Sarasota County, Florida Notes to Financial Statements September 30, 2021 FLPALM, FLCLASS, FLSAFE and FLGIT hold a diversified mix of credit sectors for income generation. The funds also maintained a small to moderate allocation to A1 rated equivalent asset-backed securities (ABS/MBS) with short duration profiles for their yield and diversification benefits. FLFIT Preferred Deposit Pool (PDP) offers FDIC insured capacity of up to $30 million for each participating client. The PDP Pool is a resource that assists local governments in maximizing their yield while maintaining same-day liquidity and protecting principal through FDIC insured bank deposits. The pool offers a compelling strategy to generate interest income while maintaining prudent cash management. Same day liquidity for transactions entered by 1:00 p.m. EST. FLGIT Day to Day investment pool is AAAf rated by Fitch Ratings and is structured to maintain liquidity, safety of principal, and maximize available yield through a balance of quality and diversification. Invests primarily in Repurchase Agreements, U.S. Treasuries, Mortgages, Commercial Paper, Government Related Securities, Asset-Backed Securities rated AAA or A-1, and Corporate Bonds rated A or better by Fitch Ratings. Stable Net Asset Value (NAV) with the investment objective of maintaining a $1.00 per share NAV. Same day liquidity for transactions entered by 11:00 a.m. EST. FLSAFE Stable NAV investment pool invests in high-quality short-term debt instruments and follows S&P’s credit rating requirements for credit quality, maturity, liquidity, diversification and internal controls. The Fund’s advisor has implemented risk management policies and procedures for purchasing and monitoring the Fund’s investments. Through these risk management techniques, including those required by S&P for a AAAm rated Net Stable Value Fund, FL SAFE seeks to maintain a NAV of $0.9975 or higher as required to achieve a AAAm rating. According to S&P’s rating criteria, the AAAm rating signifies excellent safety of invested principal and a superior capacity to maintain a $1.00 per share Net Asset Value. Same day liquidity for transactions entered by 1:00 p.m. EST. FLPALM Portfolio has a credit rating of AAAm by S&P, AAAf by Fitch and AAAf by Kroll. The investment objective of the portfolio is to earn the highest income consistent with preserving principal and maintaining liquidity, and to maintain a stable $1.00 net asset value ("NAV"). To do so, the portfolio invests exclusively in high-quality money market instruments, such as: U.S. Government and Agencies, REPOs, Commercial Paper, Corporate Notes and Bonds, Obligations of Banks, Floating-Rate and Variable-Rate Obligations, Municipal Obligations, Money Market Mutual Funds and any investments authorized under Section 218.415(16) of Florida State Statutes. Same day liquidity for transactions entered by 2:00 p.m. EST. FLCLASS is rated AAAm by S&P Global Ratings Services, the highest rating assigned to principal stability government investment pools. This rating reflects the conservative nature of the pool's investments as well as the excellent credit quality of the program. S&P Global Ratings monitors the pool on a weekly basis. The Board of Trustees has appointed Public Trust Advisors, LLC, to serve as the Investment Advisor and Administrator of the Program and has appointed Wells Fargo Bank, N.A. as the Custodian. Same day liquidity for transactions entered by 3:00 p.m. EST. Qualifying Investment Pools If a participant has an investment in a qualifying external investment pool that measures for financial reporting purposes all of its investments at amortized cost, it should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool’s authority to impose liquidity fees or redemption gates) in notes to the financial statements. With regard to redemption gates, Chapter 218.409(8) (a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. 99
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