pool, and therefore,
<br /> the County ' s account balance is used for fair value reporting . All units of local government in Florida are
<br /> eligible , but not required, to participate in the Pool . In addition to a variety of fixed coupon investments, the
<br /> Pool also purchases floating rate and adjustable rate securities . These floating rate and adjustable rate securi -
<br /> ties are used to hedge against interest rate risk and provide diversification to the portfolio . The floating rate and
<br /> adjustable rate securities all float relative to prevailing short-term interest rates such as LIBOR, Prime , or Fed
<br /> Funds rates . On September 30, 2003 , the Pool held floating rate securities , either directly or as invested securities
<br /> lending collateral, at a fair value of$2,236,973 ,000. The Pool also participates insecurities lending programs . As of
<br /> September 30 , 2003 , the collateral held by the Pool , $5 ,207, 037, 936 in cash and $4,095 ,228 in U . S . Government
<br /> securities, exceeded the fair value of the securities underlying the agreements . As of September 30, 2003 , the Pool had
<br /> 794 local government participants with total investments of approximately $ 16. 05 billion. The portfolio 's average
<br /> maturity was 76 days .
<br /> The Florida Local Government Investment Trust Fund (Trust) is a professionally managed fund available only
<br /> to public entities in Florida. The investment policy of the Trust restricts investments to direct obligations of or
<br /> securities fully guaranteed by the United States ; obligations of certain federal agencies, including collateral-
<br /> ized mortgage obligations ; repurchase agreements ; corporate bonds ; and commercial paper. As of September 30,
<br /> 2003 , the Trust had investments, at fair value, of approximately $ 543 .2 million. Of the total investments in the Trust,
<br /> 9 . 86% was invested in asset backed securities and 9 . 08 % was invested in adjustable rate mortgages .
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