Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 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.” As of September 30, 2020, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Custodial Credit Risk Custodial credit risk is defined as the risk that, in the event of failure of the counterparty, the County will not be able to recover the value of its securities that are in the possession of an outside party. At September 30, 2020, the County’s book balance of cash was $71,802,717 and the bank balance was $73,767,949. The County’s bank balances are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for each banking relationship. The remaining balances are collateralized pursuant to Chapter 280, Florida Statutes. The County’s investment policy requires that deposits be entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. The County’s investment policy requires that securities be secured through third-party custody in the County’s name and safekeeping procedures. All of the County’s investments are held by the counterparty’s trust department in the County’s name. Interest Rate Risk As of September 30, 2020, the County had the following investments and maturities: Investment Maturities (in Years) Cost or Investment Type Fair Value Less than 1 1-5 Greater than 5* U.S. Treasuries $ 78,089,593 $ - $ 78,089,593 $ - U.S. Agencies Fixed 370,378,057 13,230,053 357,148,004 - Adjustable Mortgages* 43,267,781 - - 43,267,781 Fixed Mortgages ** 93,838,749 - 10,589,541 83,249,208 GNMA Mortgages Adjustable* 93,613,503 - - 93,613,503 Fixed Mortgages ** 15,545,712 - - 15,545,712 Certificates of Deposit 25,026,107 25,026,107 - - FLFIT 19,853 19,853 - - FLSAFE 2,029,364 2,029,364 - - FLGIT 818,712 818,712 - - FLPALM 96,023,998 96,023,998 - - FLCLASS 154,214,305 154,214,305 - - Short term cash 5,632,775 5,632,775 - - Total $ 978,498,509 $ 296,995,167 $ 445,827,138 $ 235,676,204 *Adjustable Agency and GNMA securities have coupon resets ranging from 1 month to 2 years corresponding to an effective duration of 0.6 years. **Represents seasoned fixed rate mortgages that pay principal and interest monthly and have an effective duration of 3.0 years. 100