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1998 11 18 IABT e 0 4hf 4 4 a" 78-495 CALLE TAMPICO - LA GUINTA, CALIFORNIA 92253 - (760) 777-7000 TDD (760) 777-1227 AGENDA INVESTMENT ADVISORY BOARD Study Session Room 78-495 Calle Tampico- La Quinta, CA 92253 November 18, 1998 - 5:30 P.M. I CALL TO ORDER a. Pledge of Allegiance b. Roll Call 11 PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) III CONFIRMATION OF AGENDA IV CONSENT CALENDAR A. Approval of Minutes of Meeting on October 14, 1998 for the Investment Advisory Board. V BUSINESS SESSION A. Transmittal of Treasury Report for September, 1998 VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - October, 1998 B. Pooled Money Investment Board Reports - August, 1998 C. Year 2000 Letter and Backup Recovery Center D. Fiscal Year 97/98 Legislative Update VII BOARD MEMBER ITEMS VIII ADJOURNMENT z,. MAILING ADDRESS — P.O. BOX 1504 — LA QUINTA, CALIFORNIA 92253 INVESTMENT ADVISORY BOARD Business Session: A Meeting Date: November 18, 1998 ITEM TITLE: Transmittal of Treasury Report for September 30, 1998 BACKGROUND: Attached please find the Treasury Report for September 30, 1998. RECOMMENDATION: Review, Receive and File the Treasury Report for September 30, 1998. M L4 hn M. Falconer, Finance Director Z 0 F U_ tL N W 0 z Q Z H cy CW ar 2 U LL LU r� Z F 0 U W N rx O F Q E E x m E w O N 7 N N C E N c 0 0 m m a w c w o E m a> > w � N cvi N N O) 0 C O_ 0 v •n 0 m a� a — U '3 c f0 N d 7 E m0 c U � 4 L L 0 f- n -a 3 O E 7 E m E a� t c m w to N a 7 E m N 7 ft1 E Q N C O ) 0� Z a o 0 Z 0 0 Z Z C c ZW o O 7. o On CCCZ> O O oo7 a � W W a ¢ � � ° O o C 0_ IcmC_'OOmn) U) >C 10 O) >, 0)"0 CU Cm LO yL m 'O m N VC O N N N 1 V II >, N OVV IIV O C VCO >Uo_0LcC ��CC�U•i- y Ocu yM 0)C U t(a 0 Qacc> CL > 0NUL IL 0 >C N o N CLa ON0 OL nN 0 "). > W 0 0m 0y� = Cop N 'V 00.LZ oLm0 O mLv v B zo 0. 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M v� N O� Vt O CO•"ONON M M 00 Os `TC O O COOMM 00000�� N G N LL le TT00C7> �•-(O� N N T N v a y0 c 0000I-0 MU.)1` f� ti N Go fD m�W 0 O T 0 0 O 0 OOMOC") C� Cp 0 O r M MCf)�00%-- N ccO 0 t0 N o �OOrr CM�NO T O Go O C-CO Go et LL e- N T T CY) M 0 O M 00CMOCo 0 0 �f) c0 M It OCOCDTOM O 0 t0 — O T N O tD Oa 7 OC) P- TC6 CD c0 1� CO �0)CO�stN N f` O O M 0co� QOCM a)N CONd 00000 OI-�CDr� O CA I O tf) O Re O O CO CO N ti O e- .- M T N c d 2 3 y d O � L H N c d �+ C d co v E x +y C r a) � d m C U N� m C y J K C L m m X = N (U c� =� N m V V U N C c - U .O U a H N 3 N c •Clf _ � . , X U N N LL .O U 7 � cL (D o Z Q. c d V m c 5 cm>d NH c _. v a� uXi° mLj d � ai c Q'���m m�a>i�;ccn CL c 5 U m a�cn0l wu)WOU Z U W Z O � a m � � m O U a E O O U N •C c c tm f� U c m Q U N O O W to a- N 0 7 U c= M m c U CD Z N c N co U U a C c o > o. m 2 Of 07 CITY OF LA QUINTA BALANCE SHEET 09/30/98 CITY ASSETS: POOLED CASH 1,991,759.25 LQRP INVESTMENT IN POOLED CASH INVESTMENT T-BILL/NOTES & OTHER 18,000,000.00 LQRP CASH BOND REDEMPTION CASH BOND RESERVE CASH BOND PROJECT CASH BOND ESCROW CASH PETTY CASH 1,000.00 CASH & INVESTMENT TOTAL 19,992,759.25 INVESTMENT IN LAND HELD FOR RESALE ACCOUNTS RECEIVABLE PREMIUM/DISCOUNT ON INVESTMENT LQRP-ACCOUNTS RECEIVABLE INTEREST RECEIVABLE LOAN/NOTES RECEIVABLE DUE FROM OTHER AGENCIES DUE FROM OTHER GOVERNMENTS DUE FROM OTHER FUNDS DUE FROM RDA INTEREST ADVANCE -DUE FROM RDA NSF CHECKS RECEIVABLE ACCRUED REVENUE TRAVELADVANCES EMPLOYEE ADVANCES PREPAID EXPENSES RECEIVABLE TOTAL 57,406.02 (134,579.38) (9,765.62) 14,499.19 (72,996.28) 6,890,277.20 2,242,550.40 1,484.94 5,360.00 3,491.00 CITY CITY RDA RDA FA FIXED LONG TERM FIXED LONG TERM FINANCING LONG TERM GRAND ASSETS DEBT RDA ASSETS DEBT AUTHORITY DEBT TOTAL 6,963,918.98 (375.08) 8,955,303.15 530,000.00 530,000.00 79,591.50 18,000,000.00 2,728.60 467,175.00 79,591.50 469,903.60 16,076,700.87 601,722.44 16,678,423.31 23,652,939.95 1,000.00 1,068,522.36 44,714,221.56 (0.15) (0.15) 81,257.68 8,505,000.00 8,643,663.70 (33,240.02) (5,962.14) (173,781.54) 25,832.07 . 07 142,955.80 , 133190.18, 2,528,967.76 2,543,46666.95 551,038.04 478,041.76 6,890,277.20 2,242,550.40 34,625.54 1,484.94 34,625.54 5,360.00 3,331,436.87 8,499,037.86 20,828,202.20 WORKER COMPENSATION DEPOSIT 37,637.00 RENT DEPOSITS 37,637.00 UTILITY DEPOSITS 75.00 MISC. DEPOSITS 2,100.00 75.00 DEPOSITS TOTAL 39,812.00 2,100.00 39,812.00 GENERAL FIXED ASSETS 1,098,865.00 15,008,708.00 11,438,745.05 ACCUMULATED DEPRECIATION (526,870.96) 27,546,318.05 AMOUNT AVAILABLE TO RETIRE LIT DEBT (546,318.05 96 AMOUNT TO BE PROVIDED FOR L!T DEBT 3,395,117.03 3(526,870.03 TOTAL OTHER ASSETS __ 571,994.04 15,008,708.00 1,844,941.22 97,804,428.68 1,844,941.22 11,438,745.05 101,199,545.71 8,505,000.00 108,154,369.90 8,505,000.00 138,568,934.02 TOTAL ASSETS 29,602,292.76 15 008 708.00 1,844,941.22 26 984 376.67 11 438 745.05 101 199 545.71 9,567,560.22 8,505,000.00 204 151 169.63 LIABILITY ACCOUNTS PAYABLE 99,129.10 22,139.53 DUE TO OTHER AGENCIES 56,201.04 121,268.63 DUE TO OTHER FUNDS 7,100.12 435,835.04 56,201.04 INTEREST ADVANCE -DUE TO CITY 35,106.60 478,041.76 ACCRUED EXPENSES PAYROLL LIABILITIES 604.06 STRONG MOTION INSTRUMENTS 7,127.32 604.06 FRINGE TOED LIZARD FEES 17,430.00 7,127.32 SUSPENSE 17,430.00 DUE TO THE CITY OF LA QUINTA PAYABLES TOTAL 187,591.64 22,139.53 435,835.04 35,106.60 680,672.81 ENGINEERING TRUST DEPOSITS 58,224.09 SO. COAST AIR QUALITY DEPOSITS 58,224.09 ARTS IN PUBLIC PLACES DEPOSITS 319,078.42 LQRP DEPOSITS 15,157.00 319,078.42 DEVELOPER DEPOSITS 614,713.03 15,157.00 MISC. DEPOSITS 215,019.16 614,713.03 AGENCY FUND DEPOSITS 821,086.07 215,019.16 TOTAL DEPOSITS 2,028,120.77 15,157.00 __ _ 821,086,072,043,277.77 DEFERRED REVENUE 14,229.79 OTHER LIABILITIES TOTAL 14,229.79 8,505,000.00 8,519,229.79 8,505,000.00 8,519,229.79 COMPENSATED ABSENCES PAYABLE 313,619.81 DUE TO THE CITY OF LA QUINTA 1,509,181.88 9,132,828.81 31331381 19 ,6.81 DUE TO COUNTY OF RIVERSIDE 10,642,010.69 DUE TO C.V. UNIFIED SCHOOL DIST. 12,601,591.90 12,601,591.90 DUE TO DESERT SANDS SCHOOL DIST. 12,601,591.90 12,601,591.90 BONDS PAYABLE TOTAL LONG TERM DEBT 1,822,801.69 68,775,000.00 8,505,000.00 77,280,000.00 101,199,545.71 8,505,000.00 111,527,347.40 TOTAL LIABILITY 2,229,942.20 1,844,941.22 450,992.04 101,199,545.71 8,540,106.60 8,505,000.00 122,770,527.77 EQUITY -FUND BALANCE TOTAL LIABILITY & EQUITY 27,372,350.56 15,008,708.00 26,533,384.63 11,438,745.05 1,027,453.62 81,380,641.86 29 602 292.76 15 008 708.00 1,844,941.22 26 984 376.67 11 438 745.05 101 199 545.71 9,567,560.22 8,505,000.00 204 151 169.63 INVESTMENT ADVISORY BOARD Meeting Date: November 18, 1998 TITLE: Month End Cash Report - October 1998 BACKGROUND: Correspondence & Written Material A This cash report is not a complete Treasury Report (exclude petty cash, deferred compensation and fiscal agent balances, ) but would report in a timely fashion selected cash balances. RECOMMENDATION: Information item only. �hn M. Falconer, Finance Director a) 0 C 0 0 LL m m C) 0 C1 m L N C CU (� 0 U M c cM 0 yL, C 0 .-�. 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L L U) 04- 4- � 00 �' C .a a) U>%C > O Q �0 O > Q� c a) _ c0 a CL.Q N NCL� :3M O NC-lC 0a)�- a- a) 0 La)O I" �.Q cu� a >- 'a a)) .0. .0 F- U �% 0 'C3 a) a) E p) ca a�ai'E C t� a) Q > != 0.EC X O C C O O O.(Dc0. �� N C C O Q- ) L) O � -a LL � � a) — M C L= C N C 'a 0 a) = O NrCU L�a)0 UQ >,2 cu C E0E LSO LOOP_ I >, a) CON O -C c U �(n " ai IS :c O c6 3:3Mca a) F- �s C M L � . �NC�� Em a Q�� QV-0=.G ���Ma) Lou ww O L �LQ w0-0 O Cl) E N m �' CO)OCUC~�� O aNi-C .0X �'°� O o CL'- (u w3: v30Ur E- _0 D4) :3 a a) O-t a- a) r.., Q0 a)LL cuc L `-' C 0a�0 c0 EL D)XU) cu W"O �'wWw0 0( �a)'c O � c�a cu a) ��La)a �a)O aN 0W cEc C)a) Q C a) a) Q-L 4) w ~ Q- W a) LEQM a- U xa) Nca:3 CL- o ar om`�� W--4 ocaa �E o°.S O = ,O N N� c- C: W U0 U-0 _00 -0 C CL C-02aC Q- OO HO LL v a) -L Ca L C L- Ci M Cn .� :3 -a 012 INVESTMENT ADVISORY BOARD Meeting Date: November 18, 1998 TITLE: Pooled Money Investment Board Report for August 1998 BACKGROUND: Correspondence & Written Material Item B The Pooled Money Investment Board Report for August, 1998 is included in the agenda packet. RECOMMENDATION: Receive & File hn M. Falconer, Finance Director STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT AUGUST 1998 Table of Contents SUMMARY............................................................................................................1 SELECTED INVESTMENT DATA....................................................................2 PORTFOLIO COMPOSITION...........................................................................3 INVESTMENT TRANSACTIONS......................................................................4 TIMEDEPOSITS................................................................................................20 DEMAND BANK DEPOSITS............................................................................25 POOLED MONEY INVESTMENT BOARD DESIGNATION .....................26 INDEPENDENT AUDITORS' REPORT............................................27 POOLED MONEY DIVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF AUGUST 1998 WITH AUGUST .1997 (Dollars in Thousands) Average Daily Portfolio Accrued Earnings Effective Yield Average Life --Month End (in days) Total Security Transactions Amount Number Total Time Deposit Transactions Amount Number Average Workday Investment Activity Prescribed Demand Account Balances For Services For Uncollected Funds ��gg August i997 $31,350,849 $150,496 5.652 201 $25,113,159 550 $1,023,200 53 $1,244,589 $132,551 $151,320 $27,688,353 $133,804 5.690 218 .$57,672,668 1,244 $581,700 37 $2,774,017 $170,159 $149,733 - $32,559,509 - 694 + $441,500 +16 - $1,529,428 - $37,608 + $1,587 —1— Pooled Money Investment Account Portfolio Composition $30.5 Billion Loans Reverses r^rnnratA 6.56% -1.06 0 Commerc Paper 21.65°A Repurd 1.12 CD's/BN's 24.66% isuries ,67% Time Deposits 5.79% Mortgages 0.08% icies 58% 8/31 /98 C Treasuries ® Time Deposits ■ Mortgages ® Agencies e CD's/BN's ■ Bank Acceptances ® Repurchases IS Commercial Paper ® Corporate Bonds 0 Loans M Reverses -3- MATT FONG STATE TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) Change in August 31,1998 Percent From Type of Security Amount Percent Previous Month Governments Bills $2,2919093 •7.52 - 1.11 Bonds 0 0 0 Notes 54239904 17.15 _ Strips 0 0 .38 0 Total Governments $7,5149,997 24.67 - 1 A9 Federal Agency Coupons $2,4659453 8.10 + 1.24 Certificates of Deposit 6,303,688 20.70 + 4.60 Bank Notes 1,206,000 3.96 34 Bankers Acceptances 0 0 Repurchases 3409000 1.12 + .03 1.12 Federal Agency Discount Notes 7549401 2.48 + 39 Time Deposits 1,763,390 5.79 + GNMA's 2429 .01 .51 0 Commercial Paper 6,594,685 21.65 5.75 FELMC 21,387 ,07 0 Corporate Bonds 1,811,321 5.95 + 36 Pooled Loans 1,9999517 6.56 + GF Loans 0 0 .14 Reversed Repurchases -321 671 -1.06 + 0 .75 Total, All Types $309455,397 100 INVESTMENT ACTIVITY August 1998 July 1998 Number Amount Number Amount Pooled Money 550 $ 25,113,159 571 $ 25,645,099 Other 9 $ 37,539 7 $ 1679,954 Time Deposits 53 $ 1,023,200 54 $ 813,000 TO 612 $ 26,1739,898 632 $ 26,626,053 PMIA Monthly Average Effective Yield 5.652 5.652 Year to Date Yield for Last Day of Month 5.652 5.652 —2— 08/04198 REDEMPTION 7,805.56 5.698 CID GECC 08/04/98 5.620 5.620 50,000 50,000 � 1 1 7,805.56 5.698 CID GECC GECC 08/04/98 08/04/98 5.620 50,000 � 7,g05:56 7,g05.56 5.698 5.698 CID CID GECC 08/04/98 5.620 5.620 50,000 50,000 7,805.56 5.698 CID GECC GECC 08/04/98 08104/98 5.620 50,000 � 7,gp5.56 39,305.56 5.698 5.743 CID CID FMCC 08/04/98 5.660 5.660 50,000 50,000 b 39,305.56 5.743 CID FMCC 08/04/98 08/04/98 5.660 50,000 5 39,305.56 39,305.56 5.743 5.743 CID CID FMCC FMCC 08/04/98 5.660 50,000 50,000 5 8 62,222.22 5.684 CID SRAC 08/04/98 08/04/98 5.600 5.550 25,000 14 53,958.33 5.639 5.609 CID Country Amer Exp 5.520 30,000 15 15 69,000.00 115,000.00 5.520 CID Amer Exp 08/04/98 08/04/98 5.520 50,000 CID PURCHASE CD Svenska 5.5900% 12/02/98 12/02/98 5.570 5.570 50,000 50,000 CD Svenska 5.590 /0 5.620% 01/27/99 5.610 50,000 CD Rabo Rabo 5.620°0% 01/27/99 56500 50,000 CD CD UB Calif 5.650 /0 01/27/99 . 000 50,000 CD UB Calif 5.650% 01/27/99 08/05/98 0 5.54p 40,000 CID GECC GECC 08/05/98 5.540 50,000 CID GECC 08/05/98 5.540 50,000 CID CID GECC 08/05/98 08/05/98 5.540 5.540 50,000 50,000 CID CID GECC Amer Exp 08/07/98 5.530 50,000 Cp Amer Exp 08/07/98 08/07/98 5.530 5.530 50,000 50,000 CID Amer Exp Amer Exp 08/07/98 5.530 50,000 CID CID Amer Exp 08/07/98 5.530 5.530 50,000 50,000 Cp Amer Exp 08/07/98 08/07/98 5.530 50,000 CID Amer Exp Amer Exp 08/07/98 5.530 50,000 CID CID Merrill 08/10/98 08/10/98 5.510 5.510 50,000 13,000 ' CID Merrill Merrill 08/10/98 5.510 50,000 CID Cp Lehman 01 /27/99 01/27/99 5.520 5.200 50,000 50,000 CID Lehman 08105/98 REDEMPTION CIDGECC 08/05/98 5.540 40,000 1 1 6,155.56 5.617 7,694.44 5.617 CID GECC 08/05/98 5.540 08/05/98 5.540 50,000 50,000 1 7,694 44 5.617 CID GECC GECC 08/05/98 5.540 50,000 1 7,694.44 5.617 7,694.44 5.617 CID CID GECC 08/05/98 5.540 50,000 1 —5— 08/03/98 REDEMPTION BA U/B Calif 08/03/98 5.530 $10,900 60 100,461.67 5.658 CD Stnrd Ch 5.600% 08/03/98 5.570 50,000 94 727,250.61 5.647 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Salomon 08/03/98 5.600 35,000 7 38,111.11 5.683 CP Salomon 08/03/98 5.600 50,000 7 54,444.44 5.683 CP Country 08/03/98 5.620 10,418 7 11,384.56 5.704 CP Country 08/03/98 5.620 50,000 7 54,638.89 5.704 CP Hertz 08/03/98 5.620 30,000 7 32,783.33 5.704 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP Bear 08/03/98 5.520 50,000 14 107,333.35 5.608 CP CP Bear 08/03/98 5.520 50,000 14 107,333.35 5.608 CP Merrill 08/03/98 5.530 50,000 25 192,013.89 5.628 CP Merrill 08/03/98 5.530 13,000 25 49,923.61 5.628 CP Country 08/03/98 5.555 36,250 25 139,713.54 5.648 CP Country Conagra 08/03/98 5.570 33,000 47 239,974.17 5.688 CP Hertz 08/03/98 5.630 29,000 47 213,158.06 5.750 CP FMCC 08/03/98 5.560 20,000 14 43,244.44 5.649 CP Heller 08/03/98 5.520 50,000 14 107,333.33 5.608 CP HeUeer 08/03/98 5.750 50,000 48 383,333.33 5.874 CP SRAC 08/03/98 5.750 50,000 48 383,333.33 5.874 MTN Chrysler 08/03/98 6.600% 08/03/98 5.480 6.500 50,000 13,800 103 756 783,944.44 5.644 1,859,044.00 6.500 PURCHASE CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP Hertz 08/05/98 5.600 50,000 CP Country 08/27/98 5.580 50,000 CP Country 08/27/98 5.580 50,000 CP Conagra 08/27/98 5.670 25,000 CP Conagra 08/27/98 5.670 50,000 CP Heller 08/27/98 5.670 50,000 CP Heller 08/27/98 5.670 50,000 —4— 08/07198 PURCHASE CP GECC 08/10/98 08/10/98 5.470 5.470 50,000 50,000 CP GECC 08/10/98 5.470 50,000 CP GECC 08/10/98 5.470 50,000 CP GECC 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Assoc 08/13/98 5.510 50,000 CP CD Herd Westdeut ° 5.630 /0 01/27/99 5.630 50,000 50,000 CD BkBoston 5.610% 5.610°� 0127/99 .610 5.610 10,000 CD BkBoston Nova Scot 5.590ok 0 1 27/99 50,000 50,000 CD CD Nova Scot 5.590 /0 0 09/08/98 5.590 5.560 15,000 CD WestPac Bk CommerLBk 5.580% 5.590% 12/29/98 5.580 30,000 CD BN Paris 5.660% 02/04/99 5.630 25,000 CD 08/10198 REDEMPTION 3 22,791.67 5.548 CP GECC 08/10/98 5.470 5.470 50,000 50,000 22,791.67 5.548 C p GECC 08/10/98 08/10/98 5.470 50,000 3 22,791.67 22,791.67 5•� 5•� CP CP GECC GECC 08/10/98 5.470 50,000 50,000 3 3 22,791.67 5.54808/10/98 CP Assoc 08/10/98 5.470 5.470 50,000 3 22,791.67 ��791.67 5.548 5.548 CP Assoc Assoc 08/10/98 5.470 50,000 3 3 22,791.67 5.548 CP CP Assoc 08/10/98 5.470 5.510 50,000 50,000 6 45,916.67 5.591 CP Amer Exp Exp 08/10/98 08/10/98 5.510 50,000 6 45,916.67 45,916.67 5.591 5.591 CP Amer Amer Exp 08/10/98 5.510 50,000 6 45,916.67 5.591 CP CP Amer Exp 08/10/98 5.510 5570 50,000 50,000 14 108,305.56 5.659 CP Assoc 08/10/98 08/10/98 . 5.570 50,000 14 108,305.56 108,305.56 5.659 5.659 CP CP Assoc Assoc 08/10/98 5570 . 50,000 50,000 14 20 153,888.89 5.634 CP Bear 08/10/98 5.540 08/10/98 5.540 50,000 20 153,888.89 5.634 CP Bear PURCHASE CP GE Co. 08/11/98 08/11/98 5.550 5.550 50,000 50,000 CP GE Co. 08/11/98 5.550 50,000 CP GE Co. 08/11/98 5.550 50•000 CP GE Co. 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11 /98 5.540 50,000 CP Assoc —7— 08/05/98 REDEMPTION CP Hertz CP Comnwealth 08/05/98 08/05/98 5.600 5.770 50,000 2 15,555.56 5.679 CP Hertz 08/05/98 5.540 14,000 50 25,000 27 112,194.44 5.897 CP Bear 08/05/98 5.540 50,000 97 103,875.00 746,361.11 5.640 5.702 PURCHASE CP GECC 08/06/98 5.490 50,000 CP GECC 08/06/98 5.490 50,000 CP GECC 08/06/98 5.490 50,000 CP GECC 08/06/98 5.490 50,000 CP GECC 08/06/98 5.490 50,000 CP GECC 08/06/98 5.490 50,000 08/06/98 REDEMPTION CP CP GECC GECC 08/06/98 5A90 50,000 1 7,625.00 5.567 CP GECC 08/06/98 08/06/98 5.490 5.490 50,000 50,000 1 7,625.00 5.567 CP GECC 08/06/98 5.490 50,000- 1 1 7,625.00 5.567 CP CP GECC GECC 08/06/98 - 5.490 50,000 1 7,625:00 7,625.00 5.567 5.567 CP GMAC 08/06/98 .08/06/98 5.490 5.460 50,000 22,835 1 7,625-00 5.567 113 391,353.84 5.632 PURCHASE CP CP Assoc 08/07/98 5.530 50,000 CP Assoc 08/07/98 5.530 35,000 CP GECC GECC 08/07/98 5.530 50,000 08/07/98 5.530 50,000 08/07/98 REDEMPTION CP CP Assoc Assoc 08/07/98 08/07/98 5.530 50,000 1 768056 5.607 CP GECC 08/07/98 5.530 5.530 35,000 50,000 1 1 5,376.39 5.607 CP GECC 08/07/98 5.530 50,000 1 7,. ,6808056 56 5.607 CP CP Amer Exp Amer Exp 08/07/98 5.530 50,000 3 3,041.67 , 23,041.67 5.609 5.609 CP Amer Exp 08/07/98 08/07/98 5.530 5.530 50,000 50,000 3 23,041.67 5.609 CP CP Amer Exp Amer Exp 08/07/98 5.540 25,000 3 17 23,041.67 65,402.78 5.609 5.631 CP Amer Exp 08/07/98 08/07/98 5.540 5.530 50,000 50,000 17 130,805.56 5.631 CP Conagra 08/07/98 5.770 q.4,445 3 8 23,041.67 5.609 CP Conagra 08/07/98 5.770 50,000 56,988.37 5.857 CP Enron 08/07/98 5.680 50,000 11 64,111.11 5.857 CP Baxter 08/07/98 5.625 10,000 45 86,777.78 5.768 CP CP Comnwealth Salomon 08/07/98 5.820 20,000 49 70,312.50 5.743 08/07/98 5.540 50,000 52 400,111.11 5.662 M.-M 08/12/98 REDEMPTION 1 7,611.11 5.556 CP GECC 08/12/98 5.480 5.480 50,000 50,000 1 7,611.11 5.556 CP GECC 08/12/98 08/12/98 5.480 50,000 1 7,611.11 2,677,972.22 5.556 5.351 CP GECC FNMA 5.350% 08/12/98 5.350 10,000 1828 PURCHASE CP GMAC 08/13/98 08/13/98 5.560 5.560 50,000 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08113/98 REDEMPTION CP GMAC 08/13/98 CP GMAC 08/13/98 Cp GMAC 08/13/98 Cp GMAC 08/13/98 CP GMAC 08/13/98 CP GMAC 08/13/98 Cp GMAC 08/13/98 CP GMAC 08/13/98 CP Country 08/13/98 CP Hertz 08/13/98 PURCHASE rJ Disc Note FHLB 09/04/98 09/09/98 Disc Note. FHLB 11 /16/98 Disc Note FNMA 6.000% 06/30/99 Treas Note Note 7.125% 09/30/99 Treas Treas Note 7.875% 11 /15/99 PURCHASE CP GECC 08/14/98 CP GECC 08/14/98 CP GECC 08/14/98 CP GECC 08/14/98 CP GECC 08/14/98 CP GECC 08/14/98 CP Text Fin 08/14/98 CP Conagra 08/17/98 5.560 50,000 1 7 ,722.22 7,722.22 5.638 5.638 5.560 50,000 1 1 7,722.22 5.638 5.560 50,000 1 7,722.22 5.638 5.560 50,000 1 7,722.22 5.638 5.560 50,000 1 7,722.22 5.638 5.560 50,000 50,000 1 7,722.22 5.638 5.560 5.560 50,000 1 7,722.22 5.638 5.550 32,000 3 14,800.00 45,916.67 5.629 5.591 5.510 50,000 6 5.580 50,000 5.580 25,000 5.580 27,800 5.550 31,096 5.550 20,000 5.550 28,000 5.560 50,000 5.560 50,000 5.560 50,000 5.560 50,000 5.560 50,000 5.560 50,000 5.650 15,000 5.570 32,800 —9— 08/10/98 PURCHASE CP Assoc 08/11/98 5.540 50,000 CP Country 08/13/98 5.550 32,000 CP SRAC 08/19/98 5.530 50,000 CP Hertz 08/19/98 5.540 50,000 CP Conagra 09/30/98 5.670 48,684 CP Unocal 11/06/98 5.720 20,000 08/11/98 REDEMPTION CP Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CP Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CP Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CP Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CP Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CP Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CP GE Co. 08/11/98 5.550 50,000 1 7,708.33 5.627 CP GE Co. 08/11/98 5.550 50,000 1 7,708.33 5.627 CID Assoc 08/11/98 5.570 50,000 15 116,041.67 5.660 PURCHASE r/ Disc Note FHLB 09/04/98 5.480 26,840 Disc Note FHLB 09/04/98 5.480 50,000 PURCHASE CD World 5.530% 08/31/98 5.550 50,000 CP GECC 08/12/98 5.480 50,000 CP GECC 08/12/98 5.480 50,000 CP GECC 08/12/98 5.480 50,000 CP GECC 08/12/98 5.480 50,000 CP GECC 08/12/98 5.480 50,000 CP GECC 08/12/98 5.480 50,000 CP FMCC 08/19/98 5.480 1,000 CP FMCC 08/19/98 5.480 50,000 CP FMCC 08/19/98 5.480 50,000 CP Unocal 10/23/98 5.680 24,000 08/12/98 SALE r/ Disc Note FHLB Disc Note FHLB 09/04/98 5.480 26,840 1 3,987.31 5.556 09/04/98 5.480 50,000 1 7,429.36 5.556 REDEMPTION CP GECC CP GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 CP GECC 08/12/98 08/12/98 5.480 5.480 50,000 50,000 1 7,611.11 5.556 1 7,611.11 5.556 —8— 08/14198 PURCHASE CID GECC 08/17/98 5.560 09/01/98 5.680 50,000 30,000 Cp Conagra Household 09/01/98 5.530 35,000 Cp Cp Household 09/01/98 5.530 09/01/98 5.530 50,000 50,000 Cp Household 09/01/98 5.530 50,000 Cp Household 06/18/99 5.220 50,000 Disc Note FNMA 06/18/99 5.220 50,000 Disc Note FNMA 08117/98 REDEMPTION 3 23,166.67 5.639 CP GECC 8/17/98 5.560 0 5.560 50,000 50,000 3 23,166.67 5.639 Cp GECC 08/17/98 08/17/98 5.560 23,166.67 23,166.67 5.639 5.639 CIDGECC Cp GECC 08/17/98 5•560 50'000 50,000 3 3 23,166.67 5.639 CID GECC 08/17/98 5.560 08/17/98 5.560 50,000 3 23,166.67 20,299.56 5.639 5.650 Cp GECC 08/17/98 5.570 32,800 4 Cp Conagra PURCHASE Cp Household 08/18/98 5.780 08/18/98 5.780 50,000 50,000 Cp Household 08/18/98 5.800 50,000 CID ASSOC - 08/18/98 5.800 50,000 CID Assoc 08/18/98 5.800 50,000 CID Assoc 08/18/98 5.800 50,000 Cp Assoc GECC 08/18/98 5.820 50,000 Cp GECC 08/18/98 5.820 50,000 Cp Cp GECC 08/18/98 5.820 5.820 50,050,000. 50,000 Cp GECC 08/18/98 PURCHASE r/ Disc Note FHLB 09/04/98 5.840 09/04/98 5.840 1,230 50,000 Disc Note FHLB 08/18/98 REDEMPTION Cp Household 08/18/98 5.780 50,000 1 8,027.78 8,027 78 5.861 5.861 Cp Household 08/18/98 5.780 5.800 50,000 50,000 � 8,055.56 5.881 CID Assoc 08/18/98 08/18/98 5.800 50,000 1 g,055.56 5.881 5.881 CID Assoc CID Assoc 08/18/98 5.800 50,000 1 1 8,055.56 8,083.33 5.901 CID GECC 08/18/98 5.820 08/18/98 5.820 50,000 50,000 1 8,083.33 5.901 Cp GECC CID GECC 08/18/98 5.820 50,000 1 1 8,083.33 8,083.33 5.901 5.901 CID GECC 08/18/98 5.820 50,000 —11— 08/14/98 RRS Treas Bill Treas Bill Treas Note Treas Note Treas Note SALE 9/ co) Morg Stan CP Morg Stan REDEMPTION CP GECC CP GECC CP GECC CP GECC CP GECC CP GECC CP Text Fin SALE r/ Disc Note FHLB Disc Note FHLB Disc Note FHLB Treas Note Treas Note Treas Note RRP Treas Bill Treas Bill PURCHASE 9/ CD Hypo CD Hypo CD Hypo CP Morg Stan CP Morg Stan PURCHASE CP GECC CP GECC CP GECC CP GECC CP GECC 05/27/99 5.260 50,000 05/27/99 5.260 50,000 4.750% 09/30/98 5.165 50,000 4.750% 09/30/98 5.165 50,000 4.750% 09/30/98 5.165 50,000 08/14/98 5.510 50,000 30 229,583.35 5.612 08/14/98 5.510 50,000 30 229,583.35 -5.612 08/14/98 5.560 50,000 1 7,722.22 5.638 08/14/98 5.560 50,000 1 7,722.22 5.638 08/14/98 5.560 50,000 1 7,722.22 5.638 08/14/98 5.560 50,000 1 7,722.22 5.638 08/14/98 5.560 50,000 1 7,722.22 5.638 08/14/98 5.560 50,000 1 7,722.22 5.638 08/14/98 5.650 15,000 1 2,354.17 5.729 09/04/98 5.580 50,000 1 7,564.93 5.657 09/09/98 5.580 25,000 1 3,777.66 5.657 11 /16/98 5.580 27,800 1 4,157.41 5.657 6.000% 06/30/99 5.550 31,096 1 4,749.87 5.627 7.125%' 09/30/99 5.550 20,000 1 3,153.17 5.627 7.875% 11 /15/99 5.550 28,000 1 4,430.29 5.627 02/04/99 5.260 50,000 30 (212,591.67) -5.333 02/04/99 5.260 50,000 30 (212,591.67) -5.333 5.530% 09/30/98 5.520 50,000 5.530% 09/30/98 5.520 50,000 5.530% 09/30/98 5.520 50,000 09/14/98 5.510 50,000 09/14/98 5.510 50,000 08/17/98 5.560 50,000 08/17/98 5.560 50,000 08/17/98 5.560 50,000 08/17/98 5.560 50,000 08/17/98 5.560 50,000 —10— 08/20/98 PURCHASE 9/ CD Hong Kong CD Hong Kong PURCHASE BN B/A BN B/A CD BkBoston CD BkBoston CID Household CID Household CID Household CID Hertz CID GECC CID GECC CID GECC CID GECC CID Amer Exp CID Amer Exp CID Amer Exp CID Heller 08/21/98 REDEMPTION CID Household CID Household CID Household PURCHASE BN Fst Chic BN Fst Chic CD World CID Amer Exp CID Amer Exp CID Amer Exp CID Amer Exp CID Household CID Household CID Enron CID Enron CID Amer Exp CID Amer Exp 08/24/98 REDEMPTION MTN GMAC 5.555% 09/30/98 5.540 5.555% 09/03/98 5.540 5.580% 02/26/99 5.580 5.580% 02/26/99 5.580 5.600% 02/26/99 5.600 5.600% 02/26/99 5.600 08/21 /98 5.520 08/21/98 5.520 08/21 /98 5.520 08/27/98 5.530 08/27/98 5.500 08/27/98 5.500 08/27/98 5.500 08/27/98 5.500 09/01 /98 5.530 09/01 /98 5.530 09/01 /98 5.530 09/10/98 5.660 08/21 /98 5.520 08/21 /98 5.520 08/21 /98 5.520 5.560% 01 /27/99 5.560% 01 /27/99 5.550% 08/31 /98 09/02/98 09/02/98 09/02/98 09/02/98 09/04/98 09/04/98 10/02/98 10/20/98 08/31 /98 08/31 /98 5.560 5.560 5.500 5.520 5.520 5.520 5.520 5.510 5.510 5.660 5.660 5.500 5.500 7.250% 08/24/98 7.548 22,000 50,000 50,000 50,000 40,000 50,000 40,000 50,000 50,000 25,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 25,000 40,000 50,000 50,000 50,000 50,000 42,000 50,000 50,000 50,000 50,000 50,000 50,000 9,129 50,000 50,000 50,000 1 1 1 15,000 1435 6,133.33 5.597 7,666.67 5.597 7,666.67 5.597 4,422,379.17 7.680 —13- 08/18/98 SALE r/ Disc Note FHLB Disc Note FHLB PURCHASE CD CD CD CD CID CID CID CID CID CID CID CID CID CID CID FNMA FNMA World World World World Assoc Assoc Country GECC GECC GECC GECC GECC GECC Heller Heller 08/19/98 REDEMPTION CID Assoc CID Assoc CID FMCC CID FMCC CID FMCC CID SRAC CID Hertz NO PURCHASES 08/20/98 RRS Treas Note Treas Note REDEMPTION CID Bear CID Bear CID Hertz CID Text Fin CID Hertz CID Lehman CID Lehman 09/04/98 5.840 09/04/98 5.840 5.470% 08/16/99 5.559 5.470% 08/16/99 5.559 5.530% 08/31/98 5.550 5.530% 08/31/98 5.550 5.530% 08/31/98 5.550 5.530% 08/31/98 5.550 08/19/98 5.550 08/19/98 5.550 08/27/98 5.550 09/01 /98 5.510 09/01 /98 5.510 09/01 /98 5.510 09/01/98 5.510 09/01 /98 5.510 09/01 /98 5.510 09/04/98 5.670 09/04/98 5.670 1,230 50,000 39,525 50,000 50,000 50,000 50,000 50,000 25,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 25,000 50,000 1 193.69 5.921 1 7,917.42 5.921 08/19/98 5.550 25,000 1 3,854.17 5.627 08/19/98 5.550 50,000 1 7,708.33 5.627 08/19/98 5.480 1,000 8 1,217.78 5.562 08/19/98 5.480 50,000 8 60,888.89 5.562 08/19/98 5.480 50,000 8 60,888.89 5.562 08/19/98 5.530 50,000 9 69,125.00 5.614 08/19/98 5.540 50,000 9 69,250.00 5.624 4.750% 09/30/98 5.100 22,000 4.750% 09/30/98 5.100 50,000 08/20/98 5.530 50,000 38 291,861.11 5.639 08/20/98 5.530 50,000 38 291,861.11 5.639 08/20/98 5.540 26,000 65 260,072.22 5.673 08/20/98 5.700 48,000 73 554,800.00 5.846 08/20/98 5.540 45,000 114 7,898,450.00 5.717 08/20/98 5.500 50,000 127 970,138.89 5.686 08/20/98 5.500 50,000 127 970,138.89 5.686 —12— 08/26198 PURCHASE FHLB 5.500% 08/13/01 5.499 50,000 FNMA 5.490% 08/18/00 5.499 50,000 FNMA 5.490% 08/18/00 5.499. 50,000 FHLB 5.655% 07/10/01 5.494 18,000 08/27198 SALE Treas Note 4.750% REDEMPTION BN Fst Chic 5.530% BN Fst Chic 5.530% BN NBDetroit 5.520% BN NBDetroit 5.520% BN NationsBk 5.560% BN NationsBk 5.560% BN NationsBk 5.560% BN NationsBk 5.560% CD Rabo 5.550% CD Rabo 5.550% CD Montreal 5.570% CD Montreal 5.570% CD Cr Agric 5.580% CD Cr Agric 5.580% Cp FMCC Cp FMCC Cp FMCC CP FMCC CP Hertz CP GECC Cp GECC Cp GECC Cp GECC CP Country Cp Country Cp Country Cp Conagra Cp Conagra Cp Heller Cp Heller Cp GMAC CP GMAC Cp GMAC Cp GMAC Cp Amer Exp Cp Amer Exp Cp Amer Exp Cp Salomon 10/31 /98 5.337 50,000 1760 10,739,639.94 4.469 08/27/98 5.530 50,000 71 545,391.44 545,391.44 5.606 5.606 08/27/98 5.530 50,000 50,000 71 128 981,333.33 5.596 08/27/98 08/27/98 5.520 5.520 50,000 128 333.33 5.5969,333.33 5.637 08/27/98 5.560 50,000 32 1,01 1,019,333.33 5.637 08/27/98 5.560 50,000 50,000 132 132 1,019,333.33 5.637 08/27/98 08/27/98 5.560 5.560 50,000 132 � 9 1,019,333.33 5.637 08/27/98 5.550 50,000 917,291.67 917,291.67 5.627 5.627 08/27/98 5.550 5.570 50,000 50,000 119 135 1'044'375.00 08/27/98 08/27/98 5.570 50,000 35 375.00 5.647 47 5.657 08/27/98 5.580 50,000 135 135 1,046,250.00 1,046,250.00 5.657 08/27/98 5.580 50,000 3 23,000.00 5.599 08/27/98 5.520 50,000 50,000 3 23,000.00 5.599 08/27/98 08/27/98 5.520 5.520 50,000 3 23,000.00 5.599 08/27/98 5.520 50,000 3 23,000.00 26,881.94 5.599 5.612 08/27/98 5.530 25,000 7 7 53,472.22 5.582 08/27/98 08/27/98 5.500 5.500 50,000 50,000 7 53,472.22 5.582 08/27/98 5.500 50,000 7 53,472.22' 53,472.22 5.582 5.582 08/27/98 5.500 50,000 50,000 7 9 69,375.00 5.634 08/27/98 08/27/98 5.550 5.580 50,000 24 186,000.00 5.678 08/27/98 5.580 50,000 24 186,000.00 94,500.00 5.678 5.770 08/27/98 5.670 25,000 50,000 24 24 189,000.00 5.77008/27/98 08/27/98 5.670 5.670 50,000 24 189,000.00 5.770 08/27/98 5.670 50,000 24 189,000.00 207,750.00 5.770 5.640 08/27/98 08/27/98 5.540 5.540 50,000 50,000 27 27 207,750.00 5.640 08/27/98 5.540 50,000 27 207,750.00 207,750.00 5.640 5.640 08/27/98 08/27/98 5.540 5.540 50,000 35,000 27 27 145,425.00 5.640 08/27/98 5.540 50,000 27 207,750.00 5.640 5.640 08/27/98 08/27/98 5.540 5.550 50,000 50,000 27 27 208,750.00 125.00 5.650 —15— 08/24/98 PURCHASE BN B/A 5.550% 02/26/99 5.550 50,000 BN B/A 5.550% 02/26/99 5.550 50,000 BN Fst Chic 5.550% 02/26/99 5.550 50,000 BN Fst Chic 5.550% 02/26/99 5.550 50,000 CD Bayer Lnds 5.580% 09/30/98 5.540 34,000 CD Bayer Lnds 5.580% 09/30/98 5.540 50,000 CD CommerzBk 5.570% 02/26/99 5.570 50,000 CD CommerzBk 5.570% 02/26/99 5.570 50,000 CID FMCC 08/27/98 5.520 50,000 CID FMCC 08/27/98 5.520 50,000 CID FMCC 08/27/98 5.520 50,000 CID FMCC 08/27/98 5.520 50,000 CID Morg Stan 10/13/98 5.510 50,000 CID Morg Stan 10/13/98 5.510 50,000 CID Morg Stan 10/13/98 5.510 50,000 CID Assoc 10/27/98 5.500 17,000 CID Assoc 10/27/98 5.500 50,000 08/25/98 SALE Treas Treas Bill Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Note 4.750% 12/10/98 10/31/98 4.970 5.320 50,000 50.,000 250 1758 1,832,298.63 5.640 Treas Note 4.750% 10/31/98 5.320 50,000 1758 10,739,639.94 10,739,639.94 4.454 4.454 PURCHASE CD Hong Kong 5.580% 10/27/98 5.580 50,000 CD Hong Kong 5.580% 10/27/98 5.580 50,000 FNMA 5.480% 07/09/99 ' 5.514 50,000 CD CIBC 5.540% 09/30/98 5.540 15,000 CD CIBC 5.540% 09/30/98 5.540 50,000 CD Toronto 5.520% 08/27/99 5.580 50,000 CD Toronto 5.520% 08/27/99 5.580 50,000 CD Rabo 5.530% 08/27/99 5.580 50,000 CD Rabo 5.530% 08/27/99 5.580 50,000 CD Bkrs Trst 5.550% 08/27/99 5.600 50,000 CD Bkrs Trst 5.550% 08/27/99 5.600 50,000 08/26/98 SALE Treas Treas Bill Bill 10/07/99 4.915 50,000 216 1,493,263.89 5.453 Treas Bill 10/07/99 4.915 50,000 210 1,493,263.89 5.453 Treas Bill 10/07/99 4.915 50,000 210 1,493,263.89 5.453 _ Treas Bill 12/10/98 4.975 50,000 251 1,838,465.30 5.636 Treas Note 4.750% 12/10/98 10/31/98 4.975 5.329 50,000 50,000 251 1,838,465.30 5.636 1759 11,354,595.11 4.703 —14— 08/28198 PURCHASE CP GECC 08/31/98 5.530 50,000 CP GECC 08/31/98 5.530 50,000 CP GECC 08/31/98 5.530 50,000 CP GECC 08/31/98 5.530 50,000 PURCHASESJ Treas Note 5.635% 11 /30/99 5.530 5.530 50,000 47,000 Treas Note 5.625% 5.625% 11 /30/99 05/15/01 5.520 50,000 Treas Note Note 5.625% 05/15/01 5.520 50,000 Treas Treas Note 5.625% 05/15/01 5.520 48,250 29,650 Treas Note 5.625% 05/15/01 5.520 08/31/98 REDEMPTION CP GECC 08/31 /98 5.530 50,000 3 3 23,041.67 23,041.67 5.609 5.609 CID GECC 08/31/98 08/31 /98 5.530. 5.530 50,000 50,000 3 23,041.67 ' 5.609 CP GECC 08/31/98 5.530 50,000 3 23,041.67 5.609 CP GECC 08/31/98 5.530 50,000 3 23,041.67 5.609 CP GECC 08/31/98 5.530 50,000 3 23,041.67 5.609 CP GECC 08/31 /98 5.540 50,000 3 23,083.33 5.619 CP Helier 08/31/98 5.500 50,000 3 22,916.67 5.578 CP Assoc 08/31 /98 5.500 50,000 3 22,916.67 5.578 CP Assoc 08/31/98 5.500 50,000 3 22,916.67 5.578 CP Assoc 08/31 /98 5.500 50,000 3 22,916.67 5.578 CP CD Assoc World 5.500% 08/31 /98 5.500 42,000 10 100,207.72 5.627 CD World 5.530% 08/31/98 08/31/98 5.50 5.550 50,000 13 100,207.72 5.627 CD World World 5.530% 5.530% 08/31/98 5 50,000 13 100,207.72 5.627 CD CD World 5.530% 08/31/98 50,000 13 100,207.72 154,164.96 5.627 5.627 CD World 5.530% 08/31/98 08/31/98 5.550 5.500 0,000 50,000 20 10 76,388.89 5.584 CP CP Amer Exp Amer Exp 08/31/98 5.500 50,000 10 1806 76,388.89 11,751,597.03 5.584 4.753 Treas Note 4.750% 4.750% 08/31/98 08/31/98 4.753 4.753 50,000 50,000 1816 11,718,142.27 4.731 Treas Note SALE SJ Treas Note 5.625% 11 /30/99 5.530 50,000 3 23,013.09 21,632.44 5.606 5.606 Treas Note 5.625% 11/30/99 05/15/01 5:520 5 50,000 3 23,271.40 5.596 Treas Note 5.625% 5.625% 05/15/01 5.5200 50,000 3 23,271.40 5.596 Treas Treas Note Note 5.625% 05/15/01 5.5 48,250 3 22,457.20 13,800.00 5.596 5.596 Treas Note 5.625% 05/15/01 5.520 29,650 3 —17— 08/27/98 REDEMPTION CP Conagra CP GMAC CP GMAC CP GMAC CP GMAC CP Unocal CP GMAC CP GMAC CP GMAC CP GMAC CP GMAC CP GMAC CP Bkrs Trst CP Bkrs Trst CP Bkrs Trst PURCHASE SBA (FR) CB (FR) GMAC PURCHASE rd Treas Note 08/28/98 REDEMPTION BN NBDetroit BN NBDetroit CP Country CP Country CP Text Fin CP Hertz CP GMAC CP GMAC SALE Treas Note PURCHASE CP Assoc CP Assoc CP Assoc CP Assoc CP Heller CP GECC CP GECC 08/27/98 5.650 35,000 27 148,312.50 5.752 08/27/98 5.530 40,000 69 423,966.67 5.666 08/27/98 5.530 50,000 69 529,958.33 5.666 08/27/98 5.530 50,000 69 529,958.33 5.666 08/27/98 5.530 50,000 69 529,958.33 5.666 08/27/98 5.650 18,000 84 237,300.00 5.805 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 5.875% 08/25/23 5.875 13,262 . 5.813% 04/29/02 5.687 35,000 5.625% 11 /30/99 5.580 50,000 5.520% 08/28/98 5.520 50,000 129 989,000.00 5.596 5.520% 08/28/98 5.520 50,000 129 989,000.00 5.596 08/28/98 5.560 50,000 42 324,333.33 5.674 08/28/98 5.560 43,000 42 278,926.67 5.674 08/28/98 5.700 26,060 66 272,327.00 5.840 08/28/98 5.530 25,000 101 387,868.06 5.695 08/28/98 5.460 50,000 133 10,087,583.33 5.649 08/28/98 5.460 50,000 133 1,008,583.33 5.649 5.625% 11 /30/99 5.580 08/31/98 08/31/98 08/31/98 08/31/98 08/31/98 08/31/98 08/31/98 5.500 5.500 5.500 5.550 5.540 5.530 5.530 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 1 7,730.93 5.657 —16- DES BANK DEPOSITS (000 omitted) DAILY BALANCES A_ 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. AVERAGE DOLLAR DAYS WARRANTS PER BANKS OUTSTANDING $556,395 $2,6769748 4129051 296769748 635,501 195319301 635,501 19,5299,341 6359501 19,6259,060 3169261 194629124 1389735 19219,082 3069713 19219,082 310,641 192199082 266,552 190799,946 266,552 1,044,897 266,552 1,1069262 260,280 1,189,785 260,892 1,067,572 230,271 1,067,572 391,258 1,075,352 2649727 890,488 2649727 894,580 2649727 980,237 427,329 1,472,956 110,482 1 ,493,043 3099209 194939043 130,993 1,493,043 222,268 1,340,859 222,268 1,176,059 222,268 1,014,419 97,229 1,1259228 201,009 1,3809107 129,084 1,380,107 103,972 1,380,107 1619419 1,323,565 a/ $291,012 This consisted The prescribed bank balance for August was $28398729000.00. This 000. consisted a/ P $15793 of $126,485,000.00 in compensating balances 000.00 for July delayed deposit uncollected funds and a deduction of $6,0 , credit. -25- NAME VIC_"ORVI t F Citizens Business Bank Citizens Business Bank TIME_DEPOSIT DEPOSIT eeT;: 02/11/98 YIELD 5.300 P.AB.AMOUNT M 10,000,000.00 MATURITY DATE 09/23/98 Citizens Business Bank 02/11/98 03/11/98 5.320 5,000,000.00 � 10/06/98 Citizens Business Bank 06/09/98 5.270 5.390 10,000,000.00 10/08/98 Citizens Business Bank 07/09/98 5.330 10,000,000.00 12/16/98 Citizens Business 'Bank 08/06/98 5.290 10,000,000.00 02/08/99 WALNUT CR F:K 5,000,000.00 03/09/99 Bank of the West Bank of the West 04/01/98 5.200 14,000,000.00 10/01/98 Bank of the West 04/23/98 05/15/98 5.260 25,000,000.00 10/20/98 5.450 10,000,000.00 05/13/99 TOTAL TIME DEPOSITS AS OF AUGUST 31,1998 $1,763,390,000.00 —24— oM STATF� GO' 0 AUDITOR CALIFORNIA STATE s •G���° or sT�'� roo�ti MARIANNE R EVASii M KURT R. SJOBERG CHIEF DEPUTY STATE AUDITOR STATE AUDITOR Independent Auditors' Report THE GOVERNOR AND THE LEGISLATURE OF THE STATE OF CALIFORNIA audited the general purpose financial statements of the State of California n general We have and and for the year ended )une 30, 1997, as listed in the table of contents.na ementg Our Y responsibility of the States g purpose financial statements are the resPo � general purpose financial statements responsibility is to express an opinion on these our audit. We did not audit the financial statements of the pension also funds, based ono funds. We a which reflect total assets constituting 86 percentOffundsuwh fiduciary �� total assets and audit the financial statements of certain did not enterprise �vel of the enterprise funds. revenues, constituting 89 percent and 90 percent, respect Y� In addition, we did not audit the University of California funds. Finally, we did not tassets the financial statements of certain component unit authorities, which reflof the component and revenues, constituting 97 percent and 93 percent, respectively, unit author ities. The financial statements of the pension trust funds, certain ienterprise f funds, the University of California funds, and certain component unit authorities Shed es of and to above were audited by other auditors whose reports have been ' n insofar as it relates to the amounts included for these funds and entities is our opinion, based solely upon the reports of the other auditors. We conducted our audit in accordance with government auditing standards issued lards. Comptroller General of the United States and generally accepted uditing obtain reasonable P rform the and Those standards require that we plan and pe whether the general purpose financial statements are free of material assurance aboutsupporting the misstatement. An audit includes examining, on a test basis, teev d nts a A�Pa dig also amounts and disclosures in the general purpose financial statements. in the accounting principles used and significant estimates made statement includes assessing e financial sta management, as well as evaluating the overall lre enalofhrP° her auditors provide a presentation. We believe that our audit and Po rts reasonable basis for our opinion. auditors, I the general In our opinion, based upon our audit and the reports of ot�ent fairly,in all material purpose financial statements as listed in the tableCalifornia of as ts of June 30, 1997, and the respects, the financial position of the State o rietary funds and component unit results of its operations and the cash floconformitysofitprunting authorities for the year then ended, in with generally accepted acco principles. BUREAU OF STATE AUDITS 660 ]Street, Suite 300, Sacramento, Califomia 95814 Telephone: (916) 445-0255 Fax: (916) 32?-0019 —27— Notes tD the Ftmuxi l S&denents NOTE 3. DEPOSITS AND IN CSTIHMMM State statutes, bond resolutions, and t policy resolutions allow the primary g t to have investments in United States government securities. eestl I tes of deposit, bankers' acceptances. commercial paper. corporate bonds, bank notes. mortgage loans and notes, other debt securities, repurchase agreements, reverse repurchase agreemmts. equity securities, real estate, mutual fiords, and other investments. As of June 30, the State. including 4isere1 11W presented component units. had inv F a tmmts in securities lending agreements. real estate. investment contracts, mutual fiords. and other inventme 1 totaling $48.4 billion. These investments are not subject to classification. All remaining investments reported as of June 30. are in three categories of credit risk: 1. Insured or registered, or securities held by the State or its agent in the State's name. 2. Uninsured and unregistered. with securities held by the counterparty's trust department or by an agent in the StaWs name. 3. Uninsured and unregistered. with securities held by the countcspariy or by its trust department or by an agent but not in the State's name. The types of reported at year end are representative of the types of ats made during the year. Furthermore, the credit risk associated with the investments reported at year end is representative of the credit risk associated with investments made during the year. 37 —28— State of Cagomia 38 The State Treasurer's Office administers a pooled irnr Wment program for the primary government and for certain se authorities! � and authorities. As of June 30, the special 3�g6 of the State Treaswcer's pooled were approodmately enables the State office pooled investment portfolio. This program Treasurees Office to combine available cash from aIl funds and to current needs. Enterprise funds• trust and invest cash agency funds, and a building authority in the capital projects funds also make separate imestmmAs. As of June 30, the average remaining life of the securities in the account by the State pooled money . Treasurers Office was appraginuLtely 232 days. The State Treasurer's Office also has agreements with certain banks to maintain cash on deposit that does not earn inter income- Ifor ncome earned on these deposits compensates the banks service and uncleared checks that are deposited in the pooled investment program's accounts - All demand and time deposits. totaling appraadmatelY $664 minion. which were held by financial inWtutions as of June 30. were insured by federal depository y insurance or by collateral held by the StateTreasurer's , office or � an agenotof the State rnta ent Code requires officer the State demand d� � time deposits to be deposited conat�eral pledged with the state Treasurer. As of June 30, the State Treasure's Office had amour on deposit with fiscal agents totaling uppradmately $10 a�On- se deposits are related to P� g t investment activities and to principal and interest payments due to bondholders. deposits coUateml insurance or by are insured the S federal �ce in the State's name. eld by as agent of is of pension trust funds are reported at fair value. The plan Raid. an agency is of the Deferred Cora investments are find. are at market value. All other reported at cost or amortized cost. For these investments, no loss is worded when market values decline below cost. as such declines are considered temporary. es and mortgage -backed assets rate not As of June 30, floating en comprised less than 596 of the pooled investmts. For the floating the State rate notes in the portfolio, the interest rem by Treasurees Office pooled in program will rise or fall as the undadying index rate rises or falls. The structure of the floating rate notes to the State Treasurer's Office pooled investment prom partift is such that it hedges the portfolio against the risk of interest rates. The mortgage -backed securities are called is a real estate mortgage irnrestment conduits (RE1ViI )M s security backed by a pool of mortgages. The RE � mtates portfolio have a fixed principal payment schedule. —29— Notes to the finuvtcia! Statements The California wvtrnr-ent wade allows the State Treasurer's Office to enter into reverse rqmrchase dents. as part of its pooled im'estment PmgrRm. A reverse repurchase agreement is a sale of securities with a simultaneous agreement to repurchase them in the future at the same price plus a contract rate of interest. The market value of the securities underlying reverse repurchase agreements normally exceeds the cash received. providing the dealers a margin against a decline in market value of the securities. If the dealers default on their obligations to resell these securities to the State Treasurer's Office or provide securities or cash of equal value, the State Treasurer's Office pooled investment program will suffer an economic loss equal to the difference between the market value plus the accrued interest of the underlying securities and the agreement obligation, including accrued interest During the year ended June 30. the State Treasurer's Office entered into 28 reverse repurchase agreements by temporarily g �g is with a value Of appraarimately $4.4 billion. The maturities of investments made with the proceeds from reverse -repurchaseagreements were matched to the maturities of the agreements. As of June 30. the State Treasurer's Office did not have any reverse repurchase agreements outstanding. State statutes and agency policies permit CaIPERS and SMS to lend its securities to broker -dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future, Third party securities lending agents have been contracted to lend domestic and international equity and debt securities. All securities loans can be terminated on demand by the lender or the borrower. Collateral in the form of cash or other securities is required at 102% and 105% of the fair value of domestic and ' tanational aecuities loaned. respectively. As of June 30. 1997. there was no credit risk of exposure to borrowers because the amount of collateral held exceeded the amounts owed to the borrowers. The cash received as collateral is invested in accordance with Inv estzaent guidelines. The weighted -average maturity of all investments of the cash collateral was less than 90 days as -of June 30. Collateral securities received are not permitted to be pledged or sold unless the borrower defaults. The contracts with the security lending agents require them to indemnify Ca1PERS and STRS if the borrowers fail to return the securities (or if the collateral is not sufficient to replace the securities lent) or if the borrower fails to pay for income distributions by the securities' issuers while the securities are on loan. In accordance with statutes authorizing CalpEM investments, HERS. through its outside investment managers, holds investments in futures and options and enters into forward foreign cumency exchange contracts. Futures and options of approximately $92 million are held for investment purposes as 'of June 30. 1997. Gains and losses on futures and options are determined based upon quoted market values and recorded in the statement of changes in net assets. Forward foreign currency exchange contracts are used primarily to hedge against changes in exchange rates related to M7 —30— State 40 f securities. As of June 30. 1997. CalPERS had aPP icy foreign on net exposure to loss from forward reign $91 mint to the $26.9 billion international debt exchangebwmsaeums olics. CalPERS could be �o� to risk if the and equity portf of the countcrpard� to the contracts are ale to se � �� this risk contracts. CaIPERS went managers rtycredit evaluations and approvals. through co � �d exposure monitoring Pr'oeedures. count�erpartYwill be able to satisfy CaIPERS anticipates that the counterPard their obligations under the contracts• is the carrying value and market value of the Table 2 present were reported by the primary government as of investments June 30. Table 2 Schedule of Iavestmeats - Pdn&WY June 30,1997 (Amounts in Owusands) �9on► q Meriost 3 Vatues Value Pooled InvestinarM * U.S. GoMennrlerrt secUcities.»»......... .»»»»»-»»»»• Deposits.»»....»»....».»..».........»......» Bankers' aocept�u�ces.»».»..»»»»»-»»»»»»»-••••» commercialPaper»»» ...............»...........»...»»»»»..». Cprporatebonds»»....»..»».»»»».....»»»»»»-»»»»»»• 9a* notes..»»..»....».»..»..»...»»»..».......»»..»»..».». Other.... »»»»»»••»-- Tob1 Pooled h-vM111— ell Sgimalely hwested Funds Subject to Cateeorindon U.S. GoamnWnt SOMM"-- ConlfnCW paper.....»..«»........ Corporalsbonds »...»»..»..». Debt securities - Equitysewttlies..».».»....»»»................»..............»... Secxui> ter ng cogeterat»».......»» Otherinyestrrients..--- ....»».»......'." Total Sspa "ft Mvested Funds Subject S 8.745,859 S — $ — S 8.76,832.5W40 S 6,01,40 6.832.540 '— _ 8OM5 8""ne 870.395 —_ 6,UZM 6.785,495 6,"Z756 — 1 em"0 1,567,125 1.WIM — 949.074 NO" 949.074 — _ MAN 29.495 28.495 — 25,7 — 80,009 25,T79.t140 25.T80,009 — . 8,991= 134,512 - 9,126,439 — 2,3M 9,341,905 ,124 2.334,124 — 6,303,615 764 — 6.0C379 ..- 13,244,530 GXM7881 13,244,530 13,244.530 — — 14.131,637 14.131.637 14,131,637 — 110,530.849 110.530 W 125,122.03 —' _ 25,1�O3B 25,122.038 25.122.038 — 4,418.027 4.416.028 418,027 4,_ T47 135,ZT6 — 1135,212A23 165,426,892 To 1>s5,076, Separately Wasted Funds Not Subject to Categorization 8,384,488 8,384,488 Heal estame...»».»»»..»»»»-»»»»»»•»»--»»•-~~ 2,722.170 2.722.170 Vere" capital and pnva% equity Z.045,877 2.045.877 Investrnent 1,758016 1.760.248 Mutual Wrlds»......»»�•»• Waal lents held by broker -deal n Under SOME"24=.M . 24,3TLM loans with cash moral— 1 -IMGMO 1.M3 70 Other......»»..»..».....».......... Total Separately Invested Funds Nat Subject 4O683AM 40,684.816 tD n rizadon, 210,8,7� S 135,2T6 251,6T5,486 S 251,891,548 Tote) S • Approodrnatehl 3% of the pooled wriewnwo an Nrresrmerrls at spscid pwpw aWhoWAss Mich are dsOVAIV pied 00 Mono* uraL For special purpose authorities' separ I* kaasad funds. No Table 4. —31— INVESTMENT ADVISORY BOARD Meeting Date: November 18, 1998 TITLE: Year 2000 Letter and Backup Recovery Center BACKGROUND: Correspondence & Written Material Item C At the September 1998 meeting staff advised that a copy of the vendor letter regarding the status of their Year 2000 compliance would be presented. RECOMMENDATION: Receive & File JW M. Falcdned, Finance Director MEMORANDUM TO: John Falconer, Finance Director FROM: JU19 rrrera, Accounting Manager DATE: November 4, 1998 RE: Year 2000 (Y2K) Letter and Backup Recovery Center This memo is in response to your questions regarding the Y2K Letter to Vendors that do business with the City and the Backup Recovery Center. Y21K Assessment Letter to Vendors The Y2K issue continues to include diverse opinions on the functional and economic implications to government agency information systems when the clock strikes 12:01 a.m. on January 1, 2001. There are an equal number of individuals that believe that the Y2K problem will mean disaster, as there are people that think that the Y2K issue will come and go with little, if any, interruption in service delivery and/or cost impact caused upon organizations. With regard to the Y2K issue, the City of La Quinta, like other responsible government agencies, continues to move forward with the analysis of the Y2K question. The attached letter was provided by the City's computer consultant to assist the City in obtaining information about the Y2K risk from vendors that provide goods and services to the City. This letter will be mailed out to vendors within the next two weeks. Backup Recovery Center The Finance Department religiously performs daily backups of all computer files stored on the City's Novell network file servers. The backup system is also checked daily to verify that the system's backup program saves the files to the tapes. There are four weeks of backup tapes for each of the two network file servers. These are rotated on a 02 weekly basis, with the current week tapes stored in a fire -proof safe inside the City's vault. Each week, these tapes are rotated and used to replace the oldest week of the three weeks of tapes that are stored at the Senior Center. The tapes kept at the Senior Center are also kept in a separate fire -proof safe and in a locked room. At this time, we are working on moving the Civic Center file server that was replaced earlier this year over to the Senior Center. This server would be used to perform the weekly "backup restore" function and ensure the integrity of the nightly backup system. The expanded concept of a Backup Recovery Center is a longer -term program that our computer consultant has been discussing with us. The consultant suggested that the City could look at using a fiber optic conduit that could be installed between the Civic Center and the Senior Center, and run a fiber optic cable to connect the Senior Center file server with the Civic Center network file servers. A software application would then ben installed on the Senior Center file server to allow constant "mirroring" of all files that reside on the Civic Center file servers. If a disaster occurred at the Civic Center, the data would theoretically remain available from the Senior Center and could also be accessed by any users, depending on the degree of damage to computer hardware. The data could also be accessed locally, through the computer directly connected to the Senior Center file server. There are other possibilities for a Backup Recovery Center that would allow better and quicker access to computer files. These will be explored and.recommended to you as part of the 1999-00 fiscal year budget. For this year, we will continue to work diligently to backup, test and restore computer files on a regular basis. We will also continue to work on disaster recovery procedures as part of our Computer Network Operations Manual that we have been developing with our computer consultant. 2 03 T a 0 0 4ht of xpa" 78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 — (760) 777-7000 FAX (760) 777-7101 TDD (760) 777-1227 November 13, 1998 Dear Vendor, The City of La Quinta is greatly concerned with the Year 2000 problem. The City of La Quinta is taking all steps to insure there is no disruption in the City's operations, as it is related to this problem. The City of La Quinta is also concerned with the steps your organization is taking in regards to the Year 2000 problem. We want assurance that your organization has analyzed the Year 2000 problem and its possible impact on the reliability and continuity of the services that you provide to the City of La Quinta. The purpose of this survey is to gather that information. Has your organization identified any Year 2000 problems related not only to computers and software, but any other embedded microchips in systems used to control plant & machinery? Has your organization appointed a Year 2000 coordinator? If yes, provide name & phone number Yes or No Has your organization performed a Year 2000 audit of systems and software, performed either in- house or by an outside consultant organization? Yes or No Has your organization performed actual testing of systems to insure Year 2000 compliance as well as February 29th compliance? Yes or No Does your organization have a plan of replacing non -compliant systems and software by as identified by the Year 2000 audit? Yes or No Has your organization contacted other organizations for which you depend on for delivery of services to your organization, to ensure they are taking steps to identify and correct Year 2000 problems, so they do not affect your organization? Yes or No Please send this survey, along with any other information related to the work your organization is doing with regard to the Year 2000 problem to: Juan Herrera, Accounting Manager, City of La Quinta, P.O. Box 1504, La Quinta, CA 92253-1504. Thank you, John Falconer Finance Director MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 �� INVESTMENT ADVISORY BOARD Meeting Date: November 18, 1998 TITLE: Fiscal Year 97/98 Legislative Update BACKGROUND: Correspondence & Written Material Item D Annually the Investment Advisory Board is presented a legislative update on investment legislation the State of California has passed. RECOMMENDATION: Receive & File ohn M. Falconer, Finance Director INVESTMENTS 55. Local Agencies: Deposit of Funds. AB 1874 Honda). Chapter 81. Statutes of 1998. Existing law prescribes the types of investments in which a local agency may generally invest its funds for deposit. Those investment instruments include negotiable certificates of deposit issued by a nationally or state -chartered bank, savings association, federal association, state or federal credit union, or state -licensed branch of a foreign bank. However, existing law prohibits use of those negotiable certificates of deposit of a credit union if a member of the legislative body of the local agency or an employee of designated offices of the local agency also serves on the board of directors or certain committees of the credit union. This bill instead makes that prohibition applicable if a member of the legislative body of the local agency or any person with investment decision -making authority of those local agency offices also serves on the board of directors or the specified committees of the credit union. 56. Local Agencies: Deposits of Funds. AB 1898 (Honda). Chapter 82, Statutes of 1998. Existing law permits the treasurer or chief fiscal officer of a local agency to submit to the legislative body, chief executive officer, and auditor of the local agency, in lieu of a quarterly report, the most recent statement or statements from certain institutions in which local agency funds have been invested. This bill additionally permits the use of these statements with respect to local agency investments in National Credit Union Share Insurance Fund -insured accounts in a credit union and in accounts insured or guaranteed by the California Credit Union Guaranty Corporation or similarly insured or guaranteed. 57. Local Agency Investments. SB 1793 Greene), Chapter 588. Statutes of 1998. This bill provides that specified percentage limitations on local government investment portfolios are applicable only at the date of purchase, and that, in the event that the market value of a specified collateral falls below the required amount, the entity that put up the collateral will have until the end of the next business day to increase the amount of the collateral before the local agency is required to report that it is out of compliance. 58. Insurance Agents and Brokers, Allowable Investments, Local Bonds. AB 333 (Figueroa). Chapter 163. Statutes of 1998. This bill will make the following changes: 1) authorize fiduciary funds held by an insurance agent, broker or solicitor, surplus line broker, or bail agent, as premium or bail, to be maintained in designated types of state and local bonds and highly rated short-term notes as an additional option to U.S.° Government bonds and treasury notes; 2) specify that fiduciary funds placed in state and local government obligations must be maintained in obligations issued by the State of California and its political subdivisions, including general obligations bonds, revenue bonds, and short term notes that mature in less than one year; 3) require that these government obligations receive a rating of at least Aal, MIG-1, V1VIIG-1 or Prime-1 by Moody's Investor Service, Inc., or AA, SP-1 or A-1 by Standard and Poor's Corporation in order to qualify for deposit of these fiduciary funds; and 4) stipulate that the insurance agency or broker is responsible for the principal of fiduciary funds he or she maintains, whether U.S. Government or state and local bonds, and is obligated for any loss in value to the principal. • STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT AUGUST 1998 Table of Contents SUMLLVIARY.................... ................ ..........................................•.............................1 SELECTEDINVESTMENT DATA....................................................................2 PORTFOLIOCOMPOSITION...........................................................................3 INVESTMENTTRANSACTIONS......................................................................4 TIMEDEPOSITS................................................................................................20 DEMANDBANK DEPOSITS............................................................................25 POOLED MONEY INVESTMENT BOARD DESIGNATION .....................26 INDEPENDENT AUDITORS' REPORT............................................27 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF AUGUST 1998 WITH AUGUST .1997 (Dollars in Thousands) Total Time Deposit Transactions Amount $1,023,200 $581,700 + $441,500 Number 53 37 + 16 Average Workday Investment Activity $1,244,589 $2,774,017 - $1,529,428 Prescribed Demand Account Balances For Services $132,551 $170,159 - $37,608 For Uncollected Funds $151,320 $149,733 + $1,587 —1— MATT FONG STATE TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) Change in August 31,1998 Percent From Tyne of Security Amount Percent Previous Month Governments Bills $29291,093 7.52 - 1.11 Bonds 0 0 0 Notes 5,2239904 17.15 - .38 Strips 0 0 0 Total Governments $7,514,997 24.67 - 1.49 Federal Agency Coupons $2,465,453 8.10 + 1.24 Certificates of Deposit 693039688 20.70 + 4.60 Bank Notes 1,206,000 3.96 - 34 Bankers Acceptances 0 0 - .03 Repurchases 34%000 1.12 + 1.12 Federal Agency Discount Notes 754,401 2.48 + .39 Time Deposits 197639390 5.79 + .51 GNMA's 21,229 .01 0 Commercial Paper 6,594,685 21.65 - 5.75 FHLMC 21,387 .07 0 Corporate Bonds 1,8119,321 5.95 + .36 Pooled Loans 19999,517 6.56 + .14 GF Loans . 0 0 0 Reversed Repurchases -3219671 -1.06 + .75 Total, All Types $309455,397 100 INVESTMENT ACTIVITY Pooled Money Other Time Deposits TOTALS. PMIA Monthly Average Effective Yield Year to Date Yield for Last Day of Month August 1998 July 1998 Number Amount Number Amount 550 $ 2591139159 571 $ 259,645,099 9 $ 37,539 7 $ 167,954 53 $ 19023,200 54 $ 8137000 612 $ 269173,898 632 $ 269626,053 5.652 5.652 5.652 5.652 —2— Commeri Papei 21.650) Repurcf' 1.121 Pooled Money Investment Account Portfolio Composition $30.5 Billion Loans Reverses Corporate 6.56% -1'06% CD's/BN's 24.66% asuries -.67% Time Deposits 5.79% Mortgages 0.08% icies 18% 8/31 /98 C Treasuries ® Time Deposits ■ Mortgages ® Agencies ■ CD's/BN's ® Bank Acceptances ® Repurchases • Commercial Paper ® Corporate Bonds O Loans * Reverses -3- 08/03/98 REDEMPTION BA U/B Calif 08/03/98 5.530 $10,900 60 100,461.67 5.658 CD Stnrd Ch 5.600% 08/03/98 5.570 50,000 94 727,250.61 5.647 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP GECC 08/03/98 5.660 50,000 3 23,583.33 5.741 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Amer Exp 08/03/98 5.650 50,000 4 31,388.89 5.732 CP Salomon 08/03/98 5.600 35,000 7 38,111.11 5.683 CP Salomon 08/03/98 5.600 50,000 7 54,444.44 5.683 CP Country 08/03/98 5.620 10,418 7 11,384.56 " 5.704 CP Country 08/03/98 5.620 50,000 7 54,638.89 5.704 CP Hertz 08/03/98 5.620 30,000 7 32,783.33 5.704 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP FMCC. 08/03/98 5.530 50,000 13 99,847.22 5.618 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP FMCC 08/03/98 5.530 50,000 13 99,847.22 5.618 CP Bear 08/03/98 5.520 50,000 14 107,333.35 5.608 CP Bear 08/03/98 5.520 50,000 14 107,333.35 5.608 CP Merrill 08/03/98 5.530 50,000 25 192,013.89 5.628 CP Merrill 08/03/98 5.530 13,000 25 49,923.61 5.628 CP Country 08/03/98 5.555 36,250 25 139,713.54 5.648 CP Country 08/03/98 5.570 33,000 47 239,974.17 5.688 CP Conagra 08/03/98 5.630 29,000 47 213,158.06 5.750 CP Hertz 08/03/98 5.560 20,000 14 43,244.44 5.649 CP FMCC 08/03/98 5.520 50,000 14 107,333.33 5.608 CP Heller 08/03/98 5.750 50,000 48 383,333.33 5.874 CP Helleer 08/03/98 5.750 50,000 48 383,333.33 5.874 CP SRAC 08/03/98 5.480 50,000 103 783,944.44 5.644 MTN Chrysler 6.600% 08/03/98 6.500 13,800 756 1,859,044.00 6.500 PURCHASE CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP GECC 08/04/98 5.620 50,000 CP Hertz 08/05/98 5.600 50,000 CP Country 08/27/98 5.580 50,000 CP Country 08/27/98 5.580 50,000 CP Conagra 08/27/98 5.670 25,000 CP Conagra 08/27/98 5.670 50,000 CP Heller 08/27/98 5.670 50,000 CP Heller 08/27/98 5.670 50,000 —4— 08/04/98 REDEMPTION CID GECC 08/04/98 5.620 50,000 1 7,805.56 5.698 CID GECC 08/04/98 5.620 50,000 1 7,805.56 5.698 CID GECC 08/04/98 5.620 50,000 1 7,805.56 5.698 CID GECC 08/04/98 5.620 50,000 1 7,805.56 5.698 CID GECC 08/04/98 5.620 50,000 1 7,805.56 5.698 CID GECC 08/04/98 5.620 50,000 1 7,805.56 5.698 CID FMCC 08/04/98 5.660 50,000 5 39,305.56 5.743 CID FMCC 08/04/98 5.660 50,000 5 39,305.56 5.743 CID FMCC 08/04/98 5.660 50,000 5 39,305.56 5.743 CID FMCC 08/04/98 5.660 50,000 5 39,305.56 5.743 CID SRAC 08/04/98 5.600 50,000 8 62,222.22 5.684 CID Country 08/04/98 5.550 25,000 14 53,958.33 5.639 CID Amer Exp 08/04/98 5.520 30,000 15 69,000.00 5.609 CID Amer Exp 08/04/98 5.520 50,000 15 115,000.00 5.520 PURCHASE CD Svenska 5.590% 12/02/98 5.570 50,000 CD Svenska 5.590% 12/02/98 5.570 50,000 CD Rabo 5.620% 01/27/99 5.610 50,000 CD Rabo 5.620% 01/27/99 5.610 50,000 CD UB Calif 5.650% 01/27/99 5.650 50,000 CD U/B Calif 5.650% 01/27/99 5.650 50,000 CID GECC 08/05/98 5.540 40,000 CID GECC 08/05/98 5.540 50,000 CID GECC 08/05/98 5.540 50,000 CID GECC 08/05/98 5.540 50,000 CID GECC 08/05/98 5.540 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Amer Exp 08/07/98 5.530 50,000 CID Merrill 08/10/98 5.510 50,000 CID Merrill 08/10/98 5.510 13,000 ' CID Merrill 08/10/98 5.510 50,000 CID Lehman 01/27/99 5.520 50,000 CID Lehman 01/27/99 5.200 50,000 08/05/98 REDEMPTION CID GECC 08/05/98 5.540 40,000 1 6,155.56 5.617 CID GECC 08/05/98 5.540 50,000 1 7,694.44 5.617 CID GECC 08/05/98 5.540 50,000 1 7,694.44 5.617 CP GECC 08/05/98 5.540 50,000 1 7,694.44 5.617 CID GECC 08/05/98 5.540 50,000 1 7,694.44 5.617 —5— 08/05/98 REDEMPTION CID Hertz 08/05/98 5.600 50,000 2 15,555.56 5.679 CID Comnwealth 08/05/98 5.770 14,000 50 112,194.44 5.897 CID Hertz 08/05/98 5.540 25,000 27 103,875.00 5.640 CID Bear 08/05/98 5.540 50,000 97 746,361.11 5.702 PURCHASE CID GECC 08/06/98 5.490 50,000 CID GECC 08/06/98 5.490 50,000 CID GECC 08/06/98 5.490 50,000 CP GECC 08/06/98 5.490 50,000 CID GECC 08/06/98 5.490 50,000 CID GECC 08/06/98 5.490 50,000 08/06/98 REDEMPTION CID GECC 08/06/98 5:490 50,000 1 7,625.00 5.567 CID GECC 08/06/98 5.490 50,000 1 7,625.00 5.567 CID GECC 08/06/98 5.490 50,000 1 7,625.00 5.567 CID GECC 08/06/98 5.490 50,000- 1 7,625.00 5.567 CID GECC 08/06/98 5.490 50,000 1 7,625.00 5.567 CID GECC 08/06/98 5.490 50,000 1 7,625.00 5.567 CID GMAC .08/06/98 5.460 22,835 113 391,353.84 5.632 PURCHASE CID Assoc 08/07/98 5.530 50,000 CID Assoc 08/07/98 5.530 35,000 CID GECC 08/07/98 5.530 50,000 CID GECC 08/07/98 5.530 50,000 08/07/98 REDEMPTION CID Assoc 08/07/98 5.530 50,000 1 7,680.56 5.607 CID Assoc 08/07/98 5.530 35,000 1 5,376.39 5.607 CID GECC 08/07/98 5.530 50,000 1 7,680.56 5.607 CID GECC 08/07/98 5.530 50,000 1 7,680.56. 5.607 CID Amer Exp 08/07/98 5.530 50,000 3 23,041.67 5.609 CID Amer Exp 08/07/98 5.530 50,000 3 23,041.67 5.609 CID Amer Exp 08/07/98 5.530 50,000 3 23,041.67 5.609 CID Amer Exp 08/07/98 5.540 25,000 17 65,402.78 5.631 CID Amer Exp 08/07/98 5.540 50,000 17 130,805.56 5.631 CID Amer Exp 08/07/98 5.530 50,000 3 23,041.67 5.609 CID Conagra 08/07/98 5.770 44,445 8 56,988.37 5.857 CID Conagra 08/07/98 5.770 50,000 8 64,111.11 5.857 CID Enron 08/07/98 5.680 50,000 11 86,777.78 5.768 CID Baxter 08/07/98 5.625 10,000 45 70,312.50 5.743 CID Comnwealth 08/07/98 5.820 20,000 49 158,433.33 5.947 CID Salomon 08/07/98 5.540 50,000 52 400,111.11 5.662 Q:Z 08/07/98 PURCHASE CP GECC 08/10/98 5.470 50,000 CP GECC 08/10/98 5.470 50,000 CP GECC 08/10/98 5.470 50,000 CP GECC 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Assoc 08/10/98 5.470 50,000 CP Hertz 08/13/98 5.510 50,000 CD Westdeut 5.630% 01/27/99 5.630 50,000 CD BkBoston 5.610% 01/27/99 5.610 50,000 CD BkBoston 5.610% 01/27/99 5.610 10,000 CD Nova Scot 5.590% 01/27/99 5.590 50,000 CD Nova Scot 5.590% 01/27/99 5.590 50,000 CD WestPac Bk 5.580% 09/08/98 5.560 15,000 CD CommerzBk 5.590% 12/29/98 5.580 30,000 CD BN Paris 5.660% 02/04/99 5.630 25,000 08/10/98 REDEMPTION CP GECC 08/10/98 5.470 50,000 3 22,791.67 5.548 CP GECC 08/10/98 5.470 50,000 3 22,791.67 5.548 CP GECC 08/10/98 5.470 50,000 3 22,791.67 5.548 CP GECC 08/10/98 5.470 50,000 3 22,791.67 5.548 CP Assoc 08/10/98 5.470 50,000 3 22,791.67 5.548 CP Assoc 08/10/98 5.470 50,000 3 22,791.67 5.548 CP Assoc 08/10/98 5.470 50,000 3 22,791.67 5.548 CP Assoc 08/10/98 5.470 50,000 3 22,791.67 5.548 CP Amer Exp 08/10/98 5.510 50,000 6 45,916.67 5.591 CP Amer Exp 08/10/98 5.510 50,000 6 45,916.67 5.591 CP Amer Exp 08/10/98 5.510 50,000 6 45,916.67 5.591 CP Amer Exp 08/10/98 5.510 50,000 6 45,916.67 5.591 CP Assoc 08/10/98 5.570 50,000 14 108,305.56 5.659 CP Assoc 08/10/98 5.570 50,000 14 108,305.56 5.659 CP Assoc 08/10/98 5.570 50,000 14 108,305.56 5.659 CP Bear 08/10/98 5.540 50,000 20 153,888.89 5.634 CP Bear 08/10/98 5.540 50,000 20 153,888.89 5.634 PURCHASE CP GE Co. 08/11/98 5.550 50,000 CP GE Co. 08/11/98 5.550 50,000 CP GE Co. 08/11/98 5.550 50,000 CP GE Co. 08/11/98 5.550 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 CP Assoc 08/11/98 5.540 50,000 —7— 08/10/98 PURCHASE CID Assoc 08/11/98 5.540 50,000 CID Country 08/13/98 5.550 32,000 CID SRAC 08/19/98 5.530 50,000 CID Hertz 08/19/98 5.540 50,000 CID Conagra 09/30/98 5.670 48,684 CID Unocal 11 /06/98 5.720 20,000 08/11/98 REDEMPTION CID Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CID Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CID Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CID Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CID Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CID Assoc 08/11/98 5.540 50,000 1 7,694.44 5.617 CID GE Co. 08/11/98 5.550 50,000 1 7,708.33 5.627 CID GE Co. 08/11/98 5.550 50,000 1 7,708.33 5.627 CID Assoc 08/11/98 5.570 50,000 15 116,041.67 5.660 PURCHASE r/ Disc Note FHLB 09/04/98 5.480 26,840 Disc Note FHLB 09/04/98 5.480 50,000 PURCHASE CD World 5.530% 08/31 /98 5.550 50,000 CID GECC 08/12/98 5.480 50,000 CID GECC 08/12/98 5.480 50,000 CID GECC 08/12/98 5.480 50,000 CID GECC 08/12/98 5.480 50,000 CID GECC 08/12/98 5.480 50,000 CID GECC 08/12/98 5.480 50,000 CID FMCC 08/19/98 5.480 1,000 CID FMCC 08/19/98 5.480 50,000 CID FMCC 08/19/98 5.480 50,000 CID Unocal 10/23/98 5.680 24,000 08/12/98 SALE -c/ Disc Note FHLB 09/04/98 5.480 26,840 1 3,987.31 5.556 Disc Note FHLB 09/04/98 5.480 50,000 1 7,429.36 5.556 REDEMPTION CID GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 CID GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 CID GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 —8— 08/12/98 REDEMPTION CP GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 CP GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 CP GECC 08/12/98 5.480 50,000 1 7,611.11 5.556 FNMA 5.350% 08/12/98 5.350 10,000 1828 2,677,972.22 5.351 PURCHASE CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 CP GMAC 08/13/98 5.560 50,000 08/13/98 REDEMPTION CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP GMAC 08/13/98 5.560 50,000 1 7,722.22 5.638 CP Country 08/13/98 5.550 32,000 3 14,800.00 5.629 CP Hertz 08/13/98 5.510 50,000 6 45,916.67 5.591 PURCHASE rJ Disc Note FHLB 09/04/98 5.580 50,000 Disc Note FHLB 09/09/98 5.580 25,000 Disc Note FNMA 11/16/98 5.580 27,800 Treas Note 6.000% 06/30/99 5.550 31,096 Treas Note 7.125% 09/30/99 5.550 20,000 Treas Note 7.875% 11 /15/99 5.550 28,000 PURCHASE CP GECC 08/14/98 5.560 50,000 CP GECC 08/14/98 5.560 50,000 CP GECC 08/14/98 5.560 50,000 CP GECC 08/14/98 5.560 50,000 CP GECC 08/14/98 5.560 50,000 CP GECC 08/14/98 5.560 50,000 CP Text Fin 08/14/98 . 5.650 15,000 CP Conagra 08/17/98 5.570 32,800 Mm 08/14/98 RRS Treas Bill 05/27/99 5.260 50,000 Treas Bill 05/27/99 5.260 50,000 Treas Note 4.750% 09/30/98 5.165 50,000 Treas Note 4.750% 09/30/98 5.165 50,000 Treas Note 4.750% 09/30/98 5.165 50,000 SALE g/ CP Morg Stan 08/14/98 5.510 50,000 30 229,583.35 5.612 CP Morg Stan 08/14/98 5.510 50,000 30 229,583.35 5.612 REDEMPTION CP GECC 08/14/98 5.560 50,000 1 7,722.22 5.638 CP GECC 08/14/98 5.560 50,000 1 7,722.22 5.638 CP GECC 08/14/98 5.560 50,000 1 7,722.22 5.638 CP GECC 08/14/98 5.560 50,000 1 7,722.22 5.638 CP GECC 08/14/98 5.560 50,000 1 7,722.22 5.638 CP GECC 08/14/98 5.560 50,000 1 7,722.22 5.638 CP Text Fin 08/14/98 5.650 15,000 1 2,354.17 5.729 SALE s l Disc Note FHLB 09/04/98 5.580 50,000 1 7,564.93 5.657 Disc Note FHLB 09/09/98 5.580 25,000 1 3,777.66 5.657 Disc Note FHLB 11/16/98 5.580 27,800 1 4,157.41 5.657 Treas Note 6.000% 06/30/99 5.550 31,096 1 4,749.87 5.627 Treas Note 7.125% 09/30/99 5.550 20,000 1 3,153.17 5.627 Treas Note 7.875% 11 /15/99 5.550 28,000 1 4,430.29 5.627 RRP Treas Bill 02/04/99 5.260 50,000 30 (212,591.67) -5.333 Treas Bill 02/04/99 5.260 50,000 30 (212,591.67) -5.333 PURCHASE S/ CD Hypo 5.530% 09/30/98 5.520 50,000 CD Hypo 5.530% 09/30/98 5.520 50,000 CD Hypo 5.530% 09/30/98 5.520 50,000 CP Morg Stan 09/14/98 5.510 50,000 CP Morg Stan 09/14/98 5.510 50,000 PURCHASE CP GECC 08/17/98 5.560 50,000 CP GECC 08/17/98 5.560 50,000 CP GECC 08/17/98 5.560 50,000 CP GECC 08/17/98 5.560 50,000 CP GECC 08/17/98 5.560 50,000 —10— 08114/98 PURCHASE CP GECC CP Conagra CP Household CP Household CP Household CP Household Disc Note FNMA Disc Note FNMA 08/17/98 REDEMPTION CP GECC CP GECC CP GECC CP GECC CP GECC CP GECC CP Conagra PURCHASE CP Household CP Household CP Assoc CP Assoc CP Assoc CP Assoc CP GECC CP GECC CP GECC CP GECC PURCHASE !r/ Disc Note FHLB Disc Note t FHLB 08/18/98 REDEMPTION CP Household CP Household CP Assoc CP Assoc CP Assoc CP GECC CP GECC CP GECC CP GECC 08/17/98 5.560 50,000 09/01 /98 5.680 30,000 09/01 /98 5.530 35,000 09/01 /98 5.530 50,000 09/01 /98 5.530 50,000 09/01 /98 5.530 50,000 06/18/99 5.220 50,000 06/18/99 5.220 50,000 08/17/98 5.560 50,000 3 23,166.67 5.639 08/17/98 5.560 50,000 3 23,166.67 5.639 08/17/98 5.560 50,000 3 23,166.67 5.639 08/17/98 5.560 50,000 3 23,166.67 5.639 08/17/98 5.560 50,000 3 23,166.67 5.639 08/17/98 5.560 50,000 3 23,166.67 5.639 08/17/98 5.570 32,800 4 20,299.56 5.650 08/18/98 5.780 50,000 08/18/98 5.780 50,000 08/18/98 5.800 50,000 08/18/98 5.800 50,000 08/18/98 5.800 50,000 08/18/98 5.800 50,000 08/18/98 5.820 50,000 08/18/98 5.820 50,000 08/18/98 5.820 50,000 08/18/98 5.820 50,000 09/04/98 5.840 1,230 09/04/98 5.840 50,000 08/18/98 5.780 50,000 1 8,027.78 5.861 08/18/98 5.780 50,000 1 8,027.78 5.861 08/18/98 5.800 50,000 1 8,055.56 5.881 08/18/98 5.800 50,000 1 8,055.56 5.881 08/18/98 5.800 50,000 1 8,055.56 5.881 08/18/98 5.820 50,000 1 8,083.33 5.901 08/18/98 5.820 50,000 1 8,083.33 5.901 08/18/98 5.820 50,000 1 8,083.33 5.901 08/18/98 5.820 50,000 1 8,083.33 5.901 —11— 08/18/98 SALE rI Disc Note FHLB Disc Note FHLB PURCHASE FNMA FNMA CD World CD World CD World CD World CP Assoc CP Assoc CID Country CID GECC CID GECC CID GECC CID GECC CID GECC CID GECC CP Heller CID Heller 08/19/98 REDEMPTION CID Assoc CID Assoc CP FMCC CID FMCC CID FMCC CID SRAC CID Hertz NO PURCHASES 08/20/98 RRS Treas Note Treas Note REDEMPTION CID Bear CID Bear CP Hertz CP Text Fin CID Hertz CP Lehman CID Lehman 09/04/98 5.840 1,230 1 193.69 5.921 09/04/98 5.840 50,000 1 7,917.42 5.921 5.470% 08/16/99 5.559 39,525 5.470% 08/16/99 5.559 50,000 5.530% 08/31 /98 5.550 50,000 5.530% 08/31 /98 5.550 50,000 5.530% 08/31 /98 5.550 50,000 5.530% 08/31/98 5.550 50,000 08/19/98 5.550 25,000 08/19/98 5.550 50,000 08/27/98 5.550 50,000 09/01/98 5.510 50,000 09/01/98 5.510 50,000 09/01/98 5.510 50,000 09/01/98 5.510 50,000 09/01/98 5.510 50,000 09/01/98 5.510 50,000 09/04/98 5.670 25,000 09/04/98 5.670 50,000 08/19/98 5.550 25,000 1 3,854.17 5.627 08/19/98 5.550 50,000 1 7,708.33 5.627 08/19/98 5.480 1,000 8 1,217.78 5.562 08/19/98 5.480 50,000 8 60,888.89 5.562 08/19/98 5.480 50,000 8 60,888.89 5.562 08/19/98 5.530 50,000 9 69,125.00 5.614 08/19/98 5.540 50,000 9 69,250.00 5.624 4.750% 09/30/98 5.100 22,000 4.750% 09/30/98 5.100 50,000 08/20/98 5.530 50,000 38 291,861.11 5.639 08/20/98 5.530 50,000 38 291,861.11 5.639 08/20/98 5.540 26,000 65 260,072.22 5.673 08/20/98 5.700 48,000 73 554,800.00 5.846 08/20/98 5.540 45,000 114 7,898,450.00 5.717 08/20/98 5.500 50,000 127 970,138.89 5.686 08/20/98 5.500 50,000 127 9701138.89 5.686 —12— 08/20/98 PURCHASE g/ CD Hong Kong CD Hong Kong PURCHASE BN B/A BN B/A CD BkBoston CD BkBoston CP Household CP Household CP Household CP Hertz CP GECC CP GECC CP GECC CP GECC CP Amer Exp CP Amer Exp CP Amer Exp CP Heller 08/21/98 REDEMPTION CP Household CP Household CP Household PURCHASE BN Fst Chic BN Fst Chic CD World CP Amer Exp CP Amer Exp CP Amer Exp CP Amer Exp CP Household CP Household CP Enron CP Enron CP Amer Exp CP Amer Exp 08/24/98 REDEMPTION MTN GMAC 5.555% 09/30/98 5.540 5.555% 09/03/98 5.540 5.580% 02/26/99 5.580 5.580% 02/26/99 5.580 5.600% 02/26/99 5.600 5.600% 02/26/99 5.600 08/21 /98 5.520 08/21 /98 5.520 08/21 /98 5.520 08/27/98 5.530 08/27/98 5.500 08/27/98 5.500 08/27/98 5.500 08/27/98 5.500 09/01 /98 5.530 09/01 /98 5.530 09/01 /98 5.530 09/10/98 5.660 08/21 /98 5.520 08/21 /98 5.520 08/21 /98 5.520 5.560% 01 /27/99 .5.560 5.560% 01 /27/99 5.560 5.550% 08/31 /98 5.500 09/02/98 5.520 09/02/98 5.520 09/02/98 5.520 09/02/98 5.520 09/04/98 5.510 09/04/98 5.510 10/02/98 5.660 10/20/98 5.660 08/31 /98 5.500 08/31 /98 5.500 7.250% 08/24/98 7.548 22,000 50,000 50,000 50,000 40,000 50,000 40,000 50,000 50,000 25,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 25,000 40,000 50,000 50,000 50,000 50,000 42,000 50,000 50,000 50,000 50,000 50,000 50,000 9,129 50,000 50,000 50,000 1 6,133.33 5.597 1 7,666.67 5.597 1 7,666.67 5.597 15,000 1435 4,422,379.17 7.680 —13- 08/24/98 PURCHASE BN B/A 5.550% 02/26/99 5.550 50,000 BN B/A 5.550% 02/26/99 5.550 50,000 BN Fst Chic 5.550% 02/26/99 5.550 50,000 BN Fst Chic 5.550% 02/26/99 5.550 50,000 CD Bayer Lnds 5.580% 09/30/98 5.540 34,000 CD Bayer Lnds 5.580% 09/30/98 5.540 50,000 CD CommerzBk 5.570% 02/26/99 5.570 50,000 CD CommerzBk 5.570% 02/26/99 5.570 50,000 CP FMCC 08/27/98 5.520 50,000 CP FMCC 08/27/98 5.520 50,000 CP FMCC 08/27/98 5.520 50,000 CP FMCC 08/27/98 5.520 50,000 CP Morg Stan 10/13/98 5.510 50,000 CP Morg Stan 10/13/98 5.510 50,000 CP Morg Stan 10/13/98 5.510 50,000 CP Assoc 10/27/98 5.500 17,000 CP Assoc 10/27/98 5.500 50,000 08/25/98 SALE Treas Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Bill 12/10/98 4.970 50,000 250 1,832,298.63 5.640 Treas Note 4.750% 10/31 /98 5.320 50,000 1758 10,739,639.94 4.454 Treas Note 4.750% 10/31 /98 5.320 50,000 1758 10,739,639.94 4.454 PURCHASE CD Hong Kong 5.580% 10/27/98 5.580 50,000 CD Hong Kong 5.580% 10/27/98 5.580 50,000 FNMA 5.480% 07/09/99 5.514 50,000 CD CIBC 5.540% 09/30/98 5.540 15,000 CD CIBC 5.540% 09/30/98 5.540 50,000 CD Toronto 5.520% 08/27/99 5.580 50,000 CD Toronto 5.520% 08/27/99 5.580 50,000 CD Rabo 5.530% 08/27/99 5.580 50,000 CD Rabo 5.530% 08/27/99 5.580 50,000 CD Bkrs Trst 5.550% 08/27/99 5.600 50,000 CD Bkrs Trst 5.550% 08/27/99 5.600 .50,000 08/26/98 SALE Treas Bill 10/07/99 . 4.915 50,000 210 1,493,263.89 5.453 Treas Bill 10/07/99 4.915 50,000 210 1,493,263.89 5.453 Treas Bill 10/07/99 4.915 50,000 210 1,493,263.89 5.453 Treas Bill 12/10/98 4.975 50,000 251 1,838,465.30 5.636 Treas Bill 12/10/98 4.975 50,000 251 1,838,465.30 5.636 Treas Note 4.750% 10/31/98 5.329 50,000 1759 11,354,595.11 4.703 —14— 08/26/98 PURCHASE FHLB 5.500% 08/13/01 5.499 50,000 FNMA 5.490% 08/18/00 5.499 50,000 FNMA 5.490% 08/18/00 5.499 50,000 FHLB 5.655% 07/10/01 5.494 18,000 08/27/98 SALE Treas Note 4.750% 10/31/98 5.337 50,000 1760 10,739,639.94 4.469 REDEMPTION BN Fst Chic 5.530% 08/27/98 5.530 50,000 71 545,391.44 5.606 BN Fst Chic 5.530% 08/27/98 5.530 50,000 71 545,391.44 5.606 BN NBDetroit 5.520% 08/27/98 5.520 50,000 128 981,333.33 5.596 BN NBDetroit 5.520% 08/27/98 5.520 50,000 128 981,333.33 5.596 BN NationsBk 5.560% 08/27/98 5.560 50,000 132 1,019,333.33 5.637 BN NationsBk 5.560% 08/27/98 5.560 50,000 132 1,019,333.33 5.637 BN NationsBk 5.560% 08/27/98 5.560 50,000 132 1,019,333.33 5.637 BN NationsBk 5.560% 08/27/98 5.560 50,000 132 1,019,333.33 5.637 CD Rabo 5.550% 08/27/98 5.550 50,000 119 917,291.67 5.627 CD Rabo 5.550% 08/27/98 5.550 50,000 119 917,291.67 5.627 CD Montreal 5.570% 08/27/98 5.570 50,000 135 1,044,375.00 5.647 CD Montreal 5.570% 08/27/98 5.570 50,000 135 1,044,375.00 5.647 CD Cr Agric 5.580% 08/27/98 5.580 50,000 135 1,046,250.00 5.657 CD Cr Agric 5.580% 08/27/98 5.580 50,000 135 1,046,250.00 5.657 CP FMCC 08/27/98 5.520 50,000 3 23,000.00 5.599 CP FMCC 08/27/98 5.520 50,000 3 23,000.00 5.599 CP FMCC 08/27/98 5.520 50,000 3 23,000.00 5.599 CP FMCC 08/27/98 5.520 50,000 3 23,000.00 5.599 CP Hertz 08/27/98 5.530 25,000 7 26,881.94 5.612 CP GECC 08/27/98 5.500 50,000 7 53,472.22 5.582 CP GECC 08/27/98 5.500 50,000 7 53,472.22 5.582 CP GECC 08/27/98 5.500 50,000 7 53,472.22 5.582 CP GECC 08/27/98 5.500 50,000 7 53,472.22 5.582 CP Country 08/27/98 5.550 50,000 9 69,375.00 5.634 CP Country 08/27/98 5.580 50,000 24 186,000.00 5.678 CP Country 08/27/98 5.580 50,000 24 186,000.00 5.678 CP Conagra 08/27/98 5.670 25,000 24 94,500.00 5.770 CP Conagra 08/27/98 5.670 50,000 24 189,000.00 5.770 CP Heller 08/27/98 5.670 50,000 24 189,000.00 5.770 CP Heller 08/27/98 5.670 50,000 24 189,000.00 5.770 CP GMAC 08/27/98 5.540 50,000 27 207,750.00 5.640 CP GMAC 08/27/98 5.540 50,000 27 207,750.00 5.640 CP GMAC 08/27/98 5.540 50,000 27 207,750.00 5.640 CP GMAC 08/27/98 5.540 50,000 27 207,750.00 5.640 CP Amer Exp 08/27/98 5.540 35,000 27 145,425.00 5.640 CP Amer Exp 08/27/98 5.540 50,000 27 207,750.00 5.640 CP Amer Exp 08/27/98 5.540 50,000 27 207,750.00 5.640 CP Salomon 08/27/98 5.550 50,000 27 208,125.00 5.650 —15— 08/27/98 REDEMPTION CID Conagra CID GMAC CID GMAC CID GMAC CID GMAC CID Unocal CID GMAC CID GMAC CID GMAC CID GMAC CID GMAC CID GMAC CID Bkrs Trst CID Bkrs Trst CID Bkrs Trst PURCHASE SBA (FR) CB (FR) GMAC PURCHASE sL Treas Note 08/28/98 REDEMPTION BN NBDetroit BN NBDetroit CID Country CID Country CP Text Fin CID Hertz CID GMAC CID GMAC SALE !rj Treas Note PURCHASE CID Assoc CID Assoc CID Assoc CID Assoc CID Heller CID GECC CID GECC 08/27/98 5.650 35,000 27 148,312.50 5.752 08/27/98 5.530 40,000 69 423,966.67 5.666 08/27/98 5.530 50,000 69 529,958.33 5.666 08/27/98 5.530 50,000 69 529,958.33 5.666 08/27/98 5.530 50,000 69 529,958.33 5.666 08/27/98 5.650 18,000 84 237,300.00 5.805 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.500 50,000 119 909,027.78 5.679 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 08/27/98 5.460 50,000 132 1,001,000.00 5.648 5.875% 08/25/23 5.875 13,262 5.813% 04/29/02 5.687 35,000 5.625% 11/30/99 5.580 50,000 5.520% 08/28/98 5.520 50,000 129 989,000.00 5.596 5.520% 08/28/98 5.520 50,000 129 989,000.00 5.596 08/28/98 5.560 50,000 42 324,333.33 5.674 08/28/98 5.560 43,000 42 278,926.67 5.674 08/28/98 5.700 26,060 66 272,327.00 5.840 08/28/98 5.530 25,000 101 387,868.06 5.695 08/28/98 5.460 50,000 133 10,087,583.33 5.649 08/28/98 5.460 50,000 133 1,008,583.33 5.649 5.625% 11 /30199 5.580 50,000 1 7,730.93 5.657 08/31 /98 5.500 50,000 08/31 /98 5.500 50,000 08/31 /98 5.500 50,000 08/31 /98 5.550 50,000 08/31 /98 5.540 50,000 08/31 /98 5.530 50,000 08/31 /98 5.530 50,000 —16— DEMAND BANK DEPOSITS (000 omitted) DAILY BALANCES AUGUST 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. AVERAGE DOLLAR DAYS WARRANTS PER BANKS OUTSTANDING $5569395 $296769748 4129051 296769748 6359501 19531,301 6359501 19529,341 6359501 1,6259060 316461 194629124 1389735 192191,082 3069713 192199082 3109641 19219,082 2669552 19,079,946 2669552 190449897 2669552 191069,262 2609280 1,1899785 2609892 190679572 2309271 190679,572 3919258 1,0751,352 2649727 890,488 2649727 8949580 2649727 980437 427,329 1947299.56 1109482 194939043 3099209 194939043 130,993 1,4939043 2229268 193409859 2229268 1,1769059 222,268 1,0149419 979229 111259228 2019009 19380,107 1299084 1,3809107 1039972 1,3809107 1619419 13,3239565 al $2919012 a/ The prescribed bank balance for August was $283,872,000.00. This consisted of $126,485,000.00 in compensating balances for services, $157,386,000.00 uncollected funds and a deduction of $6,066,000.00 for July delayed deposit credit. -25- DESIGNATION BY POOLED MONEY INVESTMENT BOARD OF TREASURY POOLED MONEY INVESTMENTS AND DEPOSITS No. 1590 In accordance with sections 16480 through 16480.8 of the Government Code, the Pooled Money Investment Board, at its meeting on August 19,1998, has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code, it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts, savings and loan associ- ations, and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law, for deposit in demand bank accounts as Compensating Balance for Services $ 137,641,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances, the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for "cash" for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury, but the balances are to be maintained in such a manner as to realize the maximum return consistent with safe and prudent treasury management. 2. In accordance with law, for investment in securities authorized by section 16430, Government Code, or in term interest - bearing deposits in banks and savings and loan associations as follows: Time Deposits in various Financial Institutions From — To _ Transactions In In Securities 16430)* (sections 16503a and 16602)* Estimated Total ( 1) 08/17/98 08/21/98 $ 602,700,000 $ 28,847,310,000 $ 1,738,390,000 $ 30,585,700,000 (2) 08/24/98 08/28/98 $ 275,900,000 $ 29,123,210,000 $ 1,738,390,000 $ 30,861,600,000 (3) 08/31/98 09/04/98 $ (940,300,000) $ 28,182,910,000 $ 1,738,390,000 $ 29,921,300,000 (4) 09/07/98 09/11/98 $ (97,500,000) $ 28,085,410,000 $ 1,738,390,000 $ 29,823,800,000 (5) 09/14/98 09/18/98 $ 3,183,900,000 $ 31,269,310,000 $ 1,738,390,000 $ 33,007,700,000 (6) 09/21/98 09/25/98 $ 1,119,300,000 $ 32,388,610,000 $ 1,738,390,000 $ 34,127,000,000 (7) 09/28/98 10/02/98 $ (557,100,000) $ 31,831,510,000 $ 1,738,390,000 $ 33,569,900,000 (8) 10/05/98 10/09/98 $ (282,500,000) $ 31,549,010,000 $ 1,738,390,000 $ 33,287,400,000 (9) 10/12/98 10/16/98 $ 590,600,000 $ 32,139,610,000 $ 1,738,390,000 $ 33,878,000,000 (10) 10/19/98 10/23/98 $ 186,100,000 $ 32,325,710,000 $ 1,738,390,000 $ 34,064,100,000 From any of the amounts specifically designated above, not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e), Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time, in excess of the amounts and for the same types of investments as specifically designated above. Provided, that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $ 137,641,000. Dated: August 19,1998 "Government Code -- -26- 08/28/98 PURCHASE CP GECC 08/31/98 5.530 50,000 CP GECC 08/31/98 5.530 50,000 CP GECC 08/31/98 5.530 50,000 CP GECC 08/31/98 5.530 50,000 PURCHASE sd Treas Note 5.635% 11 /30/99 11 /30/99 5.530 5.530 50,000 47,000 Treas Note Note 5.625% 5.625% 05/15/01 5.520 50,000 Treas Treas Note 5.625% 05/15/01 5.520 50,000 Treas Note 5.625% 05� Treas Note 5.625% 0515/01 5.520 29,650 08131/98 REDEMPTION CP GECC 08/31/98 5.530 50,000 3 3 23,041.67 23,041.67 5.609 5.609 CP GECC 08/31/98 08/31/98 5.53Q 5.530 50,000 50,000 3 23,041.67 5.609 CP GECC 08/31/98 5.530 50,000 3 23,041.67 5.609 CP GECC 08/31/98 5.530 50,000 3 23,041.67 5.609 CP GECC 08/31 /98 5.530 50,000 3 23,041.67 5.609 CP GECC 08/31/98 5.540 50,000 3 23,083.33 5.619 CP Heller 08/31 /98 5.500 50,000 3 22,916.67 5.578 CP Assoc 08/31/98 5.500 50,000 3 22,916.67 5.578 CP Assoc 08/31 /98 5.500 50,000 3 22,916.67 5.578 CP Assoc 08131 /98 5.500 50,000 3 22,916.67 5.578 CP CD Assoc World 5.500% 08/31 /98 5.500 42,000 10 100,207.7 2 5.627 CD World 5.530% 08/31/98 08/31/98 5.550 5.550 50,000 50,000 13 13 100,207.72 5.627 CD World World 5.530% 5.530% 08/31/98 5.550 50,000 13 100,207.72 5.627 CD CD World 5.530% 08/31/98 5.550 50,000 13 100,207.72 154,164.96 5.627 5.627 CD World 5.530% 08/31/98 08/31/98 5.550 5.500 50,000 50,000 20 10 CP Amer Exp 08/31 /98 5.500 50,000 10 76,388.89 5.584 CP Amer Exp 4.750% 08/31/98 4.753 50,000 1806 11, 751,597.03 4.753 Treas Note Note 4.750% 08/31/98 4.753 50,000 1816 11,718,142.27 4.731 Treas SALE .cl Treas Note 5.625% 11 /30/99 5.530 50,000 3 3 23,013.09 21,632.44 . 5.606 5.6 Treas Note 5.625% 11 /30/99 05/15/01 5.530 5.520 47,000 50,000 3 23,271.40 5.60606 Treas Note 5.625% 5.625% 05/15/01 5.520 50,0000 3 23, 271.40 5.596 Treas Treas Note Note 5.625% 05/15/01 5.520 48, 3 22,457.20 13, 57 5.596 5.596 Treas Note 5.625% 05/15/01 5.520 29,650 .0 —17— 08/31/98 PURCHASE CP Conagra 09/01/98 5.920 23,064 CP Conagra 09/01/98 5.920 38,600 CP GECC 09/01/98 5.870 50,000 CP GECC 09/01/98 5.870 50,000 CP GECC 09/01/98 5.870 50,000 CP GECC 09/01/98 5.870 50,000 CP GECC 09/01/98 5.870 50,000 CP GECC 09/01/98 5.870 50,000 PURCHASE r/ Treas Note 6.000% 08/15/99 5.850 150,000 Treas Note 5.875% 08/31/99 5.850 50,000 Treas Note 5.750% 09/03/99 5.850 50,000 Treas Note 6.000% 10/15/99 5.850 37,625 Treas Note 7.750% 11 /30/99 5.850 50,000 Treas Note 5.875% 02/15/00 5.850 50,000 Treas Note 6.750% 04/30/00 5.850 50,000 —18— a/ The abbreviations indicate the type of security purchased or sold; i.e., (U.S.) Bills, Bonds, Notes, Debentures, Discount Notes, and Participation Certificates: Federal National Mortgage Association (FNMA), Farmers Home Administration Notes (FHA), Student Loan Marketing Association (SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit (CD), Negotiable Certificates of Deposit Floating Rate (CD FR), Export Import Notes (EXMD, Bankers Acceptances (BA), Commercial Paper (CP), Government National Mortgage Association (GNMA), Federal Home Loan Bank Notes (FHLB), Federal Land Bank Bonds (FLB), Federal Home Loan Mortgage Corporation Obligation (FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds (FFCB), Federal Farm Credit Discount Notes (FFC), Corporate Securities (CB), U.S. Ship Financing Bonds (TITLE MIS), International Bank of Redevelopment (IBRD), Tennessee Valley Authority (TVA) Medium Term Notes (MTN). b/ Purchase or sale yield based on 360 day calculation for discount obligations and Repurchase Agreements. c/ Repurchase Agreement. d/ Par amount of securites purchased, sold, or redeemed. e/ Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. h/ Security "SWAP" transactions. i/ Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. —19— MANE ALHAMBRA East West Bank TIME DEPOSIT DEPOSIT DATE 06/18/98 YIELD .5.240 PAR AMOUNT (S) MATURITY 12,000,000.00 DATE 09/16/98 East West Bank 07/09/98 5.110 35,000,000.00 10/07/98 East West Bank 07/17/98 5.090 15,000,000.00 10/15/98 East West Bank BEVERLY HILLS 08/11 /98 5.090 38,000,000.00 11 /12/98 City National Bank 02/18/98 5.270 20,000,000.00 02/18/99 City National Bank 03/19/98 5.220 20,000,000.00 09/16/98 City National Bank 05/05/98 5.290 10,000,000.00 11/02/98 City National Bank 05/15/98 5.380 15,000,000.00 11 /02/98 City National Bank CHICO 07/29/98 5.230 10,000,000.00 01 /27/99 Tri Counties Bank 03/16/98 5.250 10,000,000.00 09/15/98 North State National Bank 03/11/98 5.260 500,000.00 09/09/98 North State National Bank 04/07/98 5.220 2,000,000.00 10/06/98 Tri Counties Bank 04/16/98 5.230 10,000,000.00 10/15/98 Tri Counties Bank 06/16/98 5.140 10,000,000.00 09/10/98 Tri Counties Bank 07/24/98 5.100 10,000,000.00 10/29/98 North State National Bank FRESNO 08/24/98 5.190 1,000,000.00 08/24/99 Kings River State Bank 07/15/98 5.070 1,000,000.00 10/13/98 United Security Bank 07/17/98 5.150 5,000,000.00 10/15/98 United Security Bank Gi ENDA E 08/11/98 5.100 20,000,000.00 11/10/98 Glendale Federal Bank 04/09/98 5.220 5,000,000.00 10/07/98 Glendale Federal Bank 04/17/98 5.320 100,000,000.00 10/15/98 Glendale Federal Bank INGLEWOOD 06/29/98 5.030 3,000,000.00 09/28/98 Imperial Bank 03/11/98 5.290 25,000,000.00 09/09/98 Imperial Bank 03/19/98 5.250 11,000,000.00 09/16/98 Imperial Bank 03/31/98 5.250 36,000,000.00 10/01/98 Imperial Bank 07/08/98 5.110 25,000,000.00 10/07/98 Imperial Bank 07/21/98 5.210 25,000,000.00 10/19/98 Imperial Bank 07/08/98 5.230 25,000,000.00 01/04/99 Imperial Bank 08/05/98 5.110 15,000,000.00 11/04/98 Imperial Bank 08/06/98 5.130 25,000,000.00 11/05/98 Imperial Bank 08/07/98 5.160 20,000,000.00 11/06/98 Imperial Bank 08/06/98 5.260 25,000,000.00 02/03/99 -20- �NC�I EwOOD Imperial Bank 08/11 /98 5.230 20,000,000.00 02/09/99 12/01 /97 5.480 28,000,000.00 11 /06198 General Bank 03/31 /98 5.220 15,000,000.00 10/01 9 General Bank 04/01 /98 5.240 3,000,000.00 09/28/98 Preferred Bank Pomona First Federal S & L 06/11/98 5.450 10,000,000.00 9,000,000.00 09/10/98 09/17/98 Preferred Bank 06/18/98 06/23/98 5.120 5.200 9,000,000.00 09/23/98 Preferred Bank 06/18/98 5.130 15,000,000.00 09/24/98 General Bank 06/17/98 5.300 10,000,000.00 12/15/98 Community Bank 06/22/98 5.350 5,000,000.00 12/22/98 Community Bank 07/15/98 5.080 3,000,000.00 10/15/98 Preferred Bank 07/14/98 5.090 25,000,000.00 10/20/98 General Bank 07/08/98 5.130 10,000,000.00 10/21/98 General Bank 07/15/98 5.230 20,000,000.00 01/11/99 Community Bank 08/12/98 5.080 4,000,000.00 11 /20/98 Preferred Bank 08/25/98 5.080 2,000,000.00 11 /24/98 Preferred Bank 08/11 /98 5.200 15,000,000.00 02/08/99 Community Bank PO_ Pomona First Federal Bank 05/27/98 5.550 8,000,000.00 11 /24/98 PETALU MA Bank of Petaluma 08/11 /98 5.160 1,000,000.00 02/09/99 S GRAME IQ River City Bank 04/13/98 5.250 5.340 5,000,000.00 7,000,000.00 10/14/98 11/03/98 Sanwa Bank of California 05/06/98 06/29/98 5.010 100,000,000.00 09/28/98 Union. Bank of California 07/30/98 5.080 50,000,000.00 10/29/98 Union Bank of California 07/20/98 5.270 5,000,000.00 01/20/99 River City Bank Sanwa Bank of California 07/29/98 5.230 5,000,000.00 100,000,000.00 01/27/99 11/03/98 Union Bank of California 08/05/98 08/18/98 5.100 5.030 50,000,000.00 11/17/98 Union Bank of California 08/18l98 5.140 5,000,000.00 02/17/99 River City Bank Sanwa Bank of California 08/17/98 5.170 50,000,000.00 10,000,000.00 02/1 /99 02/22/99 Sanwa Bank of California 08/24/98 5.110 —21— San Diego First Bank 05/08/98 5.330 1,000,000.00 11 /05/98 San Diego First Bank 06/02/98 5.330 1,500,000.00 12/02/98 San Diego First Bank SAN FRANCIS O 06/23/98 5.350 1,500,000.00 12/22/98 Bank of Canton California 12/01/97 5.500 5,000,000.00 12/01/98 Bank of Canton California 12/15/97 5.450 5,000,000.00 12/15/98 Bank of Canton California 01/21/98 5.230 51000,000.00 01/21/99 Bank of Canton California 02/11/98 5.300 5,000,000.00 02/11/99 Transpacific National Bank 03/17/98 5.450 800,000.00 09/16/98 Oceanic Bank 03/05/98 5.430 2,000,000.00 03/05/99 Bank of Canton California 06/04/98 5.320 5,000,000.00 12/04/98 Bank of Canton California 06/09/98 5.410 5,000,000.00 03/05/99 Bank of the West Bank of the West 06/08/98 5.440 25,000,000.00 06/08/99 Bank of the West 07/31/98 07/31/98 5.220 5.230 25,000,000.00 01/28/99 Bank of the West 07/13/98 5.350 26,500,000.00 25,000,000.00 01/28/99 07/13/99 Bank of the West Bank of the West 08/19/98 5.040 37,000,000.00 11/18/98 Bank of Canton. California 08/25/98 08/04/98 5.500 5.220 25,000,000.00 11/24/98 Bank of the West SAN_LEANDRO 08/26/98 5.110 5,000,000.00 27,000,000.00 02/04/99 02/24/99 Bay Bank of Commerce 04/08/98 5.230 2,000,000.00 10/07/98 Bay Bank of Commerce Bay Bank of Commerce 06/17/98 5.130 14,000,000.00 09/15/98 SA"UIS OBISPO 07/09/98 5.120 2,000,000.00 10/07/98 First Bank of San Luis Obispo First Bank of San Luis Obispo 06/11/98 07/08/98 5.170 1,000,000.00 09/10/98 First Bank of San Luis Obispo 08/12/98 5.140 5.040 1,000,000.00 10/06/98 First Bank of San Luis Obispo 08/04/98 5.290 2,000,000.00 11/12/98 First Bank of San Luis Obispo 08/25/98 5.010 3,600,000.00 2,500,000.00 11/20/98 SAN RAFAEL 11/24/98 West America Bank West America Bank 07/16/98 5.150 25,000,000.00 10/14/98 West America Bank 07/24/98 07/30/98 5.090 25,000,000.00 10/22/98 West America Bank 08/10/98 5.090 5.030 25,000,000.00 10/29/98 SANMATEO 50,0009-000.00 11/09/98 Boreal Bank and Trust 06/30/98 5.180 95,000.00 10/01/98 -22- NAME SANTA ANA Grand National Bank TIME DEPOSIT DATE 03/11/98 DEPOSIT YIELD 5.250 PAR AMOUNT ($1 MATURITY 1,500,000.00 DATE 09/08/98 Grand National Bank 06/08/98 5.110 1,500,000.00 09/08/98 Grand National Bank SANTA BARBARA 06/30/98 5.300 95,000.00 01/04/99 Santa Barbara Bank & Trust 06/15/98 5.150 5,000,000.00 09/15/98 Santa Barbara Bank & Trust 07/06/98 5.100 5,000,000.00 10/06/98 Santa Barbara Bank & Trust 07/10/98 5.090 10,000,000.00 10/08/98 Santa Barbara Bank & Trust SANTA CRUZ 08/11 /98 5.040 5,000,000.00 11 /10/98 Coast Commercial Bank 06/19/98 5.230 15,000,000.00 09/17/98 SHASTA North Valley Bank STANISLAUS 03/24/98 5.280 3,000,000.00 09/22/98 Oak Valley Community Bank 06/25/98 5.100 500,000.00 09/24/98 Oak Valley Community Bank 06/29/98 5.100 500,000.00 09/24/98 Oak Valley Community Bank 08/07/98 5.110 500,000.00 11/06/98 Oak Valley Community Bank TORRANCE 08/10/98 5.240 500,000.00 02/08/99 China Trust Bank (USA) 06/09/98 5.120 10,000,000.00 09/09/98 South Bay Bank 06/16/98 5.190 2,000,000.00 09/15/98 China Trust Bank (USA) 06/15/98 5.113 10,000,000.00 09/15/98 China Trust Bank (USA) 06/29/98 5.070 5,000,000.00 10/01/98 China Trust Bank (USA) 07/30/98 5.100 15,000,000.00 10/28/98 South Bay Bank TUSTIN 07/20/98 5.310 1,000,000.00 01 /20/99 Sunwest Bank 03/31/98 5.220 500,000.00 10/01/98 Sunwest Bank 04/09/98 5.220 2,800,000.00 10/07/98 Sunwest Bank 07/20/98 5.260 1,000,000.00 01 /19/99 —23— NAME VICTORVILLE Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank Citizens Business Bank Bank of the West Bank of the West Bank of the West 02/11 /98 02/11 /98 03/11 /98 06/09/98 07/09/98 08/06/98 04/01 /98 04/23/98 05/15/98 TOTAL TIME DEPOSITS AS OF AUGUST 31,1998 5.300 10,000,000.00 09/23/98 5.320 5,000,000.00 10/06/98 5.270 10,000,000.00 10/08/98 5.390 10,000,000.00 12/16/98 5.330 10,000,000.00 02/08/99 5.290 5,000,000.00 03/09/99 5.200 14,000,000.00 10/01 /98 5.260 25,000,000.00 10/20/98 5.450 10,000,000.00 05/13/99 $1,763,390,000.00 —24— STAr, G g CALIFORNIA STATE dG���U OF StA'�E rJO`� KURT R. SJOBERG STATE AUDITOR UDITOR MARLANNE P. EVASHENK CHIEF DEPUTY STATE AUDITOR Independent Auditors' Report THE GOVERNOR AND THE LEGISLATURE OF THE STATE OF CALIFORNIA We have audited the general purpose financial statements of the State of California as of and for the year ended June 30, 1997, as listed in the table of contents. These general purpose financial statements are the responsibility of the States management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the pension trust funds, which reflect total assets constituting 86 percent of the fiduciary funds. We also did not audit the financial statements of certain enterprise funds, which reflect total assets n� d revenues, constituting 89 percent and 90 percent, respectively, of the enterprise s. In addition, we did not audit the University of California funds. Finally, we did not audit the financial statements of certain component unit authorities, which reflect total assets and revenues, constituting 97 percent and 93 percent, respectively, of the component unit authorities. The financial statements of the pension trust funds, certain enterprise funds, the University of California funds, and certain component unit authorities referred to above were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for these funds and entities is based solely upon the reports of the other auditors. We conducted our audit in accordance with government auditing standards issued by the Comptroller General of the United States and generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supportinga the amounts and disclosures in the general purpose financial statements. A includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the reports of the other auditors provide a reasonable basis for our opinion. In our opinion, based upon our audit and the reports of other auditors, the general purpose financial statements as listed in the table of contents present fairly, in all material respects, the financial position of the State of California as of June 30, 1997, and the results of its operations and the cash flows of its proprietary funds and component unit authorities for the year then ended, in conformity with generally accepted accounting principles. BUREAU OF STATE AUDITS 660 J Street, Suite 300, Sacramento, California 95814 Telephone: (916) 445-0255 Fax: (916) 327-0019 —27— Notes to the Fftwidat S NOTE 3. DEPOSITS AND State statutes, bond resolutions, and investment policy resolutions allow the primacy government to have investments in United States government securities, certificates of deposit, bankers' acceptances. commercial paper, corporate bonds, bank notes, mortgage loans and notes, other debt securities, repurchase agreements, reverse repurchase agreements. equity securities, real estate. mutual funds, and other investments. As of June 30, the State. including discretely presented component units. had investments in securities lending agreements, real estate, investment contracts, mutual funds, and other investments totaling $48.4 billion. These I vestments are not subject to classi$cation. All n�naining investments reported as of June 30. are categorized in three categories of credit risk: 1. insured or registered, or securities held by the State or its agent in the State's name. 2. Uninsured and iuu-egistered, with securities held by the counterparty's trust department or by an agent in the State's name. 3. Uninsured and unregistered. with securities held by the counterparty or by its trust department or by an agent but not in the State's name. The types of investments reported at year end are representative of the types of investments made during the year. Furthermore. the credit risk associated with the investments reported at year end is representative of the credit risk associated with investments made during the year. —28— state of Ca -;forma. The State Treasumes Office a im.inisters a pooled investment program for the primary government and for certain special purpose authorities. As of June 30, the special purpose authorities' cash and pooled I I --1-ments wereappr odmately 3% of the State Treasurer's Office pooled investment portfolio. This program enables the State Treasurer's Office to combine available cash from all funds and to invest cash that exceeds current needs. Enterprise funds. trust and agency funds. and a building authority in the capital projects funds also make separate investments. As of June 30, the average T e irm lining life of the securities in the pooled money . investment - account by the State Treasurer's Officewas approximately 232 days. The State Treasurer's Office also has agreements with certain banks to maintain cash on deposit that does not earn interest income• Income earned on these deposits compensates the banks for services and uncleared checks that are deposited in the pooled investment program's accounts. All demand and time deposits. totaling approx<mately $664 million, which were held by financial institutions as of June 30, were Insured by federal depository insurance or by collateral held by the State Treasurer's Office or by an agent of the State Treasurers Office in the State's name. The California Government Code requires collateral pledged for demand and time deposits to be deposited with the State Treasurer. As of June 30, the State Treasurer's Office had amounts on deposit with fiscal agents totaling approxdmately $10 million. These deposits are related to primary government invest<amt activities and to principal and interest payments due to bondholders. These deposits are insured by federal depository insurance or by collateral held by an agent of the State Treasurers Office in the states name. The investments of pension trust funds are reported at fair value. investments of the Deferred Compensation Plan Fund, an agency fund, are reported at market value. All other investments are at cost or amortized cost For these investments, no loss is recorded when market values decline below .cost, as such declines are considered temporary. As of June 30, floating rate notes and mortgage -backed assets comprised less than 596 of the pool Invesiments. For the floating r�� by the State rate notes in the portfolio, the Interest Treasurer's Office pooled investment program will rise or fall as the underlying index rate rises or falls. The structure of the estment��g�m rate notes in the State Treasurer's Offi P� against the risk of portfolio is such that it hedges the portfolio inmwaing interest rates. The mortgage -backed securities wed real estate mortgage investment conduits MEMI ) security backed by a pool of mortgages. The REWUCs in the State's portfolio have a fixed principal pay.-nent schedule. —29— The California wivmrriuent C„de allows the State Treasurer's Office to enter into reverse repurchase agreements, as part of its pooled investment program. A reverse repurchase agreement is a sale of securities with a simultaneous agreement to repurchase them in the future at the same price plus a contract rate of interest The market value of the securities underlying reverse repurchase agreements normally exceeds the cash received, providing the dealers a margin against a decline in market value of the securities. If the dealers default on their obligations to resell these securities to the State Treasurer's Office or provide securities or cash of equal value, the State Treasurees Office pooled investment program will suffer an economic loss equal to the difference between the market value plus the accrued interest of the underlying securities and the agreement obligation, including accrued interest During the year ended June 30, the State Treasurer's Office entered into 28 reverse repurchase agreements by temporarily selling investments with a carrying value Of approximately $4.4 billion. The maturities of investments made with the proceeds from reverse repurchase agreements were matched to the maturities of the agreements. As of June 30. the State Treasurer's Office did not have any reverse repurchase agreements outstanding. State statutes -and agency policies permit Ca1PERS and SIRS to lend its securities to broker -dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future. Third party securities lending agents have been contracted to lend domestic and international equity and debt securities. All securities loans can be terminated on demand by the lender or the borrower. Collateral in the form of cash or other securities is required at 102% and 105% of the fair value of domestic and international securities loaned, respecttvely. As of June 30. 1997, there was no credit risk of exposure to borrowers because the amount of collateral held exceeded the amounts owed to the borrowers. The cash received as collateral is invested in accordance with investment guidelines. The weighted -average maturity of all investments of the cash collateral was less than 90 days as -of June 30. Collateral securities received are not permitted to be pledged or sold unless the borrower defaults. The contracts with the security lending agents require them to indemnify Ca1PERS and STRS if the borrowers fail to return the securities (or if the collateral is not sufficient to replace the securities lent) or if the borrower fails to pay for income distributions by the securities' issuers while the securities are on loan. In accordance with statutes authorizing Ca1PERS investments, Ca1PERS, through its outside investment managers, holds investments in futures and options and enters into forward foreign currency exchange contracts. Futures and options of approximately $92 million are held for investment purposes as 'of June 30, 1997. Gains and losses on futures and options are determined based upon quoted market values and recorded in the statement of changes in net assets. Forward foreign currency exchange contracts are used primarily to hedge against changes in exchange rates related to 39 —30— State of CaUfomfa foreign securities• As of June 30, 1997, CalPERS had approximately $91 million net exposure to loss from forward foreign currency exchange transactions related to the $26.9 billion international debt and equity portfolios. CalPERS could be exposed to risk if the counterparties to the contracts are unable to meet the terms of the contracts. CalPERS investment managers seek to control this risk through counterparty credit evaluations and approvals, counterparly credit limits, and exposure monitoring procedures. Ca1PERS antitpates that the counterparties will be able to satisfy their obligations under the contracts. Table 2 presents the carrying value and market value of the investments that were reported by the primary government as of June 30. Table 2 Schedule of Investments - Primary Government June 30,1997 (Amounts in thousands) Pooled Investments ' U.S. Govemment Deposits..»........... ............ .......... N N.... ...»N»N.»NN. Commercial paper .... .......... ........ ... ....... »...NNNNN. CorporatebY..YYNNNN...N.N..NN.N.NNNNNNN.NNNNMNN. Bank.N.NNN.. N.NNNNN»..N...NNN..N.....NNNNNN.N. Other..N....NN.N.»»...NN»....»NNN..N..N.»..N..NNNN.NN... Total Pooled Investinen Separately Invested Funds subject to Categorization US. Gouemrnent semirities.»N..NN.N..N».»»».NNNNN Commercial . ..... Corporate bonds..NN..N...NN...... N.»NNN.......»..N»»N... Mortgage loans..NN....N..N...N.......N»..NN.........NNN.N.. Debt securities - STRS..... N.......... »N............. NN..»N. Equity Securities lending collateral ......... ...... »»..... NNN...... Other invesbrterrts.NNNNNN.NNN»»»NN.»»..NNN.N»»... Category Carrying Market Value Value t 8.745.859 S — $ — $ 8,745,859 S 8,745,635 6,832,540 — — 6AW.- 40 6,831,485 870.395 — — 870,395 871,718 6,782,756 — — 6,782,756 6.785.493 1.569.890 — — 109.8m 1,567,125 949,074 — — 949,074 948.889 29.495 29,40 29.40 25.T 0,009 — — 25.780.009 25,779,840 8,991,927 134,512 2,334,124 — 6.303,615 764 13,244,590 14,131,637 110,530,849 25,122,038 4,418,027 - 9,126,439 9.341,905 — 2,334,124 2.334,124 — 6,304,379 6,303,781 — 13,244,530 13,244,530 — 14.131,637 14,131,637 — 110.530,849 110,530,849 — 25.122,038 25,122.038 — 4,418,027 4,418,028 Total Separately Invested Funds Subject To Categorization--- 185,076,747 135,276 — 185,212,023 185,426,892 Separately Invested Funds Not Subject to Categorization Real estate .NN».»NN»NN».......N»NNN.»....NN»».N..NNNNN.N»N»N 8,384,488 8,384,488 Venture capital and private equity ftatds.N»»»».N»N»N»N.NN»»».....NN....».....N....»»»N. 2,722,170 2.722,170 InvesMant contrects...N.N.:...N. »» »»..NN.N.».NN.....NN .N»N.........NN»..»N NNNNN. 2,045,877 2,045.877 MuWW iunds...NNN..NNN.NNNMNNN.NNNNNNN.NNMNNMN..NNNNN....NN.NNNM-NN....NN.NMN.N.NM.MNNNNMNN 1,758,886 1,760,248 Investments hell by broker -dealers under securities bans with cash collateralN.NNNNN.»..NNN .»..»NNNNN.N24,378.763 24,378,763 Other..»»..»..»NN»...»»NNNN»..»»»...........NN....»».N....NN........»N.N.N.N....N N....N..»»NNNN.N»......N 1,393,270 1,393,270 Total Separately Invested Funds Not Subject to Categorizatio 40,60AM 40,684,816 Total Investments-S 210,856,756 S 135,276 S — $ 251,675,486 S 251,891,548 40 Approftatey 3% of the pooled investments are kweatrnw is of special purpose authorites which are dim a ely presented component unRL For special purpose authorities' separately unrested funds. no Table 4. -31-