40.30.10.7 Non-LGIP Invest 0-90 Days (1000040)

Non-LGIP investments with a maturity date of between 0 and 90 days not deposited with the State Treasurer in the Local Government Investment Pool are considered a Cash Equivalent. The investments should be readily convertible to known amounts of cash and so near their maturity when purchased that they present insignificant risk of changes in value because of changes in interest rates.

Illustrative Entries

Purchasing Non-LGIP Invest 0-90 Days

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790 Only	285	ddddd	Voucher	1000040	1000070

Interest Earnings Distributed to All Funds and Earnings Reinvested

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790 Only	285	ddddd	Journal Entry	1000040	1000199
Distribution to Funds	ccc	ddddd	Journal Entry	1000199	4120010

Interest Retained Until Maturity

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790 Only	285	ddddd	Journal Entry	1000040	4120010

Interest Earnings Distributed to All Funds at Maturity

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790	285	ddddd	Accts Rec	1000070	4120010
Fund 790	285	ddddd	Journal Entry	4120010	1000199
Distribution to Funds	ccc	ddddd	Journal Entry	1000199	4120010

Original Investment Returned at Maturity

Fund	Class	Dept	Method	Acct DR	Acct CR
Fund 790	285	ddddd	Accts Rec	1000070	1000040

40.30.10.6 Deposits with Escrow Agents and Trustees << 40.30.10.7 >> 40.30.10.8 Investment with LGIP

ctcLink Accounting Manual | 40.30.10.7 Non-LGIP Invest 0-90 Days (1000040)