Page 75 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 3. Cash and Investments (Continued)

In accordance with GAAP, if the City has invested more than 5% of its investments in any one
issuer, it is exposed to credit risk. The following investments are considered exposed to credit
risk:

Federal Home Loan Mortgage Corp 6.23%

Investments guaranteed by the U.S. government and investments in mutual funds and external
investment pools are excluded from this.

Fair Value Measurement:

In accordance with GAAP, the City establishes a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. The City categorizes its fair value
measurements within the fair value hierarchy established by generally accepted accounting
principles. The hierarchy is based on the valuation inputs used to measure the fair value of
the asset.
• Level 1 inputs are quoted prices for identical assets or liabilities in active markets that
government can access at the measurement date.
• Level 2 inputs are other than quoted prices included in Level 1 that are observable for an
asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for an asset or liability.

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