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City of San Leandro <br />Notes to Basic Financial Statements <br />For the year ended June 30, 2013 <br />NOTE 1- SIGNIFICANT ACCOUNTING POLICIES (Continued) <br />GASB Statement No. 61 — In November 2010, the GASB issued Statement No. 61, The Financial <br />Reporting Entity: Omnibus — an amendment of GASB Statements No. 14 and No. 34. The objective of <br />this Statement is to improve financial reporting for a governmental financial reporting entity. The <br />provisions of this Statement are effective for financial statements for periods beginning after June 15, <br />2012. This Statement had no material impact to the City's financial statements. <br />GASB Statement No. 62 — In December 2010, the GASB issued Statement No. 62, Codification of <br />Accounting and Financial Reporting guidance Contained in Pre -November 30, 1989 FASB and <br />AICPA Pronouncements. The objective of this Statement is to incorporate into the GASB's <br />authoritative literature certain accounting and financial reporting guidance that is included in the <br />FASB and AICPA pronouncements, which does not conflict with or contradict GASB <br />pronouncements. The requirements of this Statement are effective for financial statements for periods <br />beginning after December 15, 2011. This Statement had no material impact to the City's financial <br />statements. <br />GASB Statement No. 63 — In June 2011, the GASB issued Statement No. 63, Financial Reporting of <br />Deferred Ou lows of Resources, Deferred Inflows of Resources and Net Position. This Statement <br />provides financial reporting guidance for deferred outflows of resources and deferred inflows of <br />resources. The provisions of this Statement are effective for financial statements for periods <br />beginning after December 15, 2011. This Statement required certain financial statement titles and <br />classification of fund equity to be changed in the financial statements for the fiscal year ending June <br />30, 2013. <br />The provisions of this Statement are effective for financial statements for periods beginning after <br />December 15, 2011. This Statement changed certain financial statement titles and nomenclature on <br />the City's financial statements for fiscal year ending June 30, 2013. <br />NOTE 2 - CASH AND INVESTMENTS <br />The City maintains a cash and investment pool, which includes cash balances and authorized investments <br />of all funds, which the Finance Director invests to enhance interest earnings. The pooled interest earned <br />is allocated to the funds based on average daily cash and investment balance in these funds. <br />A. Cash Deposits <br />The carrying amount of the City's cash deposits were $5,584,296 at June 30, 2013. Bank balances before <br />reconciling items were $5,364,691 at that date, the total amount of which was insured or collateralized with <br />securities held by the pledging financial institutions in the City's name as discussed below. <br />The California Government Code requires California banks and savings and loan associations to secure the <br />City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this <br />manner shall have the effect of perfecting a security interest in such collateral superior to those of a general <br />creditor. Thus, collateral for cash deposits is considered to be held in the City's name. <br />51 <br />