FY2016 CCDOA Financial Report as of 6302016.pdf - page 68

CLARK COUNTY DEPARTMENT OF AVIATION
CLARK COUNTY, NEVADA
Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
55
Fair Value
FY2015
Investment Type
(000)
Less Than 1
1 to 3
3 to 5
5 to 10
Over 10
US Treasury Notes
80,201
$
16,108
$
64,093
$
-
$
-
$
-
$
Federal FarmCredit Bank Discounts
22,022
22,022
-
-
-
-
Federal Home Loan Bank Discounts
84,828
58,853
25,975
-
-
-
FSA Collateralized Investment Agreement *
14,868
-
-
-
-
14,868
Federal Home Loan Mortgage Corporation Callables
34,984
-
34,984
-
-
-
Federal National Mortgage Association Callables
21,968
10,000
11,968
-
-
-
258,871
$
106,983
$
137,020
$
-
$
-
$
14,868
$
Investment Ratings
Moody's
S&P
US Treasury Notes
Aaa
AA+
Federal FarmCredit Bank Discounts
P-1
A-1+
Federal Home Loan Mortgage Corporation Callables
Aaa
AA+
Federal Home Loan Bank Discounts
P-1
A-1+
Federal National Mortgage Association Callables
Aaa
AA+
FSA Collateralized Investment Agreement *
A2
AA-
* Series 2007A Debt Service Reserve Fund invested through the life of the bond issue, July 1, 2040, with a maximum scheduled withdrawal
of $9.5 million due on July 1, 2027.
Investment Maturities (in Years)
(g) Fair Value of Combined Investments and Derivative Instruments
GASB 72 addresses accounting and financial reporting issues related to fair value measurements of
investments and defines fair value as "the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date."
GASB 72 is effective for fiscal years beginning after June 15, 2015, and retroactive for all financial
statement periods presented. The determination of fair value is through valuation techniques which
should be applied consistently using one or more of three approaches: (1) the market approach, (2)
the cost approach, and (3) the income approach. When using one or more of the valuation
techniques to determine the fair value of the asset or liability, the desire is to maximize the use of
relevant observable inputs and minimize the use of unobservable inputs. GASB 72 provided three
levels of inputs. Level 1 inputs are observable using quoted prices in active markets. Level 2 inputs are
observable for an asset or liability, either directly or indirectly. These inputs include quoted prices for
similar assets or liabilities in active markets or identical or similar assets or liabilities not in active markets,
inputs other than quoted prices such as interest rates or yield curves observable at commonly quoted
intervals, or market-corroborated inputs. Level 3 are unobservable inputs for assets and liabilities. As of
June 30, 2016 the investments and derivative instruments were measured at fair value, as provided in
the table below.
1...,58,59,60,61,62,63,64,65,66,67 69,70,71,72,73,74,75,76,77,78,...169
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