2010 - Monterey Regional Water Pollution Control Agency

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MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 Cash is recorded in the accompanying statement of net assets, as follows: 2010 2009 Unrestricted $ 1,748,252 $ 813,542 Restricted 6,192,592 6,575,045 $ 7,940,844 $ 7,388,587 Investments in pooled funds, also reflected as cash and cash equivalents, are recorded at amortized cost, which approximated fair value, at June 30, 2010 and 2009, are summarized as follows: 2010 2009 California Asset Management Program (CAMP) Pooled Investment Fund $ 8,981 $ 8,957 Subtotal 8,981 8,957 County Pooled Investment Funds 27,144 879 State of California Local Agency Investment Fund 9,635,969 12,402,682 $ 9,672,094 $ 12,412,518 The above cash and cash equivalents are classified in the accompanying statement of net assets as follows: 2010 2009 Unrestricted $ 2,466,038 $ 4,957,092 Restricted 15,146,900 14,844,013 $ 17,612,938 $ 19,801,105 Policies and Practices The Agency is authorized under the Agency’s investment policy to make direct investments in local agency bonds, notes, or warrants within the State; U.S. Treasury instruments; registered State warrants or treasury notes; securities of the U.S. Government, or its agencies; bankers acceptances; commercial paper; certificates of deposit placed with commercial banks and/or savings and loan companies; repurchase or reverse repurchase agreements; medium term corporate notes; shares of beneficial interest issued by diversified management companies, certificates of participation, obligations with first priority security; and collateralized mortgage obligations. Investment in the State Investment Pool The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California government code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Agency's investment in the pool is reported in the accompanying financial statement at amounts based upon the Agency's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which is recorded on the amortized cost basis. 22
MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010 AND 2009 California Asset Management Program (CAMP) The Agency participates in the California Asset Management Program (CAMP), a joint powers authority established in 1989 under the provisions of the California Government Code Sections 6500 et. seq., to meet local government investment needs in a manner and cost determined by the members of the program. The Agency maintains its own separate account and directs its investments in conjunction with an investment advisor. Safekeeping of all securities is maintained by Bank of New York. General Authorizations Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are indicated in the schedules below: Maximum Maximum Maximum Authorized Remaining Percentage Investment Investment Type Maturity of Portfolio In One Issuer State/Local Agency Debt Issues 5 years 25% None U.S. Treasury Obligations 5 years None None Federal Agency Obligations 5 years None None Banker's Acceptance 180 days 25% 10% Commercial Paper 270 days 20% 10% Negotiable Certificates of Deposit 5 years 20% 10% Time Certificates of Deposit 1 year 10% 10% Money Market Mutual Funds N/A 20% 10% County Pooled Investment Funds N/A None None Local Agency Investment Fund (LAIF) N/A None None Authorized Under Debt Agreements Debt resolutions stipulate only federal securities may be invested in for debt service requirements. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Agency manages its exposure to interest rate risk by investing substantially all of its cash with LAIF and CAMP. 23
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Page 9 and 10: December 30, 2010 Board of Director
Page 11 and 12: Develop and begin implementation of
Page 13: Independent Audit California state
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Page 19 and 20: INDEPENDENT AUDITOR’S REPORT To t
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2010 - Monterey Regional Water Pollution Control Agency

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