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DRAFT <br />IV. TEMPORARY INVESTMENTS <br />Temporary investments represent the Authority's equity interest in the City's investment pool. At <br />year end a portion of the Authority's cash and temporary investments were restricted as follows: <br />The carrying amount for temporary investments, at September 30, 2015, was $1,568,207, which is <br />fair value. This represents 8.03% of the City's total portfolio. <br />Pooled investments with the City consist of obligations of the United States and its agencies and <br />investment pools in accordance with state statutes and the City's investment policies. Securities are <br />registered and held by their agent in the City's name. Interest earnings are allocated on a pro-rata <br />basis. The investment pool is not registered with the SEC or subject to any regulatory oversight. <br />The fair value of the position in the pool is the same as the value of pool shares. The City had <br />adopted GASB Statement No. 31, which establishes accounting and reporting standards for all of <br />the City's investments. In accordance with Statement No. 31, the City reports all investments at <br />fair value, except for "money market investments" and "2a7-like pools." Money market <br />investments, which are short-term highly liquid debt instruments that may include U.S. Treasury <br />and agency obligations, are reported at amortized costs. Investment positions in external <br />investment pools that are operated in a manner consistent with the SEC's Rule 2a7 of the <br />Investment Company Act of 1940, such as TexPool and LOGIC, are reported using the pool's <br />share price. <br />Interest Rate Risk <br />The Authority's investment policy specifies that the maximum stated maturity, from the date of <br />purchase for any individual investment may not exceed 5 years and the maximum dollar -weighted <br />overage maturity for the pooled fund group may not exceed 2 years. At year end, the Authority's <br />dollar -weighted average maturity of the investment portfolio was as follows: <br />Weighted Average <br />Investment Type Maturity (months) <br />Public funds investment pools 1.6 <br />Federal Home Loan Mortgage Corporation (FHLMC) 30.54 <br />Federal Farm Credit Bank (FFCB) 26.3 <br />Federal Home Loan Bank (FHLB) 27.8 <br />Portfolio Weighted Average Maturity 21.6 <br />13 <br />