WEST PALM BEACH DOWNTOWN DEVELOPMENT AUTHORITY

Notes To Financial Statements

September 30, 2022

NOTE B – DEPOSITS AND INVESTMENTS (Continued)

Investment Risks (Continued) investment policies limit its investments to high quality investments to control credit risk Custodial credit risk is the risk that, in the event of the failure of the counterparty, the DDA will not be able to recover the value of its investments that are in the possession of an outside party The DDA’s investments are held by a reputable financial institution to limit exposure to custodial risk. Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an investment in a single issuer. The DDA has no specific policy for concentration of credit risk However, DDA’s investments are limited to securities backed by the full faith and credit of the United States of America. Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment The DDA did not have any exposure to foreign currency risk.

NOTE C – CAPITAL ASSETS

The capital asset activity for the year ended September 30, 2022, was as follows: