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<br />CITY OF LA PORTE, TEXAS
<br />Notes to the Financial Statements
<br />September 30, 2008
<br />
<br />1. Summary of significant accounting policies - Continued
<br />
<br />F. Cash and Investments
<br />
<br />Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of the
<br />fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized
<br />cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills and deposits
<br />in the Texas Local Govemment Investment Pool (TexPool), the Local Government Investment Cooperative
<br />(LOGIC) and Texas Short Term Asset Reserve Program (TexStar) all of which have the general
<br />characteristics of a demand deposit account. For purpose of the statement of cash flows, Proprietary Fund
<br />types consider temporary investments with a maturity of three months or less when purchased to be cash
<br />equivalents.
<br />
<br />In accordance with Statement No. 31, the City reports all investments at fair value, except for "money
<br />market investments" and "2a7-like pools". Money market investments, which are short-term highly liquid
<br />debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs.
<br />Investment positions in external investment pools that are operated in a manner consistent with the SEC's
<br />Rule 2a7 of the Investment Company Act of 1940, such as TexPool, LOGIC and TexStar are reported using
<br />the pools' share price.
<br />
<br />G. Prepaid Expenses
<br />
<br />Prepaid balances are for payments made by the City in the current year to provide services occurring in the
<br />subsequent fiscal year, and the reserve for prepaid items has been recognized to signify that a portion of
<br />fund balance is not available for other subsequent expenditures.
<br />
<br />H. Receivables
<br />
<br />Receivables as of year-end of the government's individual major and non-major funds and internal service
<br />funds, including the applicable allowances for uncollectible accounts, are as follows:
<br />
<br />Fund Taxes Interest Other Accounts Total
<br />General $ 1,857,871 $ 17,168 $ $ 2,009,061 $3,884,100
<br />2007 C.O. 777 777
<br />Grant 1,049 1,049
<br />Capital Projects 7,628 7,628
<br />Nonmajor governmental 543,016 14,086 557,102
<br />Utility 4,166 1,245,092 1,249,258
<br />La Porte Area
<br />Water Authority 2,439 299,443 301,882
<br />Nonmajor enterprise 579 27,248 27,827
<br />Intemal service funds 8,420 198,814 207,234
<br />Gross Receivables 2,400,887 56,312 198,814 3,580,844 6,236,857
<br />Less: allowance for
<br />uncollectibles (733,446) (524,270) (1,257,716)
<br />Net total receivables $1,667,441 $ 56,312 $198,814 $ 3,056,574 $4,979,141
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