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AC 03-21-24 Agenda PacketCITY OF CUPERTINO AUDIT COMMITTEE AGENDA 10300 Torre Avenue, City Hall Conference Room A Thursday, March 21, 2024 4:00 PM Special Meeting NOTICE AND CALL FOR A SPECIAL MEETING OF THE AUDIT COMMITTEE NOTICE IS HEREBY GIVEN that a special meeting of the Audit Committee is hereby called for Thursday, March 21, 2024, commencing at 4:00 p.m. in City Hall, Conference Room A, 10300 Torre Avenue, Cupertino, California 95014. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting." SPECIAL MEETING ROLL CALL ORDERS OF THE DAY APPROVAL OF MINUTES 1.Subject: Approve Minutes of Regular Meeting on October 23, 2023 Recommended Action: Approve Minutes of Regular Meeting on October 23, 2023 A - Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Committee on any matter within the jurisdiction of the Committee and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. NEW BUSINESS 2.Subject: ACTION ITEM Appointment of Audit Committee Chair and Vice Chair Page 1 1 AC 03-21-2024 1 of 98 Audit Committee Agenda March 21, 2024 Recommended Action: Appointment of Audit Committee Chair and Vice Chair Presenter: Jonathan Orozco, Finance Manager 4:15 (15) A - Staff Report 3.Subject: INFORMATIONAL ITEM Receive the Committee’s Roles and Responsibilities (CMC 2.88.100) Recommended Action: Receive the Committee’s Roles and Responsibilities (CMC 2.88.100) Presenter: Jonathan Orozco, Finance Manager 4:30(15) 4.Subject: INFORMATIONAL ITEM Receive PARS Presentation Recommended Action: Receive PARS Presentation Presenter: Jonathan Orozco, Finance Manager, and PARS 4:45(10) 5.Subject: INFORMATIONAL ITEM Receive Chandler Investments Presentation Recommended Action: Receive Chandler Investments Presentation Presenter: Jonathan Orozco, Finance Manager, and Chandler Investments 4:55(10) A - Presentation 6.Subject: INFORMATIONAL ITEM Receive The Pun Group Presentation Recommended Action: Receive The Pun Group Presentation Presenter: Jonathan Orozco, Finance Manager, and The Pun Group 5:05(10) A - Presentation 7.Subject: INFORMATIONAL ITEM Receive Moss Adams Presentation Recommended Action: Receive Moss Adams Presentation Presenter: Jonathan Orozco, Finance Manager, and Moss Adams 5:15(10) A- Presentation 8.Subject: INFORMATIONAL ITEM Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Recommended Action: Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Presenter: Thomas Leung, Budget Manager 5:25(10) Page 2 2 AC 03-21-2024 2 of 98 Audit Committee Agenda March 21, 2024 9.Subject: INFORMATIONAL ITEM Budget Format Review Recommended Action: Budget Format Review Presenter: Thomas Leung, Budget Manager 5:35(10) 10.Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2024 Schedule and Workplan Recommended Action: Receive the proposed Audit Committee 2024 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:45(10) A - Proposed Audit Committee 2024 Schedule and Work Plan STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City’s website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Members of the public are entitled to address the members concerning any item that is described in the notice or agenda for this meeting, before or during consideration of that item. If you wish to address the Page 3 3 AC 03-21-2024 3 of 98 Audit Committee Agenda March 21, 2024 members on any other item not on the agenda, you may do so during the public comment. Page 4 4 AC 03-21-2024 4 of 98 CITY OF CUPERTINO Agenda Item 24-13041 Agenda Date: 3/21/2024 Agenda #: 1. Subject:Approve Minutes of Regular Meeting on October 23, 2023 Approve Minutes of Regular Meeting on October 23, 2023 CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™5 AC 03-21-2024 5 of 98 Page 1 Either way.City of Cupertino Audit Committee Regular Meeting Minutes October 23, 2023 CALL TO ORDER At 4:00 p.m., Chair Chen called the regular meeting to order in the City of Cupertino Conference Room A, 10300 Torre Avenue. ROLL CALL Committee Members Present: Chair Angela Chen, Vice Chair Sheila Mohan, Committee member J.R. Fruen, Committee member Laura Hammer, Committee member Sophie Song City Staff Present: Kristina Alfaro, Thomas Leung, Janet Liang, Matt Morley, Jonathan Orozco Absent: Guests: Carlos Oblites (Chandler), Colleen Rozillis (Moss Adams), Will Rogers (PARS), Ryan Maxey (U.S. Bank), Rick Rosenthal (U.S. Bank) ORDERS OF THE DAY 1. APPROVE MINUTES OF REGULAR MEETING ON JULY 24, 2023 Chair Chen motioned with an edit; Committee member Hammer seconded. No public comment. The motion passes unanimously. POSTPONEMENTS ORAL COMMUNICATIONS OLD BUSINESS NEW BUSINESS 2. Receive OPEB & Pension Section 115 Trust Performance Report for the Quarter Ending September 30, 2023 Rogers provided an overview of the report. Rosenthal provided an overview of the report. Committee member Song asked what is the impact the war in Israel will have to our portfolio. Rosenthal noted that at this point in time he cannot say but it does create some uncertainty. Vice Chair Mohan asked if there are any plans to make an adjustment within the equity portfolio or to increase the fixed assets portion of the portfolio. Rosenthal noted no because equity is more favorable than the bonds. No public comment. 6 AC 03-21-2024 6 of 98 Page 2 3. Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2023 Leung provided an overview of the report. Oblites provided an overview of the report. Committee member Fruen asked if he agrees with what USBank said that we are not headed towards a recession. Oblites noted that if there is a recession that it would be headed towards a minimal recession which would be barely felt. No Public Comment. Committee member Fruen motioned. Vice Chair Mohan seconded. The motion passes unanimously. 4. Receive the Internal Audit and Fraud, Waste, and Abuse program update Rozillis provided an overview of the report. No public comment. 5. Review the OPEB and Pension Trust Investment Policy Orozco provided an overview of the report. Vice Chair Mohan asked if the difference between the two numbers is due to strategy. Orozco noted that the vendors have their own actuaries but every 2 years they will do a full analysis and in between they use a roll f orward and assume the same assumptions. Orozco added that this year, they made changes to the assumptions that people are living longer, retiring later, investments not doing as great, and use that to plan the City’s liability. Vice Chair Mohan asked what the difference is between this policy and last year's. Orozco noted that there was only an update to the asset amounts and Rosenthal’s contact information. No public comment. Committee member Fruen motioned. Committee member Hammer seconded. The motion passes unanimously. 6. Receive the Budget Format Review Leung provided an update. Committee member Song asked where the budget discloses the revenue-sharing sales tax agreements. Leung noted that the budget accounts for the net sales tax revenue. Orozco noted that accounting wise and how it is reflected in the ledger it is net. Alfaro noted that the City is required to do that because there is confidentiality related to sales tax, and if it is disclosed, the City would be in violation of confidentiality. Chair Chen asked if the development revenue estimate includes sales, property, and hotel tax. Leung noted that it would depend on the type of development; if it were a hotel, it would generate a transient occupancy tax. Committee member Song asked if we could disclose how many revenue-sharing agreements there are. Alfaro noted that we have 2, and they have gone to City Council for approval, with the agreements being able to be found online. 7 AC 03-21-2024 7 of 98 Page 3 Vice Chair Mohan asked if the development revenue is an anticipated plan and why the budget would not include it. Alfaro noted that it is risky. For example, we budgeted the revenue for Prunridge being sold two years before we received it and had to come back to reallocate dollars because we did not receive the revenue. No public comment. 7. Receive the Annual Comprehensive Financial Report (ACFR) and AUP Update Orozco provided an update. Vice Chair Mohan noted that the ACFR was late last year and asked if we would face the same situation this year. Orozco noted that we will not be as delayed and noted that it will go to Council in February. No public comment. 8. Consider the Audit Committee 2024 Schedule and Work Plan Orozco presented the committee's work plan. Chair Chen proposed to cancel the January 22, 2024 meeting and create a special meeting on January 29. STAFF AND COMMITTEE REPORTS Chair Chen requested staff update the Audit Committee with City Council approved financial changes that materially affect the City. COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT The meeting adjourned at 5:49 p.m. Recording Secretary: Janet Liang, Management Analyst 8 AC 03-21-2024 8 of 98 CITY OF CUPERTINO Agenda Item 24-13042 Agenda Date: 3/21/2024 Agenda #: 2. Subject: ACTION ITEM Appointment of Audit Committee Chair and Vice Chair Appointment of Audit Committee Chair and Vice Chair Presenter: Jonathan Orozco, Finance Manager 4:15 (15) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™9 AC 03-21-2024 9 of 98 AUDIT COMMITTEE STAFF REPORT Meeting: March 21, 2024 Subject Appointment of Audit Committee Chair and Vice Chair Recommended Action Appointment of Audit Committee Chair and Vice Chair Discussion Background Audit Committee nominates and votes on Chair and Vice Chair on an annual basis. Sustainability Impact No sustainability impact. Fiscal Impact No fiscal impact. _____________________________________ Prepared by: Jonathan Orozco, Finance Manager Reviewed by: Kristina Alfaro, Director of Administrative Services and City Treasurer Approved for Submission by: Matt Morley, Assistant City Manager Attachments: 10 AC 03-21-2024 10 of 98 CITY OF CUPERTINO Agenda Item 24-13043 Agenda Date: 3/21/2024 Agenda #: 3. Subject:INFORMATIONAL ITEM Receive the Committee’s Roles and Responsibilities (CMC 2.88.100) Receive the Committee’s Roles and Responsibilities (CMC 2.88.100) Presenter: Jonathan Orozco, Finance Manager 4:30(15) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™11 AC 03-21-2024 11 of 98 CITY OF CUPERTINO Agenda Item 24-13044 Agenda Date: 3/21/2024 Agenda #: 4. Subject:INFORMATIONAL ITEM Receive PARS Presentation Receive PARS Presentation Presenter: Jonathan Orozco, Finance Manager, and PARS 4:45(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™12 AC 03-21-2024 12 of 98 CITY OF CUPERTINO Agenda Item 24-13045 Agenda Date: 3/21/2024 Agenda #: 5. Subject:INFORMATIONAL ITEM Receive Chandler Investments Presentation Receive Chandler Investments Presentation Presenter: Jonathan Orozco, Finance Manager, and Chandler Investments 4:55(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™13 AC 03-21-2024 13 of 98 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com INVESTMENT REPORT Period Ending February 29, 2024 City of Cupertino 14 AC 03-21-2024 14 of 98 SECTION 1 Economic Update SECTION 2 Account Profile SECTION 3 Portfolio Holdings SECTION 4 Transactions Table of Contents As of February 29, 2024 1 15 AC 03-21-2024 15 of 98 SECTION |Section 1 |Economic Update 2 16 AC 03-21-2024 16 of 98 Economic Update    Recent economic data has shown above trend growth fueled by a rise in consumer spending and a continuing healthy US job market. Inflationary trends are subsiding, but core levels remain above the Fed’s target.Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will loosen monetary policy in 2024. As expected at the January meeting,the Federal Open Market Committee voted unanimously to leave the Federal Funds rate unchanged at a target range of 5.25 -5.50%.Fed Chair Powell signaled that the federal funds rate is likely at or near its peak, but discounted market expectations of a rate cut in March.We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. US Treasury rates rose across the curve in February on higher inflation and a more hawkish Federal Reserve.The 2-year Treasury yield surged 41 basis points to 4.62%, the 5-year Treasury increased 41 basis points to 4.25%, and the 10-year Treasury yield rose 34 basis points to 4.25%.The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at February month-end versus -30 basis points at January month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was -90 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -113 basis points in February from -146 basis points in January. 3 17 AC 03-21-2024 17 of 98 Employment -400 -200 0 200 400 600 800 1,000 MO M C h a n g e I n T h o u s a n d s ( 0 0 0 ' s ) Nonfarm Payroll (000's) Non-farm Payroll (000's) 3-month average (000's) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Unemployment Rate Underemployment Rate (U6) Unemployment Rate (U3) Ra t e ( % ) The U.S.economy added a better-than-expected 275,000 jobs in February,but the prior two months were revised down by 167,000. Leading sectors included healthcare and leisure and hospitality.Job creation remains healthy,with the three-month moving average payrolls at 265,000 and the six-month moving average at 231,000.The unemployment rate climbed 0.2%to a two-year high of 3.9%in February,signaling a resilient,yet cooling labor market.The labor participation rate was unchanged at 62.5%,remaining below the pre- pandemic level of 63.3%.The U-6 underemployment rate,which includes those who are marginally attached to the labor force and employed part time for economic reasons rose to 7.3%from 7.2%last month.Average hourly earnings rose 4.3%year-over-year in February,down from a 4.4%gain last month.Employment remains strong by historical standards, but recent data suggests a gradual downshift in the growth of the labor market. Source: US Department of Labor Source: US Department of Labor 4 18 AC 03-21-2024 18 of 98 Job Openings & Labor Turnover Survey 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Job Openings Recession Historical Average In T h o u s a n d s ( 0 0 0 ' s ) The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS)declined to 8.86 million in January,compared to a downwardly revised 8.89 million in December.Job openings still represent a healthy ratio of around 1.4 jobs for each unemployed individual.Fewer people voluntarily quit their jobs in January,indicating lower confidence in finding better opportunities.While the current level of job openings remains elevated from a historical perspective, the trend is decelerating. Source: US Department of Labor 5 19 AC 03-21-2024 19 of 98 Inflation 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Consumer Price Index (CPI) CPI YOY % Change Core CPI YOY % Change YO Y ( % ) C h a n g e 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Personal Consumption Expenditures (PCE) PCE Price Deflator YOY % Change PCE Core Deflator YOY % Change Fed Target YO Y ( % ) C h a n g e The Consumer Price Index (CPI)came in higher than expected in February,increasing 0.4%month-over-month and 3.2%year-over-year. The Core CPI,which excludes volatile food and energy components,was up 0.4%month-over-month and 3.8%year-over-year in February, falling from 3.9%last month.Shelter costs remain elevated,accounting for about two-thirds of the year-over-year increase.The Personal Consumption Expenditures (PCE)Index headline inflation increased 0.3%month-over-month and rose 2.4%year-over-year in January.Core PCE,the Federal Reserve’s preferred inflation gauge,increased 0.4%month-over-month and continued its deceleration to 2.8%year-over- year in January from 2.9%year-over-year in December.Spending on services such as housing,utilities, financial services,and healthcare was offset by a large drop in goods purchases. While the trend is moderating, the path to the Fed's 2% inflation target remains uneven. Source: US Department of Labor Source: US Department of Commerce 6 20 AC 03-21-2024 20 of 98 Consumer -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Retail Sales YOY % Change YO Y ( % ) C h a n g e February Retail Sales fell short of expectations but rebounded 0.6%month-over-month from a downwardly revised 1.1%decline last month.On a year-over-year basis, Retail Sales growth increased just 1.5%for February.Sales got a boost in the month from building materials and garden equipment stores,motor vehicles,and higher prices at the pump.Control-group sales,which are used to calculate gross domestic product,were unchanged in February after falling in the prior month, suggesting weaker economic activity in the first quarter.The Conference Board’s Consumer Confidence Index plunged to 106.7 in February after a sizeable downward revision to 110.9 in January. The lower reading was largely due to a deteriorating view of the labor market and business conditions.While the consumer has been resilient,dwindling excess savings, rising credit card balances,and the resumption of student loan payments pose potential headwinds to future economic growth. 0 20 40 60 80 100 120 140 160 In d e x L e v e l Consumer Confidence Recession Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) 7 21 AC 03-21-2024 21 of 98 Leading Indicators of Economic Activity -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Leading Economic Indicators (LEI) Recession YO Y (% ) C h a n g e -1.00 -0.75 -0.50 -0.25 0.00 0.25 0.50 0.75 1.00 Chicago Fed National Activity Index (CFNAI) Recession 3 M o n t h A v e r a g e The Conference Board’s Leading Economic Index (LEI)fell 0.4%in January,marking the twenty-second consecutive month-over-month decline. The index dropped 7.0%year-over-year.The Conference Board is no longer calling for recession but expects GDP growth to slow to near zero this year.The Chicago Fed National Activity Index (CFNAI)declined more than expected to -0.30 in January from an upwnwardly revised +0.02 in December.On a 3-month moving average basis,the CFNAI rose to -0.02 in January from -0.14 in December, indicating a rate of growth slightly below the historical average trend. Source: The Conference Board Source: Federal Reserve Bank of Chicago 8 22 AC 03-21-2024 22 of 98 Housing 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 In T h o u s a n d s o f U n i t s Annualized Housing Starts Multi Family Housing Starts Single Family Housing Starts Housing Starts decreased month-over-month in January by 14.8%at an annual rate of 1.331 million units.Starts for multi-family homes plunged 35.6%,while single-family home starts fell 4.7%.Total starts of new homes are down 0.7%year-over-year.The January decrease is likely due to intense cold weather delaying construction activity and heavier starts in late 2023 as mortgage rates were coming down. According to Freddie Mac,average 30-year fixed mortgage rates rose to 6.94%as of February 29th.According to the Case-Shiller 20-City Home Price Index, housing prices rose 6.13%year-over-year in December,accelerating from a 5.41%year-over-year gain in November. Tight inventories and higher mortgage rates continue to impact affordability. Source: US Department of Commerce Source: S&P -20.0% -16.0% -12.0% -8.0% -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% S&P/Case -Shiller 20 City Composite Home Price Index Recession YO Y ( % ) C h a n g e 9 23 AC 03-21-2024 23 of 98 Survey Based Measures 40 45 50 55 60 65 70 Institute of Supply Management (ISM) Surveys ISM Manufacturing ISM Services EXPANDING CONTRACTING The Institute for Supply Management (ISM)Manufacturing index plunged to 47.8 in February from 49.1 in January as new orders retreated, marking the 16th consecutive month of contraction in factory activity below a reading of 50.The ISM Services Index fell to 52.6 in February from 53.4 in January, but remained in expansion territory for the 14th consecutive month. Respondents were mostly positive about business conditions but remained concerned about inflation, employment and ongoing geopolitical conflicts. Source: Institute for Supply Management 10 24 AC 03-21-2024 24 of 98 Gross Domestic Product (GDP) Components of GDP 3/23 6/23 9/23 12/23 2.5% 0.6% 2.1% 2.0% -1.7% 0.9% 1.7% 0.2% 0.6% 0.0% 0.0% 0.3% 0.3% 0.1% 0.5% 0.2% 0.5% 0.5% 0.5% 0.6% 2.3% 2.1% 4.9% 3.2% Personal Consumption Expenditures Gross Private Domestic Investment Net Exports and Imports Federal Government Expenditures Total State and Local (Consumption and Gross Investment) -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Gross Domestic Product (GDP) GDP QOQ % Change GDP YOY % Change Source: US Department of Commerce Source: US Department of Commerce According to the second estimate,fourth quarter GDP increased at an annualized rate of 3.2%,down marginally from the advance estimate of 3.3%.Both personal consumption expenditures and government spending were revised higher,offset by lower contributions from gross investment and inventories. The consensus estimate calls for 1.8%growth in the first quarter and 2.1%growth for the full year 2024. 11 25 AC 03-21-2024 25 of 98 Federal Reserve Source: Federal Reserve Source: Bloomberg 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Federal Reserve Balance Sheet Assets Recession In $ m i l l i o n s As expected at the January meeting, the Federal Open Market Committee voted unanimously to leave the federal funds rate unchanged at a target range of 5.25-5.50%. The Fed assesses the progress to achieving its employment and inflation goals are moving into better balance, yet changes to monetary policy remain data dependent. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. However, Fed Chair Powell signaled that the federal funds rate is likely at or near its peak. The futures market is pricing in 3 rate cuts in 2024. We believe the FOMC will loosen monetary policy in mid-2024 as inflation and economic growth continue to moderate. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by over $1.4T to approximately $7.6T. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Effective Federal Funds Rate Recession Yi e l d ( % ) 12 26 AC 03-21-2024 26 of 98 Bond Yields Source: Bloomberg Source: Bloomberg 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Note Yields 2-Year 5-Year 10-Year Y i e l d ( % ) 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US Treasury Yield Curve Feb-24 Nov-23 Feb-23 Yi e l d ( % ) At the end of February,the 2-year Treasury yield was 20 basis point lower,and the 10-Year Treasury yield was 33 basis points higher, year-over-year.The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -37 basis points at February month- end versus -30 basis points at January month-end. The average historical spread (since 2003)is about +130 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -113 basis points in February from -146 basis points in January. 13 27 AC 03-21-2024 27 of 98 Periodic Table of Asset Class Returns As of February 29, 2024 Index returns as of 2/29/2024. Past performance is not indicative of future results. Index returns assume reinvestment of all distributions and do not reflect fees or expenses. It is not possible to invest directly in an index. This information is not intended to constitute an offer, solicitation, recommendation, or advice regarding securities or investment strategy. Please see attached Asset Class Disclosure. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 US Real Estate 30.4% US Real Estate 2.5% US Small Cap Stocks 20.4% Emerging Market Stocks 37.3% International Bonds 3.2% US Large Cap Stocks 31.5% US Mid Cap Stocks 19.8% US Real Estate 43.1% Diversified Commodities 26.0% US Large Cap Stocks 26.3% US Large Cap Stocks 7.1% US Large Cap Stocks 13.7% US Large Cap Stocks 1.4% US High Yield Bonds 17.5% International Stocks 25.0% US Core Bonds 0.0% US Mid Cap Stocks 30.6% US Small Cap Stocks 19.2% Diversified Commodities 40.4% US High Yield Bonds -11.2% US Small Cap Stocks 19.1% Diversified Commodities 5.4% US Mid Cap Stocks 13.4% International Bonds 1.3% US Mid Cap Stocks 12.6% US Large Cap Stocks 21.8% US High Yield Bonds -2.3% US Small Cap Stocks 25.9% US Large Cap Stocks 18.4% US Large Cap Stocks 28.7% International Bonds -12.7% International Stocks 18.2% US Mid Cap Stocks 4.5% International Bonds 9.1% US Core Bonds 0.6% US Large Cap Stocks 12.0% US Mid Cap Stocks 20.3% US Large Cap Stocks -4.4% US Real Estate 25.8% Emerging Market Stocks 18.3% US Mid Cap Stocks 24.0% US Core Bonds -13.3% US Mid Cap Stocks 14.5% International Stocks 2.4% US Core Bonds 6.4% US Mid Cap Stocks -0.6% Diversified Commodities 11.4% International Real Estate 20.0% US Real Estate -4.6% International Stocks 22.0% International Stocks 7.8% US Small Cap Stocks 21.1% International Stocks -14.5% US Real Estate 13.7% US Small Cap Stocks 1.0% US Small Cap Stocks 6.1% International Stocks -0.8% Emerging Market Stocks 11.2% US Small Cap Stocks 15.2% International Real Estate -6.4% International Real Estate 21.0% US Core Bonds 7.6% International Stocks 11.3% US Mid Cap Stocks -16.9% US High Yield Bonds 13.5% US High Yield Bonds 0.3% International Real Estate 2.8% International Real Estate -3.8% US Real Estate 8.6% US High Yield Bonds 7.5% US Mid Cap Stocks -8.1% Emerging Market Stocks 18.4% US High Yield Bonds 6.2% International Real Estate 8.1% US Small Cap Stocks -17.8% Emerging Market Stocks 9.8% Emerging Market Stocks -0.1% US High Yield Bonds 2.5% US Small Cap Stocks -4.1% International Bonds 4.9% Diversified Commodities 5.8% US Small Cap Stocks -11.0% Diversified Commodities 17.6% International Bonds 4.7% US High Yield Bonds 5.4% US Large Cap Stocks -18.1% International Bonds 8.7% International Bonds -0.9% Emerging Market Stocks -2.2% High Yield Bonds -4.6% US Core Bonds 2.6% US Real Estate 5.1% International Stocks -13.8% US High Yield Bonds 14.4% International Real Estate -7.1% US Core Bonds -1.6% Emerging Market Stocks -20.1% International Real Estate 6.3% US Core Bonds -1.5% International Stocks -4.9% Emerging Market Stocks -14.9% International Real Estate 1.3% US Core Bonds 3.6% Diversified Commodities -13.8% US Core Bonds 9.0% US Real Estate -7.6% International Bonds -2.1% International Real Estate -24.3% US Core Bonds 5.4% US Real Estate -2.2% Diversified Commodities -33.1% Diversified Commodities -32.9% International Stocks 1.0% International Bonds 2.6% Emerging Market Stocks -14.6% International Bonds 8.1% Diversified Commodities -23.7% Emerging Market Stocks -2.5% US Real Estate -24.5% Diversified Commodities -4.3% International Real Estate -8.0% 14 28 AC 03-21-2024 28 of 98 Section 2|SECTION |Section 2 |Account Profile 15 29 AC 03-21-2024 29 of 98 Objectives Chandler Asset Management Performance Objective The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index. Investment Objectives The City of Cupertino’s investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program. Strategy In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code. As of February 29, 2024 16 30 AC 03-21-2024 30 of 98 Compliance As of February 29, 2024 Category Standard Comment Treasury Issues No Limitation Complies Agency Issues 25% per Agency/GSE issuer; 20% max agency callable securities; Issued by Federal Agencies or U.S. Government Sponsored Enterprise obligations.Complies Supranational "AA" rating category or better by a NRSRO; 30% maximum; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB.Complies Municipal Securities "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Obligations of the City, State of California, and any local agency within the State of California; Obligations of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states in addition to California. Complies Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.Complies Asset Backed/ Mortgage Backed/ Collateralized Mortgage Obligation "AA" rating category or better by a NRSRO; 20% maximum; 5% max per issuer on Asset-Backed or Commercial Mortgage security; There is no issuer limitation on any Mortgage security where the issuer is the U.S. Treasury or a Federal Agency/GSE .Complies Negotiable Certificates of Deposit (NCDs) No rating required if amount of the NCD is insured up to the FDIC limit; If above FDIC insured limit, requires "A-1" short-term rated or "A" long-term rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by nationally or state chartered banks, state or federal savings a s sociations, or state or federal credit unions, or by a federally licensed or state-licensed branch of a foreign bank. Complies Certificates of Deposit (CDs)/Time Deposit (TDs) 30% maximum; 5% max per issuer; Certificates of Deposit, Time Deposit, non-negotiable, and collateralized in accordance with California Government Code.Complies Banker’s Acceptances "A-1" short-term rated or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies Commercial Paper "A-1" short term rated or better a NRSRO; "A" long-term issuer rating category or better by a NRSRO; 25% maximum; 5% max per issuer; 270 days max maturity; Issued by corporations organized and operating in the U.S. with assets > $500 million; 10% max outstanding paper of the issuing corporation. Complies Money Market Funds 20% maximum; Daily money market funds administered for or by trustees, paying agents and custodian banks contracted by a City of Cupertino as allowed under California Government Code; Only funds holding U.S. Treasury obligations, Government agency obligations or repurchase agreements collateralized by U.S. Treasury or Government agency obligations can be utilized. Complies Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies Repurchase Agreements 1 year max maturity; 102% collateralized; A PSA Master Repurchase Agreement is required between City of Cupertino and the broke/dealer or financial institution for all repurchase agreements; Not used by investment adviser Complies Prohibited Securities Reverse Repurchase Agreement; Common stocks; Long-term (> 5 years maturity) notes and bonds; Special circumstances arise that necessitate purchase of securities beyond the 5-year limitation. On such occasions, request must be approved by City Council prior to purchase; Futures/Options; Inverse floaters; Ranges notes, Mortgage-derived, Interest-only strips; Zero interest accrual securities; Purchasing/selling securities on margin; Foreign currency denominated securities. Complies Minimum Budgeted Operating Expenditures in Short Term Investments Minimum 6 months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements Complies Max Per Issuer 5% per issuer, unless otherwise specified in the policy Complies Maximum maturity 5 years Complies City of Cupertino Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 17 31 AC 03-21-2024 31 of 98 Portfolio Characteristics City of Cupertino 02/29/24 01/31/24 Benchmark*Portfolio Portfolio Average Maturity (yrs)1.82 1.97 2.10 Average Modified Duration 1.74 1.70 1.73 Average Purchase Yield n/a 2.28%2.24% Average Market Yield 4.71%4.96%4.65% Average Quality**AA+AA+AA/Aa1 Total Market Value 154,187,459 154,592,446 *ICE BofA 1-3 Yr US Treasury & Agency Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively. As of February 29, 2024 18 32 AC 03-21-2024 32 of 98 City of Cupertino Sector Distribution Agency 16.7% Asset Backed Security 11.0% Corporate 28.0%Money Market Fund 0.3% Municipal Bonds 0.5% Supranational 4.5% US Treasury 35.5% Agency CMBS 3.7% February 29, 2024 January 31, 2024 ABS 11.5% Agency 16.7% Corporate 27.4% Money Market Fund 0.1% Municipal Bonds 0.5% Supranational 4.5% US Treasury 35.7% CMO 3.7% As of February 29, 2024 19 33 AC 03-21-2024 33 of 98 Duration Allocation As of February 29, 2024 City of Cupertino 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 02/29/24 1.8%12.7%17.0%32.3%18.6%17.7%0.0%0.0% 0% 5% 10% 15% 20% 25% 30% 35% 0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years Agency Agency CMBS Asset Backed Security Cash Corporate Money Market Fund Municipal Bonds Supranational US Treasury 20 34 AC 03-21-2024 34 of 98 Portfolio Allocation & Duration Changes City of Cupertino As of February 29, 2024 Benchmark: ICE BofA 1-3 Yr US Treasury & Agency Index 98.0% 102.9% 110.4% 123.8% 134.6%135.2% 140.3%141.4% 80.0% 90.0% 100.0% 110.0% 120.0% 130.0% 140.0% 150.0% 02/29/2411/30/2308/31/2305/31/2302/28/2311/30/2208/31/2205/31/22 Duration as a % of the Benchmark 3.7% 11.5% 0.1% 0.5% 0.0% 4.5% 16.7% 27.4% 35.7% 0.0% 11.0% 0.3% 0.5% 3.7% 4.5% 16.7% 27.9% 35.5% CMO ABS Money Market Fund Municipal Bonds Agency CMBS Supranational Agency Corporate US Treasury Portfolio Allocation 02/29/24 01/31/24 21 35 AC 03-21-2024 35 of 98 Issue Name Investment Type % Portfolio Government of United States US Treasury 35.46% Federal National Mortgage Association Agency 8.76% Federal Home Loan Mortgage Corp Agency 3.76% Federal Home Loan Mortgage Corp Agency CMBS 3.72% Federal Home Loan Bank Agency 2.27% Federal Farm Credit Bank Agency 1.86% American Express ABS Asset Backed Security 1.85% Royal Bank of Canada Corporate 1.64% Toyota Motor Corp Corporate 1.59% JP Morgan Chase & Co Corporate 1.55% Bank of America Corp Corporate 1.53% International Finance Corp Supranational 1.53% Bank of New York Corporate 1.52% John Deere ABS Asset Backed Security 1.49% Inter-American Dev Bank Supranational 1.48% Intl Bank Recon and Development Supranational 1.45% Toronto Dominion Holdings Corporate 1.41% Northwestern Mutual Glbl Corporate 1.26% Paccar Financial Corporate 1.24% Bank of Montreal Chicago Corporate 1.16% GM Financial Securitized Term Auto Trust Asset Backed Security 1.13% Amazon.com Inc Corporate 1.12% Salesforce.com Inc Corporate 1.12% Honda ABS Asset Backed Security 1.12% Metlife Inc Corporate 1.12% Prudential Financial Inc Corporate 1.11% Hyundai Auto Receivables Asset Backed Security 1.11% JP Morgan ABS Asset Backed Security 1.09% Toyota ABS Asset Backed Security 1.08% Morgan Stanley Corporate 1.08% Air Products & Chemicals Corporate 1.08% New York Life Global Funding Corporate 1.06% United Health Group Inc Corporate 1.05% Berkshire Hathaway Corporate 0.99% Guardian Life Global Funding Corporate 0.84% US Bancorp Corporate 0.80% Mercedes-Benz Asset Backed Security 0.73% Caterpillar Inc Corporate 0.70% Issuers City of Cupertino – Account #10659 As of February 29, 2024 22 36 AC 03-21-2024 36 of 98 Issue Name Investment Type % Portfolio MasterCard Inc Corporate 0.63% Mass Mutual Insurance Corporate 0.59% Charles Schwab Corp/The Corporate 0.58% Bank of America Credit Card Trust Asset Backed Security 0.55% Cisco Systems Corporate 0.54% State of California Municipal Bonds 0.49% Northern Trust Corp Corporate 0.43% BMW ABS Asset Backed Security 0.29% Toyota Lease Owner Trust Asset Backed Security 0.27% Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.26% Wal-Mart Stores Corporate 0.21% GM Financial Automobile Leasing Trust Asset Backed Security 0.16% Hyundai Auto Lease Securitization Asset Backed Security 0.07% Wells Fargo Bank Money Market Fund 0.03% BMW Vehicle Lease Trust Asset Backed Security 0.02% Account Receivable Payable Cash 0.00% TOTAL 100.00% Issuers City of Cupertino – Account #10659 As of February 29, 2024 23 37 AC 03-21-2024 37 of 98 AAA AA A <A NR 02/29/24 13.4%66.5%20.1%0.0%0.0% 01/31/24 14.0%59.2%19.1%0.0%7.7% Source: S&P Ratings February 29, 2024 vs. January 31, 2024 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% AAA AA A <A NR 02/29/24 01/31/24 Quality Distribution City of Cupertino As of February 29, 2024 24 38 AC 03-21-2024 38 of 98 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Cupertino ICE BofA 1-3 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 1.8% 12.7% 17.0% 32.3% 18.6% 17.7% 0.0% 0.0% Benchmark*0.1% 0.0% 4.2% 58.5% 37.2% 0.0% 0.0% 0.0% *ICE BofA 1-3 Yr US Treasury & Agency Index Duration Distribution City of Cupertino As of February 29, 2024 25 39 AC 03-21-2024 39 of 98 Total Rate of Return Annualized Since Inception January 31, 2019 Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Investment Performance City of Cupertino -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino ICE BofA 1-3 Yr US Treasury & Agency Index City of Cupertino Net of Fees Annualized TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino 1.32%4.79%0.51%-0.34%1.30%N/A 1.31% ICE BofA 1-3 Yr US Treasury & Agency Index 1.10%4.29%0.74%-0.02%1.22%N/A 1.22% City of Cupertino Net of Fees 1.32%4.76%0.47%-0.38%1.24%N/A 1.25% As of February 29, 2024 26 40 AC 03-21-2024 40 of 98 Purchase Yield as of 02/29/24 = 2.28% 0.00 0.50 1.00 1.50 2.00 2.50 Pe r c e n t ( % ) Historical Average Purchase Yield City of Cupertino As of February 29, 2024 27 41 AC 03-21-2024 41 of 98 SECTION |Section 3 |Portfolio Holdings 28 42 AC 03-21-2024 42 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration ABS 44891WAC3 HALST 2022-A A3 1.16 01/15/2025 112,241.90 01/11/2022 112,239.42 99.82 112,037.73 0.07%Aaa/AAA 0.88 1.16%112,241.29 3.70%57.87 (203.56)NA 0.08 89238LAC4 TLOT 2022-A A3 1.96 02/20/2025 421,973.44 02/23/2022 421,907.02 99.54 420,020.25 0.27%NA/AAA 0.98 1.96%421,954.19 5.74%252.72 (1,933.94)AAA 0.14 02589BAA8 AMXCA 2022-1 A 2.21 03/17/2025 1,545,000.00 03/21/2022 1,524,359.77 96.93 1,497,497.12 0.98%Aaa/NA 1.05 2.69%1,537,790.06 5.28%1,517.53 (40,292.94)AAA 1.46 36265MAC9 GMALT 2022-1 A3 1.9 03/20/2025 251,722.74 02/15/2022 251,720.58 99.67 250,900.47 0.16%Aaa/NA 1.05 1.91%251,722.12 5.41%146.14 (821.66)AAA 0.12 05601XAC3 BMWLT 2022-1 A3 1.03 03/25/2025 28,794.24 01/11/2022 28,789.94 99.70 28,707.67 0.02%NA/AAA 1.07 1.12%28,793.08 5.55%5.28 (85.41)AAA 0.07 43813GAC5 HAROT 2021-1 A3 0.27 04/21/2025 28,921.18 02/17/2021 28,920.65 99.25 28,703.45 0.02%Aaa/NA 1.14 0.27%28,921.08 5.17%2.17 (217.63)AAA 0.21 89240BAC2 TAOT 2021-A A3 0.26 05/15/2025 111,875.37 02/02/2021 111,854.60 99.32 111,117.63 0.07%Aaa/NA 1.21 0.27%111,871.27 5.43%12.93 (753.63)AAA 0.19 02582JJT8 AMXCA 2022-2 A 3.39 05/15/2025 1,375,000.00 05/17/2022 1,374,695.85 97.85 1,345,467.48 0.88%NA/AAA 1.21 3.42%1,374,822.38 5.28%2,071.67 (29,354.90)AAA 1.60 44933LAC7 HART 2021-A A3 0.38 09/15/2025 103,099.19 04/20/2021 103,088.34 99.01 102,082.29 0.07%NA/AAA 1.54 0.39%103,096.41 5.21%17.41 (1,014.12)AAA 0.30 43815GAC3 HAROT 2021-4 A3 0.88 01/21/2026 272,719.04 11/16/2021 272,661.55 97.34 265,471.56 0.17%Aaa/NA 1.90 0.89%272,695.55 5.59%66.66 (7,223.99)AAA 0.71 47789QAC4 JDOT 2021-B A3 0.52 03/16/2026 285,759.52 07/13/2021 285,734.03 97.50 278,610.30 0.18%Aaa/NA 2.04 0.52%285,749.73 5.43%66.04 (7,139.43)AAA 0.56 89238JAC9 TAOT 2021-D A3 0.71 04/15/2026 261,200.54 11/09/2021 261,194.97 97.43 254,483.53 0.17%NA/AAA 2.13 0.71%261,198.19 5.42%82.42 (6,714.66)AAA 0.74 43815BAC4 HAROT 2022-1 A3 1.88 05/15/2026 631,684.81 02/15/2022 631,589.80 97.57 616,339.67 0.40%Aaa/AAA 2.21 1.89%631,639.11 5.58%527.81 (15,299.44)NA 0.86 44935FAD6 HART 2021-C A3 0.74 05/15/2026 776,066.09 --756,443.66 97.64 757,784.53 0.49%NA/AAA 2.21 2.17%766,779.43 5.43%255.24 (8,994.90)AAA 0.71 05602RAD3 BMWOT 2022-A A3 3.21 451,574.31 05/10/2022 451,550.83 98.45 444,593.56 0.29%Aaa/AAA 2.49 08/25/2026 3.23%451,561.53 5.43%241.59 (6,967.98)NA 0.98 47787JAC2 JDOT 2022 A3 0.36 09/15/2026 328,880.36 03/10/2022 328,807.61 97.82 321,717.47 0.21%Aaa/NA 2.54 2.34%328,841.81 5.47%339.11 (7,124.34)AAA 0.81 362554AC1 GMCAR 2021-4 A3 0.68 09/16/2026 220,411.96 10/13/2021 220,406.34 96.95 213,681.00 0.14%Aaa/AAA 2.55 0.68%220,409.46 5.33%62.45 (6,728.47)NA 0.90 29 43 AC 03-21-2024 43 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 448977AD0 HART 2022-A A3 2.22 10/15/2026 864,693.81 03/09/2022 864,660.52 97.76 845,324.67 0.55%NA/AAA 2.63 2.23%864,676.40 5.53%853.16 (19,351.74)AAA 0.95 380146AC4 GMCAR 2022-1 A3 1.23 11/16/2026 216,939.36 01/11/2022 216,920.51 97.19 210,841.43 0.14%NA/AAA 2.71 1.27%216,929.94 5.50%113.89 (6,088.51)AAA 0.95 05522RDH8 BACCT 2023-2A 4.98 11/16/2026 850,000.00 01/24/2024 858,798.83 100.27 852,296.96 0.56%Aaa/NA 2.71 4.58%858,497.84 4.92%1,881.33 (6,200.89)AAA 2.47 362585AC5 GMCAR 2022-2 A3 3.1 02/16/2027 375,683.12 04/05/2022 375,604.61 98.15 368,749.48 0.24%Aaa/AAA 2.97 3.13%375,638.59 5.43%485.26 (6,889.11)NA 1.14 47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 655,000.00 07/12/2022 654,937.45 98.42 644,634.69 0.42%Aaa/NA 2.97 3.77%654,960.76 5.17%1,088.76 (10,326.07)AAA 1.13 47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 1,050,000.00 10/12/2022 1,049,918.52 99.63 1,046,099.46 0.68%Aaa/NA 3.29 5.15%1,049,943.16 5.42%2,375.33 (3,843.70)AAA 1.41 89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 1,300,000.00 11/21/2023 1,294,718.75 100.12 1,301,508.52 0.85%NA/AAA 4.13 5.40%1,295,041.02 5.16%2,981.33 6,467.50 AAA 2.55 438123AC5 HAROT 2023-4 A3 5.67 06/21/2028 805,000.00 --806,992.67 101.35 815,883.44 0.53%Aaa/NA 4.31 5.64%806,833.00 5.12%1,267.88 9,050.44 AAA 2.58 58769FAC9 MBART 2023-2 A3 5.95 11/15/2028 1,100,000.00 11/29/2023 1,123,289.06 101.97 1,121,718.84 0.73%NA/AAA 4.71 5.18%1,121,896.78 5.17%2,908.89 (177.94)AAA 2.86 36268GAD7 GMCAR 2024-1 A3 4.85 12/18/2028 950,000.00 01/23/2024 950,074.22 99.65 946,721.08 0.62%Aaa/NA 4.80 4.90%950,072.38 5.05%1,919.79 (3,351.30)AAA 3.13 161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024 1,689,742.61 99.40 1,679,924.05 1.09%NA/AAA 4.88 4.61%1,689,746.87 4.93%3,455.11 (9,822.82)AAA 2.71 17,051,622.72 98.96 16,882,918.33 10.99%Aaa/AAA 2.96 Total ABS 17,064,240.98 3.60%17,074,323.45 5.25%25,055.78 (191,405.12)AAA 1.71 AGENCY 3130A1XJ2 FEDERAL HOME LOANBANKS 2.875 1,500,000.00 06/18/2019 1,564,890.20 99.28 1,489,155.03 0.97%Aaa/AA+0.29 06/14/2024 1.99%1,503,739.56 5.36%9,223.96 (14,584.53)AA+0.28 3135G0V75 FEDERAL NATIONAL MORTGAGE 1,500,000.00 07/16/2019 1,484,895.00 98.79 1,481,810.25 0.96%Aaa/AA+0.34 ASSOCIATION 1.75 07/02/2024 1.96%1,498,974.66 5.35%4,302.08 (17,164.41)AA+0.33 3130A2UW4 FEDERAL HOME LOANBANKS 2.875 2,000,000.00 09/13/2019 2,103,380.00 98.74 1,974,809.82 1.29%Aaa/AA+0.54 09/13/2024 1.82%2,011,108.82 5.27%26,833.33 (36,299.00)AA+0.51 3135G0W66 FEDERAL NATIONAL MORTGAGE 1,975,000.00 --1,965,802.75 97.80 1,931,464.28 1.26%Aaa/AA+0.63 ASSOCIATION 1.625 10/15/2024 1.72%1,973,819.17 5.24%12,124.31 (42,354.89)AA+0.60 3135G0X24 FEDERAL NATIONAL MORTGAGE 1,295,000.00 --1,309,953.95 97.10 1,257,497.33 0.82%Aaa/AA+0.86 ASSOCIATION 1.625 01/07/2025 1.38%1,297,652.67 5.13%3,156.56 (40,155.34)AA+0.82 30 44 AC 03-21-2024 44 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 3137EAEP0 FEDERAL HOME LOAN MORTGAGE 2,365,000.00 02/13/2020 2,363,178.95 96.68 2,286,552.95 1.49%Aaa/AA+0.96 CORP 1.5 02/12/2025 1.52%2,364,652.75 5.11%1,872.29 (78,099.80)AA+0.92 3135G03U5 FEDERAL NATIONAL MORTGAGE 1,860,000.00 04/22/2020 1,856,168.40 95.24 1,771,518.33 1.15%Aaa/AA+1.15 ASSOCIATION 0.625 04/22/2025 0.67%1,859,124.03 4.94%4,165.62 (87,605.70)AA+1.11 3135G04Z3 FEDERAL NATIONAL MORTGAGE 2,500,000.00 --2,499,227.30 94.63 2,365,852.85 1.54%Aaa/AA+1.30 ASSOCIATION 0.5 06/17/2025 0.50%2,499,854.37 4.81%2,569.44 (134,001.52)AA+1.26 3137EAEU9 FEDERAL HOME LOAN MORTGAGE 1,250,000.00 07/21/2020 1,243,775.00 94.15 1,176,906.71 0.77%Aaa/AA+1.39 CORP 0.375 07/21/2025 0.48%1,248,269.69 4.76%520.83 (71,362.98)AA+1.35 3135G05X7 FEDERAL NATIONAL MORTGAGE 2,500,000.00 --2,487,983.75 93.69 2,342,372.62 1.53%Aaa/AA+1.49 ASSOCIATION 0.375 08/25/2025 0.47%2,496,326.47 4.81%156.25 (153,953.85)AA+1.44 3137EAEX3 FEDERAL HOME LOAN MORTGAGE 2,500,000.00 --2,489,362.80 93.41 2,335,129.38 1.52%Aaa/AA+1.57 CORP 0.375 09/23/2025 0.46%2,496,600.37 4.79%4,114.58 (161,470.99)AA+1.52 3135G06G3 FEDERAL NATIONAL MORTGAGE 2,500,000.00 --2,492,700.00 93.23 2,330,748.20 1.52%Aaa/AA+1.69 ASSOCIATION 0.5 11/07/2025 0.56%2,497,529.87 4.72%3,958.33 (166,781.67)AA+1.64 3133EPC60 FEDERAL FARM CREDIT BANKS 2,800,000.00 11/09/2023 2,789,612.00 100.84 2,823,461.12 1.84%Aaa/AA+3.71 FUNDING CORP 4.625 11/15/2027 4.73%2,790,372.79 4.38%38,130.56 33,088.32 AA+3.33 26,650,930.10 96.38 25,567,278.88 16.65%Aaa/AA+1.36 Total Agency 26,545,000.00 1.48%26,538,025.22 4.93%111,128.16 (970,746.35)AA+1.29 AGENCY CMBS 3137BFE98 FHMS K-041 A2 3.171 10/25/2024 1,280,404.36 07/01/2021 1,377,334.97 98.54 1,261,708.53 0.82%Aaa/AA+0.65 0.66%1,297,953.56 5.46%3,383.47 (36,245.02)AAA 0.56 3137BLMZ8 FHMS K-049 A2 3.01 07/25/2025 1,000,000.00 07/01/2021 1,079,687.50 97.25 972,524.70 0.63%Aaa/AA+1.40 0.87%1,026,672.03 5.12%2,508.33 (54,147.33)AAA 1.23 3137BLW95 FHMS K-050 A2 3.334 08/25/2025 950,000.00 11/16/2021 1,018,132.81 97.56 926,853.44 0.60%Aaa/AA+1.49 1.22%976,123.46 5.10%2,639.42 (49,270.02)AAA 1.28 3137BM7C4 FHMS K-051 A2 3.308 09/25/2025 440,000.00 03/15/2022 453,079.69 97.43 428,711.01 0.28%Aaa/AA+1.57 2.32%445,685.47 5.06%1,212.93 (16,974.46)AAA 1.37 3137BN6G4 FHMS K-053 A2 2.995 12/25/2025 570,000.00 03/15/2022 582,001.17 96.72 551,320.87 0.36%Aaa/AA+1.82 2.32%575,699.44 4.98%1,422.62 (24,378.57)AAA 1.58 3137BSP72 FHMS K-058 A2 2.653 08/25/2026 650,000.00 11/12/2021 687,451.17 95.04 617,778.07 0.40%Aaa/AA+2.49 1.36%669,248.77 4.78%1,437.04 (51,470.70)AAA 2.31 3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 09/28/2022 950,664.06 95.44 954,428.00 0.62%Aaa/AA+3.49 4.36%965,075.87 4.67%2,703.33 (10,647.87)AA+3.16 Total Agency 6,148,351.37 97.01 5,713,324.62 3.72%Aaa/AA+1.77 CMBS 5,890,404.36 1.77%5,956,458.59 5.06%15,307.15 (243,133.97)AAA 1.57 31 45 AC 03-21-2024 45 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration CASH CCYUSD Receivable 1,801.08 --1,801.08 1.00 1,801.08 0.00%Aaa/AAA 0.00 0.00%1,801.08 0.00%0.00 0.00 AAA 0.00 1,801.08 1.00 1,801.08 0.00%Aaa/AAA 0.00 Total Cash 1,801.08 0.00%1,801.08 0.00%0.00 0.00 AAA 0.00 CORPORATE 89114QCA4 TORONTO-DOMINION BANK 2.65 1,500,000.00 09/11/2019 1,527,255.00 99.23 1,488,413.28 0.97%A1/A 0.28 06/12/2024 2.26%1,501,618.95 5.36%8,722.92 (13,205.67)AA-0.28 06367TQW3 BANK OF MONTREAL 0.625 600,000.00 02/09/2022 582,216.00 98.31 589,881.73 0.38%A2/A-0.36 07/09/2024 1.88%597,369.83 5.38%541.67 (7,488.10)AA-0.35 79466LAG9 SALESFORCE INC 0.625 07/15/2024 1,760,000.00 --1,748,937.40 98.26 1,729,374.63 1.13%A2/A+0.38 0.87%1,758,428.69 5.32%1,405.56 (29,054.07)NA 0.36 78013XZU5 ROYAL BANK OF CANADA 2.55 1,500,000.00 --1,533,359.18 98.82 1,482,365.56 0.97%A1/A 0.38 07/16/2024 2.00%1,503,041.40 5.69%4,781.25 (20,675.84)AA-0.37 91159HHX1 US BANCORP 2.4 07/30/2024 1,250,000.00 10/10/2019 1,268,262.50 98.68 1,233,441.20 0.80%A3/A 0.42 2.08%1,251,264.98 5.62%2,583.33 (17,823.78)A 0.40 009158AV8 AIR PRODUCTS AND CHEMICALS INC 1,675,000.00 08/07/2019 1,771,212.00 99.09 1,659,705.66 1.08%A2/A 0.42 3.35 07/31/2024 2.11%1,678,344.57 5.56%4,831.91 (18,638.91)NA 0.40 69371RR40 PACCAR FINANCIAL CORP 0.5 680,000.00 08/03/2021 679,632.80 97.92 665,872.56 0.43%A1/A+0.44 08/09/2024 0.52%679,946.06 5.28%207.78 (14,073.50)NA 0.43 69371RQ25 PACCAR FINANCIAL CORP 2.15 370,000.00 08/08/2019 369,182.30 98.50 364,443.31 0.24%A1/A+0.46 08/15/2024 2.19%369,925.26 5.48%353.56 (5,481.95)NA 0.44 14913Q3B3 CATERPILLAR FINANCIAL SERVICES 1,100,000.00 01/28/2020 1,111,517.00 97.83 1,076,153.75 0.70%A2/A 0.69 CORP 2.15 11/08/2024 1.93%1,101,664.15 5.38%7,423.47 (25,510.40)A+0.66 74153WCQ0 PRICOA GLOBAL FUNDING I 1.15 885,000.00 12/01/2021 884,088.45 96.87 857,279.82 0.56%Aa3/AA-0.77 12/06/2024 1.18%884,766.70 5.36%2,403.02 (27,486.88)AA-0.74 89114TZL9 TORONTO-DOMINION BANK 1.45 700,000.00 03/15/2022 674,737.00 96.78 677,465.67 0.44%A1/A 0.87 01/10/2025 2.78%692,273.94 5.31%1,437.92 (14,808.27)NA 0.83 89236TJT3 TOYOTA MOTOR CREDIT CORP 1.45 1,215,000.00 01/10/2022 1,213,371.90 96.81 1,176,192.33 0.77%A1/A+0.87 01/13/2025 1.50%1,214,527.61 5.24%2,349.00 (38,335.28)A+0.84 64952WEK5 NEW YORK LIFE GLOBAL FUNDING 1,680,000.00 01/11/2022 1,678,185.60 96.72 1,624,925.79 1.06%Aaa/AA+0.88 1.45 01/14/2025 1.49%1,679,471.90 5.33%3,180.33 (54,546.12)AAA 0.84 69371RR73 PACCAR FINANCIAL CORP 2.85 885,000.00 03/31/2022 884,769.90 97.62 863,902.59 0.56%A1/A+1.10 04/07/2025 2.86%884,915.60 5.09%10,089.00 (21,013.01)NA 1.05 32 46 AC 03-21-2024 46 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 78016EZ59 ROYAL BANK OF CANADA 3.375 04/14/2025 1,050,000.00 04/07/2022 3.39% 1,049,611.50 1,049,855.02 97.95 5.27% 1,028,510.35 13,485.94 0.67% (21,344.67) A1/A AA- 1.12 1.07 06406RBC0 BANK OF NEW YORK MELLON CORP 3.35 04/25/2025 1,370,000.00 04/19/2022 3.35% 1,369,808.20 1,369,926.43 97.79 5.34% 1,339,761.61 16,063.25 0.87% (30,164.83) A1/A AA- 1.15 1.10 06367WB85 BANK OF MONTREAL 1.85 05/01/2025 1,240,000.00 07/23/2021 0.86% 1,285,656.80 1,254,155.60 96.10 5.32% 1,191,629.65 7,646.67 0.78% (62,525.95) A2/A- AA- 1.17 1.12 46647PCH7 JPMORGAN CHASE &CO 0.824 06/01/2025 1,370,000.00 05/24/2021 0.78% 1,371,773.90 1,370,148.90 98.68 5.96% 1,351,945.19 2,822.20 0.88% (18,203.71) A1/A- AA- 1.25 0.25 46647PCK0 JPMORGAN CHASE &CO 0.969 06/23/2025 655,000.00 -- 0.95% 655,406.85 655,042.36 98.46 5.92% 644,899.82 1,198.87 0.42% (10,142.54) A1/A- AA- 1.31 0.31 66815L2J7 NORTHWESTERN MUTUAL GLOBAL FUNDING 4.0 07/01/2025 1,170,000.00 06/27/2022 4.01% 1,169,602.20 1,169,823.24 98.56 5.12% 1,153,122.89 7,800.00 0.75% (16,700.35) Aaa/AA+ AAA 1.34 1.27 74153WCM9 PRICOA GLOBAL FUNDING I 0.8 09/01/2025 904,000.00 04/06/2022 3.23% 832,972.72 872,603.88 93.61 5.27% 846,192.42 3,616.00 0.55% (26,411.47) Aa3/AA- AA- 1.51 1.46 06406HCQ0 BANK OF NEW YORK MELLON CORP 3.95 11/18/2025 1,000,000.00 04/05/2022 3.21% 1,024,910.00 1,011,508.81 97.91 5.23% 979,098.93 11,301.39 0.64% (32,409.88) A1/A AA- 1.72 1.61 40139LBC6 GUARDIAN LIFE GLOBAL FUNDING 0.875 12/10/2025 1,400,000.00 -- 1.12% 1,385,860.00 1,393,991.33 92.46 5.37% 1,294,454.88 2,756.25 0.84% (99,536.45) Aa1/AA+ NA 1.78 1.71 66815L2A6 NORTHWESTERN MUTUAL GLOBAL FUNDING 0.8 01/14/2026 850,000.00 12/06/2021 1.46% 827,449.50 839,703.24 92.41 5.10% 785,479.37 887.78 0.51% (54,223.87) Aaa/AA+ AAA 1.88 1.81 06051GHY8 BANK OF AMERICA CORP 2.015 02/13/2026 600,000.00 05/24/2021 1.06% 620,988.00 605,389.85 96.61 5.71% 579,662.66 604.50 0.38% (25,727.19) A1/A- AA- 1.96 0.92 46647PBK1 JPMORGAN CHASE &CO 2.083 04/22/2026 401,000.00 05/20/2021 1.11% 415,969.33 405,368.24 96.21 5.53% 385,808.68 2,993.10 0.25% (19,559.55) A1/A- AA- 2.15 1.10 6174468Q5 MORGAN STANLEY 2.188 04/28/2026 650,000.00 05/23/2022 4.22% 615,699.50 635,527.06 96.24 5.57% 625,531.96 4,859.18 0.41% (9,995.11) A1/A- A+ 2.16 1.11 023135BX3 AMAZON.COM INC 1.0 05/12/2026 1,875,000.00 05/10/2021 1.09% 1,866,900.00 1,871,442.39 92.05 4.85% 1,725,886.11 5,677.08 1.12% (145,556.28) A1/AA AA- 2.20 2.12 91324PEC2 UNITEDHEALTH GROUP INC 1.15 05/15/2026 1,035,000.00 -- 1.37% 1,025,051.35 1,030,014.33 92.10 4.97% 953,185.81 3,504.62 0.62% (76,828.52) A2/A+ A 2.21 2.12 89236TJK2 TOYOTA MOTOR CREDIT CORP 1.125 06/18/2026 1,385,000.00 06/15/2021 1.13% 1,384,390.60 1,384,720.00 91.77 4.95% 1,271,024.21 3,159.53 0.83% (113,695.79) A1/A+ A+ 2.30 2.21 06051GJD2 BANK OF AMERICA CORP 1.319 06/19/2026 700,000.00 07/16/2021 1.27% 701,274.00 700,423.18 94.65 5.62% 662,557.76 1,846.60 0.43% (37,865.43) A1/A- AA- 2.30 1.25 57629WDE7 MASSMUTUAL GLOBAL FUNDING II 1.2 07/16/2026 1,000,000.00 08/19/2021 1.15% 1,002,230.00 1,001,081.33 91.08 5.23% 910,819.42 1,500.00 0.59% (90,261.91) Aa3/AA+ AA+ 2.38 2.28 33 47 AC 03-21-2024 47 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 58989V2D5 MET TOWER GLOBAL FUNDING 1.25 09/14/2026 770,000.00 09/07/2021 1.27% 769,291.60 769,640.37 90.66 5.22% 698,096.81 4,464.93 0.45% (71,543.55) Aa3/AA- AA- 2.54 2.42 931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021 1.09% 349,338.50 349,663.09 91.36 4.69% 319,745.81 1,674.17 0.21% (29,917.29) Aa2/AA AA 2.55 2.45 61690U7W4 MORGAN STANLEY BANK NA 5.882 10/30/2026 1,000,000.00 -- 5.88% 1,000,082.50 1,000,073.19 101.84 5.11% 1,018,382.50 19,606.67 0.66% 18,309.31 Aa3/A+ AA- 2.67 2.33 59217GER6 METROPOLITAN LIFE GLOBAL FUNDING I 1.875 01/11/2027 1,115,000.00 01/03/2022 1.90% 1,113,728.90 1,114,271.87 91.24 5.20% 1,017,375.02 2,903.65 0.66% (96,896.85) Aa3/AA- AA- 2.87 2.72 17275RBQ4 CISCO SYSTEMS INC 4.8 02/26/2027 830,000.00 02/21/2024 4.85% 828,921.00 828,924.94 100.08 4.77% 830,690.55 553.33 0.54% 1,765.61 A1/AA- NA 2.99 2.75 808513BY0 CHARLES SCHWAB CORP 2.45 03/03/2027 960,000.00 03/01/2022 2.46% 959,729.90 959,835.72 92.69 5.10% 889,855.04 11,629.33 0.58% (69,980.68) A2/A- A 3.01 2.80 084664CZ2 BERKSHIRE HATHAWAY FINANCE CORP 2.3 03/15/2027 1,615,000.00 03/07/2022 2.30% 1,614,693.15 1,614,813.64 93.70 4.54% 1,513,174.98 17,127.97 0.99% (101,638.66) Aa2/AA A+ 3.04 2.85 06051GHT9 BANK OF AMERICA CORP 3.559 04/23/2027 1,150,000.00 -- 4.29% 1,114,222.54 1,126,123.16 96.18 5.46% 1,106,093.74 14,552.36 0.72% (20,029.43) A1/A- AA- 3.15 2.00 665859AW4 NORTHERN TRUST CORP 4.0 05/10/2027 670,000.00 05/05/2022 4.03% 668,914.60 669,307.51 97.16 4.97% 650,962.57 8,263.33 0.42% (18,344.93) A2/A+ A+ 3.19 2.92 91324PEG3 UNITEDHEALTH GROUP INC 3.7 05/15/2027 675,000.00 05/17/2022 3.69% 675,316.70 675,201.69 96.84 4.77% 653,645.83 7,353.75 0.43% (21,555.86) A2/A+ A 3.21 2.95 57636QAW4 MASTERCARD INC 4.875 03/09/2028 945,000.00 03/06/2023 4.90% 944,083.35 944,262.97 101.12 4.56% 955,560.66 22,010.62 0.62% 11,297.69 Aa3/A+ NA 4.02 3.47 Total Corporate 44,535,000.00 2.22% 44,570,604.22 44,470,402.98 96.36 5.26% 42,872,573.09 252,173.78 27.92% (1,597,829.88) A1/A+ AA- 1.61 1.40 MONEY MARKET FUND 992995944 WC MMF SWEEP 50,607.29 -- 2.85% 50,607.29 50,607.29 1.00 2.85% 50,607.29 0.00 0.03% 0.00 NA/NA NA 0.00 0.00 VP4520004 WF ADV 100%TREAS MM FD-SVC CL #008 393,724.13 -- 0.01% 393,724.13 393,724.13 1.00 0.01% 393,724.13 0.00 0.26% 0.00 Aaa/ AAAm NA 0.00 0.00 Total Money Market Fund 444,331.42 0.33% 444,331.42 444,331.42 1.00 0.33% 444,331.42 0.00 0.29% 0.00 Aaa/AAA NA 0.00 0.00 34 48 AC 03-21-2024 48 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration MUNICIPAL BONDS 13063DRK6 CALIFORNIA ST 2.4 10/01/2024 755,000.00 10/16/2019 1.92% 772,342.35 757,057.24 98.32 5.34% 742,293.35 7,550.00 0.48% (14,763.89) Aa2/AA- AA 0.59 0.56 Total Municipal Bonds 755,000.00 10/16/2019 1.92% 772,342.35 757,057.24 98.32 5.34% 742,293.35 7,550.00 0.48% (14,763.89) Aa2/AA- AA 0.59 0.56 SUPRANATIONAL 45950KCT5 INTERNATIONAL FINANCE CORP 0.375 07/16/2025 2,500,000.00 05/27/2021 0.66% 2,471,150.00 2,490,383.33 94.02 4.91% 2,350,487.72 1,171.88 1.53% (139,895.61) Aaa/AAA NA 1.38 1.34 459058JL8 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 0.5 10/28/2025 2,400,000.00 -- 0.60% 2,388,859.25 2,396,067.58 93.18 4.81% 2,236,332.38 4,100.00 1.46% (159,735.19) Aaa/AAA NA 1.66 1.61 4581X0DV7 INTER-AMERICAN DEVELOPMENT BANK 0.875 04/20/2026 2,460,000.00 04/13/2021 0.97% 2,448,733.20 2,455,187.24 92.39 4.65% 2,272,847.33 7,832.71 1.48% (182,339.91) Aaa/AAA NA 2.14 2.06 Total Supranational 7,360,000.00 0.74% 7,308,742.45 7,341,638.15 93.21 4.79% 6,859,667.44 13,104.58 4.47% (481,970.71) Aaa/AAA NA 1.72 1.67 US TREASURY 912828XX3 UNITED STATES TREASURY 2.0 06/30/2024 2,000,000.00 -- 1.80% 2,018,574.22 2,001,273.03 98.89 5.34% 1,977,890.62 6,703.30 1.29% (23,382.41) Aaa/AA+ AA+ 0.33 0.33 912797GB7 UNITED STATES TREASURY 07/11/2024 1,000,000.00 07/27/2023 5.41% 950,378.99 981,232.17 98.11 5.33% 981,127.67 0.00 0.64% (104.50) P-1/A-1+ F1+ 0.36 0.35 912797GK7 UNITED STATES TREASURY 08/08/2024 1,000,000.00 08/30/2023 5.40% 951,232.07 977,251.11 97.72 5.31% 977,193.33 0.00 0.64% (57.78) P-1/A-1+ F1+ 0.44 0.43 912828D56 UNITED STATES TREASURY 2.375 08/15/2024 1,700,000.00 09/18/2019 1.73% 1,753,191.41 1,704,957.01 98.68 5.29% 1,677,621.10 1,663.80 1.09% (27,335.91) Aaa/AA+ AA+ 0.46 0.45 912797GL5 UNITED STATES TREASURY 09/05/2024 1,000,000.00 09/25/2023 5.45% 950,526.04 973,040.28 97.37 5.25% 973,732.22 0.00 0.63% 691.94 P-1/A-1+ F1+ 0.52 0.50 912828YY0 UNITED STATES TREASURY 1.75 12/31/2024 2,100,000.00 03/15/2022 1.97% 2,087,203.13 2,096,177.23 97.27 5.13% 2,042,660.15 6,158.65 1.33% (53,517.08) Aaa/AA+ AA+ 0.84 0.81 912828ZC7 UNITED STATES TREASURY 1.125 02/28/2025 1,500,000.00 03/18/2020 0.81% 1,523,144.53 1,504,662.21 96.21 5.06% 1,443,164.07 45.86 0.94% (61,498.14) Aaa/AA+ AA+ 1.00 0.97 91282CED9 UNITED STATES TREASURY 1.75 03/15/2025 3,100,000.00 -- 2.23% 3,057,617.20 3,085,100.97 96.69 5.05% 2,997,433.59 25,038.46 1.95% (87,667.38) Aaa/AA+ AA+ 1.04 1.00 35 49 AC 03-21-2024 49 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration 912828ZL7 UNITED STATES TREASURY 0.375 04/30/2025 2,500,000.00 03/21/2022 2.22% 2,360,839.85 2,447,891.58 94.88 4.94% 2,371,972.65 3,142.17 1.54% (75,918.92) Aaa/AA+ AA+ 1.17 1.13 91282CAB7 UNITED STATES TREASURY 0.25 07/31/2025 1,500,000.00 03/12/2021 0.72% 1,469,765.63 1,490,224.41 93.77 4.84% 1,406,601.57 309.07 0.92% (83,622.84) Aaa/AA+ AA+ 1.42 1.38 91282CAM3 UNITED STATES TREASURY 0.25 09/30/2025 2,400,000.00 -- 0.56% 2,366,140.63 2,388,287.06 93.16 4.78% 2,235,937.49 2,508.20 1.46% (152,349.57) Aaa/AA+ AA+ 1.59 1.54 91282CAT8 UNITED STATES TREASURY 0.25 10/31/2025 2,450,000.00 -- 0.49% 2,422,492.19 2,440,397.56 92.85 4.76% 2,274,863.27 2,052.88 1.48% (165,534.29) Aaa/AA+ AA+ 1.67 1.62 91282CAZ4 UNITED STATES TREASURY 0.375 11/30/2025 2,250,000.00 03/26/2021 0.76% 2,209,658.20 2,234,898.41 92.77 4.72% 2,087,402.36 2,120.90 1.36% (147,496.06) Aaa/AA+ AA+ 1.75 1.70 91282CBH3 UNITED STATES TREASURY 0.375 01/31/2026 2,500,000.00 05/27/2021 0.75% 2,456,445.31 2,482,134.68 92.21 4.66% 2,305,273.45 772.66 1.50% (176,861.23) Aaa/AA+ AA+ 1.92 1.87 91282CBW0 UNITED STATES TREASURY 0.75 04/30/2026 2,500,000.00 05/27/2021 0.80% 2,493,652.34 2,497,210.98 92.19 4.57% 2,304,785.15 6,284.34 1.50% (192,425.83) Aaa/AA+ AA+ 2.17 2.10 91282CCZ2 UNITED STATES TREASURY 0.875 09/30/2026 1,400,000.00 10/18/2021 1.19% 1,379,054.68 1,389,069.49 91.33 4.46% 1,278,593.75 5,120.90 0.83% (110,475.74) Aaa/AA+ AA+ 2.59 2.49 91282CDG3 UNITED STATES TREASURY 1.125 10/31/2026 1,400,000.00 11/15/2021 1.25% 1,391,468.75 1,395,406.61 91.65 4.48% 1,283,132.82 5,278.85 0.84% (112,273.80) Aaa/AA+ AA+ 2.67 2.56 91282CJP7 UNITED STATES TREASURY 4.375 12/15/2026 2,500,000.00 12/28/2023 4.01% 2,525,097.66 2,523,636.34 99.80 4.45% 2,494,921.88 23,010.59 1.62% (28,714.46) Aaa/AA+ AA+ 2.79 2.58 91282CEW7 UNITED STATES TREASURY 3.25 06/30/2027 3,250,000.00 -- 3.18% 3,260,312.50 3,256,692.38 96.52 4.38% 3,136,884.76 17,700.89 2.04% (119,807.62) Aaa/AA+ AA+ 3.33 3.10 91282CFB2 UNITED STATES TREASURY 2.75 07/31/2027 400,000.00 08/22/2022 3.12% 393,218.75 395,309.92 94.86 4.38% 379,437.50 906.59 0.25% (15,872.42) Aaa/AA+ AA+ 3.42 3.20 91282CFH9 UNITED STATES TREASURY 3.125 08/31/2027 4,500,000.00 -- 3.28% 4,468,902.34 4,478,119.21 95.96 4.38% 4,318,066.40 382.13 2.81% (160,052.82) Aaa/AA+ AA+ 3.50 3.26 91282CFM8 UNITED STATES TREASURY 4.125 09/30/2027 3,450,000.00 -- 4.31% 3,421,152.34 3,428,999.25 99.19 4.37% 3,422,103.51 59,491.29 2.23% (6,895.74) Aaa/AA+ AA+ 3.59 3.24 91282CFZ9 UNITED STATES TREASURY 3.875 11/30/2027 850,000.00 12/05/2022 3.81% 852,656.25 851,998.02 98.34 4.36% 835,888.67 8,279.37 0.54% (16,109.35) Aaa/AA+ AA+ 3.75 3.41 91282CGC9 UNITED STATES TREASURY 3.875 12/31/2027 2,750,000.00 -- 3.67% 2,775,107.42 2,769,549.78 98.33 4.35% 2,704,023.44 17,858.00 1.76% (65,526.34) Aaa/AA+ AA+ 3.84 3.50 91282CGH8 UNITED STATES TREASURY 3.5 01/31/2028 3,000,000.00 02/07/2023 3.81% 2,957,929.69 2,966,885.25 97.00 4.34% 2,909,882.82 8,653.85 1.89% (57,002.43) Aaa/AA+ AA+ 3.92 3.60 91282CGP0 UNITED STATES TREASURY 4.0 02/29/2028 3,700,000.00 -- 4.01% 3,699,113.28 3,699,397.42 98.77 4.34% 3,654,472.65 402.17 2.38% (44,924.77) Aaa/AA+ AA+ 4.00 3.65 36 50 AC 03-21-2024 50 of 98 HOLDINGS REPORT City of Cupertino |Account #10659 |As of February 29,2024 Cusip Security Description Par Value/ Units Purchase Date Purchase Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. %of Port. Gain/Loss Moody's/ S&P Fitch Maturity Duration Total US Treasury 56,700,000.00 2.57% 56,194,875.40 56,459,802.34 96.14 4.68% 54,475,066.86 203,884.94 35.47% (1,984,735.49) Aaa/AA+ AA+ 2.32 2.17 Total Portfolio 159,295,777.84 2.28% 159,143,601.10 159,043,840.47 96.19 4.96% 153,559,255.07 628,204.39 100.00% (5,484,585.40) Aa2/AA- AA 1.97 1.70 Total Market Value + Accrued 154,187,459.46 37 51 AC 03-21-2024 51 of 98 SECTION |Section 4 |Transactions 38 52 AC 03-21-2024 52 of 98 TRANSACTION LEDGER City of Cupertino |Account #10659 |As of February 29,2024 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss ACQUISITIONS Purchase 02/01/2024 0.08 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(0.08)0.00 (0.08)0.00 Purchase 02/01/2024 3,005.66 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(3,005.66)0.00 (3,005.66)0.00 Purchase 02/01/2024 125.97 WC MMF SWEEP 1.000 2.85%(125.97)0.00 (125.97)0.00 Purchase 02/09/2024 1,700.00 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(1,700.00)0.00 (1,700.00)0.00 Purchase 02/12/2024 17,737.50 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(17,737.50)0.00 (17,737.50)0.00 Purchase 02/13/2024 6,045.00 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(6,045.00)0.00 (6,045.00)0.00 Purchase 02/15/2024 3,239.17 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(3,239.17)0.00 (3,239.17)0.00 Purchase 02/15/2024 436,382.29 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(436,382.29)0.00 (436,382.29)0.00 Purchase 02/16/2024 49,729.50 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(49,729.50)0.00 (49,729.50)0.00 Purchase 02/20/2024 260,224.65 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(260,224.65)0.00 (260,224.65)0.00 Purchase 02/21/2024 37,844.33 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(37,844.33)0.00 (37,844.33)0.00 Purchase 02/26/2024 17275RBQ4 830,000.00 CISCO SYSTEMS INC 4.8 02/26/2027 99.870 4.85%(828,921.00)0.00 (828,921.00)0.00 Purchase 02/29/2024 152,750.00 WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%(152,750.00)0.00 (152,750.00)0.00 Total Purchase 1,798,784.15 (1,797,705.15)0.00 (1,797,705.15)0.00 TOTAL ACQUISITIONS 1,798,784.15 (1,797,705.15)0.00 (1,797,705.15)0.00 DISPOSITIONS Sale 02/01/2024 (125.97)WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%125.97 0.00 125.97 0.00 Sale 02/08/2024 (88.01)WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%88.01 0.00 88.01 0.00 39 53 AC 03-21-2024 53 of 98 TRANSACTION LEDGER City of Cupertino |Account #10659 |As of February 29,2024 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Sale 02/09/2024 (9,380.44)WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%9,380.44 0.00 9,380.44 0.00 Sale 02/26/2024 (729,640.86)WF ADV 100%TREAS MM FD- SVC CL #008 1.000 0.01%729,640.86 0.00 729,640.86 0.00 Total Sale (739,235.28)739,235.28 0.00 739,235.28 0.00 TOTAL DISPOSITIONS (739,235.28)739,235.28 0.00 739,235.28 0.00 OTHER TRANSACTIONS Coupon 02/01/2024 3137BFE98 0.00 FHMS K-041 A2 3.171 10/25/2024 0.47%3,391.03 0.00 3,391.03 0.00 Coupon 02/01/2024 3137BLMZ8 0.00 FHMS K-049 A2 3.01 07/25/2025 0.78%2,508.33 0.00 2,508.33 0.00 Coupon 02/01/2024 3137BLW95 0.00 FHMS K-050 A2 3.334 08/25/2025 1.13%2,639.42 0.00 2,639.42 0.00 Coupon 02/01/2024 3137BM7C4 0.00 FHMS K-051 A2 3.308 09/25/2025 2.26%1,212.93 0.00 1,212.93 0.00 Coupon 02/01/2024 3137BN6G4 0.00 FHMS K-053 A2 2.995 12/25/2025 2.28%1,422.62 0.00 1,422.62 0.00 Coupon 02/01/2024 3137BSP72 0.00 FHMS K-058 A2 2.653 08/25/2026 1.35%1,437.04 0.00 1,437.04 0.00 Coupon 02/01/2024 3137FBBX3 0.00 FHMS K-068 A2 3.244 08/25/2027 4.32%2,703.33 0.00 2,703.33 0.00 Coupon 02/09/2024 69371RR40 0.00 PACCAR FINANCIAL CORP 0.5 08/09/2024 0.52%1,700.00 0.00 1,700.00 0.00 Coupon 02/12/2024 3137EAEP0 0.00 FEDERAL HOME LOAN MORTGAGE CORP 1.5 02/12/2025 1.52%17,737.50 0.00 17,737.50 0.00 Coupon 02/13/2024 06051GHY8 0.00 BANK OF AMERICA CORP 2.015 02/13/2026 1.06%6,045.00 0.00 6,045.00 0.00 Coupon 02/15/2024 89240BAC2 0.00 TAOT 2021-A A3 0.26 05/15/2025 0.28%32.54 0.00 32.54 0.00 Coupon 02/15/2024 44933LAC7 0.00 HART 2021-A A3 0.38 09/15/2025 0.39%39.87 0.00 39.87 0.00 40 54 AC 03-21-2024 54 of 98 TRANSACTION LEDGER City of Cupertino |Account #10659 |As of February 29,2024 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Coupon 02/15/2024 47789QAC4 0.00 JDOT 2021-B A3 0.52 03/16/2026 0.53%140.17 0.00 140.17 0.00 Coupon 02/15/2024 89238JAC9 0.00 TAOT 2021-D A3 0.71 04/15/2026 0.71%167.67 0.00 167.67 0.00 Coupon 02/15/2024 44935FAD6 0.00 HART 2021-C A3 0.74 05/15/2026 2.96%522.72 0.00 522.72 0.00 Coupon 02/15/2024 44891WAC3 0.00 HALST 2022-A A3 1.16 01/15/2025 1.17%164.38 0.00 164.38 0.00 Coupon 02/15/2024 43815BAC4 0.00 HAROT 2022-1 A3 1.88 05/15/2026 1.90%1,060.39 0.00 1,060.39 0.00 Coupon 02/15/2024 448977AD0 0.00 HART 2022-A A3 2.22 10/15/2026 2.23%1,705.74 0.00 1,705.74 0.00 Coupon 02/15/2024 47787JAC2 0.00 JDOT 2022 A3 0.36 09/15/2026 2.35%688.04 0.00 688.04 0.00 Coupon 02/15/2024 47800AAC4 0.00 JDOT 2022-B A3 3.74 02/16/2027 3.77%2,041.42 0.00 2,041.42 0.00 Coupon 02/15/2024 47800BAC2 0.00 JDOT 2022-C A3 5.09 06/15/2027 5.15%4,453.75 0.00 4,453.75 0.00 Coupon 02/15/2024 89231FAD2 0.00 TAOT 2023-C A3 5.16 04/17/2028 5.41%5,590.00 0.00 5,590.00 0.00 Coupon 02/15/2024 58769FAC9 0.00 MBART 2023-2 A3 5.95 11/15/2028 5.16%5,454.17 0.00 5,454.17 0.00 Coupon 02/15/2024 05522RDH8 0.00 BACCT 2023-2 A 4.98 11/16/2026 4.58%3,527.50 0.00 3,527.50 0.00 Coupon 02/15/2024 161571HV9 0.00 CHAIT 241 A 4.6 01/16/2029 4.61%3,239.17 0.00 3,239.17 0.00 Coupon 02/15/2024 912828D56 0.00 UNITED STATES TREASURY 2.375 08/15/2024 1.73%20,187.50 0.00 20,187.50 0.00 Coupon 02/15/2024 69371RQ25 0.00 PACCAR FINANCIAL CORP 2.15 08/15/2024 2.19%3,977.50 0.00 3,977.50 0.00 Coupon 02/15/2024 02589BAA8 0.00 AMXCA 2022-1A 2.21 03/17/2025 2.68%2,845.38 0.00 2,845.38 0.00 Coupon 02/15/2024 02582JJT8 0.00 AMXCA 2022-2A 3.39 05/15/2025 3.42%3,884.38 0.00 3,884.38 0.00 Coupon 02/16/2024 362554AC1 0.00 GMCAR 2021-4 A3 0.68 09/16/2026 0.68%133.89 0.00 133.89 0.00 41 55 AC 03-21-2024 55 of 98 TRANSACTION LEDGER City of Cupertino |Account #10659 |As of February 29,2024 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Coupon 02/16/2024 380146AC4 0.00 GMCAR 2022-1 A3 1.23 11/16/2026 1.27%242.96 0.00 242.96 0.00 Coupon 02/16/2024 362585AC5 0.00 GMCAR 2022-2 A3 3.1 02/16/2027 3.13%1,007.50 0.00 1,007.50 0.00 Coupon 02/16/2024 36268GAD7 0.00 GMCAR 2024-1 A3 4.85 12/18/2028 4.90%3,711.60 0.00 3,711.60 0.00 Coupon 02/20/2024 36265MAC9 0.00 GMALT 2022-1 A3 1.9 03/20/2025 1.91%580.49 0.00 580.49 0.00 Coupon 02/20/2024 89238LAC4 0.00 TLOT 2022-A A3 1.96 02/20/2025 2.00%924.12 0.00 924.12 0.00 Coupon 02/21/2024 43813GAC5 0.00 HAROT 2021-1 A3 0.27 04/21/2025 0.27%8.76 0.00 8.76 0.00 Coupon 02/21/2024 43815GAC3 0.00 HAROT 2021-4 A3 0.88 01/21/2026 0.90%217.44 0.00 217.44 0.00 Coupon 02/21/2024 438123AC5 0.00 HAROT 2023-4 A3 5.67 06/21/2028 5.63%3,803.63 0.00 3,803.63 0.00 Coupon 02/25/2024 05601XAC3 0.00 BMWLT 2022-1 A3 1.03 03/25/2025 1.15%64.85 0.00 64.85 0.00 Coupon 02/25/2024 05602RAD3 0.00 BMWOT 2022-A A3 3.21 08/25/2026 3.24%1,296.52 0.00 1,296.52 0.00 Coupon 02/25/2024 3135G05X7 0.00 FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.375 08/25/2025 0.47%4,687.50 0.00 4,687.50 0.00 Coupon 02/29/2024 912828ZC7 0.00 UNITED STATES TREASURY 1.125 02/28/2025 0.81%8,437.50 0.00 8,437.50 0.00 Coupon 02/29/2024 91282CFH9 0.00 UNITED STATES TREASURY 3.125 08/31/2027 3.28%70,312.50 0.00 70,312.50 0.00 Coupon 02/29/2024 91282CGP0 0.00 UNITED STATES TREASURY 4.0 02/29/2028 4.01%74,000.00 0.00 74,000.00 0.00 Total Coupon 0.00 269,948.75 0.00 269,948.75 0.00 Dividend 02/29/2024 0.00 WC MMF SWEEP 2.85%7.65 0.00 7.65 0.00 Dividend 02/29/2024 0.00 WF ADV 100%TREAS MM FD- SVC CL #008 0.01%1,679.45 0.00 1,679.45 0.00 Total Dividend 0.00 1,687.10 0.00 1,687.10 0.00 42 56 AC 03-21-2024 56 of 98 TRANSACTION LEDGER City of Cupertino |Account #10659 |As of February 29,2024 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Management Fee 02/08/2024 CCYUSD (88.01)Cash 0.00%(88.01)0.00 (88.01)0.00 Management Fee 02/09/2024 CCYUSD (9,380.44)Cash 0.00%(9,380.44)0.00 (9,380.44)0.00 Total Management Fee (9,468.45)(9,468.45)0.00 (9,468.45)0.00 Principal Paydown 02/01/2024 3137BFE98 2,860.16 FHMS K-041 A2 3.171 10/25/2024 0.47%2,860.16 --2,860.16 0.00 Principal Paydown 02/15/2024 89240BAC2 38,310.95 TAOT 2021-A A3 0.26 05/15/2025 0.28%38,310.95 --38,310.95 0.00 Principal Paydown 02/15/2024 44933LAC7 22,808.74 HART 2021-A A3 0.38 09/15/2025 0.39%22,808.74 --22,808.74 (0.00) Principal Paydown 02/15/2024 47789QAC4 37,705.98 JDOT 2021-B A3 0.52 03/16/2026 0.53%37,705.98 --37,705.98 0.00 Principal Paydown 02/15/2024 89238JAC9 22,192.11 TAOT 2021-D A3 0.71 04/15/2026 0.71%22,192.11 --22,192.11 0.00 Principal Paydown 02/15/2024 44935FAD6 71,578.86 HART 2021-C A3 0.74 05/15/2026 3.69%71,578.86 --71,578.86 (0.00) Principal Paydown 02/15/2024 44891WAC3 57,807.77 HALST 2022-A A3 1.16 01/15/2025 1.17%57,807.77 --57,807.77 (0.00) Principal Paydown 02/15/2024 43815BAC4 45,160.24 HAROT 2022-1 A3 1.88 05/15/2026 1.90%45,160.24 --45,160.24 (0.00) Principal Paydown 02/15/2024 448977AD0 57,330.32 HART 2022-A A3 2.22 10/15/2026 2.23%57,330.32 --57,330.32 (0.00) Principal Paydown 02/15/2024 47787JAC2 27,004.20 JDOT 2022 A3 0.36 09/15/2026 2.35%27,004.20 --27,004.20 (0.00) Principal Paydown 02/16/2024 362554AC1 15,866.07 GMCAR 2021-4 A3 0.68 09/16/2026 0.68%15,866.07 --15,866.07 0.00 Principal Paydown 02/16/2024 380146AC4 14,450.60 GMCAR 2022-1 A3 1.23 11/16/2026 1.27%14,450.60 --14,450.60 (0.00) Principal Paydown 02/16/2024 362585AC5 14,316.88 GMCAR 2022-2 A3 3.1 02/16/2027 3.13%14,316.88 --14,316.88 0.00 Principal Paydown 02/20/2024 36265MAC9 114,903.33 GMALT 2022-1 A3 1.9 03/20/2025 1.91%114,903.33 --114,903.33 0.00 Principal Paydown 02/20/2024 89238LAC4 143,816.71 TLOT 2022-A A3 1.96 02/20/2025 2.00%143,816.71 --143,816.71 0.00 Principal Paydown 02/21/2024 43813GAC5 10,022.60 HAROT 2021-1 A3 0.27 04/21/2025 0.27%10,022.60 --10,022.60 0.00 43 57 AC 03-21-2024 57 of 98 TRANSACTION LEDGER City of Cupertino |Account #10659 |As of February 29,2024 Transaction Type Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/ Sold Total Amount Gain/Loss Principal Paydown 02/21/2024 43815GAC3 23,791.90 HAROT 2021-4 A3 0.88 01/21/2026 0.90%23,791.90 --23,791.90 (0.00) Principal Paydown 02/25/2024 05601XAC3 41,949.05 BMWLT 2022-1 A3 1.03 03/25/2025 1.15%41,949.05 --41,949.05 (0.00) Principal Paydown 02/25/2024 05602RAD3 33,107.36 BMWOT 2022-A A3 3.21 08/25/2026 3.24%33,107.36 --33,107.36 0.00 Total Principal Paydown 794,983.83 794,983.83 --794,983.83 0.00 TOTAL OTHER TRANSACTIONS 785,515.38 1,057,151.23 0.00 1,057,151.23 0.00 44 58 AC 03-21-2024 58 of 98 Important Disclosures 2024 Chandler Asset Management, Inc, An Independent Registered Investment Adviser. Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio. Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index. Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services. This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment. Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy. Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively. Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account. As of February 29, 2024 45 59 AC 03-21-2024 59 of 98 Asset Class 10-Year Snapshot Disclosure As of February 29, 2024 US Small Cap Stocks – Morgan Stanley Capital International (MSCI) Small Cap 1750 – The MSCI Small Cap 1750 is a market capitalization weighted index that measures the performance of small capitalization U.S. stocks. US Mid Cap Stocks – Morgan Stanley Capital International (MSCI) Mid Cap 450 – The MSCI Mid Cap 450 is a market capitalization weighted index that measures the performance of mid-capitalization U.S. stocks. US Large Cap Stocks – Standard & Poor’s 500 – The S&P 500 is a market value weighted index of 500 large capitalization stocks. The 500 companies included in the index capture approximately 80% of available U.S. market capitalization. International Stocks – Morgan Stanley Capital International (MSCI) EAFE – The MSCI EAFE International Equity Index is a market capitalization weighted index that captures international equity performance of large and mid-cap stocks in the developed stock markets of Europe, Australasia, and the Far East. Emerging Market Stocks – Morgan Stanley Capital International (MSCI) Emerging Markets – The MSCI Emerging Markets Index is a market capitalization weighted index that captures equity performance of large and mid-cap stocks across emerging market countries. U.S. Real Estate – Morgan Stanley Capital International (MSCI) REIT – The MSCI US REIT Index is a free float-adjusted market capitalization index that is comprised of equity REITs. It represents about 99% of the US REIT universe and securities are classified in the REIT sector according to the Global Industry Classification Standard (GICS®). It excludes Mortgage REITs and selected Specialized REITs. International Real Estate – S&P Developed Ex-US Property – The S&P Developed Ex-US Property Index is a market capitalization weighted index that captures the performance of a universe of publicly traded property companies based in developing countries outside of the US. The companies included are engaged in real estate related activities, such as property ownership, management, development, rental and investment. US Core Bonds – ICE BofA US Corporate, Government, Mortgage – The ICE BofA US Corporate, Government, Mortgage index is a broad measure of US investment grade bond performance, including US Treasuries, agencies, investment-grade corporates and mortgage securities. US High Yield Bonds – ICE BofA US High Yield – The ICE BofA High Yield Bond Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. International Bonds – Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD – Index from 2/1/2013 – current. This index measures the performance of global investment grade debt from 24 local currency markets. This multi- currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers. S&P Citigroup International Govt Bond – Index from 1/1/2009 – 1/31/2013. This index measures the performance of sovereign bonds of non-U.S. developed countries. Diversified Commodities – S&P GSCI Commodity Index – The S&P GSCI Commodity Index is a world production-weighted measure of general commodity price movements and inflation in the world economy. It consists of a basket of physical commodity futures contracts. Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits the use of ICE Indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representation, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third-party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use is at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend Chandler, or any of its products or services. Bloomberg® and Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value Unhedged USD are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the index (collectively, "Bloomberg") and have been licensed for use for certain purposes by Chandler Asset Management Inc. Bloomberg is not affiliated with Chandler Asset Management Inc., and Bloomberg does not approve, endorse, review, or recommend this product. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to this product. Morgan Stanley Capital International® (MSCI), the MSCI indices are service marks of Morgan Stanley Capital International and its affiliates, and have been licensed for use for certain purposes by Chandler Asset Management Inc. MSCI is not affiliated with Chandler Asset Management Inc., and MSCI does not approve, endorse, review, or recommend these products. MSCI does not guarantee the timeliness, accurateness, or completeness of any data or information relating to these products. Disclosure: This report is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgement. All investments contain risk and may lose value. Fixed income investments are subject to interest rate, credit, and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates. International: Non-US markets may be more volatile due to a variety of factors including less liquidity, transparency and oversight of companies and assets. Values of non-US investments may fluctuate due to changes in currency exchange rates. Non-US companies are also subject to risks that come with political and economic stability that may affect their respective countries. These risks may be greater in emerging market countries. Equities: Investments on equities are subject to risks from stock market fluctuations that occur in response to economic and business developments. 46 60 AC 03-21-2024 60 of 98 Benchmark Disclosures ICE BofA 1-3 Yr US Treasury & Agency Index The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. As of February 29, 2024 47 61 AC 03-21-2024 61 of 98 CITY OF CUPERTINO Agenda Item 24-13046 Agenda Date: 3/21/2024 Agenda #: 6. Subject:INFORMATIONAL ITEM Receive The Pun Group Presentation Receive The Pun Group Presentation Presenter: Jonathan Orozco, Finance Manager, and The Pun Group 5:05(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™62 AC 03-21-2024 62 of 98 Cupertino, City of AU -C 260 Communication with Those Charged with Governance For the Year Ended June 30, 2023 3/21/2024 63 AC 03-21-2024 63 of 98 2 Agenda Audit of the City of Cupertino for the Year Ending June 30, 2023 ww w . p u n g r o u p . c o m •Scope of Work •Our Responsibility in accordance with Professional Standards •Management Responsibilities •Engagement Team •Implementation of New GASB Pronouncements 3/21/2024 64 AC 03-21-2024 64 of 98 3 Scope of Work •Audit of the Annual Comprehensive Financial Report (ACFR) •Report on Financial Statements •Report on internal control over financial reporting and on compliance in accordance with Government Auditing Standards •Single Audit (applicable if total expenditures of federal awards exceed $750,000) •Report on compliance over major federal programs, schedule of expenditures of federal awards and internal control in accordance with 2 CFR 200 Audit of the City of Cupertino for the Year Ended June 30, 2023 3/21/2024 ww w . p u n g r o u p . c o m 65 AC 03-21-2024 65 of 98 4 Our Responsibility in Accordance with Professional Standards •Form and express an opinion about whether the financial statements that have been prepared by management with Board oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America •Plan and perform the audit to obtain “reasonable” assurance (not “absolute” assurance) about whether the financial statements are free of material misstatements. •Consider internal control over financial reporting. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. •Exercise professional judgment and maintain professional skepticism throughout the audit. Audit of the City of Cupertino for the Year Ended June 30, 2023 3/21/2024 ww w . p u n g r o u p . c o m 66 AC 03-21-2024 66 of 98 5 Our Responsibility in Accordance with Professional Standards •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. Audit of City of Cupertino for the Year Ended June 30, 2023 3/21/2024 ww w . p u n g r o u p . c o m 67 AC 03-21-2024 67 of 98 6 Management Responsibilities •Preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, •Design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. •In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. ww w . p u n g r o u p . c o m 3/21/2024 68 AC 03-21-2024 68 of 98 7 Service Team Today’s agenda •Why work with The Pun Group? •About the firm •A tailored audit approach •Understanding your needs •Audit approach •Audit timeline •Innovation and tools •How we will work together •Educational/training opportunities Ken Pun, CPA, CGMA Engagement Partner Andrew Roth, CPA Compliance Partner Sophia Kuo, CPA, M.B.A. Engagement/Project Director 69 AC 03-21-2024 69 of 98 ww w . p u n g r o u p . c p a 8 Audit approach •Perform audit procedures based on results from risk assessment •Perform substantial testing and analytical procedures •Confirm account balances, including banks, receivables, long-term debt, etc. •Complete compliance testing, including single audit •Obtain understanding of City operating environments •Obtain understanding of internal controls over financial reporting and compliance •Perform test of controls over significant transaction classes •Develop initial audit risk assessments based on test of control results •Perform preliminary analytical procedures •Perform client acceptance procedures and prepare engagement letter •Perform independence confirmation •Review prior year audit working papers and financial reports •Obtain understanding of current state of the City •Evaluate applicable GASB pronouncements and implementation guides •Develop audit work plan •Perform kick-off meeting with the City •Review minutes •Evaluate commitment and contingencies •Perform going concern evaluation •Inquire with City about subsequent events •Review financial statements and agree amount to audited trial balances •Draft management letter, which includes internal control matters, if identified •Perform GFOA Financial Reporting Checklist •Prepare independence auditors’ report and Government Auditing Standards report •Perform Engagement Partner and Quality Control review •Incorporate feedback from City, Quality Control, and Engagement Partner •Obtain Management Representation Letter •Obtain update from Attorneys •Final sign-offs on working papers and issue reports •Present audit to Management or governing body 1 Engagement Acceptance and General Planning 2 Planning & Internal Control Evaluation 3 Fieldwork 4 Post Fieldwork 5 Report Preparation & Review 6 Final Production Benefits •Client tailored approach emphasizing careful planning, open communication, proper assignment of responsibilities •An efficient and effective audit, so disruption to office operations is kept to a minimum •Offer beneficial observations and recommendation about policies and procedures for accounting and operating controls •Opportunities to make operations more efficient and reduce costs •Provide advisory services so recommendations can be implemented •Meet objectives at no additional cost 70 AC 03-21-2024 70 of 98 9 New GASB Pronouncements Audit of the City of Cupertino for the Year Ended June 30, 2023 3/21/2024 ww w . p u n g r o u p . c o m 2023 •Statement 91-Conduit Debt Obligations •Statement 94 –Public-Private and Public-Public Partnerships and Availability Payment Arrangements •Statement 96 –Subscription-Based Information Technology Arrangements •Statement 99 –Omnibus 2022. 71 AC 03-21-2024 71 of 98 10 Contact information Kenneth H. Pun, CPA, CGMA Managing Partner ken.pun@pungroup.cpa Sophia Kuo, CPA Director Sophia.kuo@pungroup.cpa “It is our commitment to only practice with the highest professional ethics and standards. We believe we owe that to the profession, our clients, and ourselves.” Kenneth H. Pun, CPA, CGMA Managing Partner 72 AC 03-21-2024 72 of 98 HQ -ORANGE COUNTY 200 E. Sandpointe Avenue Suite 600 Santa Ana, CA 92707 SAN DIEGO 4660 La Jolla Village Dr. Suite 100 San Diego CA92122 BAY AREA 2121 North California Blvd. Suite 290 Walnut Creek, CA 94596 LAS VEGAS 1980 Festival Plaza Drive Suite 300 Las Vegas, NV 89135 PHOENIX 2 North Central Avenue Suite 1800 Phoenix, AZ 85004 SACRAMENTO 1511 Corporate Way Suite 220 Sacramento, CA 95831 73 AC 03-21-2024 73 of 98 CITY OF CUPERTINO Agenda Item 24-13047 Agenda Date: 3/21/2024 Agenda #: 7. Subject:INFORMATIONAL ITEM Receive Moss Adams Presentation Receive Moss Adams Presentation Presenter: Jonathan Orozco, Finance Manager, and Moss Adams 5:15(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™74 AC 03-21-2024 74 of 98 City of Cupertino: Internal Audit Overview February 27, 2023 75 AC 03-21-2024 75 of 98 01 02 03 04 05 Agenda 01 02 03 04 05 City of Cupertino: Internal Audit Overview2 INTERNAL AUDIT BACKGROUND PURPOSE AND ROLE OF INTERNAL AUDIT AUDIT COMMITTEE BEST PRACTICES FY 23-24 WORK PLAN RESOURCES 76 AC 03-21-2024 76 of 98 •Different perspective than financial audit •Objective and independent are not mutually exclusive of collaborative and constructive •Prioritize opportunities for reducing risks, strengthening controls, and enhancing performance •Goes beyond the finance department •Government code requirement to evaluate the need •Best practices •Alignment with strategic goals Why Internal Audit? City of Cupertino: Internal Audit Overview3 77 AC 03-21-2024 77 of 98 Role of Internal Audit City of Cupertino: Internal Audit Overview4 Source: IIA 78 AC 03-21-2024 78 of 98 Holistic Internal Audit Program Components Tracking & ReportingCOpportunitiesBProgram InputsA •Enterprise Assessments •Employees and Residents •Performance Metrics •Risks •Controls •Compliance •Performance •Findings & Recommendations •Corrective Actions •Implementation •Validation City of Cupertino: Internal Audit Overview5 79 AC 03-21-2024 79 of 98 Key Inputs ANNUAL AUDIT PROGRAM PERFORMANCE METRICS EMPLOYEES & STAKEHOLDERSENTERPRISE ASSESSMENTS City of Cupertino: Internal Audit Overview6 80 AC 03-21-2024 80 of 98 Enterprise Assessments Enterprise Risk Assessment Enterprise Internal Controls Review Asset Management and Capital Program Payroll Operations/Service Delivery Monthly Account Reconciliation and Closing Risk Management and Internal Controls Budgeting Governance, Management, and Organization Cash Receipts and Cash Handling Funding and Economics Revenues and Billings Human Resources Accounts Receivables and Write-offs Technology Grants Management and Compliance Safety and Security Information Technology Access Accounting, Financial Reporting, and Procurement Accounts Payable Fraud, Waste, and Abuse Overall Control Environment City of Cupertino: Internal Audit Overview7 81 AC 03-21-2024 81 of 98 Assessing Risks 8 City of Cupertino: Internal Audit Overview 82 AC 03-21-2024 82 of 98 •Program development •Training at all levels •Follow up and follow through •Confidentiality protection •Protection from retaliation •Quarterly reporting Administering FWA Program & Ethics Hotline City of Cupertino: Internal Audit Overview9 83 AC 03-21-2024 83 of 98 •Objective •Independent •Collaborative •Constructive •Comprehensive Sustaining Philosophy & Approach City of Cupertino: Internal Audit Overview10 84 AC 03-21-2024 84 of 98 •To review the annual audit report and management letter •To recommend appointment of internal/external auditors •To review the monthly treasurer’s report •To recommend a budget format •To review City investment policies and internal controls of such policies •To review internal audit reports •To review quarterly Fraud, Waste, and Abuse program reports Cupertino Audit Committee Powers & Functions City of Cupertino: Internal Audit Overview11 85 AC 03-21-2024 85 of 98 •Independent review and oversight of the City’s financial reporting process, internal controls, and audit functions •Ensure management properly develops and adheres to a system of internal controls, procedures are in place to assess management practices, and independent auditors objectively assess financial reporting practices •Understand and monitor City risks, mitigation strategies, and corrective actions •Understand and oversee the FWA program •Shape the internal audit program by directing areas of focus and approving work plans Audit Committee Best Practices City of Cupertino: Internal Audit Overview12 86 AC 03-21-2024 86 of 98 •Align audit committee meeting agendas and meetings with priority areas •Distribute materials in advance to enable review •Highlight issues and critical discussion points •Encourage open dialogue and candid discussion to promote improvements Audit Committee Meeting Effectiveness City of Cupertino: Internal Audit Overview13 87 AC 03-21-2024 87 of 98 The City retained Moss Adams to serve as the designated Internal Auditor and conduct projects focusing on: •Risks •Internal controls •Efficiency and effectiveness •Best practices •Compliance Work is being completed under appropriate industry standards (IIA, GAGAS, AICPA) Introduction to Moss Adams City of Cupertino: Internal Audit Overview14 88 AC 03-21-2024 88 of 98 Internal Audit Program Components Internal Audit Plan Risks Internal Controls Compliance Performance Accounting and financial reporting, asset management, capital programs, compliance, economics and funding, fraud, governance, human resources, internal controls, maintenance and operations, management, operations and service delivery, organization and staffing, processes and procedures, procurement, public safety, risk management, and technologyFu n c t i o n s C o m p o n e n t s P l a n Ci t y I n t e r n a l A u d i t A n n u a l City of Cupertino: Internal Audit Overview15 89 AC 03-21-2024 89 of 98 FOCUS ACCOMPLISHMENTS Enterprise Risk Assessments 2021, 2024 Internal Controls Projects Completed 2 Performance/Efficiency Projects Completed 7 Ethics Hotline Program Development 2022 Recommendations Validated To Come Internal Audit Program Review City of Cupertino: Internal Audit Overview16 90 AC 03-21-2024 90 of 98 FY 23-24 Internal Audit Program City of Cupertino: Internal Audit Overview17 Citywide Policy Review Ongoing Internal Audit Program Management Enterprise Risk Assessment July Oct Jan Apr Audit Committee Meetings 91 AC 03-21-2024 91 of 98 •Government Finance Officer’s Association (GFOA) •GFOA Best Practices Guide on Audit Committees •Institute of Internal Auditors •IIA Publication “The Audit Committee: Internal Audit Oversight” •U.S. Government Accountability Office (GAO) •American Institute of Certified Public Accountants •Association of Certified Fraud Examiners City of Cupertino: Internal Audit Overview18 Resources 92 AC 03-21-2024 92 of 98 Questions? City of Cupertino: Internal Audit Overview19 93 AC 03-21-2024 93 of 98 The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought. Assurance, tax, and consulting offered through Moss Adams LLP. ISO/IEC 27001 services offered through Cadence Assurance LLC, a Moss Adams company. Investment advisory offered through Moss Adams Wealth Advisors LLC. ©2022 Moss Adams LLP City of Cupertino: Internal Audit Overview20 94 AC 03-21-2024 94 of 98 CITY OF CUPERTINO Agenda Item 24-13048 Agenda Date: 3/21/2024 Agenda #: 8. Subject:INFORMATIONAL ITEM Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Presenter: Thomas Leung, Budget Manager 5:25(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™95 AC 03-21-2024 95 of 98 CITY OF CUPERTINO Agenda Item 24-13049 Agenda Date: 3/21/2024 Agenda #: 9. Subject:INFORMATIONAL ITEM Budget Format Review Budget Format Review Presenter: Thomas Leung, Budget Manager 5:35(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™96 AC 03-21-2024 96 of 98 CITY OF CUPERTINO Agenda Item 24-13050 Agenda Date: 3/21/2024 Agenda #: 10. Subject:INFORMATIONAL ITEM Receive the proposed Audit Committee 2024 Schedule and Workplan Receive the proposed Audit Committee 2024 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:45(10) CITY OF CUPERTINO Printed on 3/20/2024Page 1 of 1 powered by Legistar™97 AC 03-21-2024 97 of 98 January 29, 2024 March 21,2024 April 22, 2024 May/June XX, 2024 July 22, 2024 October 28, 2024 Nov/Dec XX, 2024 Appoint Audit Committee Chair and Vice Chair Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Approve Prior Meeting Minutes Receive the committee’s roles and responsibilities (CMC 2.88.100) OPEB & Pension Trust Performance Report for Quarter Ending December 31, 2023 and March 31, 2024 Moss Adams ‐ Citywide Policy Review report OPEB & Pension Trust Performance Report for Quarter Ending June 30, 2024 OPEB & Pension Trust Performance Report for Quarter Ending September 30, 2024 Review of FY 2023‐24 ACFR and Supplemental Reports (tentative) Receive PARS Presentation Quarterly Treasurerʹs Investment Report for Quarter Ending December 31, 2023 and March 31, 2024 Moss Adams ‐ Enterprise Risk Assessment Report Quarterly Treasurerʹs Investment Report for Quarter Ending June 30, 2024 Quarterly Treasurerʹs Investment Report for Quarter Ending September 30, 2024 Receive Chandler Investments Presentation Internal Audit and Fraud, Waste, and Abuse Program Update Storm Drain Agreed Upon Procedures (AUP) Internal Audit and Fraud, Waste, and Abuse Program Update Internal Audit and Fraud, Waste, and Abuse Program Update Receive The Pun Group Presentation Annual Review of City Investment Policy Internal Audit Program Annual Review of OPEB and Pension Trust Investment Policies Receive Moss Adams Presentation Internal Audit Program Update Interim Audit Receive Budget Feedback on the City’s current recommended Service Level Reductions (SLRs) Review of FY 2022‐23 ACFR and Supplemental Reports (tentative) Budget Format Review Receive the proposed Audit Committee 2024 Schedule and Workplan Source: Cupertino, CA Municipal Code, Chapter 2.88.100: Audit Committee The powers and functions of the Audit Committee shall be as follows: A: To review the annual audit report and management letter; B: To recommend appointment of auditors; C. To review the quarterly Treasurer’s Investment report; D. To recommend a budget format; E. To review City investment policies and internal controls of such policies. F. To recommend appointment of internal auditors; G. To review internal audit reports. H. To review quarterly Fraud, Waste, and Abuse Program reports. (Ord. 22-2243 § 1, 2023; Ord. 20-2208, § 1, 2020; Ord. 1679, § 1 (part), 1995) CITY OF CUPERTINO ‐ AUDIT COMMITTEE 2024 SCHEDULE AND WORK PLAN Summary of Duties – Powers – Responsibilities of Cupertino Audit Committee CA N C E L L E D 98 AC 03-21-2024 98 of 98