TOWNSHIP OF JACKSON NOTES TO FINANCIAL STATEMENTS (continued): FOR THE YEAR ENDED DECEMBER 31, 2013
Note 2. Cash and Cash Equivalents:
The Township is governed by the deposit and investment limitations of New Jersey state law. The Deposits and investments held at December 31, 2013, and reported at fair value are as follows:
TypeCarrying Value
Deposits
Demand Deposits$ 29,000,017
Total Deposits$ 29,000,017
Reconciliation of Statement of Assets, Liabilities, Reserves and Fund Balance:
Current Fund$ 9,987,329
Animal Control Trust Fund139,043
Open Space Trust Fund4,061,833
Trust - Other Fund10,911,889
General Capital Fund3,867,877
Public Assistance Fund29,730
Payroll Fund2,316
Total Cash and Cash Equivalents$ 29,000,017
Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank failure, the Township's deposits might not be recovered. Although the Township does not have a formal policy regarding custodial credit risk, N.J.S.A. 17:9-41 et seq. requires that governmental units shall deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit
Deposit Protection Act (GUDPA). Under the Act, the first $250,000 of governmental deposits in each insured depository is protected by the Federal Deposit Insurance Corporation (FDIC). Public funds owned by the Township in excess of FDIC insured amounts are protected by GUDPA. However, GUDPA does not protect intermingled trust funds such as salary withholdings, bail funds, or funds that may pass to the Township relative to the happening of a future condition. Such funds are shown as uninsured and uncollateralized in the schedule that follows.
As of December 31, 2013, the Township's bank balances of $29,678,133 were exposed to custodial credit risk as follows:
Uninsured & Uncollateralized Insured Under F.D.I.C. Collateralized Under GUDPA $15,269,784 250,000 14,158,349
Total $29,678,133
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