Laserfiche WebLink
<br />City of Paris, Texas <br />Notes to Financial Statements <br />September 30, 2005 <br /> <br />IV. Detailed Notes on All Funds (Continued) <br /> <br />A. Deposits and Investments (Continued) <br /> <br />As of September 30, 2005, the government had the following investments: <br /> <br />Investment Type <br />Government National Mortgage Corporation <br />Federal Home Loan Mortgage Corporation <br />Federal National Mortgage Corporation <br />Total Fair Value <br />Portfolio W eighted Average Maturity <br /> <br />F air Value <br />$ 154,587 <br />437,919 <br />1,621,520 <br />$ 2,214,026 <br /> <br />W eighted Average <br />Maturity (Years) <br />2.84 <br />2.90 <br />6.39 <br /> <br />5.443 <br /> <br />Interest Rate Risk. Generally the City will attempt to match its investments with anticipated cash <br />flow requirements. Unless matched to a specific cash flow, the City will not directly invest in <br />securities maturing more than 10 years from the date of purchase. <br /> <br />The basis used by the Finance Director to determine whether market yields are being achieved <br />shall be the six-month U.S. Treasury Bill and the Average Fed Funds rate. <br /> <br />Concentration of Credit Risk. The City diversifies its investments by security type and institution. <br />With the exception of obligations of the United States or its agencies and authorized pools, no <br />more than 50% of the City's total investment portfolio will be invested in a single fmancial <br />institution with the exception of its local depository. <br /> <br />Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank <br />failure, the City's deposits may not be returned to it. As of September 30, 2005, the City's bank <br />balance was not exposed to custodial credit risk. As of the same date PEDC had exposure to <br />custodial credit risk because $1,318 of the PEDC bank balance of$626,739 was uninsured. <br /> <br />Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the <br />failure of the counterparty, the City's may not be able to recover the value of its investments or <br />collateral securities that are in the possession of an outside party. As of September 30, 2005, the <br />City did not have custodial credit risk exposure. <br /> <br />B. Receivables <br /> <br />Receivables as of year-end, including the applicable allowances for uncollectible accounts, are as <br />follows: <br /> <br />38 <br />