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CITY OF LA PORTE, TEXAS Exhibit A-10 <br />NOTES TO FINANCIAL STATEMENTS (continued) <br /> <br /> <br />Note 2 Î Deposits and Investments (continued) <br /> <br />Cash, Cash Equivalents and Investments <br /> <br />Cash and cash equivalents are considered to be cash on hand, demand deposits with banks and other financial <br />institutions, and any other kind of account that has the general characteristics of demand deposits where funds <br />may be added or withdrawn at any time without penalty or prior notice. Cash equivalents are defined as liquid <br />investments that are both readily convertible to known amounts of cash and so near their maturity they present <br />insignificant risk or changes in value because of changes in interest rates. This includes balances in privately <br />managed public funds investment pools (ÐTexPoolÑ ÐTexas CLASSÑ, ÐTexSTARÑ and ÐLOGICÑ). Only <br />investments with original maturities of three months or less qualify under this definition. <br /> <br />The CityÓs local government investment pools are recorded at amortized costs as permitted by GASB Statement <br />No. 79, Certain Investment Pools and Pool Participants. <br /> <br />Investments consist of United States (U.S.) Government and Agency Securities. The City reports all investments <br />at fair value based on quoted market prices at year end date. <br /> <br />The City reports all investments, except external investment pools, at fair value, a level 2 valuation . The City <br />categorizes fair value measurements of its investments based on the hierarchy established by generally accepted <br />accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to <br />measure an assetÓs fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs <br />are significant other observable inputs; Level 3 inputs are significant unobservable inputs. <br /> <br />The following schedule shows the CityÓs recorded cash and equivalents at year-end: <br /> <br />Internal <br />Governmental Service Enterprise <br />FundFundsFundsFundsTotal <br />Cash deposits25,590,197$ 276,160$ 1,208,622$ 27,074,979$ <br />Investment pools90,629,69511,301,66114,473,108116,404,464 <br />Total cash and equivalents116,219,892$ $ 11,577,821$ 15,681,730$ 143,479,443 <br /> <br /> <br />Draft 3-12-21 <br /> 47 Fiscal Year 2020 Annual Report <br /> <br />