C150120 Financials 2011 - Laserfiche WebLink

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MANCOS WATER CONSERVANCY DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS December 31, 2011 I (Note 2 continued) If both restricted and unrestricted amounts of fund balance are available for use when expenditure is incurred, it is District policy to use restricted amounts first. Unrestricted fund balance will be used in the following order: committed, assigned and unassigned. Use of Estimates ' The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. Deposits The District's deposit policies are governed by Colorado statute. The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories; state regulators determine eligibility. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the financial institution to create a single collateral pool for all public funds. The pool is to be maintained by another financial institution or held in trust for all uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the 1 aggregate uninsured deposits. Custodial Credit Risk — Custodial credit risk is the risk that in the event of bank failure, the District's deposits may not be returned to it. The District's policy requires all deposits to be held in PDPA approved financial institutions. At December 31, 2011, $358,449 of the District's deposits were exposed to custodial credit risk. Deposits exposed to credit risk are collateralized ' with securities held by the pledging financial institution through PDPA. The District does not have an investment policy as of December 31, 2011. ' 4. Cash Flow Statement ' For purposes of the cash flow statement in the Water Activity Enterprise Fund, cash and cash equivalents are shown below: Water Activity Enterprise Fund Unrestricted cash $67,714 ' Restricted cash 9,234 Less: Certificates of deposit with maturities of more than 3 months (60,533) $16,415 12