10B Action 2011 0118 - Laserfiche WebLink

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REDEVELOPMENT AGENCY OF SAN LEANDRO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Use of Restricted /Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the Agency's policy is to apply restricted net assets first. D. Cash and Investment The Agency participates in the City's cash and investment pool which is managed by the City Treasurer. For purposes of reporting cash flows, the Agency considers each fund's share in the cash and investments pool to be cash and cash equivalents. With respect to cash and investments held by fiscal agents, the Agency considers investments with original maturities of three months or less to be cash equivalents Investments income earned on the investment pool is distributed to the appropriate funds based on average month -end balances. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The Agency participated in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structure Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structure Notes and Asset - Backed Securities are subject to market risk as to changes in interest rates. E. Notes Receivable Notes receivable and related accrued interest, net of deferred revenue, are fully reserved in the equity section of the Capital Projects Funds balance sheet, as they do not represent "current financial resources ". F. Capital Assets Capital assets are those assets acquired for general governmental purposes. Such assets currently purchased or constructed are recorded at historical cost as expenditures in the Fund Financial Statements. For the Agency Wide Financial Statements, capital assets that exceed $5,000, are capitalized and depreciated over their useful lives. Contributed capital assets are recorded at fair market value at the time received. G. Long -Term Obligations Government -Wide Financial Statements Long -term debt and other financed obligations are reported as liabilities in the governmental activities. Fund Financial Statements Long -term debt and other financed obligations are reported as liabilities in the governmental activities. 20