2011 Audit Report - the Burr Ridge Park District
2011 Audit Report - the Burr Ridge Park District
2011 Audit Report - the Burr Ridge Park District
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<strong>Burr</strong> <strong>Ridge</strong> <strong>Park</strong> <strong>District</strong>Notes To The Financial Statements (Continued)For <strong>the</strong> Year Ended April 30, <strong>2011</strong>NOTE 2 - DEPOSITSCash, cash equivalents, and investments are held separately and in pools by several of <strong>the</strong> <strong>Park</strong><strong>District</strong>'s funds. The carrying amount is $2,687,647 and <strong>the</strong> bank balance is $2,761,958 at April 30,<strong>2011</strong>. These amounts are inclusive of <strong>the</strong> Investment in Illinois <strong>Park</strong> <strong>District</strong> Liquid Asset Fund.At April 30, <strong>2011</strong>, investments consist of an investment in <strong>the</strong> Illinois <strong>Park</strong> <strong>District</strong> Liquid AssetFund. This pooled investment with o<strong>the</strong>r park districts is similar in nature to a money market fundand consists primarily of certificates of deposit, U.S. Government securities, commercial paper, andcorporate bonds. Because individual securities are not owned by <strong>the</strong> <strong>Park</strong> <strong>District</strong>, amountsinvested in <strong>the</strong> Illinois <strong>Park</strong> <strong>District</strong> Liquid Asset Plus Money Market Account are not categorized.The fund is audited annually and <strong>the</strong> fund manager is registered with <strong>the</strong> NASD. The value of <strong>the</strong><strong>District</strong>’s position in <strong>the</strong> pool is equal to <strong>the</strong> value of its pool shares.CarryingFairAmountValueInvestment in Illinois <strong>Park</strong> <strong>District</strong>Liquid Asset Fund $ 806,424 $ 806,424Total Investments $ 806,424 $ 806,424Policies for InvestmentsIt is <strong>the</strong> policy of <strong>the</strong> <strong>District</strong> to invest its funds in a manner which will provide <strong>the</strong> highestinvestment return with <strong>the</strong> maximum security while meeting <strong>the</strong> daily cash flow demands of <strong>the</strong><strong>District</strong> and conforming to all state and local statutes governing <strong>the</strong> investment of public funds,using <strong>the</strong> “prudent person” standard for managing <strong>the</strong> overall portfolio. The primary objective of<strong>the</strong> policy is safety (preservation of capital and protection of investment principal), liquidity andyield.Custodial credit risk for deposits with financial institut ions is <strong>the</strong> risk that in <strong>the</strong> event of a bank’sfailure, <strong>the</strong> <strong>District</strong>’s deposits may not be returned to it. The <strong>District</strong>’s investment policy requirespledging of collateral of all bank balances in excess of federal depository insurance with <strong>the</strong>collateral held by a third party in <strong>the</strong> <strong>District</strong>’s name.The <strong>District</strong> limits its exposure to credit risk, <strong>the</strong> risk that <strong>the</strong> issuer of a debt security will not payits par value upon maturity, by primarily investing in obligations guaranteed by <strong>the</strong> United StatesGovernment or securities issued by agencies of <strong>the</strong> United States Government that are explicitlyor implicitly guaranteed by <strong>the</strong> United States Government.- 22 -