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Elk River Municipal Utilities <br />Elk River, Minnesota <br />Notes to the Financial Statements <br />December 31, 2021 <br /> <br />Note 2: Detailed Notes on All Funds (continued) <br /> <br />Investments <br />The Utilities investment balances were as follows for December 31, 2021: <br /> <br />(1) Ratings were provided by various credit rating agencies where applicable to indicate associated credit risk. <br />(2) Interest rate risk is disclosed using the segmented time distribution method. <br />N/A Indicates not applicable. <br /> <br />A reconciliation of cash and temporary investments as shown in the financial statements for the Utilities follows: <br /> <br />The investments of the Utilities are subject to the following risks: <br /> <br />Credit Risk. Is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings <br />are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota <br />svestments to the list on page 30 of the notes. <br /> <br />Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the <br />counterparty to a transaction, a government will not be able to recover the value of investment or collateral <br />portfolio maturities shall be staggered to avoid undue concentration of assets with one broker-dealer or financial <br />institution. <br />35 <br />107 <br />