Laserfiche WebLink
CITY OF SUNNY ISLES BEACH, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS <br />FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 <br />NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) <br />CONCENTRATION CREDIT RISK (CONTINUED) <br />GASB Statement No. 40, Deposit and Investment Risk Disclosures ("GASB 40"), requires <br />disclosure when the investment percent is 5% or more in any one issuer. Given the City's <br />restrictions; the following concentrations are not viewed to be an additional risk to the City: <br />Issuer <br />Investment Issuer Fair Value Percentage <br />Certificates of deposit: <br />US Century Bank <br />$ 2,044,626 <br />4.32% <br />First Horizon bank <br />3,050,548 <br />6.45% <br />U.S. Government Agencies: <br />Federal Home Loan Bank <br />17,871,967 <br />37.78% <br />Federal Home Loan Mortgage Corp <br />10,933,674 <br />23.11% <br />Federal Agricultural Mortgage Corp <br />1,939,687 <br />4.10% <br />Federal Farm Credit Bank <br />11,461,939 <br />24.23% <br />Total <br />$ 47,302,441 <br />100.00% <br />CUSTODIAL CREDIT RISK <br />GASB 40 requires governments to disclose deposits and investments exposed to custodial <br />credit risk. The custodial credit risk for investments is the risk that, in the event of the <br />failure of the counterparty to a transaction, a government may not be able to recover the <br />value of investment or collateral securities that are in the possession of an outside party. <br />The City's investment policy requires all securities, with the exception of certificates of <br />deposit, to be held with a third -party custodian; and all securities purchased <br />by, and all collateral obtained by the City should be properly designated as an asset of the <br />City. The securities must be held in an account separate and apart from the assets of the <br />financial institution. Certificates of deposit issued by a local bank or savings and loan <br />association may be held in safekeeping at that institution. <br />Rol <br />