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).
Item 45 The FY2011-12 Contingency Funds Report (District only) follows: ORIGINAL BUDGET AMOUNT: $7,100,000 Less Approved Transfers Date of Board Action Information Technology Analysis and Review 200,000 December 20, 2011 BALANCE: $6,900,000 Staff Recommendation: See Exhibit These items are presented for the Committee's information, and no action is required. Presenter: Daryl F. Pokrana, Bureau Chief, Finance