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CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />The primary government's management cannot transfer budgeted appropriations between object <br />classifications of a budget without approval of the Common Council. The Department of Local <br />Government Finance must approve any revisions to the appropriations for any fund or any department <br />of the General Fund. The legal level of budgetary control is by object and department within the fund <br />for the General Fund and by object within the fund for all other budgeted funds. <br />Expenditures did not exceed appropriations for any funds or any departments within the General Fund <br />or within the Park and Recreation Fund, or within any other nonmajor governmental fund which <br />required legally, approved budgets. <br />B. Deficit Fund Equity <br />At December 31, 2005, the following funds reported deficits in fund equity, which are violations of <br />State statute: <br />Deficit <br />Governmental funds: <br />Football Hall of Fame Operating $ (1,748,899) <br />Enterprise funds (net assets): <br />Blackthorn Golf Course (988,666) <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 />Ill. 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, 2005, the bank balances held at Wells Fargo <br />Bank NA and at Deutsche Bank Trust Company Americas in the amounts of $3,593,033 and <br />$452,160 were collateralized with securities held by the pledging financial institution's trust <br />department or agent but not in the depositor - City's name. The remaining bank balances were <br />insured by the Federal Deposit Insurance Corporation or the Public Deposit Insurance Fund, <br />which 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, 2005, <br />the City had the following investments: <br />35 <br />