1988 CAFR - Laserfiche WebLink

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Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) J. Total Columns on Combined Statements Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position or results of operations in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Note 2. CASH AND INVESTMENTS A. Deposits CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1988 The City maintains a cash and investment pool that is available for use by all funds, except the Escrow Expendable Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and temporary cash investments" or as "advance from City's general account." An indication of the level of risk assumed by the City at year -end is categorized as follows for the City's cash and temporary cash investments: In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage- backed collateral). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes and certain other State or local government obligations. Minnesota Statutes require that securi- ties pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Deposit balances at December 31, 1988, are as follows: Bank Carrying Balance Amount Bank deposits (checking and savings accounts) $242,917 $138,083 At December 31, 1988, all deposits were insured or collateralized by securities held by the City's agent in the City's name. However, at various times during the year, the City's deposits were under - collateralized.