Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2001-11-21
i _ CITY OF PALM DESERT FINANCE DEPARTMENT MEMORANDUM TO: INVESTMENT AND FINANCE COMMITTEE FROM: PAUL S. GIBSON, DIRECTOR OF FINANCE DATE: NOVEMBER 14, 2001 SUBJECT: INVESTMENT AND FINANCE COMMITTEE MEETING The meeting for the Investment and Finance Committee will be held on Wednesday, November 21, 2001 at 12:00 p.m. in the North Wing Conference Room. Because the date is close to the Thanksgiving holiday weekend, please call me at 346-0611, Ext. 320 if you will not be able to attend the meeting as a quorum is necessary in order to conduct business. Thank you for your cooperation in this matter. i PSG:dcl GAFinance\Diana Leal\Wpdocs\Investment Committee\2001 Memos\Membersl CITY OF PALM DESERT �•� INVESTMENT & FINANCE COMMITTEE AGENDA November 21, 2001, 12:00 p.m. North Wing Conference Room I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE ROLL CALL VOTE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE INVESTMENT & FINANCE COMMITTEE OR AUDIENCE REQUEST ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER SECTION V. CONSENT ITEMS HELD OVER, OF THE AGENDA. A. Approval of Minutes Rec: Approve minutes of the regular meeting of September 19, 2001, as submitted. Action: 1 11210tw d INVESTMENT & FINANCE COMMITTEE AGENDA NOVEMBER 21, 2001 V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. Investments 1. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for September and October 2001 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for September and October 2001. Review status of capital projects and cash-flow projections. Action: 2. 3Q2001 Financial Report on Deferred Compensation Program (571 Rec: Review and submit for the next City Council agenda. Action: B. Review Short-Term Investments Maturing in November 2001 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and 3) agencies discount notes Action: C. Palm Desert Treasury Policies and Procedures Manual for 2002 (Mailed under separate cover on 11/8/01 for review by members) Rec: Review and file report Action: D. State of California Local Agency Investment Fund Monthly Report for July and August 2001 Rec: Informational item for the Committee to review. No action required 2 11210t.0 INVESTMENT & FINANCE COMMITTEE AGENDA NOVEMBER 21, 2001 E. City and Redevelopment Agency Monthly Financial Reports for Citv Council for September and October 2001 Rec: Report and submit to City Council Action: F. Parkview Professional Office Buildings - Financial Report for October 2001 Rec: Review and file report: Action: G. Palm Desert Golf Course Facilities Corporation Financial Information for August. September and October 2001 Rec: Review and file report Action: VII. CONTINUED BUSINESS A. Travel Expense Guidelines (Continued from 9/19101 meeting to allow members time to review) Rec: Review and file report Action: Vill. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks Rec: Status report on background checks Action: B. Bond Issuance by Palm Desert Financing_Authority Rec: Status report on issuing new bonds Action: 3 imo1.wnd INVESTMENT & FINANCE COMMITTEE AGENDA NOVEMBER 21, 2001 IX. NEXT MEETING - Wednesday, December 19, 2001 at 12:00 noon. X. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 141h day of November, 2001. C "Al Dia a Leal, R ord' g Secretary 4 i+2rm.wpd Finance Department MEMORANDUM To: Rachelle Klassen, Deputy City Clerk From: Diana Leal, Administrative Secretary Subject: Investment and Finance Committee Date: January 18, 2002 Attached is a copy of the November 21, 2001 minutes of the Investment and Finance Committee approved by the Committee on January 15,2002. Please place on the next City Council agenda for approval thereof. Additionally, attached is the attendance record of said Committee. Thank you for your assistance. Attachments (2) &TinanceWiana Leal\Wpdocs\Investment Committee\2001 Memos\City Clerk\l 1-21-01 minutes.wpd _ CITY OF PALM DESERT INVESTMENT & FINANCE COMMITTEE _ Minutes November 21, 2001 North Wing Conference Room I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, November21, 2001, at 12:05 p.m. II. ROLL CALL Present: Absent: Paul Gibson, Chairman Mayor Jim Ferguson Richard Kelly, Mayor Pro-Tempore Carlos Ortega, City Manager Dave Erwin, City Attorney Thomas Jeffrey, Investment Manager Russ Campbell Murray Magloff Bill Veazie Also Present: Justin McCarthy, Redevelopment Agency ACM Dennis Coleman, Redevelopment Finance Manager Rodney Young, Desert Willow Manager Diana Leal, Recording Secretary III. ORAL COMMUNICATIONS None. IV. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Ortega and seconded by Mr. Campbell to approve the Minutes of the September 19, 2001 meeting as submitted. Motion carried. 1 112101.wpd INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 21, 2001 V. CONSENT ITEMS HELD OVER None. VI. NEW BUSINESS A. Investments 1. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for September and October 2001 Mr. Jeffrey gave a brief summary of the Cash Reports. For the month ended 31 October 2001, the book value of the City's Portfolio was approximately $165,331,000. The City made approximately $567,000 in interest earnings during that period. The City Portfolio's yield-to-maturity was 3.98%. For the month ended 31 October 2001, the book value of the RDA portfolio was approximately $69,921,000. The RDA made approximately $188,000 in interest earnings during that period. The RDA Portfolio's yield-to-maturity was 3.04%. Mr. Jeffrey said that there has been quite a drop from August through October. They have backed out the "slugs' that are being reported because there is a trustee that is purchasing them who has direct control of the funds. Mr. Gibson said that these funds are refunding bonds which are managed by a trustee, therefore, the City has no control over these funds. Mr. Ortega asked if the report presented understates the net worth of the Agency. Mr. Gibson said that these funds are not recorded on the City's books as they are not an asset. The interpretation of the Auditor of the Treasurer's group has been that it is only cash and investments that the City manages specifically that should be on the investment reports. 2. 3Q2001 Financial Report on Deferred Compensation Program 457 Mr. Jeffrey gave a brief overview of the Deferred Compensation Program (457). Until such time as the assets are disbursed to the employees, they remain in the City's name are technically considered as the City's assets. Consequently, periodic reports are provided as an informational item. 2 1f2101.wPC INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 21, 2001 B. Review Short-Term Investments Maturing in November 2001 Mr. Jeffrey gave a brief overview of the maturing investments in November 2001 for the City and the Redevelopment Agency. C. Palm Desert Treasury Policies and Procedures Manual for 2002 Mr. Jeffrey said that a copy of the Palm Desert Treasury Policies and Procedures Manual for 2002 was mailed to the Committee prior to the meeting for their review. He mailed a three page memo summarizing the changes staff was proposing. Mr. Erwin inquired if the information systems manager is bonded. Mr. Gibson said that all employees are bonded for theft, however, he wasn't certain and he said that the conflict of interest needs to be bonafide as well. He will mention it to the City Clerk. Mr. Erwin asked why the City wanted a three year audit. Mr. Gibson said that staff review the regular annual audits where they review confirmation of the cash and investments with all of the entities. Since there are not significant changes on an annual basis. They felt that unless there was a change to policy or staffing then it would be recommended that it be done on an annual basis. Action: Motion made by D. Erwin and seconded by C. Ortega to forward the Palm Desert Treasury Policies and Procedures Manual for 2002 to the City Council for review and approval. Motion carried. Report filed. D. State of California Local Agency Investment Fund Monthly Report for July and August 2001 Mr. Jeffrey said that the City is maxed out in both accounts. Mr. Gibson that LAIF will increase effective January 1. A this time they are going through a review process. E. City and Redevelopment Agency Monthly Financial Reports for City Council for September and October 2001 Mr. Gibson said that last year on the General Fund Revenues there was $5.6 million year to date. This year there is $5.1 million. Sales tax and transient occupancy tax (T.O.T.) are down. Comparing year to date for October, last year was 1.742 versus this year 1.467. Mr. Gibson said that 3 t IItOt.wpd INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 21, 2001 the figures were estimates as the State Board of Equalization only provides monthly advances which are estimates that show 90% of what they believe it will be. In mid December the Board will provide the final actual numbers for the quarter ending October. On T.O.T. the City is down about $180,000, a majority can be attributed to the event of September 11 and the slow summer months. Building permits were down from last year as well. Mr. Kelly asked about the property taxes and franchise fees received. Mr. Gibson said that there is no set date when the County submits payments to the City, therefore, payments are accounted for at different times of the year. Waste Management and Cable company pay an advance amount on a monthly basis and yearly they reconcile the total amount. Edison and the Gas Company pay an annual lump sum at the end of March or first part of April. Mr. Kelly asked Mr. Gibson to conduct a survey of cities in the Coachella Valley that collect franchise fees from Edison. Mr. McCarthy asked how the franchise fee was derived. Mr. Gibson said that it is based on gross receipts. F. Parkview Professional Office Buildings - Financial Report for October 2001 Mr. Gibson said that there are two potential tenants interested in Parkview office complex. One is the County Assessor's office, they are looking at 2,900 square feet. The other is the Fire Marshall from the County who wants to consolidate all of their fire inspectors and are in negotiations with the Cove Commission. He has not heard what the Cove Commission has agreed to. They wanted about 1,100 to 1,500 square feet. G. Palm Desert Golf Course Facilities Corporation Financial Information for August. September 2001 and October Mr. Young distributed the income statement for September and October for the Food and Beverage for Palm Desert Recreation Facility and Desert Willow. He said that with the exception of September Desert Willow did well. He said that beginning next month there will be a combined report for Desert Willow and Palm Desert Recreation Facilities as the new corporation was established in November. Mr. Young said that in October, Food and Beverage had $11,000 more than budget and Golf had $15,000 more. In November, Food and Beverage will meet budget and surpass it as there are three hotels that are sold out and are recommending Desert Willow. Merchandise is on 4 INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 21, 2001 budget. Green fees will be at budget. There is some overtime on the Mountain View Golf Course because of overseeding being completed today. He thinks that they can open early prior to the scheduled date of December 26. Mr. Young said that the Food and Beverage Department for Palm Desert Park and Recreation was $18,000 behind budget for the year, a majority of that amount was for the month of September. Mr. Campbell said that he had lunch with a College president at Desert Willow who expressed that he was very impressed. Mr. Young thanked Mr. Campbell. In the month of October, due to cancellations caused by the incident of September 11, group sales were down. There were rounds above budget. The average dollar per round was down because the group rounds were lost, however, more residents played so there were more rounds so total dollars were up and budget was surpassed by $13,000. Mr. Ortega asked what was going to be done with the learning center as it is still struggling. Mr. Young said that the revenue was projected for the year and that there has been significantly more activity. VII. CONTINUED BUSINESS A. Travel Expense Guidelines Travel Expense Guidelines were continued from the September meeting for the committee to have enough time to review. The purpose of the guidelines is to provide staff and committee members with a more defined procedure for travel. The resolution indicates that personnel can be reimbursed for certain expenses and that spouses can only attend certain meetings. Mr. Ortega said that there were some grammatical issues he said that he can discuss with Mr. Gibson afterwards. He also had a question regarding conference related guests. Mr. Gibson said that it would mean if, for instance, you attend a conference and some of the conference attendees want to have a lunch or dinner with you and you pick up the tab. Mr. Gibson said that travel policy included the current mileage rate that the IRS allows which is $.34'/z cents. 5 112101.wPO INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 21, 2001 Mr. Magloff inquired about the Sister City travel. Mr. Gibson said that the guidelines states that anyone traveling to the Sister City, the City will reimburse their expenses. Mr. Magloff asked about the importance of having a Sister City. Mr. Ortega said that it is a policy issue that the Council will be deciding as there is no requirement that cities have Sister Cities. A long time ago the City Council decided to have two Sister Cities; one in New Zealand and one in Canada. Sister Cities was a program which was established by President Eisenhower for the purpose of exchanging people and ideas to promote better world understanding by participating in a community-to-community relationship. The importance of having a Sister City is solely up to each individual community. Some cities do not participate in the Sister City program. Mr. Magloff asked what it costs the City of Palm Desert to participate in the program. Mr. Ortega said that there is a budget for Sister City. Mr. Kelly said that the budget should be brought to the Finance Committee for their information. He said that the City of Seattle participates in the program however has very little involvement in the expense. At times it seems that the City of Palm Desert's program is successful, however there are times that it seems like it is not serving the purpose it should. He recalls a false statement that was given to a local news agency about a Sister City trip he took and how he responded to correct. Mr. Veazie said that having a Sister City relationship with an immediate bordering country was very important. Mr. Kelly said that he is of the opinion that it would be helpful to have a Sister City relationship with a city from another part of the state to share ideas and problems. Perhaps have a less fortunate city in the Coachella Valley and make them a Sister City to help them out. Mr. McCarthy asked if there was insurance on airline tickets. Mr. Gibson said that if a trip is cancelled, the airline will not refund the money unless the tickets were insured, however if you use it within one year's time the airlines honor the ticket. Action: Motion made by R. Campbell and seconded by D. Erwin to forward the Travel Policy with corrections to the City Council for review and approval. Motion carried. Report filed. Vill. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no business issues to report, discussion ensued to the next agenda item. s 112101_w d INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 21, 2001 B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman distributed information to Committee regarding issuance of bonds for project area 4. The bonds have been priced and are scheduled to close on the 28t' of December. The underwriters were able to underwrite at a price during the sliding market which yielded an excellent price. There are no yields over 5%. Basically, the arbitrage figure is 4.94. The all inclusive is 5.3. This all inclusive makes adjustments for the fact that some of the funds borrowed are not used (i.e. underwriter's discount, etc.). The Redevelopment Agency has borrowed $15,695,000. RDA will receive an immediate use of approximately $9.3 million in project funds. They will have an additional $4.6 million per project by October 2005. There are a few deals that they don't price as well against such as general obligation bonds of school districts and other cities because that is the full faith in obligation. They can raise the rates when they need to in order to cover the debt service. There was a deal with Signal Hill Redevelopment who priced better because they had a single A minus underlying rating and the RDA had no rating. This is an insured bond deal. The price of insurance on bond deals has gone up tremendously since September 11. The spread of interest rates between insured deals, rated deals and non- rated deals is tremendous. They were able to receive insurance. They fully expected to fund the reserve funds with a surety, which is another instrument to qualify credit reserve. They received half of it and the rest they had to use cash. Additional bonds for this are will be issued with additional bonds coverage of 125% instead of the initial 115%. Mr. Veazie asked if the bonds don't automatically rate a triple A. Mr. Coleman said that it automatically rates with a triple A if you pay for that type of rating fee, which they did pay. There are insured bonds that are not rated a triple A. Mr. Veazie congratulated staff on obtaining a great rate. IX. NEXT MEETING -Wednesday, December 19, 2001 at 12:00 noon. X. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 1:17 p.m. Respectfully submitted, C,_JW"X W a ordi g Secretary 7 f 12101.wp! 'r COMMITTEE MEETING WORKSHEET Meeting Description Investment Committee Meeting Date 11/21/01 Time 2:00 p.m. Location North Wing Conference Room Mailed Agenda 11/14/01 Posted Agenda 11/14/01 Time Convene Adjournment •0 Staff Members Attending Yes No Others Attending Yes No 1 Paul Gibson, Chairperson 10 Dennis Coleman 2 Council Member 11 Recording Secretary 3 Council Member 4 Dave Erwin, City Attorney 5 Carlos Ortega, City Mgr. 6 Thomas Jeffrey Public Members Aftendinq Guests Attending 7 Russ Campbell ✓ 12 p 8 Murray Magloff 13 9 Bill Veazie 14 15 16 17 Follow-Ups/Tasks Assigned Person Responsible Due Date 1 2 V 3 4 °j"0 0 5 6 7 8 cu 6jRA ova FiRL a an ma v f� NW li /,9122 .F0„' r ., Jil _�m Ill, : r i II /IU ' / l PR IV. 11F)moll"WINIM101,00MIN Moll M�m ar _r WMA d. . . M. _ in M, r ' Q We rl"A om IRS ME c, -.,11�/1�1"A ���I►i),iA, IN 'lill_i : , emu.; M�M ' ' 6 / / iC l' ��/• I'1�1.V / , r /4t� r =�M m . ram_ MAWA�M MM�.•! i ,,,� [�s �� / o • ,AF.N I-IF ' i'�r' j i 1. l �'.iiMENTIONED 20 � _ i l�ii� ill �MW�ZI� W.WlM Zaml !�'1���[ITC��l��. a �• . MIN _f _-_ • .:., . _ ,1 L , •., ►L. ! .. ®® MEETING NOTES IN O ILgli i►Z:Wo Au ___D) Y /I_ � _ • I_ ai �� Ffml MR mob I WA IL =gym w" d 'l,Wo WFra i 1�� _���7'it AA•. ems," ■►X R__�1I3r'.l:6ir'T�Z.�il�iir ���f.�}�il�r- ��� o �•.. . ��i 1.� -_����. �� .. ®® MEETING NOTES ��/ / '`a_.,/ Ado MIX >�m ■f.YJ�� mar• .1 ..WL!/w wM �.A I Spoke Mtn (1) Mtn (2) MEETING NOTES U� CGL � a Spoke Mtn (1) Mtn (2) MEETING NOTES ITS �"k� 2k e �,fix �x{i/(�'dI�LP"�fL/[/��$B�f 4�''a., kt��„�4,•�;5�' �"_. �, �j� *� ffClty,antizR�eveloptiier�tA�je�icy Po�rtfolios� �@ ^� :��- a A COMPUAMCE ANALXS�S AND NYE$TMENT�REpORT �` " •s Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Investment Manager Treasurer's Commentary The United States is "officially" in a recession. Gross Domestic Product fell to-0.4 in 302000 for the first time since 1991. In October, unemployment rose to 5.4%, and payrolls experienced the largest single-month decline since 1980. Job losses spread from the manufacturing sector to the service sector. Japan and Germany,the second- and third-largest industrial economies,also declined. The Federal Open Market Committee("FOMC") lowered the Federal Funds Rate by 50bp to 2.50%. The U.S. Treasury made a surprise Halloween announcement that it would no longer sell 30-year bonds--the traditional benchmark for the$17.7 trillion bond market. This action was taken to lower the cost of long-term capital and thereby stimulate mortgage refinancings, which are viewed as the best means for reviving the economy. The financial markets have assigned an 80%probability to another 25bp reduction by the FOMC at its 11 December meeting. Thomas Jeffrey was invited by the California Association of County Treasurers and Tax Collectors ("CACTTC")to be a guest speaker at the CACTTC Midyear Conference. Thomas spoke on "Opportunities for Strategic Partnerships Between Local Agencies" (AB 609). We are working with CACTTC to develop a new membership category for cities and special districts. pa"bs.. 67dwm C.GM.T. Treasurer PORTFOLIO STATISTICS Dollars in Thousands OCT-01 SEP-01 AUG-01 JUL-01 JUN-01 MAY-01 CITY Month-End Book Value $ 165,331 $ 169,727 $ 173,791 $ 173,918 $ 180,988 $ 191.248 Month-End Market Value $ 168,076 $ 172,344 $ 176,049 $ 176,067 $ 182,946 $ 193,211 Paper Gain (Loss) $ 2,745 $ 2,617 $ 2,258 $ 2,149 $ 1,958 $ 1,963 Interest Earnings $ 567 $ 615 $ 712 $ 691 $ 751 $ 744 Yield-To-Maturity 3.98% 4.28% 4.42% 4.530/. 4.71%" 4.91%" Weighted Maturity(Days) 375 359 354 354 356 341 Effective Duration 0.31 0.32 0.31 0.29 0.30 0.30 RDA Month-End Book Value"' $ 69,921 $ 70,498 $ 146,689 $ 147,263 $ 159,400 $ 147,250 Month-End Market Value" $ 71,736 $ 72,303 $ 148,327 $ 148,842 $ 160,838 $ 148,678 Paper Gain (Loss) $ 1,815 $ 1,805 $ 1,638 $ 1,579 $ 1,438 $ 1,428 Interest Earnings $ 188 $ 289 $ 604 $ 624 $ 659 $ 679 Yield-To-Maturity 3.04%< 3.69%, 3.96% 4.08% 4.44% 4.74% 247 221 904 902 853 922 Effective Duration 0.35 0.29 0.41 0.45 0.50 0.58 City Treasurer's Office 73-510 Fred Waring Drive Sep and Oct omit SLGSs. Palm Desert, CA 92260-2578 760.346.0611 City of Palm Desert- Portfolio Characteristics 31 October 2001 Dollars in Thousands Ageing Interval Market Value <1 M $ 34,901 General Fund Ageing <2M 2,100 <3M 3,032 60 <6M 10,996<1 YR 27,288 45 42 a >.. 33 <2YR 4,102 0 30 <3YR q <4YR a° 13 s <SYR 15 >SYR 13,r h'<` a Total: $ 82,419 <1M <2M <3M <6M <1YR <2YR Retinas Market Value Credit duality AAA AAA $ 82,864 50% AA 4,121 AA A 4,080 2% A1/P1 5,107 A Unrated" 71,904 Unrated•` ® p/ Total: $ 168,076 43% Al/PI 3% Sector Market Value' Asset Allocation Money Market Commercial U.S.Treasury $ 23,669 Funds Paper Federal Agency 35,139 1ai a oorp°rate .� Bonds Money Market Funds 29,895 Federal Agency 6% Commercial Paper 5,107 21% Corporate Bonds , D LAIF 29 LAIF 29,939 939 1 s RDA Loan 31,003 U.S.Treasury RDA Loan Total: $ 168,076 14% 1a% Month City Yield LAIF Yield Variance Performance Nov00 6.20 6.54 -0.34 Dec 6.22 6.54 -0.32 Jan01 6.10 6.37 -0.27 6.5 Feb 5.86 6.17 -0.31Pt _ Mar 5.72 5.98 -0.26 95.5 Apr 5.46 5.76 -0.30 c May 4.91 5.33 -0.42 4.5 Jun 4.71 4.96 -0.25 Jul 4.53 4.64 -0.11 3.5 Aug 4.42 4.50 . -0.08 Nov00 Dec Jan01 Feb Mar Apr May Jun Jul Aug Sep Oct Sep 4.28 4.35 -0.07 Oct 3.98 3.79 0.19 113 LAIF Yield p City Yield ' Standard and Poor's Credit Ratings LAIF, HighMark Sweep,and City Loan to RDA Page 2 of 8 City of Palm Desert Portfolio Holdings 31 October 2001 Market Ratings Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P Medium-Term Notes $ 1,000,000 ASSOCIATES 6.50 8/15/02 $ 1,016,065 4.38 103.10 $ 1,030,983 Aa3 AA- $ 2,000,000 DU PONT 6.75 10/15/02 $ 1,998,847 6.81 104.15 $ 2,083,086 Aa3 AA- $ 2,000,000 GENERAL ELECTRIC 5.18 211/02 $ 1,998,634 5.48 100.70 $ 2,014,042 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.52 10/8/02 $ 1,995,201 6.80 103.72 $ 2,074,436 Aaa AAA $ 1,000,000 GENERAL ELECTRIC 6.65 9/3102 $ 1,018,456 4.36 103.51 $ 1,035,075 Aaa AAA $ 4,000,000 GENERAL MOTORS 5.95 3114/03 $ 3,999,793 5.94 102.00 $ 4,080,000 A2 A $ 1,000,000 MERRILL LYNCH 5.71 1/15/02 $ 1,003,355 4.03 100.64 $ 1,006,434 Aa3 AA- $ 13,000,000 Subtotals $ 13,030,351 $ 13,324,056 Commercial Paper-Discount $ 2,115,000 FORD 3.45 12/7/01 $ 2,093,312 3.49 99.79 $ 2,110,500 P-1 A-1 $ 3,000,000 HARVARD UNIVERSITY 3.34 11/20/01 $ 2,974,950 3.37 99.87 $ 2,996,233 P-1 A•1+ $ 5,115,000 Subtotals $ 5,068,262 $ 5,106,734 Agencies-Callable $ 2,000,000 FED HOME LOAN BANK 5.56 11/26/01 $ 2,000,000 5.56 100.25 $ 2,005,000 Aaa AAA $ 2,000,000 Subtotals $ 2,000,000 $ 2,005,000 Agencies-Coupon $ 2,000,000 FED HOME LOAN BANK 5.13 2/26/02 $ 1,990,689 6.68 100.94 $ 2,018,750 Aaa AAA $ 965,000 FED HOME LOAN BANK 6.75 2/15/02 $ 972,452 3.98 101.31 $ 977,666 Aaa AAA $ 4,000,000 FED HOME LOAN BANK 3.50 8/6/02 $ 3,995,325 3.66 101.06 $ 4,042,500 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.63 8/15/02 $ 1,998,616 6.72 103.53 $ 2,070,625 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 6.63 1/15/02 $ 1,999,690 6.70 100.91 $ 2,018,125 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 5.38 3115/02 $ 2,009,739 4.01 101.19 $ 2,023,750 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 6.75 8/15/02 $ 2,037,218 4.29 103.59 $ 2,071,875 Aaa AAA $ 14,965,000 Subtotals $ 15,003,728 $ 15,223,291 Agencies- Discount $ 2,071,000 FED HOME LOAN BANK 3.46 7/30/02 $ 1,999,741 3.60 98.52 $ 2,040,349 Aaa AAA $ 1,000,000 FED HOME LOAN BANK 2.34 7/23f02 $ 980,175 2.41 98.56 $ 985,600 Aaa AAA $ 1,000,000 FED HOME LOAN BANK 2.33 6/20/02 $ 982,396 2.39 98.76 $ 987,600 Aaa AAA $ 2,048,000 FED HOME LOAN BANK 2.34 10/7/02 $ 2,000.077 2.42 98.11 $ 2,009,293 Aaa AAA $ 4,000,000 FED HOME LOAN MTG CORP 3.77 3/28/02 $ 3,873,914 3.92 99.19 $ 3,967,600 Aaa AAA $ 3,977,000 FED HOME LOAN MTG CORP 2.30 7/18/02 $ 3,900,774 2.36 98.59 $ 3,920,924 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 2.35 10/10/02 $ 1,952,608 2.43 98.09 $ 1,961,800 Aaa AAA $ 2,064,000 FED MTG DISCOUNT NOTE 3.51 6/20/02 $ 2,000,006 3.65 98.76 $ 2,038,406 Aaa AAA $ 18,160,000 Subtotals $ 17,689,691 $ 17,911,573 NR=Noted Rated Page 3 of 8 City of Palm Desert Portfolio Holdings 31 October 2001 Market Ratings Par Value Issuer I Coupon I Matuft= Cost I YTM I Price I Value I Moody's I S&P U.S.Treasury-Coupon $ 1,340,000 UNITED STATES TREASURY 6.25 8/31/02 $ 1,343,901 5.84 103.44 $ 1,386,063 Aaa AAA $ 13,000 UNITED STATES TREASURY 6.25 2128/02 $ 13,015 5.84 101.38 $ 13,179 Aaa AAA $ 300,000 UNITED STATES TREASURY 6.63 3/31/02 $ 300,832 5.85 101.88 $ 305,625 Aaa AAA $ 15,194,000 UNITED STATES TREASURY 5.88 9/30/02 $ 15,197,606 5.84 103.50 $ 15,725,790 Aaa AAA $ 16,847,000 Subtotals $ 16,855,354 $ 17,430,656 U.S.Treasury-Discount $ 166,000 UNITED STATES TREASURY 5.08 5/15/02 $ 128,677 5.84 98.96 $ 164,267 Aaa AAA $ 6,170,000 UNITED STATES TREASURY 5.03 8/15/02 $ 4,718,446 5.82 98.44 $ 6,073,994 Aaa AAA $ 6,336,000 Subtotals $ 4,847,122 $ 6,238,261 LGIPs $ 29,938,573 L.A.I.F. 5.66 11/1/01 $ 29,938,573 3.79 100.00 $ 29,938,573 NR NR $ 29,938,573 Subtotals $ 29,938,573 $ 29,938,573 Pooled Funds-AIM $ 18,933 PRIME PORTFOLIO 6.19 11/1/01 $ 18,933 2.43 100.00 $ 18,933 Aaa AAA $ 18,933 Subtotals $ 18,933 $ 18,933 Pooled Funds-HighMark $ 30,965,333 CITY MAIN 1.94 11/1/01 $ 9,489,827 1.94 100.00 $ 9,489,827 NR NR $ 506,463 DESERT WILLOW 1.94 11/1/01 $ 203,166 1.94 100.00 $ 203,166 NR NR $ 1,182,829 OFFICE COMPLEX 1.94 11/1/01 $ 1,269,030 1.94 100.00 $ 1,269,030 NR NR $ 32,654,625 Subtotals $ 10,962,024 $ 10,962,024 City Loan to RDA $ 31,002,917 CITY OF PALM DESERT 3.79 10/31/31 $ 31,002,917 3.79 100.00 $ 31,002,917 NR NR $ 31,002,917 Subtotals $ 31,002,917 $ 31,002,917 Total Investments $ 170,038,048 $ 146,416,956 $ 149,162,016 Cash $ 54,750 CITY MAIN CHKG 0.00 11/1/01 $ 54,750 0.00 100.00 $ 54,750 NR NR $ 50,827 OFFICE COMPLEX CHKG 0.00 11/1/01 $ 50,827 0.00 100.00 $ 50,827 NR NR $ 141,159 DESERT WILLOW CHKG 0.00 11/1/01 $ 141,159 0.00 100.00 $ 141,159 NR NR $ 28,949 OFFICE COMPLEX TRUST 0.00 11/1/01 $ 28,949 0.00 100.00 $ 28,949 NR NR $ 157,912 RECREATIONAL FAC CHKG 0.00 11/1/01 $ 157,912 0.00 100.00 $ 157,912 NR NR $ 433,598 Subtotals $ 433,598 $ 433,598 Total Cash and Investments $ 170,471,646 $ 146,850,554 $ 149,595,613 NR=Noted Rated Page 4 of 8 Palm Desert Redevelopment Agency-Portfolio Characteristics 31 October 2001 Dollars in Thousands I Aaeina interval Market Value <1 M $ 65,095 Portfolio Ageing w/o SLGSs <2M - <3M 100 <6M 4,140 80 77 <1YR 4,801 70 <2YR 1,022 0 600 F' <3YR 6,678 3 � ao <4YR - o° 30 s <SYR 10 7 7 9 1 0 >SYR - `'' 0 0 6 0 Total: $ 71,736 <1M <2M <3M <6M <lYR <2YR <3YR <4YR Duality• Market Value Cred'tt Quality AAA AA AAA $ 44,215 A AA - 61% 0% 0% A A1 A1/131 3,966 s% Unrated" 23,555 Unrated Total: $ 71,736 ` 33 Sector Market Value Asset Allocation U.S. Treasury $ 8,749 Money Market Federal Agency 3,936 Funds Money Market Funds 36,749 Federal Agency 540/6 LAIF 18,336 6 fig,>r Commercial Paper 3,966 U.S.Treasury Corporate Bonds 13°i Total: $ 71,736 LAIF 27% Month RDA Yield LAIF Yield Variance Pertormance Nov 6.02 6.54 -0.52 Dec 6.08 6.54 -0.46 Jan01 5.97 6.37 -0.40 6.5 .. Feb 5.73 6.17 -0.44 5.s Mar 5.44 5.98 -0.54 Apr 5.20 5.76 -0.56 m 4.5 May 4,74 5.33 -0,59 rL Jun 4.44 4.96 -0.52 3.5 Jul 4.08 4.64 -0.56 2.5 Aug 3.96 4.50 -0.54 Nov Dec Jan01 Feb Mar Apr May Jun Jul Aug Sep Oct Sep 3.69 4.35 -0.66 Oct 3.04 3.79 -0.74 113 LAIF Yield M RDA Yield Standard and Poor's Credit Ratings " LAIF and HighMark Sweep Page 5 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 October 2001 Market Ratings Par Value Issuer Coupon Maturity Cost I YTM I Price Value I Moody'so S&P U.S.Treasury-Coupon $ 181,000 UNITED STATES TREASURY 6.25 2/28/02 $ 181,427 5.43 101.56 $ 183,828 Aaa AAA $ 422,700 UNITED STATES TREASURY 6.25 8/31/02 $ 425,205 5.43 103.34 $ 436,834 Aaa AAA $ 405,200 UNITED STATES TREASURY 6.25 8/31/02 $ 407,601 5.43 103.34 $ 418,749 Aaa AAA $ 9,100 UNITED STATES TREASURY 6.25 8/31/02 $ 9,154 5.43 103.34 $ 9,404 Aaa AAA $ 1,018,000 Subtotals $ 1,023,386 $ 1,048,815 U.S.Treasury-Discount $ 198,000 UNITED STATES TREASURY 4.70 2115/03 $ 150,793 5.45 96.37 $ 190,819 Aaa AAA $ 181,000 UNITED STATES TREASURY 4.63 2/15/04 $ 130,168 5.51 92.90 $ 168,144 Aaa AAA $ 7,143,000 UNITED STATES TREASURY 4.59 8/15/04 $ 4;989,671 5.54 91.13 $ 6,509,415 Aaa AAA $ 532,400 UNITED STATES TREASURY 4.66 8/15/03 $ 394,279 5.47 94.82 $ 504,832 Aaa AAA $ 344,600 UNITED STATES TREASURY 4.66 8/15/03 $ 255,200 5.47 94.82 $ 326,767 Aaa AAA IS 8,399,000 Subtotals $ 6,920,112 $ 7,699,966 Federal Agency-Discount $ 4,000,000 FED HOME LOAN MTG CORP 2.24 6/28/02 $ 3,936,284 2.30 98.41 $ 3,936,284 Aaa AAA • $ 4,000,000 Subtotals $ 3,936,284 $ 3,936,284 Commercial Paper-Discount $ 4,000,000 GENERAL ELECTRIC 2.25 4/10102 $ 3,955,750 2.28 99.15 $ 3,965,853 P-1 A-1+ $ 4,000,000 Subtotals $ 3,955,750 $ 3,965,853 LGIPs $ 18,336,116 L.A.I.F. 5.67 11/1/01 $ 18,336,116 3.79 100.00 $ 18,336,116 NR NR $ 18,336,116 Subtotals $ 18,336,116 $ 18,336,116 Pooled Funds-AIM $ 17,253,784 PRIME PORTFOLIO 6.19 11/1/01 $ 17,253,784 2.43 100.00 $ 17,253,784 Aaa AAA $ 17,253,784 Subtotals $ 17,253,784 $ 17,253,784 Pooled Funds-HighMark $ 5,016,510 HOUSING AUTH CHKG 4.54 11/1/01 $ 6,016,510 1.94 100.00 $ 5,016,510 NR NR $ 202,501 HOUSING AUTH TRUST 4.54 11/1/01 $ 202,501 1.94 100.00 $ 202,501 NR NR $ 5,219,011 Subtotals $ 5,219,011 $ 5,219,011 Total Investments $ 58,225,911 $ 55,644,443 $ 57,459,830 NR=Not Rated Page 6 of 8 Palm Desert Redevelopment Agency Portfolio Holdings 31 October 2001 Market Ratings Par Value Issuer Coupon Maturity Cost I YTM I Price Value I Moody'sl S&P Cash $ 26,097 HOUSING AUTH CHKG 0.00 11/1/01 $ 44,280 0.00 100.00 $ 44,280 NR NR $ 50,560 HOUSING AUTH TRUST 0.00 11/1/01 $ 50,402 0.00 100.00 $ 50,402 NR NR $ 76,657 Subtotals $ 94,682 $ 94,682 Total Cash and Investments $ 58,302,568 $ 55,739,126 $ 57,554,612 NR=Not Rated Page 7 of 8 STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert('City')and the Palm Desert Redevelopment Agency('RDA')are governed by federal, state, and local law. The City Treasurer's*Statement of Investment Policy' is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 31 October 2001,the City and the RDA investment portfolios were in compliance with all applicable federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield(in order of priority). Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectully submitted on 9 November 2001, ,aauLS. !iilwP4 C.C.M.T. City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio 53601 a Palm Desert Bonds 5 Years No Limit Not Authorized 1 53601 b; '_ ,U:S .Treasures, �SYe'a_`W ,.No Limit- Y , -'S'Years, `RNo Limn, } `:iz ,n ;131?/0 7r:9:9%.;; 53601 c CA State Debt 5 Years No Limit Not Authorized 53601 d CA Local Agency Debt 5 Years No Limit Not Authorized '536Q1 e° ''_ Federal':A &hies '``:: S;Years', 'No Limit;, 153601 t r G,Bahk6ri's 6c6 tsn6e6x 180.Da 6 " !JWDayi ,53601 ' `--,,Commercial,P `er.',, .270;Da s It 5/30%r, • A 1 driP-1, 2703Da s' ;15/30%." FA 1'orP,1 ,«3:1% 3 n5[7%,n' 53601 h : " gNe otiable CDs ;-"' 5 Years; 30%• :i .,. , ',; r °5 Years; '30%'„ . ,`AA&''Aa , r,_ :-;'ws 53601 i Re os 1 Year No Limit Not Authorized 53601 Reverse Re os 92 Days 20% Not Authorized 53801 ' Medtu'm-Terrri`NoteaaI , 5 Years'. , f r:30%-,^ , A;`;« , ;.5 Years" ,• 30% A..„. 1J,7.Wt ,53601 k = ;K 'sMutual'iFunds� =, .90,Days, •.20%.1' :AAA`&;'Aaa; 90,Da s ; .-20%; " AAA;&=Aaa M,•18[1%, 526%'-. 53601 I Trust Indenture Debt Not Authorized 53601 m Secured Bank Deposits 5 Years No Limit Not Authorized 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities JAA(SecuriVJ ',16429.- :' a ., •:LAIF + , No:Limit, .. .wa> w. , - , , No Limit 18i1%n "282%' 81.2% 1 100.0% 1 The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. s Certified California Municipal Treasurer Page 8 of 8 a w y aIfyAnt RQdB VBfOpfN@flt Aug@nCj/ PDrOtiO$p' g ` ��k CQMPL�IANC�AWALYSfS�ANDINYESTAAEI+4T��i�POR ��`�� � ° �r erj Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Investment Manager Treasurer's Commentary The attack on the World Trade Center("WTC") will aggravate the severity of the recession that the U.S. has been in during most of the third quarter. This recession could well last throughout 2002. It is the first capital goods downturn since 1929. U.S. financial markets were disrupted for several days. Power, computer, and telecommunications facilities for Lower Manhattan,the financial nerve center of the U.S., were severely damaged. Cantor Fitzgerald,a prominent U.S. bond dealer, lost 75%of its staff in the attack. The Bank of New York,a leader in securities clearing and money transfers, experienced systems failures, leaving transactions in tens of billions of dollars unsettled. National air transportation was paralyzed, with U.S. airlines struggling to avoid bankruptcy due to an estimated $7 billion of losses this year. Insurance companies that insured the WTC have an estimated liability of$30 billion for property and casualty claims. The economic damage will ripple through the economy, depressing the earnings of other industries, such as auto, aerospace,travel, and software. The Federal Reserve averted an international liquidity crisis and the destabiliziation of currency exchange rates by buying repos from U.S. banks and by swapping dollars for euros with European central banks. The Fed also reduced the Federal Funds Rate by 50bp, although the effectiveness of monetary policy to turn the economy is increasingly questionable,due to a slide in consumer confidence caused by non-economic factors. Treasurer PORTFOLIO STATISTICS Dollars in Thousands SEP-01 AUG-01 JUL-01 JUN-01 MAY-01 APR-01 CITY Month-End Book Value $ 169,727 $ 173,791 $ 173,918 $ 180,988 $ 191,248 $ 167,410 Month-End Market Value $ 172,344 $ 176,049 $ 176,067 $ 182,946 $ 193,211 $ 169,128 Paper Gain (Loss) $ 2,617 $ 2,258 $ 2,149 $ 1,958 $ 1,963 $ 1,718 Interest Earnings $ 815 $ 712 $ 691 $ 751 $ 744 $ 746 Yield-To-Maturity 4,28% 4,42% 4.53% 4.71% 4.91% 5.46% Weighted Maturity(Days) 359 354 354 356 341 383 Effective Duration 0.32 0.31 0.29 0.30 0.30 0.33 RDA Month-End Book Value $ 70,498 $ 146,689 $ 147,263 $ 159,400 $ 147,250 $ 154,800 Month-End Market Value $ 72,303 $ 148,327 $ 148,842 $ 160,838 $ 148,678 $ 156,229 Paper Gain (Loss) $ 1,805 $ 1,638 $ 1,579 $ 1,438 $ 1,428 $ 1,429 Interest Earnings $ 289 $ 604 $ 624 $ 659 $ 679 $ 741 Yield-To-Maturity 3.69% 3.96% 4.08%, 4.440% 4.74% 5.20% Weighted Maturity(Days) i 2v 904 902 853 922 913 Effective Duration 0.29 0.41 0.45 0.50 0.58 0.58 City Treasurer's Office 73-510 Fred Waring Drive Palm Desert,CA 92260-2578 760.346.0611 City of Palm Desert- Portfolio Characteristics 30 September 2001 Dollars in Thousands Aaeinq Interval Market Value < 1 M $ 36,068 General Fund Ageing <2M 4,987 <3M 2,100 60 <6M 14,029 43 <1YR 19,185 45 - <2YR 8,251 o30 <3YR 23 17 <5YR 15 s 2 . fi 10 >5YR - o Total: $ 84,620 <1M <2M <3M <6M <1YR <2YR Ratings• Market Value Credit Cuality AAA 48 AAA $ 81,183 AA 4,11919 AA A 4,101 2°i Al/Pi 11,025 A2°/ Unrated" 71,916 Unrated ' A1/P1 Total: $ 172,344 42% 6% Sector Market Value Asset Allocation Money Market Commercial Funds Paper U.S.Treasury $ 23,606 Federal Agency 31,112 Corporate Money Market Funds 32,216 Federal A r, Bonds Commercial Paper 11,065 16%9ercY 6°f° Corporate Bonds 13,342 LAW LAIF 30,000 17% RDA Loan 31,003 U.S.Treas*ryz5RDA Loan Total: $ 172,344 14% 180/6 Month City Yield LAIF Yield Variance Performance Oct00 6.15 6.52 -0.31 Nov 6.20 6.54 -0.34 7.0 Dec 6.22 6.54 -0.32 6.5 Jan01 6.10 6.37 -027 6.0 Feb 5.86 6.17 -0.31 Mar 5.72 5.98 -0.26 'a 5.5 Apr 5.46 5.76 -0.30 9 e.o g May 4.91 5.33 -0.42 4.5 Jun 4.71 4.96 -0.25 4.0 " Jul 4.53 4.64 -0.11 Oct00 Nov Dec Jan01 Feb Mar Apr May Jun Jul Aug Sep Aug 4.42 4.50 -0.08 Sep 4.28 4.35 -0.07 p LAIF Yield 13 City Yield ' Standard and Poor's Credit Ratings " LAIF, HighMark Sweep,and City Loan to RDA Page 2 of 7 City of Palm Desert Portfolio Holdings 30 September 2001 Market Ratings Par Value Issuer Coupon MaturityJ7 Cost YTM I Price Value I Moody's I S&P Medium-Term Notes $ 1,000,000 ASSOCIATES 6.50 8/15/02 $ 1,017,762 4.38 103.15 $ 1,031,487 Aa3 AA- $ 2,000,000 DU PONT 6.75 10/15/02 $ 1,998,747 6.81 103.94 $ 2,078,756 Aa3 AA- $ 2,000,000 GENERAL ELECTRIC 5.18 211/02 $ 1,998,178 5.48 100.84 $ 2,016,726 Aaa AAA $ 2,000,000 GENERAL ELECTRIC 6.52 10/8/02 $ 1,994,774 6.80 103.56 $ 2,071,238 Aaa AAA $ 1,000,000 GENERAL ELECTRIC 6.65 9/3102 $ 1,020,290 4.36 103.44 $ 1,034,424 Aaa AAA $ 4,000,000 GENERAL MOTORS 5.95 3/14/03 $ 3,999,781 5.94 102.51 $ 4,100,560 A2 A $ 1,000,000 MERRILL LYNCH 5.71 1/15/02 $ 1,004,715 4.03 100.85 $ 1,008,477 Aa3 AA- $ 13,000,000 Subtotals $ 13,034,246 $ 13,341,667 Commercial Paper-Discount $ 2,000,000 CIT GROUP 3.52 10/15/01 $ 1,985,529 3.55 99.88 $ 1,997,648 P-1 A-1 $ 2,000,000 COCA-COLA 3.54 10/12/01 $ 1,986,037 3.56 99.89 $ 1,997,800 P-1 A-1 $ 2,115,000 FORD 3.45 12/7/01 $ 2,093,312 3.49 99.31 $ 2,100,407 P-1 A-1 $ 2,000,000 GOLDMAN SACHS 3.74 10/12/01 $ 1,985,248 3.77 99.59 $ 1,991,833 P-1 A-1+ $ 3,000,000 HARVARD UNIVERSITY 3.34 11/20/O1 $ 2,974,950 3.37 99.24 $ 2,977,320 P-1 A-1+ is 11,115,000 Subtotals $ 11,025,076 $ 11,066,008 Agencies-Callable $ 2,000,000 FED HOME LOAN BANK 5.66 11/26/01 $ 2,000,000 5.56 100.47 $ 2,009,375 Aaa AAA $ 2,000,000 Subtotals $ 2,000,000 $ 2,009,375 Agencies-Coupon $ 2,000,000 FED HOME LOAN BANK 5.13 2/26/02 $ 1,988,260 6.68 101.06 $ 2,021.250 Aaa AAA $ 965,000 FED HOME LOAN BANK 6.75 2/15/02 $ 974,602 3.98 101.56 $ 980,078 Aaa AAA $ 4,000,000 FED HOME LOAN BANK 3.50 8/6/02 $ 3,994,815 3.66 100.88 $ 4,035,000 Aaa AAA $ 2,000,000 FED HOME LOAN MTG CORP 6.63 8/15/02 $ 1,998,470 6.72 103.56 $ 2,071,250 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 6.63 1/15/02 $ 1,999,564 6.70 101.19 $ 2,023,750 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 5.38 3115/02 $ 2,011,919 4.01 101.31 $ 2,026,250 Aaa AAA $ 2,000,000 FED NATIONAL MTG ASSOC 6.75 8/15/02 $ 2,041,149 4.29 103.69 $ 2,073,750 Aaa AAA $ 14,965,000 Subtotals $ 15,008,778 $ 15,231,328 Agencies-Discount $ 2,071,000 FED HOME LOAN BANK 3.46 7/30/02 $ 1,999,741 3.60 97.98 $ 2.029,166 Aaa AAA $ 1,000,000 FED HOME LOAN BANK 2.34 7/23f02 $ 980,175 2.41 98.03 $ 980,300 Aaa AAA $ 1,000,000 FED HOME LOAN BANK 2.33 6/20/02 $ 982,396 2.39 98.24 $ 982,400 Aaa AAA $ 4,000,000 FED HOME LOAN MTG CORP 3.77 3128/02 $ 3,873,914 3.92 98.80 $ 3.952,000 Aaa AAA $ 3.977,000 FED HOME LOAN MTG CORP 2.30 7/18/02 $ 3,900,774 2.36 98.06 $ 3,899,846 Aaa AAA $ 2,064,000 FED NATIONAL MTG ASSOC 3.51 6/20/02 $ 2,000,006 3.65 98.24 $ 2,027,674 Aaa AAA $ 14,112,000 Subtotals $ 13,737,006 $ 13,871,386 U.S.Treasury-Coupon $ 1,340,000 UNITED STATES TREASURY 6.25 8/31/02 $ 1,344,300 5.84 103.34 $ 1,384,806 Aaa AAA $ 13,000 UNITED STATES TREASURY 6.25 2/28/02 $ 13,019 5.84 101.56 $ 13,203 Aaa AAA NR=Not Rated Page 3 of 7 City of Palm Desert Portfolio Holdings 30 September 2001 Market Ratings Par Value Issuer Coupon Maturity Cost YTM I Price Value Mood-'s S A P U.S.Treasury-Coupon(continued) $ 300,000 UNITED STATES TREASURY 6.63 3/31/02 $ 301,005 5.85 102.03 $ 306,094 Aaa AAA $ 15,194,000 UNITED STATES TREASURY 5.88 9/30/02 $ 15,197,941 5.84 103.28 $ 15,692,553 Aaa AAA $ 16,847,000 Subtotals $ 16,856,265 $ 17,396,656 U.S.Treasury- Discount $ 166,000 UNITED STATES TREASURY 5.08 5/15/02 $ 128,677 5.84 98.56 $ 163,615 Aaa AAA $ 6,170,000 UNITED STATES TREASURY 5.03 8/15/02 $ 4,718,446 5.82 97.99 $ 6,046,045 Aaa AAA $ 6,336,000 Subtotals $ 4,847,122 $ 6,209,659 LGIPs $ 30,000,000 L.A.I.F. 4.35 10/1/01 $ 30,000,000 4.35 100.00 $ 30,000,000 NR NR $ 30,000,000 Subtotals $ 30,000,000 $ 30,000,000 Pooled Funds-AIM $ 21,341,715 PRIME PORTFOLIO 2.99 10/1/01 $ 21,341,715 2.99 100.00 $ 21,341,715 Aaa AAA 21,341,715 Subtotals 21,341,715 21,341,715' Pooled Funds-HighMark $ 9,471,549 CITY MAIN 2.34 10/1/01 $ 9,471,549 2.34 100.00 $ 9,471,549 NR NR $ 164,714 DESERT WILLOW 2.34 10/1/01 $ 164,714 2.34 100.00 $ 164,714 NR NR $ 1,237,564 OFFICE COMPLEX 2.34 10/1/01 $ 1,237,564 2.34 100.00 $ 1,237,564 NR NR 10,873,827 Subtotals 10,873,828 $ 10,873,828 City Loan to RDA $ 31,002,917 CITY OF PALM DESERT 4.35 9/30/31 $ 31,002,917 4.35 100.00 $ 31,002,917 NR NR $ 31,002,917 Subtotals $ 31,002,917 $ 31,002,917 Total Investments $171,593,459 $169,726,953 $172,343,539 Cash $ (23,849) CITY MAIN CHKG 0.00 10/1/01 $ (23,849) 0.00 100.00 $ (23,849) NR NR $ 50,793 OFFICE COMPLEX CHKG 0.00 10/1/01 $ 50,793 0.00 100.00 $ 50,793 NR NR $ 145,229 DESERT WILLOW CHKG 0.00 10/1/01 $ 145,229 0.00 100.00 $ 145,229 NR NR $ 28,949 OFFICE COMPLEX TRUST 0.00 10/1/01 $ 28,949 0.00 100.00 $ 28,949 NR NR $ 75,476 RECREATIONAL FAC CHKG 0.00 10/1/01 $ 75,476 0.00 100.00 $ 75,476 NR NR 276,598 Subtotals 276,597 276,597 Total Cash and Investments $171,670,057 $170,003,550 $172,620,135 NR= Not Rated Page 4 of 7 Palm Desert Redevelopment Agency- Portfolio Characteristics 30 September 2001 Dollars in Thousands Ageing Interval Market Value<1 M $ 33,247 portfolio Ageing w/o SLGSs <2M - <3M - 100 <6M 184 90 79 <1 YR 865 70 <2YR 1,022 a 60 <3YR 6,678 4400 <4YR - a° 30 >y^ <5Y R 20 16 >SYR 10 "; 0 0 0 2 2 h; 0 0 Total: $ 41,996 <1M <2M <3M <6M <1YR <2YR <3YR <4YR Quality• Market Value Credit Quality AAA A A AAA $ 41,178 57°i 00/ AA - A1/p1 A / of Al/P1 - Unrated" 31,125 Unrated' Total: $ 72,303 43'�> Sector Market Value Asset Allocation Money Market U.S.Treasury $ 8,749 Funds Federal Agency - Federal Agency 52% Money Market Funds 37,564 0°/6 LAIF 26,000 Commercial Paper - U.S.Treasury Corporate Bonds - 12% -LAIF Total: $ 72,303 360/6 Month RDA Yield LAIF Yield Variance Pertormance Oct 6.03 6.52 -0.49 Nov 6.02 6.54 -0.52 7.0 Dec 6.08 6.54 -0.46 6.5 Jan01 5.97 6.37 -0.40 6.0 ^q, Feb 5.73 6.17 -0.44 5.5 Mar 5.44 5.98 -0.54 'S 5.0 �a Apr 5.20 5.76 -0.56 S 4.5 May 4.74 5.33 -0.59 a.0 Jun 4.44 4.96 -0.52 3.5 Jul 4.08 4.64 -0.56 Oct Nov Dec Jan01 Feb Mar Apr May Jun Jul Aug Sep Aug 3.96 4.50 -0.54 Sep 3.69 4.35 -0.66 0LAIFYeldpRDAYield ' Standard and Poor's Credit Ratings LAIF and HighMark Sweep Page 5 of 7 Palm Desert Redevelopment Agency Portfolio Holdings 30 September 2001 Market Ratings Par Value Issuer Coupon Maturity Cost I YTM I Price I Value I Moody's S &P U.S.Treasury-Coupon $ 181,000 UNITED STATES TREASURY 6.25 2/28/02 $ 181,538 5.43 101.56 $ 183,828 Aaa AAA $ 422,700 UNITED STATES TREASURY 6.25 8/31/02 $ 425,461 5.43 103.34 $ 436,834 Aaa AAA $ 405,200 UNITED STATES TREASURY 6.25 8/31/02 $ 407,846 5.43 103.34 $ 418,749 Aaa AAA $ 9,100 UNITED STATES TREASURY 6.25 8/31/02 $ 9,159 5.43 103.34 $ 9,404 Aaa AAA is 1,018,000 Subtotals $ 1,024,005 $ 1,048,815 U.S.Treasury-Discount $ 198,000 UNITED STATES TREASURY 4.70 2/15/03 $ 150,793 5.45 96.37 $ 190,819 Aaa AAA $ 181,000 UNITED STATES TREASURY 4.63 2/15/04 $ 130,168 5.51 92.90 $ 168,144 Aaa AAA $ 7,143,000 UNITED STATES TREASURY 4.59 8/15/04 $ 4,989,671 5.54 91.13 $ 6,509,415 Aaa AAA $ 532,400 UNITED STATES TREASURY 4.66 8/15/03 $ 394,279 5.47 94.82 $ 504,832 Aaa AAA $ 344,600 UNITED STATES TREASURY 4.66 8/15/03 $ 255,200 5.47 94.82 $ 326,757 Aaa AAA $ 8,399,000 Subtotals $ 5,920,112 $ 7,699,966 LGIPs $ 26,000,000 L.A.I.F. 4.35 10/1/01 $ 26,000,000 4.35 100.00 $ 26,000,000 NR NR $ 26,000,000 Subtotals $ 26,000,000 $ 26,000,000 Pooled Funds-AIM $ 32,429,121 PRIME PORTFOLIO 2.99 10/1/01 $ 32,429,121 2.99 100.00 $ 32,429,121 Aaa AAA $ 32,429,121 Subtotals $ 32,429,121 $ 32,429,121 Pooled Funds-HighMark $ 4,920,593 HOUSING AUTH CHK SWEEP 2.34 10/1/01 $ 4,920,593 2.34 100.00 $ 4,920,593 NR NR $ 204,092 HOUSING AUTH TRT SWEEP 2.34 10/1/01 $ 204,092 2.34 100.00 $ 204,092 NR NR $ 5,124,685 Subtotals $ 5,124,685 $ 5,124,685 Total Investments $ 72,970,806 $ 70,497,922 $ 72,302,587 Cash $ 57,611 HOUSING AUTH CHECKING 0.00 1011101 $ 57,611 0.00 100.00 $ 57,611 NR NR $ 53,982 HOUSING AUTH TRUST 0.00 10/1/01 $ 53,982 0.00 100.00 $ 53,982 NR NR $ 111,593 Subtotals $ 111,593 $ 111,593 Total Cash and Investments $ 73,082,399 $ 70,609,515 $ 72,414,180 NR=Not Rated Page 6 of 7 ` STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert('City')and the Palm Desert Redevelopment Agency('RDA')are governed by federal, state,and local law. The City Treasurers*Statement of Investment Policy' is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 30 September 2001,the City and the RDA investment portfolios were in compliance with all applicable federal,state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity,and yield (in order of priority). Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectully submitted on 10 October 2001, PauLS. 4i7dwn4 GGM.T. " City Treasurer i SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality % of City %of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio 53601 a Palm Desert Bonds 5 Years No Limit Not Authorized 1 53601 b , ,`w .U.S:Tieasunes ,"m'a: ",S Years' No-LimiYr A .N hs SYearsy "No Limit, %?2i8% ' ;`9:9%'•,` 53601 c CA State Debt 5 Years No Limit Not Authorized 53601 d) CA Local Agency Debt 5 Years No Limit Not Authorized 53601 a ;.:; Feder`al?A encies 5,Yeani:', fNoLimit-" �5`Yearsi P! 30°/az ,•s':... '"18(tgo . . 10aa ` A=1 &'P8rD `409 A 270D s `15/30%� 270`Das53601 f i `Bankers's-Acceptances i 180 Days40% 1_ 0.0%, 53601 6 %an.0'.0%"� '"OEO%" 53601 h ', d; <"Ne' otia6le CDs 2 Years';:; 30%°a'; .�, :;,. ;:5 Years: 630%. . AA'&'Aa , .:"0:0%, k „ •0'0"/e Z5 53601 i Re os 1 Year No Limit Not Authorized 53601 i Reverse Re os 92 Days 20% Not Authorized '53601 , 4`,Mediumj&m Note"s�'= ;5 Years"., w' 30%= K SY�An aais° _.. 53601 k ";MutuaGFunds Qd. . °90 Days 20% _•; ;AAA&Aaa �90iDa's s�i20%u, AAA&',Aaa �%00/*,a ti,53 3%1 53601 I Trust Indenture Debt Not Authorized 53601 m Secured Bank Deposits 5 Years No Limit Not Authorized 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities AA(Security] 16429 °'' fi h< ?.LAfF :> ;No;LimiQ :: `^ .5 .,NoSL'imtt _ :,r 3s., .. 1Z:Zg°3 •a, goA ,. 81.7% 100.0% e 1 The Ci loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. e CertHied CalHornia Municipal Treasurer Page 7 of 7 § § § o ) 22 � � ` 3 o o k e , K f f0 § R $ 7 § ! § � � 2 - ) \ ) § ;\ § {) zzz � § ) §/{ 2 ](CD - ° m w CA z z z q ] m \ § § ® [ / / } § 7 CO) coci q - - (A (A § \ � k � co \ \ \ \ c c o 0 o q 2 i 00 � b Q CO) 0 - - - - ® cok § § -4 / m a = w m M Cn k ) OD w \ } § § } / j \ m ) \ / $ ) 2 G G e q \ \ } \ \ a o o 2 . n o o n § § ) ) ) ) J z ` 22g § z § § § § § 00 $ 5 § ) B ! @ E § 0 p k 3 z $ > > > § M 3 ] 2 ] \ 0 . m y 2 g Q ] c mj + § k90 a) a) [ § ) CO) § j \ § k E 0C� CD o c o c X $ 2 / Cl) , @ co ° 7 - - - e - ° 22 k \ \ \ \ / § cn =N CD w a c q \ ) ) § \ \ 90 c \ k c \ \ § k j \ k ) ( k § F k Co ( k ) m § E ( ( > « o n ; m ) ) > > ] k A O A A O 3 O O p�j i a tJ V n I p W AO C W m m O O w J N � O O < O mp y O A n () T C 6 00 < < r $ 0 m0 D c .11 M A m Z r O O = C < 0 , fD r A Q 3 n O z CD� 01 ,E z N 3 O O T � D r o s o C 3 < » O c m CO) �g c y z c N 3 p O q � N C H � O O 6 � m m N W 0 0 00 T 0 o 0 o m 0 0 0 o v c 0 0 o o `m 7 W y m E; m O O 9 3 O � g 5 Q 9 m T m I; m O p O a O u 0 CITY OF PALM DESERT TREASURY INTEROFFICE MEMORANDUM To: Members of the City Council Members of the Finance and Investment Committee From: Paul S. Gibson, C.C.M.T., City Treasurer jw Date: November 14, 2001 Subject: Quarterly Account Statements on Deferred Compensation Plans Enclosed are quarterly account statements from Nationwide Retirement Solutions and from ICMA Retirement Corporation on the 457 Deferred Compensation Plans that they are administering on behalf of the City of Palm Desert ("City"). I am providing these statements to you for your review and information. The State Treasurer of California, Philip Angelides, has issued an opinion which states that local agencies should provide their governing bodies with periodic disclosure reports on all 457 Plan assets that are held in trust for employees. Although City employees determine: (1) how many of their cafeteria credits, if any, are to be applied to a 457 Plan; (2) who the plan administrator shall be; and (3) the investment option(s) to be selected, 457 Plan assets are technically considered to be City assets since they are held in the City's name. While this affords 457 Plan assets favorable tax treatment under the Internal Revenue Code, it also triggers a reporting requirement for the City. WMEFFREMORD 2000MEMORANDATINANCE COMMITTEEW57 PLAN ACCOUNT STATEMENTS.DOC -Nationwide' CITY OF PALM DESERT Retirement Solutions Retirement � Solutions Deferred Compensation Program (457) Statement of Account 11111 oil It II1111111111191111 hill III IIIIII II till IIl11t I IIIIIII PAUL GIBSON Page: 1 of 3 FINANCE DIRECTOR Entity: 0516 73510 FRED WARING DR PALM DESERT CA 92260-2524 Please review your statement carefully. Corrections may not be accepted more than 30 days after the closing date of the statement. Your Aallnt Value As;C # e)?iembelQ, 2{1(? $2,401,553.34 Your Total t�elerral /Trnsers In Tc #] tel t $2,289,476.70 YourTctal Wi€hdrawaslTransl`era Oufi To fat £ 1 s - $502,185.16 S Your Total Chargelir �lts Tc Jute- 1 m` a - $434.00 dour Total Ga►nfl Ursa Tc pate s = $614,695.80 The amount shown above in Total Charges/Credits To Date is the total amount of charges or credits since you have joined the plan. Report Period: July 01, 2001 Thru September 30, 2001 Your 457 Deterred;Campensallo>1 I'Cn Acct�utit,1faluoa.BY Fand,Art} 0 ` OB/30ue Deferrals/ Withdrawals/Transfers Charges/ 09/alue 7 Fund Name Value Transfers Exchanges Transfers Credits Gain/Loss Value ljle Des Aggressive Port 1,110.90 36.80 • 1.116.03 0.00 0.00 -31.87 0.00 Life Des Conservative Port 235.00 11.80 -247.46 0.00 0.00 0.66 0.00 Am Cent Value Ic 2,904.07 536.64 5,142.52 0.00 0.00 -075.09 7,908.14 Life Des Mod Agg Port 230.79 38.80 -263.01 0.00 0.00 -4.58 0.00 Life Des Mod Constve Port 700.39 35.40 -732.62 0.00 0.00 -3.17 0.00 Life Des Moderate Port 231.42 11.80 -240.25 0.00 0.00 -2.97 0.00 Z-. Bond Fnd of America, Inc. 21,774.78 239.94 0.00 0.00 0.00 219.73 22,234.45 Brwn Cap Mgmt Sml Co Fnd 4,900.73 1,392.04 73.99 0.00 0.00 -1.368.58 4,998.19 Drey Appreciation Fnd Inc 3.241.12 530.25 12,273.11 -486.78 0.00 -1,313.42 14.244.28 Drey Prem Mdcapstk Cis A 4,416.46 362.82 288.09 0.00 0.00 -77226 4.293.11 DreyS&P 500 Index Fund 23,261.42 3,983.34 •1,623.34 -953.00 0.00 -4.331.77 19.912.99 � Drey Prin3rdcnt Fnd Cis Z 23,261.42 983.34 0.00 0.00 0.00 .4.331.77 18,912.99 Fid Asset Manager 9.575.97 0.00 0.00 -330.20 0.00 -747.39 8,498.38 CUSTOMER SERVICE (877)677-3678 (ESPANOL) (800)649-9494 TDD: (800)848-0833 Web Site: WWW.NRSFORU.COM If you have any questions or concerns about your account, please call the Customer Service number, or write to the following address: NATIONWIDE RETIREMENT SOLUTIONS PO BOX 16766 COLUMBUS OH 43216-6766 90697998P000000441 Report Period: July 01, 2001 thru September 30, 2001 Page: 3 of 3 Entity: 0516 As- aF $pl ember 0, Q09ut Itrl xt+ eing Inuested As Fotlaw� M. Fund Description Percent Unit Value Units PVF Ptnm Voyager Fnd CIS A 4.2115 17,658.3706 SCF Nat Small Company Fnd 1.2610 8,200.8614 TCG Am Cent Growth Fnd Ic 6.2860 1.728.9546 TO Am Cent Int'I Disc Ic 1.2072 3,146.8123 TCL Am Cent Ultra Ic 2.8041 33,947.8875 TFF Temp Foreign Fnd Cis A 1.9219 15557.7611 TRI T. Rowe Pr Int'I Stock Fnd 1.6371 7:803.2937 - Qur .3( Insufnnct� Inhrrmaki�tn ...:..._ L .L. Y Policy Premium Report Period Account Surrender Death Ufa Option Number Per Pay Premiums Value Value Benefit Universalife 106.67 499.74 17,170.04 10,471.13 326,139.00 Plan I (Universal Life) 97.48 584.88 6,976.57 3,744.01 261,616.00 Int...... me Jnder heee Mans t tclude ....::. -. .:..._.. .-........... 4. :: a y Investments Under This Plan Include: (1) Nationwide Life Group Fixed Fund Retirement Contract, Or (2)The Fund Options Within The Nationwide Life Group Flexible Fund Retirement Contract. _ � h lal�r�ar#ant Ilnfiafmatlt�tl - The new tax law lets you defer as much as $11,000 in 2002. And if you're 50 or over, you may be able to defer an extra$1,000. There are many other changes that may help you reach your goals for retirement. Let one of our 50 Nationwide N Direct Access Retirement Specialists help you evaluate your participation in light of the new tax law. Call toll-free at 1-877-677-3678. o The 4th quarter effective interest yield for deposits received after 6/30/2600 into the Nationwide fixed return option is 5.65%.The 4th quarter effective interest yield for deposits prior to 7/1/2000 into the Nationwide fixed return option is 5.50%. The 2001 guaranteed minimum effective interest yield is 5.15%. o IF YOU ARE AGE 65, PLEASE CALL THE SERVICE CENTER AT 1-877-677-3678 TO VERIFY YOUR DATE OF BIRTH. THANK YOU. C 90697999P90p9004a3 Quarterly Financial Report for r' A 457 Deferred Compensation Plan ICMA RETIREMENT CORPORATION 07/01/2001 through 09/30/2001 Page 1 of 7 Th.,.blic ery c�Nnngepanv aims l9>2 j�i'�e[iSiI�G A.iVm iW,pF[i RC .... .n .• • '.>F" . To learn more about the impact of pension portability legislation on 457 and 401 accounts, and about ICMA- PAUL S GIBSON RC's enhanced IRA products, please visit the CITY OF PALM DESERT Retirement Reform Resource Center at 73 510 FRED WARING DRIVE www.icmare.org/retirementreform. PALM DESERT CA 92260-2564 pjankl4aey on Ot< kk a Per[Od. diri$09j+' / EL1AL` c. _.>:.....F a ... L ....,Y.,,.:. n t x , .,••..?'` et•.C�n�� Zo.>v��.A�L:nr.�,. ..�•-. �: :....,•..- $...:• .>c"Y:: Fund Balance on 07/01/2001 $2tEt}56tx1 4Q Plan No 302129 Contributions Roll-Ins Distributions gl'; >sr78t» Fund-to-Fund Transfers Service Fees a .`L,♦e,TRl EarlincsgI}� tt$$ d Baiance on 09/30/2001 $2 5A 599t9.. Total Plan Assets " 48,$998 = .."...".a,,..,.:.:,.n..: v:n.m..nr.v......v.v...,•.n.,v..v.•......,.... .n.. .n..•.nw.•...""n..:..•..�•••..•.,..v:,ro•. ..M'J\n..>Yx. '. +,;e.,;".Cpx.ti.•.roe:J.o>x<:,:Y•<�yvYx:\i:i.1fl:::=x.:x:L::CL.Y.K>•:;geLy::.' 711nmaryby Fnnd' t♦ <= o a♦ ' -'I `< ,,,,,,,,,..y� m��7�� �eL L F� o R :< Fob.. \ nierrlpl0f ' YyySutleg ip por :.> .•A.vL ....v.0 n.. :.• •:i �uSnw.in Y>. C>.y=�Q'vt(v�.5.n.n.n.,.ifv\n\ nS `v♦•�nv :}i .'f•n L ..•...•.. \53 .Ann,. • Balance on 07/01/2001 $4,303.95 $39,203.26 $1,338.27 $29,883.14 $7,918.46 Contributions 734.20 2,517.06 0.00 1,270.24 1,380.10 Roll-Ins 0.00 0.00 0.00 611.21 0.00 Distributions 0.00 0.00 26.65- 0.00 0.00 Fund-to-Fund Transfers 0.00 0.00 0.00 0.00 0.00 Service Fees 1.77- 2.63- 0.00 5.52- 0.00 Earnings 662.95- 6,445.57- 179.26- 9,312.13- 1,646.46- Balance on 09/30/2001 $4,373.43 $35,272.12 $1,132.36 $22,446.94 $7,652.10 Percentage Invested Less thin 1 % 1% Less than 1% 1% Less than 1% .............::.•.:.•:.::..v.v.:.�r.i...v.,.::..:n•..�.:n.:n..::.v.:.n..n:..:.::..:::::::::.:.n:w ..............n•.n.:.n..••••. vv.....•>y.vn>Y Y.n..•.\YJ.y�•v, w..• O:pY.pYyYiN>;<:,M;p>:piY�>:;:M>:m.•:n:,J:O�•i<en%^:.y»::�:p..2:.=:in:.Y.x s3ammarybyl�und£iVHir p�y�iR.SrI1�':�'•]� �{l�Y,'�^ ` JlIY 4Q^xYe^^ MIiQrRtWC u e , ` 4C .. i Ai4Q1f?M[ •� .,...,�... : ,a..:n.., •.. ..z ,Ycn ., ". ._ ..: ,a .�c.+ ,c• >s_ rv@\wi3>..a' . aWv ..� �y�......., 1 y� rQW FK;. Balance on 07/01/2001 $0.00 $24,741.63 $1,118,130.21 $2,200.25 $2,747.23 Contributions 14.37 1,758.48 4,473.84 619.96 417.45 Roll-Ins 0.00 0.00 0.00 844.04 0.00 Distributions 0.00 0.00 4,227.37- 0.00 0.00 Fund-to-Fund Transfers 0.00 0.00 0.00 0.00 0.00 Service Fees 0.00 0.00 1.34- 4.03- 0.00 Earnings 0.28- 4,461.97- 231,565.80- 526.52- 563.60- Balance on 09/30/2001 $14.09 $22,038.14 $886,809.54 $3,133.70 $2,601.08 Percentage Invested Less than 1 % 1% 35% Less than 1% Less than 1% Please review your statement carefully. or you suspect an error.you must not(y ICMA-RC at 1-800,926-7272 within 120 days gfter the end of the quarter in which it occurred. Faihare to do so writ!prevent ICMA-RC from adjusting your account. 51 777 North Capitol Street, NE a Washington, DC a 20002-4240 a www.icmarc.org ICMA-RC Services. LLC. is a broker/dealer affiliate of the ICMA Retirement Corporation. member NASD and SIPC. Quarterly Financial Report for A 457 Deferred Compensation Plan `' 07/01/2001 through 09/30/2001 Page 2 of 7 PlaltNantieL'11�-�sk+.ilTYYt0�5EIi't` ..� � ;: ,' Plari iip 302129.E •; # ` �. .. ,,.,,.,,..:a .: , .....,.. . ,: ,.. ....,.. .. ..,,......., & mmary by t uad coat M 5 �5. Ad& ': Y3road.l4Yarke#: 7515 apitai Appxec 'a. . � At 13 wth- Iadrts Bp Situatiiva ^ . ..:... . .. .: . m Balance on 07/01/2001 $17,111.32 $42.48 $39.57 $103,058.33 $4,422.88 Contributions 1,873.37 280.73 28.73 1.938.42 98.10 Roll-Ins 0.00 0.00 0.00 t 0.00 0.0.0 Distributions 0.00 0.00 0.00 0.00 0.00 Fund-to-Fund Transfers 0.00 0.00 0.00 0.00 0.00 Service Fees 0.00 1.80- 0.00 0.00 0.00 Earnings 2,840.97- 19.39- 3.44- 17,013.98- 66252- Balance on 09/30/2001 $16,143.72 $302.02 $64.86 $87,982.77 $3,858.46 Percentage Invested 1% Less than 1% Less than 1% 30% Less than 1% summatq by Fswd oont 500 Stoe$ Cnbtpth a 3 Ifs fi d# tsy Tnfles 8c)CuCC>11ne: 7+g fia 1�t+ :: a(, �' it ptl[$. . :' mC GX4W'�'hi Balance on 07/01/2001 $12,064.50 $667.59 $14.75 $10,970.64 Si4.699.90 Contributions 1.705.61 75.00 30.00 865.38 ',64128 Roll-Ins 0.00 0.00 0.00 0.00 0.00 Distributions 29.41- 0.00 0.00 0.00 0.00 Fund-to-Fund Transfers 0.00 0.00 0.00 0.00 0.00 Service Fees 0.00 0.00 0.89- 0.00 18.00- Earnings 1,948.75- 98.65- 4.88- 1,127.55- 7,017.16- Balance on 09/30/2001 $11,791.95 $643.94 $38.98 $10,708.47 $31,306.02 Percentage invested 1% Less than 1% Lessthan 1% Less than 1% 1% Swtmarybp;t¢ondcont. EQ�t1 ' Lon�Te>rm, $ ,dsset a 15ca8itior#a1 14T�5, Yacame fiFowihahivarfl Allocat2ort drawtl Balance on 07/01/2001 $1,442.85 $21,236.37 $0.00 $144,399.81 $15,707.71 Contributions 596.57 4,546.16 94.60 1,080.00 4,601.52 Roll-Ins 0.00 0.00 0.00 0.00 0.00 Distributions 0.00 2,424.09- 0.00 891.47- 0.00 Fund-to-Fund Transfers 0.00 0.00 0.00 0.00 0.00 Service Fees 3.17- 0.00 0.00 0.00 4.50- Earnings 190.30- 3,159.85- 4.42- 12,079.44- 1,964.17- Balance on 09/30/2001 $1,845.95 $20,198.59 $90.18 $132,508.90 $18,340.66 Percentage Invested Less than 1 % 1% Less than 1% 5% 1% I04AO26-0010004 III I'�I'I III�I III I'IIIIII III II II W M Quarterly Financial Report for A 457 Deferred Compensation Plan ICMA RETIREMENT CORPORATION 07/01/2001 through 09/30/2001 Page 3 of 7 rine public seMce nintagerm int since 1972 IN unxmarg4tg T uad O anta�vissts fiaaeaevatixe fond kk , PCB fJrleatexl ST91R o`�' S Balance on07101/2001 $372,742.35 $43,984.24 $22,539.07 $769,990.68 Contributions 2,221.14 4,840.16 1,647.96 8,271.23 Roll-Ins 0.00 0.00 0.00 0.00 Distributions 4,308.94- 0.00 21.07- 698.61- Fund-to-Fund Transfers 0.00 33,212.89- 0.00 33,212.89 Service Fees 18.00- 13.50- 7.22- 7.63- Eamings 7,483.71- 1,432.62- 1,108.83 8,946.66 Balance on 09/30/2001 $363,152.84 $14,165.39 $25,267.57 $819,715.22 Percentage Invested 14e/p 1% 1% 32% _ Note:Amounts shown net of applicable fees and expenses.Earnings include dividends,interest and realized and unrealized gains and losses. 71.a�aREpeWf'C41'Sfl+d'km.CP11RpRnRmfl01!Y3C, #dtrlp7W>'f�+pafefbtlt4lt40A iRPPtwpen, yl+ FD'>tCM1f3rRG'3 Yptar dw'k iCC 7P1ttYY.a.Bal9aif ._ :c :r ° `A11.IG .RGP1 YtlClp!AritR Netiartali N. `.- \ ti •r..>.?t�\erne: \�4 Domestic Equities 51% Domestic Equities SF/6w Fixed Income 46% 0 Fixed Inme 37% International 3% ® International 4% Cash Management 1% Cash Management 4% Fund category must equal at least 0.5%of assets to be displayed.Due to rounding,percentages may not sum to 100%. S>lsire V81t(0:,i Sfistes Oh 07l011Z001j $3ta#sa OlL 09/.�/,�.�5 >g #9haeea it acne of #Wires :(rates=of" M.S. Foreign 395.5830 $10.88 467.7465 $9.35 International 2,899.6498 13.52 3,099.4834 11.38 Overseas EgtyIndex 131.2030 10.20 128.5307 8.81 Aggressive Oppor 902.2685 33.12 974.6825 23.03 M.S. Aggr Growth 331.3163 23.90 395.0489 19.37 M.S. Sm Co Equity 0.0000 10.68 1.5502 9.09 M.S. Momtm Growth 1,334.5000 18.54 1,437.5828 15.33 Growth Fund 38,850.9456 28.78 38,861.0668 22.82 M.S. Lrg Co. Growth 159.4386 13.80 290.1570 10.80 M.S.Growth 128.4952 21.38 149.4017 17.41 so 777 North Capitol Street, NE e Washington, DC e 20002-4240 a www.icmarc.org ICMA-RC Services. LLC. is a broker/dealer affiliate of the ICMA Retirement Corooration. member NASD and SIPC. Quarterly Financial Report for A 457 Deferred Compensation Plan a 07/01/2001 through 09/30/2001 Page 4of7 ��kt i�teilisL'll'If PgL.�IE CE�`tR'f 4'tmkt tip 5E12125� ' :: . $hare Yahce"; Shares an(i�'fd1f200i r5�axes oti 0913b120oa;' r: , 1k Shares . Vaixt p£ #6b xes>,,,'c Xra#me.a1<',... Qwuod #ina Sl+nreso Uwtt+se€' M.S. Capital Apprec 895.8806 19.10 1,000.2305 16.14 M.S.Value 3.1842 13.34 24.4749 12.34 M.S. Contra Growth 2.0058 19.73 3.6117 17.96 Broad Market Index 3,831.1645 26.90 3,908.6083 22.51 M.S. Sp Situation 173.3103 25.52 177.3191 21.76 500 Stock Index 821.8325 14.68 944.8669 12.48 Growth& Income 41.4649 16.10 46.3935 13.88 M.S. Lg Co Value 1.4521 10.16 4.4703 8.72 M.S. Grwth & Inc 482.0141 22.76 " 521.8555 20.52 All-Equity Growth 1,724.6472 20.12 1,920.6149 16.30 Equity Income 51.3653 28.09 73.0489 25.27 Long-Term Growth 1,182.4256 17.96 1,313.3027 15.38 M.S. Balanced 0.0000 18.02 5.3173 16.96 Asset Allocation 6,313.9399 22.87 6,321.9895 20.96 Traditional Growth 937.7733 16.75 1,224.3369 14.98 Savings Oriented 22,853.6089 16.31 22,725.4590 15.98 Conservative Growth 2,826.7510 15.56 970.2325 14.60 Core Bond Index 1,473.1420 15.30 1,576.2670 16.03 C�o-n'trIbntto�,'Y,1st3ng .? s .,. ,.. ......... .... ..o. ,.. a .. .... .,, .,.,..,a, o a,.,.>... ,,.... n., 5S♦...aJ.b..,.,.N a.a,� .. , ....,.. ..s...u., >� . Date 07/10/2001 07/23/2001 07/2V2001 08/09/2001 08/20/2001 09/0412001 Total $8,593.51 $8,843.51 $155.46 $8,648.97 $8,821.97 $8,021.97 Date 09/17/2001 Total $8,536.27 Total Contributions This Period $51,621.66 104AO26-001-0 04 N Jill 111111111111111111111111111 W M Fund Performance Report For Your 457 Deferred Compensation Plan ICMA RETIREMENT CORPORATION Page 5 of 7 The Wbli[sllviCe Varwgeooint sign 19R As of SEPTEMBER 30,2001 AVERAGE ANNUAL RETURNS ICMA-RC 3rd Qtr Year- 1-Year 3-Year S-Year 10-Year Inception Funds 2001 . ld- or sine Date Data Inception SEEMI Portfotlo Funds Savings Oriented -2.02% -021% 1.01% 480% 0.82% 7.32% 02/09/1995 Conservative Growth $.17% 4.23% 485% 481% 7.08% 7.13% 04/01fl996 Traditional Growth 4057% 42.24% 4425% 5.08% 7A9% 7.63% 04/01/1996 Long Term Growth -14,37% •17.53% 088% 727% 7.75% 0.15% 04/01/1"ll AMquity Growth 48.99% -23.37% -27.56% 101=000 Benchmarks: U.S.30 Day Tab 0.89% 326% 4.89% 4.96% 5.06% 4.63% _ Lehman Go✓t.Cmdd Wax 4.76% 8.44% 1117% 5.91% 8.00% 7.83% - WiIshire5000Index -15.90% -20.T7% -28.92% 196% 8.61% 11.91% MSCI EAFE Index -13.96% -26.35% -28.28% -0.87% 0.14% 424% PLUS Fund(2) 4.58% 4.94% 5.08% 5.32% 5.66% 622% 01/01/1991 Cash Management 0.72% 2.79% 424% 4.64% 4.56% 4.84% ON01/1989 Core Bond Index 4.77% 787% 12A9% 489% 6.72% 6.58% 121MA974 US Treasury 5.67% 7.60% 12ZM 4.90% 7.00% 627% - 07/01/1992 Benchmarks: - . . .. 960ay 7--Bills - 1.08% 3.76% 5.45% - 5.32% - 5.34% 4.95% - LehmanGo✓t isaftIndex 4.76% 8.44% 13A7% 5.91% 8.00% 7.83% Because Moro re no trading market for Investment coMreca,PLUS fund mums consid of yield only.Returns are annualized for sees of cw warwon with other some value ormorromm.Minimum nnuatized effective yield for Me More month period ending 12/3112MI is 4.00%. .Ass OeatlOn a0[t3a[anced .. . Asset Allocation -8.35% 42.92% 4592% 1.32% IL31% 9.64% 12/01/1974 MS-Balanced Income(Fidelity Puritan Fund) -6.94% -7.08% -4.75% 4.48% 8.53% 9.57% OEM/1995 MS-Balanced Fund(Vanguard/Wellington Fund) -5.88% -3.31% 298% 5.44% 9.49eh 9.64% 01/02/1996 Benchmarks: 60%S&P 500140%Lehman Gov/Cr -7.20% -9.48% -1221% 3.98% 9.76% 10.98% Equity Income&Yale Equity Income .10.04% -5A3% 2.81% 424% 1092% 13.16% 04/01/1994 Benchmarks: S&P/BARRA Value Index -1621% -18.22eA -16.89% 4.72% 9.80% 12.68% Russell 1000 Value Index -10.95% -12.08% -8.92% 5.60% 11.67% 13.85% IL VP=Vantagepoint Funds, only=VantageTrust Funds, No identifier=Fund not managed by ICMA-RC 777 North Ca itol Street, NE a Washing ton, DC a 20002-4240 a www.icmarc.org 49 P 9 ICMA-RC SPNIfPS. I 1 C. it a hrnkar/r1PalPr affiliate of ihP ICMA RPtiramant CnrnnrRtinn mamhar NACn anti SIPC Fund Performance Report For Your 457 Deferred Compensation Plan Page 6 of 7 'frlaju i48M0�17'Y 4iF#tAL111;13E5£r4'C" . �1art No�02f2S FUND PERFORMANCE CONTINUED As of SEPTEMDER 30,2001 AVERAGE ANNUAL RETURNS ICMA-RC 3rd Qtr Year- ]-Year 3-Year 5-Year 10-Year Inception Funds 2001 10- or Since Date Date Inception 500 Stack Index Fund 44.99% •21.06% -27A8% 0.95% 5.25% 06/0M 997 Growth&Income 43.79% 40.23% 47.72% 11.55% - 11.57% 18/01/1998 Broad Market Index -1642% •21.87% 30.11% 1A4% 7.56% 10,51% 11/01/1988 MS-Growth&Income(Fidelity G and I Portfolio) -9.84% -15.31% •18.80% 2.82% 9.63% 12.02% -06106/1995 MS-Large Company Value(Lord Abbett Affiliated Class A) -14.17% •18A30A - •12.800h 10/022000 MS-Value(American Century Value Fund) -7.50% •1.12% 11.57% 821% - 5.300h 09/0211997 Benchmarks: S&P 500 Index -14.68% •20.39% •26.62% 2.04% 10.23% 12.69% Wilshire 5000Index -15.90% -20.77% •28.92% 1.98% 8.61% 11.91% ' Growth 20.71% -29A8% 36.80% 5.60% 7.70% 10.34% 04/01/1983 MS•Sodal Responsibility(Neuberger&Berman Socially Responsive) -11.51% •14.68% •13.68% 2.51% 5.49% 04/01/1997 MS-Special Situations(Gabelli Value Fund) -14.73% •7.13% -9.90% 10.00% 14.85% 13.85% 10/02/1995 MS-Contradan Growth (Fidelity Contra Fund) -8.97% -18.47% •23.96% 4.94% 10.04% 10.74% 01AM1996 MS-Capital Appreciation(Fidelity Magellan Fund) -15.50% -20.96% -28.52% 3.59% 9.21% 8.69% 01/02/1996 MS-Growth (Fidelity Blue Chip Fund) -11157% -26,79% -35.92% -0.44% 7.44% 9.15% 06W1995 MS-Large Company Growth(MFS Mass Investors Growth Stocl -21.74% •34.98% -43.95% 2.60% 2.60% 10Po7/1998 MS-Momentum Growl!)(American Century Ultra Investors Fund) -17.31% -24.93% -37.73% 0.950/6 6.650% 7.72% 01102/7 99 6 Benchmarks: S&P 500Index •14.68% -20.39% •26.62% 2.04% 10.23% 12.69% Wilshire 5000Index -15.90% -20.77% •28.92% 1.96% 8.61% 11.91% S&PiBARRA Growth Index -13.20% -22.79% -35.70% -1.32% 9.94% 12.26% Aggres511re Growth&Smatt Co. Mid/Small Company Index Fund -MA2% -24,02% 38.87% 0.90% 1.36% O&W997 AL Aggressive Opportunities 30A8% 3123% 4321% 7.32% 5A7% 12.66% 10/01/1994 MS-Small Company Equity(T.Rowe Prce Small Cap.Stk Adv CL) •14.89% •11.06% •9.10% 10/022000 MS-Aggressive Growth(Putnam Voyager Fund) •18.95% -30.300h -40.64% 4.14% 6.11% 11.01% 06/02/1995 MS-Small Company Aggressive(Invesco Small Company Growth) -28.81% -36.86% - - -48.10% 10/022000 Benchmarks: Wilshire 4500 Index -20.86°k •24.03% •38.440/. 1.82% 4.17% 9330/6 Russe112000Index •20.79% •15.36% •21.21% 5.00% 4.54% 10.01% tjj, VP=Vantagepoint Funds, ,,JL only=VantageTrust Funds,No identifier=Fund not managed by ICMA-RC 104A026-00"006 III IIII I I IIIII II'I'II'lll I III�'I�I W M Fund Performance Report For r Your 457 Deferred Compensation Plan ICMA RETIREMENT CORPORATION Page 7of 7 ir,e wum..r.K..v.,,useco;m,;.,ce+sn FUND PERFORMANCE CONTINUED As of SEPTEMBER 30,2001 AVERAGE ANNUAL RETURNS ICMA-RC 3rd Qm Year- I-Year 3-Year 5-Year 10-Year Inception Furls 2001 to- or Since Date Dare inception Iptern2ifnll3[ G[G68[ . �:; Ovemeas Equity Index Fund 43.63% 48.58% -NJ4% -231% .189% OB/ M997 international 45.83% 48.98% -30.10% .0.86% -0.36% 1.06% 10101/1994 MS-Foreign Fund(Putnam International) -14.06% -26.38% -27.74% - -2.95% 07/0111 9 9 9 Benchmarks: MSCI EAFE Index -13.96% -26.35% -2128% -0.87% 0.14% 424% MSCI World Index 14.30% -23.18% •27.87% 0.55% 4.95% 8.060% JL VP=Vantagepoint Funds, ,& ony=VantageTrust Funds,No identifier=Fund not managed by ICMA-RC \A securities are distributed by ICMA-RC Services,LLC,a broker-dealer affilliate of the ICMA Retirement Corporation and a member of the National kwociation of Securities Dealers,Inc.,(NASD)and the Securites Investor Protection(SIPC). For more information contact ICMA-RC Services,I.I.C.at - 1-800-669-7400 or write to 777 North Capitol Street,NE Washington DC 20002-4240. 'edormance shown is net of all asset-based fees and expenses. See the Retirement Investment Guide for more information. Past performance is not a guarantee of future returns. Imestnent returns may fluctuate so you may have a gain or loss when you transfer or withdraw your funds. Returns are rnnualized for periods greater than 1 year. - 777 North Capitol Street, NE • Washington, DC • 20002-4240 • www.icmarc.org 48 IrhAA-RC rpnriroc I I r is A hrnkpr/HPA1Pr affiliate of the ICMA Rptirpment Cnrnnratinn mpmhpr NAV) anti WC N � �x CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: Approval of Palm Desert Treasury Policies and Procedures Manual for 2002 APPLICANT: N/A CASE NOS. N/A DATE: 21 November 2001 CONTENTS: Palm Desert Treasury Policies and Procedures Manual Recommendation: By minute motion: That the Finance Committee recommend that the City Council adopt the Palm Desert Treasury Policies and Procedures Manual for 2002, as amended. Background: City policy requires that this manual be updated annually. This is the update for calendar year 2002. Please review these policies so that the Finance Committee at its November meeting, may recommend them to the City Council for approval. Policy No. 2 (Investment Policy) is not included; it will later be provided for your review at the December Finance Committee meeting. Significant policy changes are listed below. Policy No. 4: Due to speed of trading, it is not practical for Finance Operations Manager to verify trade terms and to interface with custodian. These responsibilities currently reside with Investment Manager. Staff Accountant currently verifies trade terms after trade completed. H:VjeftyiWoW 2000MEMORANDAIFINANCE COMMITFU12002 P&P MANUAL.Cof Staff Report i Annual Treasury Policy Review 21 November 2001 Page 2 of 3 Policy No. 4: Bloomberg Trade Tickets would replace manually prepared trade (continued) tickets. This would eliminate potential for copying errors and increase volume of trades that Investment Manager could execute in a single day. Policy No. 7: City Treasurer would have independent authority to dismiss a broker for cause (12 grounds for dismissal cited in this policy). City Treasurer would provide subsequent notification to Finance Committee. Policy No. 12: Complete rewrite of stop payment procedures due to technological advances (stop payments now placed through Internet instead of by modem or by telephone). Policy No. 13: Information Systems Manager would be substituted for City Manager for initiation or verification of wire transfers (short timeframes are involved and the former is more available). Reference to Internet-initiated wires included since this capability will soon be available to City. Telephone wire transfer procedures would be substituted for modem wire transfer procedures during the interim. Policy No. 14: Information Systems Manager would be substituted for City Manager for authorization to initiate LAIF transactions (short timeframes are involved and the former is more available). Information Systems Manager is third-in-line to manage Finance Department if Finance Director and Finance Operations Manager are off-site. Policy No. 15: Complete rewrite of interest allocation procedures in order to provide more detail. Policy No. 16: Cash and investments audit would be done every three years, instead of every year, barring (1) change of Treasury personnel; (2) significant prior audit findings; or (3) significant changes in policies and procedures on internal controls. If any of these events happens, then City Treasurer or Finance Committee has discretion to increase frequency of audits. N:Vjeft)4WoN 20001MEMOR NDAIFINANCE COMMIME12002 P&P MANUALM Staff Report i Annuvl Treasury Policy rteview 21 November 2001 Page 3 of 3 Submitted By: Thomas W. Jeffrey, irVQOenvanager Approval: Paul S. Gibson, City Treasurer H:Vjeff M)4Wo d 2000WEMOR4NOA MNANCE COMMITTEE12001 P&P MANUAL.dof CITY OF PALM DESERT TREASURY POLICIES AND PROCEDURES 2002 ! � , City Council James C. Ferguson Mayor Richard S. Kelly Mayor Pro Tempore Robert A. Spiegel Council Member Buford A. Crites Council Member Jean M. Benson Council Member City Administration Carlos L. Ortega City Manager CITY OF PALM DESERT , Treasury Policies and Procedures 2002 FOREWORD The "Statement of Investment Policy" for the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") directs the City Treasurer to develop and to maintain an internal control structure that is designed to minimize the risk of the theft, loss, or misuse of public monies. The "Statement of Investment Policy" also directs the City Treasurer to retain an external auditor in order to determine whether or not the City's investment program has been conducted in compliance with internal policies and procedures. This Treasury Policies and Procedures Manual ("Manual") is intended to respond to the aforementioned requirements, and to provide the framework for City treasury operations. This Manual shall also provide documentation that the external auditor can use to review treasury staff compliance with internal controls. This Manual shall be updated by the City Treasurer on an ongoing basis, as changes are made within the City Finance Department. However, by 30 Th 1 City Treasurer shall review this Manual annually in order to ensure that it is accurate and current. PREPARED BY THE CITY FINANCE DEPARTMENT Thomas W. Jeffrey, J.D., M.B.A. Investment Manager REVIEWED AND APPROVED BY Paul S. Gibson, C.C.M.T. City Treasurer Fes\ CITY OF PALM DESERT Treasury Policies and Procedures 2002 TABLE OF CONTENTS Subiect Page I. TREASURY POLICY DEVELOPMENT if. STATEMENT OF INVESTMENT POLICY III. INTERNAL CONTROLS IV. TRADING V. COMPETITIVE OFFERINGS VI. CUSTODY AND SAFEKEEPING VII. DISMISSAL OF BROKERS VIII. REQUESTS FOR PROPOSALS IX. BANK ACCOUNTS X. SECURITY AGREEMENTS XI. CHECKS XII. STOP PAYMENTS XIII. WIRE TRANSFERS XIV. ACCESS TO TREASURY SYSTEMS XV. INTEREST ALLOCATION XVI. ANNUAL AUDIT RESPOU IBII ITIES CASH AND INVESTMENTS AUDIT XI����RY i CITY OF PALM DESERT , Treasury Policies and Procedures 2002 POLICY NO.: 1 SUBJECT: "TREASURY POLICY DEVELOPMENT" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on treasury policy development. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that treasury operations shall be governed by policies and procedures that have been approved by the Palm Desert City Council ("City Council"), the Palm Desert Redevelopment Agency Board ("Redevelopment Agency Board of Directors"), and the Palm Desert Housing Authority Commission ("Housing Authority Commission"), the Palm Desert Financing Authority Commission ("Financing Authority Commission"), and the Palm Desert Recreational Facilities Corporation Board of Directors ("Recreational Facilities Corporation Board of Directors"). Policy may be defined as a written statement of administrative principle that is developed in very broad terms. It is meant to guide employee behavior and constitutes the standard against which the propriety of such behavior is measured. Policy must be followed; deviation from it will not be allowed. Policy should always precede procedure so that employees will understand what procedure is meant to accomplish. Procedure may be defined as a written series of steps that are the accepted way to implement policy. Procedure should be written in the active tense and should answer "who, what, when, where, and how." A procedure for wire transfers, for example, would describe how the policy would be implemented, as opposed to stating the policy itself. 1 Policy No. 1: "Treasury Policy Development" i Revision No.: Date: 1.0 Policy Drafting Requests Treasury policies and procedures, or any amendments thereto, may be drafted at the request of: 1.1 A majority of City Council, Redevelopment Agency Board, Housing Authority Commission, Financing Authority Commission, or Recreational Facilities Corporation Board members at a duly convened meeting of their respective bodies; 1.2 A majority of Finance Committee members at a duly convened Finance Committee meeting; 1.3 The City Attorney; 1.4 The City Treasurer; or 1.5 The Investment Manager. 2.0 Changes in Text The text of an approved treasury policy and procedure cannot be changed unless the City Council, the Redevelopment Agency Board, the Housing Authority Commission, the Financing Authority Commission, and the Recreational Facilities Corporation Board have approved a subsequent amendment. Treasury policies and procedures shall have full force and effect as of their date of adoption. 3.0 Annual Review The City Treasurer shall review all treasury policies and procedures annually, prior to 30 Novernbef of eseh ealendef yeaf, in order to ensure that they are still current and accurate. The City Treasurer shall notify the City Council when the annual review has been completed. Policy No. 1: "Treaawry Policy Development' , Revision No.: Date: PROCEDURE 1. Drafting. The Investment Manager shall have the primary responsibility for drafting all treasury policies and procedures, and any amendments thereto. 2. City Treasurer Review. The Investment Manager shall first present a draft of the proposed treasury policy and procedure to the City Treasurer for review. The Investment Manager shall revise the draft in accordance with the City Treasurer's recommendations, if any. 3. Finance Committee Review. The Investment Manager shall next present the proposed treasury policy and procedure to the Finance Committee for review and approval. The Investment Manager shall revise the draft in accordance with the Finance Committee's recommendations, if any. The City Attorney must have reviewed the policy draft before it can proceed to the next step in the review process. 4. City Council Review. The City Treasurer shall next present the proposed treasury policy and procedure to the City Council for review and approval. The policy draft shall be deemed to be approved if a majority of the City Council votes to adopt it at a duly convened City Council meeting. Otherwise, the Investment Manager shall revise the policy draft in accordance with the City Council's recommendations, and the City Treasurer shall then resubmit it to the City Council for approval. 5. Commission and Board Review. The City Treasurer shall next present the proposed treasury policy and procedure to the Redevelopment Agency Board of Directors, the Housing Authority Commission, the Financing Authority Commission, and the Recreational Facilities Corporation Board of Directors for review and approval. 6. Publication. The Investment Manager shall be responsible for publishing, numbering, reproducing, disseminating, and filing all approved treasury policies and procedures. All documents relating to an approved treasury policy and procedure, including revised drafts, shall be filed in chronological order in a Presstex classification folder. All policy and procedure folders shall be stored in a file cabinet in the Investment Manager's office. 3 � j CITY uF PALM DESERT i Treasury Policies and Procedures 2002 POLICY NO.: 3 SUBJECT: "INTERNAL CONTROLS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy on internal controls. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing 9 Y. 9 Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that the City Treasurer shall establish and maintain an internal control structure that minimizes the risk of the theft, loss, or misuse of public monies. This internal control structure shall be embodied in treasury policies and procedures. The internal control structure shall be designed to provide a "reasonable assurance" that the aforementioned objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits that are likely to be derived; and (2) the valuation of costs and benefits requires management to make judgements and estimates. The internal control structure for the City treasury function shall be premised upon the following three elements: 1.0 Segregation of Duties If two parts of a transaction are done by different employees, then embezzlement, fraud, or concealment of errors can only occur through collusion. Consequently, the following four duties shall be segregated from one another in order to create a system of dual controls: 1.1 Approving the purchase and sale of securities. 1.2 Buying and selling securities, including the execution of wire transfers. 20 Policy No. 3: "Interval Controls" Revision No.: Date: 1.3 Having custody of cash and investments. 1.4 Making general ledger entries, and receiving and reconciling monthly bank statements. 2.0 Procedure Controls Internal controls in the form of procedures are intended to ensure that: 2.1 The City only acquires investments that are permitted by law. 2.2 The City investment program is integrated with City cash management and expenditure requirements. 2.3 The level and nature of approvals that are required to purchase or sell investments are specified. 2.4 The treasury staff seeks competitive quotes for investment purchases. 2.5 Access to bank accounts, wire transfers, and cash and investments are limited only to specified public employees. Outside investment advisors and broker-dealers shall not be authorized to initiate wire transfers on the City's behalf. 2.6 Public employees who are in treasury operations are insured or bonded. 2.7 Yields on investments are maximized, after safety and liquidity have been considered. 3.0 Custody Controls These internal controls, which relate to the possession and transfer of securities that the City has bought or sold, are intended to ensure that: 3.1 All of the City's securities purchases are done on a receipt- versus-payment ( RVP ) basis. 3.2. All of the City's securities sales are done on a delivery-versus- payment ("DVP") basis. 21 Policy No. 3: "lnte,,,al Controls" Revision No.: Date: 3.3 All of the securities that the City owns are registered in its name. 3.4 Two signatures (passwords) are required for log-in access to City electronic banking and investment systems. 3.5 Two signatures are required for a release from safekeeping or for access to City safe deposit boxes. 22 CITY U PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 4 SUBJECT: "TRADING" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on securities trading. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that sufficient internal controls shall be integrated into securities trading on behalf of the City so that the risk of costly trade errors or of theft, loss, or misuse of public monies, shall be minimized. The City shall hold competitive offerings whenever it must invest the gross proceeds of tax-exempt bonds. This is due to the severe financial penalties that could result if the City were perceived to be involved in "yield burning". In all other cases, the City may purchase securities on a non-competitive basis. The key difference between a competitive offering and a non-competitive offering, is the role of price. In a competitive offering, acceptance of an offer must be based solely upon price. In a non-competitive offering, acceptance of an offer may be based upon both price and a desire to "spread the business". 1.0 Authority to Trade The only pab4e City employees who shall be authorized to buy and sell securities on behalf of the City shall be: 1.1 The City Treasurer. 1.2 The Investment Manager. 23 Policy No. 4: "Traoing" Revision No.: 1 Date: The City Treasurer and the Investment Manager shall engage in collective decisionmaking and consultation on all trades in order to make the best possible investment decisions. Each trade shall be done in conformance with all applicable policies and procedures, and shall be defensible in its own right. 2.0 Location of Trading All securities tradingon behalf of the City shall be done in the Y Investment Manager's office. It shall serve as a dedicated trading site since all of the information resources (e.g., banking and investment computer systems, trade files, public finance manuals) that are needed to support trading operations are located there. Trading shall not be done from off-site locations unless a disaster or circumstance has rendered the Investment Manager's office unusable or a trading advantage can be gained, in which case the City Treasurer must expressly authorize trading from.an off-site location in advance. 3.0 Development of Trading Strategies The City Treasurer and the Investment Manager shall consider the following five factors while developing the City's trading strategies: 3.1 The Daily Cash Sheet that provides cash balance and maturity information. 3.2 The "Statement of Investment Policy" that identifies approved transactions, instruments, issuers, maturity limits, and concentration limits. 3.3 The Five-Year Cash Expenditure Forecast. 3.4 The present City portfolio structure. 3.5 The interest rate outlook. These factors should be evaluated within the overall context of passive portfolio management, although selective active management may occasionally be required. 24 Po/icy No. 4: "Tracing" , Revision No.: 1 Date: 4.0 Segregation of Duties The cornerstone of the internal control structure for trading shall be a separation of the transaction and the recordkeeping functions. The duties of executing trades; approving trades; and confirming and recording trades, shall not be concentrated in a single employee. A system of checks and balances shall be established by separating the functions of treasury from those of accounting. To that end, the following five public employees shall have separate and distinct duties with respect to securities trading: 4.1 Investment Manager. The Investment Manager shall be responsible for: 4.1.1 Soliciting, negotiating, executing, and documenting trades. 4.1.2 Receiving Trade Tickgts. 4.1.3 Verifying Trade Terms 4.1.4 Interfacing with,the City custodian and with the City trustee on trades 4.1.5 Entering trades into the SymPro investment portfolio program. 4.1.6 Storing trade documentation. 4.2 City Treasurer. The City Treasurer shall be responsible for: 4.2.1 Reviewing and approving trades. 4.3 she" be Fespensible fer! 4.3.2 Verifying trade teffnS. 25 Policy No. 4: "Trawrig" Revision No.: 1 Date: on tfades. 4.4 Accountant. The Accountant shall be responsible for: 4.4.1 Entering trades into the accounting system. 4.5 Accounting Technician. The Accounting Technician shall be responsible for: 4.5.1 Receiving, filing; and verifying custodial safekeeping statements. 4.5.2 Reconciling monthly bank, trustee, and custodial statements with cash-based SymPro investment portfolio reports. If one of the above employees is not available, then Finance Department management may substitute another employee so long as it does not violate policy restrictions on trading authority. 5.0 Trade Documentation All executed trades{ shall be supported by the following four documents: 5� -Trade Sheep The Gity Trade Sheet is a pre .....bred forty.. that recefds trade terms and that serves as an internal eentrel (the Gity Tfeasufef must sign the Trade Sheet after reviewing approving the tfansaetien). The lnvestfn�ent Manager she" be 5.1 Bloomberg Trade Ticket. The Bloomberg Trade Ticket is a confirmation of trade execution and trade terms. The broker that is buying or selling a security generates the related Trade Ticket from Bloomberg Services. The City's custodian or trustee cannot settle a security transaction on behalf of the City until it has received a related Bloomberg Trade Ticket which has been signed by either the City Treasurer or the Investment Finance''Operations Manager. 26 Policy No. 4: "Traouig" Revision No.: 1 Date: 5.2 Bloomberg Security Description. The Bloomberg Security Description is generated from Bloomberg Services, and describes the features and history of a security. This is necessary for data input in the SymPro investment portfolio program. 5.3 Broker Trade Confirmation. The Broker Trade Confirmation is a formal statement from the broker dealer confirming both the trade and the terms of the trade. The City requires this statement for internal control purposes. 6.0 Trade and Settlement Dates "Trade date" is the date of trade execution. "Settlement date" is the date of a receipt-versus-payment ("RVP") or delivery-versus-payment ("DVP") transaction (the simultaneous exchange of money for securities through an electronic funds transfer system). Settlement date is usually represented in one of five ways: 6.1 "Cash" (trade day) 6.2 Regular- (trade day + one business day) 6.3 "Skip" (trade day + two business days) 6.4 "T + 3" (trading day + three business days). 6.5 Delayed (beyond T + 3) "T + 3" is used primarily for corporate securities (commercial paper and medium-term notes) since they are electronically transferred through the DTC. United States Treasury and Government Agency securities are electronically transferred through the Federal Reserve Communications System ("Fedwire"). Corporate securities are electronically transferred through the Depository Trust Company System ("DTC"). 27 Policy No. 4: "Traoing" Revision No.: 1 Date: 7.0 Trading Losses It is the policy of the City to avoid realizing trading losses on securities transactions. Should it become necessary to realize a trading loss, then the City Treasurer must specifically approve the loss, in writing, prior to trade execution If the City Treasurer is not available, then the Finance Operations Manager shall perform that ask. cheen of eenifnand that is , "Statement of Investment Peliey", shall be followed. PROCEDURE 1. Solicitation of Offers. The procedure for competitive and non-competitive offerings shall be the same. The Investment Manager shall send a solicitation that includes a preformatted Offering Sheet, to the City's approved breltef dealers brokers in advance of the trade date. The broker dealers broker shall use this Offering Sheet to submit their bids to the Investment Manager by a certain time on the trade date. he ing. a. Avoidance of Collusion. In a competitive offering, the broker shall also complete and return to the Investment Manager-a certification that collusion has not occurred, in order for the broker to be eligible to bid. Regardless of whether the offering is competitive or non-competitive, the Investment Manager shall not disclose to any broker: (1) the identity of other brokers or brokerage firms that are involved in the offering, or (2) any of the other offers. The Investment Manager shall address all solicitations to a single individual at a brokerage firm; not to, all of the brokers involved in the offering. 2. Verification of Available Cash. In the case of securities purchases, the Investment Manager shall ensure that sufficient public monies are in the City's bank account to pay for the securities. If there will be a significant time lag between trade and settlement dates, then the Investment Manager shall ensure that the public monies which are intended for payment, are invested in the highest-yielding instrument that is authorized under Treasury Policy No. 2, "Statement of Investment Policy". 28 Policy No. 4: "Traoin g" Revision No.: 1 Date: 3. Submission of Offers. After the Investment Manager has received the brokers's Offering Sheets on the trade date, he shall compare them, based on price, yield-to-maturity, lot size, and portfolio objectives. If information on an Offering Sheet is unclear, then the Investment Manager shall contact the submitting broker, and request clarification. " - `- to submit a. Details of Offer. All offer prices should be in decimals in order to facilitate comparison. In the case of a competitive offering, the broker's commission for each security offering must disclosed on the Offering Sheet, in dollars, in order to assure compliance with IRS guidelines on yield-burning, if a broker fails to disclose his commission, then he shall be automatically disqualified from the offering. 4. Review of Offers. The Investment Manager shall review the offers, and shall evaluate their reasonableness against the market prices reported by Bloomberg Services. He shall then show all of the offers to the City Treasurer, and shall recommend the best ones for acceptance. The City Treasurer shall review, and approve the offers that he believes to be in the best interests of the City. 5. Acceptance of Offers. After the City Treasurer has approved the offers, the Investment Manager shall promptly contact the successful broker's), by telephone, and reconfirm the trade terms, in case market prices have significantly increased since the time of the initial offer. In order to minimize such risk, the Investment Manager should strive to accept all offers within one hour of submission. 6. Renegotiation of Offers. If market prices have significantly increased between the times of initial offer and trade execution, then the Investment Manager shall attempt to renegotiate a compromise price with the broker. If a compromise cannot be agreed upon, then the Investment Manager, in the case of a competitive offering, must reject the offer, and accept the next lowest cost offer from another broker. In the case of a non- competitive offering, the Investment Manager may either (a) reject the offer, and accept the next lowest offer from another broker (even if this means denying the first broker any business); or (b) accept the higher price. 29 Policy No. 4: "Trawag" Revision No.: f Date: 7. Completion of Trade Sheet. Immediately after closing a trade, the Investment Manager shall eempiete and present a Sheet Bloomberg Trade Ticket #of the City Treasurer's approval signature. The Investfnent Manager,shall then give a earben eapy of the emeeuted received an exeeuted Trade Sheet, he she" awak the reeeipt of a faesifflile 9. VerMeatlen of Trade Terms. After the FineneeARRFA4::A1qq Mmager has received both BleembeFg doeuments, heT el vestment Manager shall the T-Fede Sheet to these en compare the terms on the Trade Ticket with thoseron the Offenng"Sheet in order to ensure uniformity. If there is a discrepancy, then the Finenee ()peretiens Manager shell inform the Investment Manager who shall resolve the difference(s) with the affected broker. 10. Custodial Interface. If trade terms are identical, then the Finenee Opefetiens Investment Manager shall fax to the City custodian or trustee, a signed Bloomberg Trade Ticket jhLhA- j1 e,_r iy.nstrucfions and e &ity T-Fade 6 for each security purchased. The Trade Ticket must be signed by either the City Treasurer or the Investment Manager prior to facsimile transmission. The Finanee Operations r,0vestrren Manager shall then telephone the City trustee or custodian in order to confirm receipt of these documents, as well as payment terms. The Finenee Operations Manager shall then give the Investment Managef the Tfede Sheet and all 11. Treasury Accounting. The Investment Manager shall create a new investment file in SymPro, and shall enter the data from the Trade Sheet. On the next business day after settlement, the Investment Manager shall print the TEAM Balance Report that shows the cash being wired out for settlement. The Investment Manager shall then give the Accountant: (a) a printout of the SymPro file on the new security; and (b) a copy of the related Balance Report. The Accountant shall enter this data into the City accounting system. 30 Policy No. 4: "Trao,rig" Revision No.: 1 Date: 12. Retention of Trade Documents. The Investment Manager shall retain and file the following trade documents: a. Solicitation (competitive offering only). b. All Offering Sheets (competitive offering only). c. Certificate of Absence of Collusion (competitive offering only). d. Certificate of Third-Party Administrative Costs (competitive offering only). e. Certificate of Competitive Offering (competitive offering only). f. Most efficient portfolio of SLGSs (competitive offering only). h. Broker Trade Confirmation. i. Bloomberg Trade Ticket. j. Bloomberg Security Description. All trade documents that are connected with to a competitive offering, shall be retained for at least three years after the last outstanding bond is redeemed, pursuant to Internal Revenue Service regulations. 13. Monthly Reconciliation. The Accounting Technician shall reconcile monthly bank, custodial, and trustee statements with cash-based SymPro investment portfolio reports, at month-end. 31 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 5 SUBJECT: "COMPETITIVE OFFERINGS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on competitive offerings. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that the gross proceeds of tax-exempt bonds shall be invested in fixed-income securities which are obtained through competitive offerings. Such an approach is needed in order to ensure that the City buys securities that are priced at market, thereby avoiding any appearance of "yield burning". *" 1.0 Yield Burning Yield burning occurs when the price of securities that are purchased for yield-restricted defeasance escrows is artificially inflated in order to lower the investment yield below the bond yield, thereby avoiding impermissible arbitrage. If this happens, then the Internal Revenue Service ("IRS") may: (1) compel the municipal issuer to reimburse the United States Treasury for excessive underwriter profits; or (2) eliminate the municipal issuer's tax exemption for the defeasance bonds. 2.0 Safe Harbor Under current IRS regulations, municipal issuers are guaranteed a "Safe harbor" from allegations of yield burning if certain requirements are met. The IRS will assume that the purchase price of securities for yield- restricted defeasance escrows approximates their fair market value on the purchase date if: 32 � 1 Policy No. 5. "Con,rietitive Offerings' , Revision No.: 1 Date: 2.1 Reasonably Competitive Providers. The municipal issuer solicits, in good faith and in writing, offers from at least three reasonably competitive providers" that have no material financial interest in the bond issuance, and receives at least one offer from such a provider. IRS regulations define a reasonably competitive provider as a provider that has an established industry reputation as a competitive provider of the type of investment that is being purchased. 2.2 No Material Finance Interest. Bond underwriters, financial advisors, and their related providers are excluded from the competitive offering since they are deemed to have a material financial interest in the bond issuance. 2.3 Certification of Absence of Collusion. Each provider that submits an offer includes an executed certification stating that by submitting the offer, the provider is representing that: (1) it did not consult with any other providers about their offer; and (2) the offer is not being submitted solely as a courtesy to the issuer or to any third party in order to satisfy the IRS requirement of at least one offer from a reasonably competitive provider. 2.4 Commercially Reasonable Terms. The terms of the competitive offering solicitation are "commercially reasonable". A term should be included in the competitive offering for a legitimate business purpose, other than to lower the yield or increase the cost of the offer. 2.5 No Last Look. No provider is permitted to review other offers before making his offer, in order to ensure that all providers have an equal opportunity to bid. 2.6 Comparison to SLGSs. If the investment is a guaranteed investment contract, then the municipal issuer must accept the offer with the highest yield (excluding broker's fees). For all other investments, the issuer must accept the lowest cost offer (including broker's fees). The lowest cost offer should not exceed the cost of the most efficient portfolio of State and Local Government Series ("SLGS") securities with the same maturity that are available on the day that the offers are submitted: 33 Policy No. 5. "Cor,,I etitive Offerings" Revision No.: 1 Date: provided, however, that such SLGSs are available for purchase on that day. 2.7 Certification of Third-Party Administrative Costs. The fee that a municipal issuer pays to a provider (broker) is a qualified administrative cost only if the fee is comparable to one that would be charged for a reasonably comparable investment that is acquired with money other than tax-exempt bond proceeds, and I the fee is reasonable. A broker's fee will meet the reasonableness and comparability tests if it does not exceed the lesser of $10,000 or 0.1 percent of the initial principal amount of investments that are purchased for the defeasible escrow. In order to comply with this requirement, a#providers shall be required to execute a certification that the fee is a qualified administrative cost. if they fail to provide this information, then they shall be automatically disqualified from the competitive offering. 2.8 Retention of Records. The municipal issuer retains, until three years after the last outstanding bond is redeemed: (1) all bond documents; (2) purchase confirmations; (3) records of the amount actually paid by the issuer; (4) date- and time-stamped offers that were received; (5) competitive offering documents; and (6) working papers on the cost of the most efficient portfolio of SLGSs (if a guaranteed investment contract is not involved). 2.9 Certification of Competitive Offering. The municipal issuer certifies that: (1) offers were solicited from at least three uninterested, reasonably competitive providers; (2) all offerors had an equal opportunity to bid; (3) an offer was received from at least one reasonably competitive provider; and (4) if an agent conducted the offering, then that agent did not offer to provide the investments. 3.0 Exceptions There is a major exception to restricted yields in defeasible escrows. A municipal issuer is permitted a three-year temporary period during which it may invest bond proceeds at a yield higher than the bond yield: provided, however, that on the issue date, the issuer had a reasonable expectation that 85 percent of the bond's "net sale proceeds" would be 34 Policy No. 5: "Competitive Offerings' Revision No.: 1 Date: spent within three years. Bond proceeds that are deposited into a special escrow fund could be so invested. There are numerous other exceptions that are set forth in the Internal Revenue Code arbitrage regulations that are not discussed in this policy. PROCEDURE 1. Competitive Offering. The Investment Manager shall solicit competitive offerings from at least three of the City's authorized broker-dealers, in advance of the trade date. This solicitation shall consist of the following: a. A cover memorandum individually addressed to each broker, explaining the details of the offering, and the delivery instructions. b. A Broker Registration Form. c. A Certificate of the Absence of Collusion. d. A Certificate of Third-Party Administrative Costs. e. A preformatted Offering Sheet with which each broker can prepare and submit his offer. Under no circumstances shall the cover memorandum include the names of the other brokers or brokerage firms that will be involved in the competitive offering. Likewise, under no circumstances shall the Investment Manager disclose to a broker the details of offers that the City has received from other competing brokers. 2. Calculation of Lowest Cost Portfolio. On the trade date, the Investment Manager shall determine the lowest cost of the most efficient portfolio of SLGSs with the same maturity, if such securities are available. The cost of the winning offers should not exceed the cost of this portfolio. 3. Deadline for Offers. Each broker shall submit his offer by a specified time on the trade date. In order to qualify for consideration, the offer must consist of: a. A completed Broker Registration Form. b. An executed Certificate of the Absence of Collusion. c. An executed Certificate of Third-Party Administrative Costs. d. A completed Offering Sheet. 35 Policy No. 5. "Competitive Offerings" Revision No.: 1 Date: Any broker that fails to include these three documents in his offer, shall be automatically disqualified from the competitive offering. 4. Evaluation of Offers. The Investment Manager shall review all offers and shall recommend the most favorable ones, based strictly upon the lowest cost, to the City Treasurer,for review and 'a ' roval. If the City Treasurer is unavailable, then the s w ,� - �� d feHewed Finarice Operations Manager-h I�Rerforr�r haf task 5. Acceptance of Offers. After receiving the City Treasurer's approval, the Investment Manager shall immediately notify the successful offeror(s), by telephone, that the City has accepted its offer. At that time, trade terms should be reconfirmed, in the event that market prices have increased since the time of the initial offer. In order to manage such risk, the Investment Manager should strive to accept all offers within one hour of submission. 6. Renegotiation of Offers. If there has been a significant increase in market prices during the interim, then the Investment Manager shall renegotiate with the successful offeror for the lowest possible cost for the City. If, however, the cost of the investment has risen above other offers, then the Investment Manager shall accept the next lowest offer from another offeror instead. 7. Remaining Closing Procedures. The Gity Finanee DepartmentInvestment Manager shall follow the remaining procedural closing steps (e.g., faxing the Trade T:eLea and Trade Sheet a signed-Bloomberg Tickkt to the City's custodian or trustee) that are detailed in Treasury Policy No. 4, "Trading". 8. Retention of Records. The Investment Manager shall retain and file, together with all of the bond documents: a. A copy of the guaranteed investment contract (if applicable). b. The purchase confirmations (e.g., Bloomberg Trade Ticket, broker trade confirmation). c. A record of the amount actually paid by the City, including a record of any administrative costs paid by the City, and the certification of the provider as to administrative costs; d. Each offer that is submitted, in terms of the name of the submitting broker; the time and date of the bid; and the bid results. 36 Policy No. 5. "Competitive Offerings" Revision No.: 1 Date: e. The competitive offering solicitation. f. The cost of the most efficient portfolio of SLGSs, if used to benchmark competitive offers. 9. Certificate of Competitive Offering. The City Treasurer shall certify, in writing, on the City's behalf, that: a. Offers were solicited from at least three uninterested, reasonably competitive providers. b. All offerors had equal opportunity to bid. c. An offer was received from at least one reasonably competitive provider. d. If an agent conducted the offering, then that agent did not make an offer to provide the investments. The Investment Manager shall file this certification with the other bond documents. 37 CITY uF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 6 SUBJECT: "CUSTODY AND SAFEKEEPING" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on the custody and safekeeping of securities. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that the City shall retain third-party bank trust companies as clearinghouses for the payment, delivery, receipt, and safekeeping of securities that the City buys or sells. 1.0 `Selection of Custodian and of Trustee A third-party bank trust company shall serve as the City's custodian ("Custodian") for the purpose of settling all of the City's securities transactions that do not involve the investment of the gross proceeds of tax-exempt bonds. A third-party bank trust company shall serve as the City's trustee ("Trustee") for the purpose of settling all of the City's securities transactions that involve the investment of the gross proceeds of tax- exempt bonds. The City shall select both the Custodian and the Trustee through a Request for Proposals ("RFP") process. The City shall initiate an RFP process every five years, unless there is an immediate need to fill a vacancy or to replace a trust company. The City shall subsequently execute separate custody agreements with the selected Custodian and the selected Trustee in order to confirm all legal rights and obligations. 38 Policy No. 6: "Cusiody and Safekeeping" Revision No.: 1 Date: The City shall only use safekeeping or custodial agents that are located within the State of California. 2.0 Qualifications of Custodian and of Trustee The Custodian and the Trustee shall, at a minimum, possess the following qualifications: 2.1 Safekeeping. The ability to clear and safekeep all securities that are authorized by California Government Code Section 53601 . 2.2 Fiduciary Duty. The ability to hold all of the City's investments on a fiduciary basis and to segregate them from the trust company's other assets. 2.3 Bank Charter. Membership in the Federal Reserve System and status as a State of California- or federally-chartered commercial bank, with its accounts insured by the Federal Deposit Insurance Corporation. 3.0 Methods of Delivering Securities All of the City's securities transactions shall be done either on a receipt- versus-payment ("RVP") or on a delivery-versus-payment ("DVP") basis. Both the Custodian and the Trustee shall disburse City monies or deliver City-owned securities to an approved broker-dee(ef only after that broker dealer has delivered to the Custodian or to the Trustee either the securities to be sold or the money to purchase the securities. Both the Custodian and the Trustee shall only process a security transaction after they have received a Bloomberg Trade Ticket from the City which either the City Treasurer or the Finance Operations Manager has signed. The only exceptions to RVP or DVP shall be the purchase or sale of securities that are connected with: (1) local government investment pools; (2) money market mutual funds; or (3) Federal Reserve Banks ("Treasury Direct Program"), since those securities are not deliverable. 39 Policy No. 6: "Custody and Safekeeping" Revision No.: 1 Date: When the City enters into a new custodial relationship, then the securities that the City already owns shall be delivered into safekeeping on a free-delivery basis. The countersignature of either the Treasurer or the Finance Operations Manager shall be required for the free delivery of securities. Separate custodial accounts shall be maintained for the City of Palm Desert and for the Palm Desert Redevelopment Agency. 4.0 Credit Risk A#of the securities that the City owns shall be registered in the City's name. The ownership of the securities is thus safeguarded by limiting their negotiability. Governmental Accounting Standards Board Statement No. 3, Paragraph 68 requires that all investments, excluding local government investment pools and mutual funds, be classified into one of three categories of credit risk, and disclosed on a governmental entity's balance sheet. The three categories are as follows: 4.1 "Category 1". This applies to investments that are: (1) insured by the Securities Investors Protection Corporation ("SIPC"); (2) physically held by the City or by the City's agent in the City's name; or (3) acquired through the Federal Reserve book-entry system where the broker dealer is separate from the custodian, and the investments are recorded on the br kef dealer's U&er_'_s book in the City's name. These transactions have the lowest' degree of credit risk; they are preferred by the City. 4.2 "Category 2". This applies to uninsured investments that are acquired through a financial institution's trading department but held for custodial safekeeping by the same financial institution's trust department, and the investments are recorded on the trust department's books in the City's name. These transactions have a higher degree of credit risk. 4.3 "Category 3". This applies to uninsured investments that are: (1) acquired through a financial institution's trading department but held for custodial safekeeping by the same financial institution's safekeeping department; (2) acquired through a 40 Policy No. 6: "Cusiudy and Safekeeping' Revision No.: 1 Date: financial institution's trust department, and held for custodial safekeeping by the same trust department; (3) acquired through, and held for safekeeping by, the same broker dealef; or (4) not recorded on the financial institution's or on the bfekef dealer's broker's books in the City's name. These transactions have the highest degree of credit risk. 5.0 Authorized Access The following peblie City employees shall be authorized to interface with both the Custodian and the Trustee: 5.1 The City Treasurer. 5.2 The Investment Manager. 5.3 The Finance Operations Manager. When an authorized employee ends his employment with the City, then the City shall immediately notify both the Custodian and the Trustee, by telephone, of the expected date and time of the separation, and of the subsequent revocation of the employee's authority to interface with both the Custodian and the Trustee on the City's behalf. The City shall also confirm this, in writing, with both the Custodian and the Trustee within two business days. The written confirmation should be sent to both the Custodian and the Trustee by return receipt, certified mail. No broker-dealer or investment advisor shall have access to City monies, accounts, or investments. Any transfer of monies to or through an outside broker-dealef must have the City Treasurer's prior written approval. If the City Treasurer is not available, them- 14 the Finance Operations Manager, Gity , in , shall authorize the nvestment transaetions, in writing, proof to execution perform that task., 6.0 Liability of City Treasurer The City Treasurer shall not be liable for securities that are delivered to and received by the Custodian and/or the Trustee, until the City Treasurer has withdrawn them from the Custodian and/or the Trustee pursuant to California Government Code Section 53608. 41 Policy No. 6: `Cus,,dy and Safekeeping" Revision No.: 1 Date: 7.0 Monthly Audit The City Treasurer shall receive monthly account statements from both the Custodian and the Trustee that list all of the securities that the Custodian and the Trustee are safekeeping for the City. An Accounting Technician shall complete, prior to each month-end, an audit of the prior month's inventory to ensure that both the Custodian and the Trustee can properly account for all of the City's securities that they should be holding. The Investment Managerccou i'g , leech inn shall retain the monthly account statements in her files. 8.0 Annual Confirmation of Instructions The Treasurer shall send to both the Custodian and the Trustee annually, by 30 June, the following documents: (1) the current City "Statement of Investment Policy"; (2) delivery instructions for security purchases; and (3) a list of public employees who are authorized to initiate investment transactions. The cover letter shall specify that only the City Treasurer shall be authorized to modify the delivery instructions, in writing. 9.0 Annual Review The City Treasurer shall review , all custodial and electronic funds transfer agreements, need , in order to ensure that all controls, security provisions, and responsibilities are being properly followed, and are in compliance with current law. 10.0 Segregation of Broker and Custodial Functions The City shall seek to segregate the provision of brokerage services from the provision of custodial services. If the City, however, uses the same bank or brokerage firm to provide both brokerage and custodial services, then that bank or brokerage firm shall be required to carry liability insurance with the City named as a loss payee, up to the dollar amount of the securities that are held in safekeeping plus an allowance for legal costs in the event of a loss. 42 Policy No. 6: "Cus.. dy and Safekeeping" Revision No.: 1 Date: PROCEDURE 1. Receipt-Versus-Payment ("RVP"). The following steps shall be taken when the City buvs a security: a. The 'nvestment Menagef she" pfevide the broker with a set of delivefy •-'than of to the T-fustee. The broker shall have a current._`s_et of delivery instructions_for the;'City_on'file, m advance'. b. After closing the trade, the Finenee GpefetimtsInvestmert Manager shall fax a copy of both the associated Bloomberg Trade Ticket that has been signed either by the City Treasurer or the Investment Finance,Operations Manager, to the Custodian or to the Trustee, with City delivery instructions affixedmto the,;Ticket, c. The Finance OpefetiensInvestment Manager shall then telephone the Custodian or the Trustee to confirm receipt of -the facsimile transmission and payment terms. d. The Custodian or the Trustee shall then debit the City's cash account in order to deliver cash to the broker in exchange for the underlying security that the broker simultaneously delivers by electronic funds transfer, to the Custodian or to the Trustee. e. An Accounting Technician shall then review the next monthly account statement that the City receives from the Custodian or from the Trustee for confirmation of the transaction, and_shall,retain that statement in his files.' f. The investment Managef she" then retain the menthly aceel statements in his files. 2. Delivery-Versus-Payment ("DVP"). The following steps shall be taken when the City sells a security: 43 i Policy No. 6. "Cue_,dy and Safekeeping" Revision No.: f Date: a. The investment Managef shell provide the Gustedian or the T-fustee with The br ko er shall have a current sets of delivery instructions for'thi City on fie s�dvance b. After closing the trade, the Finance Gpefatimis Kvesfmgnt Manager shall fax a copy of both the associated Bloomberg Trade Ticket which that has been signed either by the City Treasurer or the Investment Ftnan� ce erg1 Manager, to the Custodian or the Trustee. c. The lestmen Manager shall then telephone the Custodian or the Trustee to confirm receipt of the facsimile transmission and payment terms. d. The Custodian or the Trustee shall then debit the City's securities account in order to deliver the underlying security to the broker in exchange for cash that the broker simultaneously delivers by electronic funds transfer, to the Custodian or to the Trustee. e. An Accounting Technician shall then review the next monthly account statement that the City receives from the Custodian or from the Trustee �an for confirmation of the transaction, d shall'fetam tfiat statement in his files. f. statements in his files. 44 CITY PALM DESERT Treasury Policies and Procedures 2062 POLICY NO.: 7 SUBJECT: "DISMISSAL OF BROKERS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on the dismissal of approved broker dealers brokers. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that approved broker dealers brokers are expected to maintain a certain level of financial stability, industry knowledge, and professionalism in their dealings with the City. The City may discontinue its relationship with a broker dealer broker, if it fails to maintain its qualifications to do business with the City or if it fails to execute securities transactions in an acceptable manner. 1.0 Reasons for Dismissal The City Treasurer may dismiss a broker dealer for any one of a variety of reasons, including but not limited to the following: 1.1 Trade Fails. An excessive number of trade fails (a failure to deliver securities on time). 1.2 Trade Errors. An excessive number of trade errors. 1.3 Inflated Pricing. An excessive number of offers that are substantially above market prices. 1.4 Adverse Change. An adverse change in the breker dealer's broker'.s financial condition. ...... . . _ 1.5 Failure to Comply. A repeated failure to comply with solicitation instructions. 45 Policy No. 7: "Dis sal of Brokers" Revision No.: 1 Date: 1.6 Legal Action. Pending legal action by the City against the broker des'ef broker. 1.7 Gift Ban Violation. A violation of the gift ban in the City's Statement of Investment Policy. 1.8 Inappropriate Investments. A consistent inability to offer appropriate investments to the City. 1.9 Failure to Participate. A repeated failure to participate in competitive offerings. 1.10 Failure to Submit Documents. A failure to submit required documents for annual requalification. 1.11 Collusion on Pricing. Collusion on pricing with other brokers during competitive offerings. 1.12 Yield Burning. The inflation of bond prices in order to lower yields ("yield burning"). PROCEDURE 1. Disciplinary Documentation. The Investment Manager shall be responsible for maintaining written documentation on an approved broker-deeief's brokers failure to perform at an acceptable level,,&omply,wit�i`City policyi or to maintain its qualifications. g� 2. Letter of Dismissal If there are sufficient�ro ry s to Bliss the broker dealer then the Investment Manager sh end such action to the Crt Treasurer. ."lf the Cit ' j, re r con a n ttie Investment Mana9er. shall prepare.a letter for the City Treasurer, ; t�urathat notifies the brokei-de - of the dismissal, and of t, e t as_ s . or,the dismissal This letter-_shall be_promptly sent to.;'the Broker' 46 Policy No. 7: "Disi. ?sal of Brokers" Revision No.: 1 Date: 3. Finance Committee Review Notification. The City Treasurer shall present notify the Finance Committee, at its next regularly scheduled meeting, of the dismissal and shall provide a copy of the disissal letter to each committee memb m er. 3. Treasurer's reeemmendatien to dismiss the bfeltef deeler, then the Gity signatuice that notifies the breker dealer of the dismissal, and of 5. Request for Information. T � If_the City Treasurer deems;'1_tAecessary to fill a broker YaCanZy w thenh e May send a Request for Information ("RFI") to each broker dealer that would like to replace the dismissed broker and provide financial services to the City. The Finance Committee and the City Council shall review the completed RFIs and select a replacement broker. 6 ___t of investment Poliey Updating Citv'A6arove'il List. Onee#he L11 L.. .,proved List that is peft Of in the Gity Statement ef investmenVIP-lie- be amended te the ehange The Approved List that is part of the City Statement of Investment Policy shall be amerided annually, lf,needed,_m ordej_ update the broker fist. 47 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 8 SUBJECT: "REQUESTS FOR PROPOSALS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on Requests for Proposals ("RFP"). It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that the City Treasurer shall periodically issue RFPs for banking, custodial, and trustee services to any firms that wish to provide financial services to the City. The City shall issue such RFPs every five years unless there is an immediate need to fill a vacancy or to replace an existing financial services provider. The RFP process should normally begin in January. The Investment Manager shall be responsible for the development of these RFPs. Firms that wish to bid for the City's banking, custodial, and trustee business, may bid for that business in its entirety, or as separate product lines. PROCEDURE 1. Proposal Process. The Investment Manager shall maintain an active file on all prospects that wish to bid for the City's banking, trustee, and/or custodial service contracts. In January of every fifth year, the Investment Manager shall begin the RFP process. It should consist of the following steps: a. Distribution of RFP b. Pre-Proposal Conference c. Proposal Submission d. Proposal Review 48 Policy No. 8: `Requests for Proposals' Revision No.: 1 Date: e. Interview with Top Bidders f. Proposals Accepted by City Council g. Notification to Bidders h. Implementation 2. Technical Evaluation. The Investment Manager shall be responsible for doing a comparative technical evaluation of all RFPs that the City receives. 3. Finance Committee Review. The Investment Manager shall present the results of his technical evaluation, along with recommendations, to the Finance Committee for review and approval. 4. City Council Review. The City Treasurer shall present the Finance Committee's recommendations to the City Council for review and approval. �� le ff.. 5. �datm�T i 4 C�tv baroved Ust I# he City. ...i, ra. +'-vtx � �'�ta-.. � w.-` : Z_n$tet s __ ,q Council approves the_retentk9k.of,,� new banker cu"s odian, or trustee,,then T-the Approved List that is part ef in the City Statement of Investment Policy shall subsequently be amended arjualn orde to reflect any such changes. 49 I CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 9 SUBJECT: BANK ACCOUNTS REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on bank accounts. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") to establish bank accounts for the deposit and disbursement of public monies, and to maintain a complete set of bank contracts, including signature cards, for purposes of control, accountability, limitation, and authorization. The City shall establish as few bank accounts as possible in order to minimize banking costs. All monthly bank statements shall be mailed directly to and processed by the City accounting function. Two signatures shall be required for each bank account. 1.0 Authorized Signers Only the City Treasurer, or in his absence, the Finance Operations Manager, shall be authorized to sign as the "Signer of Contract' on bank documents. Certain City Council members, public employees, and employees of private management companies that contract with the City, shall be authorized as signers on various City bank accounts. The current account signers are as follows: 1.1 City Council 1.1.1 The Mayor. 1.1.2 The Mayor Pro-Tempore. 50 Po/icy No. 9: "Bank Accounts" Revision No.: 1 Date: 1.2 Publie City Employees 1.2.1 The City Treasurer. 1.2.2 The Finance Operations Manager. 1.3 Kemaer Sports Management Inc 1.3.1 W. Gregg kingwst Jo ey l uo ng 1.3.2 d-Rodney Leung Gary Goods I 1.3.3 Mark Hoesing 1.4 RPM Company 1.4.1 David W. Fisher 1.4.2 Barton R. Robertson 1.4.3 Donnie Garibaldi 1.4.4 Robert Pfeil 2.0 Annual Review The City Treasurer shall , rere ew all bank contracts and signature cards, as ne'�ede�d. PROCEDURE 1. Opening A Bank Account. The City Treasurer shall determine whether or not a new City bank account is required, and who shall be authorized as an account signer. If a new City account is to be opened, then: a. The Investment Manager shall request signature cards from the bank; prepare them; and send them to the authorized signers for completion. 51 Policy No. 9: `Banx-Accounts' Revision No.: 1 Date: b. After the authorized signers have completed the signature cards, they shall return them to the City Treasurer for his "Signer of Contract" authorization. c. The Investment Manager shall then return the original signature cards to the bank, along with the account contract(s). d. The Investment Manager shall retain and file a photocopy of each account contract and each signature card. 2. Adding Or Deleting A Signer. When an authorized signer is hired, terminated, or transferred, then the Investment Manager, or in his absence, the City Treasurer, shall immediately review all bank signature cards, account contracts, and Funds Transfer Agreements to determine if they require modification. If a modification is necessary, then the Investment Manager or, in his absence, the City Treasurer, shall do the following: a. Prepare a letter instructing the bank to add or delete a signer. This letter shall be signed by the City Treasurer and counter-signed by the affected signer, whenever possible. (1) In the case of a terminating employee, the letter shall be sent to the bank by facsimile machine on the same date that notice is received of the employee's forthcoming termination. The original letter shall also be sent to the bank in the mail. (2) In the case of a new employee, the Investment Manager shall request a new bank signature card or an addendum card from the bank; obtain the necessary signatures; and return the card to the bank. b. In all cases, the Investment Manager shall retain and file a photocopy of the bank documentation. 3. Closing A Bank Account. Only the City Treasurer, or in his absence, the Finance Operations Manager, shall be authorized to close a City bank account. a. The Investment Manager shall draft a letter to the bank for signature by the City Treasurer, or in his absence, by the Finance Operations Manager, approving the closure of the account on an effective date. 52 Policy No. 9: "BanK-Accounts" Revision No.: 1 Date: b. The Investment Manager shall send the original, signed letter to the bank, and retain and file a photocopy of the letter. c. The City accounting function shall confirm the closing of the bank account, and the termination of all related services, upon receipt of the next monthly bank statement. d. The City accounting function shall then notify the City Treasurer that the bank account has been closed; remove the bank account from the general ledger; and retain a file on the closed bank account for the annual financial audit. 53 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 10 SUBJECT: "SECURITY AGREEMENTS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy on security agreements. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter . !, referred to collectively as the "City") that the City Treasurer shall enter into a security agreement with a financial institution whenever the City maintains deposits in that institution which exceed $100,000. The City Treasurer may waive collateralization for amounts under that limit. 1.0 Credit Risk Governmental Accounting Standards Board Statement No. 3, Paragraph 67 requires that deposits in financial institutions be classified into one of three categories of credit risk, and disclosed in a governmental entity's financial statement notes. The three categories are as follows: 1.1 "Category 1". Deposits that are: (1) insured by the Federal Deposit Insurance Corporation; or (2) collateralized with securities held by the City or by the City's agent, in the City's name. These transactions have the lowest degree of credit risk; they are preferred by the City. 1.2 "Category 2". Deposits that are collateralized with securities held by the pledging financial institution's trust department or agent, in the City's name. These transactions have a higher degree of credit risk. 1.3 "Category 3". Deposits that are not insured or collateralized. These transactions have the highest degree of credit risk. 54 Po/icy No. 10: "SeL rity Agreements" Revision No. 1 Date: 2.0 Agents of Depository Collateral for City deposits in federal- and state-chartered banks and savings and loan associations are held in safekeeping by an authorized "agent of depository" that is recognized by the State of California Department of Banking. Only trust companies and trust departments of commercial banks that are located in California, and the Federal Home Loan Bank in San Francisco, are authorized to act as an agent of depository. Collateral may also be held in safekeeping with a Federal Reserve Bank if this is authorized in the contract between the City Treasurer and the depository. An agent of depository may hold and pool securities to secure deposits for one or more depositories, but must maintain a separate pool for each depository. Each local governmental agency has an undivided security interest in the pooled securities in the proportion that the amount of its deposits bears to the total amount of deposits that are secured by the pooled securities. 3.0 Perfecting a Security Interest The placement of collateral by a commercial bank or by a savings and loan association with an agent of depository has the effect of perfecting the security interest in the name of the City. Accordingly, all collateral held by California agents of depository shall be considered to be held for, and in the name of, the City. 4.0 Protecting a Perfected Security Interest The City Treasurer shall take all possible action to comply with federal requirements in order to ensure that the City's security interests in collateral pledged to secure deposits, are enforceable against the receiver of a failed financial institution. Under certain circumstances, the Federal Deposit Insurance Corporation ("FDIC") may be able to void a perfected security interest, and leave the City with only the right to share with other creditors in the pro rata distribution of the assets of a failed institution. 55 I Po/icy No. 10: Security Agreements' Revision No.: 1 Date: Federal law provides that a depositor's security agreement, which tends to diminish or defeat the interest of the FDIC in an asset acquired by it as receiver of an insured depository, shall not be valid against the FDIC unless the agreement: 4.1 Is in writing; 4.2 Was executed by the depository institution and any person claiming an adverse interest, contemporaneously with the acquisition of the asset by the depository institution; 4.3 Was approved by the depository's board of directors or loan committee; and 4.4 Has been continuously from the time of its execution, an official record of the depository institution. 56 CITY uF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 11 SUBJECT: . "CHECKS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on checks. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") to use checks as its principal means of disbursement. Checks minimize the amount of cash on hand; require expenditure preauthorization and justification; and are easier to record than credit transactions. Weak or nonexistent internal controls, however, could result in check fraud losses for the City since the Uniform Commercial Code has shifted a greater proportion of such losses to the check issuer. 1.0 Scope The provisions of this policy shall apply to all checks that the City originates or receives. 2.0 Objectives The City's objectives shall be to minimize the risk of: 2.1 Theft by third parties after checks have been ordered or mailed in payment of bills. 2.2 Forgery of check signatures by public officials or employees, or by third parties who have intercepted checks in the mail. 2.3 Embezzlement by public officials or employees through the improper use of checks. 57 Po/icy No. 11: "Ch,As" Revision No.: 1 Date: 2.4 Fraud by public officials or employees through the misrepresentation or omission of a material fact concerning checks. 3.0 Segregation of Duties i The duties of public officials and employees with respect to check custody, preparation, and execution shall be segregated so that embezzlement will not be facilitated by a concentration of responsibilities in one person (e.g., cash handling and financial statement preparation). Individuals, independent of one other, shall therefore discharge the following duties: 3.1 Check Stock Custody. The Assistant Gity Manager City Treasurer shall have exclusive custody of the key to the locked unit in which the check stock is kept. Only the Accounting Technician (accounts payable) and the Accounting Technician (payroll) shall be allowed to use the key. 3.2 Check Preparation. The Accounting Technician (accounts payable) and the Accounting Technician (payroll) shall have exclusive responsibility for preparing all checks. 3.3 Check Sinning. The Mayor or the Mayor Pro-Tempore; and the City Treasurer or the Finance Operations Manager, shall have exclusive responsibility for signing all checks. 3.4 Batches Reviewed and Posted. Either the City Treasurer or the Finance Operations Manager shall review and post all accounting batches. 3.5 Bank Statement Reconciliation. The Accounting Technician (purchasing and bank reconciliation) shall have exclusive responsibility for reconciling the City's bank statements to its general ledger on a monthly basis. 3.6 Mail. The Finance Department Administrative Secretary shall have exclusive responsibility for receiving, opening, and reviewing all incoming mail; and for preparing all outgoing mail. 58 Policy No. 11: "Cht;uks" Revision No.: 1 Date: 3.7 Stop Payments. The Investment Manager shall have exclusive responsibility for placing stop payments on outstanding checks. 3.8 Check Register. The City Treasurer, the City Manager, or the Executive Director of the Palm Desert Redevelopment Agency; and the Mayor or the Mayor Pro-Tempore, shall have exclusive responsibility for approving all check registers. 3.9 Facsimile Signature Stamps. The City Clerk or the Deputy City Clerk shall have exclusive custody of the City's facsimile signature stamps. If any of the above-referenced Finance Department employees are unavailable, then Finance Department management may assign those responsibilities to other Finance Department employees. 4.0 Control Reports An embezzler typically attempts to conceal his crime by increasing or decreasing reported monthly expenditures, or by doing both. The City shall address this risk by requiring that the City Treasurer or the Finance Operations Manager prepare and review the City's monthly statements of financial position; statements of revenues and expenditures; check registers; and bank reconciliations. The City Council shall receive a copy of each check register and each statement of revenues and expenditures, on a monthly basis. 5.0 Procurement The City's check stock shall be pre-numbered, and shall have the following security features: 5.1 Artificial watermarks on both sides of the check that cannot be scanned or photocopied. 5.2 The word VOID will appear on the check if it is scanned or photocopied. 5.3 Chemical-reactive paper that voids the check if an ink eradicator is applied. 59 Policy No. 11: "Chicks' Revision No.: 1 Date: 5.4 Microprinting that prevents details from being matched if the check is scanned or photocopied. 5.5 Warning banners that advise tellers to inspect a check before accepting it, and that may deter criminal experimenting. The City Treasurer or the Finance Operations Manager shall be responsible, upon receipt of new check stock, for its immediate review in order to verify consecutive check numbering, and the accuracy of account information. If either individual is unavailable, then the Finance Department Administrative Secretary shall perform these duties. 6.0 Custody The City Treasurer shall designate a locked unit for the storage of all check stock. The Assistant Gity ManagelF He shall have exclusive custody of the key to that unit, and shall release it only to authorized Accounting Technicians, or to their authorized replacements. The Accounting Technician (accounts payable) and the Accounting Technician (payroll) who prepare the checks shall maintain a log that lists the checks that have been issued. Another Accounting Technician (purchasing and bank reconciliation) shall review the log on a quarterly basis in order to verify that all checks have been properly accounted for. 7.0 Request for Payment The Accounting Technician (accounts payable) shall prepare and submit to the City Treasurer or to the Finance Operations Manager, a transaction report that lists all check payees, prior to requesting the key to the locked unit in which the check stock is kept. The transaction report shall also itemize, describe, and justify all proposed expenditures by check. All check payments shall be supported by purchase orders; sales receipts; time cards; personal action forms; and any other necessary supporting documentation. Only original invoices (no photocopies unless unable to receive original) totaling the amount of the disbursement shall be attached to the request for payment prior to execution. 60 Policy No. 11: "C&cks' Revision No.: 1 Date: All requests for payment, and all attached invoices shall be stamped "PAID" in order to avoid duplicate payments. 8.0 Signature Authority Only the City Treasurer; the finance Operations Manager; the Mayor; and the Mayor Pro-Tempore shall have check-signing authority on the City's behalf. A dual-signature requirement shall be in effect at all times. Blank checks are never to be signed. Only the Mayor and the Mayor Pro-Tempore shall be allowed to use .facsimile signatures. A#checks in excess of $100,000, however, shall require two original signatures. A#other government officials and employees are prohibited from having check-signing authority. 9.0 Mailing Checks should always be mailed directly to the vendor or payee. They shall not be returned to the requesting department, division, or individual, in order to minimize the likelihood that such checks will be altered, and negotiated by someone other than the intended payee. 10.0 Manually-Issued Checks The City periodically must issue manual checks that are subsequently entered into the City's computerized accounting system. In order-to minimize the potential for forgery, all manual checks shall prepared on a typewriter with a single-strike cloth ribbon. The dollar amount of the check shall be imprinted with an embossing machine. 11.0 Positive Pay The City shall use "Positive Pay", or an equivalent program, in order to minimize check losses due to fraud or forgery. Under Positive Pay, the City provides its commercial bank with a daily list of the payees, numbers, dates, and dollar amounts of any checks that the City has issued. The bank responds by providing the City with a daily list of any checks that do not correspond with the City's previously submitted information. The City must then confirm that such checks are eligible for payment before the bank will process them. 61 Po/icy No. 11: "Chicks" Revision No.: 1 Date: 12.0 Cancelled Checks The City shall request that its commercial bank return all of the City's cancelled checks, or a disk with a copy of each check on both sides, on a monthly basis, by mail, so that the City will possess the requisite financial records for its annual financial audit. 13.0 Reconciled Bank Accounts The Accounting Technician (purchasing and bank reconciliation) shall promptly reconcile all bank statements within 30 days of statement mailing. That technician shall immediately report any discrepancy to the City Treasurer or to the Finance Operations Manager, and shall provide both with a supporting reconciliation report. The Finance Operations Manager shall perform a final review of the bank reconciliation and shall initial his or her approval. 14.0 Stale Checks Financial institutions classify checks that are presented for payment as "stale" if they are dated 12 or more months earlier. Even so, the banks cannot guarantee that such checks will not clear. The City accounting staff shall place stop payments on any checks that are over 18 months old, and shall void them in the City's financial records. 15.0 Voided Checks All checks that are spoiled or mutilated or that have been defectively prepared, shall be voided by: 15.1 Stamping or by writing, in ink, the word "VOID" in the check amount field, and in the vendor name/address field; and 15.2 Excising the signature blocks from the check. The check shall also be voided on the City's computerized accounting system. 62 Policy No. 11: "Checks' Revision No.: 1 Date: 16.0 Stop Payments When one of the City's checks is lost in the mail or otherwise cannot be accounted for, then the City shall immediately contact the bank upon which the check is drawn, and place a stop payment on the check for at least one year. The check shall also be voided on the City's computerized accounting system. In order to place a stop payment on a check for one year, the City must renew the stop payment every six months. Even this does not guarantee that that bank will not clear the check, however. The only sure way to stop a check is to close the bank account upon which the check is drawn. 17.0 Destruction of Obsolete Check Stock Obsolete check stock shall always be destroyed, never discarded intact. Check stock shall be deemed to be obsolete when an address change occurs or a bank account is closed. The City Treasurer or the Finance Operations Manager shall, in the presence of another public employee, either burn or shred all obsolete check stock. Alternatively, in the case of used check stock, the City Treasurer may retain a commercial shred company with bonded employees for that purpose. 18.0 Disciplinary Action Public employees who violate the provisions of this policy shall be subject to disciplinary action, up to and including termination of employment. PROCEDURE 1. Cashier's Checks. Checks that are exchanged for cashier's checks shall be made payable to the City's bank with a notation under the name stating, "Cashier Check: (name of recipient/escrow number etc.)". 63 Policy No. 11: "Cht;14s' Revision No.: 1 Date: 2. Petty Cash Checks. Checks that are used to refund petty cash shall be made payable to "(name of petty cash handler/employee)/Petty Cash". It shall be noted on the check stub that the purpose of the transaction will be to "Refund Petty Cash". 3. Inter-Account Transfer. Checks that are used to transfer money between the City's bank accounts shall be made payable to the title and to the account number to which they are being deposited. The inter-account transfer shall be noted on the check stub description. 4. Bank Checks. Checks that are used to pay obligations (principal and interest payments) that are owed to the City's bank, shall be made payable to that bank. The obligation to be met shall be noted on the check stub. 5. Signature Cards. Either the City Treasurer or the Investment Manager shall be responsible for periodically reviewing the City's bank signature cards; fund transfer agreements; and bank access codes in order to ensure that they are still in force. The Investment Manager shall keep copies of these documents in a locked unit. 64 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 12 SUBJECT: "STOP PAYMENTS" REVISION NO. 1: POLICY The purpose of this document is to outline the policy and procedure on stop payments. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that stop payments should be placed upon lost or stolen checks as quickly as possible in order to avoid financial losses. The City accounting function shall be responsible for initiating all stop payment requests. 1.0 Authorization to Place Stop Payments The following three Elie City employees shall be authorized to use the Union Bank of California TEAM Stop Payment Service ("SPS") to place stop payments: 1.1 The City Treasurer. 1.2 The Investment Manager. 1.3 The Finance Operations Manager. 2.0 Placement of Stop Payments The Investment Manager shall have the primary responsibility for placing all stop payments. If he is not available, then the (1 ) Finance Operations Manager, or (2) the City Treasurer, in that order, shall be responsible for placing the stop payment. 65 Policy No. 12: "Stut Payments" Revision No. 1: 3.0 Retention of Stop Payment Documentation The efnpleyee who pleees the stop payngent, she" pfint the transaetion's paper tFail on the SPS, and she" retain this doewmentation, along with the eaneelled cheek— The Investment Manager shall be fesponsible fer filingretain:_a copy of all stop payment documentation, ' "Stop Genf PROCEDURE 1. Reaaest Ariginafien. The Gity eeeounting funetien she" request that the Investment Manager plaee a stop payfnent upon a lost or stelen cheek. deewnentsa "Requestb. Suppefting u 2. System 6oa On. The 'nvestnient Managef shall immediately pfeeeed to STS— rater €eho" she" be set so that a paper trail ean be pfinte4-. 3. Step Payment PK2f_fflgg. The fellowing eommands (highlighted in beld) shall then be entefed on response to the system prompts: a. Desired Serviee! stop b. Stop Payment Option! entr e. > _d" d. Aeeeant! (bank eeeeunt number) 4. Gheek Prempts. The following information she" then be enteFed in response to system prompts about the eheek to be stopped! s— 3ee1 Nu „ner---rekreeknumber) b. Afneun . (de"ar eineunt of cheek) e. issue Date! (day n9enth yeaf sequenee of eheek date) 66 Policy No. 12: "Stti'Payments' Revision No. 1: e. treason ! (I—last 2—stelen, a=voidedzheek; 4— ethed 5. Data VerMeation. The eheek date pfevieusly entered she" be displayed an the sefeen. if the date is eorreet, then „ „ should be entefed. If not, them 6. Stan n. The fellowing eernmends (highlighted in beld) shell then be entered an respense to the system prempts! a: > @@ b: ST9P-PM:F OPTION! eon 1 . Reaue is Onamatio'�n 1 he Crty accounti : t o a ;request that he Investment Manager place a stop pa�Y e n ch� r he m City eployge makin the request must com lete the' to�Pa �e � rmwhite) and obtain the necessary pre approval, m i %ngcopy afth following documents must be aftached`to ilZe Stopaymen Form_m order.for it to be processed a The check b. The ongmalTinvoice s .` a " * x ' "° a� �r a Alternatively,'the Investment Manager_, a niate a stop"'ayment request if he detects a fraudulent check,tiroughrnonasan s Posive Pay i Programs . 2. Internet Log=On The Investment Mana�e7ha en` gorto;the Urnon` Barik,Team 3 Check Status In' ordef t venfy-'l fie chec�k h s rAot cleared, the'Ai s y.Inv-estmgnt_Manager,sh a Select "Stops" ("Check Inquiry"�will:byey the automafid d ault) 74 a .b.- Select the bank account number} kh y I 4•- .3u Y G 1 67 Policy No. 12: "Sz a' Payments' Revision No. 1: c Enter the check number �4, ¥ dSelect�Subm!t.��_m ;�,...�o,., 3•,.. ��._.,,. _,,.�ar __. ..N..�, � The status of the pheck will be shown;as of the end of business ofthe p' Vrn rjt. -^ :.✓'r v�"'r"cc3" v'a [ -> Y 'M.` 4 Stoo Payment._�f the;c�eck has riot cleared,tt�en the Investment Manage shall: a sSelect "Plac � e Sto � ' " *+9np $sg' s s . k -" anK r_ b the�appropriat Select ebank account. , F z c Enter the check number " ate, e— 3 '_ 3 d Enter Ne check amount s P : ` H,; ����x i41n`�-� ,s n n n n yi '` r n ax.�n � e Select zLost Stolen ; aDestroyye ,nor Other , s -r � ..��,�f..; € sa_.a.�.� x#,. .�. � r�sa . Ef _-,Select_"Submit".. �. � �t '� az. ��^���•� �>��., �. ,�� r 5 stoa Pia men`'t' eoort 4fter WIN e s{op p en the Inv stment ;th'3a ,a ; -,:... Y+�3• _t�F°'ax •S* i *u..a-„� k ,_M_p_ger.shal roduce a Stoe ymen#Report � � sa a ,SelectStops History _ _ r t OAK' ta3 -s��- .c. _ �q ,nsor'n.�.p.�.+„m�-�z �. �..b.i-a as rc+ 6 ` Report Distnbutwn ;Tha InvestmentryryManager shall then return the onginal ; ttpape work to the Accountmgechncia �accounts payable), with a copy of the:Sto Histor Re ort attached �` p y p The Investment Manager shall retain � a r a co 7 Stop payment Order Conf�rma on' When the Investment Manager receives I -,m ,<n ti s. are 5'hs -h `^six G. -4 b '3 t } ` this�confisrpation from )she bank; he� ll#fetal" the ongmal and provided a Accountmg,Technician J ith_b 68 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 13 SUBJECT: "WIRE TRANSFERS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on wire transfers. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") to receive and disburse investment monies electronically through bank wire systems. A "wire transfer" is a form of electronic fund transfer that is commonly used for securities transactions. Once money is transferred by wire, the underlying investment transaction is final and irrevocable. A wire transfer may be initiated either by eemputef teffninalthro gh'' a ne or by telephone. 1.0 Wire Limits Wire transfers may not be initiated on behalf of the City for more than: 1.1 $5 million on non-repetitive wires. 1.2 $5,000 on Repetitive Wire No. 1010 (Desert Willow Checking Account) unless the City Treasurer has given his prior approval. The only exception to the foregoing shall be the wire transfer of tax- exempt bond proceeds; Local Government Investment Fund MAIF") monies; property taxes; and tax increment revenues, upon which there shall be no limit. 68 Policy No. 13: `Wire Transfers" Revision No.: 1 Date: 2.0 Wire Deadlines In order to assure same-day processing: 2.1 Union Bank of California. All wires with Union Bank of California ("UBOC") must be initiated by 1:00 p.m. Pacific Daylight Time. 2.2 LAIF. All wires with LAIF must be initiated by 10.00 a.m. Pacific Daylight Time. 3.0 Funds Transfer Agreements The City Treasurer shall execute a Funds Transfer Agreement with each approved financial institution, prior to conducting any wire transfers with that institution. The Investment Manager shall retain and file a photocopy of each Funds Transfer Agreement. The City Treasurer shall designate three publie City employees in each Funds Transfer Agreement who shall serve as "Authorized Representatives", in terms of initiating or verifying wire transfers. Each Authorized Representative shall receive a separate personal identification number ("PIN") that he or she shall keep confidential. 4.0 Authorized Representatives The following pablie City employees shall be designated as Authorized Representatives: 4.1 The City Treasurer, 4.2 The Investment Manager. 4.3 The Finance Operations Manager. 4.4 ). The Information; Systems Manager, No broker-dee%r or investment advisor shall be authorized to initiate or to verify wire transfers on behalf of the City. 69 Po/icy No. 13: "Wire Transfers" Revision No.: 1 Date: 5.0 Wire Verification An Authorized Representative cannot initiate and verify the same wire transfer; another Authorized Representative must perform one of these tasks. Term*nal in*t -...., Internet in-,OCR. wires, both repetitive and non- repetitive, must be verified by a second-level approval on-line, in order to release the payment instructions. Telephone initiated, f el'eol one callbacks arereguired "on all teleiiForie=mitiated�wires, whetFier repetitive or non repetitNe. No account numbers shall be released over the telephone, other than to initiate or verify a wire transfer. PROCEDURE 1. Repetitive Wire Transfers. These are wires that are sent on a recurring basis, in which the destination and beneficiary information remain the same, but the transfer amount and the release date vary. The process is as follows: a. The wire desk she" set the daily cash position and determine if money b. The wire desk shall then reeerd the wore in the Wire 6eq Be approval in the jEgg. d. The wire desk she" then initiate the wire either through the YBE)G TEAM Money T-fansfer Gerviee ("MT-6") or by telephene. in the ease of termffinal initiation, the wire desk sigall provide the following 0MOFfn8tIOR to-YB8G (1) Transfer Amount (2) Release Date 70 Po/icy No. 13: `Wire Transfers' Revision No.: 1 Date: lime, in erder to felease the payment e. A seeend Authorized Representative shall then approve the transfer on f. As seen as wmFe aetivit*es have been eempleted, then the wire desk she!' request a summary fepeFt ffem the TEAM MTS in ardef to verRy payment status and to obtain eenticel numbefs. g. If the wife has been inkiated by telephone, then a telephone eel! baek au cady N,c Quin v,iacu rcNc debited and the aecount to be efedited. h. The 'mvestment Menagef shall eenfirm all outgoing wifes on a next day a. The Crty employee who is requesting the wiretransferahalf prepare,a Wire .iransfer Form'"fredZand obtairi_the necessaryp e , t --_ n _� apProval,�m witting, b. The Investment Manager shall.then review the paperwork and enterJthe necessary,particylars,into th- Ire Log.* nsfer C. Tha investment Manager shall"then initiate the wire tra with_ Urnon Bank over the telephoneif he'is absent, then another Authorized Represgntative shall do�so d. qn Authorized Represeritative othehan the one who'inrtiated the wire shalt verify the rjvire when UnionBank.does a telephone Pa llback_ , �he,wire verifier s�iall therign t�ig�V1/ire Log as sucfi.; e. The Investment Manager shall hen confirm the wire on a next; day bens by pnnUng a TEAM Daily Statement Report <The Investment Manager,shall then,enter, he �tyire transaction numbe mto ;the Wire'Log f. The Investment Manager shallahen distribute the Wire Transfer Form with a confirming TEAM Daily Statement page to the appropriate_ City_accountm_g pgf sonnet for_genefal ledger entry. 71 Po/icy No. 13: "Wire Transfers" Revision No.: 1 Date: 2. Non-Repetitive Wire Transfers. These are domestic transfers that allow the wire desk to enter the transfer amount, release date, destination, and beneficiary information. The process is as follows: a. The wire desk shall set the daily eash position and detefrnine of fneney should be tFansfeffed to er from UBGG. L L_11 then L L P-_ 1 Be D. The wire desif�Ren-reeard-t„e�e�t„e�-�,r TfG- e. A second Authorized Repfesentative she" feview and initial his approval the 1 _ i1T"CGT/Cr TEAM Money Transfer Service d. The w0fe desk sha" then init a ate the wire either thfough the YBE)G M:FS-) or by telephene. In the ease of to� "nitiateen, the wire desk she" provide the following information � �� �pmn�a�l � SPVOCr (1) Release naae (2) Transfef Afneunt (3) Gredit Aeeount Name (4)Eredit Aeeeunt Numbef GI�MIAHL Party Address (8) Gredit Ban'_ Address e. A second Authefized Representative shall then appfeve the transfef on V me, in ereler to release the payment . f. As seen as wire aefivities have been eempleted, then the wiFe desk she" request a surnmefy fepert ffeFn the TEAM M:F6 in order to verify payment status end to ebtain eentrel numberst g. If the wire has been initiated by telephone, then YB()G shall de a Reference Number from UBE)G fer treeing pwposes. h. basis by printing a TEAM Balanee repeft, and then distributing it to the 72 Policy No. 13: "Wiie'Transfers" Revision No.: 1 Date: a. The City employee who rs requesting"the wire transfer "shall prepare a Wile Transfer Formred) and obtain the necessary' pre approval, in writing"._ b. The Investment Manager shall.then ev- ew the paperwork and enter the necessary;particul`ats into the Wire Log. C. The lnve"sment IGfanage�s allthen nRia ehe wire transfer with Union Bank over the telephone` ` ,he is a sent, then another Authored Representative shall do s d. An Authorized Repre enativerot er than the one who initiated, a +-�..s -.:, the wire shall verify tie wire .wenrilon Bank do es a telephone a . zs.�' *s' callback TFie vf�ire vnrrfier s all then sign nhe WireMLog as such: e. The Investment Ma�iager shallzthen confirm the wire on a next- day basis byrinting MY TEAM Daily Statehment Report The Investment Manager shalll ten eenter the,wire transaction numb_e_r into,the ,Wire�Log`. f. The InvestmentjManager shall{then distribute the Wire Transfer_ Form withTa confirming TEAM;Daily Statement paged he appropriate C'i_ty accounting personnel for general ledger entry; 73 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 14 SUBJECT: "ACCESS TO TREASURY SYSTEMS" REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy on treasury systems access. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") to ensure that treasury systems for banking and investments are secure, in order to protect against the theft, loss, or misuse of public monies. 1.0 Local Agency Investment Fund ("LAIF") The City invests public monies in LAIF, based upon its liquidity and relatively high yield. Any transactions that are undertaken on behalf of the City must be initiated using a Personal Identification Number ("PIN") for each LAIF account. 1.1 Authorization. The following publie G� ' employees shall be authorized to initiate transactions on the City's behalf with LAIF: 1.1.1 The City Treasurer. 1.1.2 The Investment Manager. 1.1.3 The Finance Operations Manager. 1.1.4 The Gity Managef (in the event that the Gity Tfeasufer and the Finance *any The Information Syste'mslanger 73 Policy No. 14: "Access to Treasury Systems" Revision No.: 1 Date: 1.2 Security. The Investment Manager shall be responsible for maintaining PIN numbers. 2.0 SymPro Investment Program This software program is used to record, calculate, and report the City's investments. 2.1 Password Levels. In order to ensure that there exists an appropriate separation of duties regarding SymPro, there are three separate sets of functional capability, based upon password security level: 2.1.1 Level One. This user is authorized to edit, add, and delete portfolios and files, and to change passwords. 2.1.2 Level Two. This user is authorized to edit, add, and delete files. 2.1.3 Level Three. This user is authorized to view only portfolios and files (there are no editing capabilities). 2.2 Authorization. The following Elie City employees shall be authorized to operate at various security levels: 2.2.1 Level One. 2.2.1.1 The City Treasurer. 2.4.1.2 The Investment Manager. 2.2.2 Level Two. 2.2.2.1 The Finenee Opefations Managef. None. 2.2.3 Level Three. 2.2.3.1 Aeeountants None. 74 Po/icy No. 14: `Access to Treasury Systems" Revision No.: 1 Date: 2.3 Security. The Investment Manager shall be responsible for maintaining, installing, and recommending changes to the SymPro software program. He shall be responsible for changing the system passwords evefy 30 daps as neede' . 3.0 U.S. Bank Aceess ProgramBank ofNe, ;. o In drmabon Network This software program is used to download data from the City's trustee, " Bank Bank of`New„Y , on the investment of tax-exempt bond proceeds. 3.1 Authorization. The following ##ee-publie �tY employees shall be authorized to access this program: 3.1.1 The City Treasurer. 3.1.2 The Investment Manager. 3.1.3 The Finance Operations Manager. 3.2 Security. The Investment Manager shall be responsible for changing the system passwords evefy 99ays ate d. 4.0 Union Bank TEAM Information Reporting, Stop Payment & Money Transfer Services These software modules are used to download the City's bank account and cash management information; to place stop payments; and to transfer public monies electronically. 4.1 Authorization. The following t# icee publie Cif employees shall be authorized to access this program: 4.1 .1 The City Treasurer. 4.1.2 The Investment Manager. 4.1.3 The Finance Operations Manager. 75 Policy No. 14: "Access to Treasury Systems' Revision No.: 1 Date: 4.2 Security. Each authorized employee shall be responsible for changing his system password every 90 days as needed. 5 0 Union Bank Posttive Pay Syste This software program i sus ed to download images of "exception" checksthat the City of Falrinbeser : as purportedly issued and that k,yh have�been'presented toUnionY$ankarpaymentThepurpose_of,the program_is`Lo detect frauu' en hecCs.; 5 1, �,Authonzation The follodwing.City empl�ees_shall be;'authoriz_ed io access this�ro_gram6 =-7 6The_'Crty Treasure., -,....�. .,-�-•..�.-gym, 5 1_2 The Investment Mangier; �.1�,3 The Finance,O,geration� Manager; 6.0 Storage of Passwords The Investment Manager shall document the quarterly Treasury systems passwords, and shall keep this documentation stored in a locked box within his office. The Investment Manager, the City Treasurer, and the Finance Operations Manager shall retain exclusive possession of the keys for the locked box. 76 CITY OF PALM DESERT Treasury Policies and Procedures 2002 POLICY NO.: 15 SUBJECT: "INTEREST ALLOCATION" REVISION NO.: 1 DATE: POLICY '>n �� kx- rr x 3.rx'F The purgos�e-of II do`cu ent is o ou . .or •y v_ oce ure pn 5 interest allocation ? �r It ism heom IS ic� olj Cat Hof P m: e e s e se e )me Agency, the Pameseusing .'u rnq m 3 Authority, and t alm�e`see a I t s• a to hereafter a e x + . referred to-�,cyollectively s e i " ch$he Crt ` Mali J G •3n has accrued �ece v I h' c o• t tondroidu QcCouEwa . ntin'g #un s e Cl e e ;Bede elomen� en�c�y, es me o. I o i annual aYe audlted financia s ate _.s rt►a be re . �� ,� 1 0 f Deduction of;,yManagement The Investment Manager's sa ar r e e I s a e. eductel e",aty�tv"" .d !q '.L'a4K ✓ad'•¢'i' a. from r.'each accounting Tun r '. e o of ect' n estment i. �' � " o v n aria er s portfolio rnanagne,��an scoin ensa,ion s ao'cated"to= a ssess en i n as a.c st, therzit. hall�be'de umb.. from . e:. o nt a .I .c e - A a ccounting �unds� 2 0 n Retentio of.,Work Papers � The FinanceROperatio�ns anage ia,f e; s o s bl'e f`ar retamng and cling all work payers; a aiing`t !<' o o�ia tFe Crty's; external auditor Illli'ave the oc re"wsrte: u- at or fie Clty's - ee I ; '�' annual financial as it t. Tr .x�,�m• _. �„'' iy.'v"YaC �.'e'f'.s tt .� r . 77 Po/icy No. 15. "Interest Allocation' Revision No.: 1 Date: PROCEDURE 1 Start of Fiscal Year t f e egmning'o eat ew fiscal year the Investment 1Vlanager should begmhe process of.aliocatmg interest income 1 a /merest�l/location orkbo`o e`trie g 51 mrest Allocation R-M . 'f �- Workbook of the prior fiscal y;ar'. o XCBI/Investmentsi Interest locatwn sy�b i ec is r er fo pe/so a etw0rk direcry, � '3 b rCash Adyustmen! IA/or sheet ati Cashust )rVork§heet y c anging co:uTn�ates Tdele g i dividual monthly , `balances eviewiri a usE en' or.'u as .an_ renarramg and saving the workbook fort e target-- sc 1 r6d Pundortfo/ios efeviR h o d u�P /iosgf the . }prior lisca 1. rear, nd:rcop� an r among them tor�he, target fiscal_ year . he r Pro co emends WO e U lit,> 0itf010 x - m t Cop�y�Defa ion>Co rch vet) PortfolioS.Code PC01 an w4, PR0I .Name e g , Z0p07 CITY P.00L•ED F NDS 5final 011DA YrY m^•�Y�^'} 'Spec S'YL 1 `. , bRF P.r�F N§: S POOLED UNDS)>Path (C. SYMPROI TOM a 5� �$5 rzse� 'e' �" 'e Yin s} "-m•, 1 .- d tenor Year June SymPro Cash Balances �ritmg the June 30_SymPro �+#{�z�.�r Yn„S��K..E "y° r'h�.�-�"'a cash balances for the prior T'scal ear or• e new�ooled -und� , ..r - Portfo%io16 s • he S mPro coin an s would be:-Fixed Income�..Reports> t+Pntr a� ,xj`}.' fe + gY "` +a°hx x` "y "Y4,'y,ama.� , .`�." t'i Investment Ustm s""> nvestments by, un FI)>Endiing Date (6/30Qr orfisca ear * >> 1 YFr i a 3T e Pisca/ Year rid Close a orming a iscal year end c ose°on the r)ew a ,CC�x•. +-U't 'd'1 fryY Poo d Fund Portfo/[os Th a SymP o:Cods would be %U,z,rt a Y � tg w Setup>Fiscal Yearind Close>(checcbox hat data as been archived 4gg r - -a, `-�""xS'xid #' a.FiM L '{,{yz "�+5r r.� __ nMa tb ?° '..t*'•"%sT r"- " and back up >(enter nor fiscal year-endl This will clear all prior fiscal f r�r ,y' .€im a E s xz�'.���"' H.��. r � +3�'�'§e "s x rT t year transactions create a begmnmg'balance forhe target fiscal rear, usqxMLA, six " a ^rt'�e�' A and reset the portfolio ior,the target, iscal�year �„ ''3- J#.Yix � .t"x"..s �y aa`ai3 f Data Entr `of Pfior Year June SymPio Cash Ba/antes �Entenfig the p ��;'� �Ka e�°as�i�alance"sas�Ca cul teci in Procedu e`1�d of�June 30 book I this,policy, by fund number into Colifmrt C ofi the Cash Ad/ustment ; Worksheet r.F __a �� tea.t 'v 78 Policy No. 15. "lnte,a'st Allocation" Revision No.: 1 Date: g Data Entry o_ f June Auditor d Cas a ances,,. tenng=the a.udited cash '4 t balances; fund number rfl a e- ank Feconcihatwr%.(Penod � 15) of". ie prior.. [scaf ear e s - d u merit ati x W�� 1 All cash�iat s I ste t o e umber'-w 1.07 OQO ender e LL c i of gap Cash'• 2)A 1310 Q000 10x1'sub= c o s . a et a ar�d eke to ed $ ,$) .he re m2ar .. ; tai �m � eet_sh`ould �41 he tDA a LV.W cas a s a r ransacfions, oshoulenter�ed&` to. M.Mr'd, l1ot s ee h Data Entry of Ot/ier` on y.- a a c caslg - balances, b ,funiu bek, s e onths, ,a e pf the fars�tg scab UCOII L13 . 4 r,: Umrts of xhe Cash A ustme� shee 1) All cas -.that is�'sted;, ' t o e um er =yam -, 1,01 0004 derma e ` cfi ach Cash +k,», No�k''Sheet shou�d be, h o c o .2) All 10 0000 �Qt su , cc s= e: o et er-any: 31 the preltmI ary tota m us sh a should ° �z reconcletoherelimma t a er• s. r ee for at month s` r _,....:..5<.'t" °` ,.`.s'�{i''�4y,�!`�;'�aa".��"'•"'}�� k3' I 4 s �T�� a.r��,rt' 4) The RDA aotwe Fashbala a e= t ash £asactions r should be entered iritb. e �.r Adlustmenis �1/o kshee K='� T� ..G'3...�rs.r � r 79 Po/icy No. 15: "Interest Allocation" Revision No.: 1 Date: After cash balances have tieen er-ed into h Cash Adjustment Woiksheet, the Adjustment to Sympro' �columnYthat is adjacent to y - each month will automaf'ically calculate an b, ustment ;s �. w Mi k x� n � � NEW? � ?� s � � g, i Backup of/rite est Al/ocatio �or, book ack n� 9 the iWE nterest 4/location WorkGook usAKE ing ens owin xcei ommands. . efx. ,a .'' r x c \backup (target fisca ear N RES a L CATION �Y , 'tea . s . � DatayEntryrnto P00% Fun foros enng each cas adjustment .rt& IEN �.ir.�'�'� 5^ky. i ., ti . ' � '33'S�'`` n*x'"`r r.'a ' by month as a drelposit cr �niit i rawa� t e Transactions Field of the t rvq .r.. Ks�,:thl'a" ii- -wa£ 4 milt+.s'2ns., ,irapptopna a Participant Fund in ac Poo e un Portfollo gesul ag cash 6alarlee in�i rticlpan d sho d:match the jl f � _cop ig�z a a nor a rres ondin cas b I Rce n e as ' 'v irrteq W ksheet I1HNo Cash d/ustme # e cas a Is ;e is ze of en no data r i�for that month rshod bee e d°n e: rt�c;pa sx FUnd �� � 41) RDA Cas �a/ante ( e case of D 9�,0 ActiVe) the opposite �, sign cony wn egg ositiv or ega rve in if asn M. :4d/ustment Works ee ) should"bejused When-enfenng data into �` t e eta , w -_ � '� � % a?, n actions F eld of e:Partici yan t Furid: k Backup yof�P,oo led fun g rry ios. ack he `P00%d Fund y Portfolios by�g 6 o rig 5 . o orr)ma 20.40Utility Portfolio .a re Co y/Deletion>Copy-fflrdi i s rorm 0,011RCAnd slr�xh -^ ¢ O1PR)>Nama eig ;�ACKUP 2001 CITY, .OGLED FUND and BACKUP i "iv+f-w .i�v. .tn ♦ r .f 200 RDA POOL'ED'FUND �)'a 2 ersona directory ISYMPROI a yam. wDATi41BACKUP) 4- 1 Non R st cte'& a's Reports etnevi�g the 1 -esiMe if Morffolios of the nor sca'¢'ear and'co min an enamin em>for # e arget t {,'+Fri^K. w• W� ��N" 14 �;e ja Si't,alA Z fiscal Year he SrmP[�o Comm rl swou a Unlit >Poq fol 03 Copy/Dele#ion Co y(Arc ive or fol�o> ode a 11CO1 ant V VlIV g �NR01)>Name (e g ,2001CITY NO RESTRICTED FUNDS arid 2001 RDA NON RESTRICTED FUNDS)>Path IC VSYMPRO\DATA%NON RES) �OW `c^yyr, 1) Investment Posit/on ReportsAn"Investment Position Repot on each B> security, excluding Sta#e local Goverment Series (",BEGS") b� securities, mutual funds, and�loca'fi agent 'investment pools, in the ,��uhedited Gity and jiD,�Non Restrc ed�n"ds�Ppifohos��The'SymProJ �,�commands areYas follows: .� ,ed, ncome Report/Reference/ �,;?a, 80 I Po/icy No. 15: `lnteiest Allocation' Revision No.: 1 Date: Investment Position Rep �SP � ur ose o ;phis port is to identify`trustee securma .chat s q e`ri'ele d f o'�m both Non /testnctea Funds Por,/ on S , 2) De%trng�`.Trustea Co nvestment4reco�rc�s m_ ac o s<< rtfobo and 1 2* cJeletm a record`s�: xce ustodlal securtt�es; _ r 7 �� 5 V'-• SZm b) RDA II custodial ecun [ � . qy �L n.,." t.t K.4tl"•.qa g'e•fOltt f { igzr3v „Interes, e o a rec s even preyiousiy booked trustee a sact o s' � !M...Backi g U o Res iic eal Fun s- io one t t pestficte -un s o s ' si o an ss s" Unlit>Po oil o o C /De etio i Co a eeaeej 01PC an 01 R)> ame e.g .BACK ' P- 00 ONRESTRICTED; and BACKUP 2001 RDA NONRESTRIG 'ED a erson_ directory)\SYMPRO\\DATA BACK P n Rep rotluct/on e I vestm. en provide .Mt; . I � Crty Treasur r thyt e,fbI the BDA f Noa?Onct` n s os, a a getKYis al ¢_ 1) Portfo/io Summ antl Po�tfo io a ai/s° e orts a ymP_�Q, commands are Fixed7ncome'/Re ort o 0 o anagemenflPortfolio; (PM � tepopenod s o ro h i i g of the target, fil uarte sca r fhrouh 'e:,en :o e a S a er.,, " '21 Intererycst Earnrngs Repo s re xe u I F,.'JyupS,� V ntl'.xT..di w Income/Report/Interestlln Brest-Ea s E x e o er a s 's 'rdr' ' I z ^'F 2 .�i E should be From he,.,beg�nnm e t r e_. sca u_arter hrough the` end of�te ta�et fisc y uarter• 5 3) .47/ocation.Llccount ActwIf ro, orr)mands Earnmgs/AllocationlRepo_aoca io ccoun ctiwt The report beriod.shduld be fso,-m.�(a e e i . a ar a fiscal quarter„ 81 Policy No. 15: 'Interest Allocation' Revision No.: 1 Date: through tine end l a a g sgal qu�er, aannd (2) the second day �a of the first fiscal quarter:-thro g the second day after tNe end of ll f e v �ezw�SA F,+ -f,oy'• .,y . first fiscal qua er �� sy € o A//ocabon of Tota !to est Earnmg`s „ Yhe_ _v st ent Manager should„y x, then allocate total mferes "fee mmgsto he ccou tmg fundsa� the new P00%d,Funa VW �ortfo[ios e S m "ro= omma ds a e s follo s '(1): lest the far n `s II ca ion Unlit Se ec nvestment T YR as For Alloca#wnPool. e ptions p nth" nclu�e mPoo1' (2) : S61ectAeUtilit Se`u ,r ccoun . roperties menu options if AM"N"i lmana emen ees are" o ,e`al[ocate t rou interest earned 1. 43 - Selecj t e Ac"trvity Allocate'Earnin s . enu opti�bu annu enter thegig egnng an n a es c ontfi' f £he ar�et fiscal, Ma er of eac o�' u n o En ar trI, 'amourit;of ' of i Ear ins ac t o o ter a ort = z fQ } he amoaLpf each mon I . nterest.ear ipgs:allocation s o d .T. �, . ,"Mid ip ip iy �4 uziYMw Equal_the amoUn of total interest earn sha is fisted on eac°li ontfig City and RDA o foko as er It a ort-:for the#ar et Awl fi ,, fiscal quarter ;except for ne month o une� h interest �� arrjings al oca#on for,June sno Id e,calculated by comparing �;�cx%rtu "� mn � ins ,.'�a .�'`s=.'+�,< ale amount o,, otal i tares ear i s h are, sted in theune � R = a C¢rty`and FAD :P r7foro Mas ert epor7-wit t e.tamount.:of accr ed.; terest tha asbeen-c la cu ate fo ne d4► Select the Report/�►locate Account ct VIT gnu options, an + Yons u 2r v produce an Al/ocation Account ctrwt eport or each montRol h of y„ the tad et fis Y ca'I ua 6r for each ew 00%d Fl/nd orffolro in ' � 9 ,.*. usw-'- gC?C�.' 7.'�'i »..." +.1 " '•der3o venf "he interest earnings alocation-for each month e est, s _osted a firs -;la of eac subsequent month.- r p ca r� on of Management _R he' str�ent,Mana er s eJ ices'"��" " u `t wxal .-u,}3 a- °te`�F �f,."5-`°is e''c"�as �' r-Tw"..err'c shoyuyld be c�ar� as ryponthly f6d weeac a ccou t g f0d1 l each new Poo/ed Fund Portfolio his fee shall be defined as the Investment .+ 444 Manager s salary plus�fnnge enefrtsewvalent to 29 63ercent of . salary The basis for allocating the management fea should be the 'x,- . r ,ww+r.,, M t r , dollar amount of each accounting fund as a"percentage of the dollar , Jt-- . . s4�..„1 aFY}r*f.-art �rsNX.+.avg'. ,.�"sa.,e s, k� i Y a ..amount otall'accounting funtls wrtFiin each new.Poo/ed Fund Portfol% 82 Policy No. 15: "Interest Allocation' Revision No.: 1 Date: •Thminn sho b y� dagee - smentistrict X'x�r°A`vT"'l ice^' ° .#, 'trust funds 2} f�DA�tru un�dsun s (4) all 'other RDu s e a oca orb .� bd ' Efunds shall be one,Concurr n i e ea on'o. t staff dime 50 tT hR ��"k ,that bias been devoted. NMI q oINS 114 stin,� of/ri Brest i9%/oca on. i s a ce. E } wh " O era ons an ger e o t" e. o i�ccounb Munds in t ew ,pole o i s s 3 ,n stall be z , 'ril subcliv ded;i 'or er to su i"i e - c o nts e a '�-i --� 2 SeCOnd an Thir Fiscal"Qua a s= te., s q oc i r e's `cold and ; r r +ax x ethirfiscal 4uarter3sliou�ii: egln u s o �c 3 'Fiscal Year End fxert e e a . e es. melt • ��lllanager rs�oulil u erfa e a e #���_ ,a a }mPio ear-Erid'Close. a roc s{ o is ::.es Ben } execute cos e C y e D° s i r a prior, iscalRye�a upon e ej 4,5amortizin isco nt instrumentsrs . _.ter.=.au��,,,ndti�.,+�"•a ��,°k `yj' k' V�,, ,+'.l,{ . F1) Both the City -ndhe RDA ,ortfo ros+s 4u ac ed u °i' SymPro' Lgfj' s 1Vows _Unlit c>-P . olio Co Dele io o „ := rchrve , Pprtfol o 'Cdee gSM 1, .0 an A F a e: . ACKUP 2001 li :b CITY YEC anBACK P=20 1 D t E Parn.I ersonalq's EIM, rectory),\0 MP _0 b �M Perform the flscal; eare UtiUty>Setup>-IF!scal Year n Close> , ec - ha atafias t 3 74h 3 f»„g icl �: ac di,F' i �yj , ' �+. &�g,j den arc Wi and back )> e : a e' sc ar M. �, M 3jr Confi wf rm the elsca ear end: a ask o, ti it �:Setup> , Prtfol �S�etup/Preferences � Y` � � g3 b Report Production ,ems pa gfo�cedure s- of c , he Accrued /nterest�AQ Reportshould"be pnn e� e o co an s are Fixed Income/Report/Interest�.�e lepor i�g�pe � our pe fiom y, 6/01,/Itarget fiscalyearZ„�roag_h_.6 3Q/tar a; �sca�ear �<:: rL_� ,_,, �� 83 I Policy No. 15: `Interest Allocation' Revision No.: 1 Date: Whenallocating interest elnngs, the #�Ifowing steps should precede Procedure 1 0 of his'_I R } ` � , S P cY .wr °r doff � p R ,fir - *` i x� 2a ' i..'�3t `h I {R'tn-C '�k Y. try' `3 x 'F K"^`Lxk, S `i.4ak ,,yrtr c Acciva/ Worksheet:7 T is zcel wor"cs eet calculates the amount of -� .r�'a- 'yar interest inco e ttiat was earned iR t ie nof.fiscarper o�d but received in x- +rtr'sasFa33". .'�"m-, . ` 7"w°� the target iscal enod `4 inc'e ebt securities v r�ith interest coupons a� typically pa mteres ever�y5/}six mo the eves jarbivard u" o 31 be ember`could ii cd some accruec 'Int s ���. _ s 1 'r .'4T" r aul5 a.�x,. 1] xysv^ = .sTTvL t ' i d Ca/cu/anon ofAcciued�nte es Ear, i s e�y Treasurer-art o K.�' r ,r:.. Finance Opergions_ anager s ou d e�iew �e�es ammgsReport `a. er3fx. ..F i .. . '.a� x"e ids-�':` }'=:k'?,�� ,f in Order o determine fat iorti4 n eres earnings hat were - - s 3w g received in the tar et �sca - enod s Oul e aloc�afeas�accrue� x � , L. mteres joint nor seal' enp a G�ty reasurer or tFia Finance 00'ratIons'- anage"shall then repate end Y. all cc ued�in e es to' t he general ledgers o t enevr P o/"d Eu ,ortfo/ios � a« ��s a e Ca/cu/ationof Total. n>eiest Earnings. a Cit reasurer or, he Finance. OPeratonsVlanager shod hen a I is accrue interest to interest R .,.;:. a .5 k r- y4aF�^essea` 'I .suF'w.al �++ e fir' received unng tie arget fiscal period, in order,to calculate She amount a asc„S,�n`+.. •z r .F�. r.cv- ,W,s 0.6 :a' aT '�-z x-_' s7 n of total interest earnin s that will be ailocateH o all accounting funds] �� the,v ew P00%d�rid Ponfo/i 2fO +q � f f Ana/Allocation Activity Report Tpe Investmen Manager should then x .si'Y _ re�`^tzwxFF+s`c +'kat'hz punt Allocation Account Activity �OOp for each new Pooled Fund ` , ' "J�i'7'41'y�T Portfolio for ,the target fiscal quaYrter ,e g , ��/ target fiscal years � T sV �" .YTiiav tom^ " Y thorough 72/1subseguent fiscal T,ear) r v �,�-.,�-+,�3a� i+ '�e7 Y ° �gk a• `i�i"G3i is� 'S£s tj` g Ma3" ? a..a'�^� A �J,,� ��.Wz -§#OS,v ,y..; a.-y. ,v• ;e.....�sa���o,� �.rF,a� rs.-�.^Ea� ssa`�`. �,�c5.r�— .N.atsn..rl.�i:.�w.u:t-..�-mYar,.�+esc��7:3 84 CITY OF PALM DESERT- Treasury Policies and Procedures 2002 POLICY NO.: 1.6 SUBJECT: "CASH_AN,D IN T AUDIT REVISION NO.: 1 DATE: POLICY The purpose of this document is to outline the policy and procedure on the annual audit responsibilities of the Treasury function. It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Housing Authority, the Palm Desert Financing Authority, and the Palm Desert Recreational Facilities Corporation (hereafter referred to collectively as the "City") that the Cty shaij hngage annex ter a�I and lto o ion uccas me trs�udrt every ree years, 0inless there have peenslgnlilc e_ regaay, �n 'Treasury personnelF lf„erther of the foregol g epnc)I Ions occurs, hen the City Treasurer or the Flnsnce Com, ttee nyY�nc_rease he ,e ue of the audits, as,needed. A cash and;lnvestments audit shall include among its objectives, a review of: • The effectiveness of the internal controls for the City's investment program. • Staff compliance with treasury policies and procedures. • The description and classification of investments, by fund type, on the City's balance sheet, as well as related disclosures, including restrictions and commitments. • Custody and safekeeping arrangements. The City Treasurer and the Investment Manager shall cooperate fully with the external auditor, in terms of willingly producing all information and documents requested, as well as responding honestly to all inquiries. 85 Po/icy No. 16. ' ashen"a;%nvestments A�idif `Revision No.: 1 Date: The City's annual'audit includes certain audit procedures that are related to cash and investments, such as the confirmation of the year-end balances. It is the City's policy, however, to have the external auditor perform additional procedures related to cash and investments. Consequently, the Finance Committee shall annue"y identify and communicate to the external auditor what additional testing procedures will be required. The external auditor shall submit its report on these additional procedures to the Finance Committee by 31 December of eaeh t year. PROCEDURE 1. Required Audit Documentation. The Investment Manager shall provide the external auditor with the following documents for the fiscal year being audited: a Statement of investment Polk y b Treasury Policies andTrocedures.Manual'. c Trade Book: d 'Wire"Log e qll bank accou signature cards. f. All monthly investment reports and schedules. - .•M-•c, s.ct w,ecn -r rc-� g All compet►tii a offe'ring documents q �— h All broker qualification and re_qualification documents L All trustee, custodian, and bank admirnstrative fee_documents_ I o r_yarket fund qualifcationfocuments.; a 2. Confirmation Letters. The Investment Manager shall ensure that "Confirmation of Marketable Securities Held By A Third Party" letters are prepared for the external auditor to send to the City's custodian and to the City's trustee. 86 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF JULY 2001 WITH JULY 2000 (DOLLARS IN THOUSANDS) JULY.2601 JULY2000 CHANGE Average Daily Portfolio_ $ 52,519,514 $ 41,566,053 +10,953,461 Accrued Earnings $ 206,762 $ 227,465 -20,703 Effective Yield 4.635 6.443 -1.808 Average Life-Month End (In Days) 173 191 -18 i Total Security Transactions Amount $ 36,447,798 $ 16,255,529 +14,192,269 Number 644 347 +297 Total Time Deposit Transactions Amount $ 2,045,490 $ 1,227,590 +$17,900 ppp Number 166 138 +28 Average Workday Investment Activity $ 1,547,299 $ 874,156 +673,143 i Prescribed Demand Account Balances For Services $ 208,286 $ 178,457 +29,829 For Uncollected Funds $ 122,287 $ 169,862 -47,575 1 PHILIP ANGELIDES TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) JULY 31, 2001 PERCENTAGE CHANGEFROM TYPE OF SECURITY. AMOUNT PERCENT PRIOR MONTH Government Bills $1,812,143 3.55 +.23 Bonds 0 0.00 0.00 Notes 3,507,419 6.87 +.43 Strips 0 0.00 0.00 Total Government $5,319,562 10.42 +.66 Federal Agency Coupons 4,356,958 8.53 +.05 Certificates of Deposit 7,495,152 14.68 -.34 Bank Notes 1,400,000 2.74 -.29 Bankers'Acceptances 0 0.00 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 9,981,017 19.55 +.93 Time Deposits 4,915,045 9.62 +.69 GNMAs 930 0.00 0.00 Commercial Paper 12,969,262 25.40 -1.15 FHLMC 9,764 0.02 0.00 Corporate Bonds 2,507,099 4.91 +.33 Pooled Loans 2,508,142 4.91 -.10 GF Loans 0 0.00 0.00 Reversed Repurchases [398,0941 [.78[ +.78 Total(All Types) $51,064,837 100.00 INVESTMENT ACTIVITY JULY 2001 JUNE 2001 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 644 $ 30,447,798 666 $ 31,683,048 Other 5 3,571 38 317,097 Time Deposits 166 2,045,490 157 1,771,300 Totals $15 $ 32,496,859 861 $ 33,771,445 PMIA Monthly Average Effective Yield 4.635 4.958 Year to Date Yield Last Day of Month 4.635 6.104 2 POOLED MONEY INVESTMENT ACCOUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF AUGUST 2001 WITH AUGUST 2000 (DOLLARS IN THOUSANDS) ..AUGUST2*06 Average Daily Portfolio $ 49,838,754 $ 41,176,941 +8,661,813 Accrued Earnings $ 190,575 $ 227,515 -36,940 Effective Yield 4.502 6.505 -2.003 Average Life-Month End (in Days) 170 199 -29 Total Security Transactions Amount $ 25,250,087 $ 21,813,975 +3,436,112 Number 542 479 +63 Total Time Deposit Transactions Amount $ 2,165,000 $ 1,371,700 .+793,300 Number 136 129 +7 Average Workday Investment Activity 1,191,960 $ 1,008,073 +183,887 Prescribed Demand Account Balances For Services $ 277,342 $ 175,858 +101,484 For Uncollected Funds $ 139,553 $ 174,175 -34,622 PHILIP ANGELIDES i TREASURER STATE OF CALIFORNIA I INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) August 31, 2001 PERCENTAGE CHANGEFROM TYPE OF SECURITY AMOUNT PERCENT PRIOR MONTH Government Bills $1,338,174 2.78 -.77 Bonds 0 0.00 0.00 Notes 3,505,417 7.30 +.43 Strips 0 0.00 0.00 Total Government $4,843,591 10.08 -.34 Federal Agency Coupons 4,186,852 8.71 +.18 Certificates of Deposit 7,720,248 16.06 +1.38 Bank Notes 1,625,012 3.38 +.64 Bankers'Acceptances 0 0.00 0.00 Repurchases 0 0.00 0.00 Federal Agency Discount Notes 8,427,362 17.53 -2.02 Time Deposits 4,898,545 10.19 +.57 GNMAs 908 0.00 0.00 Commercial Paper 11,412,740 23.74 -1.66 FHLMC 9,547 0.02 0.00 Corporate Bonds 2,350,179 4.89 -.02 Pooled Loans 2,594,244 5.40 +.49 GF Loans 0 0.00 0.00 Reversed Repurchases 0 0 -.78 0.00 Total (All Types) $48,069,228 100.00 INVESTMENT ACTIVITY AUGUST 2001 JULY 2001 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 542 $ 25,250,087 644 $ 30,447,798 Other 25 477,781 5 3,571 Time Deposits 136 2,165,000 166 2,045,490 Totals 703 $ 27,892,868 815 $ 32,496,859 PMIA Monthly Average Effective Yield 4.502 4.635 Year to Date Yield Last Day of Month 4.571 4.635 2 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER � SACRAMENTO Local Agency Investment Fund'! PO Box 942809 Sacramento,CA 94209-0001 (916) 653-3001 August, 2001 Statement PALM DESERT REDEVELOPMr AGENCY .,I Account Number : 65-33-015 Attn: TREASURER 73-5I0 PRED WAKING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 30,000,000.00 Total Withdrawal : 0.00 Ending Balance : 30,000,000.00 Page : 1 of I STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916)653-3001 August, 2001 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 30,000,000.00 Total Withdrawal : 0.00 Ending Balance : 30,000,000.00 Page : 1 of 1 m, y L m a. - x � n � a v r LU ° e b a) W `p cMc}} M. N N H - O r., W W 0 7 CMv Q. -= 000c'r000ri Q o .-. cddo M o �'. a a a C� IL a a LL Q Q w a Q Z W .. m tt C' 0 7 0 7 0 m b M v� �p m O N O v M V' Oa. O 01 O M M M 01 V N N M O N O T LL L 2 rA ¢ ¢ A V �+ ,• � � C v A w ' O O ooa. aorn - p� oo � o 00 0 0 0 0 �" oho p� N N \Op O O_ O Vi � b v1 h N ydj o mu i0 p U t0 '� o G N mU T F ❑ A a to r , U RS A > _ O W N o o m ar u ?+ XS e eov fL rn..F �.7 96` pk `° vo d O W a 0 a°. a U U V Q O y a Fri n � _ 0 z y. b b O O tip ON It �o .-.M P r y 7 O 01 M 00 vi N CN Ii O m /W/ V u N I -L W W W 7 0 0 O r N V V N N D N N 0 0 7 0 y Ll C � J+ �+ G Q V c J o U- a Q a LLI WLL aMMo � � o � c WLL R ^ 0 00 O y uo V a A s � � w N a. O 0 N O O O m �o d 0 0 0 0 �o bU y -+ FQ Q� y A Q p i .gooaaorn rnoo � o 0 00 0 0 0 � , +-� 00oo .taot� rnv, m o d00000 0 0 � ' N q�p M G d w O O vt v1 l0 Vl �n N y C N n 6�! .r N h O U 16 .a. c b r7z � N W 3 C C7 m F „ z N cemF 'a' .w` w ° v � o W w° C7wa. U � � wv u PALM DESERT REDEVELOPMENT AGENCY COMBINED STATEMENT REVENUE AND EXPENDITURES COMPARED TO BUDGET 31-Oct-01 TOTAL RDA RDA RDA .%OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 15 Tax increment 38,265,287.00 12,755,095.67 182,192.21 1% 12,572,903.46 2 Interest 986,000.00 328,666.67 - 0% 328,666.67 Sales of Property - - - 0% - 3 Reimbursement From Other Agencies 1,207,300.00 402,433.33 117,146.68 29% 285,286.65 Other Revenue - - 2,350.73 0% (2,350.73) Transfers tolfrom other funds - - - 0% TOTAL REVENUES 40,458,587.00 13,486,195.67 301,689,62 13,184,506.05: FAV(UNFAV) EXPENDITURES Administrative Costs 1,127,150.00 i 375,716.67 261,280.06 70% 114,436.61 Professional Services 1,206,888.00 402,296.00 38,044.03 9% 364,251.97 6 Property Tax Administrative Fee 577,543.00 192,514.33 - 0% 192,514.33 Payments to Other Governmental Agencies 13,284,792.00 4,428,264.00 - 0% 4,428,264.00 Bond Issuance Costs - - - NoBudget - Bond Discount - - - NoBudget - Interest And Fiscal Charges 9,489,885.00 3,163,295.00 2,378,779.66 75% 784,515.34 Principal Payments 3,055,000.00 1,018,333.33 692.11 0% 1,017,641.22 Cost of Inventory Sold - - - NoBudget - NoBudget Capital Outlay NoBudget - Office Equipment 13,617.00 ' 4,539.00 692.11 15% 3,846.89 Undergrounding Projects-Major Art 1,970,937.00 656,979.00 - 0% 656,979.00 Undergrounding Projects-Neighbor 3,000,000.00 : 1,000,000.00 - 0% 1,000,000.00 Undergrounding Projects-Hwy 74 2,100,000.00 700,000.00 - 0% 700,000.00 Entrada-El Paseo 8,938,164.00 : 2,979,388.00 37,125.29 1% 2,942,262.71 Parking Spaces 400,000.00 I 133,333.33 - 0% 133,333.33 Parking Lot-Pres Plaza 1,015,115.00 338,371.67 - 0% 338,371.67 4 Fred Waring Street Improvements 4,293,784.00 1,431,261.33 - 0% 1,431,261.33 1-10 Cook St Interchange 250,000.00 250,000.00 250,000.00 100% - Business Center 33,850.00 11,283.33 - 0% 11,283.33 UCR Infrastructure 2,000,000.00 666,666.67 - 0% 666,666.67 Cal-State Infrastructure 1,200,000.00 . 400,000.00 - 0% 400,000.00 JFK Clinic 300,000.00 100,000.00 - 0% 100,000.00 Sandpiper Improvements 400,000.00 133,333.33 - 0% 133,333.33 Palms to Pines East Project 1,000,000.00 333,333.33 - 0% 333,333.33 Public Library/Community Center 403,915.00 134,638.33 185,818.42 138% (51,180.09) No.Sphere Infrastructure 1,097,364,00 365,788.00 1,310.05 0% 364,477,95 RDA Projects 3,313,582.00 1,104,527.33 - 0% 1,104,527.33 Desert Willow Pad Stabilization 200,000.00 j 66,666.67 18,000.00 27% 48,666.67 Section 4-Desert Willow ' 81,690.00 27,230.00 1,803.96 7% 25,426.04 Property Acquisition 1,996,904.00 665,634.67 1,782,563.00 268% (1,116,928.33) Business Enhancement Program 1,000,000.00 333,333.33 37,500.00 11% 295,833.33 Contrib-McCallum - 5,000,000.00 ' 1,666,666.67 5,003,120,00 - 300% (3,336,453.33) Contrib-Housing 1,800,000.00 600,000.00 - 0% 600,000.00 Regional Park - 7,250,000.00 2,416,666.67 - 0% 2,416,666.67 Transfers Transfer Out Administrative Costs - - 0% - 3 Transfer(In)/Out Capital Exp Reimb - - 0% - 5 Transfer Out Low/Mod Set-Aside 7,651,150.00 " 2,550,383.33 36,438.44 1% 2,513,944.89 TOTAL EXPENDITURES 85,451,330.00 28,650,443.33 10,033,167.13 18,617,276.20 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements for the Library are posted at yearend. 4. Land Purchase$will be moved at mid-year 5. 20%Set Aside included here,shown as transfer out 6. Administrative fee adjusted if needed on second TI pymt. RDA Financial Report 10-2001 J.Moore 11/7101 mx > > > °� O3a i � � 3IDmxC C ^ d N N N p�j .N-. O N j . N, y C (D A C O N O N ox °i < N m 0 CD cAo m o a m m O aD o ?m} N CC: C p�. Nr S N p .N.. y N ai i 3 - W In m m an d N O O a fu N n N T N D N CDN N LD N N 3 N N £ N Q J N OM NO J O o A V W O W. cc WN Gl o N 'N m O A N.N N A N N W" S 'W ON N.V V N N W O C: G. O W (T f0 A�(,1�I N N) J 'V. 01 Om cV0-A O INN O ONNj IO O O (r OHO N W 00 .V OOO OON (A C 0 0 0 � ',O O 00000000 O 0 0000 � � � TT N N 'N N C CL y -w a o VN m o cp CD jia is ;o o io - 0 Q° !D w a oAi rn m •`A" w X O (N W W O itNO N V T< ; 3 aM D -u D N fQ '.CAO W OAl iN O N n � 3 tV0 cc O A .Ap t D � O aN) j W .O. N N N N v m W N N D - -I A A 4 N 'N N N tN W 0 m T c Z J CO) 0 0 0 0 y O W V N A Ui N PO OO O (OOOOONO V OOOAOO N 0 0 N 0 0 0 0 N O O 0 m z o x m � 4m 0 d m 1 m ooz Q ZTO N c n 0 o N CNz0 OzD D O a R, , a mrD � y = 0S � m m m 'w = mN 0 003 D 3 3O, .0 w CL x 0 D 2 3 ? D 3 0Nv D m Ta 0 O 0 0 O y a <3 5m 3 m T, Om? a a a a ' 3m c m n = m 3 mp33 c 3 = 3 y 3N O m 1 m < T y N o N a H m N T D C C n mo m O m 2 Z m m N C Ao3 N m0 x v 3 m m CL C _ yOOOf0 WO+:p000OO'OW mfO- OW pp_J + WN N jY N 41 C D V;V 00000) OW- WOOOOOWOWiT O al : W +._V W 2 � ni tt0 o O O O iD O�O VI 4i ID o O C O O N G V + O +G.O T :m 00000 soo mrn o0000ON�om + omooW yy o o o m; Z O .O O O O O O jo " 000000bb 0000boobc boo ooboo ob000 ^� Q _0000000000000000000000:00-0 oo (o 00000 N tJ J y O V V i0 O (O O + W + N A W O N ry• iN 00 y O N N A + �N O + + m O O I A O N W w O O N O O + N �f0 W Q7 i 4 C N m O W 0 O J O + m O O 0 n jV J Z D 3 iN N (�j O > m D to �''A r o o 0 o L O m ( >a ti y m o A C m m 4o O 1 N J to O tJ V N + W + W O V + O N LO 9 :y + y (11 W O W W O O W N IA W O y d y O 0 0 0 0 0 0 0 0 w W S 0 0 (D 0 0 0 0 0 0 0 0 0 0 y 0 0 0 N O 0 0 0 t l l O N O O 0 0 0 4 f O 0 . 80 O O O O O t D O O O A O O O O O O O O O O !J O O O + O O O O A O I y O V O O O N O 00 O O O O O O O J O O U I N O O O O O O O O O O(O O O O + O O O O W O l 1 t p O W M O O O PALM DESERT REDEVELOPMENT AGENCY 31-Oct-01 Schedule of Revenue and Expenditures HOUSING FUND 4 YTD (FAV)UNFAV Bud et B REVENUES ud et Actual YTD Variance 2 Transfer in of 20% Set-Aside 7,685 20Q.00< 2,561,733 33 3k3,438. 4 2,525,294.89 3 Interest 20,OOQ.OQ: 6,666.67 3,275.14 : 3,391.53 Rental Income 48,Ooo.oO 16,000.00 9,500.7Q 6,499.30 Sales of Property 153,000,00 ' (153,000.00) 1 Reimbursement From Other Agencies 2 Housing Mitigation Fees Other Revenue 4,916,75 4,916.75 TOTAL REVENUES 7,753,204,00 2,584A00,00 20T,i31'03 2,377,268,97 ' EXPENDITURES FAV UNFAV Administrative Costs 417,400A0 ' 139,133.33 91,034A8 48,098.85 Professional Services 3Q5,Q0fl.fl0' 101,666.67 62,946.97 38,719.70 Property Tax Administrative Fee Cost of Inventory Sold 6 Interest And Fiscal Charges 2mo;i98,00 860,066.00 i`,298,956,58 (438,890.58) 6 Principal Payments 955,fl00,00 318,333.33 955,000.00 .. (636,666.67) Office Equipment SQQII.00 1,666.67 1,666.67 Acquisition Rehab/Resale#7 780QQ0,0II 260,000.00 260,000.00 Home Improvement Program 1-6 11,?49,27 ! (11,749.27) Palm Village Apartments 4 Property Purchases 61.37 (61.37) 5 Desert Rose 10;0Qo.flQ j 3,333.33 3,333.33 5 Portola Palms Mobilehome Park 170000Afl 56,666.67 174,112.47 (117,445.80) Fred Waring Improvements 240,67100 : Multi-Family Improvmt Program 2910000.00 Housing Development 3,812,447.00 1,270,815.67 620,410,74 650,404.93 Transfers Transfer(In)/Out Administrative Costs Transfer(In)/Out Capital Exp Reimb TOTAL EXPENDITURES 9,235,045,01 3;011,681,67 3;454,944,88 (202,590,21):; Notes: 1 2 This transfer is done once a year only. (This is an based on actual$ rcvd) 3 Interest is posted with investment maturities or dividend payments 4 5 Includes re-purchases and re-sales 6 Debt Service is due 10/1 and 4/1 of each year Housing 20% Financial Report,J. Moore 11/7/01 t,11Y Or Palm Deserl Parkview Office Complex Financial Statement for Fiscal Year 2001-2002 October-01 October-01 # °!° YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 68,500 $ 67,211. $ (1,289) 98.12%" ' $ 274,000 $ 269,036 $ (4,964) 98.19% Dividends/Interest $ 4,200 $ 2,466 $ (1,734) 58.71% $ 16,800 $ 13,201 $ (3,599) 78.58% Total Revenues $ 72,700 $ 69,677 $ (3,023) 95.8i $ 290,800 $ 282,237 $ (8,563) 97.06% Expenses Professional-Accounting&Auditing $ 6,800 $ 6,800 $ - 100.00% . _ _ $ 27,200 $ 27,200 $ - 100.00% Professional-Consultants $ 6,000 $ 5,718 $ 282 95.30% $ 24,000 $ 22,351 $ 1,649 93.13% Tenant Improvements $ 2,500 $ - $ 2,500 0.00% $ 10,000 $ - $ 10,000 0.00% Repairs&Maintenance Building $ 8,000 $ 9,661 $ (1,661) 120.77% ` $ 32,000 $ 42,795 $ (10,795) 133,74% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00% $ 9,200 $ - $ 9,200 0.00% Utilities-Water $ 250 $ 94 $ 156 37.66% $ 1,0W $ 370 $ 630 36.96% Utilities-Gas/Electric $ 8,500 $ 9,228 $ (728) 108.56% _ i $ 38,500 $ 39,228 $ (728) 101.89% Utilities-Trash $ 700 $ - $ 700 0.00% - $ 2,800 $ - $ 2,800 0.00% Telephone $ 150 $ 180 $ (30) 120.03% $ 600 $ 666 $ (66) 111.06% Insurance $ 521 $ - $ 521 0.00% $ 2,082 $ - $ 2,082 0.00% Total Expenses $ 35,721 $ 31,681 $ 4,040 88.69°!u '. $ 147,382 $ 132,611 $ 14,771 89.98% OperatYng Income 36,9791 $ 375396 q; . 2',07 I0275°fa $24 18 $ 1 9J 2Cr '$: 6,208. ; 04,33Qfq Equipment Replacement Reserve $ 10,000 $ 12,618 $ (2,618) 126.18% $ 30,000 $ 50,471 $ (20,471) 168.24% Net Income _ � �479 S $ il, ):_. '-907% 313,418 ,!11 s5i & $�14,262�"'�87.42°Pu 2002 Investment Report2002 Invest Report i City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite October 2001 Suite Square No. Tenant Feet 73-710 Fred Waring Drive-Two (2) Story Building 100 Hanover 2,560 102 Bergren 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Vacant(Lease terminated with JMS as of October 2001) 928 108 Senator Kelly 785 112 Assemblyman Battin 1,406 114 - Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 City/CVAG Conference Room 1,380 120 Duke Gerstal 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 City Storage 604 203 Vacant(Tenant vacated building-Accounting Services) 480 205 Coachella Valley Economic Partnership 700 208 Vacant (Desert Springs Did not Extend Lease agreement) 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 2002 Investment Report2002 Vacancy Report - City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite October 2001 Suite Square No. Tenant Feet 217 Joe B. McMillan, Esq. 775 220 CA. State Dept. of Agriculture 1,607 222 Vacant 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate-5,953/31,562= 18.86% 73-720 Fred Waring Drive- One Story Building 100 State of California-Water Resources 15,233 102 State of California-Rehabilitation Department 4,396 Total Square Footage 19,629 Vacancy Rate--0.00% 0.00% Overall Vacancy Rate for Both Buildings: Vacancy Rate-5,953/51,191 11.63% Occupancy Rate-45,238/51,191 88.37% Note: Parkview Office Complex is 100%occupied in terms of available space. Suite 106 is used as storage for the City of Palm Desert. 2002 Investment Report2002 Vacancy Report City of Palm Desert Desert Willow Budget Vs Actual For the mouth of August 2001 Budgeted Actual Budgeted Actual August August $ Percentage Year to Yearto S Percentage Revenue 2001 2001 Variance Variance Date Date Variance Variance Course&Ground S 110,051 $ 92,480 S (17,571) 84.03% $ 217359 $ 205,762 S (11,597) 9466% Cans S 14,758 $ 13,425 S (1.333) 90 97% S 29,253 $ 29,410 $ 157 100.54% Golf Shop $ 25,107 $ 29,707 $ 4,600 118.32% S 51,384 $ 54,282 $ 2,898 105.64% Range $ 300 S 487 $ 187 162,33% S 800 S 957 $ 157 119.63% Food&Beverage $ 49,542 $ 43,090 $ (6,452) 86.98% S 100,178 S 91,576 $ (8,602) 91 41% Interest Income $ 4,000 $ 1,157 S (2,843) 28.93% $ 8,000 $ 2.780 S (5.220) 34.75% Total Rerenues S 203 758 S 180.346 $ 23 412 88.51% $ 406.974 S 384.767 S (22.207) 94.54 Payroll Proshop $ 2,093 S 2,127 $ (34) 101.62% S 4,187 S 4,922 S (735) 11755% Can $ 15,400 $ 16,281 S (881) 105.72% S 30,800 S 34,943 $ (4,143) 113,45% Course&Ground $ 119,262 $ 128,801 S (9,539) 108.00% $ 239,411 $ 248,155 $ (8,744) 103.65% Golf Operations $ 18,201 $ 18,394 $ (193) 101,06% S 36,402 S 36,570 $ (168) 100.46% General&Administration $ 39,342 $ 38,585 $ 757 98.08% $ 78,571 S 76,433 $ 2,138 97.28% Food&Beverage $ 38,896 $ 40,681 $ (1785) 104.59% $ 77,790 $ 82,145 $ (4,355) 105.60% Natal Pavroll S 233194 S 244869 $ 1675 105.01% S 467161 $ 483168 $ 16007 03.43% Other Expenditures Perimeter Landscaping $ - $ - $ - 0.00% $ - $ - b - 0.00% Proshop $ 950 $ 835 $ 115 87,89% S 1,900 $ 2,691 $ (791) 141.63% Proshop-COGS S 13,864 S 25,600 $ (11,736) 184 65% $ 28,730 $ 42,951 $ (14,221) 149,50% Can $ 12,600 S 5,984 S 6,616 47.49% $ 25,200 S 16,029 $ 9,171 6361% Course&Ground-North Course $ 52,268 $ 57,904 $ (5,636) 110,78% S 107,896 $ 109,674 $ (1,778) 101.65% Course&Ground-South Course $ 75058 $ 56,583 S 18,475 75.39% S 131,003 $ 89,699 $ 41304 6847% Course&Ground-Desert Pallet-N $ 2,t 10 $ 212 S t,898 to 05% $ 3.620 $ 1,182 $ 2438 32.65% Course&Ground-Desert Pallet-S $ 1,500 $ 919 $ 581 61,27% $ 3,000 $ 1946 S L054 64.87% Golf Operations S - $ 1,345 $ (1,345) 100.00% $ 7,250 $ 1,640 S 5610 2262% General&Administration $ 63,500 $ 40,283 $ 23,217 63,44% $ 119,100 $ 89,931 $ 29,169 75,51% Range $ 150 S - $ 150 0.00% S 300 $ 276 $ 24 92,00% Food&Beverage S 9,331 $ 13,014 $ (3,683) 139,47% $ 24,662 $ 30,433 $ (5,771) 123 40% Food&Beverage COGS $ 15.581 $ 13,608 $ 1,973 87 34% S 31,489 S 31,400 $ 89 99.72% Management Fee $ 25,000 S 25,000 $ - 100.00% $ 50,000 S 50,000 S - 100.00% Financing/Lease $ 1,788 S 4,756 $ (2,968) 266 00% S 3,709 $ 9,645 $ (5,936) 260.04% Total Other Ex enditures S 273700 246043 $ 27657 89.90% $ 537859 S 477497 E 60362 88.78% Desert Willow Golf Academy Desert Willow Golf Academy S 12,100 $ 2,536 S (9,564) 20.96% $ 24,200 S 7,770 S (16,430) 32.11% COGS-Merchandise $ (4,789) b (3,310) $ 1,479 69_I2% $ (9,579) $ (7,708) $ 1,871 80.47% Other Expenditures $ (1,870) $ (2,665) $ (795) 14251% $ (3,840) $ (5,160) $ (1320) 13438% Learning Center Income(Loss) $ 5.441 $ (3,439) $ (8,880) -63 21% $ 10.781 $ (5.098) $ (15,879) -47.29% Operating Income(Loss) $ (297,695) $ (314,005) S (16,310) I05A8% $ (587,265) S (580,996) $ 6.269 9893% Equipment Reserve Replacement $ 71955 S 76,928 S 4,973 106.91% $ 143,910 S 153,521 S 9,611 10668% Net Income Lass S 369 650 S (390,9331 S _J21,2831 105.76% $ (731.175) S (734.517) $ (3.342) I00A6 Snapshot of Golf Rounds Budgeted loan Actual ma Variance Variance% Bud eted Id Actual td Variance Variance6/0 Resident 418 292 (126) 70% 983 736 (247) 75% Non Resident 2,435 2,141 (294) 88% 4,674 4,619 (55) 99% Other - 101 101 100% - 184 194 100% Com limentary 110 302 192 275% 214 640 426 299% Total 2,963 2,836 (127) 96% 5,871 6,179 308 105% Folder:Desert Willow 2001:Dw2002;Fm,mria1 Statement Page 1 \ ( \ 7 \ i ' ( 7 2 § aeLO J • \ q ± _ t . 2 ) 2 � , j ! ) /� ! § 0coW ) k ) / / ° ] ¥ \ ! § / k \ }j ) ) ! 3 Uoom 2 a aa ; a ■ ; ; � \f a � ) : OD _ — 4 ) � j � ■ § 22 § 2 a \ ! a 9 � o| � / --. .-- . .-.... . ... ... ...... . ... . . . � . � • � � ---- .- -- ..- - ------------ - - - � - � ! :) / Z3 {! E� ...... ..-... .----------- . .. . . o e ...� .. � .� .... , ...�...„.... . . .. . . . . � ------ . ...-- . . ..�.....�... . ... . . . . , } ) \ } G} ) / 96 \ \ # ¥ a $ � ) � � © — § ; ) \ \ . � | � . k 7 \ 2 � « . a . \ / K2 $ ) § a � \ a . � / ( } 2 . § k to � a E § ®| k ! : 3 ■2 , � a �k \/ k - _ _ $ co } x) & � /\ $ 1 � ) ƒ £ a � \ \ } { f w \ / } } { _moo ® ) � A L3 g U u 0. c _ y v S cq O s¢ O � ce e b e e U N vl W > 5 Fn� om U 0 0 N m F E Q ae ° U v m O m a 'm > G 0 A Rse C U > > Z be Q n } 94 Z om F cQ tp Z O� en b � � N V N E C �`. ag'. '• C a] � CO O O en rJ N vml V! N b �Ni co cc ^ c a3i a ° m tR u N p � 0-2 a Z _ _ O `y3 c _ _ a.o Q NI 0 � r� r� FGz �av' Fse < 0 A � F o e e } F F F d d 9 3 t t T 7 � > > Q T 7 � T � •J S8 8 � A > m m C `n 0 > 0 � a _ z v �m O o rvv n m m L_ O C � N A > C O n R > C v n 3 om U `00 N F- EQ � V C rya v cece se a o m ae ce Q - D.a C V > > YIK ry o a > c .yyory G aE �_ ogv.a N V o Z O F a Z om o m m O U m h o ff N b b co V O p R 0 s A E 0 U o= a Z C u 6 21 m F F F F S / i § 00 . Ice � ` � ■ 22 Is § § : m § | � }2 Z a ` e \� ! 2 � \ k to ■ t Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- August 2001 Resident 292 $ 10,415 $ 35.67 10.30% Non-Resident 2,141 $ 89,361 $ 41.74 75.49% Other 101 $ 1,010 $ 10.00 3.56% Complimentary 302 $ 1,200 $ 3.97 10.65% Desert Willow Totals 2,836 101,986 35.96 100.00% Da2002;POS AVG RD Page 9 Desert Willow Breakdown of Rounds per point of sale system FIRECLIFF COURSE- AUGUST 2001 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 92 $ 2,680 $ 29.13 5.93% Resident Fee-Weekday 80 $ 3,080 $ 38.50 5.16% Total Resident 172 5,760 33.49 11.09% Non Resident Posted Weekend 113 $ 7,320 $ 64.78 7.29% Posted Weekday 70 $ 4,108 $ 58.69 4.51% IROC Des. PRTY - Weekend 54 $ 2,025 $ 37.50 3.48% IROC Des. PRTY - Weekday 32 $ 1,040 $ 32.50 2.06% Wholesale Weekend 6 $ 342 $ 57.00 0.39% Wholesale Weekday 15 $ 675 $ 45.00 0.97% Wholesale Replay Fee 2 $ 80 $ 40.00 0.13% Twilight 307 $ 12,320 $ 40.13 19.79% Posted Replay 18 $ 75 $ 4.17 1.16% Passbook Weekday 34 $ 1,530 $ 45.00 2.19% Passbook Weekend 23 $ 1,365 $ 59.35 1.48% Stamp Book / Fire Pass 180 $ 7,732 $ 42.96 11.61% Fee Special Event Variable 253 $ 7,538 $ 29.79. 16.31% Total Non Resident Rounds 1,107 46,150 41.69 71.37% Other Rounds Junior Walking 58 580 $ 10.00 3.74% Total Other 58 580 10.00 3.74% Complimentary VIP 16 0 $ - 1.03% PGA Member 58 850 $ 14.66 3.74% COD/ PDHS 17 0 $ - 1.10% Donation 19 0 $ - 1.23% Employee/ Employee Guest 104 50 $ 0.48 6.71% Total Complimentary 214 900 4.21 13.80% Total Round (FireCliff) 1,551 53,390 $ 34.42 100.00% Dw2002;POS AVG RD Page 10 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- AUGUST 2001 Description No. Of Revenue Avg. Per pet to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 53 $ 2,120 $ 40.00 4.12% Resident Fee-Weekday 39 $ 1,560 $ 40.00 3.04% Resident Twilight 28 $ 975 $ 34.82 2.18% Total Resident 120 4,655 38.79 9.34% Non Resident Posted Weekend 54 $ 3,510 $ 65.00 4.20% Posted Weekday 73 $ 4,017 $ 55.03 5.68% Posted Replay 4 $ 155 $ 38.75 0.31% IROC Des. PRTY- WKDY 50 $ 1,625 $ 32.50 3.89% IROC Des. PRTY- WKND 166 $ 6,225 $ 37.50 12.92% Wholesale Weekend 7 $ 399 $ 57.00 0.54% Wholesale Weekday 10 $ 450 $ 45.00 0.78% Twilight 259 $ 10,350 $ 39.96 20.16% Passbook Weekday 65 $ 2,925 $ 45.00 5.06% Passbook Weekend 12 $ 720 $ 60.00 0.93% Stamp Book / Fire Pass 131 $ 5,500 $ 41.98 10.19% Variable 203 7 335 36.13 15.80% Fee Special Event ariab e $ $ Total Non Resident Rounds 1,034 43,211 41.79 80.47% Other Rounds Junior Walking 43 $ 430 $ 10.00 3.35% Total Other 43 430 10.00 3.35% Complimentary VIP 14 $ - $ - 1.09% PGA Member 27 $ 300 $ 11.11 2.10% COD / PDHS 10 $ - $ - 0.78% Employee 37 $ - $ - 2.88% Total Complimentary 88 300 3.41 6.85% Total Round (Mountainview) 1,285 $ 48,596 $ 37.82 100% Dw2002;POS AVG RD Page 11 City of Palm Desert Desert Willow Cash Reserve Analysis for the month of August 2001 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 537,427.28 Variance- Favorable Unfavorable $ 37,427.28 Page 12 PalmDesert Recreation Facilities Corporation Income Statement Aug-01 Aug-01 # % Budget Actual Variance Variance Food & Beverage Revenues $49,542 $43,090 ($6,452) 86.98% Total Revenues $49,542 $43,090 ($6,452) 86.98% Salaries $38,896 $40,681 ($1,785) 104.59% Cost of Goods Sold-F&B $15,581 $13,608 $1,973 87.34% Food & Beverage Expense $9,331 $13,014 ($3,683) 139.47% Total Expenses $63,808 $67,303 ($3,495) 105.48% Net Income (Loss) ($14,266) ($24,213) $9,947 169.73% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2002;PDRFC Budget Page 1 TRAVEL EXPENSE GUIDELINES ALLOWABLE EXPENSES Following any seminar/conference all original, detailed receipts will need to be submitted to Finance for reimbursement. Expenses must be related to the seminar/conference and reasonable. Guidelines are as follows: Meals: One day seminars allow for lunches to be comped by the City. Two days or more, allow for breakfast, lunch and dinner. Detailed receipts are required for reimbursement. Alcohol is not a reimbursable expense. Employees are only reimbursed for the portion of the receipt which applies to them. Any conference related guests must be pre-approved by your Department Head. Tips: Tips in excess of 15% will be the responsibility of the employee. Hotel: Hotel receipts must be submitted for reimbursement of any expenses, especially if the hotel room was prepaid by the City. Movie rentals are not reimbursable. City allows employee's to stay the night before the seminar starts and the night after the seminar ends if necessary due to the earliness/lateness of meeting. Airfare: Similar to registration fees, airfare should be paid directly by the City of Palm Desert. Airfare will be reimbursed for the equivalent of coach airfare. You may use any travel agent or internet service to purchase your ticket. If you use the Leaque of California Cities airline pass, you may use Antelope Travel Service which knows how to process these Southwest airline tickets at a $10 service fee. Parking: Parking is reimbursable when a personal or city vehicle is used while attending a conference/seminar. Mileage. Mileage is reimbursable for personal vehicle usage at a rate of $.345/mile. Mileage is calculated by the lesser of the Civic Center to conference destination or employee's home to conference destination. Mileage will only be reimbursed at a rate equal to that of alternative means of transportation. (i.e. If you chose to drive to Sacramento instead of flying, the max mileage reimbursement you can receive is equal to that of the airfare + rental car/taxi). If a city or rental vehicle is used, gas receipts will be necessary for reimbursement. All mileage is verified by the Finance Department using Mapquest.com. Phone: All business related phone calls are reimbursable (including one reasonably brief (10 minutes or less), non-emergency, personal call home per day, if desired). Registration: Registration should be paid directly by the City prior to the conference/seminar deadline. (This does not include colleg%ontinued education course work which is paid directly by the employee and then upon completion and passing the course, the City reimburses the employee.) Testing: Any class/licensing course which involves testing,must be paid by the employee and reimbursed following the employees passing the test. Proof of payment and test score must be attached. Miscellaneous: Miscellaneous expenses which are reimbursable include: i. reference materials, ii. xerographic or typewriting services iii. rental of office machines in connection with preparation of official reports or correspondence iv. purchase of materials and supplies, when normal purchasing procedures cannot be followed; and V. rental of a room or other facility for the transaction of official business On occasion there are special circumstances in which a person will be reimbursed for items not included above. In such cases, each expense will need to be approved by the Department Head prior to consideration. FORM USED Travelers shall report travel expenses and account for travel advances by submitting a Travel Expense Voucher. You can download the Excel 7.0 version of the Travel Expense Voucher from the G: Everyone drive on the Network. OUT OF STATE TRAVEL All out of state travel is allowed if authorized by City Council prior to the trip or advances. Please attached backup showing the authorization for the out of state trip. TIME LIMIT FOR SUBMISSION A Travel Expense Voucher must be submitted to the Finance Department within 10 days after completion of the trip unless there is recurring local travel, in which case vouchers may be submitted monthly. REQUIRED INFORMATION The traveler shall provide all information requested on the Travel Expense Voucher, along with an explanation of unusual items, copies of any written authorizations, and any other information required in travel policies. All expenses for a trip should be reported on ONE Travel Expense Voucher. Supplemental vouchers may be submitted if necessary, but they must be clearly marked "supplemental" and must be accompanied by a photocopy of the original voucher. The Travel Expense Voucher must show the inclusive dates of each trip for which allowances are claimed and the times of departure and return. DOCUMENTATION Receipts: The original of the following items must be submitted with the Travel Expense Voucher: (1) Stubs or carrier's copy of transportation tickets. (2) Receipts for local transportation. (3) Receipts for each miscellaneous expense. (4) Receipts for all lodging. (5) Please tape all receipts to a full sheet of paper and attach them to the travel voucher in the same sequence as the entry of their totals on the voucher. Identify or clearly reference attachments. Please indicate the exchange rate used for each receipt when applicable. ORIGINAL RECEIPTS NOT AVAILABLE In cases where original receipts have been lost or are otherwise unavailable, a traveler can submit a "Declaration of Missing Receipt" located on Attachment A (at the end of this policy) with his/her Travel Expense Voucher in place of a missing original receipt. The completed form will be accepted by the Finance Department as adequate documentation. It is intended that the form will be used only in unusual situations when either an original receipt is unavailable or lost. Acceptance of the form is subject to the frequency of its use and the explanation for the unavailable receipt. APPROVAL AND CERTIFICATION OF TRAVEL EXPENSES The traveler and the person approving payment should sign the typed travel voucher after the traveler claiming reimbursement reviews it. The voucher must be approved for payment by the department head or a person to whom such authority has been delegated, as evidenced by a Signature Authorization Form on file with the Finance Department. ADVANCE CASH OR CHECK Requests for advances should be submitted on the Request for Payment-Travel or Cash Advance. The Finance Department requires seven (7) business days to process these requests PRIOR to the date it is needed. Advance requests must be approved by the Department Head or his/her authorized representative. Such approval will constitute not only approval as to reasonableness of amount, but also verification that such travel will be on official City business. Hotel: Anytime a hotel is required for seminar/conference attendance, the full hotel fees and bed tax should be advanced to the hotel prior to the date of the event. Upon return from the seminar/conference an original receipt is required in order to clear the advance. Any expenses incurred by the employee attending the seminar/conference shall not be paid until a receipt is provided. Cash: Cash advances.may be taken by an employee prior to the seminar/conference in order to cover any expenses they should incur. Generally, cash is advanced at a rate of$100.00/day, unless otherwise authorized by the Department Head. Upon return from the seminar/conference, all original receipts must be attached to a Travel Expense Form and turned into Finance in order to clear the advance. All receipts are audited and filed with the original advance request. Any money remaining shall be given to the Finance Department for receipting. Failure To Clear Advances in a Timely Manner If outstanding advances have not been recovered within 30 days from the date the accounting for the trip was due, the Finance Technician shall, in the absence of extenuating circumstances, forward a list of those who are late to the City Manager. City Manager will determine what actions is required. Internal Revenue Service (I.R.S.) requires us to clear advances quickly or risk having all advances treated as wages to employees. ATTACHMENT A DECLARATION OF MISSING ORIGINAL RECEIPTS AND/OR PAYMENTS MADE ON BEHALF OF "CITY OF PALM DESERT, Individual Receipts of$50 or less. Instructions: Copy this form as needed. Attach this completed form to the Travel Expense Voucher in place of a missing original receipt. Complete this form for missing original receipt(s). Also, only complete the appropriate section that applies to the type of payment made. 1, declare that.- (Name) 1. l disbursed personal monies on behalf of the City of Palm Desert as follows: (A) Date: Amount Paid. $ Vendor Name: Vendor Address: Description of Payment: (B) Date: Amount Paid: $ Vendor Name: Vendor Address: Description of Payment. ( C) Date: Amount Paid: $ Vendor Name: Vendor Address: Description of Payment: Total $ 2. The original receipt is not available. The reason (i.e. Could not be obtained, lost, etc.) is as follows: I hereby certify that the above information is true to the best of my knowledge. Date: Signature: Department Head Approval: Date: Signature: mmmmm, l , , ! )! w� • £ mmmmml , • - H! - gmmmmm, . .� ! | ( gmmmmmm ; || - ....._.. |�� .......... �. . - - - . . . . ! �, | - ........:_...... . . . \z:�, #- ---- - - � !|| e!|| —® ! �C- : . �. ! �. . .................� - - . � � � � � - eWmmmm= •� ! `� | �! .................... . . Hi § )§ § . . $� $) B] mmmmmmmgmmG ! :.!! ; a f 4� 93 f i jBANAFFAA9FA89AAAAYA£F . . �B $ �EA S AAAAARAABw9AR%AiARAAC A s G • •, gf �e Ill" ••W-A AA p Wp%%R-A idWRR83A8ARWWARWWWWWAWWWF%9%%%R% F F•�( S 7 • V O O O O O O O O O O O O O O O N m O.. . so O O O O O O O O O o O 3000 Oa00000a0000 .. 0 y N N ^ O N N O O N N N O m m t0 O n n N N N N(D(O 10 n n N n n n ON N N N m m m m l7 m m m m m O P P Q P o. N O O .. .. . .... .. O O O O O N b N om mo 1? 19 m q O m o o mom N P m N m n m o � ri ri N ri of ri ri vi m m m ri ci v e d e 6 J U O O O O N Yr m O O O O O m m Q N Y] (O N m C1 (7 Ct e < d N P M o ... . o. . . ... .0 m. ..n F N O m O N 10 N O O N O O{D O Q O m } OI 0 0 0 O C)N N Q fO fO(O 01 n 1O Ql O n O) N m N m m nl m l7 t'1 m m m m d d N P Q O N N O) d N O O 1D� N n N t0 OI N N O U O N O n n IQ n N m m 10 N O m O [ {O N 1(] d Q 10 m N N 10 OJ Q O N 14 N Q N 6 0 O O O O O N 0 12 0 0 0 0 0 0 Oml O N f0 10 ID m m 01 m o O O� � m N N Ip O ooryo000000ryoo00000ry m N N N N N N N N N N N N N N N N 7 R N 10 10 m 0 0 0. ..N N N O T -O.O O O O ...o O O O O O O O o O N N N N N N N_N N N N N N N N N N b -0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O C O u Oo N�� mar�t�in n moo o � ou�iN o ' U Q N d d m O m ID P N Q N d P O N N Q N N OI a > a m C a m a J LL N_J R' J F U a U a J >i N a J LL j m Q m Z Z a y > U V < Za 2Ym O�LL O n b UI N a Ua Nmo.LL u U L 0 Z Z W It w Z5 O J <N ]d J a 1.�11 d Q S U Z F LL F a U f f J Q U N N a l- H N J N U N N N 2 W N N N ar oaao > , >a aawwaaamaaa zA Uzzwmamz�z =wzzz �-zzz 3"� Q 5 000w JKw o U Z O >Z O Y Q O o o o o o o c Ip O z J J J LL' W W J > a U a a > WJ a K U U LL U m U U O U W J U U U Z U U U N D ��"II ry cV E r O b a N O N V] O O ��JI O O N N N Q N N N m ID N 0 9 N > a b faaaaaB� a � aaaa � �� a" aa �a U rnoocaioocai cai cai caiou000cai cai cai oca., E m o � c r c O m r Z � ll �KKKK �O:D: � K� � hK� K¢ w EZLL LLic7ooR3 � am �nmr � o. LLNx ¢ aUa ry Z w�oxx > � UUx> g m ry H m n v n O N 2m N O 10 OI W N �2 m m INO j J~ o n rn o M o 0 o n N o N � CJ m O O M 1(f 1n O n W O (O M 10 N R In N m M b m C6 n m m r ^ O 4n , O M O Z C p tnD-m4i N M QI O N ^M^ m m m r r N N O O f0 N e{ m m tp N N N m MCO u� <OO � O N M N n NOm � O m O M n �- N A O m V A N m N N V 0 pm Q) r ^ M m V 0] n n N p n m N m lD n e Q O]N m N N K r N m (+l O N O a O V N n O1 M O (1 r m O r o n m V ra V J _ w n n n n A n A n n n n A n n n n n n A A m � rpm nrnm o m_ et N .- o �n v vv o � my U m O O m T M m N V O m y N O W V O n M O m n Z n M W m r m m m O C M N ['l ^ M O N Q) N M m N Q N f N V O OI f O! N o y N m O mm (V y f2 ro V Oj N O v V v v v V N v v v n d v ^ v V V V m n (7 O m O O O M O [l O O f n m n O O O O O O O N A IgLQ �2o O mh uo'� gmmm � ' N w `^�m ap' cryM. m o�oSo�N N N j m m v O m O N COI^ m N M n m m N m N O O L O W m C J O N m b (? ^ N m - a 0 O b m N m N n l A 0 O n mNNoun v �nN N ao Q � C V J E DI Q i^r O 3 N W ON O O A O m M O O m O m u M O a O O d O Q h 0 O O N N N ( m 0 O O J C = T [D V (h m O N M d V O V C =N M in w N U W C 0 FJ cn O w n n n n A n A A A n n n n A n - n A n A W m N O < M m O O O m N n m m m O m < <p O W U. O CI Z f0 V N fD m (7 N v N O N Q m (7 D) m(V (^O tO O) {L w Q d cy v Cl M v r" tO� v v uj `cv� .� v V N uj L v v V v I V � � n/v rnom o0o Mo m � v� M m o0o v> o inn A z W o m n m o u p ^o m rn N m m v N v m m o N o ^ D wc7 rnrnn! mN NO (`') m Mm .6C O rn N mm V I N r cc 0 C N N m � N � O '�m m o� M �^ ���oR V N N lD tp h N tO 7 in N R V N m V U Z J m m o < M y N n Al W O Oni_ m m n M yO_ M & N '5 . N cq O M Q C4 CJ V O cc L) M N f ! G t") V IA N M M W m co m N N L N 7 a � H M a N N V U 17 .. LU J ~ x¢aJ vwwi Nw dw Za wwKo_uza)uwai wxZo NwQ U? J ¢ 1 w N Ot ow ww < 0 O ¢ N� � m � x ¢ N aamxywwx ¢ am wwowwz LL ¢ O o¢ z a ¢ ¢ om Wxxwwz X Zl oOw ¢� C cowwomaOxx , w 2w> x � 0 w wO N O ¢ ¢ xU¢ Z (D C7 m X = W � ¢ 1 LLwLL¢ ir � LLw wmO O > ¢> � ww O ( cw vm7 Q o � oo ¢W oaw OO O oow Xoow w 2 ( Oo 0U70 Q¢ C7 F W zmM00(.7 ¢ ¢ C7 F z \ § \\C Lei � � \ �§ v } } - % v ° ~ ( LLJ �\ v \ 0 74[ \ m C 2 / \ \ ! - ] » - : ok � (k ! 3 § f a o � SEE .2 » k00 2 \ ) Lu� \ cc \� \ � 7 / , � / § I ! \\ ° ° ° \ w)§ )\\ ( z k @ § < § % v w R ° O o@ / 2 § § § < ■ j � � � ® CL ) ! / Lu - G /§ 8 § k tr2 ° CC ° ° _ � £ c « « ) /2 § Do ) § \ 0 ) u m m 0 o a mom <om m o �n oom o00000 00 oomoo 00000mu> oo O R. p� O � m �[�D N h< N W Op� d � � S � n SN � (O'J �R OmO < NmN W Z Q O O (+l C7 VOl m < N O f0 M LLi N N N m Oi ^m N - - ^N — — Z:) r r m Qm N N �� ill r V N [7 r � O ON � V O mOr Of �D r �y- CION � O1 ee{ O � m V mhN Q pp N N tpp7 tr,J m O c! m r V d N (7 O m to to ONi n m (7 N Qth t0l V <p V o2 Cl N O� OJ N t0 0I th V V J of WA Ar A A mA A Ar A� A A m .- Ay m A -- o o -- m N rn A A oo �n min A R ^ N O) _Q N N O O V y O1 V V V cN0 v [p 0I O V m ((++VJJ O $ C Y"1 V V m V tnj0 V V V V V Q 7 rr p p 0 -C 0 N CO C r F 0 O S 'OQ S I^ m CIL tS0 lc N (00 V N � N m d O 0 0 r Obi S O CV m 0 1 f9 F W > O `O 1A}7 O O m R N r N (O N V (r0 O (O (7 CJ � m [r0 m m t0 1� NN m n N O y W r r N N N r m C1 m C'l(7 N N N r (0 I2 1A (D N N r W J U C.) t7 N m m N it m O Q w O = Z ¢ (7 '0 0 yy� ^^ m a V W O¢ ! r m N r m d ry Ol N O O O 0 0 [00 m O ^ N N O r V 0 C'J N O r Q O Q CJ Gl N r O N N m O [O m t7 fp N N Z O ? N (n}LU m 0 O Y'l f7 (7N O �� C7 CJ y � OZ ~G Fa0 J z pCa � ¢ w :3 � N N W �rny Amy mRm cm on � m owcN o mm2 i mNm R12, rno (moo ooi.. A �o O CC O Q V V Q O a V V w � V y V <N (m') V �[] t0 OV [00 S N Q N o V RX F 7 Ix 0 LL �r Z W O O m V f02 N S N mm O r 1� O O m 0 0 0 0 m O S N rO 0 0 N N 0 0-N O O W O � m � .- � (7 N t? O (Dm � �(] u} Vf m [[VV w0 N N Or Y V �- m (7 r m Dm Dm U m m m r m r o o.N o o r co m rn in N m o o m o c� o in o o N m o Z Q ot Oc7O � O Nm Nr mCJomO (7 W 7 Z of O l5 m N m �[1 m h N t7 tD 1�N N r 0 V m N N O N R Ups W �' m Jvi ri W mm v .- vi v UQ0 Z O Z 01 > > a cc 1 W N Z y ir Z Z O O > w > > W w S N O Q J Q N Z m Q. W w ¢ W W w (/J w m Y Z U O W w W atl Y W Z ¢ H WW Y ao , d ZI- Oz Z W ¢ W y Ww , wZ z U ¢ a < � W,E50'Pg o Q w O Q 0 �W O U a Q ¢ Q ti 5p Q W Q N Q LL W w� V 7 Y F W CL Z N w d O � Q p W J J Z J w m aN J O � O ¢ J W U Ompw — wNw Omm < Z2a ¢ Owp wwwoma U O O U ¢ W O U m 2 N O J d 6 ¢ DO — 0 = U Z =QODUU W Z 'J-' a CSp ? JUNJFUw2CJ C7 d2 � �OmQZ W¢ �Q W FF Q Hm2LE 3m G f W W6mU � F- p0 Z¢ W 66 ¢ ¢ Z W =� 6 On CD M0 W wo = Q 2 1- I C7 (7 (7 C7 C7 1- � F- F- O 07 W Q UA — a te U) Z O 0 ZUUUUUU Z3 Yi QO C�J ¢ ULL(7 � Q 0 U ¢ OOOOyy0NOaCU� � � O 0 N U EO N a O IQ m l_ O V O � n �(O N t0 f7 fO OI I� N t0 N N 1q(O C O N O N N m b < �N m � N N CVv b N O V O m V v V N V V < (G V OO ep} OOOO p O {!per A V uJ O�m O N(00 r Ql O r m< m (O O1 In N m G m y N P1 0U) 0 c�m� r�m � c9rn m m Z W J U N m m v vi wa' W OC70 v N U. W 0 d O = Z cc C7 41 Z _ n W 'R 1N^� 1n 1cnV " fO (V O CpO O �O Z Ov W ^ O N [VV [O FO O W Z N LU 30 ~ V a F- a O z LLI < x WN 7 � 2v mmm oNi � vmi �o m OLL W v v S F- S 0 LL n O O VJ O O O O O O O N tQ V pp yyyy A m m LO V W N W Q N Z _w W IzZ w y Z ¢0 X m F N W N W H ¢ a ¢ a ¢ w X waw .n J U O Z to Z �N � m > w O z a O a U q FFm Z ¢ Q U �LL < MF- U W O o Ow� � O O ¢ w� OU Z m I a' J f m N y p o m M rn N m Oo any} o 0p 0 0 �n o 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 -CIE N Oi_m U O_ m 1n m N N r (OD n Om V V m O N m m t00 N V N Z m m^ ^ (�] �(] t7 In f") T N K N N m m Z 7 V a m N N y O a m 1A t V N r m m O O Omi tmD N m m 0 0 0 1l� 0 Imo In m O O K N O N m n m m m In N m m m � < Y'1 < t0 1� m V m y Q J W n A O m m O n}} QQ n Of A 1n� m O (n� ((JO I O t0 A . [O < N N O A O V V y an ('I In m OI r c!N N m O (7 m m e V ^ N �y V r V Z V u} f7 V N 'O V W O V (7 V m a � � a OF r r mmv m rn ry m o u� o poo 00 ol�iov mo voi000 oonmoovoioyo FW N y m m O Obi ��-- tm0 N 10[)_m R [") N Cm') O O m N N I(] V m m V O N N V T i(I Y1 O 7 V 'V ON N m m f7 F W p �p �p mn mm pp J _. 0 O Q t7 N m n � O O m O m Q m 10 O N m OI �- !n N m m O W J '` U N O N N T m N l7 O (7 r N m N N ^ N N N = n oV a a J W a 0 = z 7 Z LO WQ m O Z (O Vrn7 �M M� m ommmm[Q� mr mommm- omv mr romen mN 000mo W Jcl)= NNN N "( F _ W �i O Z �f~A C7 a O � a < W M p� N N 0 W m o N o n n n n n n n n n n n n n n n n n n n n n n ryry N mvv o ^ mN m oo � omv' oomrocgi v 2aro coom vm $ ov� O O O Z i�l r v v v m In V m �dIS v e o v v vc m v v LL W a e� ao v v v v v v 2 F > O LL F F p p y m p?? O f O Cyy 7 V f 0 0 0 0 0 0 0L(� 0 0 0 0 0 0 0 0 0 0 0 0 0 0 m 0 0 0 0 N W(:J N Omi �SO m � O rlcdm � Of N LL'1N m � tmOO N N IIq ^O W '- wQ qm N m Cl < N N m N Y M N N m U n m o m r m o o w Za0 m m rnlnrnm inm m r N o m m m m oc`7i I` mm cq v Q W OZ (V m rn C> � N o cn envoi to o`S n v r m � In Ir Q W W N N r N U a(7 W 0 W cc dl w W Q X m cc 0. w p O Z h Z Z W O > w ] ti U N 2 � w J R W w ¢ w N yy In U z (/lZ, Q Z y. Q y F Z Z W U' z w Cc!,) ¢ f.7w � U r U a a � U OZ ¢ Z w dl Y dl� wen Z J p O Z �U�2� w wcl) M, s w y a wiz >w za > wza w� � � a¢ w O CC eM 2QJ LL KfnO W N[L Z W W gZZ � > Ouip W � mZF W w 7Q U 7g � Q UZ U O ¢cc9c)<w 0awW t � mf�O' t o �Q wow w2w 00 N U Vwxx nYim y U W W Q� H � U' Q ¢ w U' (7 W 60O 3 Jp > ~ wUJ Hz 2 7� 1Ja- 7000UUU f j33 ¢OUwca7¢ � �1¢- 0000yyy� ¢ r�3ow w0�� N N O 0 N 000000 O 0000000(O O O O O O N O O O O O O 00000000 A a v ^ •- �u m N N Lo V 7 ^ N O N � cmmm� ��yv m V ^ V O N V ^ .1 f N t0 t7 f0 t7 Oi Q ^ 7 V N I F W p m A N OI r J ONO rO_Nn 7 � N N b Z fA LU e< `c� n 16 r O ¢ O N w LL 0 J W � a O = Z Er OUp D N Z a W o o o b m Z O ZN w J _ b N 30Z Cw7 O a Fa z ¢ WMM 2 N : ENV r B OA N O m O b b cc Q O N N V V b - n LL LL 'I w V O LL OOOO OOO CO �m `nm u4i m m o :2 m �n m N r O r r b O Pl (O 0 N O A N - N Pl OI O b W U N Z W W N W ~p W U w Z Q w a y > ¢ W W N U c9 O y 7a1 > y ¢ ob 0 W WNNF- W W U O a NU 40 Z¢ y (7 a F LL W w W O w 9 0 w W U 0 J 0 000 oo6o t¢- U O OO 0 0 0 0 0 O O rn Ny NInyO F N A Q W o 0 po 0 0 p 0p 0 0 0 0 0 • _0 N y O ass a N r Z C [ND ty0 ^ N h Z7 am a N a 0 0 -0 A V T ^ pj N N F N Q J W p yet 0000 goo m 4 Z Q_ Q F O O O O O O O O O O O I-W }O N m r M y J W ^a ^ r N V o 00 O o O V Z Cl) LLI O fA O p W J U U N N tl IL ¢ O a p 07CUG a y Z z 0 W �. n, oo o� o m0000 m m �o o Z y NWQ n! M w } r n ?i LU OZ Fy ¢ cjL O ¢ r IL w =3o� W N O LU o0 0 go oo 00 of O U. Q y v a LL F 7 LU O U. ZW o O O O O O O O O o 0 W(7 cc 27 7m U ZaoS m00000 m W7 y y a R f aC U UQ j J N U W N fp 7 Z W Z W g W awm� a J W m W X W y w m m Nwc7z ¢ Fw m U m Cy7 0 W C U N N 7 y O U Q Z ¢a y y O LU U Gma U ¢ ¢ Oo 30 m o LL W J W S O O S LL Z O 0 m GW W W Www °D W W J m U W 0 0 0 FS 0 0 W � 55 � 555 O °n UZ °n a1 a3M W r+C en M = Z Z m F Z Z Z Z Z Z Z F Z y mm3 2mmm2.2 . m M J f C 0 O O o N � o �n r Z� rn NN � Si ui of a mo Q QI N ^ V p O O N Of m r O N O O N O r V f Q n � cq m N (D N O> W O O r W m (O CDN r O m ri m F ^ V N Q J w O� (7 O M T m W f 7 N O m O O V N Z n m M y pO� N (hV r r � N Q_ �V V V N V V y O Q Q 7 (O OJ < N (O V �Ny 000 000 O N N 1n N N O yN O O O O � O N �m N m v r m H W S m OJ n o rnr o r CJNOm00 m � J O to 0 r fY h N N e{ 0 R. N W N n N C%i Z O J W U °v° W � p0 Q CO LL W p C7 O O = � Q OUp a fq Z w g a m w m rn rm m o o a o rn a F Q Z N y w O m O ^ Q N W J F F y m r v W 1. O O a a. 2 g a w :) c w y = U mm � m oNo oo a �n Q p O Z � � v v v m �, � .N- OW LL Q v v Ldv o r h cc O LL F F a Z W � mn � MM o 000 �o oo voi N wU mo Nv_n, H o ma r N N N Ix 7 V 7 m U Z Q N m o m m m o d o $ 0 0 m m W O 7Q rm r m nv U z Z O f J W J (A W m Z J N W. w N O a ¢ ¢ w � W�� h J 0 z 0mO 3 �Uw ¢ Z) W VJ 2 tLL O Q1 Y Q V 6 U' ONtn f7N Vl VJ a Oar w 5 Z Z Z Z Z Z LL 0 0 0 0 0 0 n ~ w s w 0 o Qom ¢~Q � � � � c Q � h c J W 2 2 2 ¢ w ¢ W m¢ 2 J Z a w W W w W W O 1 = ¢ o p 2 a d a a d U N N (:i a 0 0 0 0 0 0 r w J w N J O J J J J J J J F J W O Z W LL O I- J N a Q C07 0000 � 0CD wmF0m I <0.7 . r m A a J r M tO O m N O ^ M O O O O O O O O O N N <O < t? r V 7 r n 1� O O O O m V O O Z 7 M f N N ~ u�N! V Q m OQ ou� M m �n m r rug N m � ommor vAi N m m �H mmw av � m mo o n n i iomrm �o N ran io rio Iv O Y rm N � F V N Q J W r O O O m OOL aN CJ V v m !O O co m V V Q 1 �f m Nm O f+l O m N O> m N 0000 00o000 O N O O N O h V w O R N m v Cl) F- W Q (Q 0 J u'1 N O O 1n (O N OI r GI O O O m O m 10 t7 J Q O O3 O N 0 0 <D N N m V2 m O Z OfnO �� Inr O rrmrnm w mm � rn e e W J C.) U r v A of m of A N c m V U SRO Q w LLB V O W Z L O Q 0o IA O N Om M QI N m O M O r M r fp (O A f O Z ww no rsi N < ci. m NN rn onS a �? W � OZ ~a tl a J � ( O L a W pC pp W y O U m 0 m n 0 n O h N AN . (OV O tip ^ O WQ KO M V V � (NO v y y V�j 7 V O LL 'Z 2 N O Im+ O �p O m 3 O O O O O O O p O O N N O N O?O (O m N N O NO < Q D 7 m U Z Q W 7 O O N r [O ^ O h b 0�o m V U N w F w W J ZUZ Q O W ¢ m Z = U W Z w w J > W ¢ W W 0 7 `Z W W J y z y Z K y O W» ¢ m J F_ ZwJ wN Q W N j � ¢ F ¢ S >. ¢ W Q I L E Fa- � a J y � 2 OJ ¢ 1 W (¢j U a =p U U U W U W Z W W � W w V O w H J r W Q ~ ~ ~ ~ Q ~ J a W w Q Q F _ mom= f ¢ ¢ ¢ ¢ ¢ ¢ F ¢ O¢ 7LL ¢� 1- a f fL N U i U 0 V o U U U U V a o a o m ¢ U m <a m m G J F- ? 0 O N O p N O m M N m ^ Q N M 10 L[1 O a ' .L 0 r r m rm r r N c r QNi t00 N < I�C'J m of Z O a M Q am a Q M u� O y m O Q O m Q m O �Jp Q N O m N Q W t0 Q O O (O m Q m Nm Tr r m tD A r aO N O m Cl m O N m 0 N 0 0 Q �' N ^ N QMi N N m m •- 1 m N M M m C9 N 4,i O .- ~ Q N a J W n n n n A A A n A n n n A n A A n _ n U m Cr') N O opf_ N th (m0 (h O V VMI m W r n 1A N [e Q !7 m r m Qv V N y V v V ¢ ty VV N O V M(y V V V y M � q a f3f' o00 0 0 0 om � (�J .- M m Mo o M mMo .- �nN m o000 F W y0 h N � N <'Jr - NO Of mm =O N A m N m V n m m M V N m M O. [Q OJ mNN oOo N <DON � M � m mmN u� M NmM (OON m OO mJ O N O O 2 m p a w LL � � O W cr V 0 Z ` j 0' O¢ N LLy y O O� N m p m To W N M rO m m M O N 0 N O M O y� W W W i F = y} N v �o �mo Mro n ay N vui v LU 30Z ~N 0 O a � a � a W V� y nn 2 n A M N (") ^ N O M m N . A D O Obi r O O 1� m¢N D W O W O�(] N O A h h O M N �y ry p QO Z N V 1� q m Q m (O N t0 L C�(Q {Y m (�V V V V V o� O W a N v v V v `y m V V V 'v V V > 0 U. F W(9 �on og o rnmo r � N m moo vmi � v omrno v�i moo 0 m m v� v m ¢ Q m C M m m Q r N n O N M [O < ¢ m � m U ~J O O N p O sf CO'� - � M O O M m W O r N f O A f- (? N O y m m O m Of r N .- OI O Q r O Q N N N t0 ¢U � a U m d W Z O Z W W W J N > 2 W W O to J 2 W Z J ¢ m W > Z W W Q W O O m Q Z W O W Y W W R N m 2 (.J U ¢ W T d W J Z (' W O 2 ¢ > W C70U � 1 YQ J E 6 d T Q LL D y W _ N dW. O UZa W ¢ = ash ¢ W O X �z V¢- O ^� m'W ¢ W m W `� S Q m d C O D U U W N W a W W W Z � 1LaZm W LL d Up> �y dm2LLO3m y dmQ F j OUaaNw O oo� q a 0 = Wa ¢ O = 000000 O w ME =NZmW 0 ZQU ¢ OO J � 2 (n �(A �i J m �' O J m (/Jlnwwww W N W W LL Fpm 2 � Q w W mom Q LLCA z a LL LL W LL W W LL Q LL j4'ON S J Z Z JmO H J O U J ¢ CD H J0 (JW F J J J J J J J F J dl o Q S U J a 00 U Q m U 2 m 2 a UU UU ? � a (D U' 0 0 U' 0 � O LL OW 2 m ll EO A a CJ N r N (00 CJ O N V N V lOD 00] � mmr ' 00 N � A A A A A A S A (m r 0 �2 [00 O m 0 0 O V V ty O N IZ Cl) cc F W > � m NOl r mrnoco 0 0 o n J rn � m0 m � o �n m Z O (A O tD V N N m Yf_ N O W J U N w � 7 Q 0 J C7 a W O = Z cr flyZ W /R W O N N ry 0 0 0 0 0 N a Z Q VZ Q O V [+J m �pLLI J H H w oz H a. 0 z ccn2 a wMQ 2 W N 7 0g6 , o g3 oo So 0 O V v V V W w V V W F- CC O LL ono 000 �n o �noo �n �n N 1A O N 1!1 N N m N r� Y'1 r O N t0 O O O tom+! O � m W W W h N y Z W p W W O U N y z w aW y O O c7 2 ¢ F- w < Qp ¢wLL LL Z N W W 0x 0 LLai- w ? a �nw ¢ x r J 0 o w o o m ¢ o o � 0 - O m n R O t00 T N t00 [O m N Z 0 Z D ¢m o Q O O y O O O 00 O O eT mm m o g m n }} N N O m r LLJ N Q J -L Q Q O N N N N m n O Q N N O O C6 N m M 2 R LO < V N V 0 0 0 0 N ^V z O cn O Y O O N O W < N n (O O W J U U m m m N cc 0 a W N (OgUG oN Z OOC m m �noo 0 000o m n r Z lW �W o5_ 3 S W J = NR w } rn o V O Z r 4 Q a. O J z w � ¢ Wy 0 ta U N N N N p O O t0(J yO-, O O m ¢ Q O a F > V cr O LL rr o O o0000000 o s W N N O O N N V N cc cl cc=) O q 7 m U ZQ N ��Ny N O (Qp OOOO p w D N N O] V N O Is U w z = N W m Q W W z co W U F Q N Z W N z w y 0 W ¢ W ¢ m W U Z W O > W a N J d Q Q ¢ W J j w W z X �o m 1 w M z ccw Q w ¢ O O z N w ti m Q O Qw LL W m o w w `Z w w w 6 Z W U' C7 Q Oo W C7aOaN ¢ Q V. 2 Z z r Z z! z LL a F a r z N 2 ¢ ¢ ¢ Ow � w O = ¢ v CM CO N m CM CD C(L CD(O N O O OM O N V] O m O N Iq O m O [O m r m M � LL] � Z O M N M m N N N OI Z Q m M }W O N t0 N a ,q m N N n (O'l w N P N O) N (O VJ n n N fl F ^ V N a J W n n n n n n �n v v r v n n n n n n & n 0 0 0 0 Q� O NN Z O y N r m m N y y � m N y am- m �Vy' <mV trD t^D N �m[l V V V a N R (y (�N m N V V V t^! ¢ V V V V V a > p W OOOOO N pOO N C7 {O'l pO MN mN OOOOOOSO �Op OO Om yO }Ui O O O S s 1� fO m O M O M m O t0 T N c7 N N tp t7 N m (7 < n V O n M n O V M O M N h Z �/� F Q V_ 1� N N C` n ^ (D m nn N m (y Ol m O O O O w O } m 1e � K N 1�01 m N Y� ^ N V f0 1n m oC � O a w U 0Up N Z a. 02 o orno oN � o {V St Si Go9 �n � M N min mmoono � 0000 m m F O Z /nO^1 n n W (D Ol H NN W J = N} N r O (O N V V w � OZ ~co O Z it ¢ y = p n n n S n n n n n n p n n n n n W N C.) O O O_ O O h N O �_ y �Vy O V V V O O y O n O O O ��p f7 O O O Q V V V `V V M V V V V V ON IL > V V m O LL F 00000000 0 0 0 ornrnu-iv o0 ono 0 00p000 a Z W O O OIAO N N m mv! ^ m � m N LUcl cl m U z4 o0o ino o rno e o 0 - - - - - r a o M noon vnio m000 m p s W R r N N m N a0 m V O Q N ¢U 7 Q U Y W p/ LL J U) a M m Q JfO7 Q}¢�zU2LU O ON J Q ] �zO QFm UaUW oNN LU a a W WdQm¢¢ =2O N U a � ¢ Uog U w7axzU ¢w a n , m wm ¢ 2 ¢ W aO W WFD ¢ Oz LUCOw 13 waOa ¢ � J � � O D mNRF � � m ¢UYY Y Y Y Y j dugO¢ WKwwaJ¢ NOZO O U Y Y Y Y Y Y O U i- Y j > } Y Y } Y Y y y O ¢ O Q LLI W W W W W W W W J a ¢ J a W W W W W W J a W W W W W W W W W W W W J % = J 6 6 6 6 6 6 6 6 J NU' Fa- J 6 6 6 6 6 6 la- J 6 6 6 6 6 6 6 6 6 6 6 6 H � . U Oaaaaaa66 o Oo o Oa < aa66 o O000000000c� ao 0 0 N 0 0 a C7 ¢ 44 ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ !- c7 N U m A 0. J H o o NmN I t l d V 1 N o f o o m o 0 0 o d O o 0 o O o o O y m O o o O V OA O p o 0 0 0 0 o� N O M <mI� nn_ O In N S N N rm N S N V N h m O O N O < N CO') d V N O O Z a C'J C N O N M < N m N O d N N N(h N [O 16 m N N co d m N n W N Z N d N Q in (2 y m d T r [D Of M T W O O m i� N V CD m (7 n V 0 CJ Q N CmJ N M In 0 4n (7 O V m O m N } tr') r OI 0I N V LL1 O N �- t0 M N N a J W mA A I��JII N M N O] A [A m p^ O d �^p O 1() N pAA r D NA 1(1 C^J m O O O A Z0 r N N ! S rm N O CJ r N d O N [N'!_y V.- V M 001_tM0 O O O M m (y N N �- y N 1n N y f V a V I Se � eLgLgLq SSSSSS SpepSS � � SoSSeA n m f O f m d 0 c O O h M [] r Q CD7 CD [aN m f9 7I M N^ o r m IA nr �O ryQ m O OO O Z� I� rOS O M C- O J M M N N N d N R 70 Q LL O JO = Z ¢ 7 N a. W OR mmNm M M e oc� � mN doom oln o0o dM Inmo In rno �� NF (� I� n N orn p e d 99 m rn Nrr d �A r InZ O x ,^ O pI I[] <\ O Y} GI N m r W N m r N m M IO r(7 N In d CO W V=' N{{{}YYY d 0 �- NN � �' � m 30 ~ ~~ a Z N 0. 0 Z � CL < wM ¢ LU On g A A A o A A A yA . A. A A ��pp tOn WA A A LLI N U IA Ne r f" tm0 [rO I!1 r N O N_ O m CJ S CJ 8 0 O> d O N N O O d V O V N O N< Q O O Z m f0 d O> V V In M m d N In m� In V V d C 9 IL W Q `y v V tl 2 FE LL W O O pO O 01 r d r m m A O t? m M 0 � � M � N � m �- r IA N N C7 N r N m It) O 7 U Vol O m T p� m ' O m r O m OI d py I(l O M m m O I NS m d N O M mm m ryN O m d Z Q th d r N N [") (? m N N r d I[J N N ��,,, W O N m N M N m m m r N �Q > I a z O m W a o Z a W U. ¢ Q <~< j Z 3¢ O w J XO ¢X � Z W W w > 6. lnd ¢mwh W N W 2 W mZQ F-(.7 mZ< ~¢ ¢ ¢ U ~� 2 W 4J W zo ZO w p W a z w O LL m w z Z Z U m W Z Z w w a w w U a¢C7 0 y Q Z LL W M ¢m ¢ O F `Z ¢ W r W WU 2 — J LL a Wc7 ,�, U o� �w Ow ¢ ma � ¢ O rn mOma. ¢tea w W � m Q ¢ ¢ UZ an XF _z uZi <¢ OawwOQzz w ¢ ww O= w ? mN ¢ W J G. N SOLL W z� Q ~ U0LL000 ¢ W ¢ O ¢ JNZ w Q w a Q ¢ ¢ ¢ ¢ ¢ ¢ a a 0 Y W O o Y m¢ m J J U U LL LL w s F O¢ J ¢ m L a (n w a$f F- nl Nl .d mee ai5 , ; NlU¢ U � OC ¢ �Q � � Mp 00� NZZU W W W l� LLl-mz N C Z F OO<7CD (Do 7 H 0 <¢ < < UmU ww wwOwwU' ? ,, D� omowoaa M N A 0 0 0 0 0 0 O 0 0 0 m m � m N v yy A S O N N m m ONi O O Of O O O Of N 7 V VACV A�AAp O �my mmN mmO A O d N V V (Ny_Grp_ O tNl V N V V v V 00 000 CJ S 0000 N 4mAG Om t00 m � Om O O S t0 O N V N cc F W A J m N m Q VI Q I(J m tn0 1(1 O] r N O ( O 7 n W �m N m m Q D N V CO LL O = Z cr 0 a N Z �j W O � � mry m o � n �no c R z `c9i `�i_ m W J ~ F ^ m W F d z R a < p y m fr W y S O O < � m Off N O O N O G LLL v v �Y W S F- w 0 LL SBiSoSvoioSSo r A n N m O O N m m m �2 O v (O O O �O m O n 0 N m �n r < N N m V V J Q Z F W H UU¢ ZCQ7 ¢ ti W ¢ � Z N¢ Z ~ a Q N Z Z r O z m N C X W K N U U _QQ tW/J W I Qz W O J ¢ Qma w � z3 ¢ Q ws dh UX ¢ J -� U vy A p" J o 0 0 0 o v rn v r r o 0 0 0 0 0 0 o m A o 0 o n m m min r N O m N pO O m N O < m n Z p N O O Ol O m m n N \ Q n 1 W 'i O m m Ip O pS yy �n < 1 {i .- a [7 a'l N Q J U o amo o N o 0 0 ^ o 0 0 0 o m rn m o 0 Z m Lei v a� m .- yy m ce n n Q V N V 10 N N t'l f7 I Q LU 7 p F O O (7 O th pO pO m O mmm N �m1nn r O O O O O O O p m W O O Q .5L V N N m N I m F W C, m p J n o r o a o o m m N m r o m aw rn m o o m In In o o Z FQ m r o o mcvim min .- min n U O (q 0 n v o w n M{pp m 'm n 'n W J U U m O O V OOi f�0 V N V o� N N (7 pj N O ¢ mO a O = z ¢ O y p a c W O 0 0 0 N a7 amn O o z O Z N (Y [7 V O S O O t0 C7 O N W J F = N Y N O N N N m m N N F � O Z F- CW7 O Q fta a W M 2 ch W w = Lu U m p o (A . ^m o 0 0� 000 oom � o o mym m it QN V V Y] O 10 (m+1 ir cc O LL W CW7 ouoi_v O m o o invmi Lq o o 0 0 0 p. O tOD Q m � m U J P. O O N O (O O O N f 7 N V f m m t 7 O O O V Z Q a m m O O O m O N N tmD (D W M W n N O O cc U U Q CC7 O N F a a W N J LLl F ¢ d U U w O a a Z � ZUwli zw zWO Wz�ZLLQ'zyw J¢N QWw QZ < LL QO jo- w Z0w LL oumNa � Z m ia LLWpJNZw z Z 2W Z fO yO¢Sz JWxW LL LLLUJ i JJO VZ WVN p O 3 NNaa W W w a< W QO Q o � Oa n pmmommmmQ Page: la DESERT WILLOW GOLF RESORT STATEMENT OF CASH FLOWS - FOR THE FOUR MONTHS ENDED OCTOBER 31, 2001 CURRENT MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME <LOSS> $ <130,764.26> $ <1,234,049.17> ADJUSTMENTS TO RECONCILE NET INCOME <LOSS>TO NET CASH PROVIDED BY OPERATING ACTIVITIES DEPRECIATION 65,803.56 263,214.24 ACCOUNTS RECEIVABLE <85,248.05> <49,437.07> INVENTORY <141,187.42> <94,134.93> OTHER CURRENT ASSETS <615.21> <37,131.85> ACCOUNTS PAYABLE 248,925.50 480,773.49 OTHER CURRENT LIABILITIES <48,859.40> 250,171.66 TOTAL ADJUSTMENTS <91,945.28> <420,593.63> NET CASH PROVIDED BY OPERATIONS <91,945.28> <420,593.63> CASH FLOWS FROM INVESTING ACTIVITIES CAPITAL EXPENDITURES 0.00 0.00 PROCEEDS FROM SALE OF ASSETS 0.00 0.00 OTHER ASSETS 10,789.42 43,157.68 NET CASH USED IN INVESTING 10,789.42 43,157.68 CASH FLOWS FROM FINANCING ACTIVITIES PROCEEDS FROM LONG TERM DEBT 0.00 0.00 PAYMENTS ON LONG TERM DEBT <27,978.84> <110,386.19> CAPITAL CONTRIBUTION 0.00 0.00 CAPITAL DISTRIBUTION 0.00 0.00 NET CASH USED IN FINANCING <27,978.84> <110,386.19> NET INCREASE <DECREASE> IN CASH $ <109,134.70> $ <487,822.14> SUMMARY CASH AT END OF PERIOD $ 148,027.90 $ 148,027.90 CASH AT BEGINNING OF PERIOD <257,162.60> <635,850.04> NET INCREASE<DECREASE> IN CASH $ <109,134.70> $ <487,822.14> UNAUDITED- FOR INTERNAL USE ONLY. , m 'J F o N T o M O O O n N o N N m m r m O O O o h o O M j O m O O M V) N O r m N N N m O O O N QI O lD M m N V 4-) ^ O N V In O N O) O M ^ V ID N N N mo V n mmmo d O fh C/ N � co r v m m � � tom ypm rn m Al O V O r ^m V O Q O O ^ of V O N O (D m O O [7 Ol al O OI m N CJ o N r O O lD m n N (h h N W r O N N T 0 U}F N N y N V J w n A A A q n A A n n n A n n n n n A A A O m rO m r O v iD V V M V �N N q O r M N ON v � V V m O th Q V O N NF pj v v T , rJ < v � N N e{ V v v ry` N n > V V m M V O m O O O O O O M O < V [D M ^ m N O O O N O Y'1 n W Q m V O 4n 1n 1[1 ^ r N r O N M r 1A N N r m m W vmi my m IN ui CT N� OM zz � m r amlM m ^ T n N Ip � N }m V O C7 O a r O y l p r m r v O o r v r m r o M m n >y m I1((]� m (V r N [O 7 r r � N m t0 O < N m m 9c (p aJ M n N m N O m O N N O] m_ O M M !p N m o C Q Omi < m c7 n n m IO N ^ m cgi N N N M V C N_ O V N r O F�F y W LL J >Q O d C P I IN d m V O m In N m O n O O r O m vmm Wmo N my Inu a Ol J d WL 0Wm r coo n L EV1p lql Z C 0LLI ~J a yW n A n n A n A n _ n n n A A A n n n n A a mmmoaon M rn n o eD m oMN ly to lnv mm rn mmM o O w L V O Ol [p Ol N O m_ N M O (rV (7 N W_mO V N N <_m v M n Of �_m r r 1[I O N (L f� m V N Ill oci � M V V M F m T N V V V V 01 V r Q V v wV m v V V v O Gl L LL LL Z~ O N O O O O> O m < tD IO O tr 0 0 0 0 Vl A Z W o on min oo m m r o .- oe N or Inr m t7 w(7 nh O a n o m o v mm rr a it En om � cor al n p 0 m o o ai r N o! m e vi ai m N m o In a0 V R r ^ N Mm N ^ N N N N U v �J M r ulom rr o o min m mm my ? m m (Or N A Z Q W N1n n O (") M T r NM 01 MM cc r yym r of v < O OJ CC L) 1� N V OFO M V' r to 0N v 7 Q N N O N N U LLI> N w J J n ¢ H J O w z O ¢ U w w N zwzw ro z JQoo O LL ¢ az p ti = Xw NwwZ ? 2 z W lu wz `"¢rnwzLLIU. Ulai O ¢ J ooww ¢ } W Xxw_ w zwwX ¢wmmw � nw. Q Z W W W O LL w 0 CU7 J l/) 0 Q Q US O Q J Z O U' ¢U d X 2U t J Q J a w W > m N W wU' I L ¢ Q ~ Ul Q? Q N cc M M U J Q ¢ Q w ^8 .q¢ O W 4l W W ¢ Q O ¢ Z ¢ ZJ J W F F O }' U~ u" LL' w F Q. UUN W tiLLUO W Z 0 (D ¢ J J Z Z J ¢ J Z Q Z wU � ¢ woa0 O Ooo O Q � ¢ ooW o Xoowoao ¢ OW O W 2 W m02ID = 0 !- () UU H C) d QOO U' U' F W ZWmi UU' m < wo F z «LU ym 77 G 7 ( (/ � � � \ ` \ q % ` v LN ( ` ` e 2 ( kOct k 0§ zz m \ d � Ii - a & 2 ` ( o « f § 0LU � - ) E « �§ � ~ | 0 k\ / § a k § § , ! $ ) \LL ` 2§ §}° \ } / ° ° } C� � �o 0 . § §� ) ` § j@ cr ° ° 2 % j ) ( ) k \/ j § _ § _ LU lu k § & ) \ ® uj / / O2 ! ° B ) _ ¥ / \ \} / ( \ 0 § \ ) } A -�f o o a mo .o imp m m o �n o omoo 000000 o1��no 0000 o m v� o 00 a(J N T V Z ['MlN <c6 tO N.- ^ p Q m N N ❑F m r r m r N 0 O O m m O O O] <O 1t�0 (p r N O m 1[m� O N O V N O 0I m O N y l W O O J 00I r < O V N m N O IA < m LLm"1 N Cr'J O O 1(j O I� m lmD OI N O y m m N Or GtOI N N N r V N m N N m V f\ m co N N Pui A A A A A A n n A A AAA A A AA �p A A A A A AA A _ A A A A H O V m m O r N V N (� O V C7 N O C m N tl1 Om V m O y O m ul In O r N (O In O V V �!] m m Q r m of c� v v ^ v c o `P v v v Nj v `Y v v Q G OFLLI m m Mm � ncgim m om uoi voi oiomoovOi om o o � voi 000voionoo $voi y (� r` m 13 Iq Ln Lno Lq m <p Lnr cor Io .oIRv mInm n, r "Imr ^ mrn N ❑ N (' V ^ V N O N N ^ m f")fD O O] In ^ N M 0 � 7 O m M cc W mit } c �❑Q ^^ n O N O nW NmN M O r^ Z 5) Lu V] O M N cm O WJ V N N N .- N N N ^ A M N LLo CL y Q y O = z ¢ fL Z O m N ryN N W ey{ O r N O n V O O O O V O O m O O m M O OJ Z W y m mO �lJ mmn 00 mQ * � v m O O O O < O O O zW Lu �i OZ Fy Q Fa0 g z a LuD 111 W A A A A A A A n A n A n A _ A A A A n A c� n A A A 2 m m M O M rn � ON`y o ^ o `e�omom.� o � v c omp ¢O W W Z c � v o V V m m o m m ^ [p O R p y M < O F < T Of V v V V � M x > V V m O LL z F T r r O N 10 O (O] O O m O O O O O O O O O p O O O O o O O O O r O O O O W O N O (J S O m N m N �❑ m M o Sm^ my m (� of^ LIO ^ ^ m m Ix 7 ^ D m U ~J N M M m M m M Z- Z Q O m m O] N m N r M M N N M m W M Z N (Y m L VJ N V7 O m M 1n N m Ol t m O N O] N r Sf7 (qv e e Ne rM ^ to UQMOO LLJ 0 Z O Z °a > m a N ¢ a w ¢ ❑ ❑ ❑ z n z z o O w > > w w U OLL W O J O U Z W UNl e¢Ot1 W yJ QO J QSSO OQ 'c ydZOsW O 1 ' W W V! WdZ f=Y FU W WyW O Z QUZ S O mw m Z W❑ Q J U W U ~W W SU❑ SOU= Z 2O WJ JO Q U Z ZU O VO tiWZ / 1— � LL O 0Q Q¢ w NOO JE sJ F� aNV J M 1 W¢ 00 N JgUQ ¢W QWU 0n00 WW V W W 7 OJ0F¢ F W Ucc cc It = Q W ¢ / WJ ¢o0J W » � 0000 O O o 0vcc 0m ¢ 0 ¢ 0. a LLddW ¢ N Zz Z00000U Z33 ¢ U - U o � UF0000w w Q�2 Wn xoO oww 000000000 0+ M t0 N O N 1� O O M N m h m � Mmrnmm � � o �o < m N O m m m O O N t n N n N tl A N A A A A A A t7 C6 Oi N V V v V V A NM M N ^ N ryN V 0 Cl) W cm A J m �q Mm O N O W T('rJ m r N N " N N N Q 0 W F v o W J a v W W p /q O O = 2 Oy1) a 0 O W < �0 O O N O O b O Z O � � K m N W J = m N mV W O � a0 z ¢ a 2 Q WCO W mmo Noo`rne Imo o O 0 = N m m LL F � v W OQ Cl m N O O N O O ^ ^ r N qN � V N 0 0 O] (D m O {O N C] m < 10 N W W N W Q M W 6 F W UI11Z ¢y l! �J W W W M fn H W W 2 CS Z W j n LL W W U 0 p O U � [nOO ¢ InJU t- 2 m v A J FU UI [m0 f0 O C7 V N N IA O�W N n m n m V d-0 S N m m N V N Z?Q m N N ^ fQ O O O OO Nm � O mm co N m m m Iq �r I N NCrJ � � Y W r V O O m V N V h V ID (n a J W n n n n n n n n n n n n n n n n n n V n p A n N n U N N N Q m �V �m(J O N N N S C fO�J O m (N O V (m0 V V N N N R O_ V)< V r N m t0 m m m oV — V N N N ^ V m V V V V V , v V V V V V V a M O LLJ0 m T N r N m ^ O r O m N O N <O O O N O m O N O O O O N m ^ O N N Ilit�l N V N �< � N �<D m V K m m m 'Ir r N M O (O CN ? m m 0 O W m ^ ^ M Q W cc cm y C Z O fA W Y 7 w 0 v n o m e m Itr ^ N m m m 0) wW J - (~,) .'In m r to � n N � NN _m biv mmm h 7 W Q W 13 W N O = z ¢ C9N Z Oaf r r N mN o r v ocvvro nmoomg0000� �000 F W a rn yN m m mr a in O O O . m a m M r 1� l7 [ N M W N^ O H = N Y m �' ai m of ci,6 o �v N N^ r5 om LU CC Ul � Oz ~¢ IL 0 J z USy W W n n n n n n n n A . n n n n , n n cc W [p 10 N m m m m M m o r m V f0 m m O O N 0 0 0 y [O o o N o t0 m(O (O o m o O W U o o r N ^ ^ m T n m v�V m m r o m <O o v r M o d N m O m N m Q N N V m m m N r V N 0 T Y O N V m v W r ¢ VV N V V V V ^ W Q V x > x O LL Z W F F N C N m O O O O O O O O O pp O O O O O O O O O O] O O O O N N O O m M O�m r �- N N r ID cl i m Otm m O arN N cr 0 m N m N V N O m ^ N m N CC_ V D m U r r m m r o o m o r v v co N co 0 o m o 0 o rn e m o o N o m m m m o N Z Q p O O O m N [] O O N m N m ] N O (p m N m O O O V t 0 N Z N pNf m m N ^ O N m m C7 V m r O ^ N O m tD N N C.C O O N O M N N N r N ^ U O W ^ J W W W Q X ¢ x a w o 0 o w U O LL W O O ¢ W Z cNn cn r FM R h Wd Q W Y O J d !- Z Z J W 7 Ow W O 6 Owaf U H U d ¢ � Oz ¢ 2 W U H Q Z U) W G W Q W t = — W QmQ QF- ¢ � HH6. Q W F (� to m m ¢ > . Z d W UMQ u U)W Ny } 1= �. Ul W 72 � � d O0 - - W wO J W Um¢ w J 0 0 U 0 ¢ O D U� w U O¢ o�C , U N O O 6 ,w a[ N � a � � w�o � J w � M F w �w U0 8 M2 W m N U W W Q2y:. ° (7pQNcio W QUO �d J0 >~ wMU �UJ m S (.7 U' U' U' U' 0 SHF' � W ¢ m —Z � QOU2 _ z W JQ OgJF- W�� LL¢ = j j r j U U U U U U ti j 3 �0¢ U LL (¢7 �g OU H o o 0 o m ww m¢ ¢ �O m w ww�m N N O O 0000000 0 000000000000000000 0 0 0 0 0 00000 _ P m A a O O O O O O O G P �� � mmmo L e m N N m {p q 0 N � y r N (A N lPD N A V r O M � O LLO'1 r N .N�l O Q OJ R1 P A P fp N N N Q P O m O N V O M W ~ Cm ^ Y O 0 W O^i_R1 N N N N t00 Z (n W F N P O O O W -1 N .o P N LL pfA vi J W (S O = z ¢ U 0Cl) Z a OW o N o o ^ a Z J I = N N d O Z ¢ IL n. m z NN LU w 60� � O of ¢ O cc m v N V N OOi N O cc O N LL O tOp OO OOO S� P V yj .�( 4. N b O N N W U Z N W a N W y W W > J a W W W 0 w pW, � roU O � - � � 6 H u d U W o y 0 0 ¢ w � 00 F U 0000660 O O totoNNwow f w )� }° § �� �� �� } CIE ;; k ) \ In C �B § § m § \ ) 2k * U) mo 2 k § § 0aw ;§ _ ( § / \ � �§ m cnL 0 } g 2 \ ° ` ° § $ 2 2 § e ) zb � I§ B� w/ ° ° } ƒ LLJ k LU § k( ( G ; cn ~<19 \ }$ § 2 § § § § / * m ()) §(/ \ \ / /\ } k\\/ / \ / / / v m ro J F LU D C S < n m O> N N O O m 1 Z 0 C'J N q (O In Cl V O Q m N V cc Y W Y N N ch < try N (7 tp F f V N a J W n n n n n n n Z (m�J (O d m m m N LO _Q V V V V V V V m cc Q m r m r Ol O O O O O O O (l LU N O N > v O to Cl) Ir W m W O m m mO ZLL, OO I W J U w LL J a N O = z C7 con 0 a W OaC mmSm e m00000 m c H Q -L N N W m m N N N W OJ D N O O Jc F HN N W oz a 0 J Q IL y y W W orn �n �(a] o �i mo . . oo m r rr G m Z V V V 0 N m {mD_ w W a It O Z W ppj m m N N O O O O O O p N W rn o m {my m C3 I m— N N V =)m U J rn o v m m <n o o m o o m a z a O N m m cc0 :3a U (n Z O_ F J y W � Z J m W w 0 Qa ¢ m w Wo � uwi J U) ¢ O0UUw ¢ 0, w O z w< = LL O m Y Z a U d O4l4lfnwww 1 �_ ¢ � W y W 000000 a �"' w¢ w 0 o a< .= � � � � o URI o 0 j ul ¢ x ¢ Q ¢ ¢ J W a ¢ �- -� Z mwwwwww o ate ¢ o G 000000 a O F W J W N (D O li J J J J J J J ;5 J W O z W W � F" J N 0 (07 (070U' t0JOUOU 0 F OU=' yar0¢ 0 C05 _ r ro n M [O O Ol N O j Y"1 � M O O O O O O O N . N m O O OI T �— V N O O O O O O O O N (O V m O O O tO O O O < Z O N N M O m Z D M t7 N ^ N V Q m EC O O M t+l r N m m tl N r T ^ O m O V Inq M O m O K F V N Q J W wA r O A N fO O m O N n M (O O O M n m m V m O O m Z N C N l0 V V O r N IfJ O1 N (y O O C a � v tl V cc a r F W O O (V m N O N m IQ N L R N O G N G'1 O1 m N 1�m CJ CDD O �- O IA N V N V M M a+ms any N D � O m M W Cm p J Q N O m N (Oyu d r m OMi Om O O O Z O y W mN N I V f") r N NNr W J C ~ v `� a m c.i r of N v H n O N W Q N fn O = Z a= ¢ 0U p a y 2 O¢ Nommo �n m a W � Oz ~ � a ¢ ate g < yy W W n n n n n n n n n n n Q W W U � o m v�i v o m m m o m o rn n e O p S Z o v `2 '� m v_ y N cy c9 m a = a d `Y f v v v F ¢ 2 > LLI F- CC O LL Z W Ui N r t0 N (D m N < r OI YQ 'R R O t7 a: Q Qj N f V O Ol y D m L m U z J n o o o f m m N m M n o o m o rn n Z a M m m v m aMn o n o ¢U � 7 Q U N w U 2 UCO w z z' ¢ w z z W > j J y W < a O W > J ¢ ¢ R J LL r W w w w ¢ w W > ¢ F- ¢ Q � ¢ w 5 CL d � lA � J J W z < < 6 < U Z < X � Z ¢ ¢ J a LL J Q] J W Z_ ¢ (7 J ¢ ¢_ J Z W f' J I- W Q �r �- f- � 1- Q i' J pF- w wQ Q f' S cc ¢ ¢ f- ¢ ¢ ¢ ¢ ¢ F- MULL ¢ �i Ka r ¢ y aU M U ~O 0 V U U V U U 0F U w 2 U � m ¢ OF U v ro a J O O O O O O 1n N W (D M m c O O O O C N m N cli lc d d m m m Nd O N - W ^^^n1z coN W Z❑ am F Q n�Otl NN aWy N S V y My �W Onf N r m M A r W N d N N N Of (7 �O O to r e O M O (D N O d O m N O Y T 1 O N � m 0 O O O N m N N M N F N 5 W n n n n I At n n n n n n m (O Ori I� m O m O m z y N T c N m O m W N O W < O (W ty V V r Q V V V N M V 1p' Oi N N V V a OF o 0000 o m N W W m m �n ono O de m c2 �o W e o000 r p O n r (O O r N N W W M N m A d n O b W N M ty t7 N W Of m N O) d O N O 7 m M W cm G p J In O O> pp N O 1� W N - m W O m n OI r 1n pp n O n N J Q cc — d 0 m M 1� M W c N d c b W N m m N W N Z O � W W N N W O) O �[1 N h W O W J a F M e � lvvr m �o� v .0 m . . i a w M 0 oxZ ¢ �j INR Z. O� W ino no m � drnd coN yW� n <o(ep m nN od � d m oon —z O V W Q N N < 0 (OD O^O O N N m Ski (h < r (OO m tr0 f A NV �-Z (a (n; cl N N in [D N d tD' d d OI m d W O J cr N V CLU 7 S 0. co co W W n n n n n n n n n n n n n Lu W U (Ny ov oS a °i c"+> ri cmv cnn �n m cyi (�y � rncmv m Lu 0000cc O = Q V V N N 1� [O O 0] V V V ' LL r ¢ V y W Q x > cr tpp d 'O 0 0 0 O O) �(I �[] d O) O Ql m O N m N ^ N N m O O O O LL w ul O rn m M m o � R M in n m m� m Z Q r O O O O W O N (N7 I� 00I d [m0 W Om1 T O O ^ m d LL'1 O N O O O O W m_ M 3 O CIZ N O m M Of 1� N d OI m r ! eT N N N m Of d N ic U �Q U Vl IL W = W N 2 M O N > Z W W m J G W 2 J N w > >Z W W Q W O O p m Q Z w O W O 2 2 w p U Z U U 02 m w W �+ Oz ¢ ¢ o Q ¢ w o Xa ¢ O m w 3 w m Ir w w w LL a w o > LL a can US 0 3 m LL n N m w LU w o o m p � a o = w ¢¢ o = 0 0 0 0 0 0 0 =�z w w 0 Z < U ¢ OO J � SN � [n >i J N �' O J NNNyNN(Sn J N ¢ �¢ N W LLr pmw � Q lL H W Jm p (n Q LLCJ 1; 4 LLLLLLLLLL LLLL Q LL ��UJ f J O U J p a < F J o o W F J J J J J J J F J x p LL a U O W Q J W S O O J U Q J W a O 0 0 0 > O 0 0 0 0 0 0 0 O O x d Z w tll C7 ¢ 2 UJa f (� Uam U ¢ m F- l7UU ? H 0000000 w� � a N O O O O O O O O O N OJ N O N O O O O N [7 N r (7 [D ('l O N V v r cn co a N n N vvr � mm v .o e V C � � O y (+l V N O N � oA r vAirn ooyoo m �i O [O V � V O M W i m N o 0 o n o J O y W w � OV Nn v e Z O W r W 0 fA N Oxz Ir C7 0 0 a 0 0 W N� � � O O O ^ O O N N Z O J F x N W � OZ F o. 0 z M IL < 0 � � vCV `� � o � '3 `yob v�Ni O x I- W x ¢ CC l L N N O .1 O N fO N N � v! W W W y y y Z W O W W O U� Q U < p W W y y W O U ¢ F U Z W O O OJ W O U" 2 x > 2 Q < 6 y y Z O y 0 ¢ iD w J 0 O O W > > > ¢ W MD M O O O y O O a ¢ O C7 F O 0 ~ «ui , , ,zn cc \ ) « R ( « \ ° \ ( f cc $k ® ® § ) mf /q , � , � § ! \ § 22 § e o = z G ( § § ;§ „ � � � 2 , , ! ( / §ƒ / �§ 2 . § ) § § AA 0 ! J : : ( ` ° ° 7 ° 7 k 2 ) � K � > ) ® 22 , w) f § cc § ® ZWW , § § k w ) \ 2 § 2 }) ) §\\) } 0 A LU O 1:3 Cl �q O V e� Cq I N CM m O CA[m0 m O m (h m (7 O T ? CJ N Or N (m'l m t0 tD N (O (7 '- LL�N N z m r a w N N O V Q N Omf C�J r r n tm0 [m0 Omf O F V N Q J w n n A A A A A A n n n A n n n A n r m O m O U O r N Q O O N N N r t7 v O Q OOI y V V N a y N N V V r v N N V v Q V ¢ V V V Q O O O O O O O O O O O Q O mL� m O O O O O O O O O O 00 O O N m t Y r Q m N N N m W � Q m N Ol M O> m N O L9 m W m cc 2 Q Z (n W >7 O ¢ mow a w , 0 O = Z ¢ fS � O a � ammm ^ a aNmZp U) M V W � OZ ~¢ ¢ ira2 J a yy W w A A A n n I n I n 6, n A A A n A A n A n A A n n ¢ W LU Z Dorn oomo m m w omo ^ � rn N ommv mn ov ocsimv vmi inr o . v v `$-"?v v v `y v v v v v m Ow H I v v v v v v Qf _ > F S O ~~ O O O O p O O O O O O O m N O r m O O O N O O O O O O OO O n L L Z W O O m m m m N ILLL'1 N O t o C'l N m ui O M N Q C7 Q I M I U m W-J m �Q U Y W (p LL � W ¢ 2 m J ¢ w Q NaLuLL Ua�Q �(iOQ7 mri¢W Wi>ZU?�r N JW NQ O � I- a6J W x >Wa ZZ XQwQ N YLL O a w mm Om ¢ 9S 00 YK O 0 w 0 mm w c O ww � ¢ m ¢� Ua yraJmOJW �OWZ Ow OOD w OW !- JFWoO WJ ¢ J Q _ U » o o Q 1 wwwww J www ww a wwwww wr 66666 < < J666666 6666666= J ; Jw 6 ;5 Q < QQ OOO < < QQ � a mi ME w < <Q< QQQQQ66 0 < (go a < < 0 0 • N_ d W ro a' J� o o m �n � v �nN �n oo <o mo oo � v� 0 00000 omoo 00000000p0p0 N N O�m Q m n O h N (WO_N N m N to N< N m O O N a V Lq C Q V N O O Z= . M N Q N O Q N N N ! Q N N N M ^ N m W ^ N N M Q W N h O)N m Qm Om O ^ Oy1 N NN Mm OQf tD K (MO T I� N W O N N V [W']O (lI Q W h N N W ^ Q N m N N N W -- h N Q J W rn n n n A n n n n n n n n n n n n n n Z mm N V (Qy O> N h m T Ohi O T N (WO O O V V V V N O N 1 � (m0_N m N m(") N In [�V N W V W (7 V m Q Q mV w M V V y O a ^ y Q y v v Q LLI > O F MM mO (1 In N O] , O � m h O O NO ��- m O O O O O O O N O O O SO O O O O1 vO0_Q N ] G m ^ (7 W cm O (q W ~ a N p O H 0 0 M M 7 m N O W Q N O W Q OW D N m W O Z Q_mr h m V' c�+ Qmmoo?O (n W W yF m t'�l N(O Ir :) W Q W LL 0 N O US Z Q O (gc a ZZW no mN Or Z -0 T C[O � — Q C F- ir LU � OZ ~N (5 ha0 g z X a a Ny W W n A AA n A n n n n n n n n n n n n n n n ¢ o+ o lmhh u� N W oMM � mv�000 �nrnN o .no M �noo W mu� Qv� VmVmlIomm W LU LU U O O O L 1�1N n O Q amyl N N N V O M M m O Q CV .m- O m O O vl�lV h V V Q N O F ¢ W Q S > F- CC O W(~W7 0 o rn v �mn po v o o o m o m n o 0 0 0 0 0 o g o 0 p 0 o g o 0 0 o g LL7 1n " m O] 1� h O (p m CJ O r' r' M N m h v1 W ¢ m ty m^ N m ^ m V N N N t7 Q7 ^ �m U Z Z Q W Qm N Q w m m Wn Q Q O h^ N M t7 N m 0I W 1n � N m � Q h m ^ m (p W S N h 2 1[I 7aW U > a y r O z W z 5 ¢ W �p za w as 5 z yaoo J O ¢ � a w O w?ww w �aaX UwUi.- Z W w J W W Q ¢ Z Z N Z Q Z ¢ W U Q N w W Z O W W 0 W J NWUd yJU¢ WZZW �¢ F- LL ¢ W U —OLL 0 ¢ O > n Z W O W LL O m m w m w z un¢ � m ¢ w > LL w a W .7 > m m u7 �- ¢ ¢ ¢w LL ¢ c�C c70c7wwO � LLm — � a� 0 m womm ZNO ~ y¢s Qw o W W X ¢ O > Z ( N w EW ¢ = ww W N2 YWUU0W � � QO OOZm w QQQ 6 O 2 Q < woU gp U y n WF O O QOQJ = ` gM OODW ww 0 007 (D 70 0 JOQW¢J J � UOON O a as m m �2 �- m H V A v> r m n n n n n (O f0 [O r < N r O r r N N O m tD t0 N O m V O v N m N V v N N V mA Q < l00 m O O O O mm r Q O - M V A cs N d O M S W ~ m S m° m r m oo m n O (n W Z W O J Y S 7 W y N LL O N O LU= Z O a O U to Z n a O O W � O � N � [7 [00O 001 m Z Z (7 C7 O th W J � F N r O W � OZ a Cr W Q W W s Ot V mV V v N N O y W S F S OvoiS ou�i000 � m ami - N N 000 r O m mL15 � s c W O N n n m � N � V N N �W � ¢¢ W ¢ W F- 00, U Q W W LL Q Z W O N Z � a J Q of U Z ¢ W 0 o U. O W'm '¢ Q J w W FJ J 2 W J H Q� > LL F � a a J F o o o 0 o v m c ccrpp r o 0 0 0 0 0 0 S LO N S O Lq N IT N � n + Z Q N O O m O Om] m (mJ r N Z ') Q Q� W n v umi S o m rn r r �i m } o f N n n m m v N m m n m K F N aN J W m o r o 0 0 0 0 0 0 0 0 0 o aD m rn m m m Z a Co Ld m Q N N ¢ LU O f O O m O m O O m O m N N N m O O O O O O >a m N a S N 13 j O an m w W cm O N O tm0 O O N N N N m m mmA m m N N Z O N W n O M N O R. O .-�i r f") n ^m m_ W W a V m �n a n �i m y oli �' ' rNi N N N h Q C N a a ' O W O = Z ¢ O N G a O Z W 'L 1 N Nl< O O O O cr')_ Ori N T O m Z J F = ui N y v m m N N N m m N N 2 goz ~Q < �- a0 J a W WN W U vmo �o ao 0 0 0 � 0000 omm o o a Q o = a cri16 sCIL F- ¢ w a O F F O O Q] O OI O O N O N V V m O O O O O LL LU W a LO n o o m �no� umi CrCC 0 J ^ N N m 10D Cr m U z a a m a o S SM � � ID It ¢F- L) Z u7 O U F Q Q W N > CLU a Z Q Z Vl Q W Z W+ l�L W N OJ Im- W ¢ F O W LL y < Y~ZO ❑p o o o o OJ ¢ VxoWo a LLI W JO Q o p a W � U ¢mm 2 z O p S0 Ot- x _ Z O UUUU U WW V UQ = ZQ � w ¢ WWW Wf ¢ mw ¢ mmmQ W W ~ ~ X< O Q < O wwwwwwww� O 0� ~ mm FJaF a m D. : W Mo e p O a N a m mm m �m.;m o N N ` m N m m N V N N n n C. V N V N t0 N p V N O N M m N Q n rn V N of O f O Nr N � � N V V � � V Cn0 mn CNO ^ Z - W O� Qi' v A �p H a � � v v � m v v v O m N O V a O M N N O O O N rM M pm� LLm'1 t�0 o N CND 0 W N n m N A o O r m ^ n lD l0 V F j N 7. V V N o7 T W v �o o p DD mm m nM p m Mou� fp ..I m Omi pN V O m O Omi w Oct N (gJ_N p Q O Q Q N V T Cn A Or (O n G n 0 f n O J W O Q N v v O zwz O a Z. N a ~ W ¢ vmi cyi O m f� N N N n v p N N T WN W m v oS of vi cgi r' n " N 10 V M V Jti V 2 ~Q cc N O W 'A' p m p p °D 4 t7 N a' nLu p o N C LL Z upi m a o `4v' N X�Nii r o F d ai aC v u" Q IL w LL Z W N o N m m (My p N O p A o O w W lCf ^ n N_ m 1A 1L1 O7 m cc O M 7 m n M m N M N N V V U Z Q N N NO N A m N I� pN O Cl OI N V W D N N 1A O OI QI N M QU CNy a CC6 w C ^ N DD n 7Q � U ~ W G a N W J 2J IE a s U y N WW N J Cb w w N w W LL W J w 7 � O w W Q 0 cc ¢ QW FU www ww a a. W�W U c20 JO a w O 0 LI � Z 0 L R < � oa N w Z W a IL O 0 Q 4moX0Ow w0 O CCoO U0 aa LL Y WLLLL Z ZoF Z d m A M m r O G r�pp O o O O O O O {Npl m m Nm((r�JJ t0 M O b N O M rOr O M r tD O m M r O V O_ Cli A A p C. m M M tr0 [r0 Opi YQ� V O O VN r VO r m O r Z NN n m m On r L<( d O v IV O .m m ONI ^t7 C7 m(� mM 1n O1n NOI J r W r A A A A A A A AN r A AO A pA A A A pA A A A Q U V m O M m O N O r t7 O N b R l m m � r OOM NOm �Mj'N�p p� y� c�OO O cmQ N N m a�p y O�m M O N O N^�O - N M y[y V V �u3 V C� V M �! V V V W F W > J m J V NJ W Q V U. w < WOZ = Z m N Q O r In y Z y O O OI O N r O (O r V M O] O 1n 1D m r N b W m O m Ql a r f 1A r N O) (D V O f 1n V O> m m M O] N W N W O N 4110 0 W J mm r r off_ mm0 b r � 1�o N y_mmm m m mrnin � o1n o Z W Z `H G a m m<D V V b � 1ri ri OJ N m (7 0 �p O O O N N t+i t0 m 6 W W r Q N w Z IL cr imp O m rlD M r < O O 1n mM r yb �O N r 1D m O m m r N O N 01 W m m 1D yO � pm a W Cl) �' Q QW¢ (h 10D 1� V V 0 m (<V H O m N r m O m N N O> O H N n m Gl m b W O y T M r N N N T of 0 CJ N O V N 11� O ID C O —F a LL xH m WF 5 a W AAA AA AA A pAAAA A d �. U V O N O aD m 1n O d O M m CJ m O [mD N LL'1 M 0 1� M b < bN N N n O O Z O m M N M m 0<O V t0 Yf _ d r O v v M M M {L Q Oi m M V m V � V V N y (V V M V V V V V V V V Q m r mO(7M 0 0 0 O O N m o m�m O O b N NN 1[l 1[] r m 1[1� rm� m In W U' Omim bm Obi OOi_00 b n V mnn n i°�m mmv N mmmC'lm Vm m M m m m In N — b m m 7m f U Z Q O M m O N M O A y� ^ .�.- nn m � V (m0 tN0 y Oy tr0 O m mb W N m(ram N W W O N r minm Oy (D m ^ Cli m V � N LO N r r�C b QO N m M N m M f V V U W = -i > Z Ch O oU S p U Q J Q W Z y W w W J J Q O O W Q p f,7 w o J Y w Q M m (D w Q W S b Q 2 0 m Q > ¢ wm wZzwz w > = ¢o N U > o m a a5 � a w w w wrnmM mS - w m wmwm wm m w W > m aQpUUUw cxi M ww W tD JO '� ¢W OU W m0 W W z:i — S .p m 2EJ w etl ZmSLL � �m t W O O m m p o m m = O m J O m m m b m b J ❑ m 0 LL 3 m J J Wm � wQ wp m Q Q Q UUUUUUU Q S 0o > wa � = Za 0000000 r- Ommmmmm r- f U OO ww2O� � 8< 22 O 0000000 o Om � �+�a Q ORM W W J 'Ti UOm W LL H �LUUUUUU F� �LLLLLLLLL lLLL h YYYYYYY h • N W CO ro ZZ O O O O O O O O O O O O N O n p O N o CD p O ID ID[Op O z m CD Oct m p < m r m h V O m r ClV c Oct Q m [O r m (7 N N N t0 ^tD t0 < .- V m C) m m N A A N Op m N (m0 S m n m Q m m N M m m to N m W N m M CD M �C1(7 O � } N N com m V V N < N N N V N m O N ' V 3 r W n n n A A n n A n A n n A A n n A A U m mmNo �mo mi+�o mo�ouriNo o`� o�immmaNiS�o m o V N M v � dd V �n �op V � � rev dog V an m n ti a ti y tl m > w � i= W y U N O O O O O O O o p y J O O O O O S h O O V O p n O O N r O O O O O O O N Z S o p m p p A Q W h F N Q m N N m ^ (l m O N O O N N V N O N N O N N O O V V m O LL J (� 0 W J :) O t7m N W O m' O CL zxZ O C.) O mm cp yy ccpp ��((JJ pO `R y W ¢ h N Cf O O O N 1�O tm0 W m O N Q m ICJ V M m G O 0 0 0 m mN tN�l Z Z U) O o m c� n m W V LL, V H v w m o OZ Q a z R a. u> m � o � o0 omo � om0000 �nommooyonooN M m W m_ N (n = 0 W r .- m !_ f0 tt�� tV N 1(1 <Cli m G LL 92 v O S N W � Q W n n (� pA A A A A n n A A n y A A A A A n A a V m m OI �Oy m N n O N LL} tD O C�p m m tm0 H N O zQ � VMV � `v Vm "' V '_ V �V V r ^j-� VVV �"3 `r� N V LL ¢ Q W U In O ^ S N [7 f7 N h 0 C7 N m O S r O r N O N 0 0 Off] tm0 0 S.0 N CJ U Z 4 N N m N N O m (p O M ih O V m O O m m M m O V O d' O O m t7 pC rr O O m N N O N m M N V < O _ T N poi � m � N m �a U W N Z W a X ¢ M O W z w w ¢L O U R > wo�a om = � tiOOZWz < z03 0 ? z J �N_ZJ 6 W y �N W H WZCnW Vl W m O Q m co O J Z ¢ U W a 0 — ¢ ¢ ¢ W U O ¢ ? X O > m N m Z U ¢. W W — W ¢ G ¢ W W 7 U W W (/» O � F W dZ dQyQ CryU W QJM F- 2 > Z1- W Q m > W J N Q N U W O Q 2 w Y W N J Z m W W W W W m N w�_sr s `a W W a U ¢ O Z y m O� a¢ozzw3=z¢zwoyaU , ar- a ¢ o O Q H S J ¢ J Z X OJ ~ Q W U Q U J W O O Z W J LL J Q > ¢ ¢ W W O O y R] J U U U LL O W LL Y J J J d Q O J W W W )k \ o k � 4 \ ( § ` § [ _ # # U) ) Lu � �� il ) our co z W L ! ! § E ` 2 222 ; m e E ® 2 § 2 ! / ¥ a2 IL \ §§ IL LU � 0 m m uj § q 0 ] § x k \§ z k § §§ B � § §§ ) k 2 ( k k § §§ ] Lu 2` ) ; ) ; m 0 2 R 0 / 0 R } 0 Page:I PALM DESERT RECREATIONAL FACILITIES CO STATEMENT OF CASH FLOWS P FOR THE FOUR MONTHS ENDED OCTOBER 31,2001 CURRENT MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME<LOSS> $ 7,856.55 $ <74,003.65> ADJUSTMENTS TO RECONCILE NET INCOME <LOSS>TO NET CASH PROVIDED BY OPERATING ACTIVITIES DEPRECIATION 335.06 1,340.24 ACCOUNTS RECEIVABLE <11,015.80> <5,932.01> INVENTORY <495.36> <55.24> OTHER CURRENT ASSETS <6.26> 804.96 ACCOUNTS PAYABLE 68,064.31 116,677.30 OTHER CURRENT LIABILITIES 20,789.90 20,323.58 TOTAL ADJUSTMENTS 85,528.40 59,155.18 NET CASH PROVIDED BY OPERATIONS 85,528.40 59,155.18 CASH FLOWS FROM INVESTING ACTIVITIES CAPITAL EXPENDITURES 0.00 0.00 PROCEEDS FROM SALE OF ASSETS 0.00 0.00 NET CASH USED IN INVESTING 0.00 0.00 1 ZASH FLOWS FROM FINANCING ACTIVITIES PROCEEDS FROM LONG TERM DEBT 0.00 0.00 PAYMENTS ON LONG TERM DEBT <517.51> <2,054.63> NET CASH USED IN FINANCING <517.51> <21054.63> NET INCREASE<DECREASE> IN CASH $ 85,010.89 $ 57,100.55 SUMMARY CASH AT END OF PERIOD $ 172,147.31 $ 172,147.31 CASH AT BEGINNING OF PERIOD <87,136.42> <115,046.76> NET INCREASE <DECREASE> IN CASH $ 85,010.89 $ 57,100.55 UNAUDITED - FOR INTERNAL USE ONLY. A ti c0 n 0. of 1 W p M 10 P �j 00 b O p N p OI K fO C O l0 N w m N W O tN m tCli b+l �- a N N vmi O n d n n m O N CO M (m0 d 0 b O N N T N N O^f o b Q ^ ' V V W N yN nA O O A O un'1 N fV ^ A _N O O N a m N N N O 0 N m m ( m O V V V V V V V V ^ O o p tG �p b O uvi_o n m m OI 10 p b O W o O M �p y W OI ai N UC ul ul v U) ¢ W W �.. F m n J W rn o m mow m O U Q - a "' m m ` N b w m ao W JWy �U v v OQ Z a b y N m T M b m m b OA � m ^ [ate W w W O v upi M (r W U) W io t0 N NV N N N N M >- b N d Vf N V V Q 0 ~5 FLU w n n n n n n v/ W N t j N tV ^W In b C n m b In O 1n m W Z chi d V Oi N h m d N I b V M N b O W Q V v v v v v av6 avo' W Q x > a F- CC ~~ t0 p W ^ M b V O ^ p N p ^ O W m m aD o N t+l O m tz o m O N n �p N N N D m b N d °D N N U n z Q N ! M T d o N m m OI O N '� N w m �e�yi d O 1CL b m N m m N b m c9i Nr t0 � f7 t0 N V N� V U ~ W G a w W J F cc U w N U) tall J w w N w W W LL W J w w w O w a O J O f•' 2 - J [7 W" N 2 m w Ul w W NLL. w f- p dJ oU[ coQQ W az W 7 a wF f � Ouj U LU »w 0 a Jp¢ ammQLL w a Zww ¢ 0 w -W Q m X> U O w 0O xmoo 0 o o° Woo ° a LL ztF7 A a Q mmror000000 m mNrmMo m NomrnoM r mommno a v NN r o Io m m m n mm � M lnmm Ou' ev{ N �V� �n a m v�`m8m vi ovm in a m m N O R N N N Ih N N N n m m N m N N A A pm O M O M O y Ny M O (7 N m V n n V N O V m O b O O OI M�} mp W O N V b Q O N Y�O N V 10 M m N O m tT CO n m V N M O V O f?t��j In N N t0 W h V)(?M r �- N N M O m N N N cr W mrd N z- V - V I Tr g 0 O w o �n o mon scorn �o �o y� mmmzo s ci <oomm o v � m yn My , m T V (D CJ O n N V O] (n V O N N n N [�O O N V m 0 m N C V m O a O m I[I V N- m -V N m m e V y M V V rj V U M G v v v v v d v v v v `3 v v !A L > W W H m > J_ J U W F- F 2-1 ;- - 000 0 0 0 b NN 1-0 2Np d Ny N [00 t0'JO W ty 0 IO V n h < n N m 1n m M N O LL J W 16.6 . n m M MtON „ W J pfn NO Z W m 0 O Z rN Omf Iq n O N mO IQ M h N tN'l fM+l S b I N9 y my m tm+l UF = V O M O N I(1 m d V N <r m m f?< V O IA V n n [O s} I IN._ O N V N H W Z O Q Obi N m m V V W W S F ¢ w a c0c z Q = G m N W m I[1 (O 0 0 t 7 N m O M N n O I O N N m m I(I m m m 0 0 6 I I f1 O I r m O] O m m t y V In O I N u'1 a 7 W m p m m a 7 N V N O m W (n W p Q IA N m Cl (p In V [i n n ^ N O 1_ V m O> N O M M m L r ¢ W y Y < N 1!) V ^ m N N N O 1(J N h m M O ' O W J C A A A A A A A A A A A A A A A �p A A A A (C AI n n n a R NvNo ,n v o — ma a N rn mM v mOO V m r V a(VV�V [r Z M N n I:OJ V V Of O t0 Im M r � � M O m n In V m v M W Ol LL a v � W fFW'� Of O V O N O O O O O t0 O r ll O m O N N M m M M r M N N m m V V] r y O O m m M ( C N ¢ p m � (D N m � m V m 1n 1n n J m tV U 2 Q r m N d O m I mIp� O O LL] m N N m Ip�I O y m M mm �Ny O yV V Nm M M N OI W �J W m c4i m I N C M M N O r O M i 0 V n N n N A M m Qm m n m m V V m M N N m ^ N N N m In N l0 U X WLU J m > C) y � Cur' O O OO W Z y W W W J J .0 O G w N a = < w (7 Jo J Y W J GGJ Q Q J to > 2 (7 H (7 Y � Q > ¢ W m W z Z W Z ¢ > !iJ U > 0 m 1 a Q ¢ w w W W w rn m m 2 m ¢W O m W O > w o z a m W w LL m a a O D U U w U mJUJ W mJO °� F- W U ay mO W W O— U aE 00am W nD Z (72LLS m H O q�N ¢ ¢ Y QQ1 W > W LL gyLL m m J _S — LL OIJ � Q U_ z LL W Z Z Z Z Z Z Y WWWWWW LL I O p W m 0 W Q W U�m Q C m UJ m m(; N G O y ILL 3 m ¢ 2 2 2 2 2 2 ¢ S 00 > wa �z Sz W F- Oc7c7c7000 r Om mmmm m f UODUUOU U Oow W mO— C71- ¢ � � O 0000000 O 0 � of wtm O F- � HI-HV_F p m w LL m m W J _S o O m W LL H LL U U U U U U f LL LL LL w LL LL LL H Y Y Y Y Y Y Y 1- N N 0-0 A LL J ~ O O O O O O O O O d O O COJ O O O O O N N O O b O O O O O O O O b O Q W O O O O O O O h O T O O m 0 N O lA N O N m O O O p O O b � <O Z Q O r 6 O d d lD r rn m d O fO r O r (O d O N OJ O O N b O O [ O N Qm � (h C)N NN b d [O 16 did � �t+l c0 (m4 Oi N P r m O L a d N Qd] YrJ m m r CA m V fO N O tG In [") O tD d N 1n O b N (h aN v J r 0 W n A n A A A A n A A A n n A A A V O y N-� (O m O h m p m O ! N 1� d O a V V N < y N o 0 tr+] d y m V t7 N m 0 V V O W Of m U M ¢ V v v W_ W m J U QJ pp NW nNo m O WF rS S o Of lLJaW cli W 0 O Q W (� m a 0 Z = Z m m ¢ Z < <O p^W O m O N N O N Omi S O W (7 O h m t0 m O pNn� O T O N N 0 F Q y CL W J N m O ^ mr O � b NcO r� .- � mN �- O'1 V W O d Cf YI Z �W Z y Q ? N < (+J N N O m W U �' = �= V w LU a 0 ma0 z L. CL_ OmO N (p O O O N m O O <ON O <OOOm � m � (71� O d O r O r b Oni 2 2 O N ('J `�i � r Oo bN N rbr tDm m1� c0 �- Om ill W () W OQ r dr mr m � n! o mm and om dEr W W V V m N a7 Q W M N Y v LL Q = W pp A� A A A n + A A` (Vm^ VA A A A n A n A A IL X Z M (b0 N N O T 7 S .br ^ N O m � O V V y to L r 0 c0 N N LL a N V VV m 7 ~ ~ O O O O O . . . . . . . . . . . O m O 0 0 m 0 0 0 0 0 0 A r b N m m r o m m r b o C m N N OI {Oy U Z Q O O (O o O O �2 O m b O V N Omm'1 O O O b r O O Of O �- p O� O < � d m ^ d � td0 U W U) Z W a y o w WZ W W Z J F- Ul w Q W U U wm0 ¢ a F z � Q > W U F a 4 fh N O W Z W Z ¢ U �i W W J Lcc U J J 6 Z J 2 W y fn W F Z m W w N U U U ~ 1 7 [n �LLO � mZOdw W ULL �6¢ W ¢ W LU 7UZ dtn Q W Z W W mJO � F W LLZ LLNC7U W FJM F- LL >3: W Q Z UJ2 � 2Z ¢ W W 2 Z - MY ww � e-0LLJ fn W ��U' Z In LL m OW J LL ?� W LLUU W a[ U QQHSJQ W WJUUUOX UGUJW ma QO OJ ZO WQ Ud LLIL J�QQ >W Q? QU WZ Waf OQdOJWWWJmwOOUOLLLLQQ O H LL v 4 Q W O O O O N O O Z � V OG Q GO O O h Vl N m �5 0 W W Q cl ml aol I of o cl ml m F m J } J J = ul o 0 o I o f $I c o I o N 0 LU w m O OUP a. D fA L a W C7 i JQ o S S' S' Z 'Ai o � w W � Fx Za � w moz < f a0 C, o a o WQ W O� I I oc'i O a x IL O IL Jwo CD m I O I ¢ O I O I G I O I O m W e -J Q O tV tV I O O I tN�l I O I O qq V V W N ww ¢ W z G W Q w aw p O W LLI O Q Z 4 <J r U a X C o y Ir 2 S ti 2 Qw r Z �4.. CL ti XX N O N ii z O O WO o 0 F F 0 m y Jr o �nrno m000 r N O N N m m m ![1 n W OOOONOOm VV O [O (?(D N Q N N (O M O O m r m m r ^ O N K !(l O N m O Cl M N 1oV CJ m m ^ N(O^ V O O O Z chi t D m N m Of N m n gym, Ol r N NCl Ip V w� Q IO N N mmm �n (OO O N rNO m � m O mr NOO m N m N N d 0 a O O ^ Lei tq N � y a M N m O� N < �- N m II�r�-yl Q W [OJ to m �2 N f7 A r V N K ~ r t'1 O n am0 d y Q V J W n _ n- n A A n A n n A n A A n n n A A A A [O r o m r O m ^^ o m a V N m� o r O V V o T O n U rm y m OOi r N m n O N m N C7 (�V O V b1 !O� N M V�� m N N M N O V V mV N V m V V m 01 V V Cl V N b V N V V V n O V ^ V V V m r lA O O LL'1 N O (") m (O 1n M LL7 m O O O 1n p N V r ![l m ' b m N O O O m y y V) O m t 0 N (O[D r m N N K O O .. n O M OJ r N m N m O (O O O r � ^ N W r r r m h � ri rn b mm � � in pp N N �n v Cj U U V Y m N {- A L O m o N m b t7 N m c J N VV C7 N f7 L N a m C7 <O r r N O O Y r N N N (n Q N m V f O G {'i J r 1 n W m N M ffNVV O O O LU cc r V O A w Ol My VmWi C �^ i E °7 c 3 "' C nmoo mmN � N mrn N ome�i Lqo N O�V vmimm O mo V OI r-� N W IQ R N O rn rn m m r m n m n O m N M m n n m b O py2 E 0 �} m m���o a m m ^N��<n vc Mmo. o ro =� O U) N N N O �j C CO SU) Q W 7 U) O W A A A n A n n A A A n n n A n n n n A F4 W mNmov mm o o n omNr �o n me V O LL, U m�-qu`�in u�i � !n p� m r r v N y �p k. O Z tD N N V M N O (O N 1 m m N r !O V ^ M dl t. Q d `N" v d v � o � N vv VS.�' uj M of`3v °' o ui c a aJ�� � v ti v v LL > � � -r mom000 ap mo N u� � �n -- m m000mo �nr �p �A 1Z� o � r Mo�np !nm rnm e v m �n oN o !. O W N !(�O Vm� W N O] O Or7 N N c 0 v m N V O d m M 0 N m n ![1 O V !f l N laD tD f� N !D m m N V N m V U ~J m m !A O < M < O N O N m m V Of N O O f0 O� N A z Q r m N N M o N m m !n m m m c� M N N W 7 rn _m `� mr � c�' fp r O m c� LqC� .- N m o � .- C V V N !(] N N2 Nam^ N N Q J� ifl C'l N O (7 N N V �1 Q W m W W N J ~ ¢ w U ¢w N y (Qq J ¢ ¢ 1 w w N z O_ W fn W LL W w W (� zw g Z Jza O ~ ¢ dz JO NvwiKZMwWZZ = z w wow Yo W Q ¢U F W ea � �YY � zzwwwd(nw � w )' W wwZN ¢m wU > �/7x ¢ m m JOOawa > WaaWXz w wX ¢ M Q z3 >oOw ¢ � Q w0 U a J ii0a � 1 N W W FD WiMOX"° w W Z w W w x W owWW < W J w o J m O ¢ ¢ S U ¢ J Z C7 C7 d X 2 w �¢wwwwm J a > ¢ Z Q z J Z J W F' V I U' 0 F O U ¢ J J Z F a U U O¢ J Z ¢Z F O W U � ¢ W0 0o O Ooo O Q � ¢ oow O Xoowo ¢o¢ ow O W W � U� (7 � U' ? h V UU F- (7 O. UUU' U' U' f W Zm � C7 UC7¢ ¢ C7 I- Z \\ zlu 15 \ 2 \ # 2 CIE k Ct 2 v ° ~ ( 61 �} ` � � R p S ! « ) co It / \ Ci w Ci \ 5 k0 kii / § ] ) 22 \ ° ` ) k20 2 ; § � � � \ § 94 Z 9° 7 ! _ ) ; — } : /� \/� \ } } \ Ct Lu ( A } § § g LU gR S j LU ® 2 \ G 2 ( k § « §W ] § ■ 2 § § \ \ k ( 0 kk § } � �jj w \ / F- 7 k IL z § w oG E Z Q W O O N M V (O N O g O O r 'O D(NO O! r t N 0 t'Ol < � O Lq N 001_ O O O Cl O?O (D t0 M N �< N G) O O O O t0 O O O m 0 lD M O m ^ N (O (O q ^ r N V M (O N Z O O N M N m V N N M N N N N OJ r Z D Q m N N Om N l� � NMr � e ONNOOmOI� q t0 r - M O N � q O - N r' W < [ONN }W � N N (y?� � (O M M O g q " m r V O N m N M � O W N m t'l tN Oi M N t0 Oi M f N �q a Wf7 1A O m A N O r O p A VA' q t0 MA A A O pA A M Nyy q r V� to O O N fh N th O ^ A O N O OMI ONi ^ Oef N 65 O O V m O m N N 0 tOD < V LL� V ^ t0^ N q a_ N N O O V V V V V N V V ^ �' V V V - ^ V ((('77J V N V V f V V V d V V V Q LLI > N N N N N m N a O O O O N y O� O n N O O O O O O O N V OA O O O O O O O O O O O m m N OOi C n O O Iq O V tS_r R T N (00 < fro [� L m < r ONi V N m CO)1-7 r W � U N N NZOO O O O n w r } WJU w ¢ mO a U) O = y y W 'L Q R <(rh m N Ynf O r O N ^q m m O O f00 fD O r N N W O r n ?m O m N O Z r N g O t0 N t0 N q c0 M N N (V O Z N N} m m O f� M LLI (7 N t D N e Pl CJ V J � =r W d r J Q W 2 U) N W MA pt [h pM N A r t] to O A f(NV0 A 4 CM f0 to LA N (V A O O A [A O A M O ( O O N f� [J W O Z " T 1 e v N m V m V y V Q N CNVJ V f�(u] f0 qV t'l w m V N V M O c LL Q e V r W ti d a O LL rr r A g N q m q N W O O O O g O O N O O p O O O O O N O O O O O O O m O O CJ W O O O N K M N N C�V� IJ q q q `- � t7 N e t0 m O N N O f7 V t0 Ol 1� lD D m e 7 m U W 7 Z r r CZ q N (O r M O N M O p ^ W N N r N fh M O N O fO N M q q O f0 N a0 N m N N M tD 1�N N �- r O V t0 N O 2r7 m ni r� M frim $ r mcd��N d� 0 0 q q J W W VQO W 0 w ^n > } a w w a x y m a w Zw Z 0 Z w w 7 O 0 _ M J c Q G w N Z W N al � m d J d Z W ¢ W i W w mw ¢ w J p tta a � a ¢ Faa O � y ep ¢ o rn � Nz > �w wa> N =zS wN � wwc°Cj� W O O V O w J LL V O M O W z N W W O Z a O W O J J Z J 20 m� 7 V 0 Z O 7 Q _U Z Z O < U U J a N U ¢ W 2 N M ¢ y N O W r F J EE rN O2 lLLU � Q1 J r W aQmU `« UU' U W NC7 (7 W 200 � JOa OCR W wd R ¢ r 2 (.7C7 (.7(700 f W - -� Mn W (LUg- cZ � ¢ � � tt _ Z W JQ O (.7DJF- W� N Z O O Z U U U U U U 0 5 QO U¢ U �Cal¢ J UU � D O U O N N � V�i2 U� � U W N J e0 A 0. pp 0 0 0 0 0 0 0 0 0 O t N d m m tq m r O b N O S r O F. O N N m I b O_ N N A ^ t] n O CA7 n A@ N A N 1A � (7 DJ t() n W (7 Vt �Cy 1 V V N nV tO (y V O 0 V V � V V 0 0 y0 0 0 0 0 p0 to O 1� tA0 vvtn mm < t2 t0 tn0 r tmO o 16 CIF a; 0 y N Nf 2 m �mtn n � n n rnm U; A Z OtAO c� rn n $ � �9 � n m m fq W F ^ N w m cn tri a' 0 W J C.) v < w SRO U. W a Z_ O C.) a N ZG _ _ n uj yy rN V) tC O ym O t0 F O Z y t A F ^N O (0 INO O W J !- 2 v cc Nv v 2 W CC O Z Q � a CC a W S U) co NA V M .- OAi N A m fA m OAt O LLJ O �LL � � o � <C 3 mICL M W � S F R O U. o o t n o 0 0 0 0 0 o A N� R to O1 n O v V p A 10 0 < m K O n VmJ � 1No m C7 O tt) N Ol 19 N V W W N N Z W Q to W 6 J F Z (tJ W fn lW- � O W N O 2 ¢ d Q w ¢ a W a L 0 z m OWwm m ¢ V Z a 0 N a N U Q mww Z 2 Q U LL W= p Z W n n , w w 00 p O W�� w00 ¢ cn � U 1- z M a _ m O N (h [O m Q N N -i�r N M1- [Iq r m Q Q O N 0 N Q N m t0 m m n N Oi O �- M O m n m m (O (O O� �- M • Z p ^ ^ m m V) m T N V N - N m m Z 7 a m N N (nnO YR LLI rr m m O Q LL�� N C 2 m O m M om- m Q M m O J N N N Q n ^ N N F A N ^ N a J W Q mN O [pO m O A As Q� .�- .�- O 1y . 1` O . I < 1 M t. O . m � � pO� 4 �l Z y_ y� y N C� ifs N_ O4i.o m N N y O v � (�� . m h Ol m V r N N V V a y Q V V V N V V v O V V R cc V V V V a fW uni .nn mmm umie po p000 0000000 0000000 000 00 }0 � r OmQ (h (ml00� � f nN V m m OQO N pN < m h IT R 1 m O O� � m N � m [O -N m Q m N (7 N m M Lu F- W A Y 2 m p J m m m m 0 Q r m N o m m rn m N o udf Q m r o Q m yy OO O O N N OOl m m m O m r N m N N ^ mWN Qn o VrQ.m- v� m om Nrnr Z fp0 .0 NCli Lq0wmLOO w J V V N ^ ^ N n Q N m o O a wa a 0 Z CS � Z a O S N o 0 o m o (7 w a L m o n Q O m V� Z 0 z w W Q y (p V:(?^ W m C� Q O O m mm m m ^N InN O m m m W J .� (/f y N QN N N N N m N ^ N N N ^ N N O w Jir F" F a 0 z CC a 2 < w ¢ AAA A V 1 N W N m rn m o N m m o gg m -- o -- m o o m y r o Q Q o n m m m o m m m g o QO Q O 0 a n my Q v mho m c m v v N rl�off/ v v � mo v v v v LL w v v F > Q 0 LL F F mp yy (+yJ p p p V� Z W OQmi m 0 0 Omi m O O 0 O> O T N O N O Om C tip O O N N O N O O O O m Q.p mm N Ch Q N N m N Q ^ m ^ N ¢m N N �m U m m o m m o m m m m o m n m o o m Zap m mmrnmu� m rNo oQ m mm mo mm c� Q W 7Z mm rn^ No mmm �m n v cc N N N Q N N N ^ r m U 0 W m m J W Va ¢ D J N C7 Z O Z o! > a a N ¢ as w p j p CZ, O w O j w j 7 g M U m (A CC F ¢ Z ,. W O -a w > ca > -a 0 m z O O Z = ¢ o�¢ F Z N W � ¢ W m a W y Z > w ¢ > m z a s w O U w¢ � w ti LL W V. N y F fllw a00 � G - w r?i wwOmm ¢ O m M ¢ ¢ w M j N¢w ¢ Z a Q a 2 `Z p > p V=j 0 J m Z F F J 0pp0 c� O ¢ O V OUw O 0 ¢ c?OUrvO� Uw ¢ �' W C6—' c7 � r- FO m�wOrnO W M W d U - ¢ p¢ JF W ¢ W O � ¢ ¢ F ¢ �MOZ W OOpOIA UJmmQF � >i0 W w � � N 00 0 N 0000000 0 0 0 0 0 0 0 0 0 0U 0 0F 0 0 6 0 0 0 N 0 0 0 0 0 0 0 0 0 0 a a o000000 0 .. � � � � � � 8 P -qo m C N N t7 O O n r W N N N N V t7 N O N � V A N �A (D N 10 N v (D t0 Sl V V m N OO N m O O r O q IG C2 t0 t7 T C f m V N co co Q F- W 000 m V mrR l� mmm m v .for Z m VI W yyrco � N n m O W -1 (� `� r r W ¢ � O m LL O O IL OL n OIL O � w mo � � oo � .� m J Z N r m u m to r W J F a V N 2 LLI ?� OZ c7 O a CC a 2 ¢ W m S Q N _WNW 6; �.. O � V r oLl W MF Y. O LL 00 0 000o eo � �n m m Intl r N O a N D m m O 1O W U N W N Z F¢ Z (A 6 W a � mU f:J JO yam Q a7 W O W Q Q y N U Z df/IUQ � Z ¢ H (7 a l-LL dU W � tn =O ¢ vWi �] J V a 0000000 o 0 (/l N to to to(A Ul H N m A a J F O O e o 0 0 0 0 0 0 0 ♦ C t00 N N O N N O C_ N r Z O Z0 Q m f N Q J QW n y � 000 O1o� o m (�y (D m N 1A f7 N V Q WO O O O O O O O O O O � }Q N m r Cl) m F W } R m 2 oQ � n � 00000 Z O N O }O m m n m O W J U U N N N U) Gr � O Q V w (n OTZ C9V0 a lA Z C7 w O¢ orn v�i m0000m m ro z O Z cn y W N t7 N O J } n h ul � LU ul OZ FV~j IL O W 7 m > Wy U o 0 0 o 0 0 0 o m cc G O z m a W LL I- > 2 O LL ZW o 0 0 0 0 0 0 0 0 0 0 W a CC O m O 7 fL U ZQ o 00 0o m o 0 0 0 0 W 7 ^ a RF ¢U ULU Q j N J U ul N W Z W w zn �a g W m WX�w ¢w m m U ma � Ow� w fJ.f y Z J W J U Q _Z 6 Q � m O ~ W H ¢ J W LL W J _W W < O= QN m d U M Z O m W Q m J z � JN � ssssss s C U Z J .d M M W •+0 eD J N1 W NVI w=N z Zo wZ NZwZwZ wZ Q z Lu m Mmmmm mZ3 � N m A a Q W tN0 N <ppO N m � N O O O O O O O N Z p OJ n N N M N (O V]CJ V O Q m ^ NT ^ V p¢ O O N Of O t� O N O O N O h O YW ^ ^ m m N O [O N m O O O F ^ V U) Q J W T (7 O (7 Of tR m M J O c0 O O C N Z Q t M V N t O V N O O O O O O O r O N O 0 O O O 0 (7 N m 0L6 [O N p m V N w l7 F W S m OQ m � v�im � m n n Ncomo goo mn `a J O VI p N N N V O N N r f L Ci Z O'1 m < /� N �p N N W J U U N N n m N ¢ � O a w LL J W a � = Z Up D of Z5 (Lou OOC � M � m r o 000rn m F o Q O O f m (O N {'f N Z � OZ ~a V w IL O IL J z � Q cc 13 W Qcc F > cc O LL F F p m O M AM m M O O O O In O O N N WO m O N N N m N 1� N O cc O r N N N N Cf Of 7 m U Z Q W> _ r Ln c ON V c0 cc U Q 4VV U z Z O f J W J W Z J w > M Ww O a¢ � w w �� vi J N Q O V U V w 6 N z Q W O Z N S LL J N m Y Z ¢ U a Z Z Z Z Z Z LLO Q 000000 O O W uj Q Q Q Q Q 6 LL a p a LL O J W ¢ ¢ ¢ ¢ ¢ ¢ J W a ¢ a J Z a w W w w w w o LL Q o 0 000000 J ' w J w m J W LL LL LL LL LL LL LL Q LL w ¢ U (/J 00 Q LL J J J J J J J F J W O Z W LL O f J O 0000000 0 O � U w w �+- ¢ O 0 r a O O O O n N N O N Lu m O O rn m e N O O O O O O O < �y��v_ aq r In .- r in n o C om vo o a Z 7 C7 N N I N m V f0 N m n V Q m - 02 olnM m �nmr r �n N m � omcoo r � u'�i F Q m N t0 V N O M O I N m m O O I-L Vf } N m � N T tD M r m N n h [D r <O tC O V a J V M m o m m 1m rn r vNi v o n N m S m < m Zm_ N V [O m m N CO m m l� m �- n OOi Q N y M V (O O f7 y t0 - � � V � V a O F (mp H O ah O t0 N Oo> m N O O O O O O O O O N Q o m �O V1�N S O N O 2rz < C m v W F- W A > Z ow o y0 c� o nnm m m n m mo n W J U U � � n u�im moi n N o Iri V O O T00 a O = � a IL N Z 02 ono m mmmm mNm o M � o � rm r to m li H C7 W $'Q OO Oth W � ^ NN OWi �O n 0 Imo 1�0 r N _ Z J Z• = N} MN'- .- u') � N W�, �+ OZ ~¢ ¢ H G. 0 ' z CC wM CC C LU 0 W mM Mo m Mlnnv 'O m oo <imm A � e N Q O Z < IMif Ilv r tV V m K N m 8 N LL LL a V V N V a V y 1� LU m > 0 N r O OI m C W m O O O O O O O O N f �p y lye pp W a N O tr`i 88 (+l lc�m mN LQ LQ N O N V Om Omi D 7 D m U F J In O O YI T Ol N R m O O O r m m O 1n 1p O Z Q m M m M m r IA Ol V h N N r f7 10 W-J 10 �-- � V �- � N� m O N M C 7 I[l I n N S U LQ U Cl) W U ~ W W J Z W ¢ > > G W Q N O W = J Q N ¢ F a O z > ¢ Oy r a ZW � w ¢ w H j > W Fa- ¢ 5 } ¢ w ¢ a T F - 6J. M ' O O Z 2 V U a S 0 7� m U W Z Q >2 �W Z f:E CC J F w ¢ �"' F- H F F- F' Q ~ f- a O - W W a Q �- N U m U 0 U U U V U U V m U w� ¢U m ¢ U a JY OOS OO O hN m (D CJ ONI� M rub O N N tOOO rt7 Ql OOOO • �i h n �O t00 V N O r O m W ^n M g C N 6 m r n m 01 V O ' Z O ^ r r m N V n !� m < .-- t7 N m Z' 0 am ¢ Q N r Oi(O [O Ia'1 M N O m_ _O cr O N t0 O N O w < Y N M N O N N O M M 0 M N th N f N Q J W n A A A A A A A A A [7 n n n n n n n n t(J In N � O < yW yO eN{ �N�pp mN r Z ON tr�l N O N th[y V �O CJ Y 'rd' M n y N O m r o a V N v v v v tl v v S a > p p y �p Vy� v� O W M O N OL N (Oa M « N O r wo N -ct �C'l INN Q 00� 0 Ol r VJ — N m m R1 �D 0 r W N w �2 N n m IA m M O N m {`7 F W } Q t7 r f7 [D O O C O m O < N m O Obi (O�! r h o ff- M n -Z [p ('l N m Yl O V g r_h tD V tV - O V) W O F M f00 o N O ^ N m O N O w m . 0 Q f f w J W Z 2 O = — C'SyZ i A =a C7 W .00¢Q N o Z O Z N W m o m Ln - mLn — r m o m nmmc� � v m m W o m of o cl; �+ OZ ~a a F a 0 J Z w � � 2 A A n n n n n n A A A n A A A A A A A A A N N W O NON O r N r N O t7 N Of m m t7 N O O r O¢ W O O r N V N O (��_(ham t�0_ N N O N m �CyI O(W� V OLL W Q V N N V V V V V v V nj V V V V V v tl V V > cr LL Z W o h g vrao rn� vmi m m �� `� nv a v'W N N O O?fO O m 0 M V r N ^ O> N FJ LO V ¢n n m U yy p Z a O N O N pO V M [D 10 S V o ONi W O m r N QOi O Mq R O N o W D r N O m t? Cl O < r O 'R N N N O ¢ F r 7 O N K m N C N (D m N O ¢U 7 a U ui a W = W y N N >LU Z W W m J Q W Z JO W O Y w W ¢ NtWi� xU U w ¢ Z g C7 a ¢ > w (7oUZ a Y ¢ -r' m a>a Z LL o N w y ¢ o V a '¢u ¢ = CL 0 c�z = LU O � l 3 i m � 2 x � ¢ m ¢ 0 w m a w w W Z' = LLazN W W > W 6Uo > �, IL xLL � 3m �y 0- ¢ r J J ¢ mo w Z N ¢ ¢ J O � ¢ } J O LL LL m m m m J O O P' Z O U LL o- viW O U O O ¢¢ O = W ¢¢ O S 000000 O =y zm w f3 ZJ awZ w Z 2zm W 0 Nam, SO 0 (yxxxxxx f7 (nwwm • LL ¢ U ¢ O O J LL 2(A y V! J LL m N Z J LL LL ¢m m m W S JZz= w0 15 JOUJ � ¢ C7 F J CD C9 W F J JJJJJJ F J =0� ¢ U O = m0A ux. OUamU = m OOOZ O O C07 C07(07 C07 C07 C07 OIC w7M 0 o O o (7 (7 v n W ' _ �yV o 00000 p00o N m N h m m O m m O N V V N N A A A A A A s A m n o V o r m o S o cy V V3 N V � O [O Y9 Cl V V V tV 0 ^ N O M F W } N W r N m O( o m y o 0 o nt0 OO (n Omw VN N_ J W J V N W OC m 0 y O = Z a a W oNu� r� oo ^ 000 o e Z a m m t? W O Z fA m � � �J H F W � a0 z � crate Q at 0onoo �n o o o O C LL v e d v WV W W 2 F m O oo LL N m O O N N N O O O In N N ro � m W W W y y L. o w o W W O Q U 6 p W W y W o w U M Z < z p 0 O w U O <S S 0 J > LL Q Q F¢- Q y y Z d W Q ywq J J J J 6S�=/JwwSZ yjw CL � (07 (07 J H W Q J y U M y a s Q o w > W Q LL LL J 7 > Q W ¢] = h p O 0 woon moo9 o y 0 on p pp Z= am LLJ Q O $ rn g chi m n N N m O NV F N Q J UO O O r t0 Z m v T NV N N a V a Oh O o 000 ooSoS .ten o ~w O N N N N (O F O y Q N N O O WV N m M uI G. LG p N p Nm0000 N Z W I=z O Nm W J O U ¢ = p a v, � WCS a Z ¢ Ca ZF3 a r2 W OOC � o 00 000 o u, F pzw �W m a w -J1H = Ny rn c v W 3oZ ~a a ►' ° p J ¢ Lu w W oo _ LU V10 M �. m FmwOr m ¢ Q p Z N N O N O U. a LU cc F- > m p LL O O O O O O O O O O O O W� N K O N V N ¢p o o ¢> 7 m U Z W.7. r r N N O < N Ol a F O O �a lu w w w w U w Z N a W W W U F Q y Z W N N Z F ow- F K w U > w a y w a_ Q m ¢ w of W W W Z X J O J H W Z D ¢LL a !Il ¢< OUwmy W N ¢ Z S W W W J W W Q W Q J O ¢ J W en 2 2 Z Z z� Z � a a F Z N � ¢ FO 2 ¢ 3 ¢ w� w o m ¢ w -�� 0 00000p00 0 0 0 om �nm rm .n o 0 o p000c� oao� oow c Q W O O O S d m c N N m O N � m O N("l N m Z o m N Z 0 Q{� FO cc O O m O O LL] n O N N O V n h m Onf in O my N [mD Oy 0 0di N N }Y N N m N n d' m O mN � .m N m � n n C��mO� m N rt Ol V F m Q J W 0 0 0 � 0 A m A A m m A d d Vn� n d O O m n O N �l O m N ^ M O d n Z y y m V ' d v V m fy N m 1A V V V Q N d (y m N Od mV N V m v V V V V Q 7 F o 0 0 0 0 0 p 0o o e o e o m o 1((�J� o m n o 0 0 88 0 8 0 0 0 0 0 m W O d 1n 0 0 r m {O O O (7 IQ m O m m N [") N N {del O Y O C m r co cc Q] O J o 00 om o d d vndo rm r od M o mN ono mNmm n -� urn m mm �n o o Z Q y Q N LLIf YF- vm-- N V � � W J U U v W ccD0 Q co J w Uo o Q N W Om o0 0 0 �n r o N - oc� � rm m �i vim m o nod o00o m m Z (5 Q in m .n N m m m r co m m r o 0Zy gW CL m � M nm u� `e f m W J z _ 2 Y N n O m N �' w J� Z F=y w 0 Q a2 g Q W U M 2 (q N w n n n n n n n n n n n n n n n n n n b. n n ¢ W 0 U oovoovoi cvo " m m �m ref S o ,nma v �, g � o � oo v e .d- OW O LL Z M� ��v �; tl 'v v H Q v v v v F > S O LL F F O p O O O O O p Op O O O O m m m O O O VJ O O O O O O O O N d w�5 O N N 11�N N m IR m N n 0 N f N 0 IA ^ n ^ N �.O th < .- m m �m U F J O O O V) O O m 0 d o O O m (CQ O v� m o m $ A o A o m0 0 0 o m C LLI F V N N m N m m V V N OC U 7Q U Y IL v LL j J Vl d y y Q 7 0 W m J ¢ U Q W U U z w N O ¢ W a z z y z a r z w o J W NiO� UOztmii O m QO J O m y 2 z O W W U w C F y wis: U w LLJrCQ C7 YlL � U J J } UJ Q 2 Q iW U6 W FzD � O� Qa JOaa FL 2Q FCL 2F FQ- Q OO wmnm Wm¢ WM Q Wc3nwQ FApZ Z Ocl w omo ZO »> o o Ua o U > } » O » - > i> UJ YG Q w Q W W W W W W W w J Q Q LLwJ Q W W W W w W J Q W W W W W W W W W W W W J Q S J Q Q Q 6 Q Q Q Q Fa- J CD H J Q Q Q Q Q 6 Fa- J 6 0 0 0 Q Q 6 Q Q Q Q Q H J N ¢¢¢ ¢¢ ¢ ¢ ¢ o O O 000000 ¢ ¢¢ ¢ ¢. 0 Q Q ¢ ¢ ¢¢¢¢ ¢¢ ¢¢ a N 7 L 00 A 9 7 m N O NO IO �O Om SO NO VO <O NO SO <O dO IOo ID O S O O O Of m m 0I M O N t0 N V [7 N N M N (O �(l tD N N CJ V m N n Oi N Z 0 M t7 N V N V N N O N < Z V am pLU m w uNim n eri `� rNi ^ nn .n- v n � moc �ci umi m ^ min Ct Lq o v� omm W o o D) N �M �cy v rnMMr vow f N Q J W p� m ((mayy N M N O1 N (h tC O O V _ 4 M O O M oN M O _ ENV �N(� y N O r N N m �mA O O O O M (p r N � N N O m N _ O f7 r m V f�VO V N CJ V Z J y N COJ n M(O O a O O C7 N V V m N N LV N N N V V V V VV V Q O f F WJ M_Om_ Nf0 O O Dm O O O O C) O O OSSOO S O OS } N m O S -ci AO mO O O l�Cf7l p y y ^ C a) M f r N N n N N (D N N N N Q N m M R n m O O O O J Q p O M m tD M O0 a7 O� r y r M 0 0 O O� O N A O m O N N D7 N r f Z 0 (nQ m rmn � r m Oi mm [D tO Of V�- � Om � NOI tO NN VVV n � nm� O y W r F M C O] m V of N Oi N tD N N f� N d N f7 CJ N N N V y m m Q Q y LL W C7 a C) ON Z pR nrn m MM r a oo � oN o0o v aNmo ��AA iiNmo Z N W m m �� rn� S � m Nm � m cr., m Nmmm^ a7 < ^ NN�Km W J It F- � =F W O Z f y Q � a0 g a X a wD ¢ � � � A A fA Co 0 W m 6 r � mno �' om � o .o mad goMrn � S o Ct V CL W U (NV ry Mm_ (D n On S M m � � � N � NO V V O O O Q V V O 7 V V M y a N N_ N V V < V W ¢ V 7 m 0 LL F F pp8pp8 O O < nn [O NCO t") OO � OOOOr N000ONO � On � Og $ N �N NNS W O O D7 N N O N V' g m m S S m r [+l O O O O N N O �O M M 7m U zQ Z3D7 n ONn O (DOO O N ¢F M OMOf O Nm 0V0f NN OM maop �Nt?y Om N Oi ON MN m Nm m f0 INN � RU �Qw U r a x Q m O W F w o[ O N w Q J ep W— U Z y — 1c-c yy W Z 3_ Z Q WM ZW w ? � w w W FWdW- UWO 2 W w j J ¢ W w¢ o, W o tiJOQZ ¢ Fw U av=iy� wZ0 w 7g W J Y in w� Zy�aU WZZW �¢ F2QW Ua0 ZO 2 oW CCw (n m W LLO o y W �NZ W Q~ dmDwwgnm Q W Da W D_ OmJ >da w ill F3 W ti °a a Q U Q U Z tl x F = M Q ¢5 0 d W W O Z Z U Q N W = W W N Q M w d [n SO LL Yi m U' W 7 W ~ F- U O D_ ¢ } Y H W `w w Q 2 ¢ LL M Z �M W w 0 U. Z Q a Q Q Q Q Q Q Q Q O Y W O D Y m Q N U U d d l~/J oC O a Q l/J U a VJ H~ S q) 1_ >f ed Y3M M •b 4'f f yy U (L > H W Z�Fm 0- 0- � ILUU W NZ LLUr Qw W LL0_ FNz U � Z � O �}U �ry U (7 � QmQQUmoow W W OW OOW WO ,Oz -aiUJmoo0y0aa m m s p'' 0000000 000 an m soma rnm LO LoiS mi e Ol N • V m N ,nmm < V mm o �O 1� t7 h N (� N � � y N t7 V r V V O N V N O o tNl V N y y A 0 V Om(OD Om0 V�SSS O N amp r N C6 N m N <+1 cr H W C. m 'V m O m N m 0 � 0 (O NA N W h tm'J h W n_N O Q W -j � " N LL G O V O O m 0030 a � Z mmmm oN n ono O Z y R ( N [O N N G. n W CIF!- V W � OZ a CL O CC CL LU ch 7 A A (a ny A _ A A A w V O V V O q ° w x m O LL s O1A S OO LL7O S_S_O N 01 V N 0 0 0 ^ V N N tO V V J O Q O .Z W n F O G 2 N¢Z ~ w Z N O Z 2 -W<0 <, W K y QZ-.Q zwu73w a o W 2 N N w U�pCh O .. W 22 ¢ � W W fJ.7 Z Z Q O � L > w a a G w j w x m J o o yj mmm ¢ O F- l- �LL C7 a m a J f 0 0 0 O c v rn yy n n O O O O c O c tu O N N O O N N d m n Z m ! N m N r m n am MCC m o o b a o o m p rnO m o m o m m o N N Y W O m vm N O O yV N < y� m O m m N Y ^ t7 O O V 6 (NO m N Q _1 W n O <O O O O O a O O O O O m N m m O O ZmV oNi On]. t2 �'2 N r 1 cc Q 7 O O m O m O O m O m N m n O O O O O O F W O m b $ O m m m m N m V Y O M N m r ItO N m N Q 0 ^ m N O O V m m V N d N m N m L'7 m G J n o o a o e m v m N b n o m w m m o o z o m m m m N m N n Z Oy0 �j rn N rv � oc.�m .- an m m n n o W J_ U U ro S S ems v �2 IFl m N c`i m of N JQ Q 2 W OCL O = Z (7 O a Z OLY NOm � O O n r N O m m n N m O O Z O W �Q N r m S O �Nn c� O Z (n W N m � om Cl m � N m w r w 30Z F— Fa0 z LU w � p� 0 w vocio 0 0 om00000m N o o e < 0 LL Z N V N N Q V N O m O CIC 0 W O O N O N O O N O<N < m O O O O O Z W W(7 Lq v m LT. N N N m 100 Q m 7 m U �. V O N O b pO O N m N V d m m t7 O O V O W 7 w Ci N N O O m O N r N <O t0 N - O N N NZma ,m UQ 0 U Z ( O N !- Q Q W Ncc ~ a U U w Z u Oa w ZQzr~i> a w W Q¢ ow ZLL w p2xooUdo � 20 z W w o m z w z W z Q f LL Q W '� O Q � 5 U Z W W J • Y • m Q �' X 7 Few ¢ z W 2 Q U . . , . C1 O w - 0 i- Q Q U W w< W W (7 w m w 0 0 0 0 0 O � U' o r = Qwxw ¢ zz a ¢ mm¢mQmmm a ww a LU a Z �- i- z Lum as LLw 2x t- X r- N LL ? ? LL U p 0 o o ¢ O O~0~ O O Page: la DESERT WILLOW GOLF RESORT STATEMENT OF CASH FLOWS FOR THE FOUR MONTHS ENDED OCTOBER 31, 2001 CURRENT MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME <LOSS> $ <130,764.26> $ <11234,049.17> ADJUSTMENTS TO RECONCILE NET INCOME<LOSS>TO NET CASH PROVIDED BY OPERATING ACTIVITIES DEPRECIATION 65,803.56 263,214.24 ACCOUNTS RECEIVABLE <85,248.05> <49,437.07> INVENTORY <141,187.42> <94,134.93> OTHER CURRENT ASSETS <615.21> <37,131.85> ACCOUNTS PAYABLE 248,925.50 480,773.49 OTHER CURRENT LIABILITIES <48,859.40> 250,171.66 TOTAL ADJUSTMENTS <91,945.28> <420,593.63> NET CASH PROVIDED BY OPERATIONS <91,945.28> <420,593.63> CASH FLOWS FROM INVESTING ACTIVITIES CAPITAL EXPENDITURES 0.00 0.00 PROCEEDS FROM SALE OF ASSETS 0.00 0.00 OTHER ASSETS 10,789.42 43,157.68 NET CASH USED IN INVESTING 10,789.42 43,157.68 CASH FLOWS FROM FINANCING ACTIVITIES PROCEEDS FROM LONG TERM DEBT 0.00 0.00 PAYMENTS ON LONG TERM DEBT <27,978.84> <110,386.19> CAPITAL CONTRIBUTION 0.00 0.00 CAPITAL DISTRIBUTION 0.00 0.00 NET CASH USED IN FINANCING <27,978.84> <110,386.19> NET INCREASE <DECREASE> IN CASH $ <109,134.70> $ <487,822.14> SUMMARY CASH AT END OF PERIOD $ 148,027.90 $ 148,027.90 CASH AT BEGINNING OF PERIOD <257,162.60> <635,850.04> NET INCREASE<DECREASE> IN CASH $ <109,134.70> $ <487,822.14> UNAUDITED- FOR INTERNAL USE ONLY. v m r N 0: V otm-W0 �(^OO- �oO �OO^OOO Nn�o No�M N 2 E mO ni-O rv ' v �n m 'd Oo`ZG Vto er" V ~ Q R1 tp N N N' 1L� I� m m h N N O Of m O V M O Of V t0 r V O V < O m A O n m <D m O O m ' m N m Of O In m O [O p f0 Of O M m < m m N O (O V m O O (7 W M O O Q W N N m O I� N N m M h Co n N Ifl N N O N N m F > N H N b n J V n n n n n n W rrnrnomvmm Ij � m N n n n n M �nn �nm van vci nmomn A A U LLJ f Z m N N V V V V N n > V V V V m M V O m p O O O O O V O m m m N O O O H O m m A m O f N m N O O m < O m O O m — m M 1 O� < m O m m L O L N ^ n N m u'1 O N m m 1(] m e� N 1�O N M � Q W N V (7 16 V 0 O C]Rl N N lO m o O Y e N m t1pp v N m O M V G7 m m o N O n N m n } N m O m O N m <O O Q N m m 9 CY N W m V_m m_t0 N W 0 Gj vmirnv m .- �ci U5, N 1` � � m 1� Llatgi NN H M V m� o aD O ri ri LL x }Q N OMV tp O V fWiJ m 7 Nm [Nl m m m O O O I O m n O f N V m m pp O y W OQ � N N N a n Imo N c5< J N W J a L W r N N N N V C C F Q Q W G) (n 4/ W n n n n A n A n n n n A n n n n n n ' f. W = U m p m Omi O [mD W N m r O� m_O O N m w N cq M O N n O V h N (?O n�V m N a O R < N N R m M m n m O of r r O N O O Q �iN V o? n m V W N m � V V M N�N� y V V � Vj Oi V a C O am v v °v' 0 > LL W W 0 o mo �2 N NNO oSm�mn Ili f� a N a0 ir m O m r f 0 m Oh b m m 6 7 m N n Qy1" b 0 m nN1" f=.)to N ^ N N N V ~J m 1 N o m n r O O O O O m u) m m T N m O O m m [O 1 N O Z Q m O 1� O m O 1� O m N m 1� t0 N N m m m �- 1� W N N I O m m O I n N CO m m m n m m O N m 1 O R F OO m C J O m m m (O N V N N r N N n N V N < m W O u� U Q N N N N V W W W m 0 d J j U 6 W O ¢ ZU z zw w Lu 7 J oo o F- ¢a ? J vwitiaz wm �nz t� z U) > � �w } o W Q < Q F• aL o}j � .�} > � O zzwwwwNwg Z W w w z m ¢ m w U > Uw U. x ¢ V/ O a m ¢ > N a a m x m w z a o W Q Z z > o O w ir ¢ ti O w o U a J Q¢O 0 ro a W LU w w O m M OO x y � W W Z w w w x w U to J C7 J V) O Q Q 2 U Q J Z o o d x x w m Q J M LU >> ¢ Z ¢ ZJZJ W N �� O } � Q� � z d ooZ � � uJm. (wg pW w FQ- W � r- ¢ wo ¢oi O Ooo O Q � ¢ oow O XOOWoao ¢ c¢.>w O W ¢U' ? F U UU F 0 0. 00000 F• W Zw mi 00 x < o i- z . � \k /§ §/ � � \ m ` \ § \ c Lri d v In kA § � � \ \ \ L ! t ; | a 2 ( S ! f t $ - � E � §§ ƒ ; » 0r \ § � 0 �� # § / \ C ` \ - / \ > ` ` LL §k � ° \ ° \ M�E / § \ } :3 4 ° a § § § 2 0 0 . z0 LU \ z Z . « : � § z § _ - z ) \ E § 2 / Lmu / Q ; » ° Bk Lu CC / E \t Z § \ / § \ / M d A a -�� o o vmo �omm m omoom0000000000 �n000000m �n000 ry o o v� o ov m o e�n m N m e 7 O O CZpm O t0 (O M [ooO N N O N m Z❑ O O [h M h � m V N � m O�m (M�l YO"i N � N N m Qi� M m N V f7 ^N� � V cy, Q m N N ❑ r r m r 0 O O m (O O O m m t 0 � m r N O m m O N 0 d' N O O m O V 1 y y W O O m N r:YJ O O V (V CI N O I(J V m LL� (O �(1 M O O Y m m E N O V� m 'N N LLI r A A A A n A A A A A n A A A A A A A A A A A A r m m T r r N (my O O 1� r m pCI� [Oy) Q mN v ^ O� v v V V m V rm 00 v O V W N^ m V V V V V V ❑F m M NM M r O O b O O O O V O O O O O O O O O O O O O O O O O N O O O O O } m m m (m0 N t(J O h R -L r_IQm O N O [m0_b t00 N m N r m W (V ❑ N N m V N 0 N r' N N m M m sY m Vl N M 0 O m Q W Cm O. G ❑J h m M r M O N N O N N O> m O Q� m O O M m N O O ? O O M M d' r J Z Q (A W O W J 01, U N vmi N Noi H N � c-iv vi�n of m� N (n G W Q W O fA N pxz ir fly0 a d' < O O N O O < O O m O O m M O y m O O ^O O V O O O Z 3 Z W O m � OZ ~Q V IL J a � y W W n n n n n n n n n n n n n n n n n n n n n n n G] N M V M m O O m 0 (O m 0 0 0 M 0 0 O O m O M m r O 0 R Z M _ m-7 `© �v `3 �d v � e bom � � v ` S 'v � Mtln W v v 2 W Q S > H 2 m r r o N b o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o r o 0 0 0 lL Wa Min m e�i.n M o0 om o �n �noo �n vv> o m t0 m .: Ol ?m N N N O) V N m m N O (O O N N 7 o N m m l m < m M M m 7 m � U M¢Z2 QFU OO�> V Orsr- mN� O� Om OMm OOmm �N .m. . . .m0 2 f2W Z NNm O N YJ Om> OW W rn VQcc O J fd a Z O Z oU > > a w ¢ a w 0 z - z z o 7 W W 7 W W cc cor cc O H 0 -. w (7 O (} U Z W O H W W aE } W z2 H W Y dO Ja OZ� Z N O N n N � W a W U o ❑ = Z S O D U _N O z0 m ¢O O D N cc W W 0 XoM Q 4 OJ Z JWU Z�F Q OO U OmOw ? s ZWW � ZmO> ON m O A U ¢ U a0U JN 7 w O w UNQ n U W W S cc m cc ID U7 X �W, 0(7OW ¢ 0O 0UU WZjO � 07 JF- W W ZO U � Oa N Z ZUUUU bwwwo�� OO WO a mm r O m N c'J O O E' (O Omf N V m � `c� vri vmi N O f0 O O (O r � �O W W N N O d' M � N Ly O V m r' ty N V N OJ V m O V V O N V tO N N N N c, O M W m It G C V 1z m m 19 m z Q O N J O N W T N I n N N N N Z N W H v cgi m voi O W J a N M N cr W V W �J 0 O ` (7 (n a Z 0ZN Nm .nm < g r m W J F = m N y W � Oz CD a W y W $m, 6 6 v m o W o O = y LO N m V ^ Cl C ' V W F O O 1A O O O O O O O O N LL O d M 0 N O e V � V N 1n N N �(1 r Ol c6 m V m r o w w m n Z w Q N W w W y Z F Q x m Z Z U N ~ w O W _ W Z 2 N 0 J wF x J G W W 0 0 W d Z ep U O Z W w W N N w w Z W Q N N J a3 O a m U ¢ o Z w w d ti LL a ow F- U �� NOomwi oU z . m ro a _ J� vl b v omm m <o y ovylo 00o vl00000 0 0 000 0000 000000 Q W N W m V O M m m V O N N M O N m m f00 n S N O (D tO O N m �O p� N � g � « M Q M N N 0 m b m r m 0 < O O O N N V O O m NON 1� O n O N nnN O (O m O N b M N F Q O O (O O O N Of O m O^ m N (?M M h t�0_^ N N Cr9 ONi Y W It n O m V N O n V O N Q J W T m <D y N LL'1 N m V A m m p O N M O O b NAN � O rpn} O O IA M M n O A mA N N N W O O 1v Z c0 0?�V V (NO m N[b0 m V M N .L V lA N t[oV V C_ Vl lD V r N V V V V v (mOV V Q N N h V f V M V V V V V V V a a N O Ol O < tD N r r N m tNO V r V R O N O Oi c? O N V Lll C G 0 m w O m N ^ I� N - m N f` h O'1 N V LL'1 N M m N N O to M W cm y 1n y CL C O Q N �Ny M Nt th (7 M m ✓' O -i n f00 H O < h O O by IQ m O t2 N O t E �o 2 M M O O VI W S-J (O 10 O�t2 O000 I2O O� M V '- M ll� < 1� b bhO f0 M O W N Om W J Q, m m ^ 'n m ^ <o N NN mM �li� ill (V N m^ W 2 M W a W N Q = Z CC 0 N G a O ZZ' CO¢ tpO Ippll�� MA W 6 W m m S O O m m Q 0 m t00 n (7 (D N m O b N W Z = N y m m N m m m Co n � N � m om �v U, ¢ � OZ ~ � Fa0 g z Maw a yy W W n n n n n n n n n n n n n ,n n n [pO b N [O m M �ml M Oi O I� t(V0 �T tO cp tD�Ol O N�l Ol O O v ^ cn 00 O , O N cM�l b O b N W cc U O O r Obf M Rl CJ N Cr'! r V Nb NO N V V V Oee m CJ 0 V O N y ra y O O T_ Q N N V y V V V V V W Q 2 > F Ir L LU W 0 o m M m n m in o o 0 0 o g $ o o o o vl ow 0 0 0 0 o N n o 0 o n b Vf I- O Ol m r M O) to m N 0 M O m m N A N V N a . - N m - N � N W CJ cV m U p Z Q O r N W N O N O r N m N 0 0 0 0 0 0 (mn N [7l O O O O O O t0 l0 (O �N N lD N c"l V c0 1� O N O Ol G1 N N Q{� O O N O M N N N n N .- N U a cc aZ ! O Z ui a1 > cc LU ¢ a w 0 z m z ZZ > O � w > > g m Z m CCOgy(Fm!) we¢U Vl J ca_ �O. wO O 7 c M w a m 5 N a Nzw — W w ¢ w ¢ z � ca J g3F 2OFS0�8 .2?z¢wQ w _ Om = a Sw jMm O ¢ MW 110OU _ m t J m2 ¢ Qr ME Om WzWNW UO O � ¢ ¢ F [ � ¢ bUnWSimO WW ¢ ¢ ¢ O ¢ ¢ WO N mwJ Q aaaw0 ¢ J ¢W O dz QG S00770 Z Z � QO W O5 ¢ ¢ a aO ¢ F LLt7 203: < - r q wF wz W �� O 00 O 0000000 o 0000000000000000000000000000 N LOWr wwwwlnmin t- NmmVl mmMtnymmrnmmvlM UlmmmtnMmmmmmM m t O O O O O O O m V mmrn � m � o �6 n �o d'•-'•-:�i n n b m m o N m O o m r A O N (O N lO N N m b q m N n yn n n n r N t7 cq N N tN0 O N V : V V O N VV V p at v O) Ob N b of p v o m N W v O Cl) W F m O W O!q � mrn ) Z W J W 'N N m m O LL Q LU U) OZZ C7Up a. pVl Z a O W 1moN oo ^ a z 2 J_ F- S cob d W � Oz a O Z � IL w NW � A � � � � � o oCC O m m V N_ V m b O yLLI H L F 0 00 0 . o o o N 6� c 8 N b m y T JCL V N N b b O U Z W W I W b = Om 1 > ¢ d W W y b JO - mm � ai m6 0 J O W Q N N U 2 a N U a z Q w O � W W UQ J NJ N O O ¢ m 7 U r U 0000600 O O mN Ww N mm 1- N m A a aw a N Sp� Iq a o N O N CD �(l O a! N z M a m N w z 0 Qm �Q voi c�v o my oom o < Y r N Q J Uo v o 0 0 0 o a a Q ^ N N N LU Q N j i O m ' M w m O N w }a o N o o e a Z m io Nwr F lu O W J w U w IL ON Q O 0 0NG a ?SOW z OOC o0 0 0� 00000 oe e r Q O 2 m � LLJ Oz ra aZ CCd O J Q W 'O^ w v' w U O O O N O 00 O O O N N O 0 = a N nj [j LL F CC V w a x > r ax O rr o0 0 000000 0 0 w zw w(7 cc a ¢=1 Mm U Zit a O O O N O g O O O N N 7 Q (0 U � N U W y W D z w z w G w aw n � g W m W m L w O w 0 N m U m a U, O W 3 W U 2 J W J w ti m w OJ w U o Ozc5 �K W H 0 3 LL _W _W 2 ¢l 2U a U m Z N j z < W _W _W W_ W_ W_ W W Q J Z Q p p p p p p W O J J m U W J Q Z Q 55J555 W o U) °) W Z = W Q N (nNNN [AN Q N VW W O ~O W W W W W W W W N P ml 2 2 2 p R 2 eo a OAf Z O G N7 N V Q m N M M 0 b m t0 O N ONI r O n N N m d N N M m 10 Vi F V1 5 W AAAA A A A U mN N M N M N C M O O V O O m n a 3 � � � v g a i `` CDT� Of N N O M N O N R n } W N N N N r V CD 0 N N M N N N (D n l0 N P C m M ui W m } vI W O a (D R O N (m0 N N m^ Ol Cl Z O W J a U N N t'J N < N N V 2 7 W Q w N 0 O = z ¢ (7 y p a wOit � mm ooN � pNp m00000 �n �A Z O Z '2 W i (n (n} m N N O O Z ~Q Q m 0- 0 J Q U N W w om `A` 1n� gi (•�i n o o M o o m � O Z O AV V V V Q 4) N m tp LL Q c� V V V ^ M 2 > F- m OZ W pMj m r r H O O O O O O O N uia 01�9 O _8 C.7 m U <Z m o a m m M o o M o o m a Z a t0 N N m m m r Wn J O In 1n N N m Cc mU m t0 r m Ua Vl Z O F J W cc J O zI O Q Q ¢jL w X O D y J z < O U V U w ¢ N z ¢ w O 2w = U � [t] Y 2 QU <.7 _O to tnMMMN 1 O_ ¢ Q W N 0 <000000 n < w2 W_ p, O O cc - Pf- r- r- F- O QwN J 0 W WQ ¢ a¢ ax MM WwaQ a 0 O O a M M M M a (0.7 a w < M 0 a 0 000000 J O F- w w N O LU LLw wwuuw ¢ LLv>¢ CJMUO 4 u ]' J J J J J J J 0 J W O Z 0 J N (7Q07 (07c07c07 (0'S oo= aF om V _ r m A J f- ['J . ?0 N m O O O m Q Vi O O O O O O O Q N c0 Q Pi Z 0 N N 101 O N {O N m Q m N OCTn Z (7 Ol N N V am DQ o (o� m m r �nm inm m �nr myro m Q e LLi(? O d N (7 m r Q Om m LL'1 [Op O Q Y� NLo V a J W rn n n (O A m o H M t0 0 A U �i o of �nQmoc'� r mmQmoo .� Z ct Ny Q m Amy_ t0 V y O N h C2 N N v O m N_ LL. V V a G T IW7 N m m m N r m m A YO'1 N 1Lo W OQ N O N d m m 2 W m ~ n > 22 OJ o v� o �n m mQ (m(om� Q m rncod ooa� m w� Z O W ~a N m N 1! V L�J r N N N r d N W J a-, Y R 7 a W m OxZ ¢ C7 N 0 a ZW O R Z m O `Z �G 4 r N 7 0 O N O N N NLU J r 2 N N N N �O V N 1n V LU � LU OZ ~Q ¢ IL 0 IL J a W W n n n n n n n n n n nIr W Z mv0 " ` � d � m a �-' v `� �Yti � "' 2 a cJ � v d " v 'v v F 2 W a 2 > F 2 O F F m N O Q m O N V O O O O O O i7 U. Z W �n o o m m0 � o 0 ooSo o va W 0 N r m N m N Q r O f N Q (1 N Q O t? cc C3 Dm U H J Za o n `�immn v � omm o _o m r m Q_.Q ao O r o9- V �a U w � J U U W> W a a LL Z w W O 2 >J ¢ ¢ Oy a Zw wN ¢ W m J > ¢ Fa-- � G } K W S dLL dJNm R OJ 0 2 CLO W �¢ ¢ x Z ¢ n ¢¢ Z w r � E- t- DO " a ¢ N U a U 0 0 0 0 U U 0 � U a2 Up m ¢ � 0 - m m a J F O O O O O O N N m w Mzci m ty r N p N N m O O r M OJ O O O O Q_W O N O O O O m M � N m V R N M (O N O CJ N J m r N m n n C)�(] ^r^r r < CJ N m z= (O r m N K r N r m O N m Q m }w IQ N O r R 0 b N N O } n O T ^ M O O V O m N (V M N y Q J w N N O� O n n n n n n n n n n n O M 1(h� dV V ry Q_ V ^ V N Vir N N M tD m N V V V r V Q 0 W 00 O p O O O M N m m m m INn O O < O (O m m m O O O O O 0 M CM L m m h m 0 ClO}�i O O (?O V m N M t? G m V Cl) W Cm Cp p h z O y W l = m N h m M O L 1A N CO m V ID N M N 0 O Ca Lu W J a y ¢ :) L Q w a 0 U 0 a 3 �N Z 0 2 m m o o n F- V Z. �Q N N r Om D N O m O N O N m N O M N z O Z w m V (O O O N �-L N N < r t0 m - V w (n LU � Oz ~Q ¢ IL 0 jr M2 J < y y LU W W (nV 0o Eny mr mnm n mmonS ot] OQ Z V V V N m V W ¢ V V N Ol m J m N V > V F m O F F O O O O O O mmm <yyOh m N N r O m V V y m V O m tp O O O O LL W N N O m N L N Q O O 00I M tY m h f7 N ^N m ir m M V O « N N N M t0 N N m� m U f J �() 0 0 0 o Vf A N tO o tom! m M O� O o h M V M - N W7 m m m r N O O OI O O O O ¢U �Q U U) IL w = W y w y > z WLLI w o y J Q w z J W Y W z w w Q W o O o r 4 a ZW o 2 w y n J z yo m w w " Ozm¢ s QS� a w o M. O 2 y w y m U i ¢ y a ¢ O v v v w y w a w w W Z � LL aZN W wj LL G. U p> LL a VIxLL �� m �y wm Fr ¢ Ommr J O22dLLdd J poi- z O z < w z LL z 2 z o w @ q =0 0 N 0 0 0 0 0 0 � N w LLF Om � � Q LLrw � moan Q LL (n(AZ G LLww ww W w Q LLxaO , JZ Z � tnO F JO (� J � ¢ (ry F J ()(J W F JJJ JJJJ f. Jy- �LL ¢ y y ¢ S UJa (5U ¢ mU2 m (0) OU C) 00 'U(7 (' oo (7 W�� M L DO W a H O O O O O O O O O N m N O O O O O O N M h r M m M O N V < r M t0 O N r N rr u� � � e o .000 m n oS � vS c N m yOr NOf OO mOO m tl m [7 mV N O N O m M m V V V V gyp' V � V N 0 0 0 0 0 0 � 0 0 N Of r N M O r 1A r O N V 0 N m n O r N � •- M O c+1 W F- m 0 W F m M m N r m m n O LL p 0 h Lu O oUF3 Z) 0 y Z ^ a 0 W N m 0 0 0 ^ O O N N J LLI J_ H2 w O Z I-- a0 z IL W W � N �' � o � o u� o 0 o N ¢ IXv o m V h 00 f v v W 2 F m O n v01 O O O N h N O O r r N y O m O � r W W W y y y Z w 0 W W O U � Ogg . W W C a a W U O Z< Zo w O Z d Q F Q Q G F < y y Z y ¢ Q p J J O w o o ZH+w � O W J O y ¢ J ¢ W ¢ J y O y > W ¢ LL l LL 2 F W Z 6. y W a Z F J p 0 y 0 0 a ¢ 00 c� F 0 0 f f7 � o u a9 n P. J{- QW voi voi 000voio 0o voi o 7(7 v v_ o <orn N [D m m in Z O N t2 z D am a sW T T t7 {el ID m Q J W v e o 0 0 0 0 0 0 o e v N v v v = Q cc a OW voi voi o � oo � oN voi O (7 m m e g N j O m l`9 W F- m o 0 0 0 0 0 0 o e J F LL p (n a LU fN O 0 = Z Q Cry U Z— D to a W O S o 0 0 0 0 o e a n H � a Z J F = N} V � �i O ? LLI FQ Q f- d O J z WIL 3 W (D Ul W U r n g � O O O 01(o� ¢ O cc N Z N N y V y OI a F CC W Q .Z > CC U- Zui W .on o � O ovoioN n o ¢UO S 7 �m U f J n n Z Q a o 0 0 0 0 0 o m m F-- m rn QU =) Q U w x I W 3 w z = N U W Z N Z d Q Z N Q W W UJ � m Z W 7 > N U w to w n 0 W S W ¢Q U Z W N O > "' amp ¢ ma rJ w o CCW a w < OzWmvw� m a o W Q W m u W � w w w S Z w C70 a Ucw7wa0ama ¢ S zz Z zr- � LL a Fa z (Uq 2 ¢ Ix ¢ >i Uw y 0 ¢ ¢ m pp0 0 0 0 0 0 0 0 0 n n m r m n o 0 0 0 0 0 o g o q � o0 cs c 000 � t�D OO � c NN�O N(mD_ gm m � m f Z 0 m N IfJ m 0 m 1D N m M I[) N N In N m Z:) am O2 0 000 00 0 0 0 0 0 0 � omo m r -- O ins o M omo ov a .i ¢ N Y N v m m m `� m rn m m e y Q J W O O m O m A f7 m b < r m O m O Vnf O T N r 0 0 0 N !A 1 l m O ZV O N LL'1 r (O Q V v 1A m y N ICl y N Q t01 a o m V v � v q �a V ry V tl C F o 0 0 0 0 0 0 0 0 0 o e o m m o 0 u>0 PnS O O o 0 0 0 o m m '- f W oo oM oOo o �r a opvrnmm `e�i m �n O Y� O N m In (O 0 O m N M N > O m m W M2 J 0 r m>7 Or e Z Q (/ W M m OW e yWJ U ¢ xua O LLI 0 1WG7 a 2Cc OVZ � ,1� O vNZ O¢ 0000000 0 0 0 OO � OmO m rOON �- oM oroO r_ �D (� Z W H ?+ OZ ~¢ a IL 2 J a � y W W n n n n n n n S n n n n n n n n n n n n n n Q w o o M o o m o M o o m o N r m M o m m m ^ o vo o m m Q o O w Z O� O O m O m �- N V 0 $ r o cL o V V cn v v v cy v v v v pm� LL FQ_ V V V V V V V w a x > H Q F F O O O O O O O O O O O m N O I� O O 010 N 00 O O O 00 O ^ LL. Z W O O O O O O O m m O m N r 1� O M N M < M y m N N m �^ m m CCQ f C m U Z a W O N t? m N CM'J N - O f7 Ol Ir f N f7 N M y OC U �Q U r L W y LL Q 7 0 W JLL¢LLJ GUQ Ur ErwdN¢LLp O�jZ WZ-2vwi z_Ul� LLJWy OQ WQ LLJOw WQUy W Or Y 4 NmQ ¢>W ¢F X OMm�l»Sn O 0 W ` yU 00 Y o m E � 2 F- ¢ a LL, J < 0 ¢ owo ¢ t WWU y Z QJFWO � WXYWocJw� yOJa> o o » o rOW LU ¢ W W W W W W W J a Q J Q W W W W W W J a W W W W W W W W W W W W J a 2 J Q 6 0 0 0 Q f J 'U F J Q Q Q Q ¢¢ F J Q Q Q Q Q Q Q 6 Q Q Q F J • N_ N OO N 42 j N N O O m O O O O 1n O O O O O O O m O O O O p O O p O O O O O O N [O n r �- n N O h O (J cl t0 m W N< r O O O O O O O V O O O O N m O O O O O O N m V CO 1� O h N m CA(� N V N u'1 m O O N V V 1n M �{ O CDV Z 0 m �- N N M V w Z J N C N V Q m }W O � n N N Mm N m � 0 (NO Ir' �O � 4 mb V COM � OOi � N � ONN4 m0(7 } O W Q J W n A n n n n n n n n n n n n n n n n n n Cl m O m N N t0 O O O pO�f n r � m h O :eT{ K O O) m m O m M m Z N N M N N O> V T (mil N Omi y y y V COj V N N V N (mil d N 0 N mm Q V m M V y V O V V V V y 0 V V v v p V V Q 7 OLU F pO O N M m M M [O M O O n 0 0 0 In O O p O p O O O N O O S p O p O O O O O O O t00 N N �n rn— oM .- m a„� o C � m W cr m a O OULL, UQ NN ^ mCO (ONR Cm Om<NCml NM Ci N m N W -. LL Z LL =O Cl) Q N W O O = 2 ¢ O U (p (� O (V p { D O W 'L Q O N 1� N m O O O Or [NO [7 O V c7 N O T m d m m N m < a0 o m ER < N 8 Z J F = (A N N N �- LU ¢ F FN W � CL 5 ¢ ¢ ate a LU U) V1 W W n n n n n n n n n n n n n n n n n n mmn n y n W Z N �(Ogyy m N V y N Vy V V V V V m mN C N V (mil V v V V m m y N V tp V C N V y O ` V V N V N LU r= , F- ¢ nn pp O 'Z wO O V (r01� S V O O S O S O n O S 0 0 0 S h 0 0 0 0 0 0 S O 0 0 S 0 Y� N m m M a l t0 M O m 1� n r S �' N r' 1� O N N M m I� N N Mc !� Q M m N M m Q N N N [7 cp �m U y yy W 7 V O O�ml1 m M N (? t^'l N O M T tND N N O m 0 0 0 r (Nl] 0 0 < N r N UQ> f- N Z �cc � m J ^t1 y NlQ V Z N � O w N � JZZ Q = J W cG Z W W z J W W F�LL 2_ XLLX V W O O Z W W j J ¢ W wQ ¢ Z (7 ¢ ¢ W U .�y2 W WW �w z 0O ¢ O M 1 Z LL O m M M Q f/Z—J Z O F Q W Y 2 � d Q w U d 0 O W z ¢ � Q -}' LL ¢ W Z ZMO W W OME m am ¢ O ?.y NOma ¢ °- aU W F `n Q� ¢ Oz `a xFzcn ¢ ¢v' Uawi"OOz z awJ mOw� ? w �¢ �U ¢ M W = W j ac ti f 7 G. Q O D U W C7 W Z F- H U Z O m 2 } }F- W W W w Z Q LL W Z m w W M W yOj Q Q Q Q Q Q ¢ ¢ ¢ Q Q O Y W O Y m ¢ ozw N O O D U d d y m 0 -� J Z M V J O ¢ �' F = co ~ t'� eC .d W W M W 1- a. U2 > W Z � F-md6J. OLL � O W .7 ZLL � Q WW LL2F-lnzZ U Z O O o ¢ o ¢ ¢ J ¢ � � � oLL OO� m¢ ZWwJ � LL � � O¢ J a (DID (DO (7 U' 1- (y ¢ � ¢ UmUOv> wwwOwwC7Z � OJ �a UOOMO22a i v a ooa00000 � m � ITm -q-i V A � W N NN N ^ V A A A A A N mO r (�O (NO (gi�pp O O h CCF V O V V N N O m f m v n m N .- O M W m OtgW �M � �� < e z w -ja e m O LL O N LL 03: UU — � fn Z n a QCSW � ooNm ��o m m Z Z o m a n W J F = N r o W � 0Z a Hap Z WLLI 2 W y W vme mmcmvn A . N m v o o O = v v v V vi ' LL F v W 2 H cr OmoN o(7 o�o[ oom v p N O7 O r O 1A O r r O V� ONi f0 O m 6 n N O ^N m0 N N Ill ^ w h N N �n m V t7 N �W � Z Z d 2 Z O F W x a Wa W alW- H W .63, U N W Q Z O .6y W J Z M j W¢F J i m W 1 O z ¢� LuZ w E = a a w w �¢ � QytiF- i- � LL I- [7 v m ro M JF p 0 0 o p 0 O Ul ymj O O O N V V r z m N O pp M O- M MJ r N z:3 M tl N - n am m x 0 O M < 7 O O N N O O m N A r n }W n v� vmi o o � m � �� rNi � Y �2 oLo ' F N Q J w M o n o 0 0 0 0 0 0 0 0 o O m m rn m m e Iq Ct N N _Q w m m O N N Q. Q 7 Q F O O m O W O O [O O O N N N M O O O O O r �+w r Q h Vf r A N V m N > O m M W CC G FO J N O �[J O 0 pO O tD O<O N y N N M N Orf W Of tD {p Z O fA W Y 7 � CJ N O O ND O N -r S cc! N N to W F F `° "S n n c�i �v �irn ` � N N U R W Q w O iL O ZN Z3 !Q No (� S po r �ryNo �omn N rn o�i o o F W G w N [J O O O O (O W O N O! W N Y V c l f 9 N N N [O W N! N M1 LU � LU OZ ~Q F a 0 J Lu WN W U m o m o N o 0 0 p o 0 0 o m o o a ¢ c H a CIL o e o W a x > O Z~ O O O] O T O O N O N Q O W O O O O O LL LLI(w7 L h Lr R O N N M t00 Q m U W] LLIjI rn IQ a 00 umi UQ 0 O !4 FQQ- W N J U V w 0 a o Z a : ti y W w Q w w > a w z ¢ gw w w z �LLan �r¢ � r o w LL yzow Fw zw '� ?�a� ga a wo Qq r Ej Z LL w Oc�xowc� a �- ? W Wozzw a � w z ¢OZMM _jm n Uq = x w z _ 7 ow N w W IL W !L VLLJ U V V U U U U O O Z UWW < O H W Z ¢ ¢ F- Q Q q q (r ¢ ¢¢ ¢ ¢ ¢ ¢wwwwwww ¢ q w W Q W W q 2 ZFFz ¢ �- Zz r a aaaa aaa0 f. 2x F Xx t- N ILL ? Z LL U p o 0 0 0 0 o a¢ p 0 FO F r i A i a Wc1p7 O M fD F• r 00 lD O O N O Ol 'R l0 < A {D N n m N r M O N m d N d A m m ah m O N v N N m M N N v O r m N t0 CIL O�W. N N m W fO m N O H N V V W nm d NA ^ o a ` Z m m ado T ov v n o b N N aD Q v O m m N N n Qy y V V V V 7 o m �p N o d o cn M N o 0 o tV 0 m m m 0 a? C of r tD m o u1 ao a cF� ^.� n m m m om ^ n ado v V N >m N V V (A aq �• >a1 N 103 10 z J O J tp pi d N d O m O n m O f0 N N O O Q r ¢ N V L m M n O m n � m n n ^ p O ¢ N V V 0 H Q F W a' m m Cr ^ d M R O CO m M N N W N Q N 'IT a^0 M N m n � N b '1 M W Cl)y rL W `8i "v a i N M M �i W O Z F y M N 1p d M V V Q mz � 3 LU N n W 10 m W O m N A IA O N o N Q O Z � y m N M N K F M Ol V t7 V; O Q IL ¢ O Cc 7 O M n M O M M N N V V �m r U F W ncc m NLq O� O00I M N N � CO 7¢ N M W n m VA ^ N w r U ^ ~ W VJ W J 2 H Ir U w N Lu TO N J Co w w N w Z Q m O LL ¢ O O Q ¢ Z Z Z w N W > Nw N -j Y N w w a Q x oul W ZN W LL ¢ O CC Jp¢ ¢ W > > X 2 W2 O W z ¢ O LL U ¢ a m fA m m W W < U w � J O J W J Zww of of J U Z > mo �W > N � Z w W N O 00 O 2 Q F- O XOO O W F w W LL 5 f V U F 0 I LL Y F- W LL LL F Z z 0 r Z m A A Q W t7 m r O n O O O O O O �t�pl m N r m (7 O m N O OJ O^^� mO C'J n m O m OJ mr �Op V Z O (v�J y<N m h V O V O h O O Ori r rI O c O O CJ N Q M m (O N M N N N In N N N r M m m^ ^ 1n N N N A A nN �1; �N u� r V O N Om(7i m 2 N 5 r W A A A A A A A A A A A A A A A A A A A Q V r Q m O (7 In , N �n Ol < n VJ Ol N (y m m p m V O {p Q Z m r m M C7 O r O 1 m(? m m O _ f�7V [O 1n O ��yy O OJ N �({O� O! y (7 M (7 N n U r a y N O V O V ^ V V O V N V V V V V b V ro V V b V (p 1 > CY v W H W y M R o rn o 0 0 0 o m m o m m o b m o m m m o o r m R R Z V W F orno � ro r o �oo� min �i � mN m vN� r� a m O Q J U W .- Cl c,5 m C7Ym � < m (DN ON OI tO m R �mm h W LL = O p Q m zz N N N N m M m O N N IO m Z = Z m Ir OUo H N Z R r O O m O N I t 0 m r R ['J O l O n 1 l l m r N m m m 0 O] m a Q ,rt W J r ^ [O N N (O Q O [O ^ V Q O m O ^ W N 'l N m O N Z V a0_ r r CO m m O " pr_ �n O pN_ y_�mn Ol m m m m In O N O W Z UI O Q ^ M Rl !O V V b [O I`(7 N T (7 Q l0 O O O N N Fl [O W w � 1- �a N W CD c Z IE0cZ = G h [7 n b m N r In Ol O Ol W r N O N Ol m LLJ yy r _ n - NO V) Rl W O NIn r cl = m tJ KrOW7 W} m <4 N N W O mm mOn 1(nD Oy[O ym qOb Q Lu LL IL W A A A yA A y A A mA A A p A A A A A �. p Q O O N m m O < m R O am0 m M m d[m0 N N t")pN � S m O O Q OlN [7 V m V O^ V 'R N �'at O(OVl (y m c] a7 cvl r O V V V V Q V V V V ^ V Q Z W pmj O m O O O O O O N R O R m m 0 a") c D m m I n O l 1 D m b m r r O �Ny W m rn m al N o b n V m r r n In r m m O4 v f tO m m rn O N � � R .- � m^ � N � �m U ~J O r m O r m 1 n O R A W W m m N (l y ^^ m m R m y m (D O m m m Ol (7 N N ON r min m � R [D m ^ mr_�_In mR' N InN N r rO �(7 N m N Sm f V V cF N N Lei m minN c'� Q ¢ wLLI J m > C LU 7 } 2 0 U a OO W Z y W W W J 2 o O Wye z Q w a JO J > 0 W m m 0 i-- w W ¢p¢ m O O W Q y ¢ ¢ LL 2 W W y N N m = Z w p�p m W U W m o W¢ pUp W � } F m Q g ¢ U z x m J W -� W N J U e b¢ W U u y m 0 W W o z . m m Q W l�U Z ¢ U U U\ w S LL m 4I ¢ ¢¢wmw} ¢� �- W}N LL 0 mm J � — LL eZ(�� ¢< OoyUZ LL W ZZZZZZ Y W O O W m 9 O w m w a m a O w ti ti(n w m ¢ O w LL 3 m Q Q S Oo > wo- � z <= zLL o(DOC-1 00 r Ommmmmm UUUUUUU P U OO w w mcy - < m ^ p 00oo000 o O ,a ,em ,a . o F- i- F- t= 0 V) LL LL m m W � U o m W W F w U U U U 00 2 LL LL LL LL w W W 1- �[ Y Y Y Y Y Y F f N A a , t J F- Q Of Iq O It O OO S N O n O O S ID Cl (O r O Q Q tOOO�Om � OOI NO N�OO�O QOOO �O SmOOMf O O A ¢ [O N M tD N W Ori N Q 2 m O �N M O m Q 2 Q y Y N N (J 6'1 a> Q Q N Q N h N V M m O N y ^ v 5 W 11�O A A A mm A A ppA A �Ay o A yA p y A A A A p A A A n O V M ^ 0 N S Q M Q h m O Q O [7 m H N O r O Q O] fM0 O M ONE O LL} O m m V N ¢ vN (V0 v v ��� � �I v � �Y dtY v v � d ti v M M i W � H W J_ m pBOpp ��OO p Svp� pcp p p U W O N N'Q W �ONNO V Q �tpS N O O m N N Q N S O N N S N O N S S Q H 0 O LL J U U� NM mN f7m N CJ ('I�- QNN ^ d U) O C W a N Z = Z Cc LLIm 000 mm y [p ccpp n W a y J N N h N O m O 0 0 N O tmO of O lm'J N Q m N Q Ol m Omf O 0) O R S h W W Z_ O Q [O N M � N r N ( N �- V N(7 ^ ^ W M v w MOO a a a a R m m o O o oo N o m o 0 0 0 ^ o n N o o em o oC; S o o c°Di Q ¢ m m r o W om K m Q W O O Y LL p LLy W aQ W A A AAyAA A AAA A �OA AAAAAAA n O m t7 u0'1 N n O N � [")pQ O �O t00 N N O Z Q V NM MN V y f30fON y V r r� y V V N 1� LL ¢ <' v V V V d v 4 rr� z W g �o 0 00 00 0 0 0 S S S S S n S o o n o 0 0 0 0 W n S N N m In O CJ lO N M O M r S O O W V m_ � m N N d M m r V 0 7a N U 16 U) Z W a x ¢ m o � z z W 2 m Z W F ¢ w W ¢ w U O ¢y ¢ o m a Z U(a' F Z ¢ U U 6 y N Q W W U F°' Q<w ~ 1 IA O Z_ W Z Z Z W O J =iwzn ¢W N N N W - W _Zm W F- m60 O O. > m yLLI 0 N Z OU d W W U W Q Q < W ¢ W 'J C�. O m Z X O m= Q N Q W O Q O y W 'O aN0owa Z n > W F F Z d ¢ 3 Q�WL m W -a W W(7ZU ¢ ¢� QZQLL W � Z� Wm } W W� M W to W `� M =z 2 LL O ai� a ¢ p2Zw3= z a z w Oin�Wj �aaO wa U ina3 � aF- ¢ Q o O Qom F2J ¢ � Z �� ¢=¢ WUCU � W `ZOOZ wmIm < > ¢¢ W W O O w mODUUR O W W Y =J QOJ W W W=EWocuoan M ¢ F' LL 9 ° j� } f ! § u & § § § - \ K § $ k # �§ LLI k E3 § cc A§ az � \ B a $ m CL /zk� § IL c 2 ) § ; ; 2 p _� k a 2 a 2 LL § IL \7 � LU R k LU q§Rm \ U m cc ) § ® ( k ( §} j ( k\ g m ) ) * 2 ; : ; § §§ k ) ) , § § § ; Ew R | 0 o } / ) } / Page: I PALM DESERT RECREATIONAL FACILITIES CO STATEMENT OF CASH FLOWS FOR THE FOUR MONTHS ENDED OCTOBER 31, 2001 CURRENT MONTH YEAR TO DATE CASH FLOWS FROM OPERATING ACTIVITIES NET INCOME<LOSS> $ 7,856.55 $ <74,003.65> ADJUSTMENTS TO RECONCILE NET INCOME<LOSS>TO NET CASH PROVIDED BY OPERATING ACTIVITIES DEPRECIATION 335.06 1,340.24 ACCOUNTS RECEIVABLE <11,015.80> <5,932.01> INVENTORY <495.36> <55.24> OTHER CURRENT ASSETS <6.26> 804.96 ACCOUNTS PAYABLE 68,064.31 116,677.30 OTHER CURRENT LIABILITIES 20,789.90 20,323.58 TOTAL ADJUSTMENTS 85,528.40 59,155.18 NET CASH PROVIDED BY OPERATIONS 85,528.40 59,155A8 CASH FLOWS FROM INVESTING ACTIVITIES CAPITAL EXPENDITURES 0.00 0.00 PROCEEDS FROM SALE OF ASSETS 0.00 0.00 NET CASH USED IN INVESTING 0.00 0.00 1 . ASH FLOWS FROM FINANCING ACTIVITIES PROCEEDS FROM LONG TERM DEBT 0.00 0.00 PAYMENTS ON LONG TERM DEBT <517.51> <21054.63> NET CASH USED IN FINANCING <517.51> <2,054.63> NET INCREASE<DECREASE>IN CASH $ 85,010.89 $ 57,100.55 SUMMARY CASH AT END OF PERIOD $ 172,147.31 $ 172,147.31 CASH AT BEGINNING OF PERIOD <87,136.42> <115,046.76> NET INCREASE <DECREASE> IN CASH $ 85,010.89 $ 57,100.55 UNAUDITED - FOR INTERNAL USE ONLY. ;S! � m ro P. M o m r v o m o n o O N o N 7 N v N M m N v N ^z m m t {O m A OF} P m N n m rm M o ^ w v W y f0 O C 0 O N V N n O O j U V vmi OO t0 O< O ONi,m M N m A Z m Q rn V V V V v V V ^ I 7 � o m O �D Mtn voiv M A O p0 fG m O O o r rn m T iD o b N O 1 N n N N tD ai IND uj U0 �m V v M S W W Y� f m n H m o J W N N o eD V 0 rn o A N m S Eb0 U Q ry` n '� N VI r N m O O V] LL F aa^yD W N �Q Z W Z a G n n n a Q ~ W mLL, CO w W U) W m b N N M N N N N M U Ls = y r b N O N N - V � Z0 r=a �¢ N W WNA N A N 1! A r rn � m . O . A Fi W C Z C N V V V C O j = ; V V V V V V Q IL � A O O t 0 O W (.1' m T a0 n o N N N M N CCm �D N N ? c4J a D N r W N N m ' V V U v -n- m OI o rn N M m m O N o W 7 W o b N <c m air V M M O LITN N C {END OI Q N N N M O f N V V U ~ W cn W W w p J ~ ¢ a s U N In WJ fq J °a u� w y w W J w w w C7 w a 7 J y Z O 7m w CC W m x W LLI CC o UJ � WwF 2 am y W O ZCC > Z JO Z U U m 0 o U O OO M �a. Z s v a M m n O n O O O O O O M (O N r m M O m N O M Of O C7 n m O m M n O Q N V) a0 rLci O tp m M �p O� O� n ^^ mm M ^ OI t7 m a7 Z Q O_N Of N Q pT V < mO_h Q yO Q�r r b O M O_R M m ¢ m OOI � N 14 M m N N r (n�J � m m N � M N ,4 N m V M O M N M m in Q O �(l M O (7 i(1[1 IQ m of n n < N O Q m O O O O 01 M m O O N K m V OO O m e{ M r O Q < < r O m m O � O N < t 0 � W y � C l(� n � O V N M m N N N T O � i5 0 p V n n n n n n n n n cm �n n n n Omu� Omo mo rnm m m M ^ 6 m -- Nmom n n n s e mnMv �n � V p) m M u'i v v V V N V m f V V V V Q V V V V m V y > V ^ V V W W E m) J o J a W F H O N O m ^ O 0 0 0 0 N O O m O t0 O �_ Q h t9 0 m OMf N O Z LL j W O (O m V V lry n M(7 tO N Yf N (h Q �- n M ^ 01 f N Q N w Q W yZma m f a. z cc Qco n n �p p _ m m _ d Z Oym O N h O r N N T t0 M O O M n r K �_ O N m A � vMi ~W CS W J V M � m �n mev �n rM �n Zy O ¢ a oS r V a« a.i uiow r m o7r v�d Z V _ V W N V V Q t'J In N M N QLLI W R F ¢ W On z w G�W � Fg . VC W 0 y {p Nt+l mV �<vFOWf NN ran OCl� v Cli W OW N - Nm mym NM Cm6Wm� m00 m O � LL J W ¢ '=Q. W n n n n n n n n n n n n n n n n n n n n n n n I"' N m m A N N Omi O r O N[00 amp yNj Z M N n r N < V m O m M n � v M Q N of d' m r Ml V m N V V < Ol � V' N v •� v V � Q � N Vm V V V V V V V U. v v z w 2 N— ^ W f' m C7 W m] � m V) r � N ��N '- N m V) � �m J Z a r N V O m m O O Ili N ty N N h N r OI O (D M m n N 10 yV < N M OyI (n� OI O M O W n r C'] W In Q M m r N C OI A 1n O n O M 10 (7 V ¢ Q N 1 n ¢i C6 I N [7 t7 N N N 7- — f N N N [D .-N 10 cc Lu J > Z O LU m > (7 > C ¢ O U a O W Z so W W W J J 0 0 !7 w ¢ Q w CS J J Y LL ¢ W N OQ�M > � H (7 � 0 0 9 q u�y W Z z w z ¢ W ¢ O O W ¢ > ¢ u_ Z W W m N y m S U W J m W O w m W Q m W W T H m a a J U U U Z S J m W W J W ¢ W F m W� wwm O W w 0 0 m m Q W m w 2 LL J 3 m f- m Q N O m m m m J O O J 4'1 LL m m J_S U J ¢ O O D U W J W W W W W W W Y S OO� wa � z ¢i �am ONU' (mJ (7C70 Ommmmm m Ow�c2J000 U OOwwm0 - 01- < M = 0 0000000 O Ommm =a maw O � � t=F� t � O y LLLLmm W J § UOm W uLL f LLOOOOOU Y- LLLLLLLLLLLLLL H YYYYYYY 1- � N d . e0 A Or Q W O O O O O O O O O V O O pp O O O O O N O O W 0 0 0 0 0 0 0 0 m O O O O po O O O m O m 0 0 0 0 N O m N O N � 0 0 O O O O m Z Q m O O m m O O m O N_ Q m ^ m ^ r �- (7 C 7 N N N m ^ m m R V ^ Of (7 m N W N 1� N A 00 V tmON OtmO �S S tN0 V N hS� O m V m In N m I1n m T N N H N m V aN J r O O w n n pp n n n ((((�n���J] n n n n p n� n n n n O cm a V V N O O N (O O S f7 v 0 0 0 V N N N (7 O V N O O m Of (O v W W > F m > J U 00^pC7 Or A WW pp 0O Sr SS O O ^ Q LL J d Q C N r W W aL y C N C O Z = Z Z OU _ a, Wy 0 omm M rnorn v� ommoNmmomc� m Nmom om oNo m m �rni a,< (y1� Z J NCi Q m WN ' Z 7 WU) 2OV wW Z mz a co z S = G O N O N m LL� O to O N [2 O O m to O m O O m O! ('� i� O V O 1� O l� m T 2 (p 'W O W v �t^l r ��o `add o �m� u� ly\ m W M yw N y 0 aH 5,6 � Qo ^ o� m ^ V m^� 00 O OT NM 0^ O^ 0^ m0 m a O R c4i Nd V mcyio � nN � o� Mn m ^ v v v `e `3 '3 m IIL m l L > U 6 T mm . m n N n ^ M m W tO (7� < [`r'J O A O UQ m O ^ A tU W N (7 V h V N O C] n O U w w Z W a N O W wlu xw 22(n Z W f Q N W Q W U U Q w W F- O to -O m O U Z W Z Q Z0 3 W W O �. Jm ZOUQ W N -MW W 1 Zw W V- N U U O 1 w [\JdOQw W Z W U W — o! Q W HO 2 Z K O Ww to O O F W d Z 2 aN O U w F J Y1 H d > Z H W Q Q W Z _ ma N� c7U ¢ O Z i/ W(n SFm W W W W w W NN W C iD W 0 m -� W C'1ZF - W W m W UJ-E � [A W O � � Q N J w w 2.W M 2 Z — — U' Q O J �6 = Z W W Q ZFO ��(7 W LLOU W ¢G_ OOOQ mILFQ W ? OZa f O J — Q W U Q on W M O O Z W �I = Q> Q M W W Q 0 w M 7 0 0 0 W O W I Y J J J LL Q O J W W W�m w O O U O m d Q Q R LL �i m m a J F z O O O O O {y O O z a m v e ¢ o a p o c m �eyo F ^I I I I O I p O 10 0 O w N U O U cr WO ¢ I I ^I ml W > F m J M N W o V WF Z U.ZO W c' I I I I S $ o o m J (n c QU) m ^I 'I - I I w Oy0 a ir Z o D 7 yWOZ �a I I I pl of 8 ui ui a0 W I I I w maC ¢ G y '2 �� I pl NI HI p a:W N y ^ L h LU O W ~ y I I ^I ^I Q = ¢ a I pl NI NI p 0 O O > I I I I NI m I f f W C7 0 o p p m � 1 U I I I I (w I V a W NI NI N m p O a I I O I I O W I I z ir - W W Z h �+ O z p w > z w a w z az ¢ o w a u Nw �- Z zw a > ¢ O as U Z w _O W w W O J LU H J J w C 2 Z ~ ¢ y O R O D U u~i LL w E U¢ w a c=.) o = z� z 9 a¢W Ww ¢ w O C.) li Z O a O X x� F- f O p f Fa" O . . . . . . . � § ! . HHMM 111111111111mt �}�' ! !! , . $ z . . U . . _ . . . . . mmmm+m( « � / ! y mmmmmm . -- - -. .-- - - - � � . { ; mmme • ilia } . . m m � ©mmmmmm« •i . . - § . ! mmmmmmms ! : ! .. �| q! B] mmmmmmmmmma � ±! ! < � 'ai 4 i 3 a i i f� 4s _ 1` 3 1� € P B; 1iAlt=_ax�aa � g 's� t a� �8_+AARAA9A^J Y-AAAABiA� r SRAAAARAABA9i^.A Ai A__A_B9A, 6 :§=3 >ggaaaaaa aH RR0HIIHX%R9aRApp aORRaA � y 0 0 0 0 0 0 0 0 0 O O O O O O N � ... . .. . . .. . . . .. N m W N 0 0 O OO m00000c o00 0000000 S G 3OOoo. Ooop boo oopo. o op Q N N N N l7 m m m m m m m m m P P P P P 6 N O O O O O O O O O O O O O O O O O O 0 N O m N O N O O O N N O O O p O Om m W O m O m N N P IO <O O N n 10 OI FJ O O Q O O O m M m P N r m N I M l7 m P P P N .. . .O O . .... .O O .. . FN O m O N fp N h O m O O m O P O j O m O m O M a m m m rn n m W O n ami, N t7N n riri vi riMrioim m e 6ui ea CI N {O m P N N O OI 1p � N P r p1 m T N N o O V A N iA g O d r f0 0 N N N m P O N N V N N m m m r W m m m 0 0 0 m N N(O O 000000000`p00000 000`a m N N N N N N N N N RN N N N N N N N N T q C d O d C N O O O N N O O O O O N N O 00 00 n O O N O C O V N m N m N m 10 O O N O U O Y c)P M eG P N Q N V V P N N C Vj j ¢ O > ¢ N C WO w> w ¢F = O A w N a W W W f F U ¢ LL W J N D: O J J 0 LL) LL m Z Z LL d ¢ 2 J H J m LL IL m N 0 ¢ OUEU VYm NLL 0m 3 J C Z Z W LL W N m J LL U C q O m M .D 0 J p ¢ S S d 1. 11 d a r . LL S U S F LL f ¢U H F J Q f F F N o UwN¢F.1F N<m Um(n NS wNN41 0 m ry U Z Z W m ¢ m Z U Z J W O IY > N ¢c m000w¢ wowo > z0000000 c y U LL LL 2 2 Z N LL Z LL M ¢ LL LL LL 6 LL LL LL '- A �b-1D m¢6¢ ¢J¢¢O ¢f O¢¢Q W Q¢¢ a m C 0 N �J Om N V ✓ > n 0 10 ¢ N p N N o p = q0 T N O O !N O tOV IV N O ! m N N N m m S O N O �� �� QQQQ QQQQ QQQQ QQQQ<<QQ QQQQ QQQQ QQ QQQQ qQqQ QQ QQQQ QQQQ QQQQ QQQQ C N i-1 c U N ¢ 6 Q Q ¢ 6 Q Q ¢6 4 0 0 0 ¢ 6 Q 6¢ v o u n }J o .c mm cm m m m m m f « « a< < a m aw L qO N U N000Uo00000U0000000o Ep, `o c � c c m O Z ~ O W EZLL LL > Q❑ O OOLLVO 2Q X ) ¢U U X > J Z z m m m Z C ' N O W r m W m O O o m m (p m n m m 10 U MN N CI OI P Cp'1 f f N m M N Exhibit A $15, 695,000 Palm Desert Financing Authority Tax Allocation Revenue Honda (Project Area No. 4) Series 2001 Maturity Date Principal (October 1) Amount coupn Yield 2002 $ 150, OOD 3 .50W 2. 0011 2003 150,000 3. 50 2. 10 2004 160, 000 3 .50 2.35 2005 170, 000 3.50 2.55 2006 165, 000 3 . 50 2.75 2007 175, 000 3 .50 3 . 10 2008 190, 000 3.50 3 . 25 2009 185, 000 3.50 3 . 50 2010 195, 000 3 .60 3 .65 2011 200,000 3.70 3 .75 2011 705, 000 3 .75 3 . 75 2012 210, 000 3 .80 3.85 2013 225, 000 3. 95 4 . 00 2014 225, 000 4.10 4.15 2015 235, 000 4.20 4 .25 2016 240, 000 4.30 4.35 2017 260, 000 4.40 4.45 2018 275, 000 4.50 4 .55 2019 285,000 4.55 4 .60 2020 295, 000 4.60 4 .65 2021 305, 000 4 .65 4.70 2022 1,895, 000 4.70 4.75 2022 315, 000 4 . 70 4 . 72 2031 2,440, 000 4.80 4 .90 2031 6, 045,000 4.80 4 . 85 A-1 SO'd £S:LT TOOL ST A0N Ob48£62898:xP4 soimn mamma , ra