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INDEPENDENT ACCOUNTANTS’ REPORT
ON AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of the City Council
City of Orange, California
We have performed the procedures enumerated below to assist the City of Orange, California (the City) in evaluating the Treasurer’s Report for the month ended June 30, 2025, for compliance with the provisions of the California Government Code (the Code) and with the City ’s investment policy dated June 25, 2024, (the Policy).
The City’s management is responsible for the Treasu rer’s Report for the month ended June 30, 2025, the compliance with the Policy and the Code and for selecting that such criteria are appropriate for your purpose.
The City has agreed to and acknowledged that the proced ures performed are appropriate to meet the intended purpose of evaluating the Treasurer’s Report for the month ended June 30, 2025, for compliance with the provision of the Code and with the Policy. This report ma y not be suitable for any other purpose. The procedures performed may not address all the items of interest to a us er of this report and may not meet the needs of all users of this report and, as such, users are responsi ble for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained a copy of the Investment Portfolio Report as of June 30, 2025 and agreed individual investments/deposits to supporting documentation obtained from the City and reconciled such to the Investment Portfolio Report. We traced total investments listed on the Investment Portfolio Report to the City’s general ledger.
Finding: No exceptions were noted as a result of this procedure.
2. We compared investments listed in the Investment Portfolio Report as of June 30, 2025, to the types of investments authorized for the City by the City’s in vestment policy and California Government Code Section 53601.
Finding: No exceptions were noted as a result of this procedure.
3. We compared the market value of the investments listed in the Investment Portfolio Report as of June 30, 2025 to the bank statements and other supporting documentation.
Finding: No exceptions were noted as a result of this procedure.
4. We
read the Investment Portfolio Report to ascertai n that it contained the in formation/data required by California Government Code Section 53646 and met the timing requirements of California Government Code Section 53646, as follows:
a. Included the type of investment, issuer, date of ma turity, par and dollar amount invested on all securities , inve
stments and monies held by the City.
b.
Included those funds under management of contracted parties.
To the Hon
orable Mayor and Members of the City Council
City of Orange, California
c.
Included market value (and source) as of the date of the report of all securities held by the City or un der manag
ement of contracted parties.
d.
Stated compliance of the portfolio to the investment policy of the City. e.
Included a statement addressing the ability of the City to meet the pool’s expenditure requirements for the next six months.
Finding: No e xceptions were noted as a result of this procedure.
5. We compared the investments listed in the Investment Portfolio Report as of June 30, 2025, to the prohib ited inve
stments listed in California Government Code Section 53601.6.
Finding: No e xceptions were noted as a result of this procedure.
6. We calculated the totals (cost basis) for the investm ent type s listed in the Investment Portfolio Report as of June 30, 2025 and compared those totals to the limitations imposed by the City’s invest ment policy and California Go
vernment Code Section 53601 for the specific investment types.
Finding: No exceptions were noted as a result of this procedur e.
7. We agreed individual investment maturity dates listed in the Investment Portfolio Report as of Jun
e 30, 2025, to the City’s copies of investment statements to determine if they conformed to the maturity requirements of the City’s investment policy and California Government Code section 53601.
Finding: No exceptions were noted as a result of this procedure.
8. We obtained and read the third-party custodial agreements a nd broker/dealer agreements in effect at the date of the Inve
stment Portfolio Report to determine if the agreements contained a cl ause addressing deliver y of se
curities and that the delivery method conformed to California Government Code section 53601.
Finding: The City does not have a formal agreement or cont ract with the broker/dealer since they are not required to use the broker/dealer for trades an d there are no fees or commissions charged. The City Treasurer authorizes the use of designated brokers and ensures that the City has written documentation with the broker’s signature stati ng that the broker will adhere to the City’s investment policy.
We were engaged by the City to perform this a greed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the obj ective of which would be t he expression of an opinion or conclusion, respectively, on evaluating the Treasurer’s Report for the month ended June 30, 2025, for compliance with the provisions of the Code) and with t he Policy. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet ou r other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement This report is intended solely for the information of the City Council and management of the City of Orange and is not intended to be, and should not be, used by anyone other than these specified parties.
Irvine, California
November 19, 2025