COM 0770.000 2020-2022 - Laserfiche WebLink

Home

COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 accordance with State statutes,that the depository banks pledge collateral based on the available bank balances for the protection of the funds deposited. All securities pledged as collateral are held by the County's fiscal agents in the name of the County. The County also requires that no more than 60% of the County's total funds available for deposit may be deposited in any one financial institution,in accordance with State statutes. Investments The County holds investments both for its own benefit and on behalf of some of the fiduciary funds. The County's investments of funds not required for immediate payments are predominately comprised of government sponsored securities(equivalent to the rating in U.S. Treasuries),repurchase agreements and certificates of deposit,while the fiduciary funds also hold equity securities. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities(level 1) and the lowest priority to unobservable inputs(level 3). The three levels of the fair value hierarchy are described as follows: Level I —Inputs are quoted prices (unadjusted)in active markets for identical assets or liabilities that a government can access at the measurement date. An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Inputs other than quoted prices included within level I that are observable for an asset or liability,either directly or indirectly. If the asset or liability has a specified (contractual)term, a level 2 input must be observable for most of the full term of the asset or liability. Level 2 inputs include: • Quoted prices for similar assets or liabilities in active markets, • Quoted prices for identical assets or liabilities in markets that are not active, • Inputs other than quoted prices that are observable for the asset or liability, • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 —Inputs are unobservable for an asset or liability. - 65 -