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LA PORTE AREA WATER AUTHORITY EXHIBIT C-I <br />NOTES TO THE FINANCIAL STATEMENTS (continued) <br />Note 4 - Temporary Investments <br />Temporary investments represent the Authority's equity interest in the City's investment pool. At year end a <br />portion of the Authority's cash and temporary investments were restricted as follow: <br />The carrying amount for temporary investments, at September 30, 2014, was $1,692,952, which is fair <br />value. This represents 7.72% of the City's total portfolio. <br />Pooled investments with the City consist of obligations of the United States and its agencies and investment <br />pools in accordance with state statutes and the City's investment policies. Securities are registered and held <br />by their agent in the City's name. Interest earnings are allocated on a pro-rata basis. The investment pool is <br />not registered with the SEC or subject to any regulatory oversight. The fair value of the position in the pool <br />is the same as the value of pool shares. The City has adopted GASB Statement No. 31, which establishes <br />accounting and reporting standards for all of the City's investments. In accordance with Statement No. 31, <br />the City reports all investments at fair value, except for "money market investments" and "2a7-like pools". <br />Money market investments, which are short-term highly liquid debt instruments that may include U.S. <br />Treasury 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 Investment <br />Company Act of 1940, such as TexPool and LOGIC, are reported using the pools' share price. <br />Interest Rafe Mslc <br />The Authority's investment policy specifies that the maximum stated maturity, from the date of purchase for <br />any individual investment may not exceed 5 years and the maximum dollar -weighted average maturity for <br />the pooled fund group may not exceed 2 years. At year end, the Authority's dollar -weighted average <br />maturity of the investment portfolio was as follows: <br />Investment Type <br />Public funds investment pools <br />Federal Home Loan Mortgage Corporation (FHLMC) <br />Federal National Mortgage Association (FNMA) <br />Federal Farm Credit Bank (FFCB) <br />Farmer Mac(FAMCA) <br />Federal Home Loan Bank (FHLB) <br />Portfolio Weighted Average Maturity <br />Weighted Average <br />Maturity (months) <br />1.7 <br />28.3 <br />19.7 <br />18.0 <br />1.1 <br />29.6 <br />14.3 <br />15 <br />