WAUKESHA COUNTY Waukesha, Wisconsin

NOTE 4 – DEPOSITS AND INVESTMENTS (CONT’D)WAUKESHA COUNTY, WISCONSINNOTES TO FINANCIAL STATEMENTSDecember 31, 2010The credit risk profile for fixed income securities at December 31, 2010 is as follows:U.S. Government GuaranteedU.S. Treasury $34,332,201U.S. Agencies 83,438,656Total U.S. Government Guaranteed $117,770,857Money Market AccountsAAAm $4,363,953Unrated - Wisconsin Local Government Investment Pool 47,922Total Money Market Accounts $4,411,875U.S. AgenciesAAA rated $6,561,986Municipal BondsAAA rated $3,026,825AA rated $3,914,125P-1 rated $125,601Unrated 725,580Total Municipal Bonds $7,792,131Custodial Credit RiskCustodial credit risk is the risk that in the event of the failure of the custodian holding the County’sdeposits and investments, the deposits and investments may not be returned.As of December 31, 2010 the carrying amount of the County's deposits was $41,653,588 and the bankbalance was $32,475,749. $32,475,749 of the bank balance at year-end was covered by Federal andState depository insurance or by collateral held by the County’s agent in the County’s name. None of thebank balance was uninsured or uncollateralized at year-end. In addition, the County maintains petty cashfunds in the amount of $71,959. The difference between the bank balance and carrying value is due tooutstanding checks and/or deposits in transit.The County’s Investment Policy requires all investment institutions acting as a depository for the Countyto enter into a “depository agreement” requiring the depository to pledge collateral to secure depositsover and above the $250,000 of federal depository insurance and the $400,000 covered by the StateDeposit Guarantee. Additionally, non-interest bearing transaction accounts are currently fully guaranteedby the Federal Deposit Insurance Corporation. Federal depository insurance on all accounts isscheduled to be reduced to the prior limit of $100,000 on December 31, 2013. All securities serving ascollateral shall be specifically pledged to the County (not as part of a pooled fund) and placed in acustodial account at a Federal Reserve Bank, a trust department of a commercial bank, or throughanother financial institution. The custodian may not be owned or controlled by the depository institutionor its holding company unless it is a separately operated trust institution. The custodian shall sendstatements of pledged collateral to the Treasurer’s Office on a monthly basis.The County’s Investment Policy requires all of the County’s investments to be held in the County’s nameby a third party custodian (a bank trust company), or be part of an external investment pool. There is nocustodial credit risk exposure for these investments.59