C153316 Financials 2009/2010

• Contract/PO #: C153316
• Contractor Name: Winter Park Water and Sanitation District
• Contract Type: Loan
• Loan Projects - Doc Type: Report

Winter Park Water and Sanitation District
' NOTES TO FINANCIAL STATEMENTS
(continued)
' December 31, 2010 and 2009
' Deposits with financial institutions
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local
' government deposit cash in eligible public depositories. Eligibility is determined by
state regulators. Amounts on deposit in excess of federal insurance levels must be
collateralized. As of December 31, 2010 and 2009, the federal insurance limit was
' $250,000. The eligible collateral is determined by the PDPA. PDPA allows the
institution to create a single collateral pool for all public funds. The pool for all the
uninsured public deposits as a group is to be maintained by another institution or held
' in trust. The market value of the collateral must be at least equal to 102% of the
aggregate uninsured deposits. The State Commissioners for banks and financial
services are required by statute to monitor the naming of eligible depositories and
reporting of the uninsured deposits and assets maintained in the collateral pools.
' Custodial credit risk - deposits
' Custodial credit risk is the risk that in the event of a bank failure, the District's deposits
may not be returned to it. The District has not adopted a deposit policy for custodial
credit risk. As of December 31, 2010 and 2009, the District's bank balances and
carrying balances were insured or collateralized as follows:
2010 2009
' Bank balances:
Federally insured $ 4,617,608 $ 3,380,695
Collateralized 854,517 3,114,599
' Total bank balances $ 5,472,125 $ 6,495,294
Carrying balances:
Federally insured $ 4,617,608 $ 3,380,695
' Collateralized 812,653 3,112,486
Total carrying balances $ 5,430,261 $ 6,493,181
' Investments
The District's investment policy restricts investments to only those permitted by state
' statutes. Additionally, the District's policy is to hold investments until maturity.
The District primarily limits its investments to certain money market funds, federal
' government and agency securities, and local government investments pools, which
are believed to have minimal credit risk, minimal interest rate risk and no foreign
currency risk. Additionally, the District is not subject to concentration risk disclosure
' requirements or subject to custodial credit risk for investments that are in the
possession of another party.
' 15