GASB 79 provides important safety guardrails and liquidity minimums. It is today’s gold standard for public funds cash management.
Key features include:
Mandated Liquidity Floors vs. Manager Discretion:
GASB 79 mandates strict 10% daily and 30% weekly liquidity minimums designed to withstand severe, simultaneous redemption shocks. Non-compliant fair value pools manage their cash buffers strictly at their own discretion, meaning your liquidity relies on human judgment rather than binding portfolio guardrails.
Elimination of Complex GASB 72 Audit Disclosures:
Because GASB 79 pools handle compliance entirely at the fund level, participants are legally permitted to record their holdings at a stable amortized cost. This eliminates the need for complex “fair value” asset
tiering footnotes (Levels 1, 2, or 3) in your local government’s annual comprehensive financial report for its LGIP investments.
Born from the Lessons of the Financial Crisis:
GASB 79 is the public sector’s direct response to the SEC’s money market reforms (Rule 2a-7) following the global financial crisis of 2008. It was specifically engineered to insulate local governments from the structural
vulnerabilities exposed during the crisis.
Automated Early-Warning Triggers:
Compliant pools are legally required to conduct rigorous, ongoing “shadow pricing” to check that amortized cost stays within 0.5% of real-time market value. If a portfolio begins to deviate, GASB 79 forces automatic
corrective transparency – offering public fund managers a built-in risk indicator that fair value pools lack.
Protection Beyond Ratings:
A pool can maintain a standard AAAm rating without being GASB 79-compliant. GASB 79 compliance serves as a completely independent, public-sector-specific framework that guarantees all participants operate under the exact same ultra-conservative standard.
| GASB 79-Compliant Pools | Fair Value Pools | |
|---|---|---|
| Consistent Treatment Across Participants | ✓ | ✕ |
| Amortized Cost Reporting | ✓ | ✕ |
| Valuation Judgement | none | subject to pricing vendors |
| WAM Limits | 60-day max | manager discretion |
| WAL Limits | 120-day max | manager discretion |
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.
To see if CSAFE Cash, a GASB 79-compliant pool, is right for your local government, please contact us here.
Important Disclosures
This material is provided for informational purposes only and should not be used in making any investment decisions. It is not an offer, recommendation, or solicitation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any information regarding specific investment products is subject to change without notice. Please review the CSAFE Information Statement before investing.
Neither Ridgeline Public Advisors, LLC nor the Colorado Surplus Asset Fund Trust is a bank, and investments are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although CSAFE Cash seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. Similarly, while CSAFE Colorado Core seeks to maintain a transactional share price of $2.00 per share, it cannot guarantee it will do so. Investment involves risk, including the possible loss of principal. Past performance is no guarantee of future results, and no assurance can be given that the performance objectives of a given strategy will be achieved. Any financial and/or investment decision may incur losses.
Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose.