2005 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 agreements,commercial paper,bankers' acceptances,and money market funds,or other securities maintaining a Triple-A rating. Custodial Risk: For an investment,custodial risk is the risk that, in the event of failure of the counterparty,the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The County's investments are held by its fiscal agent and the securities held by the fiduciary fund are held by the County. In addition,the County requires the institutions to set aside in safekeeping,certain types of securities to collateralize repurchase agreements. Concentration of Credit Risk: The County's investment policy contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the Hawaii Revised Statutes. Restricted Cash and Cash Equivalents and Investments Cash and cash equivalents and investments classified as restricted assets amounted to $1,183,440 at June 30,2005 consist of the following: Primary government $ 546,440 Fiduciary funds 637.000 1 1 44 The County entered into a capital lease to purchase a new financial accounting computer system. Upon execution of the lease documents,the leasing company deposited into an escrow account in the County's name the full lease proceeds. As progress billings are received for the new system,the County will authorize withdrawals from this escrow account to pay the bills. The balance in this account at June 30,2005 was$320,147. Tenant security deposits received by the County for the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project are recorded as restricted assets. Such funds amounted to$9,290 and$20,250,respectively,at June 30,2005. Restricted amounts set aside by the Kulaimano Elderly Housing Project under its loan agreement with the Farmers Home Administration totaled$182,123 at June 30,2005.This amount is restricted for debt service,or for other purposes with prior approval from the Farmers Home Administration. An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project pursuant to an agreement with the developer of the project. This restricted reserve amounted to$14,630 at June 30,2005. The Improvement District No. 17 Fund has restricted$637,000 as a bond reserve at June 30,2005 to comply with the requirements of its Kaloko Subdivision bond issuance. - 57-