notebook - Southwest Florida Water Management District

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notebook - Southwest Florida Water Management District

Item 45

Finance and Administration Committee

October 30, 2012

Routine Report

Treasurer's Report, Payment Register, and Contingency Funds Report

Purpose

Presentation of the Treasurer's Report, Payment Register, and Contingency Funds Report

Background

In accordance with Board Policy 130-3, District Investment Policy, a monthly report on

investments shall be provided to the Governing Board. Attached is a copy of the Treasurer's

Report as of September 30, 2012, which reflects total cash and investments at a market value

of $589,658,949.

As reflected on the September 30, 2012, Treasurer's Report, the investment portfolio had

$131.7 million or 22.2 percent invested with the State Board of Administration (SBA) of which

$126.2 million is invested in the Florida PRIME (formerly the Local Government Investment

Pool) and $5.5 million in the Fund B Surplus Funds Trust Fund (Fund B). The District has

received $387,088 of Pool A interest earnings during fiscal year 2011-12. Fund B is not

distributing interest earnings. The District is managing its short-term and daily liquidity needs

through the use of the Florida PRIME and the Federated Government Obligations

Fund/Institutional money market fund and U.S. Treasury bills. Consistent with Board

Policy 130-3, the maximum percent of the portfolio that will be invested in any one

money market fund is 25 percent.

Fund B consists of assets that had defaulted on a payment, paid more slowly than expected, or

had any significant credit and liquidity risk. Fund B cash holdings are being distributed to

participants as they become available monthly from maturities, sales and received income.

The investment objective for Fund B is to maximize the present value of distributions.

At September 30, 2012, the District's investment in Fund B was $5.5 million, down from the

initial investment of $40.7 million. The market value of the Fund B investments is estimated at

$4.9 million or approximately 91 percent of cost, reflecting $517,287 at risk. District staff is not

aware of any plans by the SBA to liquidate Fund B investments below cost.

On October 4, 2012, the SBA released another $154,359 from Fund B. Therefore, subsequent

to September 30, 2012, the balance of $5.5 million has been reduced by $154,359 which further

reduces the $517,287 at risk.

Staff will continue to monitor the SBA activities to determine how this will impact the District's

current investment in the Florida PRIME, and affect the District's investment strategy going

forward.

In accordance with Board Policy 130-1, Disbursement of Funds, all general checks written

during a period shall be reported to the Governing Board at its next regular meeting.

The Payment Register listing disbursements since last month's report is available upon request.

The Payment Register includes checks and electronic funds transfers (EFTs).

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