Laserfiche WebLink
LA PORTE AREA WATER AUTHORITY EXHIBIT B-4 <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, 2012, the Authority's investment portfolio consisted of the following investments: <br />Investment Type <br />LOGIC <br />Texpool <br />Certificates of Deposit <br />Federal Home Loan Mortgage Corp (FHLMC) <br />Federal Home Loan Bank (FHLB) <br />Federal Farm Credit Bank (FFCB) <br />Credit Risk <br />Percentage of <br />Total Portfolio <br />20% <br />52% <br />5% <br />3% <br />5% <br />15% <br />100% <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 and Federal Farm Credit <br />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, 2012 follows: <br />Capital assets being depreciated <br />Water production and distribution system <br />Less accumulated depreciation for: <br />Water production and distribution system <br />Total capital assets being depreciated, net <br />Investment in capital assets from: <br />Contributions by participants <br />Beginning <br />Balance Additions <br />15,435,810 <br />(7,698,047) (462,938) <br />7,737,763 (462,938) <br />Retirements & Ending <br />Adjustments Balance <br />15,435,810 <br />(8,160,985) <br />7,274,825 <br />$ 7,737,763 $ (462,938) $ $ 7,274,825 <br />*Depreciation expense of $462,938 charged to water services function/program. <br />16 <br />