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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2024
18
Note 3—Cash and cash equivalents
The Commission is governed by the Virginia Security for Public Deposits Act and the Investment of Public Funds
Act. The deposits held and reported at carrying value are shown below:
Type
Carrying Value
Demand deposits
17,458,907
$
Cash on hand
4,500
Total deposits
17,463,407
$
Reconciliation to Statement of Net Position:
Current - cash and cash equivalents
2,976,032
$
Restricted assets - cash and cash equivalents
14,487,375
17,463,407
$
Custodial Credit Risk and Concentration of Investments – Deposits in financial institutions, reported as
components of cash and cash equivalents, had a bank balance of approximately $17,492,000 at June 30, 2024,
which was fully insured by depository insurance or secured with collateral held by the Commission’s agent in its
name. At June 30, 2024, amounts subject to custodial credit risk as they were uninsured by the Federal Deposit
Insurance Corporation (“FDIC”), due to exceeding the $250,000 financial institutions limit, were approximately
$16,992,000 and were fully collateralized in accordance with the Virginia Security for Public Deposits Act (the
“Act”). Under the Act, banks holding public deposits in excess of the amounts insured by FDIC must pledge
collateral in the amount of 50% of excess deposits to a collateral pool in the name of the State Treasury Board.
The State Treasury Board is responsible for monitoring compliance with the collateralization and reporting
requirements of the Act and for notifying local governments of compliance by banks. A multiple financial institution
collateral pool that provides for additional assessments is similar to depository insurance. If any member financial
institution fails, the entire collateral pool becomes available to satisfy the claims of governmental entities. If the
value of the pool’s collateral is inadequate to cover a loss, additional amounts would be assessed on a pro rata
basis to the members of the pool.
All investments, if any, evidenced by individual securities, are registered in the name of the Commission. The
Commission places no limit on the amount it may invest in any one issuer.
Investment Interest Rate Risk – The Commission has no formal investment policy that limits investment maturities
as a means of managing its exposure to fair value losses arising from increasing interest rates. No investments
were held by the Commission at June 30, 2024.
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