The Colorado Surplus Asset Fund Trust (CSAFE) Cash portfolio is a bedrock stable $1.00 net asset value investment option for Colorado’s local governments. Established in 1988, CSAFE takes pride in the Cash Fund being fully compliant with Governmental Accounting Standard Board Statement No. 79 (GASB 79), offering local governments in Colorado a transparent and stable investment option for their operating and surplus funds. Compliance with GASB 79 demonstrates CSAFE’s ongoing commitment to protecting principal and providing ready liquidity to its participants.
Issued in 2015, GASB 79 sets forth comprehensive guidelines for qualifying external investment pools – like CSAFE – to measure investments at amortized cost rather than fair value. For a local government investment pool (LGIP) to meet GASB 79’s stringent standards, the portfolio’s securities must have maturities of 397 days or less, with a weighted average maturity of no greater than 60 days, and a weighted average life of 120 days or less. Additionally, CSAFE Cash must maintain a robust level of liquidity, with at least 10% of the pool held in daily liquid assets and 30% in weekly liquid assets.
Why is GASB 79 important for LGIPs like CSAFE? The standard allows qualifying LGIPs to use amortized cost for their financial reporting, enabling local governments to value their investments at a consistent $1.00 net asset value per share, much like money market funds. Measuring and reporting securities at amortized cost simplifies accounting, reduces volatility in financial statements, and enhances transparency for stakeholders. If an LGIP does not comply with GASB 79, it must report investments at fair value, which can introduce complexity in financial reporting.
For Colorado’s local government finance officers, treasurers, and other stakeholders, CSAFE Cash’s adherence to GASB 79 means peace of mind and straightforward financial reporting. Participants can be confident that the Trust’s investments are managed according to best-in-class industry standards through all rate environments, providing stability, liquidity, and accuracy in both daily operations and year-end reporting. GASB 79 adherence ensures CSAFE continues to serve as a reliable partner for public entities across Colorado, safeguarding resources for the communities you serve.