EAST BAY REGIONAL PARK DISTRICT BOARD FINANCE COMMITTEE AGENDA STATEMENT MEETING DATE – Monday February 28, 2018
SUBJECT: December 31, 2017 Investment Report and Portfolio Review
Prepared by: Deborah Spaulding, Assistant Finance Officer
ATTACHMENTS: A. Investment Balances for Period Ending December 31, 2017 B. PFM Investment Performance Review for the quarter ended December 31, 2017 C. Total Cash & Investments by Type
RECOMMENDATION: Review the December 31, 2017 Investment Report and direct staff to prepare the information for acceptance by the Board of Directors.
DESCRIPTION: In accordance with Board Operating Guidelines and the District’s Investment Policy, the attached report has been prepared on the District’s cash and investments. The total market value of the District’s pooled cash and investments as of December 31, 2017 was $226,321,444. Bond funds held by trustees were an additional $135,415,216.
The pooled cash and investments held by the District of $226.3 million as of December 31, 2017 reflects an increase in market value of $20.9 million, when compared to funds held at the end of the last quarter, $205.4 million. This is mainly the result of the timing of property tax revenue receipts, which are the largest source of District revenue, and which the District receives primarily in two large annual payments, in December and April. During the first and third quarter of the year, cash balances diminish; cash balances replenish again in quarters two and four. As an additional point of reference, the market value of pooled cash and investments as of December 31, 2016 was $221.8 million.
Bond funds held by fiscal agents for debt service and bond project funds totaled $135.4 million, approximately $91.8 million more than funds held as of September 30, 2017. The primary reason for the increase was that in November, the District issued $80 million in new Measure WW bonds and refunded $44.5 million in 2009 Measure WW debt. Additionally, the required funds for bonded debt service were levied.
The District uses the firm PFM to advise the District on its investments. The PFM report attached as Attachment B provides an overview of the District’s invested funds and strategy for the portfolio. In addition to funds managed by PFM, $64.9 million of District funds were invested in LAIF, the Local Agency Investment Fund, a State managed investment alternative for California's local governments.
Agenda Item No. 1 1 In the fourth quarter of 2017, the District was continuing to transition its banking relationship from Wells Fargo Bank to Bank of the West. As a result, this statement reflects two accounts that each hold a portion the District’s pooled cash. As of December 31st, the Wells Fargo accounts were still being used for payroll, while the accounts payable function was fully transferred to Bank of the West. The transition to Bank of the West is expected to be complete by the end of the first quarter of 2018.
The following is a description of the information provided in the report Attachments:
• Attachment A provides comparative investment balance information between the current quarter, the prior quarter and the same period one year ago.
• Attachment B provides an Investment Performance Review of all investments managed by PFM. Allison Kaune, Senior Managing Consultant from PFM, will provide a market update and detailed information about District investments during the fourth quarter of 2017.
• Attachment B, page 11 provides information on the managed portfolio maturity and credit quality. Staff will continue to work with PFM in the coming year to increase the portfolio maturity, which will increase interest earnings while maintaining the necessary liquidity to meet operating and capital cash requirements.
• Attachment B, page 12 shows that the District’s invested funds as of December 31, 2017 complied with the Board approved 2017 Investment Policy. The District’s cash management program provides sufficient liquidity to meet expenditure requirements for the next six months.
• Attachment B, beginning on page 28 provides detailed information on all securities held and managed by PFM.
• Attachment C shows all District cash and investments by type (including funds not managed by PFM).
This report is provided to the Board Finance Committee for review and recommendation to the full Board of Directors for acceptance.
RECOMMENDATION:
Staff requests that the Board Finance Committee recommend to the full Board of Directors acceptance of the December 31, 2017 Investment Report.
2 Attachment A EAST BAY REGIONAL PARK DISTRICT INVESTMENT BALANCES
For Period Ending December 31, 2017
District Cash and Investment Balances current quarter prior quarter prior year Market Value Amortized Cost Basis Market Value Market Value December 31, 2017 December 31, 2017 September 30, 2017 December 31, 2016 Pooled Investments Managed by CFO Wells Fargo Checking $ 79,791 $ 79,791 $ 110,296 $ 1,175
Short-term Investments Wells Fargo Sweep 3,666,777 3,666,777 9,495,282 5,102,914 Bank of the West Sweep 4,254,956 4,254,956 5,000,000 - LAIF 64,875,734 64,999,654 56,242,820 50,000,000 CAMP 57,104,049 57,104,049 47,846,563 90,837,720 1st Am Govern Fund-US Bank investment custodian 157,306 157,306 10,061,142 71,417 Sub-total 130,138,613 130,262,533 128,756,103 146,013,226 Mid-term Securities US Treasuries 39,265,793 39,506,758 22,872,822 19,020,382 Federal Agencies/Instrumentalities 20,294,027 20,532,333 20,369,357 27,265,094 State/Local Agencies 1,373,966 1,380,448 1,376,235 2,978,392 Supra-National Agency Bonds/Notes 3,121,510 3,158,549 2,364,488 1,173,530 Corporate Bonds/CP/CDs 32,127,534 32,328,081 29,618,139 25,327,132 Sub-total 96,182,831 96,906,170 76,601,041 75,764,531 Total Pooled Cash/Investments 226,321,444 227,168,702 205,357,145 221,777,756
Bond Funds Managed by Fiscal Agents Short-term Investments 2012 Prom Note Proj Fund (Dreyfus non-AMT tax free) 1,109,641 1,109,641 1,195,005 16,804 2012 Debt Service (Dreyfus) 140 140 - 12 Measure AA Project Fund - - - 15,496,877 US Bank Measure AA Bond (Managed by CFO) 13,339,227 13,339,227 14,272,370 - Measure WW 2013 Project Fund 5,288,650 5,288,650 5,274,254 23,698,846 Measure AA Debt Service Fund 583,544 583,544 7,821 1,014,194 Measure WW Debt Service Fund 7,566,774 7,566,774 3,073,550 6,923,911 Measure WW 2017 Capitalized Interest 7,127,840 7,127,840 - - Measure WW 2017 Project Funds 79,775,191 79,775,191 - - Mid-term securities
2012 Prom Note Project Fund (State/Local Agencies) 20,624,209 20,685,203 20,733,859 22,075,885 Measure WW Project Fund (US Treasuries) - - - - Measure WW Project Fund (Federal Agencies) - - - - Measure WW Project Fund (Corp notes /CP) - - - - Long-term investment
- - - - Total Bond Funds 135,415,216 135,476,210 43,576,951 69,226,530
Grand Total District Cash/Investments $ 361,736,660 $ 362,644,913 $ 248,934,095 $ 291,004,286
Investment Earnings (accrual basis): quarter ended year-to-date at year-to-date at December 31, 2017 December 31, 2017 December 31, 2016 Short-term Investments $ 387,008 $ 1,592,402 $ 851,386 Mid-term Investments 371,176 1,227,916 1,751,736 Long-term Investments - - - Total Investment Earnings $ 758,185 $ 2,820,318 $ 2,603,121
Investment Fees: quarterly ytd fees Wells Fargo account fees $ 3,412 $ 19,713 US Bank Custodial fees $ 625 $ 1,250 PFM invest mgt fees/US Bank custodial fees $ 19,153 77,558 Total $ 23,189 $ 98,521
I verify that this report contains the total amounts of cash and investments at December 31, 2017 The investments are in conformity with the Investment Policy as stated in Resolution # 2017-03-054, dated March 7, 2017. The District's cash management program provides sufficient liquidity to meet expenditure requirement for the next six months, in conformity with the Investment Policy. Debra Auker Debra Auker, CFO 3 THIS PAGE LEFT INTENTIONALLY BLANK
4 Attachment B
EAST BAY REGIONAL PARK DISTRICT
Investment Performance Review For the Quarter Ended December 31, 2017
Client Management Team PFM Asset Management LLC
Monique Spyke, Managing Director 50 California Street, Suite 2300 One Keystone Plaza, Suite 300 Allison Kaune, Senior Managing Consultant San Francisco, CA 94111 Harrisburg, PA 17101-2044
Justin Semmes, Analyst 415-982-5544 717-232-2723
5 Market Update
6 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
Interest Rate Update
Two-year treasury yields moved notably higher for the year ended December 31, 2017; the increase was most pronounced during the fourth quarter as markets responded to another rate hike by the Federal Reserve and the passage of the largest overhaul of the U.S. tax system in more than 30 years.
2-Year Treasury Yields December 31, 2016 – December 31, 2017 2.00%
1.90%
1.80%
1.70% +40 basis points QoQ 1.60% Fed Rate Hike Fed Rate Hike Fed Rate Hike 1.50%
1.40%
1.30%
1.20%
1.10%
1.00% Dec '16 Feb '17 Apr '17 Jun '17 Aug '17 Oct '17 Dec '17
Source: Bloomberg, as of 12/31/17.
PFM Asset Management LLC 7 1 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
U.S. Treasury Yield Curve
U.S. Treasury Yield Curve Yield Curve History 2.5% Maturity 12/31/16 12/31/17 Change
3-Mo. 0.50% 1.38% + 0.88% 2.0% 6-Mo. 0.61% 1.53% + 0.92%
1.5% 1-Yr. 0.81% 1.74% + 0.93% 2-Yr. 1.19% 1.89% + 0.70%
1.0% 3-Yr. 1.45% 1.97% + 0.52%
5-Yr. 1.93% 2.21% + 0.28% 0.5% December 31, 2017 10-Yr. 2.44% 2.41% - 0.03% September 30, 2017 December 31, 2016 20-Yr. 2.76% 2.58% - 0.18% 0.0% 3M 6M 1 2 3 5 30-Yr. 3.07% 2.74% - 0.33% Yr Yr Yr Yr
Source: Bloomberg, as of 12/31/17.
PFM Asset Management LLC 8 2 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
Economic Growth Remained Strong in Third Quarter
Gross domestic product (GDP) increased at an annualized rate of 3.2% in the third quarter of 2017, the fastest pace of expansion over two consecutive quarters since 2014. Growth has averaged 2.3% over the last four quarters.
The acceleration in third quarter GDP reflected positive contributions from personal consumption and business investment boosted primarily by a rise in private inventories and exports. This acceleration was offset by negative contributions from residential housing.
U.S. Real GDP QoQ, SAAR
6%
Bloomberg Survey of 4% Economists 3.1% 3.2% 2.7% 2.7% 2.0% 1.9% 2%
0%
-2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 2015 2016 2017 2018
Source: Bloomberg, as of December 2017. SAAR is seasonally adjusted annualized rate. Orange dashes denote four-quarter averages.
PFM Asset Management LLC 9 3 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
Labor Market Activity During the Quarter
The U.S. labor market added 611,000 jobs for the quarter ending December 31, 2017, and an average of 171,000 jobs per month over the past year.
Headline unemployment rate for the fourth quarter remained at 4.1% for the third consecutive month. The U6 unemployment rate decreased from 8.3% in September to 8.1% in December, while the labor force participation rate fell from 63.0% in September to 62.7% in December.
Average hourly earnings—an important gauge of wage growth—grew 2.5% over the past 12 months.
Monthly Change in Nonfarm Payrolls Unemployment Rate Nonfarm Payrolls 12-Month Moving Average 400k 9%
7.9% 8% 300k 7% 6.7%
200k 6% 5.6% 5.0% 5% 4.7% 100k 4.1% 4%
0k 3% Dec '12 Dec '13 Dec '14 Dec '15 Dec '16 Dec '17 Dec '12 Dec '13 Dec '14 Dec '15 Dec '16 Dec '17
Source: Bloomberg, as of December 2017.
PFM Asset Management LLC 10 4 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
Inflation Remains Muted
Inflation pressures have declined since the beginning of 2017. The core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, moved slightly higher to 1.5% year-over-year in November.
The Fed expects inflation to remain subdued in the near term but to reach their 2% target in the medium term.
Inflation Measures Expectations for Average Inflation (YoY) Rate over Next 5 Years 2.5% 2.5%
2.0% 2.0%
1.5%
1.5%
1.0%
1.0% Core CPI 0.5% Core PCE Fed's Long Term Inflation Target 0.0% 0.5% Nov '12 Nov '13 Nov '14 Nov '15 Nov '16 Nov '17 Nov '12 Nov '13 Nov '14 Nov '15 Nov '16 Nov '17
Source: Bloomberg, as of November 2017. Inflation expectations based on yield difference between 5-year Treasury note and 5-year Treasury Inflation Protected Securities (TIPS).
PFM Asset Management LLC 11 5 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
GOP Tax Cuts and Jobs Act
Income Tax Brackets Deductions Exemptions Other
Tax Single Married Rate • Can deduct up to • Child tax credit raised • The deduction for $10,000 in a blend of from $1,000 to $2,000 interest on education 10% $9,525 $19,050 state and local property, per child. loans, qualified tuition 12% $38,700 $77,400 income, and sales tax. • The estate tax expenses, and The state and local expensive medical bills 22% $82,500 $165,000 exemption will be deduction was doubled from $5.5 would be maintained. 24% $157,500 $315,000 previously unlimited. million to $11 million. • No changes will be 32% $200,000 $400,000 • Deductible interest on made to 401(k) plans. Personal Taxes mortgage capped at 35% $500,000 $600,000 $750,000. 37% > $500,000 > $600,000
Marginal Tax Rate Deductions Exemptions Other
• Reduced from 35% to 21%. • Pass-through • Businesses will be • One-time tax on • Marks the largest one-time businesses like limited exempt from paying the repatriated cash and decline in U.S. history and liability corporations corporate alternative profits will be 15.5%, up amounts to almost $1 trillion allowed to deduct 20% minimum tax. slightly from the 14% to of tax cuts over the next of their earnings. 14.5% that had been decade. However, this will expire proposed in earlier after 2025. versions. Business Business Taxes
Source: The Washington Post, Business Insider.
PFM Asset Management LLC 12 6 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Market Update
FOMC “Dot Plot” – December 2017
Fed Participants’ Assessments of “Appropriate” Monetary Policy 5% Dec-17 FOMC Projections
Dec-17 Median
4% Fed Funds Futures
3%
2% History of Recent Fed Rate Hikes Dec ’17 1.25 - 1.50% Fed expects 3 more 1% Jun ’17 1.00 - 1.25% rate hikes in 2018 Mar ’17 0.75 - 1.00% Dec ’16 0.50 - 0.75% Dec ’15 0.25 - 0.50% 0% 2017 2018 2019 2020 Longer Term
Source: Federal Reserve and Bloomberg. Individual dots represent each Fed members’ judgement of the midpoint of the appropriate target range for the federal funds rate at each year-end. Fed funds futures as of 12/13/17.
PFM Asset Management LLC 13 7 Investment Performance Review
14 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Review
Portfolio Recap
In the fourth quarter, economic data was generally favorable, the unemployment rate hovered near a 15-year low, inflation remained in check, and the Fed raised rates for a third time in 2017. At the same time, both consumer and business confidence remained high, and Congress passed large corporate and individual tax cuts.
Market reaction to the final tax bill reflected expectations for at least a near-term positive economic impact, causing both interest rates and U.S. equity markets to rise.
The post-tax-bill market moves amplified existing trends. During the quarter
• 2- year Treasury yields rose 40 basis points (0.40%), reflecting the FOMC’s December rate hike and expectations for more policy changes going forward,
• 10-year Treasury yields rose 9 basis points, muted by low inflation prospects and strong demand for yield by global investors,
• the yield curve flattened to its narrowest levels since 2007, and
• equity markets capped the first calendar year ever with 12 consecutive months of positive returns.
The strength of the U.S. economy, coupled with the December Fed rate hike, drove yields on all but the longest Treasury maturities higher in the fourth quarter. As a result, fixed-income returns were mixed for the quarter, with shorter indexes generating negative returns; however, on a positive note, reinvestment opportunities became more attractive.
Higher yields, narrow credit spreads, and a flat yield curve created a challenging investment landscape. As such, we generally employed a duration-neutral portfolio stance relative to the benchmark.
PFM Asset Management LLC 15 8 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Review
Portfolio Recap
Credit instruments generated outperformance for the quarter relative to government securities. The primary drivers of portfolio performance were asset allocation and diversification.
• Federal agency yield spreads remained very narrow relative to similar-maturity Treasuries throughout the quarter. We generally favored U.S. Treasuries for government security allocations, except in a few maturity ranges where agency spreads were marginally wider. Minimal incremental income and similar relative price changes resulted in little excess return from the agency sector during the quarter. (Excess return is the return on a sector over and above the return on similar-duration Treasuries.)
• Supranational spreads continued to narrow through the fourth quarter on limited supply dynamics. The portfolio benefited from incremental performance, in addition to broader diversification within the government sector.
• Investment-grade corporate yield spreads continued to grind tighter. Due to a combination of incremental yield and spread compression, the corporate sector was one of the best performing fixed income sectors during the quarter.
• Incremental returns on asset-backed securities (ABS) were also strong, although they were dependent on industry, issuer, and deal tranches.
• Negotiable CDs continued to provide attractive incremental yield benefits relative to comparable Treasuries while providing an alternative to corporate debt that performed equally well.
• Mortgage-backed security (MBS) investors shrugged off the Fed’s balance sheet reduction process, which began in the fourth quarter as excess returns were positive.
PFM Asset Management LLC 16 9 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Performance
Portfolio Performance (Total Return)
Annualized Return Effective Current Since Inception Portfolio/Benchmark Duration Quarter 1 Year 3 Year 5 Year 10 Year (06/30/09)
EAST BAY REGIONAL PARK DISTRICT 1.82 -0.17% 0.95% 1.05% 0.87% - 0.97%
East Bay California Regional Park Custom Index* 1.80 -0.25% 0.42% 0.62% 0.56% - 0.73%
Difference 0.08% 0.53% 0.43% 0.31% - 0.24%
1.2% 1.05% 1.0% 0.95% 0.97% 0.87% 0.8% 0.73% 0.62% 0.6% 0.56% 0.42% 0.4%
0.2% Total Return
0.0%
-0.2% -0.17% -0.25% -0.4% Current Quarter 1 Year 3 Year 5 Year 10 Year Since Inception
EAST BAY REGIONAL PARK DISTRICT East Bay California Regional Park Custom Index
Portfolio performance is gross of fees unless otherwise indicated.
*The District's Custom Index was the Merrill Lynch 1 Year UST Index from 6/30/09 to 3/31/11 and is the Merrill Lynch 1-3 Year UST Index beginning 3/31/11. PFM Asset Management LLC 17 10 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Snapshot
Credit Quality (S&P Ratings) Sector Allocation
A Certificate of Deposit BBB+** 3.8% U.S. 1.6% A- Treasury 8.4% Portfolio Statistics AAAm 2.0% 25.6% Corporate A+ 12.6% As of December 31, 2017 37.3% 6.7% Federal A-1 Agency/CMO 1.0% 0.2% Par Value: $153,934,455 Supra-Sov / A-1+ Supra-Natl Total Market Value: $153,908,158 0.5% Agency AA 2.0% Security Market Value: $96,182,831 0.5% Municipal Accrued Interest: $354,691 AA- 0.9% Federal 4.0% Mny Mkt Agency/GSE $266,587 Cash: AA+ Fund / Pool 13.0% CAMP $57,104,049 AAA 39.4% 37.3% 3.2% Amortized Cost: $154,010,219
Yield at Market: 1.96%
Yield at Cost: 1.58% Maturity Distribution 45% Effective Duration: 1.82 Years 42.6% 40% Duration to Worst: 1.83 Years 35% Average Maturity: 1.88 Years 31.8% 30% Average Credit: * AA 25% 21.7% 20%
15%
10%
5% 4.0% 0.0% 0.0% 0% 0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years
*An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio. **The "BBB+" category comprises securities rated A or better by Moody's and/or Fitch.
PFM Asset Management LLC 18 11 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Review
The portfolio is in compliance with the District’s Investment Policy and the California Government Code.
% of Permitted by In Security Type Market Value Portfolio Policy Compliance
U.S. Treasury $39,265,793 25.6% 100%
Federal Agency $19,924,464 13.0% 100%
Federal Agency CMOs $369,563 0.2% 20%
Municipal Bonds $1,373,966 0.9% 30%
Supranationals $3,121,510 2.0% 30%
Negotiable CDs $12,800,359 8.3% 30%
Corporate Notes $19,327,176 12.6% 30%
Securities Sub-Total $96,182,831 62.6%
Accrued Interest $354,691
Securities Total $96,537,522
Money Market Fund $266,587 0.2% 20%
CAMP $57,104,049 37.2% 100%
Total Investments $153,908,158 100.0%
PFM Asset Management LLC 19 12 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Performance
Portfolio Earnings
Quarter-Ended December 31, 2017
Market Value Basis Accrual (Amortized Cost) Basis
Beginning Value (09/30/2017) $124,447,604.94 $124,696,255.99
Net Purchases/Sales $29,348,479.39 $29,348,479.39
Change in Value ($509,204.79) ($34,516.88)
Ending Value (12/31/2017) $153,286,879.54 $154,010,218.50
Interest Earned $477,979.83 $477,979.83
Portfolio Earnings ($31,224.96) $443,462.95
PFM Asset Management LLC 20 13 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Composition
Sector Allocation
December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017
Sector MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total MV ($MM) % of Total
Mny Mkt Fund / Pool 57.1 37.3% 47.8 38.4% 99.6 56.5% 77.6 50.5% U.S. Treasury 39.3 25.6% 22.9 18.4% 22.0 12.5% 20.6 13.4% Federal Agency/GSE 19.9 13.0% 19.9 16.0% 22.3 12.7% 24.9 16.2% Corporate 19.3 12.6% 16.9 13.6% 16.8 9.5% 17.5 11.4% Certificate of Deposit 12.8 8.4% 12.7 10.2% 10.3 5.9% 7.9 5.2% Supra-Sov / Supra-Natl Agency 3.1 2.0% 2.4 1.9% 1.2 0.7% 1.2 0.8% Municipal 1.4 0.9% 1.4 1.1% 3.0 1.7% 3.0 1.9% Federal Agency/CMO 0.4 0.2% 0.5 0.4% 0.8 0.5% 0.9 0.6%
Total $153.3 100.0% $124.4 100.0% $175.9 100.0% $153.7 100.0%
100%
Federal Agency/CMO 90%
Municipal 80%
Supra-Sov / Supra-Natl 70% Agency 60% Certificate of Deposit 50% Corporate 40%
Federal Agency/GSE 30%
U.S. Treasury 20%
Mny Mkt Fund / Pool 10% 0% December 2017 September 2017 June 2017 March 2017
Detail may not add to total due to rounding.
PFM Asset Management LLC 21 14 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Composition
Maturity Distribution
As of December 31, 2017
Yield Average 0-1 1-2 2-3 3-4 4-5 >5 Portfolio/Benchmark at Market Maturity Years Years Years Years Years Years
EAST BAY REGIONAL PARK DISTRICT 1.96% 1.88 yrs 42.6% 31.8% 21.7% 4.0% 0.0% 0.0%
East Bay California Regional Park Custom Index* 1.89% 1.92 yrs 3.0% 54.1% 42.9% 0.0% 0.0% 0.0%
60% 54.1%
50%
42.6% 42.9% 40%
31.8% 30%
21.7% 20%
10% 3.0% 4.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0% 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years > 5 Years
EAST BAY REGIONAL PARK DISTRICT East Bay California Regional Park Custom Index
*The District's Custom Index was the Merrill Lynch 1 Year UST Index from 6/30/09 to 3/31/11 and is the Merrill Lynch 1-3 Year UST Index beginning 3/31/11. PFM Asset Management LLC 22 15 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Outlook
2018 Investment Outlook and Strategy
Generally, the economic themes that brought 2017 to a close will carry forward into 2018, including improving growth, stable job production, healthy personal consumption, and strong corporate fundamentals.
Following three hikes in 2017, the Fed’s “dot plot,” released after the December FOMC meeting, indicated an expectation for three more hikes in 2018. As of year-end, the market-implied probability of a rate hike at the March FOMC meeting was around 70%.
The FOMC begins 2018 balancing several factors: persistently low inflation, uncertainty around the pace of economic growth, and the continuation of balance sheet normalization. Additionally, a change in leadership at the Fed—Jerome Powell will replace Janet Yellen as Fed Chair—has the potential to create some uncertainty. As a current Fed governor, Powell is expected to follow closely in Yellen’s footsteps.
Our outlook for each of the major investment-grade fixed income sectors are as follows:
• Federal agency spreads remain tight; however, the best value relative to U.S. Treasuries is in the 2- to 3-year area of the curve. While callable agency value waned towards the end of 2017, wider spreads in the new year may provide an opportunity to capture incremental yield.
• Supranational issuance came to a halt at the close of the year, and with it some of their incremental value. However, with the prospect of high seasonal supply in the first quarter, the expectation exists for attractive spreads and purchase opportunities.
• Corporate yield spreads are expected to remain stable, with incremental income being supportive of continued expected outperformance. As always, careful issuer due diligence will drive selection.
• The increasing pace of Fed balance sheet run-off in the MBS sector may begin to pressure the sector more significantly in the second half of 2018.
• Given the steepness of the short-term yield curve (under one year), short-term credit instruments like negotiable CDs look particularly attractive. We believe their current yields fully compensate for at least three Fed rate hikes in 2018.
PFM Asset Management LLC 23 16 Portfolio Transactions and Holdings
24 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Activity
Quarterly Portfolio Transactions
Trade Settle Maturity Transact Yield Realized Date Date Par ($) CUSIP Security Description Coupon Date Amt ($) at Market G/L (BV)
BUY
10/2/17 10/2/17 2,500,000 912828J84 US TREASURY NOTES 1.37% 3/31/20 2,488,079.50 1.57% 10/2/17 10/10/17 770,000 4581X0CD8 INTER-AMERICAN DEVELOPMENT BANK 2.12% 11/9/20 784,000.37 1.81% 10/3/17 10/3/17 2,500,000 912828F62 US TREASURY NOTES 1.50% 10/31/19 2,515,896.74 1.50% 10/4/17 10/5/17 2,500,000 912828ST8 US TREASURY NOTES 1.25% 4/30/19 2,506,288.21 1.43% 10/11/17 10/20/17 405,000 931142DY6 WAL-MART STORES INC CORP NOTE 1.75% 10/9/19 404,991.90 1.75% 10/12/17 10/13/17 1,750,000 3130ACM92 FEDERAL HOME LOAN BANK NOTES 1.50% 10/21/19 1,746,902.50 1.59% 10/17/17 10/17/17 175,000 912828L99 US TREASURY NOTES 1.37% 10/31/20 174,388.92 1.71% 10/23/17 10/30/17 240,000 438516BQ8 HONEYWELL INTERNATIONAL CORP NOTES 1.80% 10/30/19 239,812.80 1.84% 10/23/17 10/26/17 485,000 05531FAZ6 BRANCH BANKING & TRUST (CALLABLE) NOTES 2.15% 2/1/21 484,776.90 2.17% 10/23/17 10/30/17 300,000 025816BP3 AMERICAN EXPRESS CO CORP (CALLABLE) NOTE 2.20% 10/30/20 299,610.00 2.25% 10/31/17 10/31/17 115,000 172967KB6 CITIGROUP INC CORP NOTES 2.65% 10/26/20 116,196.93 2.30% 10/31/17 10/31/17 100,000 06051GGS2 BANK OF AMERICA CORP (CALLABLE) 2.32% 10/1/21 100,080.07 2.38% 11/1/17 11/3/17 130,000 38148LAA4 GOLDMAN SACHS GROUP INC CORP NOTES 2.60% 4/23/20 131,074.09 2.28% 11/6/17 11/13/17 125,000 037833DJ6 APPLE INC 2.00% 11/13/20 124,895.00 2.03% 11/6/17 11/13/17 245,000 69371RN85 PACCAR FINANCIAL CORP NOTES 2.05% 11/13/20 244,977.95 2.05% 11/8/17 11/10/17 185,000 478160CH5 JOHNSON & JOHNSON CORP NOTE 1.95% 11/10/20 184,802.05 1.99% 11/9/17 11/14/17 520,000 911312BP0 UNITED PARCEL SERVICE CORPORATE BOND 2.05% 4/1/21 519,178.40 2.10% 11/13/17 11/16/17 350,000 02665WBZ3 AMERICAN HONDA FINANCE 2.00% 11/13/19 349,804.00 2.03% 11/16/17 11/17/17 875,000 87019U6D6 SWEDBANK (NEW YORK) CERT DEPOS 2.27% 11/16/20 875,000.00 2.30% 11/16/17 11/20/17 380,000 05531FAZ6 BRANCH BANKING & TRUST (CALLABLE) NOTES 2.15% 2/1/21 378,568.67 2.32% 12/1/17 12/5/17 1,350,000 912828N48 US TREASURY N/B 1.75% 12/31/20 1,353,709.75 1.91% 12/14/17 12/15/17 2,500,000 912828N48 US TREASURY N/B 1.75% 12/31/20 2,506,105.64 1.94% 12/14/17 12/15/17 3,750,000 912828K58 US TREASURY NOTES 1.37% 4/30/20 3,714,075.72 1.86% 12/14/17 12/15/17 3,750,000 912828G95 US TREASURY NOTES 1.62% 12/31/19 3,762,291.95 1.83%
PFM Asset Management LLC 25 17 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Activity
Trade Settle Maturity Transact Yield Realized Date Date Par ($) CUSIP Security Description Coupon Date Amt ($) at Market G/L (BV)
Total BUY 26,000,000 26,005,508.06
INTEREST
10/1/17 10/25/17 73,600 3136ANJY4 FNMA SERIES 2015-M7 ASQ2 1.55% 4/1/18 95.07 10/1/17 10/25/17 237,683 3136AQDQ0 FANNIE MAE SERIES 2015-M13 ASQ2 1.64% 9/1/19 415.70 10/1/17 10/25/17 98,885 3136AQSW1 FNMA SERIES 2015-M15 ASQ2 1.89% 1/1/19 156.41 10/1/17 10/25/17 105,194 3136ASPX8 FNMA SERIES 2016-M9 ASQ2 1.78% 6/1/19 156.48 10/2/17 10/2/17 0 MONEY0002 MONEY MARKET FUND 372.48 10/4/17 10/4/17 125,000 713448DJ4 PEPSICO, INC CORP NOTES 1.35% 10/4/19 843.75 10/5/17 10/5/17 1,500,000 06417GUE6 BANK OF NOVA SCOTIA HOUSTON LT CD 1.91% 4/5/19 14,484.17 10/8/17 10/8/17 1,000,000 68389XAX3 ORACLE CORP NOTE 2.25% 10/8/19 11,250.00 10/15/17 10/15/17 75,000 3137EADZ9 FREDDIE MAC NOTES 1.12% 4/15/19 421.88 10/15/17 10/15/17 140,000 24422ETM1 JOHN DEERE CAPITAL CORP 1.65% 10/15/18 1,155.00 10/15/17 10/15/17 800,000 3137EADZ9 FREDDIE MAC NOTES 1.12% 4/15/19 4,500.00 10/22/17 10/22/17 350,000 94974BFU9 WELLS FARGO & COMPANY CORP NOTE 2.12% 4/22/19 3,718.75 10/25/17 10/25/17 300,000 38141GVT8 GOLDMAN SACHS GRP INC CORP NT (CALLABLE) 2.00% 4/25/19 3,000.00 10/25/17 10/25/17 45,000 38141GVT8 GOLDMAN SACHS GRP INC CORP NT (CALLABLE) 2.00% 4/25/19 450.00 10/26/17 10/26/17 250,000 172967KB6 CITIGROUP INC CORP NOTES 2.65% 10/26/20 3,312.50 10/28/17 10/28/17 1,300,000 3133EFKY2 FFCB NOTES (CALLABLE) 1.36% 10/28/19 8,840.00 10/30/17 10/30/17 400,000 0258M0EC9 AMERICAN EXPRESS CREDIT (CALLABLE) CORP 1.70% 10/30/19 3,400.00 10/31/17 10/31/17 2,050,000 912828F62 US TREASURY NOTES 1.50% 10/31/19 15,375.00 10/31/17 10/31/17 900,000 912828K58 US TREASURY NOTES 1.37% 4/30/20 6,187.50 10/31/17 10/31/17 2,000,000 912828D23 US TREASURY NOTES 1.62% 4/30/19 16,250.00 10/31/17 10/31/17 795,000 912828D23 US TREASURY NOTES 1.62% 4/30/19 6,459.37 10/31/17 10/31/17 175,000 912828L99 US TREASURY NOTES 1.37% 10/31/20 1,203.13 10/31/17 10/31/17 2,500,000 912828ST8 US TREASURY NOTES 1.25% 4/30/19 15,625.00 10/31/17 10/31/17 855,000 912828D23 US TREASURY NOTES 1.62% 4/30/19 6,946.88 10/31/17 10/31/17 1,200,000 912828K58 US TREASURY NOTES 1.37% 4/30/20 8,250.00
PFM Asset Management LLC 26 18 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Activity
Trade Settle Maturity Transact Yield Realized Date Date Par ($) CUSIP Security Description Coupon Date Amt ($) at Market G/L (BV)
11/1/17 11/1/17 0 MONEY0002 MONEY MARKET FUND 839.82 11/1/17 11/25/17 94,287 3136AQSW1 FNMA SERIES 2015-M15 ASQ2 1.89% 1/1/19 163.27 11/1/17 11/25/17 221,574 3136AQDQ0 FANNIE MAE SERIES 2015-M13 ASQ2 1.64% 9/1/19 346.71 11/1/17 11/25/17 70,621 3136ANJY4 FNMA SERIES 2015-M7 ASQ2 1.55% 4/1/18 91.22 11/1/17 11/25/17 97,689 3136ASPX8 FNMA SERIES 2016-M9 ASQ2 1.78% 6/1/19 151.76 11/2/17 11/2/17 375,000 713448DR6 PEPSICO INC CORP NOTE 1.55% 5/2/19 2,906.25 11/3/17 11/3/17 1,500,000 86563YVN0 SUMITOMO MITSUI BANK NY CD 2.05% 5/3/19 15,631.25 11/5/17 11/5/17 175,000 904764AV9 UNILEVER CAPITAL CORP BONDS 1.80% 5/5/20 1,575.00 11/9/17 11/9/17 770,000 4581X0CD8 INTER-AMERICAN DEVELOPMENT BANK 2.12% 11/9/20 8,181.25 11/11/17 11/11/17 400,000 037833CS7 APPLE INC BONDS 1.80% 5/11/20 3,600.00 11/11/17 11/11/17 400,000 458140AZ3 INTEL CORP NOTES 1.85% 5/11/20 3,700.00 11/13/17 11/13/17 490,000 458182DX7 INTER-AMERICAN DEVELOPMENT BANK 1.00% 5/13/19 2,450.00 11/24/17 11/24/17 1,150,000 3134G9LD7 FHLMC NOTES (CALLABLE) 1.25% 5/24/19 7,187.50 11/27/17 11/27/17 400,000 459058FS7 INTL BANK OF RECON AND DEV GLOBAL NOTES 1.12% 11/27/19 2,250.00 11/27/17 11/27/17 1,025,000 3135G0YT4 FANNIE MAE GLOBAL NOTES 1.62% 11/27/18 8,328.13 11/27/17 11/27/17 375,000 459058FS7 INTL BANK OF RECON AND DEV GLOBAL NOTES 1.12% 11/27/19 2,113.25 11/30/17 11/30/17 800,000 13606A5Z7 CANADIAN IMPERIAL BANK NY CD 1.76% 11/30/18 7,040.00 11/30/17 11/30/17 700,000 65558LWA6 NORDEA BANK FINLAND NY CD 1.76% 11/30/18 6,296.89 11/30/17 11/30/17 1,800,000 912828G61 US TREASURY NOTES 1.50% 11/30/19 13,500.00 11/30/17 11/30/17 1,000,000 3135G0F73 FNMA BENCHMARK NOTE 1.50% 11/30/20 7,500.00 11/30/17 11/30/17 700,000 912828A34 US TREASURY NOTES 1.25% 11/30/18 4,375.00 11/30/17 11/30/17 700,000 13606A5Z7 CANADIAN IMPERIAL BANK NY CD 1.76% 11/30/18 6,160.00 12/1/17 12/1/17 0 MONEY0002 MONEY MARKET FUND 63.39 12/1/17 12/25/17 63,971 3136ANJY4 FNMA SERIES 2015-M7 ASQ2 1.55% 4/1/18 82.63 12/1/17 12/25/17 64,878 3136AQSW1 FNMA SERIES 2015-M15 ASQ2 1.89% 1/1/19 102.62 12/1/17 12/25/17 184,039 3136AQDQ0 FANNIE MAE SERIES 2015-M13 ASQ2 1.64% 9/1/19 434.86 12/1/17 12/25/17 96,877 3136ASPX8 FNMA SERIES 2016-M9 ASQ2 1.78% 6/1/19 144.10 12/3/17 12/3/17 350,000 717081DU4 PFIZER INC CORP NOTES 1.45% 6/3/19 2,537.50 12/5/17 12/5/17 355,000 437076BQ4 HOME DEPOT INC CORP NOTES 1.80% 6/5/20 3,195.00 12/5/17 12/5/17 750,000 25468PDU7 WALT DISNEY COMPANY CORP NOTES 1.80% 6/5/20 6,712.50
PFM Asset Management LLC 27 19 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Activity
Trade Settle Maturity Transact Yield Realized Date Date Par ($) CUSIP Security Description Coupon Date Amt ($) at Market G/L (BV)
12/7/17 12/7/17 135,000 172967KS9 CITIGROUP INC CORP NOTES 2.05% 6/7/19 1,383.75 12/11/17 12/11/17 800,000 36962G6P4 GENERAL ELEC CAP CORP GLOBAL NOTES 2.10% 12/11/19 8,400.00 12/13/17 12/13/17 400,000 38145GAJ9 GOLDMAN SACHS GROUP (CALLABLE) INC BONDS 2.30% 12/13/19 4,600.00 12/14/17 12/14/17 200,000 92826CAB8 VISA INC (CALLABLE) CORP NOTES 2.20% 12/14/20 2,200.00 12/22/17 12/22/17 150,000 24422ETS8 JOHN DEERE CAPITAL CORP NOTES 1.95% 6/22/20 1,462.50 12/31/17 12/31/17 2,500,000 912828N48 US TREASURY N/B 1.75% 12/31/20 21,875.00 12/31/17 12/31/17 1,350,000 912828N48 US TREASURY N/B 1.75% 12/31/20 11,812.50 12/31/17 12/31/17 2,600,000 912828XH8 US TREASURY NOTES 1.62% 6/30/20 21,125.00 12/31/17 12/31/17 1,200,000 912828A75 US TREASURY NOTES 1.50% 12/31/18 9,000.00 12/31/17 12/31/17 3,750,000 912828G95 US TREASURY NOTES 1.62% 12/31/19 30,468.75 12/31/17 12/31/17 2,000,000 912828A75 US TREASURY NOTES 1.50% 12/31/18 15,000.00
Total INTEREST 47,469,298 377,856.47
PAYDOWNS
10/1/17 10/25/17 2,979 3136ANJY4 FNMA SERIES 2015-M7 ASQ2 1.55% 4/1/18 2,979.33 0.00 10/1/17 10/25/17 4,598 3136AQSW1 FNMA SERIES 2015-M15 ASQ2 1.89% 1/1/19 4,598.21 0.00 10/1/17 10/25/17 7,505 3136ASPX8 FNMA SERIES 2016-M9 ASQ2 1.78% 6/1/19 7,504.75 0.00 10/1/17 10/25/17 16,108 3136AQDQ0 FANNIE MAE SERIES 2015-M13 ASQ2 1.64% 9/1/19 16,108.10 0.00 11/1/17 11/25/17 6,649 3136ANJY4 FNMA SERIES 2015-M7 ASQ2 1.55% 4/1/18 6,649.30 0.00 11/1/17 11/25/17 812 3136ASPX8 FNMA SERIES 2016-M9 ASQ2 1.78% 6/1/19 812.41 0.00 11/1/17 11/25/17 29,409 3136AQSW1 FNMA SERIES 2015-M15 ASQ2 1.89% 1/1/19 29,408.51 0.00 11/1/17 11/25/17 37,535 3136AQDQ0 FANNIE MAE SERIES 2015-M13 ASQ2 1.64% 9/1/19 37,535.02 0.00 12/1/17 12/25/17 3,690 3136ANJY4 FNMA SERIES 2015-M7 ASQ2 1.55% 4/1/18 3,690.33 0.00 12/1/17 12/25/17 10,804 3136AQSW1 FNMA SERIES 2015-M15 ASQ2 1.89% 1/1/19 10,804.04 0.00 12/1/17 12/25/17 158 3136ASPX8 FNMA SERIES 2016-M9 ASQ2 1.78% 6/1/19 157.60 0.00 12/1/17 12/25/17 24,707 3136AQDQ0 FANNIE MAE SERIES 2015-M13 ASQ2 1.64% 9/1/19 24,706.76 0.00
PFM Asset Management LLC 28 20 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Activity
Trade Settle Maturity Transact Yield Realized Date Date Par ($) CUSIP Security Description Coupon Date Amt ($) at Market G/L (BV)
Total PAYDOWNS 144,954 144,954.36 0.00
SELL
10/12/17 10/13/17 450,000 912828F62 US TREASURY NOTES 1.50% 10/31/19 452,746.01 1.53% (298.83) 10/13/17 10/17/17 85,000 084670BX5 BERKSHIRE HATHAWAY INC GLOBAL NOTES 1.15% 8/15/18 84,963.50 1.44% (200.60) 10/23/17 10/30/17 135,000 0258M0DV8 AMERICAN EXPRESS CRD CRP NT (CALLABLE) 1.80% 7/31/18 135,720.90 1.69% (16.86) 10/23/17 10/30/17 400,000 06406HDB2 BANK OF NEW YORK MELLON CORP (CALLABLE) 1.60% 5/22/18 402,852.89 1.58% 51.00 10/24/17 10/26/17 300,000 06406HDB2 BANK OF NEW YORK MELLON CORP (CALLABLE) 1.60% 5/22/18 302,011.33 1.62% (36.65) 10/24/17 10/26/17 200,000 912828A34 US TREASURY NOTES 1.25% 11/30/18 200,565.62 1.46% (1,350.68) 10/31/17 10/31/17 175,000 912828L99 US TREASURY NOTES 1.37% 10/31/20 173,188.48 1.73% (110.25) 11/1/17 11/3/17 150,000 3135G0YT4 FANNIE MAE GLOBAL NOTES 1.62% 11/27/18 151,248.25 1.50% (637.35) 11/6/17 11/13/17 125,000 912828A34 US TREASURY NOTES 1.25% 11/30/18 125,337.58 1.54% (911.69) 11/6/17 11/10/17 140,000 24422ETM1 JOHN DEERE CAPITAL CORP 1.65% 10/15/18 140,206.62 1.61% 94.86 11/8/17 11/10/17 175,000 912828XM7 US TREASURY NOTES 1.62% 7/31/20 175,302.86 1.73% (516.35) 11/9/17 11/14/17 520,000 912828XM7 US TREASURY NOTES 1.62% 7/31/20 521,073.03 1.72% (1,650.86) 11/13/17 11/16/17 350,000 912828F62 US TREASURY NOTES 1.50% 10/31/19 348,974.23 1.69% (1,257.81) 11/16/17 11/17/17 175,000 3135G0YT4 FANNIE MAE GLOBAL NOTES 1.62% 11/27/18 176,351.63 1.62% (923.81) 11/16/17 11/17/17 700,000 78009NZZ2 ROYAL BANK OF CANADA NY CD 1.70% 3/9/18 702,583.84 1.53% 336.06 11/16/17 11/20/17 350,000 912828ST8 US TREASURY NOTES 1.25% 4/30/19 348,231.94 1.65% (1,091.88) 12/1/17 12/5/17 1,250,000 3130A57L7 FHLB NOTES 1.05% 9/7/18 1,247,533.33 1.66% (4,860.84)
Total SELL 5,680,000 5,688,892.04 -13,382.54
PFM Asset Management LLC 29 21 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Activity
CAMP Pool Transactions
Trade Settle Dollar Share or Share Transaction Description Date Date Amount Unit Price Amount
10/10/17 10/10/17 Redemption - ACH Redemption $(5,000,000.00) 1.00 (5,000,000.000)
10/19/17 10/19/17 Redemption - ACH Redemption $(2,000,000.00) 1.00 (2,000,000.000)
10/30/17 10/30/17 Redemption - ACH Redemption $(1,400,000.00) 1.00 (1,400,000.000)
10/31/17 11/01/17 Accrual Income Div Reinvestment - Distributions $43,030.80 1.00 43,030.800
11/01/17 11/01/17 Redemption - ACH Redemption $(3,000,000.00) 1.00 (3,000,000.000)
11/13/17 11/13/17 Redemption - ACH Redemption $(3,000,000.00) 1.00 (3,000,000.000)
11/22/17 11/22/17 Redemption - ACH Redemption $(3,500,000.00) 1.00 (3,500,000.000)
11/30/17 12/01/17 Accrual Income Div Reinvestment - Distributions $33,147.64 1.00 33,147.640
12/01/17 12/01/17 Redemption - ACH Redemption $(2,500,000.00) 1.00 (2,500,000.000)
12/13/17 12/13/17 Redemption - ACH Redemption $(3,200,000.00) 1.00 (3,200,000.000)
12/21/17 12/21/17 Purchase - ACH Purchase $30,000,000.00 1.00 30,000,000.000
12/22/17 12/22/17 Redemption - ACH Redemption $(5,058,508.74) 1.00 (5,058,508.740)
12/27/17 12/27/17 Purchase - ACH Purchase $6,000,000.00 1.00 6,000,000.000
12/28/17 12/28/17 Purchase - ACH Purchase $1,800,000.00 1.00 1,800,000.000
12/29/17 01/02/18 Accrual Income Div Reinvestment - Distributions $39,815.52 1.00 39,815.520
TOTALS $9,257,485.22 9,257,485.220
PFM Asset Management LLC 30 22 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Composition
Sector/Issuer Distribution
As of December 31, 2017
Sector / Issuer Market Value ($) % of Sector % of Total Portfolio
Certificate of Deposit
BANK OF MONTREAL 1,501,856 11.7% 1.0%
BANK OF NOVA SCOTIA 1,494,570 11.7% 1.0%
CANADIAN IMPERIAL BANK OF COMMERCE 1,496,834 11.7% 1.0%
MITSUBISHI UFJ FINANCIAL GROUP INC 870,906 6.8% 0.6%
NORDEA BANK AB 700,434 5.5% 0.5%
SKANDINAVISKA ENSKILDA BANKEN AB 1,505,418 11.8% 1.0%
SUMITOMO MITSUI FINANCIAL GROUP INC 1,498,974 11.7% 1.0%
SVENSKA HANDELSBANKEN AB 1,493,369 11.7% 1.0%
SWEDBANK AB 870,273 6.8% 0.6%
WESTPAC BANKING CORP 1,367,726 10.7% 0.9%
Sector Total 12,800,359 100.0% 8.4%
Corporate
AMERICAN EXPRESS CO 907,759 4.7% 0.6%
AMERICAN HONDA FINANCE 865,670 4.5% 0.6%
APPLE INC 866,008 4.5% 0.6%
BANK OF AMERICA CO 872,533 4.5% 0.6%
BB&T CORPORATION 856,817 4.4% 0.6%
BERKSHIRE HATHAWAY INC 49,838 0.3% - %
CATERPILLAR INC 573,229 3.0% 0.4%
PFM Asset Management LLC 31 23 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Composition
Sector / Issuer Market Value ($) % of Sector % of Total Portfolio
CITIGROUP INC 876,003 4.5% 0.6%
DEERE & COMPANY 463,605 2.4% 0.3%
GENERAL ELECTRIC CO 797,722 4.1% 0.5%
GOLDMAN SACHS GROUP INC 873,880 4.5% 0.6%
HOME DEPOT INC 352,177 1.8% 0.2%
HONEYWELL INTERNATIONAL 238,731 1.2% 0.2%
INTEL CORPORATION 398,163 2.1% 0.3%
INTERNATIONAL BUSINESS MACHINES 665,477 3.4% 0.4%
JOHNSON & JOHNSON 184,124 1.0% 0.1%
JP MORGAN CHASE & CO 749,498 3.9% 0.5%
MICROSOFT CORP 585,860 3.0% 0.4%
MORGAN STANLEY 376,693 1.9% 0.2%
ORACLE CORP 1,004,521 5.2% 0.7%
PACCAR FINANCIAL CORP 243,135 1.3% 0.2%
PEPSICO INC 496,447 2.6% 0.3%
PFIZER INC 347,238 1.8% 0.2%
THE WALT DISNEY CORPORATION 988,022 5.1% 0.6%
TOYOTA MOTOR CORP 1,439,862 7.4% 0.9%
UNILEVER PLC 173,711 0.9% 0.1%
UNITED PARCEL SERVICE INC 517,250 2.7% 0.3%
VISA INC 199,842 1.0% 0.1%
WAL-MART STORES INC 403,561 2.1% 0.3%
WELLS FARGO & COMPANY 1,959,798 10.1% 1.3%
Sector Total 19,327,176 100.0% 12.6%
PFM Asset Management LLC 32 24 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Composition
Sector / Issuer Market Value ($) % of Sector % of Total Portfolio
Federal Agency/CMO
FANNIE MAE 369,563 100.0% 0.2%
Sector Total 369,563 100.0% 0.2%
Federal Agency/GSE
FANNIE MAE 7,245,381 36.4% 4.7%
FEDERAL FARM CREDIT BANKS 4,354,261 21.9% 2.8%
FEDERAL HOME LOAN BANKS 4,318,310 21.7% 2.8%
FREDDIE MAC 4,006,513 20.1% 2.6%
Sector Total 19,924,464 100.0% 13.0%
Mny Mkt Fund / Pool
CAMP POOL 57,104,049 100.0% 37.3%
Sector Total 57,104,049 100.0% 37.3%
Municipal
STATE OF CONNECTICUT 374,106 27.2% 0.2%
STATE OF GEORGIA 999,860 72.8% 0.7%
Sector Total 1,373,966 100.0% 0.9%
Supra-Sov / Supra-Natl Agency
INTER-AMERICAN DEVELOPMENT BANK 1,254,444 40.2% 0.8%
INTL BANK OF RECONSTRUCTION AND DEV 1,867,065 59.8% 1.2%
PFM Asset Management LLC 33 25 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Portfolio Composition
Sector / Issuer Market Value ($) % of Sector % of Total Portfolio
Sector Total 3,121,510 100.0% 2.0%
U.S. Treasury
UNITED STATES TREASURY 39,265,793 100.0% 25.6%
Sector Total 39,265,793 100.0% 25.6%
Portfolio Total 153,286,880 100.0% 100.0%
PFM Asset Management LLC 34 26 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT
Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note
US TREASURY NOTES 912828A34 700,000.00 AA+ Aaa 05/03/16 05/06/16 707,382.81 0.83 769.23 702,639.91 696,581.90 DTD 12/02/2013 1.250% 11/30/2018
US TREASURY NOTES 912828A75 1,200,000.00 AA+ Aaa 12/01/15 12/04/15 1,210,171.87 1.22 49.72 1,203,343.33 1,196,203.20 DTD 12/31/2013 1.500% 12/31/2018
US TREASURY NOTES 912828A75 2,000,000.00 AA+ Aaa 12/19/16 12/22/16 2,009,062.50 1.27 82.87 2,004,494.28 1,993,672.00 DTD 12/31/2013 1.500% 12/31/2018
US TREASURY NOTES 912828B33 2,025,000.00 AA+ Aaa 01/03/17 01/05/17 2,035,045.90 1.26 12,711.28 2,030,281.56 2,017,564.20 DTD 01/31/2014 1.500% 01/31/2019
US TREASURY NOTES 912828C65 1,170,000.00 AA+ Aaa 03/02/16 03/04/16 1,190,292.19 1.05 4,857.59 1,178,293.78 1,166,571.90 DTD 03/31/2014 1.625% 03/31/2019
US TREASURY NOTES 912828D23 795,000.00 AA+ Aaa 06/27/16 06/29/16 815,620.31 0.70 2,212.60 804,708.45 792,546.63 DTD 04/30/2014 1.625% 04/30/2019
US TREASURY NOTES 912828D23 855,000.00 AA+ Aaa 11/10/16 11/14/16 866,689.45 1.06 2,379.59 861,347.56 852,361.47 DTD 04/30/2014 1.625% 04/30/2019
US TREASURY NOTES 912828D23 2,000,000.00 AA+ Aaa 12/19/16 12/22/16 2,010,937.50 1.39 5,566.30 2,006,216.10 1,993,828.00 DTD 04/30/2014 1.625% 04/30/2019
US TREASURY NOTES 912828ST8 2,150,000.00 AA+ Aaa 10/04/17 10/05/17 2,143,869.14 1.43 4,602.90 2,144,811.02 2,132,950.50 DTD 04/30/2012 1.250% 04/30/2019
US TREASURY NOTES 912828WW6 1,300,000.00 AA+ Aaa 01/03/17 01/05/17 1,308,125.00 1.38 8,840.35 1,305,034.54 1,295,226.40 DTD 07/31/2014 1.625% 07/31/2019
US TREASURY NOTES 912828F62 1,700,000.00 AA+ Aaa 10/03/17 10/03/17 1,700,000.00 1.50 4,367.40 1,700,000.00 1,688,312.50 DTD 10/31/2014 1.500% 10/31/2019
US TREASURY NOTES 912828G61 1,800,000.00 AA+ Aaa 12/01/16 12/05/16 1,802,812.50 1.45 2,373.63 1,801,815.34 1,786,991.40 DTD 12/01/2014 1.500% 11/30/2019
US TREASURY NOTES 912828G95 3,750,000.00 AA+ Aaa 12/14/17 12/15/17 3,734,472.66 1.83 168.34 3,734,828.55 3,730,372.50 DTD 12/31/2014 1.625% 12/31/2019
US TREASURY NOTES 912828J50 275,000.00 AA+ Aaa 03/08/17 03/13/17 272,690.43 1.67 1,284.79 273,306.66 271,895.53 DTD 03/02/2015 1.375% 02/29/2020
35 27 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note
US TREASURY NOTES 912828J50 575,000.00 AA+ Aaa 02/01/17 02/03/17 571,518.55 1.58 2,686.38 572,533.87 568,508.83 DTD 03/02/2015 1.375% 02/29/2020
US TREASURY NOTES 912828J50 1,725,000.00 AA+ Aaa 08/31/17 09/01/17 1,724,932.62 1.38 8,059.13 1,724,941.71 1,705,526.48 DTD 03/02/2015 1.375% 02/29/2020
US TREASURY NOTES 912828J84 2,500,000.00 AA+ Aaa 10/02/17 10/02/17 2,487,890.63 1.57 8,782.62 2,489,085.58 2,470,702.50 DTD 03/31/2015 1.375% 03/31/2020
US TREASURY NOTES 912828K58 900,000.00 AA+ Aaa 04/07/17 04/10/17 895,359.38 1.55 2,119.48 896,445.60 888,855.30 DTD 04/30/2015 1.375% 04/30/2020
US TREASURY NOTES 912828K58 1,200,000.00 AA+ Aaa 04/03/17 04/05/17 1,194,609.38 1.53 2,825.97 1,195,890.41 1,185,140.40 DTD 04/30/2015 1.375% 04/30/2020
US TREASURY NOTES 912828K58 3,750,000.00 AA+ Aaa 12/14/17 12/15/17 3,707,666.02 1.86 8,831.15 3,708,489.79 3,703,563.75 DTD 04/30/2015 1.375% 04/30/2020
US TREASURY NOTES 912828XH8 2,600,000.00 AA+ Aaa 06/26/17 06/28/17 2,609,343.75 1.50 116.71 2,607,793.63 2,580,804.20 DTD 06/30/2015 1.625% 06/30/2020
US TREASURY NOTES 912828XM7 730,000.00 AA+ Aaa 07/05/17 07/07/17 730,456.25 1.60 4,964.20 730,387.86 724,382.65 DTD 07/31/2015 1.625% 07/31/2020
US TREASURY N/B 912828N48 1,350,000.00 AA+ Aaa 12/01/17 12/05/17 1,343,566.41 1.91 65.26 1,343,722.57 1,340,613.45 DTD 12/31/2015 1.750% 12/31/2020
US TREASURY N/B 912828N48 2,500,000.00 AA+ Aaa 12/14/17 12/15/17 2,486,132.81 1.94 120.86 2,486,345.80 2,482,617.50 DTD 12/31/2015 1.750% 12/31/2020
Security Type Sub-Total 39,550,000.00 39,558,648.06 1.51 88,838.35 39,506,757.90 39,265,793.19
Supra-National Agency Bond / Note
INTER-AMERICAN DEVELOPMENT BANK 458182DX7 490,000.00 AAA Aaa 04/05/16 04/12/16 488,530.00 1.10 653.33 489,342.58 483,793.66 DTD 04/12/2016 1.000% 05/13/2019
INTL BANK OF RECON AND DEV SN NOTE 459058FK4 350,000.00 AAA Aaa 07/06/16 07/13/16 349,926.50 0.88 1,156.94 349,960.89 343,817.60 DTD 07/13/2016 0.875% 08/15/2019
36 28 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Supra-National Agency Bond / Note
INTL BANK OF RECON AND DEV GLOBAL 459058FS7 375,000.00 AAA Aaa 08/28/17 08/30/17 371,718.75 1.52 398.44 372,205.77 368,741.63 NOTES DTD 10/27/2016 1.125% 11/27/2019
INTL BANK OF RECON AND DEV GLOBAL 459058FS7 400,000.00 AAA Aaa 08/28/17 08/30/17 396,588.00 1.51 425.00 397,094.51 393,324.40 NOTES DTD 10/27/2016 1.125% 11/27/2019
INTL BANK OF RECONSTRUCTION AND DEV 45905UP32 775,000.00 AAA Aaa 09/12/17 09/19/17 773,140.00 1.64 3,427.70 773,312.76 761,181.75 NOTE DTD 09/19/2017 1.561% 09/12/2020
INTER-AMERICAN DEVELOPMENT BANK 4581X0CD8 770,000.00 AAA Aaa 10/02/17 10/10/17 777,137.21 1.81 2,363.47 776,632.84 770,650.65 DTD 11/08/2013 2.125% 11/09/2020
Security Type Sub-Total 3,160,000.00 3,157,040.46 1.49 8,424.88 3,158,549.35 3,121,509.69
Municipal Bond / Note
GA ST TXBL GO BONDS 373384T55 1,000,000.00 AAA Aaa 06/18/14 07/10/14 1,000,000.00 1.38 5,750.00 1,000,000.00 999,860.00 DTD 07/10/2014 1.380% 02/01/2018
CT ST TXBL GO BONDS 20772J3D2 380,000.00 A+ A1 08/03/16 08/17/16 380,820.80 1.23 1,866.22 380,448.27 374,106.20 DTD 08/17/2016 1.300% 08/15/2019
Security Type Sub-Total 1,380,000.00 1,380,820.80 1.34 7,616.22 1,380,448.27 1,373,966.20
Federal Agency Collateralized Mortgage Obligation
FNMA SERIES 2015-M7 ASQ2 3136ANJY4 60,281.11 AA+ Aaa 04/15/15 04/30/15 60,883.71 0.83 77.86 60,281.11 60,202.75 DTD 04/01/2015 1.550% 04/01/2018
FNMA SERIES 2015-M15 ASQ2 3136AQSW1 54,074.08 AA+ Aaa 11/06/15 11/30/15 54,614.82 1.20 85.53 54,187.25 54,024.20 DTD 11/01/2015 1.898% 01/01/2019
FNMA SERIES 2016-M9 ASQ2 3136ASPX8 96,719.02 AA+ Aaa 06/09/16 06/30/16 97,686.16 1.05 143.87 97,105.02 96,534.23 DTD 06/01/2016 1.785% 06/01/2019
FANNIE MAE SERIES 2015-M13 ASQ2 3136AQDQ0 159,332.67 AA+ Aaa 10/07/15 10/30/15 160,928.22 1.08 218.55 159,895.67 158,802.00 DTD 10/01/2015 1.646% 09/01/2019
37 29 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Security Type Sub-Total 370,406.88 374,112.91 1.05 525.81 371,469.05 369,563.18
Federal Agency Bond / Note
FANNIE MAE GLOBAL NOTES 3135G0YT4 1,025,000.00 AA+ Aaa 09/23/15 09/28/15 1,041,615.25 1.10 1,573.09 1,029,815.06 1,023,382.55 DTD 10/01/2013 1.625% 11/27/2018
FNMA BENCHMARK NOTE 3135G0J53 600,000.00 AA+ Aaa 05/26/16 05/31/16 598,818.00 1.07 2,083.33 599,498.75 594,328.20 DTD 02/23/2016 1.000% 02/26/2019
FNMA BENCHMARK NOTE 3135G0J53 875,000.00 AA+ Aaa 02/19/16 02/23/16 872,935.00 1.08 3,038.19 874,200.91 866,728.63 DTD 02/23/2016 1.000% 02/26/2019
FHLB NOTES 3130AAXX1 1,050,000.00 AA+ Aaa 03/09/17 03/13/17 1,047,620.70 1.49 4,130.73 1,048,557.47 1,043,926.80 DTD 03/10/2017 1.375% 03/18/2019
FREDDIE MAC NOTES 3137EADZ9 75,000.00 AA+ Aaa 08/12/16 08/15/16 75,463.50 0.89 178.13 75,225.45 74,313.53 DTD 03/21/2016 1.125% 04/15/2019
FREDDIE MAC NOTES 3137EADZ9 800,000.00 AA+ Aaa 05/26/16 05/31/16 800,616.00 1.10 1,900.00 800,279.81 792,677.60 DTD 03/21/2016 1.125% 04/15/2019
FHLMC NOTES (CALLABLE) 3134G9LD7 1,150,000.00 AA+ Aaa 05/13/16 05/24/16 1,150,000.00 1.25 1,477.43 1,150,000.00 1,139,853.55 DTD 05/24/2016 1.250% 05/24/2019
FFCB NOTES 3133ECUV4 1,000,000.00 AA+ Aaa 05/14/15 05/15/15 1,027,570.00 1.47 9,794.44 1,010,404.42 1,002,816.00 DTD 07/17/2013 2.150% 07/17/2019
FHLMC REFERENCE NOTE 3137EAEB1 875,000.00 AA+ Aaa 07/19/16 07/20/16 872,882.50 0.96 3,445.31 873,897.43 861,318.50 DTD 07/20/2016 0.875% 07/19/2019
FNMA NOTES (CALLABLE) 3136G3K87 1,000,000.00 AA+ Aaa 07/19/16 07/25/16 999,330.00 1.20 5,113.33 999,647.14 983,573.00 DTD 07/25/2016 1.180% 07/25/2019
FNMA BENCHMARK NOTE 3135G0N33 575,000.00 AA+ Aaa 07/29/16 08/02/16 574,034.00 0.93 2,082.38 574,485.97 565,784.48 DTD 08/02/2016 0.875% 08/02/2019
FNMA NOTES 3135G0P49 275,000.00 AA+ Aaa 08/31/16 09/02/16 274,571.00 1.05 939.58 274,760.31 270,943.48 DTD 09/02/2016 1.000% 08/28/2019
FNMA NOTES 3135G0P49 600,000.00 AA+ Aaa 10/03/16 10/05/16 599,640.00 1.02 2,050.00 599,793.24 591,149.40 DTD 09/02/2016 1.000% 08/28/2019
FHLB GLOBAL NOTES 3130A9EP2 550,000.00 AA+ Aaa 10/03/16 10/05/16 549,807.50 1.01 1,451.39 549,887.17 541,574.00 DTD 09/09/2016 1.000% 09/26/2019
38 30 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond / Note
FHLMC NOTES (EX-CALLABLE) 3134G8PD5 1,150,000.00 AA+ Aaa 03/21/16 03/30/16 1,150,000.00 1.35 3,924.38 1,150,000.00 1,138,349.35 DTD 03/30/2016 1.350% 09/30/2019
FEDERAL HOME LOAN BANK NOTES 3130ACM92 1,750,000.00 AA+ Aaa 10/12/17 10/13/17 1,746,902.50 1.59 5,687.50 1,747,231.19 1,737,235.50 DTD 10/13/2017 1.500% 10/21/2019
FFCB NOTES (CALLABLE) 3133EFKY2 1,300,000.00 AA+ Aaa 10/19/15 10/28/15 1,297,959.00 1.40 3,094.00 1,299,054.85 1,286,135.50 DTD 10/28/2015 1.360% 10/28/2019
FFCB NOTES (CALLABLE) 3133EFZT7 1,000,000.00 AA+ Aaa 02/11/16 02/24/16 1,000,000.00 1.40 4,938.89 1,000,000.00 986,306.00 DTD 02/24/2016 1.400% 02/24/2020
FNMA NOTES 3135G0T29 630,000.00 AA+ Aaa 02/24/17 02/28/17 629,596.80 1.52 3,228.75 629,708.13 623,462.49 DTD 02/28/2017 1.500% 02/28/2020
FHLB NOTES 313378J77 1,000,000.00 AA+ Aaa 05/09/16 05/10/16 1,027,970.00 1.13 5,625.00 1,016,166.21 995,574.00 DTD 03/02/2012 1.875% 03/13/2020
FNMA NOTES 3135G0T60 750,000.00 AA+ Aaa 08/31/17 09/01/17 750,195.00 1.49 4,687.50 750,175.04 740,722.50 DTD 08/01/2017 1.500% 07/30/2020
FFCB NOTES (CALLABLE) 3133EGPP4 1,100,000.00 AA+ Aaa 08/04/16 08/05/16 1,100,055.00 1.36 6,150.22 1,100,000.00 1,079,003.20 DTD 08/03/2016 1.360% 08/03/2020
FNMA BENCHMARK NOTE 3135G0F73 1,000,000.00 AA+ Aaa 09/15/16 09/16/16 1,011,560.00 1.22 1,291.67 1,008,075.35 985,306.00 DTD 10/19/2015 1.500% 11/30/2020
Security Type Sub-Total 20,130,000.00 20,199,141.75 1.27 77,885.24 20,160,863.90 19,924,464.26
Corporate Note
THE WALT DISNEY CORPORATION 25468PDH6 100,000.00 A+ A2 01/05/16 01/08/16 99,866.00 1.70 792.92 99,953.71 99,702.90 DTD 01/08/2016 1.650% 01/08/2019
TOYOTA MOTOR CREDIT CORP 89236TCU7 445,000.00 AA- Aa3 02/16/16 02/19/16 444,946.60 1.70 2,773.83 444,979.52 443,018.86 DTD 02/19/2016 1.700% 02/19/2019
BERKSHIRE HATHAWAY INC NOTES 084664CG4 50,000.00 AA Aa2 03/08/16 03/15/16 49,962.00 1.73 250.28 49,984.50 49,838.30 DTD 03/15/2016 1.700% 03/15/2019
39 31 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note
WELLS FARGO & COMPANY CORP NOTE 94974BFU9 350,000.00 A A2 03/10/16 03/15/16 351,431.50 1.99 1,425.52 350,615.36 349,945.05 DTD 04/22/2014 2.125% 04/22/2019
GOLDMAN SACHS GRP INC CORP NT 38141GVT8 45,000.00 BBB+ A3 04/20/16 04/25/16 44,874.90 2.10 165.00 44,944.16 44,864.33 (CALLABLE) DTD 04/25/2016 2.000% 04/25/2019
GOLDMAN SACHS GRP INC CORP NT 38141GVT8 300,000.00 BBB+ A3 04/21/16 04/26/16 299,808.00 2.02 1,100.00 299,914.30 299,095.50 (CALLABLE) DTD 04/25/2016 2.000% 04/25/2019
PEPSICO INC CORP NOTE 713448DR6 375,000.00 A+ A1 04/27/17 05/02/17 374,718.75 1.59 952.60 374,811.18 372,933.75 DTD 05/02/2017 1.550% 05/02/2019
PFIZER INC CORP NOTES 717081DU4 350,000.00 AA A1 05/31/16 06/03/16 349,601.00 1.49 394.72 349,808.66 347,238.15 DTD 06/03/2016 1.450% 06/03/2019
CITIGROUP INC CORP NOTES 172967KS9 135,000.00 BBB+ Baa1 06/02/16 06/09/16 134,929.80 2.07 184.50 134,965.83 134,608.37 DTD 06/09/2016 2.050% 06/07/2019
APPLE INC CORP NOTES 037833CB4 350,000.00 AA+ Aa1 07/28/16 08/04/16 349,650.00 1.13 1,572.08 349,813.19 345,185.75 DTD 08/04/2016 1.100% 08/02/2019
MICROSOFT CORP NOTES 594918BN3 230,000.00 AAA Aaa 08/01/16 08/08/16 229,763.10 1.14 1,004.97 229,872.45 226,924.44 DTD 08/08/2016 1.100% 08/08/2019
IBM CREDIT CORP NOTE 44932HAA1 670,000.00 A+ A1 09/05/17 09/08/17 669,490.80 1.66 3,417.47 669,569.83 665,476.83 DTD 09/08/2017 1.625% 09/06/2019
PEPSICO, INC CORP NOTES 713448DJ4 125,000.00 A+ A1 10/03/16 10/06/16 124,981.25 1.36 407.81 124,988.88 123,513.00 DTD 10/06/2016 1.350% 10/04/2019
ORACLE CORP NOTE 68389XAX3 1,000,000.00 AA- A1 04/14/16 04/15/16 1,031,570.00 1.32 5,187.50 1,016,227.04 1,004,521.00 DTD 07/08/2014 2.250% 10/08/2019
WAL-MART STORES INC CORP NOTE 931142DY6 405,000.00 AA Aa2 10/11/17 10/20/17 404,991.90 1.75 1,397.81 404,992.42 403,561.44 DTD 10/20/2017 1.750% 10/09/2019
HONEYWELL INTERNATIONAL CORP NOTES 438516BQ8 240,000.00 A A2 10/23/17 10/30/17 239,812.80 1.84 732.00 239,828.44 238,731.36 DTD 10/30/2017 1.800% 10/30/2019
40 32 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note
AMERICAN EXPRESS CREDIT (CALLABLE) 0258M0EC9 400,000.00 A- A2 01/31/17 02/03/17 396,960.00 1.99 1,152.22 397,955.47 395,871.20 CORP DTD 10/31/2016 1.700% 10/30/2019
AMERICAN HONDA FINANCE 02665WBZ3 350,000.00 A+ A2 11/13/17 11/16/17 349,804.00 2.03 875.00 349,816.06 348,801.60 DTD 11/16/2017 2.000% 11/13/2019
GENERAL ELEC CAP CORP GLOBAL NOTES 36962G6P4 800,000.00 A A1 08/23/16 08/26/16 825,288.00 1.12 933.33 815,052.55 797,721.60 DTD 12/12/2012 2.100% 12/11/2019
GOLDMAN SACHS GROUP (CALLABLE) INC 38145GAJ9 400,000.00 BBB+ A3 12/19/16 12/22/16 398,448.00 2.44 460.00 398,971.16 399,743.20 BONDS DTD 12/13/2016 2.300% 12/13/2019
CITIGROUP INC (CALLABLE) CORP NOTE 172967LF6 375,000.00 BBB+ Baa1 01/04/17 01/10/17 374,850.00 2.46 4,364.06 374,897.55 375,172.88 DTD 01/10/2017 2.450% 01/10/2020
JPMORGAN CHASE & CO (CALLABLE) 46625HKA7 750,000.00 A- A3 06/15/17 06/20/17 752,827.50 2.10 7,406.25 752,247.88 749,498.25 DTD 01/23/2015 2.250% 01/23/2020
MORGAN STANLEY CORP BONDS 61747YDW2 375,000.00 BBB+ A3 01/31/17 02/03/17 378,243.75 2.35 4,251.04 377,277.23 376,693.13 DTD 01/27/2015 2.650% 01/27/2020
MICROSOFT CORP 594918BV5 360,000.00 AAA Aaa 01/30/17 02/06/17 359,758.80 1.87 2,682.50 359,830.00 358,935.48 DTD 02/06/2017 1.850% 02/06/2020
AMERICAN HONDA FINANCE 02665WBM2 350,000.00 A+ A2 02/13/17 02/16/17 349,503.00 2.05 2,663.89 349,645.04 348,206.95 DTD 02/16/2017 2.000% 02/14/2020
AMERICAN EXPRESS CREDIT (CALLABLE) 0258M0EE5 215,000.00 A- A2 02/28/17 03/03/17 214,776.40 2.24 1,550.39 214,836.66 214,349.20 CORP DTD 03/03/2017 2.200% 03/03/2020
WALT DISNEY COMPANY CORP NOTES 25468PDP8 145,000.00 A+ A2 03/01/17 03/06/17 144,962.30 1.96 918.94 144,972.35 144,528.75 DTD 03/06/2017 1.950% 03/04/2020
TOYOTA MOTOR CORP NOTES 89236TCF0 1,000,000.00 AA- Aa3 07/08/16 07/13/16 1,031,540.00 1.27 6,509.72 1,019,090.52 996,843.00 DTD 03/12/2015 2.150% 03/12/2020
JOHN DEERE CAPITAL CORP NOTES 24422ETQ2 315,000.00 A A2 03/10/17 03/15/17 314,754.30 2.23 2,079.00 314,817.80 314,668.94 DTD 03/15/2017 2.200% 03/13/2020
41 33 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note
GOLDMAN SACHS GROUP INC CORP NOTES 38148LAA4 130,000.00 BBB+ A3 11/01/17 11/03/17 130,980.20 2.28 638.44 130,917.90 130,177.06 DTD 01/23/2015 2.600% 04/23/2020
UNILEVER CAPITAL CORP BONDS 904764AV9 175,000.00 A+ A1 05/02/17 05/05/17 174,441.75 1.91 490.00 174,561.13 173,710.95 DTD 05/05/2017 1.800% 05/05/2020
APPLE INC BONDS 037833CS7 400,000.00 AA+ Aa1 05/04/17 05/11/17 399,592.00 1.84 1,000.00 399,677.09 396,612.40 DTD 05/11/2017 1.800% 05/11/2020
INTEL CORP NOTES 458140AZ3 400,000.00 A+ A1 05/08/17 05/11/17 399,848.00 1.86 1,027.78 399,879.69 398,163.20 DTD 05/11/2017 1.850% 05/11/2020
HOME DEPOT INC CORP NOTES 437076BQ4 355,000.00 A A2 05/24/17 06/05/17 354,794.10 1.82 461.50 354,832.53 352,177.04 DTD 06/05/2017 1.800% 06/05/2020
WALT DISNEY COMPANY CORP NOTES 25468PDU7 750,000.00 A+ A2 06/01/17 06/06/17 749,130.00 1.84 975.00 749,291.58 743,790.00 DTD 06/06/2017 1.800% 06/05/2020
JOHN DEERE CAPITAL CORP NOTES 24422ETS8 150,000.00 A A2 06/19/17 06/22/17 149,908.50 1.97 73.13 149,924.13 148,936.20 DTD 06/22/2017 1.950% 06/22/2020
AMERICAN HONDA FINANCE CORP NOTES 02665WBT7 170,000.00 A+ A2 07/17/17 07/20/17 169,828.30 1.98 1,482.54 169,853.27 168,661.93 DTD 07/20/2017 1.950% 07/20/2020
WELLS FARGO & COMPANY NOTES 94974BGM6 1,600,000.00 A A2 07/08/16 07/13/16 1,660,096.00 1.63 18,373.33 1,638,651.07 1,609,852.80 DTD 07/22/2015 2.600% 07/22/2020
CATERPILLAR FINL SERVICE NOTE 14913Q2A6 580,000.00 A A3 09/05/17 09/07/17 579,512.80 1.88 3,397.83 579,562.95 573,229.08 DTD 09/07/2017 1.850% 09/04/2020
CITIGROUP INC CORP NOTES 172967KB6 115,000.00 BBB+ Baa1 10/31/17 10/31/17 116,154.60 2.30 550.24 116,091.37 115,384.91 DTD 10/26/2015 2.650% 10/26/2020
CITIGROUP INC CORP NOTES 172967KB6 250,000.00 BBB+ Baa1 09/22/17 09/26/17 252,780.00 2.27 1,196.18 252,551.40 250,836.75 DTD 10/26/2015 2.650% 10/26/2020
AMERICAN EXPRESS CO CORP (CALLABLE) 025816BP3 300,000.00 BBB+ A3 10/23/17 10/30/17 299,610.00 2.25 1,118.33 299,631.42 297,538.80 NOTE DTD 10/30/2017 2.200% 10/30/2020
JOHNSON & JOHNSON CORP NOTE 478160CH5 185,000.00 AAA Aaa 11/08/17 11/10/17 184,802.05 1.99 511.06 184,811.17 184,124.03 DTD 11/10/2017 1.950% 11/10/2020
42 34 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Corporate Note
APPLE INC 037833DJ6 125,000.00 AA+ Aa1 11/06/17 11/13/17 124,895.00 2.03 333.33 124,899.55 124,210.13 DTD 11/13/2017 2.000% 11/13/2020
PACCAR FINANCIAL CORP NOTES 69371RN85 245,000.00 A+ A1 11/06/17 11/13/17 244,977.95 2.05 669.67 244,978.91 243,134.57 DTD 11/13/2017 2.050% 11/13/2020
VISA INC (CALLABLE) CORP NOTES 92826CAB8 200,000.00 A+ A1 08/25/17 08/30/17 202,200.00 1.85 207.78 201,977.58 199,842.40 DTD 12/14/2015 2.200% 12/14/2020
BRANCH BANKING & TRUST (CALLABLE) 05531FAZ6 380,000.00 A- A2 11/16/17 11/20/17 378,024.00 2.32 1,475.14 378,090.28 376,405.20 NOTES DTD 10/26/2017 2.150% 02/01/2021
BRANCH BANKING & TRUST (CALLABLE) 05531FAZ6 485,000.00 A- A2 10/23/17 10/26/17 484,776.90 2.17 1,882.74 484,784.46 480,411.90 NOTES DTD 10/26/2017 2.150% 02/01/2021
UNITED PARCEL SERVICE CORPORATE 911312BP0 520,000.00 A+ A1 11/09/17 11/14/17 519,178.40 2.10 1,391.72 519,207.61 517,249.72 BOND DTD 11/14/2017 2.050% 04/01/2021
BANK OF AMERICA CORP (CALLABLE) 06051GGS2 100,000.00 A- A3 10/31/17 10/31/17 99,802.00 2.38 666.07 99,810.81 99,718.10 DTD 09/18/2017 2.328% 10/01/2021
BANK OF AMERICA CORP (CALLABLE) 06051GGS2 295,000.00 A- A3 09/22/17 09/26/17 294,528.00 2.37 1,964.90 294,558.85 294,168.40 DTD 09/18/2017 2.328% 10/01/2021
BANK OF AMERICA CORP (CALLABLE) 06051GGS2 480,000.00 A- A3 09/13/17 09/18/17 480,000.00 2.33 3,197.12 480,000.00 478,646.88 DTD 09/18/2017 2.328% 10/01/2021
Security Type Sub-Total 19,395,000.00 19,541,975.00 1.84 100,689.18 19,483,224.49 19,327,175.66
Certificate of Deposit
CANADIAN IMPERIAL BANK NY CD 13606A5Z7 700,000.00 A-1 P-1 12/01/16 12/05/16 699,454.00 1.78 1,060.89 699,749.22 698,522.30 DTD 12/05/2016 1.760% 11/30/2018
NORDEA BANK FINLAND NY CD 65558LWA6 700,000.00 A-1+ P-1 12/01/16 12/05/16 700,000.00 1.74 1,095.11 700,000.00 700,434.00 DTD 12/05/2016 1.760% 11/30/2018
43 35 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Certificate of Deposit
CANADIAN IMPERIAL BANK NY CD 13606A5Z7 800,000.00 A-1 P-1 04/19/17 04/21/17 801,024.00 1.25 1,212.44 800,579.92 798,311.20 DTD 12/05/2016 1.760% 11/30/2018
SVENSKA HANDELSBANKEN NY LT CD 86958JHB8 1,500,000.00 AA- Aa2 01/10/17 01/12/17 1,500,000.00 1.91 13,781.25 1,500,000.00 1,493,368.50 DTD 01/12/2017 1.890% 01/10/2019
BANK OF MONTREAL CHICAGO CERT DEPOS 06427KRC3 1,500,000.00 A+ A1 02/08/17 02/09/17 1,500,000.00 1.90 11,280.00 1,500,000.00 1,501,855.50 DTD 02/09/2017 1.880% 02/07/2019
BANK OF NOVA SCOTIA HOUSTON LT CD 06417GUE6 1,500,000.00 A+ A1 04/05/17 04/06/17 1,500,000.00 1.91 7,003.33 1,500,000.00 1,494,570.00 DTD 04/06/2017 1.910% 04/05/2019
SUMITOMO MITSUI BANK NY CD 86563YVN0 1,500,000.00 A A1 05/03/17 05/04/17 1,500,000.00 2.05 5,039.58 1,500,000.00 1,498,974.00 DTD 05/04/2017 2.050% 05/03/2019
SKANDINAV ENSKILDA BANKEN NY CD 83050FXT3 1,525,000.00 A+ Aa3 08/03/17 08/04/17 1,524,405.25 1.85 11,691.67 1,524,527.80 1,505,418.33 DTD 08/04/2017 1.840% 08/02/2019
BANK TOKYO MITSUBISHI UFJ LTD LT CD 06539RGM3 875,000.00 A+ A1 09/25/17 09/27/17 875,000.00 2.07 4,830.00 875,000.00 870,905.88 DTD 09/27/2017 2.070% 09/25/2019
WESTPAC BANKING CORP NY CD 96121T4A3 1,370,000.00 AA- Aa3 08/03/17 08/07/17 1,370,000.00 2.05 11,234.00 1,370,000.00 1,367,725.80 DTD 08/07/2017 2.050% 08/03/2020
SWEDBANK (NEW YORK) CERT DEPOS 87019U6D6 875,000.00 AA- Aa3 11/16/17 11/17/17 875,000.00 2.30 2,482.81 875,000.00 870,273.25 DTD 11/17/2017 2.270% 11/16/2020
Security Type Sub-Total 12,845,000.00 12,844,883.25 1.91 70,711.08 12,844,856.94 12,800,358.76
Managed Account Sub-Total 96,830,406.88 97,056,622.23 1.58 354,690.76 96,906,169.90 96,182,830.94
Money Market Fund
CAMP Pool 57,104,048.60 AAAm NR 57,104,048.60 0.00 57,104,048.60 57,104,048.60
Money Market Sub-Total 57,104,048.60 57,104,048.60 0.00 57,104,048.60 57,104,048.60
44 36 Managed Account Detail of Securities Held For the Month Ending December 31, 2017 EAST BAY REGIONAL PARK DISTRICT
Securities Sub-Total $153,934,455.48 $154,160,670.83 1.58% $354,690.76 $154,010,218.50 $153,286,879.54
Accrued Interest $354,690.76
Total Investments $153,641,570.30
45 37 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Appendix
IMPORTANT DISCLOSURES
This material is based on information obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some, but not all of which, are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results.The information contained in this presentation is not an offer to purchase or sell any securities. Dime à Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield based matrix system to arrive at an estimated market value.
à In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded.
à Performance is presented in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns.
à Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.
à Money market fund/cash balances are included in performance and duration computations.
à Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.
à Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.
à MBS maturities are represented by expected average life.
PFM Asset Management LLC 46 38 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Appendix
GLOSSARY
à ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made.
à AGENCIES: Federal agency securities and/or Government-sponsored enterprises.
à AMORTIZED COST: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.
à BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.
à COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
à CONTRIBUTION TO DURATION: Represents each sector or maturity range’s relative contribution to the overall duration of the portfolio measured as a percentage weighting. Since duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate sensitivity of the portfolio.
à DURATION TO WORST: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put date, whichever results in the highest yield to the investor.
à EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.
à EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while ominal yield does not.
à FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.
à INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage.
à MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.
à MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
à NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.
à PAR VALUE: The nominal dollar face amount of a security.
PFM Asset Management LLC 47 39 For the Quarter Ended December 31, 2017 EAST BAY REGIONAL PARK DISTRICT Appendix
GLOSSARY
à PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security.
à REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
à SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.
à TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.
à UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.
à U.S. TREASURY: The department of the U.S. government that issues Treasury securities.
à YIELD: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.
à YTM AT COST: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.
à YTM AT MARKET: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.
PFM Asset Management LLC 48 40 Attachment C
EAST BAY REGIONAL PARK DISTRICT INVESTMENT REPORT For Period Ending 12/31/2017
Total Cash/Investments by Type $361,736,660
Checking/Sweep $8,001,524 Money Market Funds 2% $157,306 0% CAMP $57,104,049 16% Bond Funds $135,415,216 37%
Local Agency Investment Fund (LAIF) $64,875,734 18%
Mid-term Investments $96,182,831 27%
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EAST BAY REGIONAL PARK DISTRICT BOARD FINANCE COMMITTEE AGENDA STATEMENT MEETING DATE – WEDNESDAY FEBRUARY 28, 2018
SUBJECT: 2018 Internal Audit Work Plan, and Final 2017 Internal Audit Results
Report Prepared by: David Sumner, CIA, CFE, CGFM, Audit Manager
ATTACHMENT: 2018 Internal Audit Work Plan
RECOMMENDATION: Review the information and direct staff to provide the 2018 Internal Audit Work Plan for acceptance by the Board of Directors.
INTRODUCTION:
This is the final year-end 2017 Internal Audit report. It includes both a recap of mid-year update items, as previously presented at the August 23, 2017 Board Finance Committee meeting, and the status of items subsequently completed by year-end. The topics previously presented to the Committee are shown in italics, for the Committee’s convenience. New material begins on the fourth page of this report. The presentation will also focus on the more recently completed project reports.
DESCRIPTION:
Auditing is defined as the systematic accumulation of evidence about information, to determine and report on the degree of correspondence between the information and established criteria.
The Internal Audit Unit performs an appraisal function that assists management in monitoring whether financial activities are carried out as planned, and whether established internal controls are functioning properly. The audit function alerts management of any potential issues that arise, so that preventive or remedial actions may be taken.
Internal controls represent the policies, procedures, systems, and practices that District management establishes and enforces, to ensure accomplishment of objectives and safeguarding of assets.
Internal audit staff assists management in design, implementation, and modification of internal controls through monitoring and evaluating the District’s system of internal control in conjunction with the audit of the District activities and related operations. Staff reviews financial transactions, cash handling practices, District-funded grants, concession agreements,
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contracts, Request for Proposal’s (RFPs), assists with the development of the District’s Comprehensive Annual Financial Report (CAFR), and performs other duties as assigned.
Staffing: The Internal Audit Unit is comprised of an Audit Manager and one Accountant. The unit had adequate staffing during 2017.
Projects: During the 2017 fiscal year, Internal Audit Unit staff have reviewed and approved 425 contracts, and completed 20 audit projects. A summary of those projects is as follows.
2017 Internal Audit Plan Projects’ Results
1. Review of Tilden Merry-Go-Round: On March 18, 2014, Sycamore Concession Corporation was granted a five-year concession agreement, with one five-year option period, to operate Tilden Merry-Go-Round. The concessionaire is required to pay 7% of its gross receipts as concession fee, and contribute 10% of its gross receipts to the Tilden Merry-Go-Round maintenance fund. Annually, EBRPD earns approximately $22,000 as concession fee, and receives $31,000 as contribution to maintenance fund from this concession.
We concluded that the Concessionaire’s internal control, revenue reporting procedures and record retention practices should be strengthened, since concessionaire was not fully compliant with the financial aspects of the concession agreement. Overall, their gross receipts were not properly accounted for, and concession and maintenance fees were understated and were not always remitted to the EBRPD timely.
We noted that daily sales records for 4 months out of 26 months tested were missing, occasionally concessionaire had under-reported its gross receipts and underpaid concession and maintenance fees due to the District.
We recommended improved compliance by concessionaire, and Operations Division Business Services staff has agreed to enhance their monitoring of the concessionaire’s activities and require payment of the underpaid concession and maintenance fees.
We also noted that concessionaire was not compliant with IRS mandated reporting of tips received, and recommended accurate record keeping, reporting and taxation of collected tips along with wages paid to the concessionaire’s employees.
In 6 out of 8 quarterly sales tax returns we tested, amount of gross sales and sales tax paid to the State of California Board of Equalization differed from corresponding amounts that were reported to the District. We identified variances and recommended their accurate recording and reporting. In the future, Operations Division Business Services staff will monitor this matter in their quarterly meetings with concessionaire.
Our audit report was issued on May 25, 2017. The Operations Division intends to implement audit recommendations.
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2. Review of Lake Chabot Regional Park Cash Handling Procedures: The park surrounds Lake Chabot Reservoir, that is a standby emergency drinking water supply for the East Bay Municipal Utility District, and is open year-round. The EBRPD staff collects parking, dog walking, and fishing permit fees at the main entrance kiosk during normal business hours. The park is also equipped with a Ventek machine for fee collection, and an Iron Ranger for dispensing fishing permits, which are operational when the kiosk is closed. Total park revenue was approximately $319,000 in 2014, and $289,000 in 2015.
Audit staff reviewed cash collection records for the period January 1, 2014 through March 31, 2016, performed a surprise cash count, interviewed cashiers and observed their safekeeping practices to assess safeguarding of assets, functionality of controls, and compliance with the District policies and procedures.
We noted that kiosk attendants were processing refunds without preparing a Paid Out/ Refund/ Overring Voucher and obtaining customer’s signature. In our tests, we noted 26 instances(days) that cash refunds to park patrons were made without independently verifiable and adequate documentation.
We also noted that kiosk attendants could generate more than one duplicate copy of the receipts, using Point of Sales (POS) cash register that the kiosk is equipped with. This provides kiosk attendants an opportunity for potential diversion of cash collected to unauthorized purposes without immediate detection by management.
We concluded that internal controls were functional, and daily collections were properly accounted for. However, enhanced compliance with the District financial policies and procedures, and improved documentation of refunds were deemed necessary, to preclude potential diversion of the collected funds for unintended purposes. We shared our observations, findings and recommendations for enhanced monitoring of cash handling activities and safeguarding of assets with the Operations Division management, and they have agreed to implement them. Our audit report was issued on June 29, 2017.
3. Review of Capital Improvement Project No. 152600 Shadow Cliffs Solar Panels installation: The District’s Sustainability Policy which was approved on April 21, 2009 which, among other things, promotes conservation of energy and natural resources. The District also compiled Green Building Guidelines to facilitate compliance with waste reduction regulations, and achieve energy conservation. The Guidelines recommend use of renewable and solar energy and installation of photo voltaic panels, to lead the District toward carbon-neutrality. On September 17, 2013, the Board commissioned preparation of the District-wide Strategic Energy Plan that eventually led to awarding a $5,943,262 contract to Borego Solar Systems, Inc. for design, construction, operation, and maintenance of the photovoltaic solar energy system at Shadow Cliffs Regional Park. The project was substantially completed by December 31, 2016, enabling the District to generate electricity to offset energy use.
The audit examined financial records of the solar panel installation project from inception to February 28, 2017, to assess functionality of internal controls, compliance with administrative requirement, and propriety of accounting transactions.
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We concluded that internal controls were functional, administrative requirements were complied with, and accounting transactions were property recorded. The audit report discussion draft was issued on July 12, 2017.
4. Review of Outback Adventures Concessionaire at Del Valle: Outback Adventures provides watersports, kayak and paddleboard rental and lessons, bikes, badminton, horseshoe, and Bocce Ball sets for rental on hourly basis at Del Valle Regional Park, and is open for business from April 1 through October 31. It pays 2% of its gross receipts as concession fee, and contributes 5% of its gross receipts to a maintenance fund during its first two-year term. The concession fee will increase to 5% in the second two-year term of this agreement. Outback Adventures paid approximately $4,700 in concession fees, and contributed $11,000 to the maintenance fund during 2015.
The audit examined concessionaire’s compliance with the financial aspects of the concession agreement for the period March 31, 2015 through July 31, 2016. We verified propriety and timeliness of concession and maintenance fees paid, and assessed reliability of internal controls and adequacy of records retained supporting revenue- generating activities of the concessionaire.
We concluded that the concessionaire had a functional system of internal control, and retained reliable records. Overall, their gross revenue was properly accounted for, and concession and maintenance fees were timely remitted.
We noted that concessionaire had overpaid $10,707.33 in concession fees in 2016, due to misinterpreting wordings of the concession agreement. Per section 2 of the concession agreement, initial term is March 1, 2015 through October 31, 2017, and if the concessionaire is not in default he may request a two-year renewal of the initial term, beginning on April 1, 2018 and ending on October 31, 2019. Concession fee payable is subject to increase from 2% to 5% for on April 1, 2018 which is beginning of the second term, but concessionaire started paying at higher rate (i.e., 5%) at the beginning of the second year, and the error was not detected by District staff. We suggested that Operations Division staff notify concessionaire to correct their calculations, and either refund or apply the overpaid amount against the future fees payable to the District, with the concessionaire’s consent. We also shared our observations with District staff to be considered for improving oversight and control, when the current concession agreement comes up for renewal.
The audit report with management response was issued on September 27, 2017. The Operations Division intends to implement audit recommendations as soon as practical.
5. Review of Del Valle Marina and Camp Stores: Rocky Mountain Recreation Co. operates the Del Valle Regional Park concession, that is comprised of a marina, campground store, and two sank stands. Current concession agreement runs through
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October 3, 2019, and has an additional seven-year extension option. The concessionaire rents boats, operates a tour boat, sells food and beverages, fishing permits and supplies and other merchandise to park visitors throughout the year. Initially, the concessionaire was required to pay the District, on an upward sliding scale from 4% to 5% of gross rental receipts, and 3% of gross food and merchandise receipts, as concession fee and contribute 7% of gross rental and 4% of gross food and merchandise receipts to the maintenance fund. Pursuant to the October 4, 2014 agreement, concession fee rate was reduced to range between 2% to 3% and maintenance fee was increased to range between 7% to 14%. The concessionaire paid approximately $45,000 in concession fee to the District in 2016.
The audit examined concessionaire’s compliance with the financial aspects of the concession agreement for the period January 1, 2015 through December 31, 2016. We verified propriety and timeliness of concession fees paid, and assessed reliability of internal controls and adequacy of records retained supporting revenue-generating activities of the concessionaire.
We concluded that internal controls were functional, and the concessionaire was generally compliant with the concession agreement financial requirements, but they should improve their accounting and revenue reporting practices, and District staff should enhance their oversight.
We noted that a portion of the concessionaire’s gross receipts pertaining to boat rental was misclassified, and gross receipts pertaining to merchandise and food under reported, and occasionally miscoded, and applicable concession and maintenance fees were underpaid to District. We recommended that Operations Division staff notify Rocky Mountain Recreation Co. about deficiencies, and pursue collection of $101.01 in unpaid fees.
Concessionaire’s remittances were late 8 months out of 24 months tested, and applicable 10% late charge was neither assessed nor collected by District. We calculated $1,497.65 unpaid late charge is due to the District, and recommended that Operations staff more actively monitor concessionaire’s monthly fee payments, and assess and collect late charge when applicable.
The new rates set for concession and maintenance fees payable to the District, were not applied timely. Consequently, concessionaire had overpaid concession fees and underpaid maintenance fees. Cumulatively net amount of $2,546.28 remains due to the District. We recommended collection of underpaid amount and proper reclassification of fees that were already received.
We had audited this concession for the first time in 2010. Our review of the status of our prior audit recommendations, denoted that most of our prior audit recommendations were properly implemented.
The audit report discussion draft was issued on November 3, 2017.
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6. Review of Mudpuppy’s Tub & Scrub, and Sit & Stay Café Concessions: Jobetty, LLC operates two popular concessions at Point Isabel Regional Shoreline, Mudpuppy’s Tub & Scrub (a dog bathing facility, and retail shop selling dog related toys and supplies) and Sit and Stay Café, (which serves treats, coffee and hot and cold beverages to park visitors). Currently, Jobetty, LLC pays 5% of their gross receipts as concession fee for both business, and contributes 5% of Tub & Scrub, and 2% of Sit & Stay Café gross receipts to fund newly established maintenance fund. Jobetty, LLC pays approximately $103,000 a year as concession and maintenance fees to the District.
Audit objectives were to assess functionality of controls, verify concessionaire’s compliance with the financial aspects of concession agreement, and evaluate propriety and timeliness of concession and maintenance fees paid.
The audit examined concessionaire’s compliance with financial aspects of the concession agreement for the period January 1, 2015 through December 31, 2016. We verified propriety and timeliness of concession fees paid, and assessed reliability of internal controls and adequacy of records retained supporting revenue-generating activities of the concessionaire.
We concluded that internal controls were functional, and the concessionaire was generally compliant with financial aspects of the Concession Agreement.
Any installment of concession fee not received by District when due is subject to a 10% late charge. We noted that Jobetty, Inc. had underpaid January 2015 concession and maintenance fees by $754.79, and in June 10, 2015 had rectified the problem by remitting the underpaid amount. District staff neither assessed nor collected $53.92 applicable late charge that was due. We recommended enforcement of the concession agreement requirements, and collection of late charges whenever applicable.
Jobetty, LLC operates four different EBRPD facilities located at Contra Loma, Lake Anza, and Point Pinole. It used to mail a check to District for the lump sum amount of concession and maintenance fees for those facilities, showing a breakdown of the fees paid by location on the pay stub. Finance Department Accounts Receivable Clerk is tasked with proper allocation and recording of the amounts received monthly. We noted that concessionaire’s payment dated October 26, 2015 for $600.39 pertaining to Lake Anza Beach Café was erroneously allocated and recorded as concession and maintenance fee payment for Sit & Stay Café. This clerical error was not detected during year-end review of the concessionaire’s transactions by Finance Dept. staff. We recommended that staff enhance their due diligence in recording of the fees received.
In 2008, we had audited this concession for the first time. Our review of the status of our prior audit recommendations denoted that most of the prior audit recommendations were properly implemented.
The audit report discussion draft was issued on December 6, 2017.
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2017 District Grant Audit Results
Review of Measure WW Local Grants: During the year, the following 12 pre- approved projects funded by Measure WW local grants program were reported to have been completed, and the grantee-provided records of those projects were subjected to an audit to ensure compliance with the EBRPD requirements and satisfactory completion of the projects prior to approving their final payment request. Audit staff found that grantees were generally compliant, and approved their final payment requests in accordance with the established procedure. Total Grantee Project # and Title Grant Amount City of Oakland 310727 De Fremery House Recreation Center. $101,172.66 City of Oakland 310723 Josie De La Cruz Park Project. 180,000.00 City of San Leandro 311008 San Leandro Ball Park Project. 517,542.00 HARD 311215 Castro Valley Swim Center Project. 1,489,630.74 City of Berkeley 310205 Terrace View Park Basket Ball Courts. 413,573.91 City of Berkeley 310206 Virginia McGee Totlot Renovation. 385,717.06 Contra Costa County 314502 Pacheco Creekside Trail Improvement. 50,000.00 Oakland Zoo 314606 California Trail Phase 2 Gondola System. 3,743,807.00 City of Pleasanton 310901 Dolores Bengtson Aquatic Center. 3,171,377.00 HARD 311218 Sorensdale Recreation Center. 478,330.89 City of Walnut Creek 313203 Larkey Pool and Splash Pad Project. 2,243,160.00 City of Brentwood 311508 Trail Connection and Landscape Project. 73,939.25
Result of Internal Audit Projects Completed on Request (not included on 2017 Internal Audit Plan)
The following projects were not prescheduled in the 2016 Internal Audit Wokplan.
Special Review of Kennedy Grove Park Cash Collection Activities: Park Disrtict staff collects parking fee on weekends only, and limited staffing adversely affects implementing desired cash handling controls at this location.
Pursuant to the park supervisor’s request, Internal Audit staff reviewed a day’s-end reported cash balance, unannounced visited the park’s main entrance kiosk on Sunday July 30, 2017, and performed a surprise cash count, and observed kiosk attendant’s cash collection and recording activities. Our objectives were to evaluate safeguarding of assets, functionality of controls, and verify compliance with the District’s current cash handling policies and procedures.
Our limited review reassured the park supervisor about overall reasonableness of cash handling and recording activities, and identified opportunities for further improvement of internal controls. We recommended maintaining separate accountability for cashiers, enhanced monitoring of the cashiers’ activities when feasible, and timely reporting and deposit of minor shortages and overages.
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Special Review of the District’s financial records upon departure of a former employee: After resignation of a former employee Internal Audit staff performed a special review of the District’s financial records to ensure functionality of financial controls and safeguarding of the assets. Internal controls were functional and assets were properly safeguarded.
External Audit Projects Results
Coyote Hills Day Camp Grant Audit: California State Parks staff performed an audit of the EBRPD records, to assess compliance with the provisions of Coyote Hills Day Camp grant agreement. District was found to be fully compliant with their requirements.
2018 Internal Audit Work Plan
For 2018, internal audit projects were selected based on level of financial risk, which is defined as a set of circumstances that hinder achievement of objectives. The financial risk assessment was first completed in 2009 and is updated annually for audit planning. A risk-based auditing approach helps define the areas with the greatest financial impact and the greatest financial risk for the District. The risk assessment process involves understanding the entity and its environment including internal controls, performing analytical procedures, observation and inspection, and eventually establishing a risk scoring system that is used for developing the annual internal audit plan.
The top priority of the internal audit function is to examine one high risk revenue area, and one high risk expenditure area, every year. The risk areas are reassessed annually and projects rotated, so that all are examined on a regular basis. 2018 planned audit projects include formal review of a prior year audit project findings and recommendations, and assessing their implementation and impact on improving internal controls. If time permits, audit staff will also review personnel’s compliance with an established District policy.
The 2018 Internal Audit Work Plan is reviewed by the District Assistant General Mangers, approved by the General Manager and reviewed with the Board Finance Committee. The results of the audit projects are reviewed with District management and the Finance Committee. The desired goal of the internal audit function is to help management effectively discharge their duties by enhancing and maintaining effective controls throughout the District.
RECOMMENDATION Review the information and direct staff to provide the 2018 Internal Audit Work Plan for acceptance by the Board of Directors.
58 EAST BAY REGIONAL PARK DISTRICT FINANCE DEPARTMENT 2018 INTERNAL AUDIT WORK PLAN DRAFT
Selected Projects Review of Ardenwood Concession - Palmdale Estate Events, Inc. Verify concessionaire's compliance with the contract terms.
Review of Crown Beach Concession - Boardsports School, LLC. Verify concessionaire's compliance with the contract terms.
Review of Capital Improvement Project No. 539700 Point Pinole - Vehicular Bridge Verify propriety of accounting transactions and functionality of internal controls.
Review of Sunol Regional Wilderness & Visitor Center Cash Handling Procedures Verify functionality of internal controls, safeguarding of assets, and compliance with administrative requirements.
Review of Job Order Contracting Program * Review propriety and functionality of internal controls and administrative requirements to ensure safeguarding of assets.
Review of Lake Chabot Food & Marina Concession - Urban Parks Concessionaires Verify concessionaire's compliance with the contract financial terms.
Review of Crown Beach Cash Handling Procedures Verify functionality of internal controls, safeguarding of assets, and compliance with administrative requirements.
Review of Payroll Related Data Transmittals by Human Resources Department Review propriety and timeliness of payroll related data transmitted by HR Dept. to improve internal controls.
Review of the District's Financial System (OneSolution) security relating to HR & Payroll Review and assess propriety of access controls setup, to ensure safeguarding of assets.
Review of Redwood Valley Railway Corp. Concession * Verify concessionaire's compliance with the contract terms.
Review of Oakland Strokes, Inc. MLK Jr. Estuary use * Verify lessee's compliance with financial terms of the lease agreement.
Routine Projects Review of Contracts and RFPs Review, revise and refine text of the proposed contracts & RFPs. Perform financial review, protect the District's best interest and assist with vendor selection. Requested by: Management and staff.
Review of Measure WW Local Grant Projects Verify propriety of payment requests submitted to the District's Grants Department. Requested by: Grants Department
* Project field work was started in 2017. Audit report will be issued in 2018.
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EAST BAY REGIONAL PARK DISTRICT BOARD FINANCE COMMITTEE AGENDA STATEMENT MEETING DATE –Wednesday, February 28, 2018
SUBJECT: 2017 Disposal of Fixed Assets
Report Prepared by: Kim Balingit, Accounting Manager
ATTACHMENTS: 2017 Fixed Assets to be Deleted from District Records
RECOMMENDATION: Review entire list of fixed asset disposals and recommend to the full Board of Directors approval of accounting adjustments to reflect the disposal of one fixed asset with a book value over $25,000 during the 2017 fiscal year.
DESCRIPTION: The District tracks and depreciates fixed assets using the enterprise resource planning (ERP) system known as One Solution. Annually, the District performs an inventory of assets and records an accounting adjustment to “write-off” the remaining net book value (original cost less accumulated depreciation) of any equipment no longer in the District’s possession. The Operations-Fleet Manager reviews and determines the best disposal method for surplus equipment.
Per Section VIII (I) of the Board Operating Guidelines - Financial Controls – Adjustments to Financial Records, items with a book value of over $25,000 are subject to Board review and action to remove them from the Fixed Assets Inventory. For 2017, one infrastructure asset disposal meets this requirement: the conveyance of an approximate eleven-acre P-Line parcel between Ardenwood Boulevard and Paseo Padre Parkway to Alameda County Flood Control and Water Conservation District.
The following is a summary of assets disposed in 2017:
- 56 assets were disposed through Board approved auction process. $211,164 was received at auction for these items. All but three of the items were fully depreciated.
- 18 assets were determined not to be auction-able, and were disposed or recycled. The net book value of these items combined was $2,665 at the time of disposal.
- 2 assets were listed as missing, which had a net book value of zero. A microwave and document binder was lost during the 2017 Del Valle flood.
______Agenda Item No. 3
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- 1 asset was conveyed to Alameda County Flood Control and Water Conservation District. There is Board approval from 2016, however it was not recorded as a write-off in One Solution until the physical inventory process of 2017.
A detailed listing of all fixed assets disposed of during 2017 is attached.
RECOMMENDATION: Staff requests that the Board Finance Committee review the entire list of fixed asset disposals and recommend to the full Board of Directors approval of accounting adjustments to reflect the disposal of one fixed asset with a book value over $25,000 during the 2017 fiscal year.
62 EAST BAY REGIONAL PARK DISTRICT 2017 PHYSICAL FIXED ASSET INVENTORY RECOMMENDED EQUIPMENT ASSETS TO BE DELETED FROM DISTRICT RECORDS NET BOOK ORIGINAL PURCHASE SOLD NO. ASSET # EQUIPMENT DESCRIPTION VALUE AMOUNT DATE FOR ASSETS SOLD THROUGH BOARD APPROVED AUCTION PROCESS (56 items) 1 108 2011 FORD CROWN VIC POLICE INTERCEPTOR 0.00 33,198.19 6/30/2011 1,571.00 2 124 2001 FORD FOCUS STATIONWAGON 0.00 15,580.12 5/1/2001 187.00 3 125 2011 FORD SSV EXPEDITION UTILITY 0.00 39,936.11 9/15/2011 1,111.00 4 126 2012 FORD EXPEDITION 0.00 31,608.12 8/1/2012 2,675.00 5 128 2012 DODGE CHARGER 0.00 27,104.28 8/23/2012 4,955.00 6 139 TOYOTA PRIUS 4 DOOR HYBRID 0.00 22,141.88 5/22/2002 1,935.00 7 151 2002 FORD FOCUS STATIONWAGON 0.00 15,778.68 6/11/2002 1,521.00 8 182 2009 CROWN VICTORIA POLICE INTERCEPTOR 0.00 29,310.06 11/25/2008 927.00 9 183 2008 FORD ESCAPE 4WD UTILITY 0.00 17,287.93 7/9/2008 4,055.00 10 202 2008 CROWN VICTORIA POLICE CAR 0.00 26,478.30 12/4/2007 651.00 11 226 2006 UTILITY FORD EXPLORER 0.00 24,363.30 12/5/2006 877.00 12 246 2004 FORD EXPLORER UTILITY 0.00 20,815.81 4/25/2006 1,000.00 13 255 2007 VAN, DOGDGE CARAVAN 0.00 17,365.99 12/8/2006 2,157.00 14 263 1990 GMC FLEETWOOD 34" MOTOR HOME 6,051.17 40,053.00 2/8/2005 3,505.00 15 265 2005 HONDA TRX 400FAS ATV 0.00 6,301.62 8/30/2005 2,767.00 16 266 2005 HONDA MOTORCYCLE ST1300PS 0.00 21,242.37 1/4/2006 1,827.00 17 275 2008 CROWN VIC POLICE SEDAN 0.00 23,324.02 11/20/2007 1,379.00 18 407 1995 CATEPILLAR DOZER D6-H 0.00 180,224.34 8/21/1995 36,270.00 19 487 1994 FORD 260C TRACTOR 0.00 35,818.99 4/18/1994 6,730.00 20 541 1997 NEW HOLLAND FORD 545DT4 T 0.00 39,550.22 8/13/1997 7,275.00 21 596 1999 ATV, KAWASAKI 4WD 0.00 7,880.59 7/20/1999 375.00 22 641 ZIEMAN TRAILER 0.00 6,156.00 5/30/2001 1,946.00 23 649 2001 ATV KAWASAKI MULE 4X4 0.00 9,412.90 9/12/2001 1,663.00 24 691 2003 MULTI-TRAC ART WHEEL LOAD 0.00 24,872.84 3/4/2003 10,035.00 25 695 2003 KAWASAKI ATV 4WD MULE 0.00 10,068.33 5/13/2003 1,571.00 26 709 2003 KAWASAKI ATV 4WD MULE 0.00 10,068.33 5/13/2003 1,847.00 27 716 2003 ATV KAWASAKI 3010 MULE 0.00 10,068.33 8/12/2003 1,203.00 28 738 2005 ATV KAWASAKI 3010 4X4 MUL 0.00 9,773.88 3/8/2005 3,135.00 29 746 HONDA ATV FOURTRAX RANCHER 4X4 0.00 6,060.92 1/12/2004 2,031.00 30 754 2005 KUBOTA ATV RTV900G-K 0.00 11,682.00 6/22/2005 3,365.00 31 761 2005 KUBOTA RTV900 G-K ATV 0.00 11,990.56 11/8/2005 4,515.00 32 762 2006 JD 1445 MOWER W/72" DECK 0.00 19,382.16 3/6/2006 6,355.00 33 770 2006 ATV, KAWASAKI 3010 4WD 0.00 9,244.56 10/11/2006 1,571.00 34 793 2007 EZ LOADER BOAT TRAILER 1,365.38 5,120.23 12/31/2006 467.00 35 805 2007 KUBOTA 4WD MOWER 0.00 15,516.30 8/7/2007 5,350.00 36 811 UTILITY KUBOTA ATV 0.00 12,367.06 9/27/2007 4,515.00 37 2766 CAB & CHASSIS #1 1997 TYPE 3 0.00 186,690.29 3/4/1997 18,580.00 38 2772 1997 FORD F-SUPER DUTY TYPE 4 0.00 77,626.74 11/25/1997 17,150.00 39 2828 DODGE BR1500 2WD PICKUP 0.00 14,859.40 4/11/2000 1,387.00 40 2851 2001 FORD RANGER PICKUP 0.00 16,614.25 12/5/2000 1,479.00 41 2852 2001 GMC 6500 DUMP TRUCK 0.00 35,675.19 10/31/2000 8,485.00 42 2855 2001 JEEP CHEROKEE 0.00 21,954.66 4/5/2001 1,985.00 43 2880 INTL TRUCK CAB/CHASSIS DUMP 0.00 64,279.25 4/3/2001 8,945.00 44 2889 2002 DODGE DAKOTA PICKUP X-CAB 0.00 17,288.25 5/29/2002 2,583.00 45 2901 2002 DODGE DAKOTA PICKUP 0.00 13,753.67 6/11/2002 1,605.00 46 2916 2003 JEEP UTILITY LIBERTY 4WD 0.00 20,311.66 6/17/2003 2,668.00 47 2922 2003 FORD RANGER PICKUP 0.00 12,837.50 7/1/2003 1,939.00 48 2924 2003 DODGE DAKOTA 4WD PICKUP 0.00 14,880.86 5/6/2003 1,295.00 49 2928 2003 DODGE DAKOTA 4WD PICKUP 0.00 14,560.33 5/20/2003 2,583.00 50 2929 2003 FORD RANGER PICKUP 0.00 13,351.16 7/1/2003 835.00 51 2943 2004 DODGE DAKOTA 4WD PICKUP 0.00 16,324.73 5/4/2004 835.00 52 2947 2004 FORD RANGER PICKUP 0.00 14,412.31 4/6/2004 1,571.00 53 2985 2005 DODGE RAM CAB/CHASSIS 0.00 26,942.81 7/19/2005 467.00 54 2995 2005 DODGE RAM 4WD PICKUP 0.00 20,756.61 8/2/2005 3,085.00 55 14290 NORDSKOG ELECTRIC TRUCK 0.00 8,500.00 9/21/1993 46.00 56 18134 WASTEOIL TANK 500 GALLON 1,526.19 7,475.72 1/23/2002 322.00 Total equipment sold at auction 8,942.74 1,466,243.71 211,164.00
63 NET BOOK ORIGINAL PURCHASE SOLD NO. ASSET # EQUIPMENT DESCRIPTION VALUE AMOUNT DATE FOR ASSETS DESTROYED AND NOT AUCTIONABLE (5 items) 1 11970 4'X8' PORTABLE BARBEQUE 0.00 1,472.75 12/31/1990 2 15779 US RANGE FULL SIZE SINGLE DECK 0.00 3,126.26 12/5/1994 3 15785 INTRUSION ALARM SYSTEM 592.31 7,720.00 12/12/1994 4 18224 WORK TOP FREEZER (ON CART) 255.07 1,569.61 3/27/2001 Total equip destroyed-thrown away 847.38 13,888.62
ASSETS MISSING (2 items) 1 14133 SHARP MICROWAVE, MODEL R21AD 0.00 688.00 8/25/1993 2 18989 DOCUMENT BINDER 0.00 8,860.26 2/18/2004 Total equip missing 0.00 9,548.26
ASSETS RECYCLED (12 items) 1 134 2013 FORD PURSUIT POLICE INTERCEPTOR 0.00 33,195.71 12/6/2012 2 7577 CODA PRESSURE SENSITIVE LAMINATOR 0.00 5,076.06 8/17/1999 3 11724 TIMBERFORM PLAY STRUCTURE 0.00 19,187.03 5/14/1990 4 12454 DIGITAL DISPATCH CPU/LINE CARD 0.00 5,501.54 8/17/1992 5 13857 JORDON FREEZER 0.00 1,500.00 9/20/1993 6 14627 FREE STANDING BEER COOLER 0.00 1,461.38 12/6/1993 7 17719 SCOTTSMEN ICE MACHINE 46.94 800.00 3/1/1999 8 18599 ROLAND COLOR CAMM 0.00 11,896.68 2/13/2002 9 18642 MERCURY 4 STROKE OUTBOARD 90HP 0.00 8,931.36 4/30/2002 10 18967 CLAWSON SHAVED ICE MACHINE 269.88 952.60 8/26/2003 11 18983 GEAR REDUCTION DRIVE & MOTOR 442.99 5,695.59 3/9/2004 12 18987 CONVECTION OVEN 334.05 1,054.61 4/20/2004 13 18988 CADCO CONVECTION OVEN 334.05 1,054.61 4/20/2004 14 19410 24" ELECTRIC GRIDDLE 389.36 713.36 12/10/2008 Total equip recycled 1,817.27 97,020.53
Total equipment written off in 2017 11,607.39 1,586,701.12
NET BOOK ORIGINAL PURCHASE NO. ASSET # INFRASTRUCTURE DESCRIPTION VALUE AMOUNT DATE REASON WRITTEN OFF
ASSETS OTHER (1 item) Conveyance of property to Alameda County Water 1 136TC0030001 PAVED REGIONAL TRAIL 27,476.07 73,973.97 12/31/1995 District RES #2016-04-089 Total Infrastructure other 27,476.07 73,973.97
Total Infrastructure written off 2017 27,476.07 73,973.97
Total Assets Written off 2017 1,660,675.09
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