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Draft 2-4-2014 <br />LA PORTE AREA WATER AUTHORITY <br />EXHIBIT C-1 <br />NOTES TO THE FINANCIAL STATEMENTS (continued) <br />Note 4 - Temporary Investments (continued) <br />Concentration of Credit Risk <br />The Authority’s investment policy places no limit on the amount the government may invest in any one <br />issuer. At September 30, 2013, the Authority’s investment portfolio consisted of the following investments: <br />Percentage of <br />Investment TypeTotal Portfolio <br />Public funds investment pools66% <br />US Agency securities34% <br />100% <br />Credit Risk <br />At year end balances in TexPool, a privately managed public funds investment pool was rated AAAm by <br />Standard & Poor’s and balances in LOGIC, a privately managed public funds investment pool was rated <br />AAAm by Standard & Poor’s. <br />Federal Home Loan Mortgage Corporation notes, Federal Home Loan Banks bonds, Farmer Mac and <br />Federal Farm Credit Bank notes were rated AA+ by Standard & Poor’s. <br />All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the <br />Authority’s investment policy. <br />Note 5 - Capital Assets <br />An analysis of changes in physical facilities for the year ended September 30, 2013 follows: <br />BeginningRetirements &Ending <br />BalanceAdditionsAdjustmentsBalance <br />Capital assets being depreciated <br />Water production and distribution system$ 15,435,810$ $ 15,435,810$ <br />Less accumulated depreciation for: <br />Water production and distribution system (8,160,985) (464,999) (8,625,984) <br />Total capital assets being depreciated, net 7,274,825 (464,999) 6,809,826 <br />Investment in capital assets from: <br />Contributions by participants$ 7,274,825$ (464,999)$ 6,809,826$ <br />*Depreciation expense of $464,999 charged to water services function/program. <br />16 <br /> <br />