Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 69 As of March 31, 2019, the State’s composition of investments by levels within the fair value hierarchy were as follows (amounts in millions): Quoted Prices Significant in Active Other Markets for Observable Identical Assets Inputs Investment Type Fair Value (Level 1) (Level 2) Mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,123 $ 28,072 $ 51 Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 —00000 604 Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 114 73 U.S. Treasury notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 —00000 164 Government-sponsored agency bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 —00000 99 Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 —00000 1 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,178 $ 28,186 $ 992

Business-Type Activities Deposits

Lottery deposits are made in accordance with State Finance Law and State Tax Law. At March 31, 2019, Lottery had $1 billion in deposits held by the State Treasury, which were invested in the STIP. The Unemployment Insurance Benefit Fund has a total of $2.1 billion in a sole custody bank account, which is on deposit with the State Comptroller and invested in the STIP, and is subject to the same col- lateralization requirements as the State’s investments. Investments Generally, SUNY and CUNY are allowed to invest in a diverse investment portfolio. Permitted investments include, but are not limited to, obligations of the U.S. Government and its agencies, municipal debt securi- ties, repurchase agreements, corporate bonds, com- mercial paper, equity securities, mutual funds, asset-backed securities, money market funds and secu- rity lending transactions. The Lottery is authorized by State statute to invest in U.S. Government-backed obligations and New York City Transitional Finance Authority municipal bonds that provide for payment of prizes payable.

SUNY does not have a formal policy for collateral requirements for cash deposits. At June 30, 2018, SUNY had $2.4 billion in deposits held by the State Treasury and invested in the STIP, and $62 million held by other local depositories. Deposits not held in the State Treasury that are not covered by depository insurance are: uncollateralized ($65 million), collat- eralized with securities held by a pledging financial institution ($95 million), and collateralized with securities held by a pledging financial institution’s trust department or agency ($3 million). In addition, SUNY has $150 million in cash and cash equivalents deposited with bond trustees, which are registered in SUNY’s name and held by an agent or in trust accounts in SUNY’s name. CUNY’s cash and cash equivalents were held by depositories and amounted to $691 million, of which $165 million was insured and $526 million was unin- sured and uncollateralized, or collateralized with secu- rities held by the pledging financial institution, or by its trust department or agent, but not in CUNY’s name.