Sarasota County, Florida Notes to Financial Statements September 30, 2023 Credit Risk The Countys investment policy limits credit risk by restricting the authorized investments to those illustrated in Note 1, Section D. The following table illustrates the credit quality distribution with credit exposure as a percentage of the Countys investment securities. Concentration of Credit Risk The Countys investment policy establishes limitations on portfolio composition, both by investment type and dealer, in order to control concentration of credit risk. The following maximum limits are guidelines established for diversification by instrument The policy provides that no more than 25% of the entire portfolio may be placed with any one security dealer or bank. Other Post Employment Trust Fund Deposit and Investments The County participates in the Florida Municipal Pension Trust Fund which invests assets in the Florida Municipal Investment Trust (FMIvT). The FMIvT is a Local Government Investment Pool (LGIP) administered by the Florida League of Cities for the Other Post Employment Benefit Plan. The FMIvT is an interlocal government entity and authorized investment under Section 163.01, Florida Statutes used to invest surplus and pension funds. The FMIvT is governed by a Board of Trustees consisting of the president and second vice president of the Florida League of Cities, two representatives who are appointed from the Florida Municipal Insurance Trust and up to three members who are elected officials of governmental entities actively participating in the FMIvT. Credit Ratings Percent of Investment Type S&P/Moody's/Fitch Portfolio U.S. Treasury AA+/Aaa/AA+ 9.9% GNMA * AA+/Aaa/AA+ 6.2% U.S. Agencies Federal Home Loan Bank AA+/Aaa/AA+ 27.2% Federal Home Loan Mortgage Corporation AA+/Aaa/AA+ 14.8% Federal National Mortgage Association AA+/Aaa/AA+ 11.8% Federal Farm Credit Bank AA+/Aaa/AA+ 16.0% PEFCO AA+/Aaa/AA+ 0.4% Bank Certificates of Deposit (Chapter 280)** - 0.0% FL Local Governemtal Investment Pools FLFIT-PDP - <0.0% FLSAFE AAAm <0.0% FLGIT AAAm 0.0% FLPALM AAAm 8.5% FLCLASS AAAm 4.3% Short-term Cash*** - 0.9% * GNMA is backed by the full faith of the U.S. Government. ** Non-Negotiable with a FL Qualified Public Depository ***Qualified Public Funds bank money market Sector Investment Policy Limit Repurchase Agreements 50% Certificates of Deposits 80% U.S. Agencies 75% State Investment Pools 50% Commercial Paper 25% Bankers' Acceptances 25% 101
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