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CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />B. Deficit Fund Equity <br />At December 31, 2006, the following funds reported deficits in fund equity, which are violations of <br />state statute: <br />Deficit <br />Governmental funds: <br />Redevelopment Bond -Studebaker $ (7,828) <br />Football Hall of Fame Capital (1,250,000) <br />Enterprise funds (net assets): <br />Blackthorn Golf Course (1,225,424) <br />Fund equity deficits arose primarily from expenditures or expenses exceeding revenues due to the <br />underestimate of current requirements. It is anticipated that these deficits will be repaid from future <br />revenues. <br />III. Detailed Notes on All Funds <br />A. Deposits and Investments <br />1. Deposits <br />Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may <br />not be returned to it. Indiana Code 5-13-8-1 allows a political subdivision of the State of Indiana <br />to deposit public funds in a financial institution only if the financial institution is a depository <br />eligible to receive state funds; and has a principal office or branch that qualifies to receive public <br />funds of the political subdivision. At December 31, 2006, the bank balances held at Wells Fargo <br />Bank NA, The Bank of New York Trust Company, NA, LaSalle Bank, and at Deutsche Bank Trust <br />Company Americas in the amounts of $2,126,247, $782,182, $381,946, and $160,316, respec- <br />tively, were collateralized with securities held by the pledging financial institution's trust depart- <br />ment oragent but not in the depositor-City's name. The remaining bank balances were insured <br />by the Federal Deposit Insurance Corporation or the Public Deposit Insurance Fund, which <br />covers all public funds held in approved depositories. <br />2. Investments <br />Authorization for investment activity is stated in Indiana Code 5-13. As of December 31, 2006, <br />the City had the following investments: <br />Primary <br />Government Investment Maturities (in Years) <br />Investment Fair Less More <br />Type Value Than 1 1-2 Than 2 <br />U.S. Treasuries and Securities $ 1,787,219 $ 1,787,219 $ - $ - <br />53 <br />