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Wisconsin Health and Educational Facilities Authority
Notes to Financial Statements
June 30, 2020 and 2019

NOTE 2 CASH AND CASH EQUIVALENTS AND INVESTMENT SECURITIES (continued)

Credit Risk

June 30, 2019
Exempt From
Investment Type Amount Disclosure AAA Aa A

U.S. government and
federal agency obligations $ 1,161,323 $ 1,011,560 $ - $ 149,763 $ -
Other commercial
asset-backed obligations 576 - 576 - -

Corporate bonds 436,268 - 24,947 381,350 29,971
Total $ 1,598,167 $ 1,011,560 $ 25,523 $ 531,113 $ 29,971
Concentration of Credit Risk
The investment policy of the Authority contains no limitations on the amount that can be
invested in any one issuer. There was one investment in one issuer (other than U.S.
Treasury Securities) that represented 5% of the total Authority’s investments held at June
30, 2020, and no investments in any one issuer (other than U.S. Treasury Securities) that
represent 5% or more of the total Authority’s investments held at June 30, 2019.

Fair Value Measurement
The Authority uses fair value measurements to record fair value adjustments to certain
assets and liabilities and to determine fair value disclosures.

The Authority follows an accounting standard that defines fair value, establishes a
framework for measuring fair value, establishes a fair value hierarchy based on the quality
of inputs used to measure fair value, and requires expanded disclosures about fair value
measurements. In accordance with this standard, the Authority has categorized its
investments, based on the priority of the inputs to the valuation technique, into a three-
level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall
within different levels of the hierarchy, the categorization is based on the lowest level input
that is significant to the fair value measurement of the instrument.

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