COM 0770.000 2020-2022 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 Budget to GAAP Reconciliation The following is a summary of the adjustments necessary to convert fund balances of the County's General Fund from a GAAP basis to a budgetary basis at June 30,2021: Ending fund balance—GAAP basis $88,573,895 Encumbrance adjustments: Beginning encumbrances and unexpended allotments 1,589,411 Ending encumbrances and unexpended allotments (3,204,431) Other adjustments 10.433.856 Ending fund balance—Non-GAAP budgetary basis 97.392.731 3. CASH AND INVESTMENTS The Director of Finance is responsible for the safekeeping of all monies paid to the County. The Director of Finance invests any monies of the County which in the Director's judgment are in excess of the amounts necessary for meeting the day-to-day operating needs of the County. Under Section 46-50 of the Hawaii Revised Statutes,legally authorized investments include obligations of or guaranteed by the U.S. government,obligations of the State, federally insured savings and checking accounts,time certificates of deposit, and repurchase agreements with federally insured financial institutions. Cash The County maintains a number of checking and savings accounts for various funds and with various financial institutions. Bank deposits are under the custody of the Director of Finance. For financial statement reporting purposes,cash and short-term investments consist of cash and money market accounts. Cash and short-term investments also include repurchase agreements,certificates of deposit, and government sponsored securities with original maturities of three months or less. The carrying amount of the County's deposits(cash,time certificates of deposit, and money market accounts) as of June 30,2021 was$367,121,259 for the primary government and $5,479,590 for the fiduciary funds. Information relating to bank balance,insurance and collateral of cash deposits is determined on a county-wide basis. Total bank balances of deposits for the primary government and fiduciary funds amounted to $384,725,504 at June 30,2021. Of that amount, $383,176,012 represents bank balances covered by federal deposit insurance or by collateral held by the County's fiscal agents in the name of the County. The remaining bank balances of$1,549,492 represent deposits held by a management agent and were uncollateralized. Accordingly,these deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in the event of a bank failure,the County's deposits may not be returned to it. For checking and savings accounts,time certificates of deposit, and repurchase agreements,the County requires,in - 64 -