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 2 DEPOSITS AND INVESTMENTS The Commission maintains deposits at financial institutions which are authorized by the board of directors. All such depositories are members of the Federal Reserve System. The Commission only uses one financial institution which exposes it to custodial credit risk and concentration of credit risk. These risks are managed through the use of pledged collateral. The Commission does not have a deposit policy for custodial or concentration of credit risk and follows Minnesota Statutes for deposits. Minnesota Statutes require that all of the Commission's deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance on bonds. Authorized collateral includes: (a) United States government treasury bills, treasury notes, treasury bonds; (b) issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; (c) general obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state of local government with taxing powers with is rated "AA" or better by a national bond rating service; (d) unrated general obligation securities of a local government with taxing power pledged as collateral against funds deposited by that same local government entity's; (e) irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation; and (f) time deposits that are fully insured by the Federal Deposit Insurance Corporation. Minnesota Statutes require that collateral be placed in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the depository. As of December 31, 2017, the Commission's deposits were sufficiently collateralized. The Commission's cash balances at December 31, 2017 includes deposits of$804,114. NOTE 3 CONCENTRATIONS The Commission received approximately 92% of its revenues from one cable television service provider for the year ended December 31, 2017. NOTE 4 ON BEHALF OF PAYMENT FOR DIRECTORS The Commission has agreed to pay for basic cable for each of the Directors and appointed alternates for each Member City. Total payments on behalf of the Commission for these services for the year ended December 31, 2017 amounted to $10,200, and is reported as cable service expenditures. (8)