COM 0770.000 2020-2022 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 Following is a description of the valuation techniques used by the County to measure fair value: Government sponsored securities of$9,981,631 and certificates of deposits of $62,291,449: Valued using quoted prices at the end of the fiscal year for identical or similar assets in markets that are not active (Level 2). Equity securities of$2,071,199: Valued using quoted prices in active markets for identical assets or liabilities that a government can access at the measurement date (Level 1). The County's investments and maturities at June 30,2021 are as follows: Maturi , (ink Fair Value Less than 1 1 —5 Investments—Primary Government: Certificates of deposit $ 62,291,449 $ 54,963,319 $ 7,328,130 Government sponsored securities 9,947,152 4,006,374 5,940,778 72.238.601 58.969.693 $13.268.908 Investments—Private-Purpose Trusts: Equity securities 2.071.199 2.071.199 $ -- Investments—Custodial Funds: Government sponsored securities $ 34,479 $ 34,479 $ -- Interest Rate Risk: The County minimizes its exposure to interest rate risk by limiting the maturities of investments to five years or less in compliance with state statute. The County's policy is to hold investments until maturity and does not engage in trading for capital gains. Credit Risk: The County's investment portfolio primarily consists of U.S. government or agency obligations,bonds of government sponsored enterprises,time certificates of deposit and repurchase agreements. These investments are either insured by the FDIC, secured by collateral or carry a credit rating equivalent to U.S. Treasuries. Custodial Risk: Custodial risk is the risk of loss from the failure of the counterparty,which is defined as any entity that obtained an investment on behalf of the County. All of the County's deposits including repurchase agreements are secured by collateral which is kept by a third party custodian. Broker-dealers utilized by the County are members of the Securities Investor Protection Corporation,and all investment securities are held in the County's name. - 66 -