UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-7410
Exact name of registrant as specified in charter: Delaware Investments
Florida Insured
Municipal Income Fund, Inc.
Address of principal executive offices: 2005 Market Street
Philadelphia, PA 19103
Name and address of agent for service: David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant's telephone number, including area code: (800) 523-1918
Date of fiscal year end: March 31
Date of reporting period: June 30, 2006
Item 1. Schedule of Investments (Unaudited)
Schedule of Investments (Unaudited)
Delaware Investments Florida Insured Municipal Income Fund
__________________________________________________________
June 30, 2006
Principal Market
Amount Value
Municipal Bonds - 155.24%
Education Revenue Bonds - 3.65%
Florida Agriculture & Mechanical University Revenue (Student Apartment Facility)
5.625% 7/1/21 (MBIA) $1,250,000 $1,264,125
__________
1,264,125
_________
Electric Revenue Bonds - 5.82%
JEA Electric Systems Revenue Series 3-A 5.00% 10/1/34 (FSA) 2,000,000 2,017,760
_________
2,017,760
_________
Health Care Revenue Bonds - 18.05%
Escambia County Health Facilities Authority (Florida Health Care Facilities - VHA
Program) 5.95% 7/1/20 (AMBAC) 355,000 371,060
Lee County Memorial Health System Board of Directors Series A 5.00% 4/1/20 (FSA) 1,000,000 1,020,200
Miami-Dade County Public Facilities Revenue (Jackson Health Systems) Series A
5.00% 6/1/35 (MBIA) 1,500,000 1,527,495
Orange County Health Facilities Authority Revenue (Orlando Regional Healthcare)
Series A 6.25% 10/1/18 (MBIA) 2,000,000 2,317,520
South Broward Hospital Refunding 5.00% 5/1/35 (MBIA) 1,000,000 1,019,010
_________
6,255,285
_________
Housing Revenue Bonds - 23.69%
Broward County Housing Finance Authority (St. Croix Apartments Project) Series A
5.45% 11/1/36 (FSA) (AMT) 935,000 950,540
Florida Housing Finance Agency
(Homeowner Mortgage) Series 2 5.90% 7/1/29 (MBIA)(AMT) 485,000 493,517
(Leigh Meadows Apartments HUD) Series N 6.30% 9/1/36 (AMBAC)(AMT) 2,510,000 2,561,404
(Woodbridge Apartments Project) Series L
6.05% 12/1/16 (AMBAC) (AMT) 1,120,000 1,142,322
6.25% 6/1/36 (AMBAC)(AMT) 1,500,000 1,532,805
Volusia County Multifamily Housing Finance Authority (San Marco Apartments) Series A
5.60% 1/1/44 (FSA) (AMT) 1,500,000 1,528,665
_________
8,209,253
_________
Lease Revenue Bonds - 16.94%
Broward County School Board Certificates of Participation Series A 5.25% 7/1/24 (FSA) 1,000,000 1,047,530
Florida State Municipal Loan (Council Revenue) Series A 5.00% 2/1/35 (MBIA) 2,000,000 2,034,140
Orange County School Board Certificates of Participation Series A 5.00% 8/1/27 (MBIA) 1,250,000 1,267,950
Palm Beach County School Board Certificates of Participation Series D 5.00% 8/1/28 (FSA) 1,500,000 1,519,950
_________
5,869,570
_________
Local General Obligation Bonds - 0.87%
Julington Creek Plantation Community Development District Special Assessment
5.00% 5/1/29 (MBIA) 295,000 299,847
_______
299,847
_______
$ Pre-Refunded Bonds - 20.84%
Florida State Board of Education (Capital Outlay Public Education) Series C 6.00% 6/1/21-10 (FGIC) 2,000,000 2,166,740
Indian River County Water & Sewer Revenue 5.50% 9/1/16-06 (FGIC) 1,000,000 1,022,570
Sunrise Utility System Revenue Series A 5.75% 10/1/26-06 (AMBAC) 1,900,000 1,928,158
Tampa Utility Tax Improvement Series A 6.125% 10/1/19-09 (AMBAC) 1,000,000 1,076,260
Village Center Community Development District Recreational Revenue Series A 5.85% 11/1/16-06 (MBIA) 1,000,000 1,026,700
_________
7,220,428
_________
Special Tax Revenue Bonds - 28.76%
Flagler County Capital Improvements Revenue 5.00% 10/1/35 (MBIA) 1,000,000 1,021,850
Florida State Department of Transportation 5.00% 7/1/31 (FGIC) 1,525,000 1,554,311
Jacksonville Sales Tax Revenue 5.00% 10/1/30 (MBIA) 1,500,000 1,530,510
Jacksonville Transportation Revenue 5.25% 10/1/29 (MBIA) 2,000,000 2,075,959
Miami Beach Resort Tax Revenue 5.50% 10/1/16 (AMBAC) 1,000,000 1,023,700
{ Miami-Dade County Special Obligation (Capital Appreciation & Income) Series B 5.00% 10/1/35 (MBIA) 2,000,000 1,739,760
Seminole County Sales Tax Revenue 5.00% 10/1/31 (MBIA) 1,000,000 1,018,100
_________
9,964,190
_________
State General Obligation Bonds - 5.90%
Florida State Board Education Public Education (Capital Outlay) Series C 5.00% 6/1/34 (AMBAC) 2,000,000 2,043,380
_________
2,043,380
_________
Transportation Revenue Bonds - 15.40%
Dade County Aviation Revenue Series B 5.60% 10/1/26 (MBIA) 1,000,000 1,023,250
Florida Ports Financing Commission State Transportation Trust Fund 5.375% 6/1/27 (MBIA) (AMT) 1,000,000 1,019,120
Miami-Dade County Aviation Revenue (Miami International Airport) Series B 5.00% 10/1/37 (FGIC) 2,250,000 2,274,998
Miami-Dade County Expressway Authority Toll Systems Revenue Series B 5.00% 7/1/33 (FGIC) 1,000,000 1,020,150
_________
5,337,518
_________
Water and Sewer Revenue Bonds - 15.32%
JEA Water & Sewer Systems Revenue Sub-Second Crossover 5.00% 10/1/25 (MBIA) 1,000,000 1,025,410
Riviera Beach Utilities Special District Water & Sewer Revenue 5.00% 10/1/34 (FGIC) 1,200,000 1,224,060
Village Center Community Development District Utility Revenue 5.00% 10/1/36 (MBIA) 1,500,000 1,521,660
Winter Haven Utilities Systems Revenue Refunding & Improvement 5.00% 10/1/30 (MBIA) 1,500,000 1,537,305
_________
5,308,435
_________
Total Municipal Bonds (cost $52,883,779) 53,789,791
__________
Total Market Value of Securities - 155.24%
(cost $52,883,779) 53,789,791
Receivables and Other Assets Net of Liabilities (See Notes) - 2.48% 858,443
Liquidation Value of Preferred Stock - (57.72%) (20,000,000)
___________
Net Assets Applicable to 2,422,200 Shares Outstanding - 100.00% $34,648,234
___________
$ Pre-Refunded Bonds. Pre-Refunded Bonds are municipals that are generally backed or secured by U.S. Treasury bonds. For
Pre-Refunded Bonds, the stated maturity is followed by the year in which the bond is pre-refunded. See Note 3 in "Notes."
{ Step coupon bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the
stated interest rate becomes effective.
Summary of Abbreviations:
AMBAC - Insured by the AMBAC Assurance Corporation
AMT - Subject to Alternative Minimum Tax
FGIC - Insured by the Financial Guaranty Insurance Company
FSA - Insured by Financial Security Assurance
MBIA - Insured by the Municipal Bond Insurance Association
VHA - Veterans Health Administration
________________________________________________________________________________
Notes
1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted
accounting principles and are consistently followed by Delaware Investments
Florida Insured Municipal Income Fund (the "Fund").
Security Valuation - Long-term debt securities are valued by an independent
pricing service and such prices are believed to reflect the fair value of such
securities. Short-term debt securities having less than 60 days to maturity are
valued at amortized cost, which approximates market value. Other securities and
assets for which market quotations are not readily available are valued at fair
value as determined in good faith under the direction of the Fund's Board of
Trustees. In determining whether market quotations are readily available or fair
valuation will be used, various factors will be taken into consideration, such
as market closures, aftermarket trading or significant events after local market
trading (e.g., government actions or pronouncements, trading volume or
volatility on markets, exchanges among dealers, or news events).
Federal Income Taxes - The Fund intends to continue to qualify for federal
income tax purposes as a regulated investment company and make the requisite
distributions to shareholders. Accordingly, no provision for federal income
taxes has been made in the financial statements.
Use of Estimates - The preparation of financial statements in conformity with
U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Other - Expenses common to all funds within the Delaware Investments(R) Family
of Funds are allocated amongst the funds on the basis of average net assets.
Management fees and some other expenses are paid monthly. Security transactions
are recorded on the date the securities are purchased or sold (trade date) for
financial reporting purposes. Costs used in calculating realized gains and
losses on the sale of investment securities are those of the specific securities
sold. Interest income is recorded on the accrual basis. Discounts and premiums
are amortized to interest income over the lives of the respective securities.
The Fund declares and pays dividends from net investment income monthly and
distributions from net realized gain on investments, if any, annually. In
addition, in order to satisfy certain distribution requirements of the Tax
Reform Act of 1986, the Fund may declare special year-end dividend and capital
gains distributions during November or December to shareholders of record on a
date in such month. Such distributions, if received by shareholders by January
31, are deemed to have been paid by the Fund and received by shareholders on the
earlier of the date paid or December 31 of the prior year.
2. Investments
At June 30, 2006, the cost of investments for federal income tax purposes has
been estimated since the final tax characteristics cannot be determined until
fiscal year end. At June 30, 2006, the cost of investments and unrealized
appreciation (depreciation) for the Fund were as follows:
Cost of investments $52,883,779
___________
Aggregate unrealized appreciation 1,360,796
Aggregate unrealized depreciation (454,784)
_____________
Net unrealized appreciation $ 906,012
___________
3. Credit and Market Risk
The Fund uses leverage in the form of preferred shares. Leveraging may result in
a higher degree of volatility because the Fund's net asset value could be more
sensitive to fluctuations in short-term interest rates and changes in market
value of portfolio securities attributable to the leverage.
The Fund concentrates its investments in securities issued by municipalities.
The value of these investments may be adversely affected by new legislation
within the state, regional or local economic conditions, and differing levels of
supply and demand for municipal bonds. Many municipalities insure repayment for
their obligations. Although bond insurance reduces the risk of loss due to
default by an issuer, such bonds remain subject to the risk that market value
may fluctuate for other reasons and there is no assurance that the insurance
company will meet its obligations. These securities have been identified in the
Schedule of Investments.
The Fund may invest in inverse floating rate securities ("inverse floaters"), a
type of derivative tax-exempt obligation with floating or variable interest
rates that move in the opposite direction of short-term interest rates, usually
at an accelerated speed. Consequently, the market values of inverse floaters
will generally be more volatile than other tax-exempt investments. Such
securities are identified on the Schedule of Investments.
The Fund may invest in advanced refunded bonds, escrow secured bonds or defeased
bonds. Under current federal tax laws and regulations, state and local
government borrowers are permitted to refinance outstanding bonds by issuing new
bonds. The issuer refinances the outstanding debt to either reduce interest
costs or to remove or alter restrictive covenants imposed by the bonds being
refinanced. A refunding transaction where the municipal securities are being
refunded within 90 days from the issuance of the refunding issue is known as a
"current refunding". "Advance refunded bonds" are bonds in which the refunded
bond issue remains outstanding for more than 90 days following the issuance of
the refunding issue. In an advance refunding, the issuer will use the proceeds
of a new bond issue to purchase high grade interest bearing debt securities
which are then deposited in an irrevocable escrow account held by an escrow
agent to secure all future payments of principal and interest and bond premium
of the advance refunded bond. Bonds are "escrowed to maturity" when the proceeds
of the refunding issue are deposited in an escrow account for investment
sufficient to pay all of the principal and interest on the original interest
payment and maturity dates. Bonds are considered "pre-refunded" when the
refunding issue's proceeds are escrowed only until a permitted call date or
dates on the refunded issue with the refunded issue being redeemed at the time,
including any required premium. Bonds become "defeased" when the rights and
interests of the bondholders and of their lien on the pledged revenues or other
security under the terms of the bond contract are substituted with an
alternative source of revenues (the escrow securities) sufficient to meet
payments of principal and interest to maturity or to the first call dates.
Escrowed secured bonds will often receive a rating of AAA from Moody's, S&P,
and/or Fitch Ratings due to the strong credit quality of the escrow securities
and the irrevocable nature of the escrow deposit agreement.
The Fund may invest up to 15% of its total assets in illiquid securities, which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of these securities may impair the Fund from disposing of them in a
timely manner and at a fair price when it is necessary or desirable to do so.
While maintaining oversight, the Fund's Board of Trustees has delegated to
Delaware Management Company the day-to-day functions of determining whether
individual Rule 144A securities are liquid for purposes of the Fund's limitation
on investments in illiquid assets. At June 30, 2006, there were no Rule 144A
securities and no securities have been determined to be illiquid under the
Fund's Liquidity Procedures.
Item 2. Controls and Procedures.
The registrant's principal executive officer and principal financial
officer have evaluated the registrant's disclosure controls and procedures
within 90 days of the filing of this report and have concluded that they are
effective in providing reasonable assurance that the information required to be
disclosed by the registrant in its reports or statements filed under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in the rules and forms of the Securities and
Exchange Commission.
There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal quarter
(the registrant's second fiscal half-year in the case of an annual report) that
have materially affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 3. Exhibits.
File as exhibits as part of this Form a separate certification for each
principal executive officer and principal financial officer of the registrant as
required by Rule 30a-2(a) under the Act (17 CFR 270.30a -2(a)), exactly as set
forth below:
SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Delaware Investments Florida Insured Municipal Income Fund, Inc.
/s/ Patrick P. Coyne
_____________________
By: Patrick P. Coyne
Title: Chief Executive Officer
Date: August 30, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Patrick P. Coyne
_____________________
By: Patrick P. Coyne
Title: Chief Executive Officer
Date: August 30, 2006
/s/ Michael P. Bishof
_____________________
By: Michael P. Bishof
Title: Chief Financial Officer
Date: August 30, 2006