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HomeMy WebLinkAboutFinance Committee Agenda Packet - September 14, 2023CITY OF NEWPORT BEACH FINANCE COMMITTEE AGENDA Community Room - 100 Civic Center Drive Thursday, September 14, 2023 - 3:00 PM Finance Committee Members: Will O'Neill, Chair Noah Blom, Mayor Joe Stapleton, Council Member Allan Cashion, Committee Member William Collopy, Committee Member Keith Curry, Committee Member Nancy Scarbrough, Committee Member Staff Members: Grace K. Leung, City Manager Jason Al-Imam, Finance Director/Treasurer Michael Gomez, Deputy Finance Director Brittany Cleberg, Administrative Assistant NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance Director/Treasurer 24 hours prior to the scheduled Finance Committee meeting. NOTICE REGARDING PUBLIC PARTICIPATION Questions and comments may also be submitted in writing for the Finance Committee’s consideration by sending them to Jason Al-Imam, Finance Director/Treasurer, at jalimam@newportbeachca.gov. To give the Finance Committee adequate time to review your questions and comments, please submit your written comments by no later than 5 p.m. the day prior to the Finance Committee meeting. All correspondence will be made part of the record. NOTICE TO THE PUBLIC The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that their agenda be posted at least twenty-four (24) hours in advance of each special meeting and that the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within the subject matter jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount of time, generally three (3) minutes per person. It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act (“ADA”) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Please contact the City Clerk’s Office at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3127 or jalimam@newportbeachca.gov. 1 September 14, 2023 Page 2 Finance Committee Meeting I.CALL MEETING TO ORDER II.ROLL CALL III.PUBLIC COMMENTS Public comments are invited on agenda and non-agenda items generally considered to be within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The Finance Committee has the discretion to extend or shorten the speakers’ time limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all speakers. As a courtesy, please turn cell phones off or set them in the silent mode. IV.CONSENT CALENDAR MINUTES OF JULY 26, 2023A. Recommended Action: Approve and file. MINUTES OF JULY 26, 2023 V.CURRENT BUSINESS ANNUAL REVIEW OF INVESTMENT POLICYA. Summary: Consistent with Section K-2 of Council Policy F-1, Statement of Investment Policy (the Policy), the Finance Department has completed an annual review of the Policy to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, as well as its relevance to current law and financial and economic trends. Certain changes to the Policy are proposed based on recent changes to the California Government Code, and to add the California Asset Management Program Cash Reserve Portfolio as a permissible investment. Recommended Action: Review and discuss this report and recommend that the City Council formally approve the proposed changes by adopting a resolution. These changes are in furtherance of the City’s investment objectives. STAFF REPORT ATTACHMENT A ADDITIONAL MATERIALS RECEIVED 2 September 14, 2023 Page 3 Finance Committee Meeting ANNUAL REVIEW OF INVESTMENT PERFORMANCEB. Summary: A representative from Chandler Asset Management, the City’s investment advisor, will report on the performance of the City’s investment portfolio for the fiscal year ending June 30, 2023. Recommended Action: Receive and file. ATTACHMENT A INTERNAL AUDIT PROGRAMC. Summary: Progress update on the internal audit program. Recommended Action: Receive and file. STAFF REPORT ATTACHMENT A ATTACHMENT B ATTACHMENT C ATTACHMENT D ATTACHMENT E ATTACHMENT F ADDITIONAL MATERIALS RECEIVED BUDGET AMENDMENTS FOR QUARTER ENDING JUNE 30, 2023D. Summary: Staff will report on the budget amendments from the prior quarter. Recommended Action: Receive and file. STAFF REPORT ATTACHMENT A 3 September 14, 2023 Page 4 Finance Committee Meeting WORK PLAN REVIEWE. Summary: Staff and Finance Committee to review the proposed work plan and identify matters that members would like placed on a future Agenda for discussion, action, or report. Recommended Action: Receive and file. WORK PLAN VI.ADJOURNMENT 4 Finance Committee Special Meeting Minutes July 26, 2023 Page 1 of 4 CITY OF NEWPORT BEACH FINANCE COMMITTEE JULY 26, 2023 SPECIAL MEETING MINUTES I. CALL MEETING TO ORDER The special meeting was called to order at 3:01 p.m. II. ROLL CALL PRESENT: Will O’Neill, Chair Joe Stapleton, Council Member William Collopy, Committee Member Keith Curry, Committee Member Nancy Scarbrough, Committee Member (arrived at approximately 3:06 p.m.) ABSENT: Noah Blom, Mayor (excused) Allen Cashion, Committee Member (excused) STAFF PRESENT: Grace K. Leung, City Manager; Jason Al-Imam, Finance Director/Treasurer; Michael Gomez, Deputy Finance Director; Shelby Burguan, Budget Manager; Jessica Nguyen, Budget Analyst; Mark Vukojevic, Utilities Director; and Brittany Cleberg, Administrative Assistant MEMBERS OF THE PUBLIC: Jim Mosher Laura Curran OTHER ENTITIES: III. PUBLIC COMMENTS Chair O’Neill opened public comments on the consent calendar and non-agenda items. Seeing none, Chair O’Neill closed public comments. IV. CONSENT CALENDAR A. MINUTES OF MAY 11, 2023 Recommended Action: Approve and file. MOTION: Collopy moved to approve the minutes of May 11, 2023, as amended, seconded by Stapleton. The motion carried as follows: AYES: Collopy, Stapleton, O’Neill NOES: None ABSENT: Blom (excused), Cashion (excused), ABSTAIN: Curry Upon the arrival of Committee Member Scarbrough, Chair O’Neill reopened this item for voting. The final vote is listed below. MOTION: Collopy moved to approve the minutes of May 11, 2023, seconded by Stapleton. The motion carried as follows: 5 Finance Committee Special Meeting Minutes July 26, 2023 Page 2 of 4 AYES: Collopy, Scarbrough, Stapleton, O’Neill NOES: None ABSENT: Blom (excused), Cashion (excused), ABSTAIN: Curry B. MINUTES OF MAY 31, 2023 Recommended Action: Approve and file. MOTION: Collopy moved to approve the minutes of May 31, 2023, seconded by Stapleton. The motion carried as follows: AYES: Collopy, Stapleton, O’Neill NOES: None ABSENT: Blom (excused), Cashion (excused), Scarbrough ABSTAIN: Curry Upon the arrival of Committee Member Scarbrough, Chair O’Neill reopened this item for voting. The final vote is listed below. MOTION: Collopy moved to approve the minutes of May 31, 2023, as amended, seconded by Stapleton. The motion carried as follows: AYES: Collopy, Scarbrough, Stapleton, O’Neill NOES: None ABSENT: Blom (excused), Cashion (excused), ABSTAIN: Curry V. CURRENT BUSINESS A. 2023 WATER AND WASTEWATER RATES Recommended Action: 1. Review the water and wastewater enterprise fund financial analysis and 2023 Draft Water and Wastewater Rate Study information; Provide input to staff; 2. Forward the item to City Council for discussion and consideration. Utilities Director Mark Vukojevic gave a presentation detailing the system’s cost structure and rate history. Committee and staff discussion ensued on water rates including definition of “production,” the existing structural deficit with rates, the length of time the structural deficit has been building, the growth of the system, the cyclical nature of revenue surplus and deficits, rate of water usage in various years, water usage forecasts in upcoming years, authority to pump water from other districts at lower costs, water pumping percentage limitations for Newport Beach, impacts of inflation, complexities of the water system infrastructure, existing reserve fund policies related to cash flow for use in catastrophic situations, the three main categories of reserves, incremental adjustments to rates, the status of of the water meter change outs project and related savings and costs. Committee and staff discussion ensued on wastewater rates including equitable costs based on customer class and the type of study which would need to be conducted to determine such, comparisons with other similar agencies, the impacts of inflation, and the low number of Proposition 218 objections and other feedback received. Chair O’Neill opened public comment. 6 Finance Committee Special Meeting Minutes July 26, 2023 Page 3 of 4 Jim Mosher requested clarification on the metrics and calculations used for wastewater rates. He requested clarification as to whether the proportional rate charge for water was used to encourage conservation and whether that process was allowable under Proposition 218. Laura Curran inquired if the City could provide a “roll up” which would show the revenue and costs over five years for “O and M,” capital improvements, and the drought. She requested projected revenues and costs as compared to reserves. Additionally, she inquired whether water bills could include daily usage for clarification purposes. Chair O’Neill closed public comment. Utilities Director Mark Vukojevic responded that the City’s online portal includes hour-by-hour water usage for properties, “roll up” costs will be in the report presented to the City Council, and that the five-year period numbers requested by the speaker are available in the 2019 water rate study. Chair O’Neill suggested projected cost revenue would be a good item to include in the report to City Council on this matter, as well as projected expenditures. City staff further responded the City maintains a variable component which encourages conservation, and fixed costs must be justified with calculations provided. The City seeks to move the needle as related to rate structures incrementally. Additionally, the City’s objective is to keep the methodology simple for easy understanding of the rate method. MOTION: Curry moved to forward the proposed 2023 water and wastewater rates to the City Council for discussion and consideration, seconded by Scarbrough. The motion carried as follows: AYES: Collopy, Curry, Scarbrough, Stapleton, O’Neill NOES: None ABSENT: Blom (excused), Cashion (excused) ABSTAIN: None B. FINANCIAL STATEMENT AUDITOR’S COMMUNICATION WITH THE FINANCE COMMITTEE ACTING AS THE CITY’S AUDIT COMMITTEE Recommended Action: Receive and file. Mark Davis, representing the City’s Auditor Davis Farr, gave a presentation and provided a summary of the initial communication, as included in the publicly noticed agenda report. Discussion ensued regarding the length of time a particular auditor is utilized, policies on the rotation of auditors, and the types of typical issues found in agencies in terms of compliance or procedural laxity. Chair O’Neill opened public comment. Laura Curran inquired as to the size of Newport Beach from the auditor’s perspective. City staff responded the City is considered a large organization due to its complexity. Jim Mosher inquired whether the auditing function verifies that expenses charged internally are going to the account that was intended in the budget and being properly accounted for in the budgeting process. He expressed that the link to the budget document the Council actually votes on each year is unavailable subsequent to the publication of the adopted budget. 7 Finance Committee Special Meeting Minutes July 26, 2023 Page 4 of 4 Mr. Davis provided input as to audit requirements as related to the City budget and financial statements, including review of budgeted expenditures as compared to actual expenditures. Chair O’Neill closed public comment. This item was received and filed. There was no further action taken. C. WORK PLAN REVIEW Recommended Action: Receive and file. A summary of items scheduled for upcoming meetings was provided as listed in the publicly noticed agenda report. Discussion ensued on scheduling reviews of individual City departments. There was general consensus to schedule a review of the Fire Department, focused on their financials. Council Member Stapleton submitted a request for an excused absence from the September meeting. Chair O’Neill opened public comment. Jim Mosher commented the strategic plan is something completely different than the fiscal sustainability plan and that the Finance Committee has not yet reviewed the Office of the City Attorney. Chair O’Neill closed public comment. This item was received and filed. There was no further action taken. IV. ADJOURNMENT The Finance Committee meeting adjourned at 4:13 p.m. Attest: ___________________________________ _____________________ Will O’Neill, Chair Date Finance Committee 8 CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT Agenda Item No. 5A September 14, 2023 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE FROM: Finance Department Jason Al-Imam, Finance Director/Treasurer 949-644-3123, jalimam@newportbeachca.gov SUBJECT: ANNUAL REVIEW OF INVESTMENT POLICY SUMMARY: Consistent with Section K-2 of Council Policy F-1, Statement of Investment Policy (the Policy), the Finance Department has completed an annual review of the Policy to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, as well as its relevance to current law and financial and economic trends. The investment of City funds is governed by the California Government Code (Sections 53600-53610), which prescribes the investment vehicles in which local agencies are permitted to invest available funds. Staff, working with the City’s investment advisor Chandler Asset Management (Chandler), has completed a comprehensive review of the Policy including compliance with relevant sections of the Government Code, as well as, incorporating best investment practices. Certain changes to the Policy are proposed based on recent changes to the California Government Code, and to add the California Asset Management Program Cash Reserve Portfolio as a permissible investment. RECOMMENDED ACTION: Review and discuss this report and recommend that the City Council formally approve the proposed changes by adopting a resolution. These changes are in furtherance of the City’s investment objectives. DISCUSSION: California Government Code Section 53600.5 mandates that the City Treasurer shall follow three objectives when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds. The primary objective of the City Treasurer shall be to safeguard the principal of the funds under his or her control. The 9 Annual Review of Investment Policy September 14, 2023 Page 2 secondary objective shall be to meet the liquidity needs of the City. The third objective shall be to achieve a market rate of return on the funds under his or her control. Guided by the Policy and constrained by California Government Code, the City’s core investment objectives are to provide safety of the invested principal by maintaining a well- diversified, high-quality portfolio of liquid assets while earning a market rate of return commensurate with the City’s conservative risk profile. Based on Chandler’s recent review of the City’s Investment Policy, the following changes are proposed, which include relevant provisions from California Senate Bill No. 1489 (SB 1489), the Local Government Omnibus Act of 2022, which became effective January 1, 2023: • Authorized Investments and Glossary of Investment Terms – Specify that, per SB 1489, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity (rather than trade date). • Investments Specifically Not Permitted – Specify that, per SB 1489, the purchase of securities with a forward settlement date cannot exceed 45 days from the time of investment. The following change is also recommended to allow for an alternative investment vehicle for the City’s liquid cash: • California Asset Management Program (CAMP) Cash Reserve Portfolio – Specify that CAMP’s Cash Reserve Portfolio is a permissible investment. CAMP is a California Joint Powers Authority (“JPA”) that was established in 1989, which provides public agencies with professional investment services. CAMP is governed by California Government Code Section 53601, which also applies to the investments held by the City. The two primary objectives of CAMP’s Cash Reserve Portfolio are liquidity and safety of principal, followed by earning a competitive yield. CAMP’s Cash Reserve Portfolio is rated AAAm by Standard & Poor’s (S&P), which is the highest principal stability fund rating assigned by S&P. Prepared and Submitted by: /s/ Jason Al-Imam _____________________________ Jason Al-Imam Finance Director/Treasurer ATTACHMENT: Attachment A – Statement of Investment Policy with Redlined Changes 10 ATTACHMENT A STATEMENT OF INVESTMENT POLICY WITH REDLINE CHANGES 11 F-1 STATEMENT OF INVESTMENT POLICY PURPOSE: The City Council has adopted this Investment Policy (the Policy) in order to establish the scope of the investment policy, investment objectives, standards of care, authorized investments, investment parameters, reporting, investment policy compliance and adoption, and the safekeeping and custody of assets. This Policy is organized in the following sections: A. Scope of Investment Policy 1. Pooling of Funds 2. Funds Included in the Policy 3. Funds Excluded from the Policy B. Investment Objectives 1. Safety 2. Liquidity 3. Yield C. Standards of Care 1. Prudence 2. Ethics and Conflicts of Interest 3. Delegation of Authority 4. Internal Controls D. Banking Services E. Broker/Dealers F. Safekeeping and Custody of Assets G. Authorized Investments 1. Investments Specifically Permitted 2. Investments Specifically Not Permitted 3. Exceptions to Prohibited and Restricted Investments H. Investment Parameters 1. Diversification 2. Maximum Maturities 3. Credit Quality 4. Competitive Transactions I. Portfolio Performance J. Reporting K. Investment Policy Compliance and Adoption 1. Compliance 2. Adoption 1 12 2 F-1 A. SCOPE OF INVESTMENT POLICY 1. Pooling of Funds All cash shall be pooled for investment purposes. The investment income derived from the pooled investment shall be allocated to the contributing funds, net of all banking and investing expenses, based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually. 2. Funds Included in the Policy The provisions of this Policy shall apply to all financial assets of the City as accounted for in the City’s Comprehensive Annual Financial Report, including; a) General Fund b) Special Revenue Funds c) Capital Project Funds d) Enterprise Funds e) Internal Service Funds f) Trust and Agency Funds g) Permanent Endowment Funds h) Any new fund created unless specifically exempted If the City invests funds on behalf of another agency and, if that agency does not have its own investment policy, this Policy shall govern the agency’s investments. 3. Funds Excluded from this Policy Bond Proceeds – Investment of bond proceeds will be made in accordance with applicable bond indentures. B. INVESTMENT OBJECTIVES The City’s funds shall be invested in accordance with all applicable City policies and codes, State statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order: 1. Safety Preservation of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and interest rate risk. To attain this objective, the City shall diversify its investments by investing funds among 13 3 F-1 several financial institutions and a variety of securities offering independent returns. a) Credit Risk The City shall minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by:  Limiting investments in securities that have higher credit risks, pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City will do business  Diversifying the investment portfolio so as to minimize the impact any one industry/investment class can have on the portfolio b) Interest Rate Risk To minimize the negative impact of material changes in the market value of securities in the portfolio, the City shall:  Structure the investment portfolio so that securities mature concurrent with cash needs to meet anticipated demands, thereby avoiding the need to sell securities on the open market prior to maturity  Invest in securities of varying maturities 2. Liquidity The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in money market mutual funds or LAIF which offer same-day liquidity for short-term funds. 3. Yield The City’s investment portfolio shall be designed with the objective of attaining a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the liquidity characteristics of the portfolio. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. 14 4 F-1 C. STANDARDS OF CARE 1. Prudence The standard of prudence to be used for managing the City's investment program is California Government Code Section 53600.3, the prudent investor standard, which states that “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City. The Finance Director and authorized investment personnel acting in accordance with established procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments. 2. Ethics and Conflicts of Interest Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City’s investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall subordinate their personal investment transactions to those of the City. In addition, City Council members, the City Manager, and the Finance Director shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and regulations of the Fair Political Practices Commission. 15 5 F-1 3. Delegation of Authority Authority to manage the City’s investment program is derived from the Charter of the City of Newport Beach section 605 (j). The Finance Director shall assume the title of and act as City Treasurer and with the approval of the City Manager appoint deputies annually as necessary to act under the provisions of any law requiring or permitting action by the City Treasurer. The Finance Director may then delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy. The City may engage the support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City's financial resources. Such companies must be registered under the Investment Advisors Act of 1940, be well-established and exceptionally reputable. Members of the staff of such companies who will have primary responsibility for managing the City’s investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. These firms must insure that the portion of the portfolio under their management complies with various concentration and other constraints specified herein, and contractually agree to conform to all provisions of governing law and the collateralization and other requirements of this Policy. Selection and retention of broker/dealers by investment advisors shall be at their sole discretion and dependent upon selection and retention criteria as stated in the Uniform Application for Investment Advisor Registration and related Amendments (SEC Form ADV 2A). 4. Internal Controls The Finance Director is responsible for establishing and maintaining a system of internal controls. The internal controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent action by City employees and officers. The internal structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. 16 6 F-1 D. BANKING SERVICES Banking services for the City shall be provided by FDIC insured banks approved to provide depository and other banking services. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section 53652. E. BROKER/DEALERS In the event that an investment advisor is not used to purchase securities, the City will select broker/dealers on the basis of their expertise in public cash management and their ability to provide service to the City’s account. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code. To be eligible, a firm must meet at least one of the following criteria: 1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or 2. Report voluntarily to the Federal Reserve Bank of New York, or 3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule). F. SAFEKEEPING AND CUSTODY OF ASSETS The Finance Director shall select one or more banks to provide safekeeping and custodial services for the City. A Safekeeping Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services. Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services. The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices. All investment securities, except non-negotiable Certificates of Deposit, Money Market Funds and local government investment pools, purchased by the City will 17 7 F-1 be delivered by book entry and will be held in third-party safekeeping by a City approved custodian bank, its correspondent bank or its Depository Trust Company (DTC) participant account. All Fed wireable book entry securities owned by the City shall be held in the Federal Reserve system in a customer account for the custodian bank which will name the City as “customer.” All DTC eligible securities shall be held in the custodian bank’s DTC participant account and the custodian bank shall provide evidence that the securities are held for the City as “customer.” G. AUTHORIZED INVESTMENTS All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. The City has further restricted the eligible types of securities and transactions. The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be pre- approved by resolution of the City Council. In the event an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameter(s) will take precedence. Where this section specifies a percentage limitation or minimum credit rating for a particular security type, that percentage or credit rating minimum is applicable only at the date of purchase. 1. Investments Specifically Permitted a) United States Treasury bills, notes, or bonds with a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category. b) Federal Instrumentality (government-sponsored enterprise) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category. No more than thirty percent (30%) of the portfolio may be invested in any single Federal Instrumentality/GSE issuer. The maximum percentage of callable Federal Instrumentality/GSE securities in the portfolio will be twenty percent (20%.) 18 8 F-1 c) Federal Agency Obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest and which have a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category. d) Mortgage-backed Securities, Collateralized Mortgage Obligation (CMO) and Asset-backed Securities from issuers not defined sections a, b and c of the Investments Specifically Permitted section of this investment policy are limited to bonds with a final maturity not exceeding five years from the date of trade settlement. The security itself shall be rated at least “AAA” or the equivalent by an NRSRO. No more than five percent (5%) of the City’s total portfolio shall be invested in any one issuer of mortgage-backed and asset- backed securities listed above, and the aggregate investment in mortgage-backed and asset-backed securities shall not exceed twenty percent (20%) of the City’s total portfolio. e) Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of trade settlement, and rated in at least the “A” category or the equivalent by an NRSRO. No more than five percent (5%) of the City’s total portfolio shall be invested in any one issuer of medium- term notes, and the aggregate investment in medium-term notes shall not exceed thirty percent (30%) of the City’s total portfolio. f) Municipal Bonds including bonds issued by the City of Newport Beach, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City. State of California registered warrants or treasury notes or bonds, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. 19 9 F-1 Bonds, notes, warrants, or other evidences of indebtedness of a local agency within California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. In addition, these securities must be rated in at least the “A” category or the equivalent by a NRSRO with maturities not exceeding five years from the date of trade settlement. No more than five percent (5%) of the City’s total portfolio shall be invested in any one municipal issuer. In addition, the aggregate investment in municipal bonds may not exceed thirty percent (30%) of the portfolio. g) Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding two years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5. Deposits exceeding the FDIC insured amount shall be secured pursuant to California Government Code Section 53652. No one issuer shall exceed more than five percent (5%) of the portfolio, and investment in negotiable and nonnegotiable certificates of deposit shall be limited to thirty percent (30%) of the portfolio combined. h) Negotiable Certificates of Deposit only with a nationally or state- chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank whose senior long-term debt is rated in at least the “A” category, or the equivalent, or short-term debt is rated at least “A-1” or the equivalent by an NRSRO and having assets in excess of $10 billion, so as to ensure security and a large, well- established secondary market. Ease of subsequent marketability should be further ascertained prior to initial investment by examining currently quoted bids by primary dealers and the acceptability of the issuer by these dealers. No one issuer shall exceed more than five percent (5%) of the portfolio, and maturity shall not exceed two years. Investment in negotiable and non- negotiable certificates of deposit shall be limited to thirty percent (30%) of the portfolio combined. 20 10 F-1 i) Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement that is rated “A-1”, or the equivalent, by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub- paragraph i. or sub-paragraph ii. below: i. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated in at least the “A” category or the equivalent by an NRSRO. ii. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated at least “A-1” or the equivalent, by an NRSRO. iii. No more than five percent (5%) of the City’s total portfolio shall be invested in the commercial paper of any one issuer, and the aggregate investment in commercial paper shall not exceed twenty-five percent (25%) of the City’s total portfolio. Under a provision sunsetting on January 1, 2026, no more than forty percent (40%) of the portfolio may be invested in commercial paper if the City’s assets under management are greater than $100,000,000. j) Eligible Banker’s Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated in at least the “A” category or the equivalent by an NRSRO at the time of purchase. Banker’s Acceptances shall be rated at least “A-1”, or the equivalent at the time of purchase by an NRSRO. If the bank has senior debt outstanding, it must be rated in at least the “A” category or the equivalent by an NRSRO. The aggregate investment in banker’s acceptances shall not exceed forty percent (40%) of the City’s total portfolio, and no more than five percent (5%) of the City’s total portfolio shall be invested in banker’s acceptances of any one bank. k) Repurchase Agreements and Reverse Repurchase Agreements with a final termination date not exceeding 30 days collateralized by U.S. 21 11 F-1 Treasury obligations or Federal Instrumentality securities listed in items 1 and 2 above with the maturity of the collateral not exceeding ten years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of one hundred and two percent (102%) of the dollar value of the funds borrowed. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. Repurchase Agreements and Reverse Repurchase Agreements shall be entered into only with broker/dealers and who are recognized as Primary Dealers with the Federal Reserve Bank of New York, or with firms that have a Primary Dealer within their holding company structure. Primary Dealers approved as Repurchase Agreement counterparties shall have a short-term credit rating of at least “A-1” or the equivalent and a long-term credit rating of at least “A” or the equivalent. Repurchase agreement counterparties shall execute a City approved Master Repurchase Agreement with the City. The Finance Director shall maintain a copy of the City's approved Master Repurchase Agreement and a list of the broker/dealers who have executed same. In addition, the City must own assets for more than 30 days before they can be used as collateral for a reverse repurchase agreement. No more than ten percent (10%) of the portfolio can be involved in reverse repurchase agreements. l) State of California’s Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1. l)m) California Asset Management Trust Cash Reserve Portfolio (CAMP), Investments in CAMP shall not exceed the same maximum limit established for LAIF. m)n) County Investment Funds: Los Angeles County provides a service similar to LAIF for municipal and other government entities outside of Los Angeles County, including the City. Investment in this pool is intended to be used as a temporary repository for short-term funds used for liquidity purposes. The Finance Director shall maintain on file appropriate information concerning the county pool’s current investment policies, practices, and performance, as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the 22 12 F-1 portfolio. At no time shall more than five percent (5%) of the City’s total investment portfolio be placed in this pool. n)o) Mutual Funds and Money Market Mutual Funds registered under the Investment Company Act of 1940, provided that: i. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria: 1) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or 2) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million. 3) No more than 10% of the total portfolio may be invested in shares of any one mutual fund. ii. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria: 1) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or 2) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million. 3) No more than 20% of the total portfolio may be invested in Money Market Mutual Funds. iii. No more than 20% of the total portfolio may be invested in these securities. 23 13 F-1 o)p) Supranationals which are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum remaining maturity of five years or less from the date of settlement, and eligible for purchase and sale within the United States. Investments under this paragraph shall be rated in the "AA" category, its equivalent, or better by at least one NRSRO. No more than ten percent (10%) of the City’s total portfolio shall be invested in any one issuer of supranational obligations. Purchases of supranational obligations shall not exceed twenty percent (20%) of the investment portfolio of the City. 2. Investments Specifically Not Permitted Any security type or structure not specifically approved by this policy is hereby prohibited. Security types, which are thereby prohibited include, but are not limited to: “exotic” derivative structures such as range notes, dual index notes, inverse floating rate notes, leveraged or de-leveraged floating rate notes, interest only strips that are derived from a pool of mortgages and any security that could result in zero interest accrual if held to maturity, or any other complex variable or structured note with an unusually high degree of volatility risk. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero or negative interest accrual if held to maturity are permitted. The City shall not invest funds with the Orange County Pool. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited. 3. Exceptions to Prohibited and Restricted Investments The City shall not be required to sell securities prohibited or restricted in this policy, or any future policies, or prohibited or restricted by new State regulations, if purchased prior to their prohibition and/or restriction. Insofar as these securities provided no notable credit risk to the City, holding of these securities until maturity is approved. At maturity or liquidation, such monies shall be reinvested as provided by this policy. 24 14 F-1 H. INVESTMENT PARAMETERS 1. Diversification The City shall diversify its investments to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. As such, no more than five percent (5%) of the City’s portfolio may be invested in the instruments of any one issuer, except governmental issuers, supranationals, investment pools, mutual funds and money market funds, or unless otherwise specified in this investment policy. This restriction does not apply to any type of Federal Instrumentality or Federal Agency Security listed in Sections G1 b and G1 c above. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City’s anticipated cash flow needs. 2. Maximum Maturities To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of investment. 3. Credit Quality Each investment manager will monitor the credit quality of the securities in their respective portfolio. In the event a security held by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:  Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director in a timely manner.  If a decision is made to retain the security, the credit quality will be monitored and reported to the City Council. 4. Competitive Transactions Investment advisors shall make best effort to price investment transactions on a competitive basis with broker/dealers selected consistent with their practices disclosed in form ADV 2A filed with the SEC. Where possible, at least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, the investment advisor shall make their best efforts to document quotations for comparable or alternative securities. If qualitative characteristics of a transaction, including, but not limited to, complexity of 25 15 F-1 the transaction, or sector expertise of the broker, prevent a competitive selection process, investment advisors shall use brokerage selection practices as described above. I. PORTFOLIO PERFORMANCE The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the City’s investments shall be compared to the total return of a benchmark that most closely corresponds to the portfolio’s duration, universe of allowable securities, risk profile, and other relevant characteristics. When comparing the performance of the City’s portfolio, its rate of return will be computed consistent with Global Investment Performance Standards (GIPS). J. REPORTING Monthly, the Finance Director shall produce a treasury report of the investment portfolio balances, transactions, risk characteristics, earnings, and performance results of the City’s investment portfolio available to City Council and the public on the City’s Website. The report shall include the following information: 1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City; 2. A description of the funds, investments and programs; 3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation; 4. A statement of compliance with this Policy or an explanation for non- compliance K. INVESTMENT POLICY COMPLIANCE AND ADOPTION 1. Compliance Any deviation from the policy shall be reported to Finance Committee as soon as practical, but no later than the next scheduled Finance Committee meeting. Upon recommendation of the Finance Committee, the Finance Director shall review deviations from policy with the City Council. 2. Adoption The Finance Director shall review the Investment Policy with the Finance Committee at least annually to ensure its consistency with the overall 26 16 F-1 objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The Finance Director shall review the Investment Policy with City Council at a public meeting if there are changes recommended to the Investment Policy. This Policy was endorsed and adopted by the City Council of the City of Newport Beach on September 28, 2021. It replaces any previous investment policy or investment procedures of the City. Adopted – April 6, 1959 Amended – November 9, 1970 Amended – February 11, 1974 Amended – February 9, 1981 Amended – October 27, 1986 Rewritten – October 22, 1990 Amended – January 28, 1991 Amended – January 24, 1994 Amended – January 9, 1995 Amended – April 22, 1996 Corrected – January 27, 1997 Amended – February 24, 1997 Amended – May 26, 1998 Reaffirmed – March 22, 1999 Reaffirmed – March 14, 2000 Amended & Reaffirmed – May 8, 2001 Amended & Reaffirmed – April 23, 2002 Amended & Reaffirmed – April 8, 2003 Amended & Reaffirmed – April 13, 2004 Amended & Reaffirmed – September 13, 2005 Amended – August 11, 2009 Amended & Reaffirmed – August 10, 2010 Amended & Reaffirmed – September 28, 2010 Reaffirmed – June 28, 2011 Amended & Reaffirmed – October 9, 2012 Amended – August 13, 2013 Amended – September 8, 2015 Amended – March 28, 2017 Amended – January 28, 2020 Amended – September 28, 2021 27 17 F-1 Glossary of Investment Terms AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities. FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass- through securities. GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds. ASKED. The price at which a seller offers to sell a security. ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit. AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. BID. The price at which a buyer offers to buy a security. BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates 28 18 F-1 decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained. COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. COMMERCIAL PAPER. The short-term unsecured debt of corporations. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. COUPON. The rate of return at which interest is paid on a bond. CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the general credit of the issuer. DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent. DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index. DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s 29 19 F-1 acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it. FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office. LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds. MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral. MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. MARKET VALUE. The price at which a security can be traded. MARKING TO MARKET. The process of posting current market values for securities in a portfolio. MATURITY. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity. MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. 30 20 F-1 Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk. MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded. MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses. MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's. NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market. PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of 31 21 F-1 its customers without maintaining substantial inventories of securities and that is not a primary dealer. REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement. SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name. STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows. TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually. TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually. VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. 32 ITEM NO. 5A1 ANNUAL REVIEW OF INVESTMENT POLICY ATTACHMENT A STAFF PRESENATION – ADDITIONAL MATERIALS RECEIVED 33 Annual Review of Investment Policy Finance Committee September 14, 2023 34 City of Newport Beach – Finance Department 2 Background Primary Investment Objectives in priority order, and as required by the California Government Code are: Safety Liquidity Return on Investments In connection with an annual review of the City’s Investment Policy, changes to the City’s Investment Policy are recommended, which have been reviewed and are supported by the City’s independent investment advisor, Chandler Asset Management. 35 City of Newport Beach – Finance Department 3 Proposed Changes Pursuant to California Senate Bill No. 1489, the Local Government Omnibus Act of 2022, the following changes are recommended: Specify that an investment’s term or remaining maturity shall be measured from the settlement date to final maturity (rather than trade date). The purchase of securities with a forward settlement date exceeding 45 days from the time of investment is prohibited. Authorized Investments – To allow for an alternative investment vehicle for the City’s liquid cash, it is recommended that the California Asset Management Program (CAMP) Cash Reserve Portfolio be added as an authorized investment. 36 City of Newport Beach – Finance Department 4 Comparison of LAIF and CAMP LAIF and CAMP’s Cash Reserve Portfolio offer same-day liquidity while earning a competitive yield. CAMP LAIF Credit Rating AAAm (S&P)Not Rated Weighted Avg. Maturity 33 Days 251 Days Interest Payment Frequency Monthly Quarterly Current Yield1 5.43%3.31% 1As of July 31, 2023 37 City of Newport Beach – Finance Department 5 Questions? 38 ATTACHMENT A ANNUAL REVIEW OF INVESTMENT PERFORMANCEPRESENTATION 39 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending June 30, 2023 City of Newport Beach 40 SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions Table of Contents As of June 30, 2023 1 41 SECTION |Section 1 |Economic Update 2 42 Economic Update ▪ ▪ ▪ Recent economic data continues to suggest positive but below trend growth this year. Although the pace of job growth is moderating, labor markets remain solid, and the U.S. consumer has demonstrated resiliency. Inflationary trends are subsiding,but core levels remain well above the &ĞĚ͛Ɛtarget. Given the cumulative effects of restrictive monetary policy and tighter financial conditions,we believe the economy will gradually soften and the Fed will remain data dependent as they tread cautiously going forward. As anticipated at the July meeting, the Federal Open Market Committee voted unanimously to raise the Federal Funds rate by 0.25%to a target range of 5.25 - 5.50%, the highest level in over 20 years. Fed Chair Powell maintained that the FOMC will remain data dependent going forward, and that they do not anticipate a recession, leaving the option open for the possibility of additional rate hikes in the future if needed. The yield curve remained inverted in August. The 2-year Treasury yield decreased 1 basis point to 4.87%, the 5-year Treasury yield rose 8 basis points to 4.26%, and the 10-year Treasury yield increased 15 basis points to 4.11%. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -76 basis points at August month-end versus -92 basis points at July month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -30 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -134 basis points in August from-145 basis points in July. The shape of the yield curve indicates that the probability of recession persists. 3 43 Employment -400 -200 0 200 400 600 800 1,000 MO M C h a n g e I n T h o u s a n d s ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3 month average (000's) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The U.S. economy added 187,000 jobs in August, exceeding consensus expectations, and the last two months were revised downward by 110,000 jobs. The pace of job growth is softening with the three-month moving average payrolls at 150,000 and the six-month moving average at 194,000. The unemployment rate rose to 3.8%in August from3.5%in July, and the labor force participation rate increased to 62.8%, the highest level since February of 2020.The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, increased to 7.1% from the prior month at 6.7%. Average hourly earnings declined to 4.3% year-over-year in August from 4.4%in July. While the U.S. labor market is moderating, employment remains strong by historical standards. Source: US Department of Labor Source: US Department of Labor 4 44 Job Openings & Labor Turnover Survey 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The number of job openings declined to 8.827 in July from 9.165 million in June. This marked the sixth decline in the last seven months and the lowest number in over two years. New hires, separations, and quits all fell. The current level of job openings is more in line with normal economic conditions, but still somewhat elevated in the historical context. Source: US Department of Labor 5 45 Inflation 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed Target YO Y ( % ) C h a n g e The Consumer Price Index (CPI) increased in July by 0.2% month-over-month and 3.2% year-over-year, versus 3.0%in June. The Core CPI, which excludes volatile food and energy components, was up 0.2% month-over-month and 4.7% year-over-year, decelerating slightly from 4.8%in June. The Personal Consumption Expenditures (PCE) index rose as expected by 3.3% year-over-year in July,up from a 3.0% year- over-year gain in June. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.2% year-over-year in July,up from a 4.1% increase in June. Personal spending remained robust,but the personal savings rate decreased to 3.5% from 4.3%in July. Inflation remains above the Fed's 2% target. Source: US Department of Labor Source: US Department of Commerce 6 46 Consumer -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e Advance Retail Sales beat expectations and rose 0.7%in July after upward revisions to the prior two months. Increases were broad-based across categories. Nonstore retail sales were particularly notable with a 1.9% increase, which reflects a robust performance of Amazon's Prime Day sales event.On a year-over-year basis, retail sales growth accelerated to a 3.2% gain in July versus an upwardly revised 1.6% increase in June. The Conference Board’s Consumer Confidence Index dropped more than expected to 106.1 in August from a downwardly revised 114.0 in July. Both current conditions and future expectations weakened as respondents expressed negative views on the labor market and concerns regarding inflation expectations. 80 90 100 110 120 130 140 In d e x L e v e l Consumer Confidence Source: US Department of Commerce Source: The Conference Board 7 47 Leading Indicators of Economic Activity -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI) remained in negative territory for the sixteenth consecutive month at -0.4%in July due to weak manufacturing orders, high interest rates, and a dip in consumer expectations. The index declined 7.5% year-over-year. The consistent decline month-over-month continues to signal future contraction in the economy. The Chicago Fed National Activity Index (CFNAI) increased to 0.12 in July from from a revised -0.33 in June.On a 3-month moving average basis, the CFNAI remained negative at - 0.13 in July, indicating a rate of growth below the historical average trend. Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 48 Housing 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts Starts of new homes increased 3.9%to 1.452 million units at a seasonally adjusted annual rate in July after a downward revision to 1.398 million units in June. The gain was entirely attributable to a rise of 6.7%in single-family home starts. Starts of multi-unit homes had been the main driver of homebuilding in the second half of 2022 and early 2023 but have begun to wane. Total starts of new homes are up 5.9% year-over-year. Homebuilders continue to see demand while the supply of existing homes for sale remains limited. According to Freddie Mac, a 30-year fixed rate mortgage averaged 7.18%as of August 31st. According to the Case-Shiller 20-City Home Price Index, housing prices dropped 1.2% year-over-year in June, improving from a 1.7% decline in May. Tight inventories and higher mortgage rates continue to impact affordability. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case-Shiller 20 City Composite Home Price Index Recession YOY ( % ) C h a n g e 9 49 Survey Based Measures 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management (ISM) manufacturing index remained in contraction territory at 47.6 in August,up from46.4 in July. This is the tenth consecutive month of readings below 50.0, which is indicative of contraction in the manufacturing sector. The Institute for Supply Management (ISM) services index expanded for the seventh consecutive month to 52.7 in July from 53.9 in June,as business activity, new orders, and the employment index continued their expansion. The July data reflects continued strength in the services sector, although the trend is decelerating. Source: Institute for Supply Management 10 50 Gross Domestic Product (GDP) Components of GDP 9/22 12/22 3/23 6/23 1.5% 0.7% 2.8% 1.1% -1.8% 0.8% -2.2% 0.6% 2.9% 0.4% 0.6% -0.2% 0.2% 0.4% 0.4% 0.1% 0.4% 0.3% 0.5% 0.5% 3.3% 2.6% 2.0% 2.1% State and Local (Consumption and Gross Investment) Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce According to the second estimate, second quarter GDP growth was revised down to 2.1% from 2.4% (annualized). The revision lower was primarily due to a moderation of business investment which more than offset an increase in consumer spending. Historically low unemployment, wage growth and savings built up during the pandemic has supported consumer spending at a level to keep economic growth intact, but there are signs the consumer is beginning to show signs of stress. The consensus estimate calls for 2.0% growth for the third quarter and 2.0% for the full year 2023. 11 51 Federal Reserve Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s As anticipated at the July meeting, the Federal Open Market Committee voted unanimously to raise the Federal Funds rate by 0.25%to a target range of 5.25 - 5.50%, the highest level in over 20 years. Fed Chair Powell maintained that the FOMC will remain data dependent going forward, and that they do not anticipate a recession, leaving the option open for the possibility of additional rate hikes in the future if needed. The Fed continued to focus on achieving price stability and bringing inflation down toward their 2% policy objective. We believe the resiliency of future economic data will determine if the Federal Reserve can stay on hold for a period of time or will tighten policy further to curb inflation. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) 12 52 Bond Yields Source: Bloomberg Source: Bloomberg 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Note Yields 2-Year 5-Year 10-Year Yi e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Aug-23 May-23 Aug-22 Yi e l d ( % ) At the end of August, the 2-year Treasury yield was 137 basis points higher, and the 10-Year Treasury yield was about 91 basis points higher, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -76 basis points at August month-end versus -92 basis points at July month-end. The average historical spread (since 2003)is about +130 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -134 basis points in August from -145 basis points in July. The shape of the yield curve indicates that the probability of recession persists. 13 53 Section 2|SECTION |Section 2 |Account Profile 14 54 Portfolio Summary *Bond Fund Portfolios are subject to the investment provisions of the applicable bond indentures and therefore are not subject to the City's investment policy. Amortized Cost Market Value Accrued Interest Market Value + Accrued Interest Operating Portfolios Liquidity Portfolios: Demand Deposit Accounts $ 25,845,331 $ 25,845,331 $ - $ 25,845,331 Local Agency Investment Fund (LAIF) $ 20,695,622 $ 20,695,622 $ 249,195 $ 20,944,817 Total Liquidity Portfolios: $ 46,540,953 $ 46,540,953 $ 249,195 $ 46,790,148 Chandler-Managed Portfolios: Targeted Maturities Portfolio $ 56,267,435 $ 56,194,857 $ 170,333 $ 56,365,190 1-5 Year Bond Portfolio $ 271,283,658 $ 261,229,716 $ 1,074,357 $ 262,304,073 Total Chandler-Managed Portfolios $ 327,551,093 $ 317,424,573 $ 1,244,690 $ 318,669,263 Total Operating Portfolios: $ 374,092,046 $ 363,965,526 $ 1,493,885 $ 365,459,411 Bond Fund Portfolios* 2010 Civic Center COPs $ 7,708,368 $ 7,708,368 $ - $ 7,708,368 Fire Station COPs $ 1,107,237 $ 1,107,237 $ - $ 1,107,237 Assessment Districts $ 1,319,026 $ 1,318,998 $ 4 $ 1,319,002 Total Bond Fund Portfolios: $ 10,134,631 $ 10,134,603 $ 4 $ 10,134,607 Total $ 384,226,677 $ 374,100,129 $ 1,493,889 $ 375,594,018 City of Newport Beach Treasurer's Report 6/30/23 15 55 Objectives Chandler Asset Management Performance Objective The performance objective for the City of Newport Beach is to earn a return that equals or exceeds the return on an index of 1-5 Year US Government securities. Investment Objectives The investment objectives of the City of Newport Beach are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide adequate liquidity to meet all requirements that may be reasonably anticipated; and third, to earn a commensurate rate of return. Strategy In order to achieve these objectives, we invest in high quality fixed income securities consistent with the City’s investment policy and California Government Code. As of June 30, 2023 16 56 Compliance As of June 30, 2023 Category Standard Comment U.S. Treasuries No limit; 5 years max maturity Complies Federal Agencies 30% max per agency/GSE issuer; 20% max agency/GSE callable securities; 5 years max maturity Complies Supranational Obligations "AA" rating category or higher by a NRSRO; 20% max; 10% max per issuer; 5 years max maturity; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB Complies Municipal Securities (CA, Other States)"A" rating category or equivalent by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity Complies Corporate Medium Term Notes "A" rating category or equivalent by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Asset-Backed Securities, Mortgage- Backed Securities, Collateralized Mortgage Obligations "AAA" rated or equivalent by a NRSRO; 20% max (combined in aggregate); 5% max per issuer; 5 years max maturity; From issuers not defined in sections (a) US Treasuries, (b) Federal Instrumentalities, (c) Federal Agency Obligations.Complies Negotiable Certificates of Deposit (NCD)"A" long-term debt rating category or equivalent by a NRSRO; or "A-1" short-term debt rated or equivalent by a NRSRO; and having assets in excess of $10 billion; 30% max (combined NCDs, CDs); 5% max per issuer; 2 years max maturity Complies Non-Negotiable Certificates of Deposit 30% max (combined NCDs, CDs); 5% max per issuer; FDIC Insured or secured; 2 years max maturity Complies Banker’s Acceptances "A-1" rated or equivalent by a NRSRO; "A" rating category or equivalent by a NRSRO, if the bank has senior debt outstanding; 40% max; 5% max per issuer; 180 days max maturity Complies Commercial Paper "A-1" or equivalent by a NRSRO; 25% max; 40% max if the City’s investment AUM are greater than $100 million, under a provision sunsetting on January 1, 2026; 5% max per issuer; 270 days maturity; The entity that issues the commercial paper shall meet all of the conditions in either i) or ii): i) (a) be organized and operating in the U.S. as a general corporation, (b) have total assets in excess of $500 million, and (c) have debt other than commercial paper, if any, that has "A" rating category or higher by a NRSRO; ii) (a) be organized within the U.S. as a special purpose corporation, trust, or limited liability company; (b) have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or surety bond; and (c) have commercial paper that has "A-1" rating category or higher by a NRSRO Complies Money Market Mutual Funds and Mutual Funds Highest rating by two NRSROs; or Retained an investment adviser registered or exempt from registration with SEC with AUM >$500 million and experience greater than 5 years; 10% max per Mutual Fund; 20% max in Money Market Mutual Funds; 20% max combined of total portfolio in these securities Complies Repurchase Agreements; Reverse Repurchase Agreements "A-1" or equivalent short term rating; or "A" long term rating or equivalent; 10% max for reverse repurchase agreements; 30 days max maturity; Collateralized by U.S. Treasuries or Federal Instrumentalities Complies Assets managed by Chandler Asset Management are in full compliance with state law and the Client's investment policy. City of Newport Beach, California Consolidated 17 57 Compliance As of June 30, 2023 Category Standard Comment Local Agency Investment Fund (LAIF)Pursuant to California Govt Code; Not used by Investment Adviser Complies County Investment Funds 5% max; Los Angeles County Pool; Not used by Investment Adviser Complies Credit Quality Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director in a timely manner; If a decision is made to retain the security, the credit quality will be monitored and reported to the City Council Complies Max Per Issuer 5% max per issuer, except Governmental issuers, Supranationals, Investment pools, Mutual Funds, and Money Market Funds, or unless otherwise specified in the investment policy. Restriction does not apply to any type of Federal Instrumentality or Federal Agency Security Complies Maximum Maturity 5 years Complies Assets managed by Chandler Asset Management are in full compliance with state law and the Client's investment policy. City of Newport Beach, California Consolidated 18 58 Portfolio Characteristics City of Newport Beach Cons 06/30/23 Portfolio Average Maturity (yrs)1.29 Modified Duration 1.12 Average Purchase Yield 2.19% Average Market Yield 4.72% Average Quality*AA+/Aa1 Total Market Value Plus Accrued Interest 365,459,411 •Portfolio is S&P and Moody’s respectively. •Values reflect the City’s operating portfolios and do not include bond proceeds As of June 30, 2023 19 59 City of Newport Beach Cons Sector Distribution ABS 5.0% Agency 15.4% Cash 7.1% CMO 3.8% Corporate 17.3%LAIF 5.8% Money Market Fund 4.1% Municipal Bonds 0.5% Negotiable CD 1.1% Supranational 3.3% US Treasury 36.7% June 30, 2023 As of June 30, 2023 20 60 Duration Allocation As of June 30, 2023 City of Newport Beach Cons 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 06/30/23 29.2%14.2%14.2%25.7%3.6%10.9%2.1%0.0% 0% 5% 10% 15% 20% 25% 30% 35% 0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS Agency Cash CMO Corporate LAIF Money Market Fund Municipal Bonds Negotiable CD Supranational US Treasury 21 61 Issue Name Investment Type % Portfolio Government of United States US Treasury 36.67% Bank Cash Account Cash 7.07% Local Agency Investment Fund LAIF 5.75% Federal Home Loan Mortgage Corp Agency 4.45% Federal Home Loan Bank Agency 4.28% Goldman Sachs Financial Square Funds - Treasury Obligations Fund Money Market Fund 3.89% Federal Home Loan Mortgage Corp CMO 3.83% Federal Farm Credit Bank Agency 3.74% Federal National Mortgage Association Agency 2.98% Intl Bank Recon and Development Supranational 1.59% Westpac Banking Corp NY Negotiable CD 1.06% Inter-American Dev Bank Supranational 1.02% New York Life Global Funding Corporate 0.84% Toronto Dominion Holdings Corporate 0.82% JP Morgan Chase & Co Corporate 0.80% Northern Trust Corp Corporate 0.80% Target Corp Corporate 0.79% MasterCard Inc Corporate 0.79% GM Financial Automobile Leasing Trust ABS 0.78% Guardian Life Global Funding Corporate 0.77% Caterpillar Inc Corporate 0.76% Hyundai Auto Receivables ABS 0.75% Paccar Financial Corporate 0.73% Deere & Company Corporate 0.67% Bank of New York Corporate 0.67% American Express ABS ABS 0.66% Royal Bank of Canada Corporate 0.66% Metlife Inc Corporate 0.65% International Finance Corp Supranational 0.65% Duke Energy Field Services Corporate 0.64% John Deere ABS ABS 0.64% National Rural Utilities Corporate 0.62% Northwestern Mutual Glbl Corporate 0.59% Charles Schwab Corp/The Corporate 0.59% Morgan Stanley Corporate 0.55% US Bancorp Corporate 0.55% State of New York Municipal Bonds 0.54% BlackRock Inc/New York Corporate 0.52% Issuers City of Newport Beach Cons – Account #11134 As of June 30, 2023 22 62 Issue Name Investment Type % Portfolio Bank of Montreal Chicago Corporate 0.52% Toyota Motor Corp Corporate 0.51% Amazon.com Inc Corporate 0.48% Prudential Financial Inc Corporate 0.42% Hyundai Auto Lease Securitization ABS 0.40% GM Financial Securitized Term Auto Trust ABS 0.32% United Health Group Inc Corporate 0.30% BMW Vehicle Lease Trust ABS 0.28% Bank of America Corp Corporate 0.27% Wal-Mart Stores Corporate 0.27% Apple Inc Corporate 0.26% BMW ABS ABS 0.26% Toyota Lease Owner Trust ABS 0.24% State Street Bank Corporate 0.23% Honda ABS ABS 0.23% Toyota ABS ABS 0.21% Mercedes-Benz Auto Lease Trust ABS 0.21% Federated GOVT Obligation MMF Money Market Fund 0.17% Honda Motor Corporation Corporate 0.14% Salesforce.com Inc Corporate 0.12% TOTAL 100.00% Issuers City of Newport Beach Cons – Account #11134 As of June 30, 2023 23 63 AAA AA A <A NR 06/30/23 24.2%45.6%12.5%0.0%17.7% Source: S&P Ratings June 30, 2023 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% AAA AA A <A NR 06/30/23 Quality Distribution City of Newport Beach Cons As of June 30, 2023 24 64 Total and Realized Rate of Return Annualized Since Inception May 31, 1995 Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio. Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Newport Beach Consolidated 0.26%1.28%-0.85%-0.46%1.33%1.10% ICE BofA 1-5 Yr US Treasury & Agency Index*-0.85%-0.03%-1.68%-1.10%0.92%0.75% REALIZED RATE OF RETURN Newport Beach Consolidated 0.50%1.63%1.49%1.68%1.86%1.40% Investment Performance Newport Beach Consolidated – Chandler Managed Accounts -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12 months 2 years 3 years 5 years 10 years Total Rate of Return Realized Rate of Return ICE BofA 1-5 Yr US Treasury & Agency Index* As of June 30, 2023 *ICE BofA 1-3 Yr US Treasury Index to 11/30/2022 25 65 SECTION |Section 3 |Portfolio Holdings 26 66 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration ABS 43813RAC1 Honda Auto Receivables 2020-1 A3 1.610% Due 04/22/2024 17,950.47 02/19/2020 1.62% 17,946.95 17,949.78 99.78 6.62% 17,911.36 8.03 0.00% (38.42) Aaa / NR AAA 0.81 0.04 89238EAC0 Toyota Lease Owner Trust 2021-A A3 0.390% Due 04/22/2024 160,846.37 04/13/2021 0.40% 160,827.60 160,844.65 99.69 6.22% 160,343.73 19.17 0.04% (500.92) Aaa / AAA NR 0.81 0.05 44891VAC5 Hyundai Auto Lease Trust 2021-B A3 0.330% Due 06/17/2024 435,189.40 06/08/2021 0.34% 435,124.12 435,183.36 99.45 6.07% 432,787.59 63.83 0.12% (2,395.77) Aaa / AAA NR 0.97 0.10 47789KAC7 John Deere Owner Trust 2020-A A3 1.100% Due 08/15/2024 9,016.88 03/04/2020 1.11% 9,016.33 9,016.74 99.83 7.52% 9,001.16 4.41 0.00% (15.58) Aaa / NR AAA 1.13 0.03 89239CAC3 Toyota Lease Owner Trust 2021-B A3 0.420% Due 10/21/2024 715,699.50 07/27/2021 0.42% 715,689.83 715,697.32 98.88 5.93% 707,672.93 91.85 0.19% (8,024.39) Aaa / NR AAA 1.31 0.20 36262XAC8 GM Financial Auto Lease Trust 2021-3 A2 0.390% Due 10/21/2024 1,060,832.51 08/10/2021 0.39% 1,060,818.08 1,060,829.20 98.59 5.86% 1,045,910.84 126.42 0.29% (14,918.36) NR / AAA AAA 1.31 0.25 58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3 0.400% Due 11/15/2024 769,504.21 06/22/2021 0.40% 769,446.11 769,491.84 98.41 6.13% 757,296.80 136.80 0.21% (12,195.04) NR / AAA AAA 1.38 0.27 09690AAC7 BMW Vehicle Lease Trust 2021-2 A3 0.330% Due 12/26/2024 343,370.63 09/08/2021 0.34% 343,335.19 343,363.08 98.70 6.39% 338,923.29 18.89 0.09% (4,439.79) Aaa / NR AAA 1.49 0.21 44891WAC3 Hyundai Auto Lease Trust 2022-A A3 1.160% Due 01/15/2025 1,050,000.00 01/11/2022 1.16% 1,049,976.80 1,049,991.79 98.22 5.87% 1,031,324.70 541.33 0.28% (18,667.09) Aaa / AAA NR 1.55 0.38 36265MAC9 GM Financial Auto Lease Trust 2022-1 A3 1.900% Due 03/20/2025 1,835,000.00 02/15/2022 1.91% 1,834,984.22 1,834,994.11 98.05 5.87% 1,799,278.06 1,065.32 0.49% (35,716.05) Aaa / NR AAA 1.72 0.49 05601XAC3 BMW Vehicle Lease Trust 2022-1 A3 1.100% Due 03/25/2025 710,867.19 01/11/2022 1.11% 710,760.92 710,831.41 98.29 5.84% 698,711.36 130.33 0.19% (12,120.05) NR / AAA AAA 1.74 0.36 47788UAC6 John Deere Owner Trust 2021-A A3 0.360% Due 09/15/2025 432,308.31 03/02/2021 0.37% 432,225.22 432,278.49 97.07 6.12% 419,653.78 69.17 0.11% (12,624.71) Aaa / NR AAA 2.21 0.50 44933LAC7 Hyundai Auto Receivables Trust 2021-A A3 0.380% Due 09/15/2025 547,499.20 04/20/2021 0.38% 547,441.60 547,482.69 97.38 6.00% 533,141.58 92.47 0.15% (14,341.11) NR / AAA AAA 2.21 0.46 44934KAC8 Hyundai Auto Receivables Trust 2021-B A3 0.380% Due 01/15/2026 1,673,071.39 07/20/2021 0.39% 1,672,702.15 1,672,928.85 96.75 5.98% 1,618,653.07 282.56 0.44% (54,275.78) NR / AAA AAA 2.55 0.58 43815GAC3 Honda Auto Receivables Trust 2021-4 A3 0.880% Due 01/21/2026 860,000.00 11/16/2021 0.89% 859,818.71 859,908.05 95.98 5.92% 825,411.66 210.22 0.23% (34,496.39) Aaa / NR AAA 2.56 0.80 47789QAC4 John Deere Owner Trust 2021-B A3 0.520% Due 03/16/2026 865,377.71 07/13/2021 0.52% 865,300.52 865,341.63 95.80 6.12% 829,020.60 200.00 0.23% (36,321.03) Aaa / NR AAA 2.71 0.75 89238JAC9 Toyota Auto Receivables Trust 2021-D A3 0.710% Due 04/15/2026 800,000.00 11/09/2021 0.71% 799,982.96 799,991.47 95.77 6.14% 766,130.40 252.44 0.21% (33,861.07) NR / AAA AAA 2.79 0.78 As of June 30, 2023 27 67 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 44935FAD6 Hyundai Auto Receivables Trust 2021-C A3 0.740% Due 05/15/2026 615,000.00 11/09/2021 0.75% 614,862.73 614,932.97 96.07 5.87% 590,815.13 202.27 0.16% (24,117.84) NR / AAA AAA 2.88 0.77 05602RAD3 BMW Vehicle Owner Trust 2022-A A3 3.210% Due 08/25/2026 960,000.00 05/10/2022 3.23% 959,950.08 959,968.08 97.22 5.76% 933,326.40 513.60 0.26% (26,641.68) Aaa / AAA NR 3.16 1.10 362554AC1 GM Financial Securitized Term 2021-4 A3 0.680% Due 09/16/2026 640,000.00 10/13/2021 0.68% 639,983.68 639,991.80 95.50 6.14% 611,231.36 181.33 0.17% (28,760.44) Aaa / AAA NR 3.22 0.82 47787JAC2 John Deere Owner Trust 2022-A A3 2.320% Due 09/16/2026 1,110,000.00 03/10/2022 2.34% 1,109,754.47 1,109,845.08 96.32 5.88% 1,069,188.63 1,144.53 0.29% (40,656.45) Aaa / NR AAA 3.22 1.04 380146AC4 GM Financial Auto Receivables 2022-1 A3 1.260% Due 11/16/2026 575,000.00 01/11/2022 1.27% 574,950.03 574,971.78 95.52 5.90% 549,245.18 301.88 0.15% (25,726.60) NR / AAA AAA 3.38 0.97 02582JJT8 American Express Credit Trust 2022-2 A 3.390% Due 05/17/2027 2,485,000.00 05/17/2022 3.42% 2,484,450.32 2,484,654.11 96.51 5.43% 2,398,171.62 3,744.07 0.66% (86,482.49) NR / AAA AAA 3.88 1.75 TOTAL ABS 18,671,533.77 1.37% 18,669,348.62 18,670,488.28 5.89% 18,143,151.23 9,400.92 4.97% (527,337.05) Aaa / AAA AAA 2.44 0.74 Agency 3135G05G4 FNMA Note 0.250% Due 07/10/2023 4,000,000.00 09/28/2020 0.23% 4,001,920.00 4,000,017.06 99.91 3.51% 3,996,380.00 4,750.00 1.09% (3,637.06) Aaa / AA+ AAA 0.03 0.03 3133EKZK5 FFCB Note 1.600% Due 08/14/2023 2,000,000.00 08/09/2019 1.63% 1,997,420.00 1,999,922.30 99.55 5.30% 1,990,938.00 12,177.78 0.55% (8,984.30) Aaa / AA+ AAA 0.12 0.12 3133EL3V4 FFCB Note 0.200% Due 08/14/2023 4,000,000.00 08/12/2020 0.27% 3,991,680.00 3,999,664.45 99.42 4.98% 3,976,744.00 3,044.44 1.09% (22,920.45) Aaa / AA+ AAA 0.12 0.12 3137EAEV7 FHLMC Note 0.250% Due 08/24/2023 4,000,000.00 09/23/2020 0.24% 4,000,960.00 4,000,048.72 99.30 4.95% 3,972,004.00 3,527.78 1.09% (28,044.72) Aaa / AA+ AAA 0.15 0.15 313383YJ4 FHLB Note 3.375% Due 09/08/2023 1,600,000.00 04/05/2019 2.37% 1,666,896.00 1,602,859.87 99.62 5.37% 1,593,868.80 16,950.00 0.44% (8,991.07) Aaa / AA+ NR 0.19 0.19 3137EAEY1 FHLMC Note 0.125% Due 10/16/2023 5,180,000.00 Various 0.25% 5,160,792.60 5,178,120.61 98.46 5.43% 5,100,367.86 1,348.96 1.40% (77,752.75) Aaa / AA+ AAA 0.30 0.29 3137EAEZ8 FHLMC Note 0.250% Due 11/06/2023 4,275,000.00 11/03/2020 0.28% 4,271,152.50 4,274,550.66 98.27 5.28% 4,201,068.15 1,632.81 1.15% (73,482.51) Aaa / AA+ AAA 0.35 0.34 3135G06H1 FNMA Note 0.250% Due 11/27/2023 3,775,000.00 11/23/2020 0.29% 3,770,696.50 3,774,415.48 97.95 5.37% 3,697,778.60 891.32 1.01% (76,636.88) Aaa / AA+ AAA 0.41 0.40 3137EAFA2 FHLMC Note 0.250% Due 12/04/2023 3,050,000.00 12/02/2020 0.28% 3,046,980.50 3,049,569.82 97.84 5.41% 2,984,129.15 571.88 0.82% (65,440.67) Aaa / AA+ AAA 0.43 0.42 3130A0F70 FHLB Note 3.375% Due 12/08/2023 4,000,000.00 12/21/2018 2.84% 4,098,680.00 4,008,723.09 99.17 5.29% 3,966,964.00 8,625.00 1.09% (41,759.09) Aaa / AA+ AAA 0.44 0.43 As of June 30, 2023 28 68 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3133EKMX1 FFCB Note 2.230% Due 02/23/2024 2,000,000.00 07/30/2019 1.91% 2,027,800.00 2,003,950.00 98.00 5.42% 1,959,942.00 15,857.78 0.54% (44,008.00) Aaa / AA+ AAA 0.65 0.62 3130A7PH2 FHLB Note 1.875% Due 03/08/2024 4,000,000.00 03/03/2020 0.85% 4,161,400.00 4,027,652.83 97.63 5.43% 3,905,004.00 23,541.67 1.08% (122,648.83) Aaa / AA+ NR 0.69 0.67 3130AQF40 FHLB Note 1.000% Due 12/20/2024 2,250,000.00 12/21/2021 1.03% 2,248,020.00 2,249,026.29 94.00 5.29% 2,115,074.25 687.50 0.58% (133,952.04) Aaa / AA+ AAA 1.48 1.43 3133ENKS8 FFCB Note 1.125% Due 01/06/2025 2,000,000.00 01/06/2022 1.20% 1,995,500.00 1,997,710.82 94.13 5.20% 1,882,602.00 10,937.50 0.52% (115,108.82) Aaa / AA+ AAA 1.52 1.46 3133ENPY0 FFCB Note 1.750% Due 02/25/2025 4,000,000.00 03/03/2022 1.76% 3,999,280.00 3,999,600.00 94.91 5.00% 3,796,200.00 24,500.00 1.05% (203,400.00) Aaa / AA+ AAA 1.66 1.59 3135G05X7 FNMA Note 0.375% Due 08/25/2025 3,500,000.00 12/02/2021 1.15% 3,401,720.00 3,443,241.68 90.99 4.83% 3,184,821.50 4,593.75 0.87% (258,420.18) Aaa / AA+ AAA 2.16 2.09 3130ATUS4 FHLB Note 4.250% Due 12/10/2027 4,000,000.00 01/30/2023 3.77% 4,084,480.00 4,077,332.79 99.66 4.34% 3,986,276.00 9,916.67 1.09% (91,056.79) Aaa / AA+ NR 4.45 4.00 TOTAL Agency 57,630,000.00 1.11% 57,925,378.10 57,686,406.47 5.04% 56,310,162.31 143,554.84 15.45% (1,376,244.16) Aaa / AA+ AAA 0.89 0.84 Cash 90CASH$00 Cash Custodial Cash Account 25,845,331.37 Various 0.00% 25,845,331.37 25,845,331.37 1.00 0.00% 25,845,331.37 0.00 7.07% 0.00 NR / NR NR 0.00 0.00 TOTAL Cash 25,845,331.37 0.00% 25,845,331.37 25,845,331.37 0.00% 25,845,331.37 0.00 7.07% 0.00 NR / NR NR 0.00 0.00 CMO 3137B7YY9 FHLMC K037 A2 3.490% Due 01/25/2024 1,487,075.84 11/05/2021 0.58% 1,567,993.68 1,507,931.99 98.95 5.56% 1,471,492.77 4,324.91 0.40% (36,439.22) NR / AAA NR 0.57 0.40 3137BFE98 FHLMC K041 A2 3.171% Due 10/25/2024 700,000.00 04/21/2022 2.96% 702,242.19 701,155.14 97.07 5.56% 679,499.10 1,849.75 0.19% (21,656.04) Aaa / AAA AAA 1.32 1.16 3137BFXT3 FHLMC K042 A2 2.670% Due 12/25/2024 2,500,000.00 08/19/2021 0.62% 2,653,906.25 2,566,787.08 96.21 5.53% 2,405,337.50 1,112.50 0.66% (161,449.58) Aaa / NR NR 1.49 1.29 3137BKRJ1 FHLMC K047 A2 3.329% Due 05/25/2025 2,500,000.00 05/19/2022 3.05% 2,514,453.13 2,509,024.79 96.35 5.42% 2,408,800.00 6,935.42 0.66% (100,224.79) NR / NR AAA 1.90 1.68 3137BM7C4 FHLMC K051 A2 3.308% Due 09/25/2025 2,000,000.00 05/16/2022 2.96% 2,015,546.88 2,010,265.34 96.15 5.21% 1,923,004.00 5,513.33 0.53% (87,261.34) NR / NR AAA 2.24 1.96 As of June 30, 2023 29 69 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 3137BTUM1 FHLMC K061 A2 3.347% Due 11/25/2026 3,000,000.00 10/05/2022 4.55% 2,875,664.06 2,897,729.07 95.07 4.99% 2,852,139.00 8,367.50 0.78% (45,590.07) NR / NR AAA 3.41 2.97 3137F2LJ3 FHLMC K066 A2 3.117% Due 06/25/2027 2,338,600.00 10/20/2022 4.88% 2,177,181.79 2,201,106.27 94.27 4.74% 2,204,544.43 6,074.51 0.60% 3,438.16 NR / NR AAA 3.99 3.53 TOTAL CMO 14,525,675.84 2.92% 14,506,987.98 14,393,999.68 5.24% 13,944,816.80 34,177.92 3.83% (449,182.88) Aaa / AAA AAA 2.35 2.05 Corporate 06406FAD5 Bank of NY Mellon Corp Callable Note Cont 6/16/2023 2.200% Due 08/16/2023 1,000,000.00 03/27/2019 2.78% 976,220.00 999,316.75 99.59 5.37% 995,920.00 8,250.00 0.27% (3,396.75) A1 / A AA- 0.13 0.13 89236TFS9 Toyota Motor Credit Corp Note 3.350% Due 01/08/2024 1,000,000.00 06/14/2019 2.41% 1,040,490.00 1,004,644.80 98.83 5.65% 988,319.00 16,098.61 0.27% (16,325.80) A1 / A+ A+ 0.53 0.50 02665WCT6 American Honda Finance Note 3.550% Due 01/12/2024 500,000.00 01/13/2020 2.06% 528,405.00 503,799.02 98.90 5.67% 494,511.50 8,332.64 0.14% (9,287.52) A3 / A- A 0.54 0.51 24422EVN6 John Deere Capital Corp Note 0.450% Due 01/17/2024 1,850,000.00 03/01/2021 0.47% 1,848,686.50 1,849,749.57 97.30 5.54% 1,799,961.20 3,792.50 0.49% (49,788.37) A2 / A A+ 0.55 0.53 91159HHV5 US Bancorp Callable Note Cont 1/5/2024 3.375% Due 02/05/2024 2,000,000.00 Various 2.63% 2,064,710.00 2,007,186.21 98.55 5.88% 1,970,988.00 27,375.00 0.55% (36,198.21) A3 / A A 0.60 0.57 637432NL5 National Rural Utilities Callable Note Cont 12/7/2023 2.950% Due 02/07/2024 1,317,000.00 04/06/2022 2.77% 1,320,871.98 1,318,012.57 98.36 5.75% 1,295,417.00 15,540.60 0.36% (22,595.57) A1 / A- A+ 0.61 0.58 808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024 0.750% Due 03/18/2024 2,230,000.00 Various 0.71% 2,232,745.00 2,230,587.55 96.47 5.84% 2,151,390.27 4,785.21 0.59% (79,197.28) A2 / A- A 0.72 0.69 023135BW5 Amazon.com Inc Note 0.450% Due 05/12/2024 1,835,000.00 05/10/2021 0.50% 1,832,320.90 1,834,227.56 95.87 5.39% 1,759,267.72 1,123.94 0.48% (74,959.84) A1 / AA AA- 0.87 0.84 91324PEB4 United Health Group Inc Callable Note Cont 5/15/2022 0.550% Due 05/15/2024 1,135,000.00 11/08/2021 0.78% 1,128,485.10 1,132,733.64 95.83 5.49% 1,087,687.52 797.65 0.30% (45,046.12) A3 / A+ A 0.88 0.85 14913R2L0 Caterpillar Financial Service Note 0.450% Due 05/17/2024 2,910,000.00 05/10/2021 0.50% 2,906,100.60 2,908,857.93 95.72 5.49% 2,785,452.00 1,600.50 0.76% (123,405.93) A2 / A A+ 0.88 0.86 89114QCA4 Toronto Dominion Bank Note 2.650% Due 06/12/2024 2,000,000.00 04/23/2021 0.63% 2,124,500.00 2,037,829.68 96.98 5.97% 1,939,556.00 2,797.22 0.53% (98,273.68) A1 / A AA- 0.95 0.92 As of June 30, 2023 30 70 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 06051GJY6 Bank of America Corp Callable Note Cont 6/14/2023 5.470% Due 06/14/2024 1,000,000.00 06/10/2021 5.51% 1,000,060.00 1,000,000.00 99.85 5.67% 998,503.00 2,583.06 0.27% (1,497.00) A1 / A- AA- 0.96 0.21 89236TJH9 Toyota Motor Credit Corp Note 0.500% Due 06/18/2024 890,000.00 06/15/2021 0.54% 888,940.90 889,658.88 95.28 5.58% 847,984.88 160.69 0.23% (41,674.00) A1 / A+ A+ 0.97 0.94 06367TQW3 Bank of Montreal Note 0.625% Due 07/09/2024 2,000,000.00 09/10/2021 0.65% 1,998,380.00 1,999,411.20 94.98 5.74% 1,899,570.00 5,972.22 0.52% (99,841.20) A2 / A- AA- 1.03 0.99 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022 0.625% Due 07/15/2024 470,000.00 06/29/2021 0.64% 469,760.30 469,917.12 95.19 5.44% 447,392.06 1,354.51 0.12% (22,525.06) A2 / A+ NR 1.04 1.01 69371RR40 Paccar Financial Corp Note 0.500% Due 08/09/2024 700,000.00 08/05/2021 0.52% 699,555.00 699,835.56 94.67 5.52% 662,679.50 1,380.55 0.18% (37,156.06) A1 / A+ NR 1.11 1.07 037833DM9 Apple Inc Callable Note Cont 8/11/2024 1.800% Due 09/11/2024 1,000,000.00 08/18/2021 0.58% 1,035,810.00 1,013,408.16 96.19 5.12% 961,852.00 5,500.00 0.26% (51,556.16) Aaa / AA+ NR 1.20 1.15 59217GEP0 Metlife Note 0.700% Due 09/27/2024 1,555,000.00 Various 0.85% 1,548,375.40 1,552,110.62 93.59 6.14% 1,455,389.81 2,842.20 0.40% (96,720.81) Aa3 / AA- AA- 1.25 1.20 78015K7C2 Royal Bank of Canada Note 2.250% Due 11/01/2024 2,500,000.00 05/19/2021 0.74% 2,628,225.00 2,549,763.51 95.42 5.86% 2,385,457.50 9,375.00 0.66% (164,306.01) A1 / A AA- 1.34 1.28 69371RR57 Paccar Financial Corp Note 0.900% Due 11/08/2024 2,120,000.00 11/02/2021 0.90% 2,119,872.80 2,119,942.44 93.90 5.63% 1,990,760.56 2,809.00 0.55% (129,181.88) A1 / A+ NR 1.36 1.31 74153WCQ0 Pricoa Global Funding Note 1.150% Due 12/06/2024 1,655,000.00 12/01/2021 1.19% 1,653,295.35 1,654,183.51 93.57 5.89% 1,548,636.46 1,321.70 0.42% (105,547.05) Aa3 / AA- AA- 1.44 1.38 64952WEK5 New York Life Global Note 1.450% Due 01/14/2025 3,255,000.00 01/11/2022 1.49% 3,251,484.60 3,253,194.19 93.96 5.60% 3,058,459.85 21,894.40 0.84% (194,734.34) Aaa / AA+ AAA 1.55 1.48 63743HFC1 National Rural Utilities Note 1.875% Due 02/07/2025 1,000,000.00 03/18/2022 2.76% 975,700.00 986,453.85 94.41 5.57% 944,102.00 7,500.00 0.26% (42,351.85) A2 / A- A 1.61 1.53 46647PAH9 JP Morgan Chase & Co Callable Note 2X 3/1/2024 3.220% Due 03/01/2025 2,000,000.00 04/23/2021 0.89% 2,130,820.00 2,030,721.92 98.02 6.27% 1,960,440.00 21,466.67 0.54% (70,281.92) A1 / A- AA- 1.67 0.64 57636QAN4 MasterCard Inc Callable Note 1x 02/03/2025 2.000% Due 03/03/2025 3,000,000.00 10/28/2021 1.04% 3,091,470.00 3,044,812.61 95.05 5.12% 2,851,440.00 19,666.67 0.79% (193,372.61) Aa3 / A+ NR 1.68 1.60 24422EWB1 John Deere Capital Corp Note 2.125% Due 03/07/2025 670,000.00 03/02/2022 2.14% 669,711.90 669,838.34 95.09 5.20% 637,087.59 4,508.54 0.18% (32,750.75) A2 / A A+ 1.69 1.61 59217GEW5 Metlife Note 2.800% Due 03/21/2025 970,000.00 03/14/2022 2.83% 969,136.70 969,504.55 95.06 5.85% 922,113.04 7,544.44 0.25% (47,391.51) Aa3 / AA- AA- 1.73 1.63 As of June 30, 2023 31 71 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 87612EBL9 Target Corp Callable Note Cont 4/15/25 2.250% Due 04/15/2025 3,000,000.00 03/15/2022 2.53% 2,975,610.00 2,985,821.28 95.24 5.06% 2,857,053.00 14,250.00 0.79% (128,768.28) A2 / A A 1.79 1.71 06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025 3.350% Due 04/25/2025 1,475,000.00 04/19/2022 3.35% 1,474,793.50 1,474,874.78 96.16 5.60% 1,418,309.85 9,058.96 0.39% (56,564.93) A1 / A AA- 1.82 1.72 46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024 0.824% Due 06/01/2025 1,000,000.00 05/26/2021 0.75% 1,002,160.00 1,000,662.19 95.06 6.07% 950,637.00 686.67 0.26% (50,025.19) A1 / A- AA- 1.92 1.83 26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/25 3.250% Due 08/15/2025 2,422,000.00 Various 3.25% 2,421,770.62 2,421,793.06 95.92 5.30% 2,323,281.70 29,736.78 0.64% (98,511.36) Aa3 / A NR 2.13 1.99 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1.746% Due 02/06/2026 900,000.00 02/02/2022 1.75% 900,000.00 900,000.00 93.69 5.93% 843,237.00 6,329.25 0.23% (56,763.00) A1 / A AA- 2.61 1.53 61747YET8 Morgan Stanley Callable Note Cont 7/17/2025 4.679% Due 07/17/2026 2,000,000.00 08/10/2022 4.34% 2,018,580.00 2,012,971.27 98.13 5.66% 1,962,576.00 42,630.89 0.55% (50,395.27) A1 / A- A+ 3.05 1.88 09247XAN1 Blackrock Inc Note 3.200% Due 03/15/2027 2,000,000.00 07/06/2022 3.47% 1,976,760.00 1,981,622.61 94.65 4.79% 1,893,014.00 18,844.44 0.52% (88,608.61) Aa3 / AA- NR 3.71 3.41 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027 4.000% Due 05/10/2027 3,000,000.00 Various 4.01% 2,998,940.00 2,999,090.23 96.34 5.05% 2,890,119.00 17,000.00 0.80% (108,971.23) A2 / A+ A+ 3.86 3.50 931142EX7 Wal-Mart Stores Callable Note Cont 09/09/2027 3.950% Due 09/09/2027 1,000,000.00 09/08/2022 3.91% 1,001,920.00 1,001,607.14 98.09 4.45% 980,882.00 12,288.89 0.27% (20,725.14) Aa2 / AA AA 4.20 3.77 89115A2H4 Toronto-Dominion Bank Note 4.693% Due 09/15/2027 1,060,000.00 09/08/2022 4.69% 1,060,000.00 1,060,000.00 97.87 5.26% 1,037,427.30 14,647.37 0.29% (22,572.70) A1 / A AA- 4.21 3.71 66815L2K4 Northwestern Mutual Glbl Note 4.350% Due 09/15/2027 2,200,000.00 Various 4.65% 2,170,840.00 2,175,160.74 97.49 5.02% 2,144,841.60 28,178.33 0.59% (30,319.14) Aaa / AA+ AAA 4.21 3.74 40139LBG7 Guardian Life Glob Fun Note 5.550% Due 10/28/2027 2,755,000.00 10/25/2022 5.56% 2,754,173.50 2,754,284.85 101.05 5.27% 2,784,045.97 26,757.94 0.77% 29,761.12 Aa1 / AA+ NR 4.33 3.77 TOTAL Corporate 65,374,000.00 2.12% 65,889,680.65 65,497,589.89 5.51% 62,925,762.88 426,783.04 17.34% (2,571,827.01) A1 / A+ AA- 1.84 1.63 As of June 30, 2023 32 72 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration LAIF 90LAIF$00 Local Agency Investment Fund State Pool 20,695,622.00 12/31/2022 3.26% 20,695,622.00 20,695,622.00 1.00 3.26% 20,695,622.00 249,194.91 5.75% 0.00 NR / NR NR 0.00 0.00 TOTAL LAIF 20,695,622.00 3.26% 20,695,622.00 20,695,622.00 3.26% 20,695,622.00 249,194.91 5.75% 0.00 NR / NR NR 0.00 0.00 Money Market Fund 38141W323 Goldman Sachs Financial Square Treasury Obligation Fund 14,216,503.04 Various 4.98% 14,216,503.04 14,216,503.04 1.00 4.98% 14,216,503.04 118,519.09 3.89% 0.00 Aaa / AAA NR 0.00 0.00 60934N104 Federated Investors Government Obligations Fund 622,235.83 Various 4.90% 622,235.83 622,235.83 1.00 4.90% 622,235.83 4,715.87 0.17% 0.00 Aaa / AAA AAA 0.00 0.00 TOTAL Money Market Fund 14,838,738.87 4.98% 14,838,738.87 14,838,738.87 4.98% 14,838,738.87 123,234.96 4.06% 0.00 Aaa / AAA AAA 0.00 0.00 Municipal Bonds 649791PP9 New York St Taxable-GO 2.010% Due 02/15/2024 2,000,000.00 10/29/2019 2.01% 2,000,000.00 2,000,000.00 97.80 5.64% 1,955,926.00 15,186.67 0.54% (44,074.00) Aa1 / AA+ AA+ 0.63 0.60 TOTAL Municipal Bonds 2,000,000.00 2.01% 2,000,000.00 2,000,000.00 5.64% 1,955,926.00 15,186.67 0.54% (44,074.00) Aa1 / AA+ AA+ 0.63 0.60 Negotiable CD 96130ASC3 Westpac Banking Corp NY Yankee CD 5.380% Due 02/16/2024 3,800,000.00 02/22/2023 5.44% 3,797,668.00 3,798,505.96 99.68 5.79% 3,787,707.00 76,665.00 1.06% (10,798.96) P-1 / A-1+ F-1 0.63 0.62 TOTAL Negotiable CD 3,800,000.00 5.44% 3,797,668.00 3,798,505.96 5.79% 3,787,707.00 76,665.00 1.06% (10,798.96) Aaa / AAA AA 0.63 0.62 Supranational 459058JM6 Intl. Bank Recon & Development Note 0.250% Due 11/24/2023 3,565,000.00 Various 0.28% 3,562,215.25 3,564,632.02 98.02 5.31% 3,494,273.97 916.01 0.96% (70,358.05) Aaa / AAA AAA 0.40 0.39 459058GQ0 Intl. Bank Recon & Development Note 2.500% Due 03/19/2024 2,350,000.00 01/26/2021 0.26% 2,514,359.00 2,387,575.97 97.92 5.48% 2,301,089.45 16,645.83 0.63% (86,486.52) Aaa / AAA AAA 0.72 0.69 4581X0DZ8 Inter-American Dev Bank Note 0.500% Due 09/23/2024 3,955,000.00 09/15/2021 0.52% 3,952,073.30 3,953,798.34 94.22 5.42% 3,726,203.25 5,383.19 1.02% (227,595.09) Aaa / AAA NR 1.24 1.19 As of June 30, 2023 33 73 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 45950KCR9 International Finance Corp Note 1.375% Due 10/16/2024 2,500,000.00 07/12/2021 0.54% 2,567,250.00 2,526,730.46 95.12 5.32% 2,378,040.00 7,161.46 0.65% (148,690.46) Aaa / AAA NR 1.30 1.25 TOTAL Supranational 12,370,000.00 0.41% 12,595,897.55 12,432,736.79 5.38% 11,899,606.67 30,106.49 3.26% (533,130.12) Aaa / AAA AAA 0.90 0.87 US Treasury 912797GF8 US Treasury Bill 5.067% Due 08/08/2023 10,000,000.00 06/27/2023 5.17% 9,942,286.81 9,942,286.81 99.42 5.17% 9,942,286.81 4,222.92 2.72% 0.00 P-1 / A-1+ F-1+ 0.11 0.10 912796YH6 US Treasury Bill 5.125% Due 09/07/2023 10,000,000.00 06/27/2023 5.25% 9,898,923.61 9,898,923.61 98.99 5.25% 9,898,923.61 4,270.83 2.71% 0.00 P-1 / A-1+ F-1+ 0.19 0.18 912796CQ0 US Treasury Bill 4.635% Due 09/14/2023 3,000,000.00 03/20/2023 4.81% 2,931,633.75 2,931,633.75 97.72 4.81% 2,931,633.75 39,397.50 0.81% 0.00 P-1 / A-1+ F-1+ 0.21 0.20 912797GU5 US Treasury Bill 5.160% Due 09/26/2023 3,000,000.00 06/12/2023 5.31% 2,954,850.00 2,954,850.00 98.50 5.31% 2,954,850.00 7,740.00 0.81% 0.00 P-1 / A-1+ F-1+ 0.24 0.23 912797GV3 US Treasury Bill 5.140% Due 10/03/2023 6,700,000.00 06/27/2023 5.28% 6,607,208.72 6,607,208.72 98.62 5.28% 6,607,208.72 2,869.83 1.81% 0.00 P-1 / A-1+ F-1+ 0.26 0.25 912797FB8 US Treasury Bill 4.822% Due 10/19/2023 2,000,000.00 04/24/2023 5.01% 1,952,578.75 1,952,578.75 97.63 5.01% 1,952,578.75 17,950.42 0.54% 0.00 P-1 / A-1+ F-1+ 0.30 0.30 912797HC4 US Treasury Bill 5.197% Due 10/24/2023 3,000,000.00 06/27/2023 5.36% 2,948,896.17 2,948,896.17 98.30 5.36% 2,948,896.17 1,299.25 0.81% 0.00 P-1 / A-1+ F-1+ 0.32 0.31 912797FC6 US Treasury Bill 5.200% Due 10/26/2023 6,350,000.00 05/23/2023 5.39% 6,207,830.56 6,207,830.56 97.76 5.39% 6,207,830.56 34,854.44 1.71% 0.00 P-1 / A-1+ F-1+ 0.32 0.31 91282CBA8 US Treasury Note 0.125% Due 12/15/2023 2,300,000.00 01/08/2021 0.22% 2,293,441.41 2,298,974.45 97.73 5.20% 2,247,711.80 125.68 0.62% (51,262.65) Aaa / AA+ AAA 0.46 0.45 91282CBE0 US Treasury Note 0.125% Due 01/15/2024 4,000,000.00 01/12/2021 0.24% 3,985,781.25 3,997,428.94 97.27 5.31% 3,890,624.00 2,306.63 1.07% (106,804.94) Aaa / AA+ AAA 0.55 0.53 91282CBV2 US Treasury Note 0.375% Due 04/15/2024 5,000,000.00 04/23/2021 0.32% 5,008,398.44 5,002,237.00 96.14 5.42% 4,806,835.00 3,944.67 1.32% (195,402.00) Aaa / AA+ AAA 0.79 0.77 91282CCC3 US Treasury Note 0.250% Due 05/15/2024 3,000,000.00 05/26/2021 0.30% 2,995,312.50 2,998,620.56 95.62 5.44% 2,868,633.00 957.88 0.79% (129,987.56) Aaa / AA+ AAA 0.88 0.85 91282CCL3 US Treasury Note 0.375% Due 07/15/2024 3,500,000.00 07/13/2021 0.46% 3,490,703.13 3,496,776.63 94.97 5.40% 3,324,044.50 6,054.90 0.91% (172,732.13) Aaa / AA+ AAA 1.04 1.01 912828YE4 US Treasury Note 1.250% Due 08/31/2024 4,000,000.00 02/24/2021 0.33% 4,128,125.00 4,042,641.76 95.38 5.38% 3,815,156.00 16,711.96 1.05% (227,485.76) Aaa / AA+ AAA 1.17 1.13 91282CCX7 US Treasury Note 0.375% Due 09/15/2024 5,000,000.00 09/08/2021 0.44% 4,990,234.38 4,996,061.68 94.25 5.34% 4,712,695.00 5,502.72 1.29% (283,366.68) Aaa / AA+ AAA 1.21 1.17 As of June 30, 2023 34 74 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 91282CDB4 US Treasury Note 0.625% Due 10/15/2024 1,800,000.00 12/29/2021 0.94% 1,784,460.94 1,792,809.38 94.21 5.32% 1,695,866.40 2,366.80 0.46% (96,942.98) Aaa / AA+ AAA 1.30 1.25 912828YM6 US Treasury Note 1.500% Due 10/31/2024 4,500,000.00 08/05/2021 0.42% 4,655,917.97 4,564,372.22 95.15 5.31% 4,281,678.00 11,372.28 1.17% (282,694.22) Aaa / AA+ AAA 1.34 1.29 91282CDH1 US Treasury Note 0.750% Due 11/15/2024 5,000,000.00 11/17/2021 0.85% 4,985,156.25 4,993,168.89 94.05 5.29% 4,702,735.00 4,789.40 1.29% (290,433.89) Aaa / AA+ AAA 1.38 1.33 912828Z52 US Treasury Note 1.375% Due 01/31/2025 3,000,000.00 02/16/2021 0.37% 3,117,656.25 3,047,258.05 94.31 5.16% 2,829,258.00 17,206.49 0.78% (218,000.05) Aaa / AA+ AAA 1.59 1.52 912828ZC7 US Treasury Note 1.125% Due 02/28/2025 2,700,000.00 01/26/2022 1.42% 2,676,058.59 2,687,095.41 93.73 5.09% 2,530,723.50 10,152.51 0.70% (156,371.91) Aaa / AA+ AAA 1.67 1.61 912828ZF0 US Treasury Note 0.500% Due 03/31/2025 2,900,000.00 03/17/2021 0.64% 2,884,140.63 2,893,124.74 92.50 5.03% 2,682,500.00 3,644.81 0.74% (210,624.74) Aaa / AA+ AAA 1.75 1.70 912828ZL7 US Treasury Note 0.375% Due 04/30/2025 5,000,000.00 Various 0.50% 4,974,296.88 4,988,331.51 92.01 4.99% 4,600,390.00 3,158.97 1.26% (387,941.51) Aaa / AA+ AAA 1.84 1.78 912828ZT0 US Treasury Note 0.250% Due 05/31/2025 5,000,000.00 10/05/2021 0.70% 4,919,335.94 4,957,640.78 91.51 4.94% 4,575,585.00 1,058.74 1.25% (382,055.78) Aaa / AA+ AAA 1.92 1.87 912828K74 US Treasury Note 2.000% Due 08/15/2025 2,300,000.00 04/05/2022 2.77% 2,243,218.75 2,264,089.45 94.34 4.83% 2,169,815.40 17,281.77 0.60% (94,274.05) Aaa / AA+ AAA 2.13 2.03 9128285C0 US Treasury Note 3.000% Due 09/30/2025 5,000,000.00 05/05/2022 2.99% 5,001,953.13 5,001,291.61 96.25 4.78% 4,812,305.00 37,704.92 1.33% (188,986.61) Aaa / AA+ AAA 2.25 2.13 91282CEF4 US Treasury Note 2.500% Due 03/31/2027 5,000,000.00 06/06/2022 3.02% 4,883,203.13 4,909,047.26 93.71 4.33% 4,685,740.00 31,420.77 1.29% (223,307.26) Aaa / AA+ AAA 3.75 3.50 91282CEN7 US Treasury Note 2.750% Due 04/30/2027 5,000,000.00 06/02/2022 2.93% 4,959,960.94 4,968,741.83 94.46 4.33% 4,723,240.00 23,165.76 1.30% (245,501.83) Aaa / AA+ AAA 3.84 3.57 91282CET4 US Treasury Note 2.625% Due 05/31/2027 3,000,000.00 07/08/2022 3.12% 2,933,203.13 2,946,487.66 93.96 4.32% 2,818,827.00 6,670.08 0.77% (127,660.66) Aaa / AA+ AAA 3.92 3.66 91282CEW7 US Treasury Note 3.250% Due 06/30/2027 5,000,000.00 08/17/2022 3.05% 5,045,703.13 5,037,550.12 96.17 4.30% 4,808,595.00 441.58 1.32% (228,955.12) Aaa / AA+ AAA 4.00 3.70 91282CFH9 US Treasury Note 3.125% Due 08/31/2027 5,000,000.00 09/08/2022 3.39% 4,940,429.69 4,950,101.26 95.64 4.28% 4,781,835.00 52,224.86 1.32% (168,266.26) Aaa / AA+ AAA 4.17 3.81 9128283F5 US Treasury Note 2.250% Due 11/15/2027 5,000,000.00 11/28/2022 3.93% 4,623,828.13 4,668,254.61 92.11 4.25% 4,605,275.00 14,368.21 1.26% (62,979.61) Aaa / AA+ AAA 4.38 4.08 As of June 30, 2023 35 75 Holdings Report City of Newport Beach Cons - Account #11134 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 91282CGC9 US Treasury Note 3.875% Due 12/31/2027 3,250,000.00 01/26/2023 3.60% 3,289,736.33 3,286,312.69 98.60 4.22% 3,204,425.25 342.22 0.88% (81,887.44) Aaa / AA+ AAA 4.51 4.08 TOTAL US Treasury 139,300,000.00 2.74% 138,254,464.29 138,232,626.86 5.00% 133,618,701.22 385,579.80 36.67% (4,613,925.64) Aaa / AAA AAA 1.60 1.51 TOTAL PORTFOLIO 375,050,901.85 2.19% 375,019,117.43 374,092,046.17 4.72% 363,965,526.35 1,493,884.55 100.00% (10,126,519.82) Aa1 / AA+ AAA 1.29 1.12 TOTAL MARKET VALUE PLUS ACCRUALS 365,459,410.90 As of June 30, 2023 36 76 SECTION |Section 4 |Transactions & Income Earned Statements 37 77 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 06/01/2023 60934N104 4,120.00 Federated Investors Government Obligations Fund 1.000 4.90%4,120.00 0.00 4,120.00 0.00 Purchase 06/02/2023 60934N104 7,154.47 Federated Investors Government Obligations Fund 1.000 4.90%7,154.47 0.00 7,154.47 0.00 Purchase 06/04/2023 60934N104 3,812.50 Federated Investors Government Obligations Fund 1.000 4.90%3,812.50 0.00 3,812.50 0.00 Purchase 06/06/2023 60934N104 9,516.25 Federated Investors Government Obligations Fund 1.000 4.90%9,516.25 0.00 9,516.25 0.00 Purchase 06/08/2023 60934N104 67,500.00 Federated Investors Government Obligations Fund 1.000 4.90%67,500.00 0.00 67,500.00 0.00 Purchase 06/09/2023 60934N104 8,500.00 Federated Investors Government Obligations Fund 1.000 4.90%8,500.00 0.00 8,500.00 0.00 Purchase 06/09/2023 60934N104 2,000,000.00 Federated Investors Government Obligations Fund 1.000 4.90%2,000,000.00 0.00 2,000,000.00 0.00 Purchase 06/10/2023 60934N104 102,000.00 Federated Investors Government Obligations Fund 1.000 4.90%102,000.00 0.00 102,000.00 0.00 Purchase 06/12/2023 60934N104 26,500.00 Federated Investors Government Obligations Fund 1.000 4.90%26,500.00 0.00 26,500.00 0.00 Purchase 06/13/2023 912797GU5 3,000,000.00 US Treasury Bill 5.16% Due 9/26/2023 98.495 5.31%2,954,850.00 0.00 2,954,850.00 0.00 Purchase 06/14/2023 60934N104 2,615.00 Federated Investors Government Obligations Fund 1.000 4.90%2,615.00 0.00 2,615.00 0.00 Purchase 06/15/2023 60934N104 1,437.50 Federated Investors Government Obligations Fund 1.000 4.90%1,437.50 0.00 1,437.50 0.00 Purchase 06/15/2023 60934N104 104,831.16 Federated Investors Government Obligations Fund 1.000 4.90%104,831.16 0.00 104,831.16 0.00 Purchase 06/15/2023 60934N104 2,146.00 Federated Investors Government Obligations Fund 1.000 4.90%2,146.00 0.00 2,146.00 0.00 Purchase 06/15/2023 60934N104 473.33 Federated Investors Government Obligations Fund 1.000 4.90%473.33 0.00 473.33 0.00 Purchase 06/15/2023 60934N104 379.25 Federated Investors Government Obligations Fund 1.000 4.90%379.25 0.00 379.25 0.00 38 78 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 06/15/2023 60934N104 1,015.00 Federated Investors Government Obligations Fund 1.000 4.90%1,015.00 0.00 1,015.00 0.00 Purchase 06/15/2023 60934N104 7,020.13 Federated Investors Government Obligations Fund 1.000 4.90%7,020.13 0.00 7,020.13 0.00 Purchase 06/15/2023 60934N104 180,345.27 Federated Investors Government Obligations Fund 1.000 4.90%180,345.27 0.00 180,345.27 0.00 Purchase 06/15/2023 60934N104 51,423.91 Federated Investors Government Obligations Fund 1.000 4.90%51,423.91 0.00 51,423.91 0.00 Purchase 06/15/2023 60934N104 123,657.88 Federated Investors Government Obligations Fund 1.000 4.90%123,657.88 0.00 123,657.88 0.00 Purchase 06/15/2023 60934N104 30,720.24 Federated Investors Government Obligations Fund 1.000 4.90%30,720.24 0.00 30,720.24 0.00 Purchase 06/15/2023 60934N104 34,086.53 Federated Investors Government Obligations Fund 1.000 4.90%34,086.53 0.00 34,086.53 0.00 Purchase 06/15/2023 60934N104 52,446.24 Federated Investors Government Obligations Fund 1.000 4.90%52,446.24 0.00 52,446.24 0.00 Purchase 06/16/2023 60934N104 603.75 Federated Investors Government Obligations Fund 1.000 4.90%603.75 0.00 603.75 0.00 Purchase 06/16/2023 60934N104 362.67 Federated Investors Government Obligations Fund 1.000 4.90%362.67 0.00 362.67 0.00 Purchase 06/18/2023 60934N104 2,225.00 Federated Investors Government Obligations Fund 1.000 4.90%2,225.00 0.00 2,225.00 0.00 Purchase 06/20/2023 60934N104 11,250.00 Federated Investors Government Obligations Fund 1.000 4.90%11,250.00 0.00 11,250.00 0.00 Purchase 06/20/2023 60934N104 2,905.42 Federated Investors Government Obligations Fund 1.000 4.90%2,905.42 0.00 2,905.42 0.00 Purchase 06/20/2023 60934N104 163,199.61 Federated Investors Government Obligations Fund 1.000 4.90%163,199.61 0.00 163,199.61 0.00 Purchase 06/20/2023 60934N104 144,821.40 Federated Investors Government Obligations Fund 1.000 4.90%144,821.40 0.00 144,821.40 0.00 Purchase 06/20/2023 60934N104 134,556.45 Federated Investors Government Obligations Fund 1.000 4.90%134,556.45 0.00 134,556.45 0.00 39 79 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 06/21/2023 60934N104 630.67 Federated Investors Government Obligations Fund 1.000 4.90%630.67 0.00 630.67 0.00 Purchase 06/21/2023 60934N104 60,745.01 Federated Investors Government Obligations Fund 1.000 4.90%60,745.01 0.00 60,745.01 0.00 Purchase 06/26/2023 60934N104 34,000.00 Federated Investors Government Obligations Fund 1.000 4.90%34,000.00 0.00 34,000.00 0.00 Purchase 06/26/2023 60934N104 2,000,000.00 Federated Investors Government Obligations Fund 1.000 4.90%2,000,000.00 0.00 2,000,000.00 0.00 Purchase 06/26/2023 60934N104 2,568.00 Federated Investors Government Obligations Fund 1.000 4.90%2,568.00 0.00 2,568.00 0.00 Purchase 06/26/2023 60934N104 1,849.75 Federated Investors Government Obligations Fund 1.000 4.90%1,849.75 0.00 1,849.75 0.00 Purchase 06/26/2023 60934N104 5,562.50 Federated Investors Government Obligations Fund 1.000 4.90%5,562.50 0.00 5,562.50 0.00 Purchase 06/26/2023 60934N104 6,935.42 Federated Investors Government Obligations Fund 1.000 4.90%6,935.42 0.00 6,935.42 0.00 Purchase 06/26/2023 60934N104 5,513.33 Federated Investors Government Obligations Fund 1.000 4.90%5,513.33 0.00 5,513.33 0.00 Purchase 06/26/2023 60934N104 8,367.50 Federated Investors Government Obligations Fund 1.000 4.90%8,367.50 0.00 8,367.50 0.00 Purchase 06/26/2023 60934N104 6,074.51 Federated Investors Government Obligations Fund 1.000 4.90%6,074.51 0.00 6,074.51 0.00 Purchase 06/26/2023 60934N104 87,257.60 Federated Investors Government Obligations Fund 1.000 4.90%87,257.60 0.00 87,257.60 0.00 Purchase 06/26/2023 60934N104 69,759.95 Federated Investors Government Obligations Fund 1.000 4.90%69,759.95 0.00 69,759.95 0.00 Purchase 06/26/2023 60934N104 66,568.56 Federated Investors Government Obligations Fund 1.000 4.90%66,568.56 0.00 66,568.56 0.00 40 80 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 06/28/2023 912797HC4 3,000,000.00 US Treasury Bill 5.197% Due 10/24/2023 98.297 5.36%2,948,896.17 0.00 2,948,896.17 0.00 Purchase 06/30/2023 60934N104 144,218.75 Federated Investors Government Obligations Fund 1.000 4.90%144,218.75 0.00 144,218.75 0.00 Subtotal 11,781,676.51 11,685,422.68 0.00 11,685,422.68 0.00 TOTAL ACQUISITIONS 11,781,676.51 11,685,422.68 0.00 11,685,422.68 0.00 DISPOSITIONS Sale 06/13/2023 60934N104 2,954,850.00 Federated Investors Government Obligations Fund 1.000 4.90%2,954,850.00 0.00 2,954,850.00 0.00 Sale 06/28/2023 60934N104 2,948,896.17 Federated Investors Government Obligations Fund 1.000 4.90%2,948,896.17 0.00 2,948,896.17 0.00 Subtotal 5,903,746.17 5,903,746.17 0.00 5,903,746.17 0.00 Paydown 06/15/2023 02582JJT8 0.00 American Express Credit Trust 2022-2 A 3.39% Due 5/17/2027 100.000 0.00 7,020.13 7,020.13 0.00 Paydown 06/15/2023 44891VAC5 180,176.04 Hyundai Auto Lease Trust 2021-B A3 0.33% Due 6/17/2024 100.000 180,176.04 169.23 180,345.27 0.00 Paydown 06/15/2023 44891WAC3 0.00 Hyundai Auto Lease Trust 2022-A A3 1.16% Due 1/15/2025 100.000 0.00 1,015.00 1,015.00 0.00 Paydown 06/15/2023 44933LAC7 51,234.31 Hyundai Auto Receivables Trust 2021-A A3 0.38% Due 9/15/2025 100.000 51,234.31 189.60 51,423.91 0.00 Paydown 06/15/2023 44934KAC8 123,089.10 Hyundai Auto Receivables Trust 2021-B A3 0.38% Due 1/15/2026 100.000 123,089.10 568.78 123,657.88 0.00 Paydown 06/15/2023 44935FAD6 0.00 Hyundai Auto Receivables Trust 2021-C A3 0.74% Due 5/15/2026 100.000 0.00 379.25 379.25 0.00 41 81 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss DISPOSITIONS Paydown 06/15/2023 47787JAC2 0.00 John Deere Owner Trust 2022-A A3 100.000 0.00 2,146.00 2,146.00 0.00 2.32% Due 9/16/2026 Paydown 06/15/2023 47788UAC6 30,581.37 John Deere Owner Trust 2021-A A3 100.000 30,581.37 138.87 30,720.24 0.00 0.36% Due 9/15/2025 Paydown 06/15/2023 47789KAC7 34,047.05 John Deere Owner Trust 2020-A A3 100.000 34,047.05 39.48 34,086.53 0.00 1.1% Due 8/15/2024 Paydown 06/15/2023 47789QAC4 52,048.69 John Deere Owner Trust 2021-B A3 100.000 52,048.69 397.55 52,446.24 0.00 0.52% Due 3/16/2026 Paydown 06/15/2023 58769KAD6 104,539.81 Mercedes-Benz Auto Lease Trust 2021-100.000 104,539.81 291.35 104,831.16 0.00 B A3 0.4% Due 11/15/2024 Paydown 06/15/2023 89238JAC9 0.00 Toyota Auto Receivables Trust 2021-D 100.000 0.00 473.33 473.33 0.00 A3 0.71% Due 4/15/2026 Paydown 06/16/2023 362554AC1 0.00 GM Financial Securitized Term 2021-4 100.000 0.00 362.67 362.67 0.00 A3 0.68% Due 9/16/2026 Paydown 06/16/2023 380146AC4 0.00 GM Financial Auto Receivables 2022-1 100.000 0.00 603.75 603.75 0.00 A3 1.26% Due 11/16/2026 Paydown 06/20/2023 36262XAC8 162,801.93 GM Financial Auto Lease Trust 2021-3 100.000 162,801.93 397.68 163,199.61 0.00 A2 0.39% Due 10/21/2024 Paydown 06/20/2023 36265MAC9 0.00 GM Financial Auto Lease Trust 2022-1 100.000 0.00 2,905.42 2,905.42 0.00 A3 1.9% Due 3/20/2025 Paydown 06/20/2023 89238EAC0 144,722.09 Toyota Lease Owner Trust 2021-A A3 100.000 144,722.09 99.31 144,821.40 0.00 0.39% Due 4/22/2024 Paydown 06/20/2023 89239CAC3 134,258.96 Toyota Lease Owner Trust 2021-B A3 100.000 134,258.96 297.49 134,556.45 0.00 0.42% Due 10/21/2024 Paydown 06/21/2023 43813RAC1 60,639.57 Honda Auto Receivables 2020-1 A3 100.000 60,639.57 105.44 60,745.01 0.00 1.61% Due 4/22/2024 42 82 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss DISPOSITIONS Paydown 06/21/2023 43815GAC3 0.00 Honda Auto Receivables Trust 2021-4 A3 0.88% Due 1/21/2026 100.000 0.00 630.67 630.67 0.00 Paydown 06/26/2023 05601XAC3 86,526.66 BMW Vehicle Lease Trust 2022-1 A3 1.1% Due 3/25/2025 100.000 86,526.66 730.94 87,257.60 0.00 Paydown 06/26/2023 05602RAD3 0.00 BMW Vehicle Owner Trust 2022-A A3 3.21% Due 8/25/2026 100.000 0.00 2,568.00 2,568.00 0.00 Paydown 06/26/2023 09690AAC7 69,646.37 BMW Vehicle Lease Trust 2021-2 A3 0.33% Due 12/26/2024 100.000 69,646.37 113.58 69,759.95 0.00 Paydown 06/26/2023 3137B7YY9 62,063.15 FHLMC K037 A2 3.49% Due 1/25/2024 100.000 62,063.15 4,505.41 66,568.56 0.00 Paydown 06/26/2023 3137BFE98 0.00 FHLMC K041 A2 3.171% Due 10/25/2024 100.000 0.00 1,849.75 1,849.75 0.00 Paydown 06/26/2023 3137BFXT3 0.00 FHLMC K042 A2 2.67% Due 12/25/2024 100.000 0.00 5,562.50 5,562.50 0.00 Paydown 06/26/2023 3137BKRJ1 0.00 FHLMC K047 A2 3.329% Due 5/25/2025 100.000 0.00 6,935.42 6,935.42 0.00 Paydown 06/26/2023 3137BM7C4 0.00 FHLMC K051 A2 3.308% Due 9/25/2025 100.000 0.00 5,513.33 5,513.33 0.00 Paydown 06/26/2023 3137BTUM1 0.00 FHLMC K061 A2 3.347% Due 11/25/2026 100.000 0.00 8,367.50 8,367.50 0.00 Paydown 06/26/2023 3137F2LJ3 0.00 FHLMC K066 A2 3.117% Due 6/25/2027 100.000 0.00 6,074.51 6,074.51 0.00 Subtotal 1,296,375.10 1,296,375.10 60,451.94 1,356,827.04 0.00 Maturity 06/09/2023 57629WCU2 2,000,000.00 Mass Mutual Global funding Note 0.85% Due 6/9/2023 100.000 2,000,000.00 0.00 2,000,000.00 0.00 43 83 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss DISPOSITIONS Maturity 06/26/2023 931142EK5 2,000,000.00 Wal-Mart Stores Callable Note Cont 5/26/2023 3.4% Due 6/26/2023 100.000 2,000,000.00 0.00 2,000,000.00 0.00 Subtotal 4,000,000.00 4,000,000.00 0.00 4,000,000.00 0.00 TOTAL DISPOSITIONS 11,200,121.27 11,200,121.27 60,451.94 11,260,573.21 0.00 OTHER TRANSACTIONS Interest 06/01/2023 46647PCH7 1,000,000.00 JP Morgan Chase & Co Callable Note Cont 6/1/2024 0.824% Due 6/1/2025 0.000 4,120.00 0.00 4,120.00 0.00 Interest 06/04/2023 3137EAFA2 3,050,000.00 FHLMC Note 0.25% Due 12/4/2023 0.000 3,812.50 0.00 3,812.50 0.00 Interest 06/06/2023 74153WCQ0 1,655,000.00 Pricoa Global Funding Note 1.15% Due 12/6/2024 0.000 9,516.25 0.00 9,516.25 0.00 Interest 06/08/2023 3130A0F70 4,000,000.00 FHLB Note 3.375% Due 12/8/2023 0.000 67,500.00 0.00 67,500.00 0.00 Interest 06/09/2023 57629WCU2 2,000,000.00 Mass Mutual Global funding Note 0.85% Due 6/9/2023 0.000 8,500.00 0.00 8,500.00 0.00 Interest 06/10/2023 3130ATUS4 4,000,000.00 FHLB Note 4.25% Due 12/10/2027 0.000 102,000.00 0.00 102,000.00 0.00 Interest 06/12/2023 89114QCA4 2,000,000.00 Toronto Dominion Bank Note 2.65% Due 6/12/2024 0.000 26,500.00 0.00 26,500.00 0.00 Interest 06/14/2023 06051GJY6 1,000,000.00 Bank of America Corp Callable Note Cont 6/14/2023 5.47% Due 6/14/2024 0.000 2,615.00 0.00 2,615.00 0.00 Interest 06/15/2023 91282CBA8 2,300,000.00 US Treasury Note 0.125% Due 12/15/2023 0.000 1,437.50 0.00 1,437.50 0.00 44 84 Transaction Ledger As of June 30, 2023 City of Newport Beach Account #10 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss OTHER TRANSACTIONS Interest 06/18/2023 89236TJH9 890,000.00 Toyota Motor Credit Corp Note 0.5% Due 6/18/2024 0.000 2,225.00 0.00 2,225.00 0.00 Interest 06/20/2023 3130AQF40 2,250,000.00 FHLB Note 1% Due 12/20/2024 0.000 11,250.00 0.00 11,250.00 0.00 Interest 06/26/2023 931142EK5 2,000,000.00 Wal-Mart Stores Callable Note Cont 5/26/2023 3.4% Due 6/26/2023 0.000 34,000.00 0.00 34,000.00 0.00 Interest 06/30/2023 91282CEW7 5,000,000.00 US Treasury Note 3.25% Due 6/30/2027 0.000 81,250.00 0.00 81,250.00 0.00 Interest 06/30/2023 91282CGC9 3,250,000.00 US Treasury Note 3.875% Due 12/31/2027 0.000 62,968.75 0.00 62,968.75 0.00 Subtotal 34,395,000.00 417,695.00 0.00 417,695.00 0.00 Dividend 06/02/2023 60934N104 744,305.49 Federated Investors Government Obligations Fund 0.000 7,154.47 0.00 7,154.47 0.00 Subtotal 744,305.49 7,154.47 0.00 7,154.47 0.00 TOTAL OTHER TRANSACTIONS 35,139,305.49 424,849.47 0.00 424,849.47 0.00 45 85 Transaction Ledger As of June 30, 2023 City of Newport Beach- Short Term Account #12 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Purchase 06/02/2023 38141W323 67,603.11 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%67,603.11 0.00 67,603.11 0.00 Purchase 06/09/2023 38141W323 41,437.50 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%41,437.50 0.00 41,437.50 0.00 Purchase 06/09/2023 38141W323 3,900,000.00 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%3,900,000.00 0.00 3,900,000.00 0.00 Purchase 06/13/2023 38141W323 23,150,000.00 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%23,150,000.00 0.00 23,150,000.00 0.00 Purchase 06/26/2023 38141W323 35,400.00 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%35,400.00 0.00 35,400.00 0.00 Purchase 06/26/2023 38141W323 4,000,000.00 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%4,000,000.00 0.00 4,000,000.00 0.00 Purchase 06/28/2023 912796YH6 10,000,000.00 US Treasury Bill 5.125% Due 9/7/2023 98.989 5.25%9,898,923.61 0.00 9,898,923.61 0.00 Purchase 06/28/2023 912797GF8 10,000,000.00 US Treasury Bill 5.067% Due 8/8/2023 99.423 5.17%9,942,286.81 0.00 9,942,286.81 0.00 Purchase 06/28/2023 912797GV3 6,700,000.00 US Treasury Bill 5.14% Due 10/3/2023 98.615 5.28%6,607,208.72 0.00 6,607,208.72 0.00 Subtotal 57,894,440.61 57,642,859.75 0.00 57,642,859.75 0.00 TOTAL ACQUISITIONS 57,894,440.61 57,642,859.75 0.00 57,642,859.75 0.00 DISPOSITIONS Sale 06/28/2023 38141W323 26,448,419.14 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 4.96%26,448,419.14 0.00 26,448,419.14 0.00 Subtotal 26,448,419.14 26,448,419.14 0.00 26,448,419.14 0.00 Maturity 06/09/2023 3133834G3 3,900,000.00 FHLB Note 2.125% Due 6/9/2023 100.000 3,900,000.00 0.00 3,900,000.00 0.00 Maturity 06/13/2023 912797FN2 23,150,000.00 US Treasury Bill 4.719% Due 6/13/2023 100.000 22,998,271.04 151,728.96 23,150,000.00 0.00 46 86 Transaction Ledger As of June 30, 2023 City of Newport Beach- Short Term Account #12 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss DISPOSITIONS Maturity 06/26/2023 3133EKSN7 4,000,000.00 FFCB Note 1.77% Due 6/26/2023 100.000 4,000,000.00 0.00 4,000,000.00 0.00 Subtotal 31,050,000.00 30,898,271.04 151,728.96 31,050,000.00 0.00 Security Withdrawal 06/13/2023 38141W323 5,000,000.00 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 5,000,000.00 0.00 5,000,000.00 0.00 Security Withdrawal 06/26/2023 38141W323 5,000,000.00 Goldman Sachs Financial Square Treasury Obligation Fund 1.000 5,000,000.00 0.00 5,000,000.00 0.00 Subtotal 10,000,000.00 10,000,000.00 0.00 10,000,000.00 0.00 TOTAL DISPOSITIONS 67,498,419.14 67,346,690.18 151,728.96 67,498,419.14 0.00 OTHER TRANSACTIONS Interest 06/09/2023 3133834G3 3,900,000.00 FHLB Note 2.125% Due 6/9/2023 0.000 41,437.50 0.00 41,437.50 0.00 Interest 06/26/2023 3133EKSN7 4,000,000.00 FFCB Note 1.77% Due 6/26/2023 0.000 35,400.00 0.00 35,400.00 0.00 Subtotal 7,900,000.00 76,837.50 0.00 76,837.50 0.00 Dividend 06/02/2023 38141W323 19,470,481.57 Goldman Sachs Financial Square Treasury Obligation Fund 0.000 67,603.11 0.00 67,603.11 0.00 Subtotal 19,470,481.57 67,603.11 0.00 67,603.11 0.00 TOTAL OTHER TRANSACTIONS 27,370,481.57 144,440.61 0.00 144,440.61 0.00 47 87 Transaction Ledger As of June 30, 2023 City Of Newport Beach Reporting Account #11044 Transaction Type Price Acq/DispSettlement Date YieldCUSIP Quantity Security Description Amount Interest Pur/Sold Total Amount Gain/Loss ACQUISITIONS Security 06/30/2023 90CASH$00 1,602,396.18 Cash Custodial Cash Account 1.000 1,602,396.18 0.00 1,602,396.18 0.00 Contribution Subtotal 1,602,396.18 1,602,396.18 0.00 1,602,396.18 0.00 TOTAL ACQUISITIONS 1,602,396.18 1,602,396.18 0.00 1,602,396.18 0.00 DISPOSITIONS Security Withdrawal 06/30/2023 90LAIF$00 2,000,000.00 Local Agency Investment Fund State Pool 1.000 2,000,000.00 0.00 2,000,000.00 0.00 Subtotal 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 TOTAL DISPOSITIONS 2,000,000.00 2,000,000.00 0.00 2,000,000.00 0.00 48 88 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP FIXED INCOME Security Description Trade Date Settle Date Units 023135BW5 Amazon.com Inc 05/10/2021 Note 05/12/2021 0.45% Due 05/12/2024 1,835,000.00 02582JJT8 American Express Credit Trust 05/17/2022 2022-2 A 05/24/2022 3.39% Due 05/17/2027 2,485,000.00 02665WCT6 American Honda Finance 01/13/2020 Note 01/15/2020 3.55% Due 01/12/2024 500,000.00 037833DM9 Apple Inc 08/18/2021 Callable Note Cont 8/11/2024 08/20/2021 1.8% Due 09/11/2024 1,000,000.00 05601XAC3 BMW Vehicle Lease Trust 01/11/2022 2022-1 A3 01/19/2022 1.1% Due 03/25/2025 710,867.19 05602RAD3 BMW Vehicle Owner Trust 05/10/2022 2022-A A3 05/18/2022 3.21% Due 08/25/2026 960,000.00 06051GJY6 Bank of America Corp 06/10/2021 Callable Note Cont 6/14/2023 06/14/2021 5.47% Due 06/14/2024 1,000,000.00 06367TQW3 Bank of Montreal 09/10/2021 Note 09/14/2021 0.625% Due 07/09/2024 2,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 1,834,154.23 435.81 73.33 761.46 0.00 0.00 0.00 0.00 1,123.94 73.33 1,834,227.56 688.13 761.46 2,484,638.94 3,744.07 15.17 7,035.30 0.00 7,020.13 0.00 0.00 3,744.07 15.17 2,484,654.11 7,020.13 7,035.30 504,383.49 6,853.47 0.00 894.70 0.00 0.00 584.47 0.00 8,332.64 (584.47) 503,799.02 1,479.17 894.70 1,014,396.48 4,000.00 0.00 511.68 0.00 0.00 988.32 0.00 5,500.00 (988.32) 1,013,408.16 1,500.00 511.68 797,349.22 146.19 8.85 723.93 0.00 730.94 0.00 86,526.66 130.33 8.85 710,831.41 715.08 723.93 959,966.76 513.60 1.32 2,569.32 0.00 2,568.00 0.00 0.00 513.60 1.32 959,968.08 2,568.00 2,569.32 1,000,001.07 2,426.14 0.00 2,770.85 0.00 2,615.00 1.07 0.00 2,583.06 (1.07) 1,000,000.00 2,771.92 2,770.85 1,999,363.97 4,930.56 47.23 1,088.89 0.00 0.00 0.00 0.00 5,972.22 47.23 1,999,411.20 1,041.66 1,088.89 49 89 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 06406FAD5 Bank of NY Mellon Corp 03/27/2019 Callable Note Cont 6/16/2023 03/29/2019 2.2% Due 08/16/2023 1,000,000.00 06406RBC0 Bank of NY Mellon Corp 04/19/2022 Callable Note Cont 3/25/2025 04/26/2022 3.35% Due 04/25/2025 1,475,000.00 09247XAN1 Blackrock Inc 07/06/2022 Note 07/08/2022 3.2% Due 03/15/2027 2,000,000.00 09690AAC7 BMW Vehicle Lease Trust 09/08/2021 2021-2 A3 09/15/2021 0.33% Due 12/26/2024 343,370.63 14913R2L0 Caterpillar Financial Service 05/10/2021 Note 05/17/2021 0.45% Due 05/17/2024 2,910,000.00 24422EVN6 John Deere Capital Corp 03/01/2021 Note 03/04/2021 0.45% Due 01/17/2024 1,850,000.00 24422EWB1 John Deere Capital Corp 03/02/2022 Note 03/07/2022 2.125% Due 03/07/2025 670,000.00 26442UAA2 Duke Energy Progress LLC Various Callable Note Cont 5/15/25 Various 3.25% Due 08/15/2025 2,422,000.00 3130A0F70 FHLB 12/21/2018 Note 12/24/2018 3.375% Due 12/08/2023 4,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 998,871.16 6,416.67 445.59 2,278.92 0.00 0.00 0.00 0.00 8,250.00 445.59 999,316.75 1,833.33 2,278.92 1,474,869.12 4,941.25 5.66 4,123.37 0.00 0.00 0.00 0.00 9,058.96 5.66 1,474,874.78 4,117.71 4,123.37 1,981,215.13 13,511.11 407.48 5,740.81 0.00 0.00 0.00 0.00 18,844.44 407.48 1,981,622.61 5,333.33 5,740.81 413,006.38 22.72 3.07 112.82 0.00 113.58 0.00 69,646.37 18.89 3.07 343,363.08 109.75 112.82 2,908,751.20 509.25 106.73 1,197.98 0.00 0.00 0.00 0.00 1,600.50 106.73 2,908,857.93 1,091.25 1,197.98 1,849,712.01 3,098.75 37.56 731.31 0.00 0.00 0.00 0.00 3,792.50 37.56 1,849,749.57 693.75 731.31 669,830.45 3,322.08 7.89 1,194.35 0.00 0.00 0.00 0.00 4,508.54 7.89 669,838.34 1,186.46 1,194.35 2,421,790.52 23,177.19 48.59 6,562.13 0.00 0.00 46.05 0.00 29,736.78 2.54 2,421,793.06 6,559.59 6,562.13 4,010,358.67 64,875.00 0.00 9,614.42 0.00 67,500.00 1,635.58 0.00 8,625.00 (1,635.58) 4,008,723.09 11,250.00 9,614.42 50 90 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 3130A7PH2 FHLB 03/03/2020 Note 03/04/2020 1.875% Due 03/08/2024 4,000,000.00 3130AQF40 FHLB 12/21/2021 Note 12/22/2021 1% Due 12/20/2024 2,250,000.00 3130ATUS4 FHLB 01/30/2023 Note 02/01/2023 4.25% Due 12/10/2027 4,000,000.00 3133EKMX1 FFCB 07/30/2019 Note 07/31/2019 2.23% Due 02/23/2024 2,000,000.00 3133ENKS8 FFCB 01/06/2022 Note 01/11/2022 1.125% Due 01/06/2025 2,000,000.00 3133ENPY0 FFCB 03/03/2022 Note 03/04/2022 1.75% Due 02/25/2025 4,000,000.00 3135G05X7 FNMA 12/02/2021 Note 12/03/2021 0.375% Due 08/25/2025 3,500,000.00 3135G06H1 FNMA 11/23/2020 Note 11/25/2020 0.25% Due 11/27/2023 3,775,000.00 3137B7YY9 FHLMC 11/05/2021 K037 A2 11/09/2021 3.49% Due 01/25/2024 1,487,075.84 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 4,030,957.95 17,291.67 0.00 2,944.88 0.00 0.00 3,305.12 0.00 23,541.67 (3,305.12) 4,027,652.83 6,250.00 2,944.88 2,248,971.99 10,062.50 54.30 1,929.30 0.00 11,250.00 0.00 0.00 687.50 54.30 2,249,026.29 1,875.00 1,929.30 4,078,762.23 97,750.00 0.00 12,737.23 0.00 102,000.00 1,429.44 0.00 9,916.67 (1,429.44) 4,077,332.79 14,166.67 12,737.23 2,004,450.00 12,141.11 0.00 3,216.67 0.00 0.00 500.00 0.00 15,857.78 (500.00) 2,003,950.00 3,716.67 3,216.67 1,997,587.08 9,062.50 123.74 1,998.74 0.00 0.00 0.00 0.00 10,937.50 123.74 1,997,710.82 1,875.00 1,998.74 3,999,580.17 18,666.67 19.83 5,853.16 0.00 0.00 0.00 0.00 24,500.00 19.83 3,999,600.00 5,833.33 5,853.16 3,441,075.33 3,500.00 2,166.35 3,260.10 0.00 0.00 0.00 0.00 4,593.75 2,166.35 3,443,241.68 1,093.75 3,260.10 3,774,297.79 104.86 117.69 904.15 0.00 0.00 0.00 0.00 891.32 117.69 3,774,415.48 786.46 904.15 1,573,999.21 4,505.41 0.00 320.84 0.00 4,505.41 4,004.07 62,063.15 4,324.91 (4,004.07) 1,507,931.99 4,324.91 320.84 51 91 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 3137BFE98 FHLMC 04/21/2022 K041 A2 04/26/2022 3.171% Due 10/25/2024 700,000.00 3137BFXT3 FHLMC 08/19/2021 K042 A2 08/23/2021 2.67% Due 12/25/2024 2,500,000.00 3137BKRJ1 FHLMC 05/19/2022 K047 A2 05/24/2022 3.329% Due 05/25/2025 2,500,000.00 3137BM7C4 FHLMC 05/16/2022 K051 A2 05/19/2022 3.308% Due 09/25/2025 2,000,000.00 3137BTUM1 FHLMC 10/05/2022 K061 A2 10/11/2022 3.347% Due 11/25/2026 3,000,000.00 3137EAEY1 FHLMC Various Note Various 0.125% Due 10/16/2023 5,180,000.00 3137EAEZ8 FHLMC 11/03/2020 Note 11/05/2020 0.25% Due 11/06/2023 4,275,000.00 3137EAFA2 FHLMC 12/02/2020 Note 12/04/2020 0.25% Due 12/04/2023 3,050,000.00 3137F2LJ3 FHLMC 10/20/2022 K066 A2 10/25/2022 3.117% Due 06/25/2027 2,338,600.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 701,230.81 1,849.75 0.00 1,774.08 0.00 1,849.75 75.67 0.00 1,849.75 (75.67) 701,155.14 1,849.75 1,774.08 2,570,647.60 1,112.50 0.00 1,701.98 0.00 5,562.50 3,860.52 0.00 1,112.50 (3,860.52) 2,566,787.08 5,562.50 1,701.98 2,509,428.88 6,935.42 0.00 6,531.33 0.00 6,935.42 404.09 0.00 6,935.42 (404.09) 2,509,024.79 6,935.42 6,531.33 2,010,653.69 5,513.33 0.00 5,124.98 0.00 5,513.33 388.35 0.00 5,513.33 (388.35) 2,010,265.34 5,513.33 5,124.98 2,895,212.15 8,367.50 2,516.92 10,884.42 0.00 8,367.50 0.00 0.00 8,367.50 2,516.92 2,897,729.07 8,367.50 10,884.42 5,177,593.68 809.38 526.93 1,066.51 0.00 0.00 0.00 0.00 1,348.96 526.93 5,178,120.61 539.58 1,066.51 4,274,445.34 742.19 105.32 995.94 0.00 0.00 0.00 0.00 1,632.81 105.32 4,274,550.66 890.62 995.94 3,049,487.10 3,748.96 82.72 718.14 0.00 3,812.50 0.00 0.00 571.88 82.72 3,049,569.82 635.42 718.14 2,198,223.81 6,074.51 2,882.46 8,956.97 0.00 6,074.51 0.00 0.00 6,074.51 2,882.46 2,201,106.27 6,074.51 8,956.97 52 92 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 362554AC1 GM Financial Securitized Term 10/13/2021 2021-4 A3 10/21/2021 0.68% Due 09/16/2026 640,000.00 36262XAC8 GM Financial Auto Lease Trust 08/10/2021 2021-3 A2 08/18/2021 0.39% Due 10/21/2024 1,060,832.51 36265MAC9 GM Financial Auto Lease Trust 02/15/2022 2022-1 A3 02/23/2022 1.9% Due 03/20/2025 1,835,000.00 380146AC4 GM Financial Auto Receivables 01/11/2022 2022-1 A3 01/19/2022 1.26% Due 11/16/2026 575,000.00 40139LBG7 Guardian Life Glob Fun 10/25/2022 Note 10/28/2022 5.55% Due 10/28/2027 2,755,000.00 43813RAC1 Honda Auto Receivables 02/19/2020 2020-1 A3 02/26/2020 1.61% Due 04/22/2024 17,950.47 43815GAC3 Honda Auto Receivables Trust 11/16/2021 2021-4 A3 11/24/2021 0.88% Due 01/21/2026 860,000.00 44891VAC5 Hyundai Auto Lease Trust 06/08/2021 2021-B A3 06/16/2021 0.33% Due 06/17/2024 435,189.40 44891WAC3 Hyundai Auto Lease Trust 01/11/2022 2022-A A3 01/19/2022 1.16% Due 01/15/2025 1,050,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 639,991.41 181.33 0.39 363.06 0.00 362.67 0.00 0.00 181.33 0.39 639,991.80 362.67 363.06 1,223,630.06 145.82 1.07 379.35 0.00 397.68 0.00 162,801.93 126.42 1.07 1,060,829.20 378.28 379.35 1,834,993.50 1,065.32 0.61 2,906.03 0.00 2,905.42 0.00 0.00 1,065.32 0.61 1,834,994.11 2,905.42 2,906.03 574,970.55 301.88 1.23 604.98 0.00 603.75 0.00 0.00 301.88 1.23 574,971.78 603.75 604.98 2,754,271.27 14,016.06 13.58 12,755.46 0.00 0.00 0.00 0.00 26,757.94 13.58 2,754,284.85 12,741.88 12,755.46 78,586.73 35.15 2.62 80.94 0.00 105.44 0.00 60,639.57 8.03 2.62 17,949.78 78.32 80.94 859,903.46 210.22 4.59 635.26 0.00 630.67 0.00 0.00 210.22 4.59 859,908.05 630.67 635.26 615,353.52 90.25 5.88 148.69 0.00 169.23 0.00 180,176.04 63.83 5.88 435,183.36 142.81 148.69 1,049,990.94 541.33 0.85 1,015.85 0.00 1,015.00 0.00 0.00 541.33 0.85 1,049,991.79 1,015.00 1,015.85 53 93 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 44933LAC7 Hyundai Auto Receivables Trust 04/20/2021 2021-A A3 04/28/2021 0.38% Due 09/15/2025 547,499.20 44934KAC8 Hyundai Auto Receivables Trust 07/20/2021 2021-B A3 07/28/2021 0.38% Due 01/15/2026 1,673,071.39 44935FAD6 Hyundai Auto Receivables Trust 11/09/2021 2021-C A3 11/17/2021 0.74% Due 05/15/2026 615,000.00 4581X0DZ8 Inter-American Dev Bank 09/15/2021 Note 09/23/2021 0.5% Due 09/23/2024 3,955,000.00 459058GQ0 Intl. Bank Recon & Development 01/26/2021 Note 01/28/2021 2.5% Due 03/19/2024 2,350,000.00 459058JM6 Intl. Bank Recon & Development Various Note Various 0.25% Due 11/24/2023 3,565,000.00 45950KCR9 International Finance Corp 07/12/2021 Note 07/14/2021 1.375% Due 10/16/2024 2,500,000.00 46647PAH9 JP Morgan Chase & Co 04/23/2021 Callable Note 2X 3/1/2024 04/27/2021 3.22% Due 03/01/2025 2,000,000.00 46647PCH7 JP Morgan Chase & Co 05/26/2021 Callable Note Cont 6/1/2024 06/01/2021 0.824% Due 06/01/2025 1,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 598,713.76 101.12 3.24 184.19 0.00 189.60 0.00 51,234.31 92.47 3.24 547,482.69 180.95 184.19 1,795,997.08 303.35 20.87 568.86 0.00 568.78 0.00 123,089.10 282.56 20.87 1,672,928.85 547.99 568.86 614,929.40 202.27 3.57 382.82 0.00 379.25 0.00 0.00 202.27 3.57 614,932.97 379.25 382.82 3,953,718.23 3,735.28 80.11 1,728.02 0.00 0.00 0.00 0.00 5,383.19 80.11 3,953,798.34 1,647.91 1,728.02 2,391,878.56 11,750.00 0.00 593.24 0.00 0.00 4,302.59 0.00 16,645.83 (4,302.59) 2,387,575.97 4,895.83 593.24 3,564,556.40 173.30 92.19 818.33 0.00 0.00 16.57 0.00 916.01 75.62 3,564,632.02 742.71 818.33 2,528,425.84 4,296.88 0.00 1,169.20 0.00 0.00 1,695.38 0.00 7,161.46 (1,695.38) 2,526,730.46 2,864.58 1,169.20 2,034,499.21 16,100.00 0.00 1,589.38 0.00 0.00 3,777.29 0.00 21,466.67 (3,777.29) 2,030,721.92 5,366.67 1,589.38 1,000,721.31 4,120.00 0.00 627.55 0.00 4,120.00 59.12 0.00 686.67 (59.12) 1,000,662.19 686.67 627.55 54 94 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 47787JAC2 John Deere Owner Trust 03/10/2022 2022-A A3 03/16/2022 2.32% Due 09/16/2026 1,110,000.00 47788UAC6 John Deere Owner Trust 03/02/2021 2021-A A3 03/10/2021 0.36% Due 09/15/2025 432,308.31 47789KAC7 John Deere Owner Trust 03/04/2020 2020-A A3 03/11/2020 1.1% Due 08/15/2024 9,016.88 47789QAC4 John Deere Owner Trust 07/13/2021 2021-B A3 07/21/2021 0.52% Due 03/16/2026 865,377.71 57629WCU2 Mass Mutual Global funding 12/15/2021 Note 12/17/2021 Due 06/09/2023 0.00 57636QAN4 MasterCard Inc 10/28/2021 Callable Note 1x 02/03/2025 11/01/2021 2% Due 03/03/2025 3,000,000.00 58769KAD6 Mercedes-Benz Auto Lease Trust 06/22/2021 2021-B A3 06/29/2021 0.4% Due 11/15/2024 769,504.21 59217GEP0 Metlife Various Note Various 0.7% Due 09/27/2024 1,555,000.00 59217GEW5 Metlife 03/14/2022 Note 03/21/2022 2.8% Due 03/21/2025 970,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 1,109,839.32 1,144.53 5.76 2,151.76 0.00 2,146.00 0.00 0.00 1,144.53 5.76 1,109,845.08 2,146.00 2,151.76 462,855.72 74.06 4.14 138.12 0.00 138.87 0.00 30,581.37 69.17 4.14 432,278.49 133.98 138.12 43,063.21 21.05 0.58 23.42 0.00 39.48 0.00 34,047.05 4.41 0.58 9,016.74 22.84 23.42 917,386.31 212.03 4.01 389.53 0.00 397.55 0.00 52,048.69 200.00 4.01 865,341.63 385.52 389.53 2,000,054.32 8,122.22 0.00 323.46 0.00 8,500.00 54.32 2,000,000.00 0.00 (54.32) 0.00 377.78 323.46 3,047,118.58 14,666.67 0.00 2,694.03 0.00 0.00 2,305.97 0.00 19,666.67 (2,305.97) 3,044,812.61 5,000.00 2,694.03 874,027.84 155.39 3.81 276.57 0.00 291.35 0.00 104,539.81 136.80 3.81 769,491.84 272.76 276.57 1,551,919.70 1,935.11 190.92 1,098.01 0.00 0.00 0.00 0.00 2,842.20 190.92 1,552,110.62 907.09 1,098.01 969,480.92 5,281.11 23.63 2,286.96 0.00 0.00 0.00 0.00 7,544.44 23.63 969,504.55 2,263.33 2,286.96 55 95 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 61747YET8 Morgan Stanley 08/10/2022 Callable Note Cont 7/17/2025 08/12/2022 4.679% Due 07/17/2026 2,000,000.00 637432NL5 National Rural Utilities 04/06/2022 Callable Note Cont 12/7/2023 04/08/2022 2.95% Due 02/07/2024 1,317,000.00 63743HFC1 National Rural Utilities 03/18/2022 Note 03/22/2022 1.875% Due 02/07/2025 1,000,000.00 64952WEK5 New York Life Global 01/11/2022 Note 01/14/2022 1.45% Due 01/14/2025 3,255,000.00 649791PP9 New York St 10/29/2019 Taxable-GO 10/30/2019 2.01% Due 02/15/2024 2,000,000.00 665859AW4 Northern Trust Company Various Callable Note Cont 4/10/2027 Various 4% Due 05/10/2027 3,000,000.00 66815L2K4 Northwestern Mutual Glbl Various Note Various 4.35% Due 09/15/2027 2,200,000.00 69371RR40 Paccar Financial Corp 08/05/2021 Note 08/09/2021 0.5% Due 08/09/2024 700,000.00 69371RR57 Paccar Financial Corp 11/02/2021 Note 11/08/2021 0.9% Due 11/08/2024 2,120,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 2,013,492.21 34,832.56 0.00 7,277.39 0.00 0.00 520.94 0.00 42,630.89 (520.94) 2,012,971.27 7,798.33 7,277.39 1,318,203.63 12,302.98 0.00 3,046.56 0.00 0.00 191.06 0.00 15,540.60 (191.06) 1,318,012.57 3,237.62 3,046.56 985,761.54 5,937.50 692.31 2,254.81 0.00 0.00 0.00 0.00 7,500.00 692.31 986,453.85 1,562.50 2,254.81 3,253,097.96 17,961.27 96.23 4,029.36 0.00 0.00 0.00 0.00 21,894.40 96.23 3,253,194.19 3,933.13 4,029.36 2,000,000.00 11,836.67 0.00 3,350.00 0.00 0.00 0.00 0.00 15,186.67 0.00 2,000,000.00 3,350.00 3,350.00 2,999,070.87 7,000.00 34.23 10,019.36 0.00 0.00 14.87 0.00 17,000.00 19.36 2,999,090.23 10,000.00 10,019.36 2,174,675.91 20,203.33 484.83 8,459.83 0.00 0.00 0.00 0.00 28,178.33 484.83 2,175,160.74 7,975.00 8,459.83 699,823.38 1,088.89 12.18 303.84 0.00 0.00 0.00 0.00 1,380.55 12.18 699,835.56 291.66 303.84 2,119,938.95 1,219.00 3.49 1,593.49 0.00 0.00 0.00 0.00 2,809.00 3.49 2,119,942.44 1,590.00 1,593.49 56 96 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 74153WCQ0 Pricoa Global Funding 12/01/2021 Note 12/08/2021 1.15% Due 12/06/2024 1,655,000.00 78015K7C2 Royal Bank of Canada 05/19/2021 Note 05/21/2021 2.25% Due 11/01/2024 2,500,000.00 79466LAG9 Salesforce.com Inc 06/29/2021 Callable Note Cont 7/15/2022 07/12/2021 0.625% Due 07/15/2024 470,000.00 808513BN4 Charles Schwab Corp Various Callable Note Cont 2/18/2024 Various 0.75% Due 03/18/2024 2,230,000.00 857477BR3 State Street Bank 02/02/2022 Callable Note Cont 2/6/2025 02/07/2022 1.746% Due 02/06/2026 900,000.00 87612EBL9 Target Corp 03/15/2022 Callable Note Cont 4/15/25 03/17/2022 2.25% Due 04/15/2025 3,000,000.00 89114QCA4 Toronto Dominion Bank 04/23/2021 Note 04/27/2021 2.65% Due 06/12/2024 2,000,000.00 89115A2H4 Toronto-Dominion Bank 09/08/2022 Note 09/15/2022 4.693% Due 09/15/2027 1,060,000.00 89236TFS9 Toyota Motor Credit Corp 06/14/2019 Note 06/18/2019 3.35% Due 01/08/2024 1,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 1,654,136.77 9,251.91 46.74 1,632.78 0.00 9,516.25 0.00 0.00 1,321.70 46.74 1,654,183.51 1,586.04 1,632.78 2,552,816.49 4,687.50 0.00 1,634.52 0.00 0.00 3,052.98 0.00 9,375.00 (3,052.98) 2,549,763.51 4,687.50 1,634.52 469,910.58 1,109.72 6.54 251.33 0.00 0.00 0.00 0.00 1,354.51 6.54 469,917.12 244.79 251.33 2,230,665.64 3,391.46 16.83 1,315.66 0.00 0.00 94.92 0.00 4,785.21 (78.09) 2,230,587.55 1,393.75 1,315.66 900,000.00 5,019.75 0.00 1,309.50 0.00 0.00 0.00 0.00 6,329.25 0.00 900,000.00 1,309.50 1,309.50 2,985,170.88 8,625.00 650.40 6,275.40 0.00 0.00 0.00 0.00 14,250.00 650.40 2,985,821.28 5,625.00 6,275.40 2,041,100.26 24,880.56 0.00 1,146.08 0.00 26,500.00 3,270.58 0.00 2,797.22 (3,270.58) 2,037,829.68 4,416.66 1,146.08 1,060,000.00 10,501.89 0.00 4,145.48 0.00 0.00 0.00 0.00 14,647.37 0.00 1,060,000.00 4,145.48 4,145.48 1,005,374.35 13,306.94 0.00 2,062.12 0.00 0.00 729.55 0.00 16,098.61 (729.55) 1,004,644.80 2,791.67 2,062.12 57 97 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 89236TJH9 Toyota Motor Credit Corp 06/15/2021 Note 06/18/2021 0.5% Due 06/18/2024 890,000.00 89238EAC0 Toyota Lease Owner Trust 04/13/2021 2021-A A3 04/21/2021 0.39% Due 04/22/2024 160,846.37 89238JAC9 Toyota Auto Receivables Trust 11/09/2021 2021-D A3 11/15/2021 0.71% Due 04/15/2026 800,000.00 89239CAC3 Toyota Lease Owner Trust 07/27/2021 2021-B A3 08/02/2021 0.42% Due 10/21/2024 715,699.50 91159HHV5 US Bancorp Various Callable Note Cont 1/5/2024 Various 3.375% Due 02/05/2024 2,000,000.00 9128283F5 US Treasury 11/28/2022 Note 11/29/2022 2.25% Due 11/15/2027 5,000,000.00 9128285C0 US Treasury 05/05/2022 Note 05/06/2022 3% Due 09/30/2025 5,000,000.00 912828K74 US Treasury 04/05/2022 Note 04/06/2022 2% Due 08/15/2025 2,300,000.00 912828YE4 US Treasury 02/24/2021 Note 02/25/2021 1.25% Due 08/31/2024 4,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 889,629.89 2,014.86 28.99 399.82 0.00 2,225.00 0.00 0.00 160.69 28.99 889,658.88 370.83 399.82 305,563.97 36.41 2.77 84.84 0.00 99.31 0.00 144,722.09 19.17 2.77 160,844.65 82.07 84.84 799,991.04 252.44 0.43 473.76 0.00 473.33 0.00 0.00 252.44 0.43 799,991.47 473.33 473.76 849,955.49 109.08 0.79 281.05 0.00 297.49 0.00 134,258.96 91.85 0.79 715,697.32 280.26 281.05 2,008,332.94 21,750.00 0.00 4,478.27 0.00 0.00 1,146.73 0.00 27,375.00 (1,146.73) 2,007,186.21 5,625.00 4,478.27 4,662,026.60 5,197.01 6,228.01 15,399.21 0.00 0.00 0.00 0.00 14,368.21 6,228.01 4,668,254.61 9,171.20 15,399.21 5,001,338.75 25,409.84 0.00 12,247.94 0.00 0.00 47.14 0.00 37,704.92 (47.14) 5,001,291.61 12,295.08 12,247.94 2,262,701.15 13,469.61 1,388.30 5,200.46 0.00 0.00 0.00 0.00 17,281.77 1,388.30 2,264,089.45 3,812.16 5,200.46 4,045,637.67 12,635.87 0.00 1,080.18 0.00 0.00 2,995.91 0.00 16,711.96 (2,995.91) 4,042,641.76 4,076.09 1,080.18 58 98 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 912828YM6 US Treasury 08/05/2021 Note 08/06/2021 1.5% Due 10/31/2024 4,500,000.00 912828Z52 US Treasury 02/16/2021 Note 02/17/2021 1.375% Due 01/31/2025 3,000,000.00 912828ZC7 US Treasury 01/26/2022 Note 01/27/2022 1.125% Due 02/28/2025 2,700,000.00 912828ZF0 US Treasury 03/17/2021 Note 03/18/2021 0.5% Due 03/31/2025 2,900,000.00 912828ZL7 US Treasury Various Note Various 0.375% Due 04/30/2025 5,000,000.00 912828ZT0 US Treasury 10/05/2021 Note 10/06/2021 0.25% Due 05/31/2025 5,000,000.00 91282CBA8 US Treasury 01/08/2021 Note 01/11/2021 0.125% Due 12/15/2023 2,300,000.00 91282CBE0 US Treasury 01/12/2021 Note 01/15/2021 0.125% Due 01/15/2024 4,000,000.00 91282CBV2 US Treasury 04/23/2021 Note 04/26/2021 0.375% Due 04/15/2024 5,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 4,568,329.53 5,869.57 0.00 1,545.40 0.00 0.00 3,957.31 0.00 11,372.28 (3,957.31) 4,564,372.22 5,502.71 1,545.40 3,049,702.43 13,787.98 0.00 974.13 0.00 0.00 2,444.38 0.00 17,206.49 (2,444.38) 3,047,258.05 3,418.51 974.13 2,686,458.67 7,676.29 636.74 3,112.96 0.00 0.00 0.00 0.00 10,152.51 636.74 2,687,095.41 2,476.22 3,112.96 2,892,801.95 2,456.28 322.79 1,511.32 0.00 0.00 0.00 0.00 3,644.81 322.79 2,893,124.74 1,188.53 1,511.32 4,987,808.26 1,630.43 523.25 2,051.79 0.00 0.00 0.00 0.00 3,158.97 523.25 4,988,331.51 1,528.54 2,051.79 4,955,825.38 34.15 1,815.40 2,839.99 0.00 0.00 0.00 0.00 1,058.74 1,815.40 4,957,640.78 1,024.59 2,839.99 2,298,790.22 1,326.92 184.23 420.49 0.00 1,437.50 0.00 0.00 125.68 184.23 2,298,974.45 236.26 420.49 3,997,039.38 1,892.27 389.56 803.92 0.00 0.00 0.00 0.00 2,306.63 389.56 3,997,428.94 414.36 803.92 5,002,469.22 2,407.79 0.00 1,304.66 0.00 0.00 232.22 0.00 3,944.67 (232.22) 5,002,237.00 1,536.88 1,304.66 59 99 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units 91282CCC3 US Treasury 05/26/2021 Note 05/27/2021 0.25% Due 05/15/2024 3,000,000.00 91282CCL3 US Treasury 07/13/2021 Note 07/15/2021 0.375% Due 07/15/2024 3,500,000.00 91282CCX7 US Treasury 09/08/2021 Note 09/15/2021 0.375% Due 09/15/2024 5,000,000.00 91282CDB4 US Treasury 12/29/2021 Note 12/30/2021 0.625% Due 10/15/2024 1,800,000.00 91282CDH1 US Treasury 11/17/2021 Note 11/18/2021 0.75% Due 11/15/2024 5,000,000.00 91282CEF4 US Treasury 06/06/2022 Note 06/07/2022 2.5% Due 03/31/2027 5,000,000.00 91282CEN7 US Treasury 06/02/2022 Note 06/03/2022 2.75% Due 04/30/2027 5,000,000.00 91282CET4 US Treasury 07/08/2022 Note 07/11/2022 2.625% Due 05/31/2027 3,000,000.00 91282CEW7 US Treasury 08/17/2022 Note 08/18/2022 3.25% Due 06/30/2027 5,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 2,998,490.83 346.47 129.73 741.14 0.00 0.00 0.00 0.00 957.88 129.73 2,998,620.56 611.41 741.14 3,496,522.16 4,967.20 254.47 1,342.17 0.00 0.00 0.00 0.00 6,054.90 254.47 3,496,776.63 1,087.70 1,342.17 4,995,794.37 3,974.18 267.31 1,795.85 0.00 0.00 0.00 0.00 5,502.72 267.31 4,996,061.68 1,528.54 1,795.85 1,792,352.34 1,444.67 457.04 1,379.17 0.00 0.00 0.00 0.00 2,366.80 457.04 1,792,809.38 922.13 1,379.17 4,992,761.47 1,732.34 407.42 3,464.48 0.00 0.00 0.00 0.00 4,789.40 407.42 4,993,168.89 3,057.06 3,464.48 4,907,054.14 21,174.86 1,993.12 12,239.03 0.00 0.00 0.00 0.00 31,420.77 1,993.12 4,909,047.26 10,245.91 12,239.03 4,968,071.53 11,956.52 670.30 11,879.54 0.00 0.00 0.00 0.00 23,165.76 670.30 4,968,741.83 11,209.24 11,879.54 2,945,365.03 215.16 1,122.63 7,577.55 0.00 0.00 0.00 0.00 6,670.08 1,122.63 2,946,487.66 6,454.92 7,577.55 5,038,321.70 68,232.04 0.00 12,687.96 0.00 81,250.00 771.58 0.00 441.58 (771.58) 5,037,550.12 13,459.54 12,687.96 60 100 Income Earned As of June 30, 2023 City of Newport Beach Account #10 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 91282CFH9 US Treasury 09/08/2022 4,949,117.71 39,487.09 983.55 13,721.32 Note 09/09/2022 0.00 0.00 0.00 3.125% Due 08/31/2027 5,000,000.00 0.00 52,224.86 983.55 4,950,101.26 12,737.77 13,721.32 91282CGC9 US Treasury 01/26/2023 3,286,975.33 52,879.83 0.00 9,768.50 Note 01/27/2023 0.00 62,968.75 662.64 3.875% Due 12/31/2027 3,250,000.00 0.00 342.22 (662.64) 3,286,312.69 10,431.14 9,768.50 91324PEB4 United Health Group Inc 11/08/2021 1,132,520.50 277.44 213.14 733.35 Callable Note Cont 5/15/2022 11/10/2021 0.00 0.00 0.00 0.55% Due 05/15/2024 1,135,000.00 0.00 797.65 213.14 1,132,733.64 520.21 733.35 931142EK5 Wal-Mart Stores 04/29/2019 2,000,000.00 29,277.78 0.00 4,722.22 Callable Note Cont 5/26/2023 04/30/2019 0.00 34,000.00 0.00 Due 06/26/2023 0.00 2,000,000.00 0.00 0.00 0.00 4,722.22 4,722.22 931142EX7 Wal-Mart Stores 09/08/2022 1,001,639.29 8,997.22 0.00 3,259.52 Callable Note Cont 09/09/2027 09/12/2022 0.00 0.00 32.15 3.95% Due 09/09/2027 1,000,000.00 0.00 12,288.89 (32.15) 1,001,607.14 3,291.67 3,259.52 255,182,769.12 996,220.38 30,332.13 0.00 478,146.94 49,598.95 5,296,375.10 891,734.49 (19,266.82) Total Fixed Income 250,221,209.61 249,867,127.20 373,661.05 354,394.23 354,394.23 CASH & EQUIVALENT 60934N104 Federated Investors Various 744,305.49 0.00 0.00 11,870.34 Government Obligations Fund Various 5,781,676.51 7,154.47 0.00 622,235.83 5,903,746.17 4,715.87 0.00 622,235.83 11,870.34 11,870.34 912796CQ0 US Treasury 03/20/2023 2,931,633.75 27,810.00 0.00 11,587.50 Bill 03/21/2023 0.00 0.00 0.00 4.635% Due 09/14/2023 3,000,000.00 0.00 39,397.50 0.00 2,931,633.75 11,587.50 11,587.50 61 101 Income Earned As of June 30, 2023 City of Newport Beach Account #10 Trade Date CUSIP Security Description Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 912797FB8 US Treasury 04/24/2023 1,952,578.75 9,912.92 0.00 8,037.50 Bill 04/25/2023 0.00 0.00 0.00 4.822% Due 10/19/2023 2,000,000.00 0.00 17,950.42 0.00 1,952,578.75 8,037.50 8,037.50 912797FC6 US Treasury 05/23/2023 6,207,830.56 7,337.78 0.00 27,516.66 Bill 05/24/2023 0.00 0.00 0.00 5.2% Due 10/26/2023 6,350,000.00 0.00 34,854.44 0.00 6,207,830.56 27,516.66 27,516.66 912797GU5 US Treasury 06/12/2023 0.00 0.00 0.00 7,740.00 Bill 06/13/2023 2,954,850.00 0.00 0.00 5.16% Due 09/26/2023 3,000,000.00 0.00 7,740.00 0.00 2,954,850.00 7,740.00 7,740.00 912797HC4 US Treasury 06/27/2023 0.00 0.00 0.00 1,299.25 Bill 06/28/2023 2,948,896.17 0.00 0.00 5.197% Due 10/24/2023 3,000,000.00 0.00 1,299.25 0.00 2,948,896.17 1,299.25 1,299.25 96130ASC3 Westpac Banking Corp NY 02/22/2023 3,798,311.09 59,628.33 194.87 17,231.54 Yankee CD 02/22/2023 0.00 0.00 0.00 5.38% Due 02/16/2024 3,800,000.00 0.00 76,665.00 194.87 3,798,505.96 17,036.67 17,231.54 15,634,659.64 104,689.03 194.87 11,685,422.68 7,154.47 0.00 5,903,746.17 182,622.48 194.87 Total Cash & Equivalent 21,772,235.83 21,416,531.02 85,087.92 85,282.79 85,282.79 270,817,428.76 1,100,909.41 30,527.00 11,685,422.68 485,301.41 49,598.95 11,200,121.27 1,074,356.97 (19,071.95) TOTAL PORTFOLIO 271,993,445.44 271,283,658.22 458,748.97 439,677.02 439,677.02 62 102 Income Earned As of June 30, 2023 City of Newport Beach- Short Term Account #12 CUSIP FIXED INCOME Security Description Trade Date Settle Date Units 3133834G3 FHLB Various Note Various Due 06/09/2023 0.00 313383YJ4 FHLB 04/05/2019 Note 04/08/2019 3.375% Due 09/08/2023 1,600,000.00 3133EKSN7 FFCB 06/21/2019 Note 06/26/2019 Due 06/26/2023 0.00 3133EKZK5 FFCB 08/09/2019 Note 08/14/2019 1.6% Due 08/14/2023 2,000,000.00 3133EL3V4 FFCB 08/12/2020 Note 08/18/2020 0.2% Due 08/14/2023 4,000,000.00 3135G05G4 FNMA 09/28/2020 Note 09/30/2020 0.25% Due 07/10/2023 4,000,000.00 3137EAEV7 FHLMC 09/23/2020 Note 09/24/2020 0.25% Due 08/24/2023 4,000,000.00 Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Total Income Net Accret/Amort Income Earned 3,899,996.20 39,595.84 57.21 1,845.46 0.00 41,437.50 53.41 3,900,000.00 0.00 3.80 0.00 1,841.66 1,845.46 1,604,103.29 12,450.00 0.00 3,256.58 0.00 0.00 1,243.42 0.00 16,950.00 (1,243.42) 1,602,859.87 4,500.00 3,256.58 3,999,681.72 30,483.33 318.28 5,234.95 0.00 35,400.00 0.00 4,000,000.00 0.00 318.28 0.00 4,916.67 5,234.95 1,999,869.32 9,511.11 52.98 2,719.65 0.00 0.00 0.00 0.00 12,177.78 52.98 1,999,922.30 2,666.67 2,719.65 3,999,435.67 2,377.78 228.78 895.44 0.00 0.00 0.00 0.00 3,044.44 228.78 3,999,664.45 666.66 895.44 4,000,073.92 3,916.67 0.00 776.47 0.00 0.00 56.86 0.00 4,750.00 (56.86) 4,000,017.06 833.33 776.47 4,000,075.79 2,694.44 0.00 806.27 0.00 0.00 27.07 0.00 3,527.78 (27.07) 4,000,048.72 833.34 806.27 23,503,235.91 101,029.17 657.25 0.00 76,837.50 1,380.76 7,900,000.00 40,450.00 (723.51) 15,602,512.40 16,258.33 15,534.82 15,534.82Total Fixed Income 15,600,000.00 63 103 Income Earned As of June 30, 2023 City of Newport Beach- Short Term Account #12 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income CASH & EQUIVALENT 38141W323 Goldman Sachs Financial Square Various 19,470,481.57 0.00 0.00 186,122.20 Treasury Obligation Fund Various 31,194,440.61 67,603.11 0.00 14,216,503.04 36,448,419.14 118,519.09 0.00 14,216,503.04 186,122.20 186,122.20 912796YH6 US Treasury 06/27/2023 0.00 0.00 0.00 4,270.83 Bill 06/28/2023 9,898,923.61 0.00 0.00 5.125% Due 09/07/2023 10,000,000.00 0.00 4,270.83 0.00 9,898,923.61 4,270.83 4,270.83 912797FN2 US Treasury 04/21/2023 22,998,271.04 115,314.01 0.00 36,414.95 Bill 04/24/2023 0.00 151,728.96 0.00 Due 06/13/2023 0.00 22,998,271.04 0.00 0.00 0.00 36,414.95 36,414.95 912797GF8 US Treasury 06/27/2023 0.00 0.00 0.00 4,222.92 Bill 06/28/2023 9,942,286.81 0.00 0.00 5.067% Due 08/08/2023 10,000,000.00 0.00 4,222.92 0.00 9,942,286.81 4,222.92 4,222.92 912797GV3 US Treasury 06/27/2023 0.00 0.00 0.00 2,869.83 Bill 06/28/2023 6,607,208.72 0.00 0.00 5.14% Due 10/03/2023 6,700,000.00 0.00 2,869.83 0.00 6,607,208.72 2,869.83 2,869.83 42,468,752.61 115,314.01 0.00 57,642,859.75 219,332.07 0.00 59,446,690.18 129,882.67 0.00 Total Cash & Equivalent 40,916,503.04 40,664,922.18 233,900.73 233,900.73 233,900.73 65,971,988.52 216,343.18 657.25 57,642,859.75 296,169.57 1,380.76 67,346,690.18 170,332.67 (723.51) TOTAL PORTFOLIO 56,516,503.04 56,267,434.58 250,159.06 249,435.55 249,435.55 64 104 Income Earned As of June 30, 2023 City Of Newport Beach Reporting Account #11044 CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income CASH & EQUIVALENT 90CASH$00 Cash Various 24,242,935.19 0.00 0.00 0.00 Custodial Cash Account Various 1,602,396.18 0.00 0.00 25,845,331.37 0.00 0.00 0.00 25,845,331.37 0.00 0.00 24,242,935.19 0.00 0.00 1,602,396.18 0.00 0.00 0.00 0.00 0.00 Total Cash & Equivalent 25,845,331.37 25,845,331.37 0.00 0.00 0.00 LOCAL AGENCY INVESTMENT FUND 90LAIF$00 Local Agency Investment Fund 12/31/2022 43,283,564.92 212,030.18 0.00 37,164.73 State Pool 12/31/2022 0.00 0.00 0.00 20,695,622.00 22,587,942.92 249,194.91 0.00 20,695,622.00 37,164.73 37,164.73 43,283,564.92 212,030.18 0.00 0.00 0.00 0.00 22,587,942.92 249,194.91 0.00 Total Local Agency Investment Fund 20,695,622.00 20,695,622.00 37,164.73 37,164.73 37,164.73 67,526,500.11 212,030.18 0.00 1,602,396.18 0.00 0.00 22,587,942.92 249,194.91 0.00 TOTAL PORTFOLIO 46,540,953.37 46,540,953.37 37,164.73 37,164.73 37,164.73 65 105 Important Disclosures 2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC ("ICE"), used with permission. 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This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account. As of June 30, 2023 66 106 Benchmark Disclosures ICE BofA 1-5 Yr US Treasury & Agency Index* The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $1 billion. Qualifying securities must have at least 18 months to final maturity at the time of issuance. As of June 30, 2023 67 107 CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT Agenda Item No. 5C September 14, 2023 TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE FROM: Finance Department Jason Al-Imam, Finance Director/Treasurer 949-644-3123, jalimam@newportbeachca.gov SUBJECT: INTERNAL AUDIT PROGRAM UPDATE SUMMARY: The Finance Department established an Internal Audit Program in 2020 to help management maintain a comprehensive framework of internal controls. Internal audits are performed each year in connection with a recent internal control risk assessment. This report provides an update on internal audit activities to date. RECOMMENDED ACTION: Receive and file. DISCUSSION: The current program was initiated in 2020 with an enterprise risk assessment and initial evaluation of internal control risks, which was presented to the Finance Committee on September 24, 2020. These processes served as the primary building blocks to inform and develop workplans to further assess and test internal controls, conduct performance audits, and provide management consulting services when appropriate. From this preliminary fieldwork, an inventory of future focus areas based on potential risk was developed. Audit firms MGO and Moss Adams have recently completed work in areas 1-8 listed in the table below. Item 9 was cancelled after the Finance Committee discussed it at the January 13, 2023 meeting. Staff continue to complete tasks that resolve the findings from MGO’s and Moss Adams’ reports. In FY 2023-24 staff are preparing request for proposals for the remaining items on the list. 108 Internal Audit Program Update September 14, 2023 Page 2 Internal Control Areas of Focus Key Control Progress Task Resource 1 Purchasing and Contract Management Complete MGO 2 Cash, Billing, Collections, and Accounts Receivable – Daily Reconciliation and Reporting Complete Moss Adams 3 Information Technology – System Security, Help Desk, Workflow, System Support and Monitoring Complete Moss Adams 4 Fiscal Policy Inventory and Implementation Plan Complete Moss Adams 5 Inventory Management – Central Warehouse and Automotive Inventory Management Complete Moss Adams 6 Accounts Payable and Disbursement Complete Moss Adams 7 Payroll – Employee Timecard Processing Complete Moss Adams 8 Fixed Asset Management – Physical Inventory Process and Asset Record Maintenance Complete Moss Adams 9 Police Property and Evidence Internal Controls Testing – Review how operation handles all evidence, found property or property held for safekeeping to ensure integrity for criminal prosecutions Cancelled Tap international 10 Financial Reporting – System Access, Segregation of duties, account reconciliation and financial reporting documentation 11 Budgeting – Budget to actual reporting, budget amendment process, budget process 12 Business Continuity and Disaster Planning Assessment 13 Finance Customer Service Operational Review Current Progress Of the workplan items identified in the table above, items 6, 7, and 8 were recently evaluated further by Moss Adams. The final summary reports of these items are attached to this staff report. Management’s responses to the internal audit reports and related findings are also attached. An overview of each internal audit report is provided below. Accounts Payable and Disbursements 109 Internal Audit Program Update September 14, 2023 Page 3 City Staff retained Moss Adams to complete a review and assessment of Accounts Payable and Disbursements with objectives including assessing controls, and compliance with policies and procedures and best practices; review system access and assess whether that access is regularly monitored; assess whether vendor payment activity is regularly monitored, and the review is assessed and documented; test samples of disbursements for compliance with policies and for adequate internal controls and segregation of duties. As part of this assessment, Moss Adams conducted interviews, reviewed documentation, completed internal control sample testing, analyzed the results, and prepared a final report summarizing the analysis and recommendations. As outlined in the final summary report, the assessment resulted in recommendations for improvement as follows: • Continue work toward implementation of comprehensive fiscal policies, focusing on the best practices. Policies and procedures should specifically address periodic monitoring for the function. • Define appropriate monitoring activities for accounts payable and document these policies as part of their work on composing comprehensive fiscal policies. • Conduct routine monitoring of vendor changes to ensure accurate information and that vendors’ businesses are in good standing where necessary. Though Moss Adams identified opportunities for improvement, they also noted a few items of commendable operations, such as workflows were consistent and internal controls were applied; segregation of duties were adequate; staff engaged with Moss Adams were accountable and very responsive. Fixed Assets City Staff retained Moss Adams to complete a review and assessment of Fixed Assets with objectives including reviewing asset management processes for controls and compliance with policies and procedures and best practices; test the completeness and accuracy of asset listings; test samples of additions, disposals, and transfers; assess the asset lifecycle recorded in the system from acquisition through disposal; test processes for recording physical fixed assets, and assess internal controls for acquisition, classification, tracking, maintenance. As part of this assessment, Moss Adams conducted interviews, reviewed policies, procedures, and forms. As outlined in the final summary report, the assessment resulted in recommendations for improvement as follows: • Develop comprehensive fixed asset policies and procedures and hold employees accountable for compliance. Policies and procedures should address all key areas of the fixed asset management function, and roles and responsibilities should be well-defined to allow for compliance to be monitored. 110 Internal Audit Program Update September 14, 2023 Page 4 • Develop comprehensive policies and procedures that address asset receiving and tagging, require departments to maintain accurate asset listings and utilize the Asset Addition Form, and implement controls to ensure asset additions are reported timely. • Implement improved controls over the physical asset inventory process. Ensure that the inventory is performed accurately and effectively, that the results are utilized to update the City-wide Fixed Asset Listing, and that variances are investigated and resolved. A spot check/audit process should be implemented. • Require the use of an asset transaction form to consistently capture relevant information for asset disposals and transfers and assign accountability to ensure asset transactions are accurately and reported timely. • Update the City Vehicle/Equipment Replacement Guidelines to include standardization across all departments that maintain assets. Policies and procedures should be in alignment with best practices, and departments should be held accountable. Though Moss Adams identified opportunities for improvement, they also noted an eagerness from staff to implement improvements. Payroll City Staff retained Moss Adams to complete a review and assessment of Payroll with objectives including assessing controls and compliance with policies and procedures, reviewing system access to key functions of human resources and payroll modules and assessing if access is regularly monitored; testing samples of payroll disbursements related to timekeeping entry and approval, time importing, pre- and post-payroll processing reviews, change and variance handling, disbursement, and general ledger posting; test sample of pay rate changes to assess if adequate controls are in place. As part of this assessment, Moss Adams conducted interviews, reviewed documentation, tested internal controls and assessed processes from time entry through payroll posting in the general ledger. As outlined in the final summary report, the assessment resulted in recommendations for improvement as follows: • Develop comprehensive policies and procedures over payroll and timekeeping that address the minimum control standards that must be followed City-wide. Develop Police Department specific policies and procedures that address specific requirements related to the use of an outside timekeeping system. • Employees should submit timecards after working their scheduled shifts/time for the week, and supervisors should review and approve each timecard to ensure the submission reflects actual shifts/hours worked. • The Police Department should implement a process to ensure that timecard reviews and approvals are documented and that all supporting documentation for time worked is maintained consistently. Develop a formal process for approving 111 Internal Audit Program Update September 14, 2023 Page 5 employee system access rights and review them regularly to determine that employee system access is necessary for their roles and responsibilities. • Employee time exceptions and adjustments should be reviewed and approved by supervisors each pay period and system time adjustments at the City-wide level should be evaluated periodically to reduce the risk that inappropriate changes will be processed and not identified. • Strengthen controls to monitor the use over overtime timecodes to prevent and detect errors, fraud, and abuse. Overtime should be approved in advance when feasible and, when not feasible, as soon as possible after the work has been performed. • Changes in certification pays should be documented with an approved personnel action form. After the personnel action forms have been approved, employees that received wage rate changes should be reviewed in the following pay period to ensure adjustments are correctly recorded to reduce the risk of errors from manual inputs. Additionally, documentation for retired personnel should be retained for, at minimum, three years following their retirement to ensure that documentation is readily available. Though Moss Adams identified opportunities for improvement, they also noted a few items of commendable operations, such as current policies and procedures provide a good baseline for implementing updates; documentation available is in-line with best practices, staff understand the importance of payroll internal controls and are open to improvements. Prepared and Submitted by: /s/ Michael Gomez _____________________________ Michael Gomez Deputy Finance Director ATTACHMENTS: Attachment A – Internal Audit Report on Accounts Payable and Disbursements Attachment B – Management Responses to Accounts Payable Internal Audit Findings Attachment C – Internal Audit Report on Fixed Assets Attachment D – Management Responses to Fixed Assets Internal Audit Findings Attachment E – Internal Audit Report on Payroll Attachment F – Management Responses to Payroll Internal Audit Findings 112 ATTACHMENT A INTERNAL AUDIT REPORT ON ACCOUNTS PAYABLE AND DISBURSEMENTS 113 FINAL REPORT City of Newport Beach ACCOUNTS PAYABLE AND DISBURSEMENTS INTERNAL AUDIT May 18, 2023 Moss Adams LLP 999 Third Avenue, Suite 2800 Seattle, WA 98104 (206) 302-6500 114 Accounts Payable and Disbursements Internal Audit Report | 1 FOR INTERNAL USE OF CITY OF NEWPORT BEACH ONLY EXECUTIVE SUMMARY Moss Adams LLP (Moss Adams) was contracted by the City of Newport Beach (the City) to conduct an internal audit of the City’s accounts payable and disbursement function. The objectives of the internal audit included testing payments for proper approval, assessing the City’s payment and vendor monitoring, and evaluating controls for employee segregation of duties related to invoice approval and payment. The City utilizes the Tyler MUNIS Enterprise Resource Planning (ERP) system for managing business operations including the City’s accounts payable and vendor management functions. This internal audit took place between November 2022 and February 2023. This engagement was performed in accordance with Standards for Consulting Services established by the American Institute of Certified Public Accountants. Accordingly, we provide no opinion, attestation, or other form of assurance with respect to our work or the information upon which our work is based. This engagement was also performed consistent with guidance issued by the Institute of Internal Auditors (IIA) International Professional Practices Framework (IPPF). This report was developed based on information gained from our interviews and analysis of sample documentation. The procedures we performed do not constitute an examination in accordance with generally accepted auditing standards or attestation standards. 115 Accounts Payable and Disbursements Internal Audit Report | 2 FOR INTERNAL USE OF CITY OF NEWPORT BEACH ONLY Based on our testing, we have identified three findings: FINDINGS AND RECOMMENDATIONS 1. Finding The City has not developed comprehensive P&Ps related to accounts payable as recommended in the 2021 Fiscal Policy Inventory and Gap Analysis. While consistent processes appear to be established for the accounts payable function, there were instances of gaps in internal controls, related to periodic monitoring, identified. Recommendation The City should continue its work toward implementation of comprehensive fiscal policies, focusing on the best practices for accounts payable recommended in the 2021 Fiscal Policy Inventory and Gap Analysis. P&Ps should specifically address periodic monitoring for the function. 2. Finding The City conducts weekly check batch reviews and outstanding check reviews; however, other periodic monitoring of anomalous purchases, through reviews of aging or exceptions reports, are not performed. Recommendation The Finance Department should define appropriate monitoring activities for accounts payable and document these policies as part of their work on composing comprehensive fiscal policies. 3. Finding The Finance Department staff conduct a well-controlled vendor enrollment process. However, the City is not consistently performing and documenting additional monitoring of established vendors for suspension or debarment by the federal government and/or the State of California, which could pose legal or compliance risks. Recommendation The Finance Department staff should conduct routine monitoring of vendor changes to ensure accurate information and that vendors’ businesses are in good standing where necessary. The Finance Department may also want to consult with the City Attorney’s Office for further guidance on reducing legal risks. Although the focus of this assessment was to identify opportunities for improvement, it is important to note the areas of commendable operations. The City should be commended for the following accomplishments:  Controls were consistently applied: Although policies and procedures (P&Ps) had not been developed for accounts payable activities, based on interviews with City staff and the results of sample testing, it appeared that workflows were consistent and internal controls were applied in practice.  Segregation of duties: Our testing of a MUNIS system access report for roles related to accounts payable activities showed that duties were adequately segregated and that employees with invoice entry or payment duties did not also have access to approve payments in the system. This system automation reduces the risk of improper payments or intentional fraud.  Staff Accountability: Finance Department staff that we encountered were accountable and were very responsive when dealing with our requests. 116 117 ATTACHMENT B MANAGEMENT RESPONSES TO ACCOUNTS PAYABLE INTERNAL AUDIT FINDINGS 118 Accounts Payable Internal Audit Findings and Management Responses Finding No. 1 – The City has not developed comprehensive P&Ps related to accounts payable as recommended in the 2021 Fiscal Policy Inventory and Gap Analysis. While consistent processes appear to be established for the accounts payable function, there were instances of gaps in internal controls, related to receiving and periodic monitoring, identified. Recommendation: The City should continue its work toward implementation of comprehensive fiscal policies, focusing on the best practices for accounts payable recommended in the 2021 Fiscal Policy Inventory and Gap Analysis. P&Ps should specifically address proper receiving procedures and periodic monitoring for the function. City Response: The City agrees that the City should develop comprehensive Policies and Procedures related to accounts payable in order to document in writing policies and procedures that have been established as a matter of practice. Finding No. 2 – The City conducts weekly check batch reviews and outstanding check reviews; however, other periodic monitoring of anomalous purchases, through reviews of aging or exceptions reports, are not performed. Recommendation: The Finance Department should define appropriate monitoring activities for accounts payable and document these policies as part of their work on composing comprehensive fiscal policies. City Response: The City agrees that the City should develop comprehensive Policies and Procedures related to other periodic monitoring of anomalous purchases. Finding No. 3 – Finance Department staff conduct a well-controlled vendor enrollment process. However, the City is not consistently performing and documenting additional monitoring of established vendors for suspension or debarment by the federal government and/or the State of California, which could pose legal or compliance risks. Recommendation: Finance Department staff should conduct routine monitoring of vendor changes to ensure accurate information and that vendors’ businesses are in good standing where necessary. The Finance Department may also want to consult with the City Attorney’s Office for further guidance on reducing legal risks. City Response: The City has systems in place surrounding suspension and debarment, including monitoring of established vendors. For example, when the City enters into a contract, agreement, contract extension/amendment, etc., documentation is obtained to ensure that the vendor is not suspended or debarred. Additionally, controls are in place within each department to ensure that all disbursements that involve federal and/or state funded activities are not made to vendors that have been suspended or debarred. Furthermore, it is important to note that Moss Adams selected 30 vendors to test for suspension or debarment and no vendors were found to have been suspended or debarred by the federal government nor the State of California. Therefore, the City believes that the controls that have been implemented appropriately safeguard city resources. 119 ATTACHMENT C INTERNAL AUDIT REPORT ON FIXED ASSETS 120 FINAL REPORT City of Newport Beach FIXED ASSETS INTERNAL AUDIT August 21, 2023 Moss Adams LLP 999 Third Avenue, Suite 2800 Seattle, WA 98104 (206) 302-6500 121 Fixed Assets Internal Audit Report | 1 FOR INTERNAL USE OF CITY OF NEWPORT BEACH ONLY EXECUTIVE SUMMARY Moss Adams LLP (Moss Adams) was contracted by the City of Newport Beach (the City) to conduct an internal audit of the City’s fixed asset function, including reviewing the overall asset management processes for adequate controls and compliance with policies and procedures and best practices as well as assessing the overall adequacy of the asset management function. We performed a variety of procedures to test internal controls and assess the overall asset management processes, testing the completeness and accuracy of asset listings, and assessing the asset lifecycle recorded in the system from acquisition through disposal, including the tracking, safeguarding, inventorying, and depreciating of assets on hand in comparison with best practices. This engagement was performed in accordance with Standards for Consulting Services established by the American Institute of Certified Public Accountants. Accordingly, we provide no opinion, attestation, or other form of assurance with respect to our work or the information upon which our work is based. This report was developed based on information gained from our interviews and analysis of sample documentation. The procedures we performed do not constitute an examination in accordance with generally accepted auditing standards or attestation standards. Based on our testing, we have identified five findings: FINDINGS AND RECOMMENDATIONS 1. Finding The City does not have comprehensive fixed asset policies and procedures, resulting which could result in a lack of clear guidance defining roles and responsibilities and a lack of accountability within the asset management functions. Recommendation Develop comprehensive fixed asset policies and procedures and hold employees accountable for compliance. Policies and procedures should address all key areas of the fixed asset management function, and roles and responsibilities should be well-defined to allow for compliance to be monitored. 2. Finding Asset additions are not handled consistently across City departments resulting in missing Asset Addition Forms, incomplete department asset listings, the potential for untagged assets, and additions not being reported timely Recommendation Develop comprehensive policies and procedures that address asset receiving and tagging, require departments to maintain accurate asset listings and utilize the Asset Addition Form, and implement controls to ensure asset additions are reported timely. 122 Fixed Assets Internal Audit Report | 2 FOR INTERNAL USE OF CITY OF NEWPORT BEACH ONLY FINDINGS AND RECOMMENDATIONS 3. Finding A complete and well-controlled annual physical inventory was not performed in 2022 and a spot check/audit process is not established, which can result in inaccurate financial reporting, a lack of accountability, and asset additions, disposals, and transfers not being identified timely. Recommendation The City should implement improved controls over the physical asset inventory process ensure that the inventory is performed accurately and effectively, that the results are utilized to update the City-wide Fixed Asset Listing, and that variances are investigated and resolved. To support decentralized asset management, a spot check/audit process should be implemented. 4. Finding Asset transaction forms are not consistently utilized or completed, and disposals and transfers are not reported timely, which can result in inaccurate financial reporting, lack of accountability, and increased risk of misappropriation. Recommendation Require the use of an asset transaction form to consistently capture relevant information for asset disposals and transfers and assign accountability to ensure asset transactions are accurately and timely reported. 5. Finding Eight department asset custodians were not actively monitoring and forecasting asset replacements. Documentation of the required annual inspections of assets that have reached their expected service life was unavailable. Recommendation Update the City Vehicle/Equipment Replacement Guidelines to include standardization across all departments that maintain assets. Policies and procedures should be in alignment with best practices, and departments should be held accountable for complying with the updated policies and procedures. Although the focus of this internal audit was to identify opportunities for improvement, it is important to note the areas of commendable operations. The City should be commended for the following accomplishments: • Readiness for Change: During interviews, feedback from City employees indicated an eagerness to implement improvements to the asset management function. We would like to thank City staff and management for their willingness to assist with this project. 123 124 ATTACHMENT D MANAGEMENT RESPONSES TO FIXED ASSETS INTERNAL AUDIT FINDINGS 125 Fixed Assets Internal Audit Findings and Management Responses Finding No. 1 – The City does not have comprehensive fixed asset policies and procedures, resulting which could result in a lack of clear guidance defining roles and responsibilities and a lack of accountability within the asset management functions. Recommendation: Develop comprehensive fixed asset policies and procedures and hold employees accountable for compliance. Policies and procedures should address all key areas of the fixed asset management function, and roles and responsibilities should be well-defined to allow for compliance to be monitored. City Response: The City agrees that the City should develop comprehensive Policies and Procedures related to fixed asset management, including clear definitions of roles and responsibilities, in order to document in writing policies and procedures that have been established as a matter of practice. Finding No. 2 – Asset additions are not handled consistently across City departments resulting in missing Asset Addition Forms, incomplete department asset listings, the potential for untagged assets, and additions not being reported timely. Recommendation: Develop comprehensive policies and procedures that address asset receiving and tagging, require departments to maintain accurate asset listings and utilize the Asset Addition Form, and implement controls to ensure asset additions are reported timely. City Response: The City agrees that within the development of comprehensive written Policies and Procedures, current practices and procedures regarding asset tagging and additions should be formalized and standardized across all City departments and designated department custodians should be accountable for notifying the Finance Department when an asset is received via the Asset Addition Form. Historically, to minimize risk of asset additions not being reported, it has been the practice of the Finance Department to review all purchase orders to identify any asset additions that may not have been identified by department custodians. If any items are found that should be considered an asset, the Finance Department adds the record in Munis and contacts the department custodian and provides an asset tag. When asset records are added into Munis, a specific asset number is assigned. The City believes the specific recommendation regarding tagging assets applies more to equipment type assets rather than fleet or the major asset classes of land, structures, and infrastructure. Fleet additions are assigned their own vehicle unit number. Land, structures, infrastructure, and work in progress, which are part of large CIP projects, receive a specific asset number upon entry in Munis. Land, structure, and work in progress additions are determined by the Finance Department and infrastructure additions are determined by a consultant under direction of Finance. Therefore, the use of asset tags and Asset Addition Forms may not be practical for these additions, and the specific asset numbers assigned by Munis are appropriate. Finding No. 3 – A complete and well-controlled annual physical inventory was not performed in 2022 and a spot check/audit process is not established, which can result in inaccurate financial reporting, a lack of accountability, and asset additions, disposals, and transfers not being identified timely. 126 Fixed Assets Internal Audit Findings and Management Responses Page 2 Recommendation: The City should implement improved controls over the physical asset inventory process ensure that the inventory is performed accurately and effectively, that the results are utilized to update the City-wide Fixed Asset Listing, and that variances are investigated and resolved. To support decentralized asset management, a spot check/audit process should be implemented. City Response: The City’s current asset inventory process is for the Finance Department to send an asset listing to each department requesting that the status of assets be confirmed or updated. Each Department is responsible for tracking and monitoring their assets and providing adequate safeguards and controls over their assets. The City agrees that this decentralized nature of asset management adds complexity and it would be ideal for an inventory and spot check/audit to be performed by an individual independent from the department, however that would require substantial staff time. Due to staff turnover, Department directors should be reminded annually of the importance of asset management and that providing accurate and timely updates to their asset listings is imperative in maintaining accurate and effective asset records. The Finance Department has already discussed this with the IT Division and they have begun implementing controls to better manage their asset inventory. Finding No. 4 – Asset transaction forms are not consistently utilized or completed, and disposals and transfers are not reported timely, which can result in inaccurate financial reporting, lack of accountability, and increased risk of misappropriation. Recommendation: Require the use of an asset transaction form to consistently capture relevant information for asset disposals and transfers and assign accountability to ensure asset transactions are accurately and timely reported. City Response: The City agrees that within the development of comprehensive Policies and Procedures, current practices regarding asset disposals and transfers should be formalized and standardized across all City departments and designated department custodians should be accountable for notifying the Finance Department when an asset has been disposed or transferred. The City does have a formal asset disposal and transfer form, however, they are not consistently used. To minimize risk of asset deletions not being recorded, it has been the practice of the Finance Department to search for an asset tag and review Munis asset listings to properly report the deletion of an asset within Munis. In terms of the major asset classes of land, structures, infrastructure, and work in progress, in which deletions are typically part of large CIP projects, the use of an asset disposal form may not be practical in practice for the same reasons articulated in the City’s response to finding no. 2. Finding No. 5 – Eight department asset custodians were not actively monitoring and forecasting asset replacements. Documentation of the required annual inspections of assets that have reached their expected service life was unavailable. Recommendation: Update the City Vehicle/Equipment Replacement Guidelines to include standardization across all departments that maintain assets. Policies and procedures should be in alignment with best practices, and departments should be held accountable for complying with the updated policies and procedures. City Response: The City agrees with the overall recommendation that written comprehensive Policies and Procedures should align with best practices and departments should be held accountable for complying with the updated policies and procedures. The City Vehicle/Equipment Replacement Guidelines 127 Fixed Assets Internal Audit Findings and Management Responses Page 3 referenced is Council Policy F-9 and pertains to the City’s fleet of vehicles which is actively monitored by the Fleet Division, not department asset custodians. The City has systems in place regarding fleet monitoring that are mostly aligned with best practices. For example, when a unit meets the expected useful life as determined by age, mileage, and overall condition, which is determined by routine preventative maintenance inspections, units will be recommended for replacement, or deferred another year if usage is low and overall conditions is satisfactory for the current assignment. Vehicle replacement is reviewed annually and approved by City Council during development of the City’s operating budget. Additionally, the City uses a separate internal service fund for vehicle management that charges each department’s operating budget a maintenance and replacement rate in order to set aside funding for vehicle maintenance and future vehicle purchases to limit impact on the City’s operating budget in a given year. However, the City acknowledges that it may be appropriate to formalize a standard form to further document annual vehicle inspections. Regarding nonvehicle equipment assets which represents 1% of the total gross value of fixed assets, the City’s practice has been to use equipment until failure and replace as needed within a department’s approved operating budget. If any replacement of equipment goes beyond a department’s operating budget, proper approval is required before purchasing the equipment. Department replacement schedules/forecasts can be recommended to departments, however the lack of specific schedules is not viewed as a substantial risk to the City’s operating budget. Other major asset classes of land, structures, and infrastructure, comprise more than 97% of the City’s total gross value of fixed assets and the City has specific systems and programs in place to forecast asset replacement to help avoid budgetary pressures. Examples of such programs include the Facilities Financial Planning Program used to forecast the funding of replacement of major community service facilities; the Harbor and Beaches Master Plan used to forecast the replacement of major Harbor related assets; a five- year CIP plan which forecasts the replacement of infrastructure. Each of the above programs are reviewed annually and presented to the City’s Finance Committee and City Council as part of the budget adoption process. 128 ATTACHMENT E INTERNAL AUDIT REPORT ON PAYROLL 129 FINAL REPORT City of Newport Beach PAYROLL INTERNAL AUDIT August 21, 2023 Moss Adams LLP 999 Third Avenue, Suite 2800 Seattle, WA 98104 (206)302-6500 130 Payroll Internal Audit Report | 1 FOR INTERNAL USE OF CITY OF NEWPORT BEACH ONLY EXECUTIVE SUMMARY Moss Adams LLP (Moss Adams) was contracted by the City of Newport Beach (the City) to evaluate and test internal controls related to the City’s payroll function from initial time entry through payroll posting in the general ledger. Our review also included reviewing the provided list of observations from the City’s 2021 Fiscal Policy Inventory and Gap Analysis to determine whether identified issues have been corrected or still exist. This engagement was performed in accordance with Standards for Consulting Services established by the American Institute of Certified Public Accountants. Accordingly, we provide no opinion, attestation, or other form of assurance with respect to our work or the information upon which our work is based. This report was developed based on information gained from our interviews and analysis of sample documentation. The procedures we performed do not constitute an examination in accordance with generally accepted auditing standards or attestation standards. Based on our testing, we identified five findings: FINDINGS AND RECOMMENDATIONS 1. Finding The City has not expanded the Payroll and Timekeeping P&Ps to include the recommendations identified in the 2021 Fiscal Policy Inventory and Gap Analysis and the current policy has not been signed by the City Manager. The PD, which utilizes a separate timekeeping system, does not have documented timekeeping P&Ps. Recommendation Develop comprehensive P&Ps over payroll and timekeeping that address the minimum control standards that must be followed City-wide. Develop PD- specific P&Ps that address specific requirements related to the use of an outside timekeeping system. 2. Finding In some departments, supervisors are not individually reviewing/approving employee timesheets. Additionally, in some cases, employees are submitting timecards, and supervisors are reviewing/approving them, prior to working the scheduled shifts/time, resulting in an increased risk of wages being paid for hours not actually worked. Recommendation Employees should submit timecards after working their scheduled shifts/time for the week, and supervisors should then review and approve each timecard submission to ensure the submission reflects actual shifts/hours worked. 3. Finding The Police Department elected to not provide supporting documentation of user system access rights, time entry adjustments, and documentation of supervisor reviews and approvals. Additionally, the City-wide audit log for time-entry adjustments has not been enabled and periodic reviews corresponding reports were not established I. 131 Payroll Internal Audit Report | 2 FOR INTERNAL USE OF CITY OF NEWPORT BEACH ONLY FINDINGS AND RECOMMENDATIONS Recommendation The Police Department should implement a process to ensure that timecard reviews and approvals are documented and that all supporting documentation for time worked is maintained consistently. A formal process for approving employee system access rights should be implemented and reviewed regularly to determine that employee system access is necessary for their roles and responsibilities. Employee time exceptions and adjustments should be reviewed and approved by supervisors each pay period and system time adjustments at the City-wide level should be evaluated periodically to reduce the risk that inappropriate changes will be processed and not identified. 4. Finding Policies and procedures are not well-defined, resulting in internal control gaps related to overtime controls. We identified 29 instances where employees worked overtime, with no documentation available to support prior approval. Recommendation We recommend that the City strengthen controls to monitor the use over overtime timecodes to prevent and detect errors, fraud, and abuse. Overtime should be approved in advance when feasible and, when not feasible, as soon as possible after the work has been performed. 5. Finding In some instances, adequate support, including documentation showing eligibility, supervisor approval, dollar amount, and time period, was not available to support certification pay. In cases of retired employees, supporting documentation for certification pay was no longer available. Recommendation Changes in certification pays should be documented with an approved PAF. After the PAFs have been approved, employees that received wage rate changes should be reviewed in the following pay period to ensure adjustments are correctly recorded to reduce the risk of errors from manual inputs. Additionally, documentation for retired personnel should be retained for, at minimum, three years following their retirement to ensure that documentation is readily available. Although the focus of this internal audit was to identify opportunities for improvement, it is important to note the areas of commendable operations. The City should be commended for the following accomplishments: • Readiness for Change: During our interviews, feedback from City employees indicated that they understand the importance of internal controls over the payroll function and are open to opportunities for improvement to ensure payroll is properly supported and processed. • Policies and Procedures: While the policies and procedures related to payroll and timekeeping should be expanded, they still provide a good baseline for implementing updated policies and procedures. • Certification Payments: While documentation retention can be improved, the documentation available was in-line with best practices. We would like to thank City staff and management for their willingness to assist with this project. Commendations 132 133 ATTACHMENT F MANAGEMENT RESPONSES TO PAYROLL INTERNAL AUDIT FINDINGS 134 Payroll Internal Audit Findings and Management Responses Finding No. 1 – The City has not expanded the Payroll and Timekeeping P&Ps to include the recommendations identified in the 2021 Fiscal Policy Inventory and Gap Analysis and the current policy has not been signed by the City Manager. The PD, which utilizes a separate timekeeping system, does not have documented timekeeping P&Ps. Recommendation: Develop comprehensive P&Ps over payroll and timekeeping that address the minimum control standards that must be followed City-wide. Develop PD-specific P&Ps that address specific requirements related to the use of an outside timekeeping system. City Response: The City agrees that the City should develop comprehensive Policies and Procedures related to payroll and timekeeping in order to document in writing policies and procedures that have been established as a matter of practice. Finding No. 2 – In some departments, supervisors are not individually reviewing/approving employee timesheets. Additionally, in some cases, employees are submitting timecards, and supervisors are reviewing/approving them, prior to working the scheduled shifts/time, resulting in an increased risk of wages being paid for hours not actually worked. Recommendation: Employees should submit timecards after working their scheduled shifts/time for the week, and supervisors should then review and approve each timecard submission to ensure the submission reflects actual shifts/hours worked. City Response: Supervisors are responsible for approving hours worked for their employees. This is generally accomplished by approving individual timecards for each employee, and ensuring that the hours reflected on each timecard reflects actual hours worked. Timecards are generally approved after an employee has worked their scheduled shifts for the week. Finding No. 3 – The Police Department elected to not provide supporting documentation of user system access rights, time entry adjustments, and documentation of supervisor reviews and approvals. Additionally, the City-wide audit log for time-entry adjustments has not been enabled and periodic reviews corresponding reports were not established. Recommendation: The Police Department should implement a process to ensure that timecard reviews and approvals are documented and that all supporting documentation for time worked is maintained consistently. A formal process for approving employee system access rights should be implemented and reviewed regularly to determine that employee system access is necessary for their roles and responsibilities. Employee time exceptions and adjustments should be reviewed and approved by supervisors each pay period and system time adjustments at the City-wide level should be evaluated periodically to reduce the risk that inappropriate changes will be processed and not identified. City Response: The Police Department utilizes InTime, which is a scheduling system that is used to track hours worked. The auditors requested a report that outlines user system access rights for all users with access to InTime. However, InTime does not have the capability of generating a report that outlines user system access rights for all users. However, user system access rights can be viewed and modified for each individual user, which is how the Police Department assigns user system access rights in InTime. Supervisors review and adjust the hours reflected in the InTime scheduling system for their employees, 135 Payroll Internal Audit Findings and Management Responses Page 2 which is imported into Munis for payroll processing purposes. The Payroll Community Services Officer in the Police Department validates the information reflected in Munis to ensure it agrees with the InTime scheduling system. The City-wide audit log for time-entry adjustments was not turned on, which was a default setting in Munis. However, the audit log setting was enabled in Munis on February 14, 2023. The Finance Department has also implemented period reviews of time-entry adjustments. Finding No. 4 – Policies and procedures are not well-defined, resulting in internal control gaps related to overtime controls. We identified 29 instances where employees worked overtime, with no documentation available to support prior approval. Recommendation: We recommend that the City strengthen controls to monitor the use over overtime timecodes to prevent and detect errors, fraud and abuse. Overtime should be approved in advance when feasible and, when not feasible, as soon as possible after the work has been performed. City Response: Overtime is generally approved in advance of time worked. For example, overtime for scheduled events, scheduled operations and programs are approved in advance. However, overtime related to operational necessity, such as large-scale incidents, mutual aid requests or critical incidents are approved contemporaneously via direction from the Watch Commander to book an arrestee, maintain a perimeter, respond to another jurisdiction or similar situation. Finding No. 5 – In some instances, adequate support, including documentation showing eligibility, supervisor approval, dollar amount, and time period, was not available to support certification pay. In cases of retired employees, supporting documentation for certification pay was no longer available. Recommendation: Changes in certification pays should be documented with an approved PAF. After the PAFs have been approved, employees that received wage rate changes should be reviewed in the following pay period to ensure adjustments are correctly recorded to reduce the risk of errors from manual inputs. Additionally, documentation for retired personnel should be retained for, at minimum, three years following their retirement to ensure that documentation is readily available. City Response: The City agrees with the recommendation. 136 ITEM NO. 5C1 INTERNAL AUDIT PROGRAM ATTACHMENT A STAFF PRESENATION – ADDITIONAL MATERIALS RECEIVED 137 Internal Audit Program Update Finance Committee September 14, 2023 138 City of Newport Beach – Finance Department 2 Background The original Moss Adams report outlined 13 areas of focus for future reviews. Eight reviews are complete, one was cancelled. Four topics have not yet been reviewed. Key Control Progress Task Resource 1 Purchasing and Contract Management Complete MGO 2 Cash, Billing, Collections, and Accounts Receivable – Daily Reconciliation and Reporting Complete Moss Adams 3 Information Technology – System Security, Help Desk, Workflow, System Support and Monitoring Complete Moss Adams 4 Fiscal Policy Inventory and Implementation Plan Complete Moss Adams 5 Inventory Management – Central Warehouse and Automotive Inventory Management Complete Moss Adams 6 Accounts Payable and Disbursement Complete Moss Adams 7 Payroll – Employee Timecard Processing Complete Moss Adams 8 Fixed Asset Management – Physical Inventory Process and Asset Record Maintenance Complete Moss Adams 9 Police Property and Evidence Internal Controls Testing – Review how operation handles all evidence, found property or property held for safekeeping to ensure integrity for criminal prosecutions Canceled 10 Financial Reporting – System Access, Segregation of duties, account reconciliation and financial reporting documentation To be bid 11 Budgeting – Budget to actual reporting, budget amendment process, budget process To be bid 12 Business Continuity and Disaster Planning Assessment To be bid 13 Finance Customer Service Operational Review To be bid 139 City of Newport Beach – Finance Department 3 Cash Handling Review Status Remaining Findings Establish citywide requirements for training all cash handlers. Develop citywide policies and require each site to develop specific supporting procedures. Develop minimum citywide policy that identifies the frequency cash is transferred to the Revenue Division for deposit. Establish more effective controls and education on key controls over performing daily cash reconciliations, and implement rotating cash audits at the Central Library. Updates A draft policy has been written and is being reviewed by Finance management. Plans are being developed to help cash handling departments comply with the new policy. 140 City of Newport Beach – Finance Department 4 Fiscal Policies Review Status Remaining Findings There are fourteen policies that will be reviewed and revised as part of the internal audit program. Updates The highest priority policies are in the planning and drafting stages. It is anticipated that all policy revisions will be completed within twelve months. The drafting of the remaining entirely new policies is anticipated to be completed within twenty-four months. As part of this effort, staff will be evaluating all City Council F- policies for any required revisions, as well as looking at whether any existing policies should be consolidated or split into multiple policies. 141 City of Newport Beach – Finance Department 5 Fiscal Policies Review Status Policy New/Existing Planning Staff Drafting Policy Management Review Complete Inventory New X Procurement Existing X X X X Revenue and Accounts Receivable New X Accounts Payable New X Cash Management New X X X Debt Management Existing X Fixed Asset Management Existing X Grant Management Existing X 142 City of Newport Beach – Finance Department 6 Internal Audit Program Findings Accounts Payable and Disbursements Objective: test payments for proper approval, assess payment and vendor monitoring and evaluate controls for segregation of duties related to invoice approval and payment Key findings included identifying a need to: Continue working to develop comprehensive fiscal policies that include periodic monitoring. Define appropriate monitoring activities for accounts payable and document these policies. Conduct routine monitoring of vendor changes to ensure accurate information and that vendors are in good standing. 143 City of Newport Beach – Finance Department 7 Internal Audit Program Findings Fixed Assets Objective: review the asset management processes for controls and compliance with policies and procedures, and best practices. Key findings included identifying a need to: Develop comprehensive fixed asset policies and procedures that address all key areas of fixed asset management functions, and roles and responsibilities to allow for compliance to be monitored. Develop comprehensive policies and procedures that address asset receiving and tagging, require departments to maintain accurate asset listings and utilize the Asset Addition Form, and implement controls to ensure assets are reported timely. Implement improved controls over the physical asset inventory process, update City-wide fixed asset listing, and research and resolve variances. 144 City of Newport Beach – Finance Department 8 Internal Audit Program Findings Payroll Objective: evaluate and test internal controls related to the City’s payroll function from initial time entry through payroll posting in the general ledger. Key findings included identifying a need to: Develop comprehensive policies and procedures over payroll and timekeeping that address the minimum control standards that must be followed City-wide. Develop Police Department specific policies and procedures that address specific requirements related to the use of an outside timekeeping system. Ensure employees submit timecards after working their scheduled shift/time for the week. Ensure that overtime is approved in advance when feasible and, when not feasible, as soon as possible after the work has been performed. Retain documentation to support certification pays, including documentation for retired personnel. 145 City of Newport Beach – Finance Department 9 FY 2023-24 Internal Audit Program Four topics remain from the 2020 assessment At the January 2023 Finance Committee meeting staff was directed to seek proposals for all remaining topics and complete what fits within the budget This process is beginning, and staff will report back to the Finance Committee the topics to be studied this fiscal year Staff has begun to address the findings from the deep dive reports. Periodic updates will be provided on the status of the Internal Audit Program upon the commencement of internal audit activities later this year. 146 City of Newport Beach – Finance Department 10 Questions? 147 CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT Agenda Item No. 5D September 14, 2023 TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE FROM: Finance Department Jason Al-Imam, Finance Director/Treasurer 949-644-3126 or jalimam@newportbeachca.gov SUBJECT: BUDGET AMENDMENTS FOR QUARTER ENDING JUNE 30, 2023 EXECUTIVE SUMMARY The purpose of this memorandum is to report on the budget amendments for the fourth quarter of Fiscal Year 2022-23. All budget amendments are in compliance with City Council Policy F-3, Budget Adoption and Administration. DISCUSSION City Council Policy F-3, Budget Adoption and Administration, identifies how appropriations can be transferred, increased, or reduced. The Finance Committee reviews a quarterly report of City Council and City Manager budget amendments including their effect on fund balance. Please find the list of budget amendments included as Attachment A. Prepared by:Submitted by: /s/ Jessica Nguyen /s/ Jason Al-Imam Jessica Nguyen Jason Al-Imam Budget Analyst Finance Director/Treasurer Attachment: A. Budget Amendments Fiscal Year 2022-23 Quarter Ending June 30, 2023 148 ATTACHMENT A BUDGET AMENDMENTS FISCAL YEAR 2022-23 QUARTER ENDING JUNE 30, 2023 149 BA #Date Amendment Type Fund Revenues Expenditures Net Effect on Fund Balance Increase/(Decrease) Department Explanation 058 04/11/2023 City Council ACKERMAN TRUST - 32,533.05 32,533.05 Library To accept a donation from Ackerman Trut for purchase of Library Technology. ARPA 2021 - (41,272.00) (41,272.00) MISC FFP PROJECTS - FACILITIES FINANCING PLAN - PARKS & COMMUNITY CENTERS - 527,520.00 (527,520.00) 065 04/03/2023 City Manager GENERAL FUND 3,082.70 3,082.70 - Police Police Emergency Coordinator personnel reimbursement for an attended conference at the International Association of Emergency Managers (IAEM) in November 2022. 066 05/09/2023 City Council EQUIPMENT FUND - 102,817.00 (102,817.00) Public Works To approve the purchase of a bus for the Oasis Senior Center and two storm water pumps. The transit bus and both storm water pumps meet the condition replacement criteria as established by Council Policy F-9, City Vehicle/Equipment Replacement guide. 05/23/2023 City Council GENERAL FUND 2,072,146.75 1,027,991.75 1,044,155.00 TIDE & SUBMERGED LANDS FUND 500,000.00 500,000.00 - PEG FEES - 47,991.75 (47,991.75) RESTRICTED PEG FEES - 20,000.00 (20,000.00) NEIGHBORHOOD ENHANCEMENT 1,000,000.00 1,000,000.00 - 068 05/08/2023 City Council GENERAL FUND 2,500.00 2,500.00 - Library Accept donation from the Cultural Arts Foundation to fund Cultural Arts Program. 069 05/10/2023 City Manager GENERAL FUND 4,780.00 4,780.00 - Library Accept CA Literacy Grant Funds and add to new Library software account. 070 05/10/2023 City Manager GENERAL FUND - 3,220.00 - Library Reappropriate unused salary savings in to CA Literacy Grant expense account. 071 05/23/2023 City Council OPIOID REMEDIATION 395,765.84 395,765.84 - Police Increase revenues and expenses related to a settlement received for opioid remediation. 072 05/23/2023 City Council FIRE EQUIPMENT FUND - 142,975.85 (142,957.85) Fire Increase appropriation for the sole source selection and purchase of six (6) Zoll Medical Corporation manufactured AutoPulse© mCPR devices and associated components and warranties. 05/23/2023 City Council GENERAL FUND - 410,000.00 (410,000.00) TIDE & SUBMERGED LANDS FUND 410,000.00 410,000.00 410,000.00 074 06/01/2023 City Manager GENERAL FUND - 385,000.00 - RSS Instructor payments for Recreation's various classes were cut in FY2020-21 as a budget reduction strategy and remained lower than the pre-pandemic levels through the current year's adopted budget. City Council approved a budget amendment with the first quarter report to increase instructor payment budgets, however, demand for classes has necessitated an additional appropriation. An analysis for salary savings caused by vacancies throughout the year has shown that sufficient savings exist, and that a transfer within the department's budget is appropriate. 075 06/27/2023 City Council GENERAL FUND - 134,477.47 (134,477.47) Fire Appropriate expenses for the first payment to the State of California for the participation in the PP-GEMT-IGT program. City of Newport BeachFiscal Year 2022-23 Budget AmendmentsQuarter Ending June 30, 2023 04/25/2023061 Redirecting American Rescue Plan Act Funding from the Library Lecture Hall (LLH) Project to the City Yard Fueling Support Facilities and Transfer Station Rehabilitation (CNG) Project and redirecting FFP funding for the CNG Project to the LLH Project and appropriating remaining ARPA fund balance to the CNG Project and transferring associated savings from the CNG project in the FFP Fund to the FFP Fund balance. UtilitiesCity Council Finance To increase revenue estimates and expenditure appropriations relating to the fiscal year 2022-23 Quarter Three staff report. 067 073 Harbor To increase appropriation expenditures to the Harbor Department, Professional Service accounts to abide by Comission Objective 2.3. These recommendations will improve navigation safety and allow additional moorings within the fields and mooring size exchange requests. 150 BA #Date Amendment Type Fund Revenues Expenditures Net Effect on Fund Balance Increase/(Decrease) Department Explanation City of Newport Beach Fiscal Year 2022-23 Budget AmendmentsQuarter Ending June 30, 2023 076 06/27/2023 City Council EQUIPMENT FUND - 104,164.83 (104,164.83) Public Works To purchase three (3) vehicles for the replacement of existing vehicles that are in accordance with the replacement criteria as established by City Council Policy F-9 for the Public Works Department. The total amount for the three (3) vehicles is $99,204.60. The total expenditure requested includes an additional 5% contingency in the amount of $4,960.23 to cover the cost of unforseen changes. 077 06/15/2023 City Manager GENERAL FUND - 24,000.00 - Police For the Boardwalk Enforcement Program. Council approval needed to utilize contract services allocation for NBPD overtime deployment. 078 06/30/2023 City Manager GENERAL FUND - 350,000.00 - Police To utilize budget savings in FY2023 to fund Police Department Camera Replacement/Integration. 151 8/15/23 Scheduled Date Agenda Title Report Type Agenda Description Thursday, September 14, 2023 Annual Review of Investment Performance Presentation The City's investment advisor, Chandler Asset Management, will report on the performance of the City's investment portfolio for the fiscal year ending June 30, 2023. Annual Review of Investment Policy Presentation Staff will provide a presentation regarding any changes proposed to the City's Investment Policy by staff or the City's investment advisor prior to the Investment Policy being approved by the City Council. Rescheduled from May Internal Audit Program Update Presentation Presentation of reports, findings, and recommendations from the FY 2022-23 audit program. Budget Amendments for Quarter Ending June 30, 2023 Receive and File Staff will report on the budget amendments from the prior quarter. Workplan Review Receive and File Staff will report on the upcoming Finance Committee items. Thursday, October 12, 2023 Budget Amendments for Quarter Ending September 30, 2023 Receive and File Staff will report on the budget amendments from the prior quarter. Fiscal Sustainability Plan Review Department Review - Fire Department OPEB Actuarial Valuation Report Update Presentation Staff will provide the Committee with an overview of the Fiscal Year 2022-23 actuarial valuation report prepared by the City's actuary. Year-End Budget Results and Surplus Allocation Presentation Staff will provide a presentation regarding the year-end budget results for FY 2022-23 and recommendations for allocation of any year-end budget surplus. First Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY 2023-24 budget performance. Workplan Review Receive and File Staff will report on the upcoming Finance Committee items. Thursday, November 9, 2023 CalPERS Update Presentation Staff will provide the Committee with an overview of the data from the latest actuarial reports from CalPERS as well as their impact on prior projections of the paydown of the City's unfunded pension liability. Long Range Financial Forecast (LRFF) Update Presentation Staff will brief the Committee regarding the results of the updated LRFF analysis.December 2023 Committee Recess September 2023 October 2023 November 2023 Newport Beach Finance Committee Work Plan 1 152