2009 Comprehensive Annual Financial Report - Apex Park and ...

IV.
Detailed Notes on AU Funds (continued)
The investment policy adopted by the Board of Directors of the District establishes additional
restrictions to the requirements specified by the state statutes.
Interest Rate Risk
In accordance with its investment policy, the District manages its exposure to declines in fair
values by investing operating funds in short-term securities, money market mutual funds, or
similar investment pools and limiting the weighted average maturity to one year or less.
Credit Risk
In accordance with its investment policy, the District will minimize credit risk by limiting
investments to only the types of securities defIDed within the Colorado Revised Statutes, prequalifying
the financial institutions, and diversifying the investment portfolio by the types of
investment securities. The District's general investment procedure is to apply the prudentperson
rule: Investments are made as a prudent person would be expected to act, with
discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid
speculative investments.
Concentration of Credit Risk
Colorado Revised Statutes and the District's investment policy do not limit the amount of
investments in anyone issuer. At December 31, 2009 the District's investment in the
Colorado Business Bank Certificates of Deposits was 40%, U.S. Bank certificates of deposit
was 20%, Certificate of Deposit Account Registry Service (CDARS®) was 36% and
Colorado Local Government Liquid Asset Trust (COLOTRUST) 4% of the District's total
investments.
Local Government Investment Pool
At December 31, 2009, the District had invested $332,983 in the Colorado Local Government
Liquid Asset Trust (Colo trust), an investment vehicle established for local government entities
in Colorado to pool sUIplus funds. The State Securities Commissioner administers and enforces
the requirements of creating and operating Colotrust. ColOlrust operates similarly to a money
market fund with each share equal in value to $1.00. Investments of Colotrust are limited to
those allowed by State statutes. A designated custodial bank provides safekeeping and
depository services in connection with the direct investment and withdrawal functions.
Substantially all securities owned are held by the Federal Reserve Bank in the account
maintained for the custodial banks. The custodian's internal records identify the investments
owned by the participating governments.
Investments
Ratings
Investment Maturities
Less than 1 Year
Local government investment pool AAAm
C. Capital Assets
Aaa
$ 332,983
Capital asset activity for the year ended December 31, 2009 is illustrated in the following
chart:
C-12