Distrito Escolar del - Osceola County School District

Cash deposits are held by banks qualified as public depositories under Florida law. All deposits are
insured by Federal depository insurance, up to specified limits, or collateralized with securities held in
Florida's multiple financial institution collateral pool as required by Chapter 280, Florida Statutes.
Investments consist of amounts placed in SBA Debt Service accounts for investment of debt service
moneys, and amounts placed with the SBA for participation in Florida PRIME and Fund B Surplus
Funds Trust Fund (Fund B) investment pools created by Sections 218.405 and 218.417, Florida
Statutes, and those made locally. The investment pools operate under investment guidelines
established by Section 215.47, Florida Statutes.
The District’s investments in Florida PRIME, which SBA indicates is a Securities and Exchange
Commission Rule 2a7-like external investment pool, as of June 30, 2012, are similar to money market
funds in which shares are owned in the fund rather than the underlying investments. These
investments are reported at fair value, which is amortized cost.
The District’s investments in Fund B are accounted for as a fluctuating net asset value pool, with a
fair value factor of 0.83481105 at June 30, 2012. Fund B is not subject to participant withdrawal
requests. Distributions from Fund B, as determined by SBA, are effected by transferring eligible cash
or securities to Florida PRIME, consistent with the pro rata allocation of pool shareholders of record
at the creation date of Fund B. One hundred percent of such distributions from Fund B are
available as liquid balance within Florida PRIME.
Investments made locally consist of money market funds and nonnegotiable certificates of deposit
and are reported at fair value. Types and amounts of investments held at fiscal year-end are
described in a subsequent note on investments.
‣ Inventories
Inventories consist of expendable supplies held for consumption in the course of District operations.
Inventories held at the maintenance department, central warehouse and for the District’s food
service program are stated at cost valued on a weighted-average basis, except that United States
Department of Agriculture surplus commodities are stated at their fair value as determined at the
time of donation to the District's food service program by the Florida Department of Agriculture
and Consumer Services, Bureau of Food Distribution. Transportation inventories are stated at cost
based on last invoice, which approximates the first-in, first-out basis. The costs of inventories are
recorded as expenditures when used rather than purchased.
‣ Capital Assets
Expenditures for capital assets acquired or constructed for general District purposes are reported in
the governmental fund that financed the acquisition or construction. The capital assets so acquired
are reported at cost in the government-wide statement of net assets but are not reported in the
governmental fund financial statements. Capital assets are defined by the District as those costing
more than $1,000 for tangible personal property and $25,000 for real property. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets
are recorded at fair value at the date of donation.
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