3.0.b. SWCSR 08-15-2019 - Laserfiche WebLink

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SHERBURNE WRIGHT COUNTY CABLE COMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investments State statutes authorize investments which are direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 and receives the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less; general obligations rated "A" or better; revenue obligations rated "AA" or better, general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of United States' banks eligible for purchase of by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories, repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualifies as a "depository" by the Commission entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. At December 31, 2017, the Commission did not have any of these investments. Receipts and Disbursements Receipts result from exchange transactions associated with the principal activity of the Commission, which is the administration and enforcement of the cable communications systems franchise. Disbursements are defined as expenses directly or indirectly related to, or incurred in support of the cable communications systems franchise. Receipts from public, educational, and governmental programming (PEG) capital fees are restricted for use for disbursements for property, plant, and equipment associated with PEG access. Expenditures for property, plant, and equipment exceeded the PEG capital fees for the year ended December 31, 2017. As such, no amount of cash fund balance is restricted as to use at December 31, 2017. Risk Management The Commission is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, and natural disasters. The Commission's member cities provide insurance coverage through their respective insurance programs. Fund Balance In the fund financial statements, governmental funds report components of fund balance to provide information about fund balance availability for appropriation. Restricted fund balance represents amounts available for appropriation but intended for a specific use and is legally restricted by outside parties. Committed fund balance represents constraints on spending that the government imposes upon itself by high-level formal action prior to the close of the fiscal period. Assigned fund balance represents resources intended for spending for a purpose set by the government body itself or by some person or body delegated to exercise such authority in accordance with policy established by the board. Unassigned fund balance is the residual classification for the Commission's General Fund and includes all spendable amounts not contained in the other classifications. (7)