(u) Subsequent Events The Authority has evaluated subsequent events through November 20, 2020, the date on which the financial statements were available to be issued. Tenants must pay an Advance Payment Fee that is included on the first bill and reported as part of Customer Deposits on the accompanying financial statements. The Board voted to reduce this fee from $250 to $200, effective October 12, 2020. This change will result in approximately 9,500 customers receiving bill credits during fiscal year 2021 of $50 each, for total bill credits of approximately $475,000. 2 cash and investments Cash and Cash Equivalents At June 30, 2020 and 2019, all cash of the Authority is maintained in accounts collateralized in accordance with the Virginia Security for Public Deposits Act (the Act), Section 2.2-4400 et. seq. of the Code of Virginia, or is covered by federal depository insurance. Under the Act, banks holding public deposits in excess of the amounts insured by the Federal Deposit Insurance Corporation (FDIC) must pledge collateral in the amount of 50% of excess deposits to a collateral pool in the name of the State Treasury Board. Savings and loan institutions are required to collateralize 100% of deposits in excess of FDIC limits. Since the State Treasurer has the ability to make additional assessments of other solvent public depositories on behalf of the collateral pool, any deposit qualifying under the Act is considered entirely insured. 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 and savings and loans. The Authority also invests in an externally managed investment pool, the Virginia Local Government Investment Pool (LGIP) and the LGIP Extended Maturity (LGIP EM), which are not registered with the Securities and Exchange Commission (SEC). Pursuant to Sec. 2.2-4600 through 2.2-4606 of the Code of Virginia, the Virginia General Assembly created the LGIP and authorized the Treasury Board to administer the LGIP and LGIP EM. As permitted by law, the Treasury Board has delegated certain administrative functions to the State Treasurer. The Treasury Board reviews the LGIP investment portfolio on a monthly basis, and investments in the LGIP are stated at amortized cost per GASB Statement No. 79 requirements, while the LGIP EM are stated at fair value per GASB Statement No. 72 requirements. The LGIP is managed similar to a money market fund and in compliance with the definition of “2a-7 like pools” in accordance with GASB Statement No. 31 and is managed to meet the portfolio maturity, quality, diversification and liquidity requirements set forth in GASB Statement No. 79. Unrestricted cash and cash equivalents consist of bank deposits, petty cash funds, LGIP investments and other money market fund investments. Restricted cash and cash equivalents consist of customer deposits, employee withholdings for benefit programs, escrows and retainage held on contracts, and money market funds held by a Trustee for debt service. At June 30, 2020 and 2019, the Authority had the following cash and cash equivalents: 2020 2019 Unrestricted Cash and Cash Equivalents Cash Investments classified as cash equivalents Total unrestricted cash and cash equivalents Restricted Cash and Cash Equivalents Money market funds held by trustee Customer deposits Other funds Total restricted cash and cash equivalents Total cash and cash equivalents $ 3,089,396 65,658,642 68,748,038 15,638,829 2,864,213 2,765,392 21,268,434 $ 90,016,472 $ 2,202,291 5,726,003 7,928,294 12,435,376 2,751,441 98,068 15,284,885 $ 23,213,179 42 FINANCIAL SECTION NOTES TO FINANCIAL STATEMENTS
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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