village of wellington, florida

NOTE 2. DEPOSITS AND INVESTMENTS (Continued)Custodial Credit RiskCustodial credit risk is defined as the risk that the Village may not recover the securities held by anotherparty in the event of a financial failure. The Village’s investment policy for custodial credit risk requires allinvestment securities to be held in the Village’s name by a third party safekeeping institution. Theinvestments in money market mutual funds, the Local Government Investment Pool Fund B and theFlorida Municipal Investment Trust are considered unclassified pursuant to the custodial credit risk categoriesof GASB Statement No. 3. All deposits with financial institutions and investments in U.S. Government andInstrumentality securities are considered fully insured or collateralized pursuant to the custodial credit riskcategories of GASB Statement No. 3.Concentration of Credit RiskConcentration of credit risk is the risk of loss attributed to the magnitude of a government’s investments ina single issuer. The Village limits the amount that can be invested in any one issuer of Federal Agencies andInstrumentalities to 40% of the portfolio. The Village was in compliance with this policy at year-end. AtSeptember 30, 2009, the Village had more than 5% of its investments in the following:Issuer Fair Value PercentageFannie Mae $ 20,366,458 23.55%Freddie Mac 10,440,558 12.07%Federal Home Loan Bank 23,637,147 27.34%Federal Farm Credit Bank 5,755,547 6.66%NOTE 3. ACCOUNTS RECEIVABLEAccounts receivable as of September 30, 2009, for individual major funds and aggregate nonmajor funds areas follows:Planning,Zoning Recreation Capital Nonmajor Utility SolidGeneral and Building Programs Projects Funds System Waste TotalUtility taxes $ 352,489 $ - $ - $ - $ - $ - $ - $ 352,489Franchise taxes 365,499 - - - - - - 365,499Accounts 116,626 49,292 - - - 1,588,004 51,335 1,805,257Interest 118,726 26,581 15,512 87,781 123,802 163,472 26,616 562,490Gross receivables 953,340 75,873 15,512 87,781 123,802 1,751,476 77,951 3,085,735Less allowance foruncollectible account s - - - - - (61,300) - (61,300)$ 953,340 $ 75,873 $ 15,512 $ 87,781 $ 123,802 $ 1,690,176 $ 77,951 $ 3,024,43540