NOTE 2 DEPOSITS AND INVESTMENTS
NOTE 2 Deposits and Investments Cash and Cash Equivalents As of June 30, 2024, carrying amounts and bank balances of cash on deposit with financial institutions were $55,766 and $44,906, respectively. Cash on hand totaled $33. Custodial credit risk – deposits. Custodial credit risk is the risk that, in the event of a bank failure, the MDTA’s deposits may not be returned. Deposits are exposed to custodial credit risk if they are not covered by depository insurance and the deposits are (a) uncollateralized, (b) collateralized with securities held by the pledging financial institution, or (c) collateralized with securities held by the pledging financial institution’s trust department or agent but not in the government’s name. The MDTA’s Trust Agreement requires financial institutions to provide collateral with a fair value that exceeds the amount by which a deposit exceeds deposit insurance. Federal depository insurance covers the MDTA’s deposits with a financial institution up to specified limits and the remaining balance is collateralized with securities that are held by the State of Maryland’s agent in the State’s name. As of June 30, 2024, the carrying amount of cash invested in short-term government bonds, money market mutual funds, and the Maryland Local Government Investment Pool was $263,159. Custodial credit risk – investments. Custodial credit risk is the risk that, in the event of the failure of the counterparty, the MDTA will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Investment securities are exposed to custodial credit risk if the securities are uninsured, not registered in the name of the government, or held by either (a) the counterparty or (b) the counterparty’s trust department or agent but not in the government’s name. The MDTA’s Trust Agreement requires all investments to be registered in the MDTA’s name. Credit risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The MDTA’s Trust Agreement allows the MDTA to invest in money market mutual funds rated AAAm or Aaa-mf. As of June 30, 2024, the money market mutual funds held by the MDTA were rated AAAm. Investments For the year ended June 30, 2024, the MDTA’s investments and quality ratings consisted of the following:
Investment Maturities (in Years)
Credit Ratings
Investment Type U.S. Treasury U.S. Agency Supranational Municipal Commercial Paper
Fair Value 1 $ 142,972 353,626 57,723 98,466 20,000 $ 672,787
Less Than 1 $ 59,696 233,627 — — 20,000 $ 313,323
1-5 $ 81,139 105,251 57,723 79,971 — $ 324,084
6-10 $ —
More Than 10 $ 2,137 14,748 — 8,668 — $ 25,553
Ratings AA+ AA+ AAA AA-AAA Tier 1
NRSRO S&P S&P S&P Multiple 2 S&P
— — 9,827 — $ 9,827
(1) Level 1 pricing, quoted prices in active markets. (2) Municipal bond holdings have ratings in the double-A or triple-A categories from at least one NRSRO. NRSRO: Nationally Recognized Statistical Rating Organization
54 | Maryland Transportation Authority | Notes to the Financial Statements ($ in thousands)
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