05 Audit for FY01-02 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial statements (Continued) September 30, 2002 III. Detailed Notes on Ail Funds and Account Groups (Continued) A. Deposits and Investments (Continued) The cash deposits held at financial institutions can be categorized according to three levels of risk. These three levels of risk are: Category 1 - Deposits which are insured or collateralized with securities held by the entity or by its agent in the entity's name. Category 2 - Deposits which are collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. Category 3 - Deposits which are not collateralized or insured. Based on these three levels of risk, the City's cash deposits are classified as follows: Category 1 - $ 200,000 Category 2 - $16,971,418 Category 3 - $ 5,003,812 Investments are categorized into three categories of credit risk: Category 1 - Insured or registered, or securities held by the entity or by its agent in the entity's name. Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the entity's name. Category 3 - Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the entity's name. At year-end, the City's investment balances, excluding $658,924 of certificates of deposit included in deposits above, were as follows: Category Carrying Fair No. 1 No. 2 NO. 3 Amount Value Federal National Mortgage Association $ 2,337,089 $ $ $ 2,337,089 $ 2,337,089 Federal Home Loan Mortgage Corporation 2,377,480 2,377,480 2,377,480 Government National Mortgage Association 1,641,341 1,641,341 1,641,341 Federal National Discount Notes 293,711 293,711 293,711 Federal Home Loan Bank 50,500 50,500 50,500 $ 6,700,121 $ $ $ 6,700,121 $ 6,700,121 23