Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 FLFIT Cash Pool is a high-quality money market alternative for local government investors. The Cash Pool is a compliment to other money market options and provides safety of principal, liquidity, and total return. Appropriate for short-term cash portfolios, the pool is managed to provide minimal volatility of net asset value and positive holding period returns for 30 days or greater. The adviser seeks to accomplish this objective by maintaining a portfolio of high-quality short-duration fixed-income instruments. The Cash Pool is a short-term investment product, which is rated AAAf / S1+ by S&P Global Ratings (S&P). The pool is designed to add diversification with multiple asset classes and a competitive yield to other cash alternatives. Providing same day liquidity to participants, the pool is managed as a stable net asset product but does have a floating net asset value, with the investment objective of maintaining a $1.00 per share NAV. Same day liquidity for transactions entered by 1:00 p.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. 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. FLPALM Portfolio has a credit rating of AAAm by S&P, AAAf by Fitch and AAAkf 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. 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. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” 95