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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO THE FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2019 <br />NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />Accounting Estimates <br />The preparation of financial statements in conformity with accounting principles generally <br />accepted in the United States of America requires management to make estimates and <br />assumptions that affect the reported amount of assets and liabilities and disclosure of conig ent <br />assets and liabilities at the date of the financial statements and the reported amounts ofy6yee-xrues <br />and expenditures during the reporting period. Actual results could differ from those ens imates. <br />r <br />r <br />NOTE 3. DEPOSITS AND INVESTMENTS e <br />Deposits��' <br />Custodial credit risk is the risk that, in the event of the failr�-of a depository financial <br />institution, a government will not be able to recover dep nits. or will not be able to recover <br />collateral securities that are in the possession of an outsidep�rty) The Authority's deposit policy <br />for custodial credit risk requires compliance with the pro viv-ons of Texas statutes. <br />Texas statutes require that any cash balance in shall, to the extent not insured by the <br />Federal Deposit Insurance Corporation or its -sccessor, be continuously secured by a valid <br />pledge to the Authority of securities eligible -, r the laws of Texas to secure the funds of the <br />Authority, having an aggregate market valbz - including accrued interest, at all times equal to the <br />uninsured cash balance in the fund t® whir"h s ' ch securities are pledged. At the fiscal year end, <br />the carrying amount of the Authority's deposits was $3,329,295 and the bank balance was the <br />same. Of the bank balance '$2 ,0,96 was covered by federal depository insurance and the <br />balance was covered by coleral-pledged in the name of the Authority and held in a third parry <br />depository. <br />The carrying values of the deposits are included in the Governmental Funds Balance Sheet and <br />the Statement o f 1 b(Pgsition at September 30, 2019, as listed below: <br />a , <br />GENERAL FUND S 3.329295 <br />-16- <br />