Regular Fire Board Meeting - June 24, 2020

Financial institutions accepting governmental monies in the State of Arizona are required to collateralize at 102% all government deposits which exceed the FDIC insurance limit. The current FDIC limit is $250,000 for the total of all interest bearing accounts and $250,000 for the total of all demand deposit accounts . The collateralization is required to be separately identifiable securities and be held by a third party financial institution or trust agency. ARS (Title 35) requires this to be monitored by the State Treasurer’s Office. The District may also place monies in investments which are subject to the risks identified below.

The following is a summary of the Cash and Cash Equivalents held by financial institutions at June 30, 2019:

DEPOSITORY ACCOUNTS:

General Fund

Debt Service Fund

Total

Insured Deposits (FDIC)

$ 2,408 $ 0 $ 2,408

County Treasurer Investment Pool 0

9,428 9,428

Total Deposits

2,408

9,428

11,836

In Transit Items

400 0 400

Total Cash & Cash Equivalents

$ 2,808 $ 9,428 $ 12,236

GASB Statement No. 72 establishes standards for measuring fair value and applying fair value to certain investments, establishes a three-tier hierarchy of inputs to valuation techniques used to measure fair value and enhances disclosures related to fair value hierarchy and valuation techniques.

These fair value measurement reporting levels are:

Level 1 - Quoted prices in active markets for identical assets. Level 2 - Significant other observable inputs. Level 3 - Significant unobservable inputs.

Investments by fair value level:

Level Two

External investment pools measured at fair value:

County Treasurer Investment Pool

$ 9,428

Total

$ 9,428

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