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LA PORTE REDEVELOPMENT AUTHORITY <br />NOTES TO THE FINANCIAL STATEMENTS <br />SEPTEMBER 30, 2015 <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.c ntingent <br />assets and liabilities at the date of the financial statements and the reported amounts`of revenues <br />and expenditures during the reporting period. Actual results could differ from those;,esmates. <br />NOTE 3. DEPOSITS AND INVESTMENTS <br />Deposits <br />Custodial credit risk is the risk that, in the event of the failure ,of a depository financial <br />institution, a government will not be able to recover deposits, or will not be able to recover <br />collateral securities that are in the possession of an outside�par@ The Authority's deposit policy <br />for custodial credit risk requires compliance with the provisions of Texas statutes. <br />Texas statutes require that any cash balance in�ai y,Jund shall, to the extent not insured by the <br />Federal Deposit Insurance Corporation or ;its successor, be continuously secured by a valid <br />pledge to the Authority of securities eligibleurnder the laws of Texas to secure the funds of the <br />Authority, having an aggregate market; value, including accrued interest, at all times equal to the <br />uninsured cash balance in the fund. -to whicl ,s ch securities are pledged. At the fiscal year end, <br />, ::, <br />the carrying amount of the Authorii�.:';s :deposits was $543,282 and the bank balance was the <br />same. Of the bank balance, $2500.0,0 was covered by federal depository insurance and the <br />balance was covered by collateral pledged in the name of the Authority and held in a third party <br />depository. <br />The carrying values of .the deposits are included in the Governmental Funds Balance Sheet and <br />the Statement oet Position <br />f Nat September 30, 2015, as listed below: <br />GENERAL FUND 543,282 <br />i <br />