As of December 31, 2017, the Township’s bank balance of $38,247,220.46 was insured or collateralized as follows:
| Insured under FDIC and GUDPA | $ 21,212,558.65 |
|---|---|
| NJ Cash Management Fund | 59.49 |
| Uninsured and Uncollateralized | 17,034,602.32 |
| $ 38,247,220.46 |
Fair Value Measurement – The fair value measurements of investments are required to be reported based on the hierarchy established by generally accepted accounting principles. Under GAAP, investments are required to be categorized based on the fair value of inputs of Levels 1, 2 and 3. Under Level 1 inputs, investments are required to be categorized based on quoted market prices in active markets for identical investments. Level 2 inputs are based primarily on using observable measurement criteria, including quoted market prices of similar investments in active and inactive markets and other observable corroborated factors. Level 3 inputs are assets measured at fair value on a recurring basis using significant unobservable measurement criteria based on the best information available.
Under regulatory basis of accounting, investments are measured at cost in the Township’s financial statements. However, had the financial statements been prepared in accordance with GAAP, the Township’s fair value, hierarchy level and maturities of its investments at December 31, 2017 would be as followed:
Investment Maturities (in Years)
Carrying Value Fair Value as of December 31, 2017 Less Than 1 Year
Level 1 Level 3 Total
Investment type
Mutual Funds $ 85,902.97 $ 85,902.97 - 85,902.97 $ 85,902.97
Fixed Account Investment Contract 30,650.27 - 30,650.27 30,650.27 30,650.27
Fund
Trust Fund - LOSAP $ 116,553.24 $ 85,902.97 $ 30,650.27 $116,553.24 $ 116,553.24
$ 116,553.24 $ 85,902.97 $ 30,650.27 $116,553.24 $ 116,553.24
$ 116,553.24 $ 85,902.97 $ 30,650.27 $116,553.24 $ 116,553.24
Custodial credit risk related to Investments - This is the risk that in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, the Township will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Other than the rules and
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