tailieunhanh - REPORT NO. 2011-080 JANUARY 2011 DEPARTMENT OF THE LOTTERY Financial Audit _part4

BÁO CÁO KHÔNG. 2011-080 Chứng khoán được ủy quyền bao gồm chủ yếu là giấy chứng nhận tiền gửi, doanh nghiệp và ghi chú trung hạn, assetbacked chứng khoán, và các thỏa thuận mua lại. Tài sản thế chấp bằng tiền mặt đầu tư thường có kỳ hạn ngắn hơn so với chứng khoán cho mượn. | January 2011 report no. 2011-080 Authorized securities include primarily certificates of deposit corporate and medium term notes asset-backed securities and repurchase agreements. The invested cash collateral generally has a shorter maturity than the securities on loan. A risk factor associated with this lending agreement is the potential for declines in the value of the investment holdings purchased with the cash collateral. If these investments must be liquidated any shortfall between the value of the investments and the securities lending obligation becomes the responsibility of the Lottery. As of June 30 2009 the total unrealized shortfall was 45 million. For the fiscal year 2009-10 a net realized loss of million is reported with unrealized gains and losses in the Statement of Revenues Expenses and Changes in Net Assets as Net appreciation depreciation in fair value of investments. This loss is due to a decline in value of various mortgage-backed investments held by the SBA on behalf of the Lottery. The recovery in value of these investments was not considered probable. Therefore the underlying securities were sold and the resulting loss realized. As of June 30 2010 the total unrealized shortfall was 8 million. Other risk factors associated with security lending include counterparty default and failure of the custodial bank to indemnify the Lottery. Securities lending income and expenses for the years ended June 30 2010 and 2009 consisted of in thousands 2010 2009 Securities lending income 2 909 18 183 Less broker rebates 1 483 7 835 Less bank fees 37 1 145 Net securities lending revenue 1 389 9 203 d. Investment Credit Risk Lottery grand prizewinner investments have been limited to . Government guaranteed securities. The State Treasury Investment Pool s current rating by Standard and Poor s is Af Listed below are the Standard and Poor s credit ratings for the lending program s invested cash collateral in thousands This is trial version