Agenda — Finance Committee, August 28, 2023

AGENDA

FINANCE/AUDIT COMMITTEE

SPECIAL MEETING NOTICE
AUGUST 28, 2023
PUBLIC MEETING 3:00 P.M.

Members
Victor M. Gordo, Mayor
Tyron Hampton, District 1
Felicia Williams, District 2

STAFF
Matthew Hawkesworth, Director of Finance
Theresa Fuentes, Assistant City Attorney
Gloria Acevedo, Recording Secretary

MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.

In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.

Please call (626) 744-4124 to request use of a listening device.

Language translation services are available for this meeting by calling (626)744-4124 at least 24 hours in advance.

Habrá servicio de interpretación disponible para éstas juntas llamando al (626)744-4124 por lo menos con 24 horas de anticipación.

Meetings are broadcast live on cable Channel 3 and on the Internet at http://pasadena.granicus.com/mediaplayer.php?camera_id=2&publish_id=9 and https://www.pasadenamedia.org/watch/ (Click on Video Streamlining on the right side of the screen).

Items on the agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
https://www.cityofpasadena.net/commissions/city-council-finance-committee/

Materials related to an item on this Agenda submitted to the Finance/Audit Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”

PUBLIC COMMENT AT THE FINANCE/AUDIT COMMITTEE MEETING FOR AUGUST 28, 2023, AT 3:00 P.M. WILL BE ACCEPTED IN-PERSON AND BY VIDEOCONFERENCE/TELECONFERENCE.

Link to City Meeting Policy:
cityofpasadena.net/CityCouncilMeetingPolicy

In order to facilitate public participation at meetings the City will accept public comment in the following manner:

1. Whether participating in-person or virtually at the meeting, members of the public may provide public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
www.cityofpasadena.net/commissions/public-comment/
If a public comment speaker wishes to speak on more than one agenda item, please indicate which items on the online form (multiple item speakers will be handled according to the process posted on the agenda and as specified in the City meeting policy). Public comments are limited to 3 minutes each, and the Chair and Committee may limit this time if reasonable under the circumstances.

2. In-person Meeting Participation: Complete an online speaker card at the following website: www.cityofpasadena.net/commissions/public-comment/ After submitting a public speaker card, members of the public may attend the meeting in-person by coming to the Pasadena City Council Chamber, Room S249 at City Hall at the date and start-time of the posted meeting.

Virtual Meeting Participation: For virtual participants, you may attend by connecting to the meeting using a computer, other electronic device, or by telephone. Please review the agenda to identify the published start time for the meeting and connect to the meeting just prior to, or at the start of the meeting.

To participate in public comment for an item and to be recognized to speak, it is required that the speaker login to the meeting using the same name or telephone number used on the Speaker Card form. This will allow City staff to locate and promote the speaker into the meeting when it is time for their public comment.

Participants’ phone calls to the Committee meeting will be recorded as part of the Committee meeting. By staying on the line and making public comment during the Committee meeting by phone, you are agreeing to have your phone call recorded. Following is the connectivity information for virtual participation:

Computer or electronic devices, join the meeting at: cityofpasadena.net/cczoom Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446

3. Speaker Card Help Line: If a public comment speaker needs assistance in completing a speaker card, please call the City Clerk’s Office at: (626) 744-4124.

Help line will open 30 minutes prior to the posted start time of the meeting.

4. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:
gac
[email protected]
C
orrespondence will be forwarded to the Committee prior to the start of the meeting, posted online, and made part of the legislative record for the item.

LIVESTREAM WITH CAPTIONING IS AVAILABLE AT WWW.PASADENAMEDIA.ORG, AND ALSO AT WWW.CITYOFPASADENA.NET/COMMISSIONS/AGENDAS, I

F YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION PURSUANT

TO THE AMERICANS WITH DISABILITIES ACT

BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORTH ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR
[email protected].

SPECIAL MEETING
AGENDA

FINANCE/AUDIT COMMITTEE
AU
GUST 28, 2023
Public Meeting: 3:00 P.M.

Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING - 3:00 P.M.

ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING

AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS

CONSIDERED

APPROVAL OF MINUTES
June 12, 2023 Special Meeting
June 26, 2023 Cancellation Notice
July 10, 2023 Cancellation Notice
July 24, 2023 Cancellation Notice
July 31, 2023 Special Meeting
August 14, 2023 Cancellation Notice

NEW BUSINESS

1. AM
ENDMENT OF THE HOUSING DEPARTMENT’S FISCAL YEAR 2024
OPERATING BUDGET IN THE AMOUNT OF $1,997,000; APPROVAL OF KEY

TERMS OF AFFORDABLE HOUSING LOAN AGREEMENT WITH HOME
OWNERSHIP FOR PERSONAL EMPOWERMENT, INC. TO REHABILITATE AND FINANCIALLY RESTRUCTURE RENTAL HOUSING PROJECTS AT 940 NORTH SUMMIT AVENUE AND 760 WORCESTER STREET FOR PERSONS

WITH INTELLECTUAL AND/OR DEVELOPMENTAL DISABILITIES

2. AM
ENDMENT OF THE HOUSING DEPARTMENT’S FISCAL YEAR 2024
OPERATING BUDGET IN THE AMOUNT OF $936,000; APPROVAL OF KEY

TERMS OF HOUSING ACQUISITION LOAN AGREEMENT WITH HERITAGE

HOUSING PARTNERS TO PROVIDE PURCHASE FINANCING IN AN
AMOUNT NOT TO EXCEED $936,000 TO IMPLEMENT PURCHASE OPTIONS ON AFFORDABLE HOMEOWNERSHIP UNITS AT 106 E. SUMMIT GROVE BOULEVARD, #102 AND 602 N. FAIR OAKS AVENUE, #120

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2 3. QUARTERLY INVESTMENT REPORT - QUARTER ENDING JUNE 30, 2023

INFORMATION ONLY

4. FINAL REPORT FOR THE AUDIT OF HIGH-RISK INVENTORY

ADJOURN

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APPR

OVAL OF MINUTES
 June 12, 2023 Special Meeting
 June 26, 2023 Cancellation Notice
 July 10, 2023 Cancellation Notice
 July 31, 2023 Special Meeting
 August 14, 2023 Cancellation Notice

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01 6/12/2023 Finance/Audit Committee

CITY OF PASADENA

FINANCE/AUDIT COMMITTEE MINUTES

PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
JUNE 12, 2023

SPECIAL MEETING
O
PENING Chair Gordo called the special meeting of the Finance/Audit Committee to order at 3:21 p.m.

ROLL CALL: Mayor Victor M. Gordo (Chair)
Councilmember Tyron Hampton
Vice Mayor Felicia Williams (Arrived at 3:35 p.m.)
S
taff: Miguel Márquez, City Manager
David Reyes, Assistant City Manager
Theresa Fuentes, Assistant City Attorney
Matthew Hawkesworth, Director of Finance
Tony Olmos, Director of Public Works
Chad Augustin, Fire Chief
Stacie Takeguchi, Assistant General Manager, Water and
Power
Peony Cheng, Management Analyst
Jeremy Marquette, Acting Assistant General Manager, Water and Power Kris Markarian, Deputy Director of Public Works/City Engineer Timothy Park, Budget Administrator
Armine Trashian, Controller
Jonathon Paul, Principal Administrative Analyst
Melissa Gray, Management Analyst
Stacy Jacobson, Management Analyst
Vic Erganian, Deputy Director of Finance/City Treasurer Gloria Acevedo, Recording Secretary
NE

W BUSINESS REPORT ON EMERGENCY REPAIRS OF STORM-RELATED DAMAGE

TO CITY FACILITIES AND INFRASTRUCTURE, AND AMENDMENTS

TO THE OPERATING AND CAPITAL IMPROVEMENT PROGRAM

BUDGETS
Chair Gordo introduced the item and Tony Olmos, Director of Public Works, provided a PowerPoint presentation and responded to questions.

Chair Gordo asked for clarification on the final cost for the procurement related to the emergency storm related repair to the Pasadena Public Health Department. Mr. Olmos responded that the final the cost will not be known until the procurement process is initiated and bids are received, the

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02 6/12/2023 Finance/Audit Committee
estimates are high and address the removal of the exterior sloped area surrounding the basement.

Councilmember Hampton requested a breakdown of dollars awarded to contractors by department and by zip code, who provided emergency work without going through the competitive bidding process. He stated informal bidding opportunities should go to Pasadena based businesses first.

Matthew Hawkesworth, Director of Finance and Mr. Olmos provided a response regarding how contractor selection is managed for emergency work related to Federal Emergency Management Agency (FEMA) reimbursable projects.

Public speaker Flavio Andrade from Pasadena echoed
Councilmember Hampton’s request to consider Pasadena
businesses first when going out to bid on construction projects.

It was moved by Councilmember Hampton seconded by Chair Gordo, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent: Vice Mayor Williams)

AUTHORIZE PURCHASE ORDER CONTRACTS WITH SHADE
STRUCTURES, INC. (DBA USA SHADE & FABRIC STRUCTURES)

FOR PLAYGROUND SHADE STRUCTURES AT CENTRAL PARK
PLAYGROUND FOR AN AMOUNT NOT -TO-EXCEED $363,372, AND

NO FAULT, LLC (DBA NO FAULT SAFETY SURFACING) FOR

PLAYGROUND SURFACING AT CENTRAL PARK PLAYGROUND FOR
AN AMOUNT NOT-TO-EXCEED $226,502
Chair Gordo introduced the item and Tony Olmos, Director of Public Works, provided a brief outline and responded to questions.

Vice Mayor Williams inquired about the process to get shade structures installed at City parks and about the available funding. Mr. Olmos stated that the Department of Public Works considers the existing availability of shade structures, the frequent use of the playground, and whether there is any other source of shade at the location to prioritize the installation of new shade structures. Mr. Olmos also sh ared that the City Council approved the design of shade structures at four parks for fiscal year 2024, of those four, funding is available to install a shade structure at Washington Park.

It was moved by Councilmember Hampton seconded by Vice Mayor Williams, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent:

None)

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03 6/12/2023 Finance/Audit Committee
AMENDMENTS TO FISCAL YEAR 2023 ADOPTED OPERATING
BUDGET
Chair Gordo introduced the item and Matthew Hawkesworth, Director of Finance, provided a quick outline and Jonathon Paul, Principal Administrative Analyst, provided a PowerPoint presentation.

It was moved by Vice Mayor Williams seconded by Councilmember Hampton, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent:

None)

AUTHORIZATION TO ENTER INTO A CONTRACT WITH LANCE, SOLL & LUNGHARD LLP FOR AUDIT SERVICES FOR FISCAL YEARS 2023 – 2025, WITH TWO ONE-YEAR OPTIONS
Chair Gordo introduced the item and Matthew Hawkesworth, Director of Finance, provided a quick outline. Armine Trashian, Controller, provided a PowerPoint presentation and responded to questions.

Councilmember Hampton asked several questions related to the qualification criteria and requested for future proposals to indicate clearly if higher scoring is given to criteria such as commitment to meeting deadlines and assigning dedicated staff to the project.

None)

QUARTERLY INVESTMENT REPORT - QUARTER ENDING MARCH
31, 2023
Chair Gordo introduced the item and Vic Erganian, Deputy Director of Finance/City Treasurer, provided a PowerPoint presentation and answered questions.

Chair Gordo welcomed the information that inflation is trending down.

None)
J
OINT ACTION: FISCAL YEAR 2023-2024 INVESTMENT POLICY AND

INVESTMENT STRATEGY
Chair Gordo introduced the item and Vic Erganian, Deputy Director of Finance/City Treasurer, provided a short outline of the item.

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04 6/12/2023 Finance/Audit Committee
Vice Mayor Williams thanked staff for their work o n the Environmental, Social, and Governance policy as it is viewed as a model by other cities and agencies.

None)

ADJOURNMENT On the order of the Chair, the special meeting of the Finance/Audit Committee was adjourned at 4:04 p.m.

A
TTEST: ______________________
Mayor Victor Gordo, Chair
Finance/Audit Committee
____
________________
Gloria Acevedo
Recording Secretary

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DEPARTMENT OF FINANCE

CITY OF PASADENA

NOTICE OF CANCELLATION

FINANCE COMMITTEE

SPECIAL MEETING
JUNE 26, 2023
NOTICE IS HEREBY GIVEN that the special meeting of the Finance Committee, scheduled for Monday, June 26, 2023, at 4:00 p.m. in the Pasadena City Hall, 100 North Garfield Avenue, Pasadena, is cancelled.

Vic
Finance Com
I HEREBY CERTIFY that this notice, in its entirety, was posted on the Internet at www.cityofpasadena.neUcommissions/city-council-finance-committee and on the Council Chamber Bulletin Board, Room S249 and the Bulletin Board in the rotunda area, City Hall, 100 North Garfield Avenue, this 22nd day of June, 2023, by 5:30 p.m., and that copies hereof were faxed, emailed or delivered to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing, all of which recipients are identified on the distribution list set forth herein below.

DISTRIBUTION:

City Council
City Manager
City Attorney
Public Information Officer
Los Angeles Times
Pasadena Independent
ColoradoBoulevard. net
La Opinion
Pasadena Journal
Pasadena Now
Pasadena Star News
Pasadena Weekly
Conversation Live
Gloria Acevedo, Recording Secretary
Finance Committee

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01 7/31/2023 Finance Committee

CITY OF PASADENA

FINANCE COMMITTEE MINUTES

PASADENA CITY HALL
100 NORTH GARFIELD AVENUE
CITY HALL COUNCIL CHAMBER S249
JULY 31, 2023

SPECIAL MEETING
O
PENING Chair Gordo called the special meeting of the Finance Committee to order at 3:07 p.m.

RO
LL CALL: Mayor Victor M. Gordo (Chair)
Councilmember Tyron Hampton
Vice Mayor Felicia Williams (Absent)
Staff: Miguel Márquez, City Manager
Brenda Harvey - Williams, Assistant City Manager
Theresa Fuentes, Assistant City Attorney
Matthew Hawkesworth, Director of Finance
Tony Olmos, Director of Public Works
Chad Augustin, Fire Chief
Matthew Feaster, Acting Deputy Director, Pasadena Public Health Department
Kris Markarian, Deputy Director of Public Works/City Engineer Timothy Park, Budget Administrator
Flora Karmiryan, Principal Administrative Analyst
Joaquin Siques, Deputy Director of Transportation
Armin Kheirmand, Associate Engineer
Stella Clingmon, Program Coordinator
Gloria Acevedo, Recording Secretary
AP
PROVAL OF MINUTES: It was moved by Councilmember Hampton and seconded by Chair Gordo, to approve the minutes of the April 24, 2023 (special meetings), May 8, 2023 (special meeting), May 22, 2023 (special meeting), as submitted. (Motion Unanimously carried) (Absent: Vice Mayor Williams) NE
W BUSINESS AMENDMENTS TO THE FIRE DEPARTMENT FISCAL YEAR 2024

ADOPTED OPERATING BUDGET AND AUTHORIZATION TO ENTER
INTO CONTRACT WITH WESTERN EXTRICATION SPECIALISTS INC.

Chair Gordo introduced the item and Matthew Hawkesworth, Director of Finance, provided an overview of the agenda item.

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02 7/31/2023 Finance Committee
It was moved by Councilmember Hampton seconded by Chair Gordo, to approve staff’s recommendation and forward the item to the City Council for consideration. (Motion Unanimously carried) (Absent: Vice Mayor Williams) AMENDMENTS TO THE FISCAL YEAR 2024 GENERAL FEE SCHEDULE Chair Gordo introduced the item and Matthew Hawkesworth, Director of Finance, provided an overview of the agenda item.

AUTHORIZE THE CITY MANAGER TO AMEND AN AGREEMENT WITH

THE COUNTY OF LOS ANGELES TO RECOGNIZE AND APPROPRIATE
$636,070 IN STATE OF CALIFORNIA GRANT FUNDS TO THE FISCAL YEAR 2024 PUBLIC HEALTH DEPARTMENT OPERATING BUDGET AND INCREASE THE PERSONNEL ALLOCATION BY 7.0 FULL -TIME
EQUIVALENT ("FTE") FOR THE BLACK INFANT HEALTH ("BIH")

PROGRAM
Chair Gordo introduced the item and Matthew Hawkesworth, Director of Finance, provided a quick outline and Dr. Matthew Feaster, Acting Deputy Director, Pasadena Public Health Department provided a PowerPoint presentation and responded to questions.

Councilmember Hampton showed support for the program and suggested for staff to target expecting moms and make sure they are aware of these services. Councilmember Hampton also volunteered to distribute informational programs to his district members as an additional outreach effort.

Chair Gordo asked for clarification that given the large catchment area, services being provided to Pasadena residents would not get diluted rather offer improvements. Dr. Feaster confirmed that the program will enhance the large population of new parents that identify as black or African Am erican in Pasadena.

ACCEPTANCE OF SUSTAI NABLE COMMUNITIES PROGRAM GRANT

FOR ACTIVATE ALLEN AVENUE QUICK BUILD PROJECT IN THE
AMOUNT OF $164,181 AND AMENDMENT TO THE FISCAL YEAR 2024

CAPITAL IMPROVEMENT PROGRAM BUDGET
M
atthew Hawkesworth, Director of Finance, introduced Joaquin Siques, Deputy Director of Transportation, who introduced Armin Kheirmand,

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03 7/31/2023 Finance Committee
Associate Engineer, who provided a PowerPoint presentation and responded to questions.

Councilmember Hampton requested clarification on the scope of what the grant was going to fund. Mr. Kheirmand responded that the stretch between Colorado Boulevard and Villa Street will receive improvements such as restriping, signage, and planters to improve accessibility for pedestrians and bicyclist wishing to access the Metro A Line. Councilmember Hampton supports the beau tification of Pasadena streets and suggests promoting ridership on the A Line should be left to Metro.

Chair Gordo suggested for the Transportation Department to meet with Metro to discuss concerns raised by residents related to safety and cleanliness at Metro stations. A full report should be presented to the City Council allowing for public comment.

DISC GOLF COURSE IMPROVEMENTS PROJECT FOR AN AMOUNT
NOT-TO-EXCEED $96,900 AND AMENDMENT TO THE FISCAL YEAR
2024 CAPITAL IMPROVEMENT PROGRAM BUDGET
Chair Gordo introduced the item and Tony Olmos, Director of Public Works, provided an outline of the agenda item and responded to questions.

Chair Gordo was amazed by the activity at the site.

Councilmember Hampton asked if this was the largest disc golf course. Mr.

Olmos responded that at 24 holes; it is, typically disc golf courses have 18 holes. The modification to fewer holes will alleviate some of the conflict points of a larger course. Councilmember Hampton also asked for confirmation that staff had reached out to the golf community for input. Mr. Olmos responded that staff worked with the golf community, including the Hahamongn a Watershed Park Advisory Committee to seek approval.

MONITORING REPORT
Chair Gordo introduced the item and Tony Olmos, Director of Public Works, highlighted four projects and responded to questions.

Councilmember Hampton inquired if the department is looking at increases to their budget to address graffiti abatement and bulky item pick-ups. Mr. Olmos

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04 7/31/2023 Finance Committee
stated that he will provide City Manager, Miguel M árquez, an assessment regarding resources related to the increase in graffiti abatement and will provide a follow up to the City Council as necessary.

Chair Gordo thanked staff for the rapid response to graffiti that surfaced over the past weekend and for the progress on the Washington Park house and the Robinson Park pool.

Following a brief discussion, on the order of the Chair and consensus of the Committee, the item was received and filed.

ADJ
OURNMENT On the order of the Chair, the special meeting of the Finance Committee was adjourned at 3:42 p.m.

A
TTEST: ______________________
Mayor Victor Gordo, Chair
Finance Committee
____
________________
Gloria Acevedo
Recording Secretary

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NEW BUSINESS
ITEM 1

1. AMENDMENT OF THE HOUSING DEPARTMENT’S
FISCAL YEAR 2024 OPERATING BUDGET IN THE
AMOUNT OF $1,997,000; APPROVAL OF KEY TERMS OF

AFFORDABLE HOUSING LOAN AGREEMENT WITH

HOME OWNERSHIP FOR PERSONAL EMPOWERMENT,
INC. TO REHABILITATE AND FINANCIALLY
RESTRUCTURE RENTAL HOUSING PROJECTS AT 940
NORTH SUMMIT AVENUE AND 760 WORCESTER

STREET FOR PERSONS WITH INTELLECTUAL AND/OR

DEVELOPMENTAL DISABILITIES

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NEW BUSINESS
ITEM 2

2. AMENDMENT OF THE HOUSING DEPARTMENT’S FISCAL YEAR
2 024 OPERATING BUDGET IN THE AMOUNT OF $936,000;

APPROVAL OF KEY TERMS OF HOUSING ACQUISITION LOAN

AGREEMENT WITH HERITAGE HOUSING PARTNERS TO PROVIDE
P

URCHASE FINANCING IN AN AMOUNT NOT TO EXCEED
$936,000 TO IMPLEMENT PURCHASE OPTIONS ON AFFORDABLE
HOM
EOWNERSHIP UNITS AT 106 E. SUMMIT GROVE
BO
ULEVARD, #102 AND 602 N. FAIR OAKS AVENUE, #120

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NEW BUSINESS
ITEM 3

3. Q UARTERLY INVESTMENT REPORT - QUARTE R
E
NDING JUNE 30, 2023

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City of Pasadena
Quarterly
Investment Report
Quarter Ending 6/30/2023
Prepared by the Department of Finance
Treasury Division
Attachment A

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I
. Pooled Investment Portfolio

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CITY OF PASADENA
Treasurer's Pooled Investment Portfolio
Vicken Erganian
City Treasurer
June 2023

PORTFOLIO COMPLIANCE
The Treasurer's investment portfolio is in compliance with the California Government Code Section 53601 and the City's Investment Policy approved by the City Council on June 20, 2022. The holdings in the investment pool are in compliance with the current investment policy statement. Further information on compliance issues can be obtained by calling the City of Pasadena Treasurer's Office. A complete copy of the monthly investment report on the investment portfolio including a detailed listing of each investment, is available by calling the Treasurer's office at (626)744-4422.

PORTFOLIO STRUCTURE AS OF 6/30/2023

TYPE MARKET VALUE PERCENT
Money Market - Collateralized 1,152 0.00%
Certificates of Deposit 1,250,000 0.19%
Municipal Bonds 28,279,699 4.25%
Corporate Bonds 73,237,724 11.02%
Federal Agencies 384,547,836 57.84%
US Treasury Securities 47,296,875 7.11%
Supernationals 28,399,673 4.27%
Commercial Paper 19,766,115 2.97%
Money Market-CAMP 70,557,631 10.61%
US Treasury Securities Disc 9,860,783 1.48%
LAIF 1,264,015 0.19%
Cash in Bank 385,888 0.06%
TOTALS: 664,847,390 100.00%
Accrued Interest Receivable 2,152,179
GRAND TOTAL: 666,999,570
PORTFOLIO LIQUIDITY AS OF 6/30/2023
Percent of
Aging Interval Par Value Portfolio
0-30 Days 94,208,687 13.31%
31 days - 1 Year 179,820,000 25.41%
1 - 2 Years 172,567,778 24.38%
2 - 3 Years 211,300,000 29.85%
3 - 4 Years 39,873,000 5.63%
4 - 5 Years 10,000,000 1.41%
Over 5 Years - 0.00%
TOTAL: 707,769,464 100.00%
Jun-23 May-23 Apr-23 Mar-23 Feb-23 Jan-23
Month-End Market Value 666,999,570 672,272,990 663,426,916 654,280,737 640,262,216 653,538,059 Modified Duration 1.46 1.44 1.54 1.63 1.66 1.71
Weighted Average Maturity 1.56 1.55 1.64 1.73 1.78 1.82 Current Book Yield to Maturity 2.107% 2.054% 1.922% 1.865% 1.802% 1.788% Effective Yield - Year to Date 1.600% 1.550% 1.510% 1.470% 1.430% 1.370% Interest Earned 1,065,968 990,842 919,839 887,034 814,056 850,681 Fiscal Year To Date Interest Earned 9,574,303 8,508,335 7,517,493 6,597,654 5,710,620 4,896,563 Fair Value Change Gain/(Loss) (446,116) (1,950,287) 553,847 7,300,895 (4,637,958) 4,567,284 Fiscal Year To Date change in fair value (4,491,943) (4,045,827) (2,095,540) (2,649,387) (9,950,281) (5,312,323) Total Fiscal YTD Earnings 5,082,360 4,462,508 5,421,953 3,948,267 (4,239,662) (415,760)

PORTFOLIO STATISTICS
MMF-Collateral

0.00%
Certificates of
Deposit

0.19%
Muni

4.25%
Corp Bond

11.02%
Fed Agency

57.84%
US Treasury

7.11%
Supranationals

4.27%
Commercial
Paper

2.97%
Money Market-
CAMP

10.61%
US Treasury
Securities Disc

1.48%
LAIF

0.19%
Cash
in
Bank

0.06%
1

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3.150Local Agency Investment Fund864 1,021,631.74 1,021,631.74 3.1501,021,631.74SYS864 1

3.150LAIF-COVID Relief Funds Acct14053 242,383.60 242,383.60 3.150242,383.60SYS14053 1 1,264,015.341,264,015.341,264,015.341,264,015.34Subtotal and Average 3.150 1 Money Market Fund-CAMP

5.343California Asset Management Pr13824 70,557,631.16 70,557,631.16 5.27070,557,631.16SYS13824 1 70,557,631.1670,557,631.1670,557,631.1682,549,774.79Subtotal and Average 5.343 1 Collateralized Money Market

4.800EAST WEST BANK13067 1,151.87 1,151.87 4.8001,151.87SYS13067 1 1,151.871,151.871,151.871,151.87Subtotal and Average 4.800 1 Municipal Bonds

1.477STATE OF CALIFORNIA13885 1,000,000.00 1,000,000.00 07/01/20231.47711/24/2020 1,000,000.00 A-13017HAK2 0

1.650La Canada Unified School Distr13806 500,000.00 500,000.00 08/01/20231.65004/28/2020 498,645.00 Aa1502516QX8 31

1.078Oak Grove CA Sch Dist13821 500,000.00 500,000.00 08/01/20231.07806/25/2020 498,230.00 Aa3671205Y55 31

0.692Oxnard School District13841 500,000.00 500,000.00 08/01/20230.69209/03/2020 498,145.00 AA692020T34 31

2.025Buena Park Community RDA13738 1,240,000.00 1,240,000.00 09/01/20232.03311/13/2019 1,232,956.80 AA-119144AV5 62

2.085Escondido Lease Revenue Bonds13744 830,000.00 830,000.00 09/01/20232.08511/26/2019 825,609.30 AA-29634EEE8 62

0.475Califfornia State Univ Revenur13830 2,000,000.00 2,000,000.00 11/01/20230.47509/17/2020 1,967,360.00 Aa213077DMJ8 123

2.125Beverly Hills PFA13710 1,000,000.00 1,000,000.00 06/01/20242.12508/08/2019 970,670.00 AA+088006JM4 336

0.730Beverly Hills PFA13869 750,000.00 750,000.00 06/01/20240.73010/15/2020 719,205.00 AA+088006JY8 336

0.587City of Orange Taxable Pension13916 1,500,000.00 1,500,000.00 06/01/20240.58703/15/2021 1,429,110.00 AA684100AC4 336

2.070South Pasadena Unified School13748 325,000.00 334,786.10 08/01/20245.00012/12/2019 323,596.00 Aa2839278JX7 397

0.580SAN RAMON VLY CA UNIF SCH DIST13871 1,500,000.00 1,500,000.00 08/01/20240.58010/20/2020 1,422,735.00 Aa1799408Z77 397

0.575West Coast Contra Unified Scho13941 1,000,000.00 1,000,000.00 08/01/20240.57506/17/2021 948,440.00 AA9523474U3 397

0.685Califfornia State Univ Revenur13829 2,000,000.00 2,000,000.00 11/01/20240.68509/17/2020 1,878,600.00 Aa213077DMK5 489

0.982City of Arcadia13882 675,000.00 675,000.00 12/01/20240.98211/12/2020 632,758.50 Aaa039063AD4 519

0.650SANTA BARBARA CNTY CA SOLID WA13894 300,000.00 312,650.72 12/01/20243.67012/18/2020 292,554.00 A180136PDB6 519

0.943Huntington Beach CA Public Fin13861 300,000.00 300,000.00 05/01/20250.94308/12/2020 276,705.00 AA446216HJ5 670

0.883UNIVERSITY OF CA REVENUE BONDS13827 1,000,000.00 1,000,000.00 05/15/20250.88307/16/2020 925,790.00 Aa291412HGE7 684

0.610UNIVERSITY OF CA REVENUE BONDS13893 5,000,000.00 5,025,153.05 05/15/20250.88312/16/2020 4,628,950.00 Aa291412HGE7 684

0.952California St Health Facs Fing13883 1,500,000.00 1,500,000.00 06/01/20250.95211/04/2020 1,376,940.00 Aa313032UXM5 701

0.824Redondo Beach Unified School13840 500,000.00 500,000.00 08/01/20250.82408/06/2020 456,710.00 Aa2757710TZ1 762

2.311South Pasadena Unified School13747 675,000.00 710,255.36 08/01/20255.00012/12/2019 671,699.25 Aa2839278JY5 762

0.740SAN RAMON VLY CA UNIF SCH DIST13872 1,500,000.00 1,500,000.00 08/01/20250.74010/20/2020 1,373,190.00 Aa1799408Z85 762

0.938West Coast Contra Unified Scho13940 3,000,000.00 3,000,000.00 08/01/20250.93806/17/2021 2,749,650.00 AA9523474V1 762

1.181City of Arcadia13881 750,000.00 750,000.00 12/01/20251.18211/12/2020 681,450.00 Aaa039063AE2 884 Portfolio PASD
APData Updated: SET_POOL: 07/20/2023 16:29
Run Date: 07/20/2023 - 16:29 PM (PRF_PM2) 7.3.0
2

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YTM
365Par Value Book Value
Maturity
Date
Stated
RateMarket Value
June 30, 2023
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
Monthly for Pool
Days to
MaturityMoody'sCUSIP Investment #
Purchase
Date
29,927,845.2328,279,698.8529,845,000.0029,929,791.49Subtotal and Average 0.963 485 Certificates of Deposit - Bank

0.650BMW BANK NORTH AMERICA13949 250,000.00 250,000.00 09/17/20240.65009/17/2021 250,000.0005580AD68 444

0.650SYNCHRONY BANK13952 250,000.00 250,000.00 09/17/20240.65009/17/2021 250,000.0087164YB60 444

0.650GOLDMAN SACHS BANK USA CD13951 250,000.00 250,000.00 09/23/20240.65009/22/2021 250,000.0038149MZY2 450

0.700SALLIE MAE BANK/SALT LKE CD13956 250,000.00 250,000.00 09/23/20240.70009/22/2021 250,000.00795451AW3 450

0.650UBS BANK USA13950 250,000.00 250,000.00 09/23/20240.65009/22/2021 250,000.0090348JT42 450 1,250,000.001,250,000.001,250,000.001,250,000.00Subtotal and Average 0.660 448 Federal Agency Issues - Coupon

3.250Federal Home Loan Bank13995 5,000,000.00 5,000,000.00 07/27/20233.25007/27/2022 4,991,704.65 Aaa3130ASQ44 26

4.625Federal Home Loan Bank14000 5,000,000.00 5,000,000.00 10/27/20234.62510/27/2022 4,984,616.75 Aaa3130ATNK9 118

0.320FED HOME LOAN MORTAGE CORP13879 10,000,000.00 10,000,000.00 11/02/20230.32011/02/2020 9,829,938.60 Aaa3134GW6E1 124

0.320FED HOME LOAN MORTAGE CORP13880 5,000,000.00 5,000,000.00 11/02/20230.32011/02/2020 4,914,969.30 Aaa3134GW6E1 124

0.320FED HOME LOAN MORTAGE CORP13887 10,000,000.00 10,000,000.00 11/24/20230.32011/24/2020 9,803,417.40 Aaa3134GXCA0 146

0.250Federal Home Loan Bank13896 5,000,000.00 5,000,000.00 12/28/20230.25012/28/2020 4,871,423.45 Aaa3130AKL79 180

0.250Federal Home Loan Bank13897 5,000,000.00 5,000,000.00 12/28/20230.25012/28/2020 4,871,423.45 Aaa3130AKL79 180

0.800Federal Home Loan Bank13972 7,500,000.00 7,500,000.00 12/28/20230.80012/28/2021 7,326,975.90 Aaa3130AQ6F5 180

5.126FED NATIONAL MORTGAGE ASSN14011 5,000,000.00 5,000,000.00 02/09/20245.12502/13/2023 4,980,711.05 Aaa3135GAEU1 223

5.250Federal Home Loan Bank14012 4,000,000.00 4,000,000.00 03/01/20245.25003/01/2023 3,987,001.96 Aaa3130AUZ23 244

5.200FED NATIONAL MORTGAGE ASSN14015 5,000,000.00 5,000,000.00 03/28/20245.20003/30/2023 4,977,599.25 Aaa3135GAFP1 271

5.504Federal Home Loan Bank14014 5,000,000.00 5,000,000.00 04/01/20245.50003/08/2023 4,994,353.05 Aaa3130AVA36 275

0.500Federal Home Loan Bank13927 10,000,000.00 10,000,000.00 04/29/20240.50004/29/2021 9,575,625.80 Aaa3130ALXQ2 303

5.414Federal Home Loan Bank14017 5,000,000.00 5,000,000.00 06/07/20245.41005/10/2023 4,978,025.85 Aaa3130AVYY2 342

5.500Federal Home Loan Bank14020 5,000,000.00 5,000,000.00 06/28/20245.50006/28/2023 4,996,550.00 Aaa3130AWEX4 363

3.100FED HOME LOAN MORTAGE CORP13994 5,000,000.00 5,000,000.00 06/28/20243.10006/28/2022 4,869,570.35 Aaa3134GXYE8 363

0.625Federal Home Loan Bank13944 5,000,000.00 5,000,000.00 10/15/20240.62507/15/2021 4,699,225.10 Aaa3130AN4L1 472

0.500Federal Home Loan Bank13948 5,000,000.00 5,000,000.00 10/30/20240.50009/30/2021 4,683,356.65 Aaa3130ANYT1 487

0.900Federal Home Loan Bank13966 5,000,000.00 5,000,000.00 11/08/20240.90011/08/2021 4,704,680.55 Aaa3130APPQ2 496

1.100Federal Home Loan Bank13968 5,000,000.00 5,000,000.00 11/15/20241.10011/15/2021 4,696,218.05 Aaa3130APRA5 503

0.550Federal Home Loan Bank13937 10,000,000.00 10,000,000.00 11/26/20240.55005/26/2021 9,345,599.90 Aaa3130AMK92 514

0.650Federal Home Loan Bank13932 5,000,000.00 5,000,000.00 12/09/20240.65006/09/2021 4,673,038.45 Aaa3130AMJX1 527

1.150Federal Home Loan Bank13971 5,000,000.00 5,000,000.00 12/10/20241.15012/10/2021 4,706,791.20 Aaa3130AQ3F8 528

1.125Federal Home Loan Bank13973 5,000,000.00 5,000,000.00 01/21/20251.12501/21/2022 4,689,384.10 Aaa3130AQFG3 570

1.250Federal Home Loan Bank13975 5,000,000.00 5,000,000.00 01/28/20251.25001/28/2022 4,695,949.05 Aaa3130AQJ79 577

1.500Federal Home Loan Bank13977 5,000,000.00 5,000,000.00 02/18/20251.50002/18/2022 4,705,090.70 Aaa3130AQPF4 598

0.625Federal Home Loan Bank13933 5,000,000.00 5,000,000.00 02/27/20250.62505/27/2021 4,633,450.15 Aaa3130AMMG4 607

1.810Federal Home Loan Bank13979 4,700,000.00 4,700,000.00 02/27/20251.81002/28/2022 4,442,381.49 Aaa3130AQX99 607

0.650Federal Home Loan Bank13959 5,000,000.00 5,000,000.00 03/28/20250.65009/28/2021 4,626,568.00 Aaa3130AP5S0 636 Portfolio PASD
APData Updated: SET_POOL: 07/20/2023 16:29
Run Date: 07/20/2023 - 16:29
3

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3.000Federal Home Loan Bank13982 5,000,000.00 5,000,000.00 04/22/20253.00004/22/2022 4,811,561.05 Aaa3130ARJW2 661

0.750Federal Home Loan Bank13811 5,000,000.00 5,000,000.00 05/19/20250.75005/19/2020 4,613,899.60 Aaa3130AJLA5 688

3.400Federal Home Loan Bank13985 5,000,000.00 5,000,000.00 05/23/20253.40005/23/2022 4,839,877.35 Aaa3130ARZD6 692

0.750FED HOME LOAN MORTAGE CORP13814 5,000,000.00 5,000,000.00 05/28/20250.75005/28/2020 4,609,854.40 Aaa3134GVVX3 697

0.750FED HOME LOAN MORTAGE CORP13816 5,000,000.00 5,000,000.00 05/28/20250.75005/29/2020 4,609,854.40 Aaa3134GVB31 697

0.750FED HOME LOAN MORTAGE CORP13817 5,000,000.00 5,000,000.00 05/28/20250.75006/01/2020 4,609,854.40 Aaa3134GVB31 697

0.780Federal Farm Credit Bank13820 5,000,000.00 5,000,000.00 06/16/20250.78006/16/2020 4,604,401.25 Aaa3133ELK37 716

0.764Federal Home Loan Bank13822 3,017,777.77 3,017,540.98 06/16/20250.76006/19/2020 2,777,902.46 Aaa3130AJPT0 716

5.600FED HOME LOAN MORTAGE CORP14022 5,000,000.00 5,000,000.00 06/26/20255.60006/30/2023 4,993,308.60 Aaa3134GYUQ3 726

4.100Federal Home Loan Bank13996 5,000,000.00 5,000,000.00 08/08/20254.10008/08/2022 4,885,600.20 Aaa3130ASRJ0 769

0.650FED NATIONAL MORTGAGE ASSN13828 5,000,000.00 5,000,000.00 08/14/20250.65008/14/2020 4,546,941.85 Aaa3136G4C43 775

0.614Federal Farm Credit Bank13863 5,000,000.00 4,999,566.39 08/25/20250.61009/10/2020 4,560,161.10 Aaa3133EL4W1 786

0.530Federal Farm Credit Bank13864 20,000,000.00 20,000,000.00 09/29/20250.53009/29/2020 18,152,949.40 Aaa3133EMBH4 821

4.300Federal Home Loan Bank13997 5,000,000.00 5,000,000.00 09/30/20254.30009/30/2022 4,897,884.35 Aaa3130ATBN6 822

0.600FED HOME LOAN MORTAGE CORP13870 10,000,000.00 10,000,000.00 09/30/20250.60009/30/2020 9,090,332.70 Aaa3134GWVN3 822

0.600FED HOME LOAN MORTAGE CORP13873 10,000,000.00 10,000,000.00 10/15/20250.60010/15/2020 9,080,853.60 Aaa3134GWYS9 837

0.625FED HOME LOAN MORTAGE CORP13877 10,000,000.00 10,000,000.00 10/27/20250.62510/27/2020 9,076,500.50 Aaa3134GW3X2 849

0.600FED HOME LOAN MORTAGE CORP13878 5,000,000.00 5,000,000.00 10/27/20250.60010/27/2020 4,535,547.25 Aaa3134GW5P7 849

0.600FED HOME LOAN MORTAGE CORP13874 10,000,000.00 10,000,000.00 10/28/20250.60010/28/2020 9,035,549.70 Aaa3134GW3F1 850

0.600FED HOME LOAN MORTAGE CORP13876 5,000,000.00 5,000,000.00 10/28/20250.60010/28/2020 4,535,129.60 Aaa3134GW3Z7 850

0.600Federal Farm Credit Bank13888 10,000,000.00 10,000,000.00 11/24/20250.60011/24/2020 9,063,494.30 Aaa3133EMHF2 877

0.690FED HOME LOAN MORTAGE CORP13886 5,000,000.00 5,000,000.00 11/25/20250.62511/25/2020 4,519,658.70 Aaa3134GXCS1 878

0.719FED HOME LOAN MORTAGE CORP13891 5,000,000.00 5,000,000.00 11/26/20250.65011/30/2020 4,506,645.20 Aaa3134GXFA7 879

5.000Federal Home Loan Bank14007 5,000,000.00 5,000,000.00 12/29/20255.00012/29/2022 4,940,086.05 Aaa3130AUBX1 912

5.350FED HOME LOAN MORTAGE CORP14002 5,000,000.00 5,000,000.00 12/29/20255.35012/29/2022 4,959,129.25 Aaa3134GY7A4 912

0.550Federal Home Loan Bank13900 5,000,000.00 5,000,000.00 02/12/20260.55002/12/2021 4,479,707.15 Aaa3130AKVR4 957

0.625Federal Home Loan Bank13905 5,000,000.00 5,000,000.00 02/17/20260.62502/17/2021 4,454,246.70 Aaa3130AL3S1 962

0.750Federal Home Loan Bank13907 5,000,000.00 5,000,000.00 02/24/20260.75002/24/2021 4,466,532.55 Aaa3130ALCV4 969

0.630Federal Home Loan Bank13906 5,000,000.00 5,000,000.00 02/26/20260.63002/26/2021 4,483,938.10 Aaa3130ALB94 971

0.844Federal Farm Credit Bank13911 10,000,000.00 9,998,932.22 03/02/20260.84003/02/2021 9,015,132.90 Aaa3133EMSK9 975

0.800Federal Home Loan Bank13908 5,000,000.00 5,000,000.00 03/04/20260.80003/04/2021 4,457,865.45 Aaa3130ALEY6 977

0.800Federal Home Loan Bank13909 5,000,000.00 5,000,000.00 03/10/20260.80003/10/2021 4,455,606.40 Aaa3130ALFS8 983

5.750FED HOME LOAN MORTAGE CORP14013 5,000,000.00 5,000,000.00 03/20/20265.75003/20/2023 4,971,645.60 Aaa3134GYLK6 993

1.000Federal Home Loan Bank13910 4,875,000.00 4,875,000.00 03/23/20261.00003/23/2021 4,398,183.32 Aaa3130ALGJ7 996

5.000Federal Farm Credit Bank13999 5,000,000.00 5,000,000.00 09/23/20265.00009/23/2022 4,928,622.95 Aaa3133ENN97 1,180

0.940Federal Farm Credit Bank13960 5,000,000.00 5,000,000.00 09/28/20260.94009/28/2021 4,451,453.80 Aaa3133EM6E7 1,185

1.000Federal Home Loan Bank13953 5,000,000.00 5,000,000.00 09/30/20261.00009/30/2021 4,459,668.50 Aaa3130ANYN4 1,187

1.250Federal Home Loan Bank13964 5,000,000.00 5,000,000.00 10/28/20261.25010/28/2021 4,496,420.15 Aaa3130APDQ5 1,215 Portfolio PASD
APData Updated: SET_POOL: 07/20/2023 16:29
Run Date: 07/20/2023 - 16:29
4

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5.000Federal Home Loan Bank13998 5,000,000.00 5,000,000.00 09/14/20275.00009/28/2022 4,917,537.95 Aaa3130AT3P0 1,536

5.184FED HOME LOAN MORTAGE CORP14021 5,000,000.00 5,000,000.00 06/28/20286.00006/30/2023 4,998,656.55 Aaa3134GYUE0 1,824 409,091,039.59384,547,835.53409,092,777.77396,257,677.15Subtotal and Average 1.675 681 Treasury Securities - Coupon

0.761US TREASURY13974 10,000,000.00 9,999,453.71 12/31/20230.75012/31/2021 9,776,562.50 Aaa91282CDR9 183

1.081US TREASURY13978 5,000,000.00 4,994,045.38 01/31/20240.87501/31/2022 4,871,093.75 Aaa91282CDV0 214

0.470US TREASURY13943 10,000,000.00 9,979,101.92 06/15/20240.25006/25/2021 9,521,875.00 Aaa91282CCG4 350

0.515US TREASURY13962 5,000,000.00 4,991,581.62 09/15/20240.37509/24/2021 4,711,523.45 Aaa91282CCX7 442

0.747US TREASURY13965 5,000,000.00 4,992,211.89 10/15/20240.62510/22/2021 4,709,570.30 Aaa91282CDB4 472

0.554US TREASURY13954 10,000,000.00 9,990,726.59 03/31/20250.50009/16/2021 9,248,046.90 Aaa912828ZF0 639

0.924US TREASURY13963 5,000,000.00 4,973,163.72 08/31/20260.75009/24/2021 4,458,203.10 Aaa91282CCW9 1,157 49,920,284.8347,296,875.0050,000,000.0049,917,910.12Subtotal and Average 0.684 463 Corporate Bonds - Coupon

5.001JPMORGAN CHASE FINANCIAL14009 5,000,000.00 5,000,000.00 12/26/20235.00012/22/2022 4,971,367.65 A148133PDD2 178

0.654ROYAL BANK OF CANADA13918 5,000,000.00 4,993,768.14 01/19/20240.42503/11/2021 4,880,830.80 A178015K7L2 202

2.250GOLDMAN SACHS13980 2,500,000.00 2,500,000.00 03/15/20242.25003/15/2022 2,417,570.30 A238150AL86 258

3.125JPMORGAN CHASE FINANCIAL13983 2,000,000.00 2,000,000.00 04/29/20243.12504/29/2022 1,951,714.46 A148133DE55 303

0.800Goldman Sach Corporate Bond13935 5,000,000.00 5,000,000.00 06/03/20240.80006/03/2021 4,769,056.60 A238150AG41 338

0.672ROYAL BANK OF CANADA13947 5,000,000.00 4,998,832.41 07/29/20240.65007/29/2021 4,737,156.50 A178016EZU4 394

0.900NEW YORK LIFE GL13967 5,000,000.00 5,000,000.00 10/29/20240.90010/29/2021 4,696,011.35 Aaa64952WEJ8 486

4.050CITIGROUP GLOBAL MARKETS13990 2,500,000.00 2,500,000.00 05/27/20254.05005/27/2022 2,402,685.08 A217330FVU2 696

4.050CITIGROUP GLOBAL MARKETS13991 2,500,000.00 2,500,000.00 05/27/20254.05005/27/2022 2,402,685.08 A217330FVU2 696

0.825JP MORGAN13898 5,000,000.00 5,000,000.00 12/22/20250.82512/22/2020 4,359,497.30 A148128GY53 905

1.357BANK OF AMERICA CORP13923 5,000,000.00 4,903,037.05 01/26/20260.60003/25/2021 4,441,283.80 A106048WK82 940

0.752BANK OF NEW YORK MELLON13901 5,000,000.00 4,999,741.93 01/28/20260.75002/02/2021 4,449,775.85 A106406RAQ0 942

0.718APPLE INC13902 5,000,000.00 4,997,761.61 02/08/20260.70002/08/2021 4,506,071.80 Aaa037833EB2 953

1.250BANK OF AMERICA CORP13934 5,000,000.00 5,000,000.00 05/28/20261.25005/28/2021 4,374,684.15 A106048WM31 1,062

1.263BANK OF AMERICA CORP13945 3,623,000.00 3,616,419.78 06/25/20261.20007/21/2021 3,134,234.00 A106048WM64 1,090

1.155ROYAL BANK OF CANADA13958 6,250,000.00 6,249,013.97 07/14/20261.15009/22/2021 5,528,387.81 A178016EZT7 1,109

1.365Credit Suisse New York13961 5,000,000.00 4,982,779.35 08/07/20261.25009/24/2021 4,302,935.40 A322550L2G5 1,133

5.650CITIGROUP14004 5,000,000.00 5,000,000.00 12/16/20275.65012/16/2022 4,911,775.90 Aa117330YDB3 1,629 79,241,354.2473,237,723.8379,373,000.0080,488,969.92Subtotal and Average 1.811 774 Commercial Paper Disc. -Amortizing

5.432MUFG BANK LTD NY14003 5,000,000.00 4,955,657.18 09/01/20235.12012/07/2022 4,953,265.00 P-162479MW17 62

5.411NATIXIS NY BRANCH14005 5,000,000.00 4,950,868.44 09/08/20235.10212/19/2022 4,949,490.00 P-163873KW86 69 Portfolio PASD
APData Updated: SET_POOL: 07/20/2023 16:29
Run Date: 07/20/2023 - 16:29
5

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5.334MUFG BANK LTD NY14006 5,000,000.00 4,946,662.04 09/15/20235.03012/20/2022 4,942,420.00 P-162479MWF6 76

5.218CREDIT AGRICOLE CIB NY (CP)14010 5,000,000.00 4,928,320.75 10/13/20234.93501/20/2023 4,920,940.00 P-122533UXD0 104 19,781,508.4119,766,115.0020,000,000.0022,903,513.44Subtotal and Average 5.349 78 Treasury Discounts -Amortizing

5.120US TREASURY14016 5,000,000.00 4,973,892.75 08/08/20234.90004/11/2023 4,974,362.50 Aaa912797GF8 38

5.449US TREASURY14019 5,000,000.00 4,886,127.61 12/07/20235.16506/12/2023 4,886,420.30 Aaa912797FT9 159 9,860,020.369,860,782.8010,000,000.0011,550,022.11Subtotal and Average 5.283 98 Supranationals

1.070Inter-American Devel Bank13976 5,000,000.00 5,041,559.00 01/16/20242.62501/21/2022 4,925,876.05 Aaa4581X0DF2 199

0.500Inter-American Devel Bank13955 10,000,000.00 10,000,000.00 09/23/20240.50009/23/2021 9,420,241.10 Aaa4581X0DZ8 450

0.610INTL FINANCE CORP13957 5,000,000.00 4,999,174.88 02/28/20250.60009/28/2021 4,627,330.60 Aaa45950VQJ8 608

0.647INTL BK RECON & DEVELOP13903 5,000,000.00 5,000,000.00 02/10/20260.65002/10/2021 4,465,992.15 Aaa459058JS3 955

5.750INTL BK RECON & DEVELOP14018 5,000,000.00 5,000,000.00 06/15/20265.75006/15/2023 4,960,232.85 Aaa45906M4C2 1,080 30,040,733.8828,399,672.7530,000,000.0027,710,470.79Subtotal and Average 1.512 623 703,823,297.02 701,383,576.14 2.107 570664,461,502.13 700,935,584.91Total and Average Portfolio PASD
APData Updated: SET_POOL: 07/20/2023 16:29
Run Date: 07/20/2023 - 16:29
6

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COMPLIANCE REPORT
Pooled Investment Portfolio
As of 6/30/23
Diversification Credit Quality Maturity
Portfolio State Gov't Portfolio Portfolio Credit Quality Portfolio % of total Code limits compliance Credit Quality per Gov Code compliance Maturity Collateralized Money Market 0.00% 100% In compliance 102% Collateral 102% Collateral In compliance In compliance Certificates of Deposit 0.19% 30% In compliance n/a n/a In compliance In compliance Municipal Bonds 4.25% 100% In compliance Aaa/Aa3/Aa2/Aa1/A2/AA+/AA-/AAA/AA A or better In compliance In compliance US Treasury Securities 7.11% 100% In compliance Aaa AA+/Aaa In compliance In compliance Corporate Bonds 11.02% 30% In compliance* Aa1/A1/A2/A3 A or better In compliance In compliance Federal Agency Issues 57.84% 100% In compliance Aaa AA+/Aaa In compliance In compliance Supranationals 4.27% 30% In compliance Aaa AA or better In compliance In compliance Commercial Paper 2.97% 100% In compliance P-1 (Short-term) P-1 (Short-term) In compliance In compliance Money Market-CAMP 10.61% 100% In compliance n/a n/a In compliance In compliance US Treasury Securities Disc 1.48% 100% In compliance Aaa AA+/Aaa In compliance In compliance LAIF 0.19% 100% In compliance n/a n/a In compliance In compliance Cash 0.06% 100% In compliance Collateralized Collateralized In compliance In compliance 100.00%
Portfolio Value 666,999,570
7

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INVESTMENTS IN ISSUERS REPRESENTING OVER 5%

OF THE POOL PORTFOLIO
June 30, 2023
Market Value % of Total
FHLB 197,715,952 29.64%
FHLMC 117,550,416 17.62%
FFCB 54,776,216 8.21%
Total Fed Agencies 370,042,584 55.48%
OTHER PORTFOLIO INVESTMENTS 296,956,986 44.52%
Total Investments 666,999,570 * 100.00%
note: * Includes Cash in Bank and Accrued Interest Receivable 8

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Pooled Portfolio - Total Return Performance
ICE BofA Pooled
1-3 Index Portfolio
2003 Annual 2.717 2.931
2004 Annual 1.226 2.090
2005 Annual 1.746 2.073
2006 Annual 4.195 4.474
2007 Annual 6.706 5.736
2008 Annual 4.649 3.474
2009 Annual 3.784 3.398
2010 Annual 2.322 1.806
2011 Annual 1.540 1.490
2012 Annual 1.467 1.788
2013 Annual 0.696 0.417
2014 Annual 0.777 1.321
2015 1st quarter 0.594 0.628
2nd quarter 0.143 0.141
3rd quarter 0.284 0.431
4th quarter -0.350 -0.113

0.671 1.087
2016 1st quarter 0.982 0.713
2nd quarter 0.660 0.350
3rd quarter 0.027 0.170
4th quarter -0.385 -0.520

1.284 0.713
2017 1st quarter 0.393 0.440
2nd quarter 0.303 0.419
3rd quarter 0.342 0.380
4th quarter -0.182 -0.059

0.856 1.180
2018 1st quarter -0.185 -0.097
2nd quarter 0.291 0.269
3rd quarter 0.354 0.431
4th quarter 1.166 1.038

1.626 1.641
2019 1st quarter 1.219 0.963
2nd quarter 1.480 1.054
3rd quarter 0.700 0.593
4th quarter 0.606 0.590

4.005 3.200
2020 1st quarter 1.590 0.495
2nd quarter 1.215 0.962
3rd quarter 0.274 0.287
4th quarter 0.227 0.236

3.306 1.980
2021 1st quarter -0.028 -0.467
2nd quarter 0.063 0.437
3rd quarter 0.088 0.085
4th quarter -0.533 -0.638
-0.410 - 0.583
2022 1st quarter -2.580 -2.910
2nd quarter -0.625 -0.842
3rd quarter -1.503 -1.713
4th quarter 0.890 0.821
2023 1st quarter 1.480 1.599
2nd quarter -0.341 0.241
Yield Fiscal YTD
Pooled Portfolio YTM 2.11%
State Treasurer's LAIF yield 3.15%
2 Year Average US Treasury yield 4.27%
9

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CITY POOLED PORTFOLIO
Portfolio Management
Distribution of Investments By Type - Historic
(By Market Values)
In %
Fiscal Year Total
June June June June June June June June June June 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Investment Type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 2023 2023 Money Market 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Money Market Collateralized 12.91 16.74 9.14 7.25 3.97 3.54 1.59 11.73 6.76 0.00 0.00 0.00 0.00 0.00 Municipal Bonds 12.62 13.00 4.97 4.01 5.80 5.78 4.33 4.72 7.70 5.96 5.37 5.15 4.87 4.25 Corporate Bonds - Coupon 25.94 22.67 21.65 16.36 17.12 15.47 20.78 22.50 16.62 13.97 14.06 14.18 12.31 11.02 Agency CMOs/Mortgage Backed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Federal Agency Issues - Coupon 36.55 43.39 43.45 49.70 55.86 60.37 54.14 34.00 47.35 48.79 53.04 54.42 56.95 57.84 Repurchase Agreements 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 L.A.I.F. 9.04 1.47 13.09 14.38 9.07 6.47 7.29 11.66 16.47 4.00 0.20 0.20 0.19 0.19 Cash 2.72 2.50 3.76 0.68 0.44 0.43 0.45 0.34 0.53 0.31 0.49 0.23 0.37 0.06 Treasury Securities 0.00 0.00 3.93 3.37 2.99 3.26 3.71 2.37 3.66 7.46 7.57 7.43 7.26 7.11 Treasury Securities Disc 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.54 1.59 1.56 2.28 1.48 Supranationals 0.00 0.00 0.00 4.25 3.76 4.49 5.89 8.24 0.80 3.73 3.76 3.68 3.61 4.27 Bank Notes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Federal Agency Discount 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Commerical Paper - Disc (Amortizing) 0.00 0.00 0.00 0.00 0.99 0.00 0.82 0.00 0.00 1.55 2.42 3.86 3.75 2.97 Asset Backed Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Amortized Zero Cpn Bonds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.77 0.00 0.00 0.00 0.00 Certificates of Deposit 0.22 0.23 0.00 0.00 0.00 0.19 1.00 0.00 0.00 0.20 0.20 0.20 0.19 0.19 Money Market-CAMP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.89 0.12 11.72 11.30 9.10 8.21 10.61 Muni Variable Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.54 0.00 0.00 0.00 0.00 0.00 0.00 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 10

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II. Capital Endowment Portfolio

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CITY OF PASADENA
Capital Endowment Portfolio
Vicken Erganian
City Treasurer
June 2023

PORTFOLIO STRUCTURE AS OF 6/30/2023

TYPE MARKET VALUE PERCENT
Money Market - CAMP 85,446 4.56%
Federal Agencies 1,787,241 95.44%
TOTALS: 1,872,687 100.00%
Accrued Interest Receivable 2,281
GRAND TOTAL: 1,874,968
PORTFOLIO LIQUIDITY AS OF 6/30/2023
Percent of
Aging Interval Par Value Portfolio
0-30 Days 85,446 4.30%
31 days - 1 Year - 0.00%
1 - 2 Years - 0.00%
2 - 3 Years 1,900,000 95.70%
3 - 4 Years - 0.00%
4 - 5 Years - 0.00%
Over 5 Years - 0.00%
TOTAL: 1,985,446 100.00% -

PORTFOLIO STATISTICS
Jun-23 May-23 Apr-23 Mar-23 Feb-23 Jan-23
Month-End Mkt Value 1,874,968 1,871,287 1,877,557 1,879,618 1,849,852 1,863,120 Modified Duration 1.29 1.37 1.45 1.53 1.61 1.69
Weighted Average Maturity 1.35 1.42 1.51 1.59 1.67 1.75 Current Book Yield to Maturity 1.187% 1.183% 1.155% 1.151% 1.144% 1.137% Effective Yield - Year to Date 1.110% 1.100% 1.100% 1.090% 1.090% 1.070% Interest Earned 1,964 1,924 1,891 1,889 1,884 1,870 Fiscal Year To Date Interest Earned 21,938 19,974 18,049 16,158 14,269 12,385 Fair Value Change Gain/(Loss) 1,717 (8,195) (3,952) 27,890 (15,152) 14,759 Fiscal Year To Date change in fair value (32,574) (34,292) (26,097) (22,145) (50,035) (34,882) Total Fiscal YTD earnings (10,637) (14,318) (8,048) (5,987) (35,766) (22,497) MMF -
CAMP,

4.56%
Federal
Agencies,

95.44%
11

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YTM
365Par Value Book Value
Maturity
Date
Stated
RateMarket Value
June 30, 2023
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management

CAPITAL ENDOWMENT
Days to
MaturityMoody'sCUSIP Investment #
Purchase
Date
Money Market Fund-CAMP

5.343California Asset Management Pr14111 85,446.20 85,446.20 5.27085,446.20SYS14111 1 85,446.2085,446.2085,446.2085,446.20Subtotal and Average 5.343 1 Collateralized Money Market

4.800EAST WEST BANK13057 0.00 0.00 4.80007/01/2022 0.00SYS13057 1

0.000.000.000.00Subtotal and Average 0.000 0
Federal Agency Issues - Coupon

1.000Federal Home Loan Bank13970 1,900,000.00 1,900,000.00 11/25/20241.00011/30/2021 1,787,240.78 Aaa3130APVG7 513 1,900,000.001,787,240.781,900,000.001,900,000.00Subtotal and Average 1.000 513 1,985,446.20 1,985,446.20 1.187 4911,872,686.98 1,985,446.20Total and Average Portfolio PASD
APData Updated: FUNDSNAP: 07/03/2023 16:39
Run Date: 07/03/2023 - 16:40 PM (PRF_PM2) 7.3.0
12

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COMPLIANCE REPORT
Capital Endowment Portfolio
As of 6/30/23
Diversification Credit Quality Maturity
Portfolio State Gov't Portfolio Portfolio Credit Quality Portfolio % of total Code limits compliance Credit Quality per Gov Code compliance Maturity Money Market-CAMP 4.56% 100% In compliance n/a n/a In compliance In compliance Federal Agency Issues 95.44% 100% In compliance** Aaa AA+/Aaa In compliance In compliance 100.00%
Portfolio Value 1,874,968
**Compliance is measured based on the City's total investments which include the Pooled portfolio as well as the Power Reserve Fund. 13

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INVESTMENTS IN ISSUERS REPRESENTING OVER 5%

OF THE CAPITAL ENDOWMENT PORTFOLIO
June 30, 2023
Market Value % of Total
FHLB 1,787,241 95.32%
Total 1,787,241 95.32%
OTHER PORTFOLIO INVESTMENTS 87,727 4.68%
Total Investments 1,874,968 * 100.00%
note: * Includes Accrued Interest Receivable
14

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CAPITAL ENDOWMENT
Portfolio Management
Distribution of Investments By Type - Historic
(By Market Values)
In % Fiscal Year Total
June June June June June June June June 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Investment Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 2023 2023 Money Market - Collateralized 100.00 100.00 1.80 0.75 0.03 1.10 3.10 3.38 0.00 0.00 0.00 0.00 Federal Agency Issues - Coupon 0.00 0.00 0.00 0.00 0.00 0.00 0.00 96.62 96.49 95.98 96.00 95.44 Corporate Bonds - Coupon 0.00 0.00 0.00 99.25 99.97 98.90 96.90 0.00 0.00 0.00 0.00 0.00 Municipal Bonds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 L.A.I.F. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Certificate of Deposit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Federal Agency Discount 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Treasury Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Agency CMOs/Mortgage Backed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Commerical Paper - Disc (Amortizing) 0.00 0.00 98.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Asset Backed Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mutual Funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Money Market - CAMP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.51 4.02 4.00 4.56 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 15

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III. Power Reserve Portfolio

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CITY OF PASADENA
Power Reserve Portfolio
Vicken Erganian
City Treasurer
June 2023

PORTFOLIO STRUCTURE AS OF 6/30/2023

TYPE MARKET VALUE PERCENT
Municipal Bonds 1,834,640 4.56%
Federal Agencies 29,044,462 72.13%
L.A.I.F. 43,150 0.11%
Money Market-CAMP 9,344,669 23.21%
TOTALS: 40,266,921 100.00%
Accrued Interest Receivable 223,270
GRAND TOTAL: 40,490,191
PORTFOLIO LIQUIDITY AS OF 6/30/2023
Percent of
Aging Interval Par Value Portfolio
0 - 30 days 9,387,819 19.14%
31 days - 1 Year - 0.00%
1 - 2 Years - 0.00%
2 - 3 Years 5,000,000 10.19%
3 - 4 Years - 0.00%
4 - 5 Years 2,000,000 4.08%
Over 5 Years 32,666,667 66.59%
TOTAL: 49,054,486 100.00%

PORTFOLIO STATISTICS
Jun-23 May-23 Apr-23 Mar-23 Feb-23 Jan-23
Month-End Market Value 40,490,191 40,504,198 40,736,424 40,576,082 39,582,973 40,439,710 Modified Duration 5.98 6.05 6.16 6.18 6.18 6.37
Weighted Average Maturity 8.06 8.13 8.22 8.31 8.39 8.48 Current Book Yield to Maturity 2.381% 2.365% 2.321% 2.297% 2.262% 2.218% Effective Yield - Year to Date 2.090% 2.060% 2.030% 2.000% 1.970% 1.910% Interest Earned 97,037 96,022 92,835 92,335 91,177 89,362 Fiscal Year To Date Interest Earned 1,010,612 913,574 817,552 724,717 632,382 541,205 Fair Value Change Gain/(Loss) (111,065) (328,248) 67,460 900,808 (947,914) 797,795 Fiscal Year To Date change in fair value (2,382,127) (2,271,061) (1,942,813) (2,010,273) (2,911,081) (1,963,167) Total Fiscal YTD Earnings (1,371,515) (1,357,487) (1,125,261) (1,285,556) (2,278,699) (1,421,962) Money Market-
CAMP

1.03%
Fed Agency

72.13%
LAIF

0.11%
Municipal
Bonds

4.54%
16

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YTM
365Par Value Book Value
Maturity
Date
Stated
RateMarket Value
June 30, 2023
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management

POWER RESERVE FUND
Days to
MaturityMoody'sCUSIP Investment #
Purchase
Date
LAIF

3.150Local Agency Investment Fund6184 43,150.18 43,150.18 3.15043,150.18SYS6184 1 43,150.1843,150.1843,150.1843,150.18Subtotal and Average 3.150 1 Money Market Fund-CAMP

5.343California Asset Management Pr14063 9,344,669.01 9,344,669.01 5.2709,344,669.01SYS14063 1 9,344,669.019,344,669.019,344,669.019,344,668.47Subtotal and Average 5.343 1 Collateralized Money Market

4.800EAST WEST BANK13066 0.00 0.00 4.8000.00SYS13066 1

0.000.000.000.00Subtotal and Average 0.000 0
Municipal Bonds

2.560LA County Redevelopment TABs13553 2,000,000.00 1,989,719.13 09/01/20262.37508/25/2016 1,834,640.00 Aa254465AGS5 1,158 1,989,719.131,834,640.002,000,000.001,989,588.37Subtotal and Average 2.560 1,158 Federal Agency Issues - Coupon

1.000Federal Home Loan Bank13969 5,000,000.00 5,000,000.00 11/25/20241.00011/30/2021 4,703,265.20 Aaa3130APV69 513

1.230Federal Farm Credit Bank13946 6,000,000.00 6,000,000.00 08/02/20281.23008/02/2021 5,099,390.04 Aaa3133EMX80 1,859

1.230Federal Farm Credit Bank13890 5,000,000.00 5,000,000.00 11/25/20301.23011/25/2020 3,979,415.50 Aaa3133EMHN5 2,704

1.850Federal Home Loan Bank13788 1,666,667.00 1,666,667.00 04/08/20321.85004/08/2020 1,325,600.35 Aaa3130AJEA3 3,204

2.000Federal Home Loan Bank13904 10,000,000.00 10,000,000.00 02/25/20362.00002/25/2021 7,303,001.50 Aaa3130AL3X0 4,622

2.000Federal Farm Credit Bank13875 10,000,000.00 10,000,000.00 10/15/20402.00010/15/2020 6,633,789.50 Aaa3133EMCV2 6,316 37,666,667.0029,044,462.0937,666,667.0037,666,667.00Subtotal and Average 1.636 3,769 49,044,074.02 49,054,486.19 2.381 2,94240,266,921.28 49,044,205.32Total and Average Portfolio PASD
APData Updated: FUNDSNAP: 07/20/2023 16:39
Run Date: 07/20/2023 - 16:39 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.6.1
17

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COMPLIANCE REPORT
Power Reserve Portfolio
As of 6/30/23
Diversification Credit Quality Maturity
Portfolio State Gov't Portfolio Portfolio Credit Quality Portfolio % of total Code limits compliance Credit Quality per Gov Code compliance Maturity Municipal Bonds 4.56% 100% In compliance Aa2 A or better In compliance In compliance Federal Agency Issues 72.13% 100% In compliance Aaa/AA AA+/Aaa In compliance In compliance Money Market-CAMP 23.21% 100% In compliance n/a n/a In compliance In compliance LAIF 0.11% 100% In compliance n/a n/a In compliance In compliance 100.00%
Portfolio Value 40,490,191
18

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INVESTMENTS IN ISSUERS REPRESENTING OVER 5%

OF THE POWER RESERVE PORTFOLIO
June 30, 2023
Market Value % of Total
FHLB 13,331,867 32.93%
FFCB 15,712,595 38.81%
Total Fed Agencies 29,044,462 71.73%
OTHER PORTFOLIO INVESTMENTS 11,445,729 28.27%
Total Investments 40,490,191 * 100.00%
note: * Includes Accrued Interest Receivable
19

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Power Reserve Portfolio - Total Return Performance
ICE BofA Power
3-5 Index Reserve
2003 Annual 4.214 3.940
2004 Annual 2.740 3.430
2005 Annual 0.980 2.615
2006 Annual 4.184 4.540
2007 Annual 7.656 6.960
2008 Annual 4.610 3.683
2009 Annual 3.784 3.714
2010 Annual 1.113 1.206
2011 Annual 1.555 2.547
2012 Annual 1.467 3.027
2013 Annual -0.143 -0.184
2014 Annual 2.446 2.688
2015 1st quarter 1.550 0.910
2nd quarter -0.178 0.039
3rd quarter 0.995 0.884
4th
quarter -0.793 -0.469

1.574 1.364
2016 1st quarter 2.420 1.197
2nd quarter 1.390 0.560
3rd quarter 0.080 0.190
4th quarter -1.840 -2.340

2.050 -0.393
2017 1st quarter 0.773 0.830
2nd quarter 0.873 0.803
3rd quarter 0.567 0.515
4th quarter -0.398 0.071

1.815 2.219
2018 1st quarter -0.890 -0.702
2nd quarter 0.013 0.284
3rd quarter 0.188 0.048
4th quarter 1.812 1.987

1.123 1.617
2019 1st quarter 2.245 1.538
2nd quarter 2.530 1.704
3rd quarter 1.196 0.877
4th quarter 0.430 0.460

6.401 4.579
**2020 1st quarter 1.594 0.950
2nd quarter 1.215 0.625
3rd quarter 0.274 0.249
4th quarter 0.227 0.249

3.31 2.073
2021 1st quarter -1.178 -2.549
2nd quarter 0.634 3.715
3rd quarter -0.037 -0.554
4th quarter -0.896 -0.015
-1.477 0.597
2022 1st quarter -5.627 -6.886
2nd quarter -2.810 -4.182
3rd quarter -4.590 -5.972
4th quarter 1.68 0.454
2023 1st quarter 2.21 2.517
2nd quarter -0.918 -0.212
Yeld Fiscal YTD
Power Reserve YTM 2.38%
St
ate Treasurer's LAIF yield 3.15%
2 Year
Average Treasury yield 4.27%
20

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POWER RESERVE FUND
Portfolio Management
Distribution of Investments By Type - Historic
(By Market Values)
In % Fiscal Year Total
June June June June June June June June 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Investment Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023 2023 2023 Money Market - Collateralized 11.53 7.43 0.02 4.34 2.58 32.06 0.08 0.00 0.00 0.00 0.00 0.00 Municipal Bonds 10.83 7.24 7.00 6.92 6.02 3.43 3.93 4.50 4.65 4.66 4.61 4.56 Federal Agency Issues - Coupon 66.34 77.86 79.82 82.96 85.12 51.22 57.67 75.33 73.43 72.87 72.84 72.13 L.A.I.F. 0.24 0.24 0.24 0.24 0.26 0.00 32.77 18.69 0.05 0.11 0.11 0.11 Corporate Bonds - Coupon 11.06 7.23 12.92 5.54 6.02 13.29 5.56 0.00 0.00 0.00 0.00 0.00 Certificate of Deposit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Federal Agency Discount 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Treasury Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Agency CMOs/Mortgage Backed 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Commerical Paper - Disc (Amortizing) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Asset Backed Securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Mutual Funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Money Market - CAMP 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.48 21.87 22.36 22.45 23.21 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 21

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IV. Miscellaneous Portfolios

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Fund Coupon Yield Maturity Face Value Cost Per Book Market Value City of Pasadena-Housing Succesor Agency
Money Mkt CAMP 5.270% 5.270% 7/1/2023 $2,347,717.67 $2,347,717.67 $2,347,717.67 LAIF 3.150% 3.150% 7/1/2023 $1.48 $1.48 $1.48
Weighted Average Maturity = 1 day $2,347,719.15 $2,347,719.15 $2,347,719.15 2002 Electric Revenue Reserve Fund
Money Mkt CAMP 5.270% 5.270% 7/1/2023 $93,014.26 $93,014.26 $93,014.26 FFCB 3133EMBH4 0.530% 0.530% 9/29/2025 $4,000,000.00 $4,000,000.00 $3,630,589.88 Weighted Average Maturity = 2.23 $4,093,014.26 $4,093,014.26 $3,723,604.14 Annandale Assessment District
Municipal Bonds-Annandale Assessment 6.000% 6.000% 9/2/2040 $917,035.00 $917,035.00 $917,035.00 Weighted Average Maturity = 17.43
Miscellaneous Funds
June 30, 2023
22

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Fund Coupon Yield Maturity Face Value Cost Per Book Market Value Miscellaneous Funds
June 30, 2023
2012A Electric Parity Reserve Fund
Money Mkt CAMP 5.270% 5.270% 7/1/2023 $13,854.76 $13,854.76 $13,854.76 FFCB 3133EMBH4 0.530% 0.530% 9/29/2025 $690,000.00 $690,000.00 $626,276.75 Weighted Average Maturity = 2.24 $703,854.76 $703,854.76 $640,131.51 2013A Electric Parity Reserve Fund
Money Mkt CAMP 5.270% 5.270% 7/1/2023 $277,645.67 $277,645.67 $277,645.67 FFCB 3133ELC28 0.730% 0.730% 5/27/2025 $8,000,000.00 $8,000,000.00 $7,330,706.96 Weighted Average Maturity = 1.87 $8,277,645.67 $8,277,645.67 $7,608,352.63 23

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Fund Coupon Yield Maturity Face Value Cost Per Book Market Value Miscellaneous Funds
June 30, 2023
2016A Electric Revenue Refunding Reserve
Money Mkt CAMP 5.270% 5.270% 7/1/2023 $46,206.25 $46,206.25 $46,206.25 FFCB 3133EMBH4 0.530% 0.530% 9/29/2025 $2,680,000.00 $2,680,000.00 $2,432,495.22 Weighted Average Maturity = 2.24 $2,726,206.25 $2,726,206.25 $2,478,701.47 2020A Water Refund Revenue Bonds Project
LAIF 3.150% 3.150% 7/1/2023 $4,593.34 $4,593.34 $4,593.34 Weighted Average Maturity = 1 day $4,593.34 $4,593.34 $4,593.34 2021A Water Refund Revenue Bonds Project
LAIF 3.150% 3.150% 7/1/2023 $5,061,800.74 $5,061,800.74 $5,061,800.74 Money Mkt CAMP 5.270% 5.270% 7/1/2023 $1,201.17 $1,201.17 $1,201.17 Weighted Average Maturity = 1 day $5,063,001.91 $5,063,001.91 $5,063,001.91 GRAND TOTAL: $24,133,070.34 $24,133,070.34 $22,783,139.15 24

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V. Investments Held by Trustees

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Schedule of Funds Held by Trustees

CITY OF PASADENA
For Period Ending 6/30/2023 Market Yield 5.02%
Maturity 07/01/23
$ Amount
Trustee/Officer Issue Name Shares/Par Cost Market Maturity % Maturity Date Investment Value Value Date Yld
BNY 2021A Water Revenue Refunding Bonds
Amy Green COI-2021A Account #209092
(213)630-6204 Cash - - - 07/01/ 23 0.00%
Lena Chan Debt Service-2021A Account #209093
(213) 630-6253 Cash - - - 07/01/ 23 0.00%
Reserve-2021A Account #209094
DREFUS GOVT CM INST 289 Cusip: X9USDDGCM 821,076.17 821,076.17 821,076. 17 07/01/ 23 5.00% Cash - - - 07/01/ 23 0.00%
Total 821,076.17 821,076.17 821,076. 17
BNY 2020A Water Revenue Refunding Bonds
Amy Green COI-2020 Account #746583
(213)630-6204 Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS - - - 07/01/ 23 5.02% Lena Chan DEBT SERVICE-2020 Account #746585
(213) 630-6253 Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS - - - 07/01/ 23 5.02% Total - - -
2020AB POB Bonds
BNY POB COI-2020B Account #220413
Amy Green BlackRock Treasury Turst Dollars 63 Cusip: X9USDBTRD - - - 07/01/ 23 0.02% (213)630-6204 POB Bond Fund-2020B Account #220414
Lena Chan Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 1,007.16 1,007. 16 1,007. 16 07/01/ 23 5.02% (213) 630-6253 POB COI-2020A Account #765976
Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS - - - 07/01/ 23 5.02% POB Bond Fund-2020A Account #765990
Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 1,647.41 1,647.41 1,647. 41 07/01/ 23 5.02% Total 2,654.57 2,654.57 2,654. 57
2019A Electric Revenue Bonds
BNY Electric COI-2019A Account #106207
Amy Green Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 37,582.59 37,582. 59 37,582. 59 07/01/ 23 5.02% (213)630-6204 Electric Bond Fund-2019A Account #113813 - Lena Chan Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 2.48 2.48 2.48 07/01/ 23 5.02% (213) 630-6253 - - - 07/01/ 23 5.02%
Total 37,585.07 37,585.07 37,585. 07
25

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Schedule of Funds Held by Trustees

CITY OF PASADENA
For Period Ending 6/30/2023 Market Yield 5.02%
Maturity 07/01/23
$ Amount
Trustee/Officer Issue Name Shares/Par Cost Market Maturity % Maturity Date Investment Value Value Date Yld
US Bank 2018AB Rose Bowl Pasadena PFA Lease Revenue Bonds Ilse Vlach Interest Fund- Series 2018A Account #248882000 (213) 615-6051 Fidelity Govt Protfolio CI Cusp:316175108 209.98 209. 98 209. 98 07/ 01/23 4.98% Adriana Marshall Costs of Issuance- Series 2018A Account #248882002 (213) 615-6033 Fidelity Govt Protfolio CI Cusp:316175108 - - - 07/ 01/23 4.98% Interest Fund- Series 2018B Account #248882100
Fidelity Govt Protfolio CI Cusp:316175108 25.97 25.97 25. 97 07/ 01/23 4.98% Principal Fund- Series 2018B Account #248882101
Fidelity Govt Protfolio CI Cusp:316175108 430.49 430.49 430. 49 07/ 01/23 4.98% Costs of Issuance- Series 2018B Account #248882102
Fidelity Govt Obl Fd Cl D 316175108 - - - 07/ 01/23 4.98% Total 666.44 666.44 666. 44
2017A Water Revenue Bonds
BNY Debt Service-2017A Account #948165
Amy Green Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS - - - 07/ 01/23 5.02% (213)630-6204 Reserve Fund-2017A Account #948269
Lena Chan Federal Home Loan Banks Cusip: 3130AL3S1 1,050,000.00 1, 050,000.00 935, 392.50 02/ 17/26 0.63% (213) 630-6253 DREYFUS CUSIP:X9USSGCM 34,204.60 34, 204.60 34, 204.60 07/ 01/23 5.00% Total 1,084,204.60 1,084,204.60 969, 597.10
US Bank 2016A Rose Bowl Pasadena PFA Lease Revenue Bonds Ilse Vlach Interest Fund- Series 2016A Account #264433000 (213) 615-6051 Fidelity Govt Protfolio CI Cusp:316175108 325.20 325. 20 325. 20 07/ 01/23 4.98% Principal Fund- Series 2016A Account #264433001
Fidelity Govt Protfolio CI Cusp:316175108 1,469.34 1,469.34 1, 469.34 07/ 01/23 4.98% Adriana Marshall
Insurance & Condemnation Fund- Series 2016A Account
#264433002
(213) 615-6033 Fidelity Govt Obl Fd Cl D 316175108 0.19 0. 19 0. 19 07/ 01/23 4.98% Cost of Issuance- Series 2016A Account #264433003
First American Govt Obl Fd Cl D 31846V401 - - - 07/ 01/23 4.98% Total 1,794.73 1,794.73 1, 794.73
BNY Pasadena 2015A COPS Bond
Amy Green COPS Base Rental-2015A Account #336964
(213)630-6204 Cash Balance - - - 07/ 01/23 0.00%
Lena Chan Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 715.20 715. 20 715. 20 07/ 01/23 5.02% (213) 630-6253 Total 715.20 715. 20 715. 20
26

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Schedule of Funds Held by Trustees

CITY OF PASADENA
For Period Ending 6/30/2023 Market Yield 5.02%
Maturity 07/01/23
$ Amount
Trustee/Officer Issue Name Shares/Par Cost Market Maturity % Maturity Date Investment Value Value Date Yld
BNY Pasadena Tax Pension 2015AB Bond
Amy Green Bond Fund-2015A POB Account #479226
(213)630-6204 Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 589.57 589.57 589.57 07/01/ 23 5.02% Lena Chan Cash Balance - - - 07/01/ 23 0.00%
(213) 630-6253 Bond Fund-2015A POB Account #479231
Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 1,304.50 1,304.50 1,304. 50 07/01/ 23 5.02% Cash Balance - - - 07/01/ 23 0.00%
Total 1,894.07 1,894.07 1,894. 07
BNY Pasadena Water Revenue 2010AB
Amy Green 2010 A Parity Reserve Account #286245
(213)630-6204 DREYFUS CUSIP:X9USSGCM 20,523.98 20,523. 98 20,523. 98 07/01/ 23 5.00% Lena Chan Federal Home Loan Bank CUSIP:3130AL3S1 1,350,000.00 1,350, 000.00 1,202, 647.50 02/17/ 26 0.63% (213) 630-6253 Cash - - - 07/01/ 23 0.00%
2010 B Debt Service Account #286247
Cash - - - 07/01/ 23 4.19%
2010 B Parity Reserve Account #286248
DREYFUS CUSIP:X9USSGCM 6,860.50 6,860.50 6,860. 50 07/01/ 23 5.00% Federal Home Loan Bank CUSIP:3130AL3S1 300,000.00 300,000.00 267,255. 00 02/17/ 26 0.63% Cash - - - 07/01/ 23 0.00%
2010 A Debt Service Fund Account #286295
Cash - - - 07/01/ 23 0.00%
Total 1,677,384.48 1,677,384.48 1,497, 286.98
US Bank 2010 Rose Bowl Pasadena PFA Lease Revenue Bonds Ilse Vlach Interest Fund (S631591)
(213) 615-6051 Fidelity Instl Mm Fds Government I CUSIP:316175108 5,656.94 5,656. 94 5,656. 94 07/01/ 23 4.98% Adriana Marshall Cash - - - 07/01/ 23 0.00%
(213) 615-6071 Principal Fund (S631592)
Fidelity Instl Mm Fds Government I CUSIP:316175108 3.28 3.28 3.28 07/01/ 23 4.98% Bond Reserve Fund (S631593)
Federal Home Loan Bank Funds CUSIP: 3130ALBD5 15,500,000.00 15,500,000.00 10,382, 210.00 02/25/ 41 2.15% Fidelity Instl Mm Fds Government I CUSIP:316175108 242,025.39 242,025.39 242,025. 39 07/01/ 23 4.98% Cash - - - 07/01/ 23 0.00%
Total 15,747,685.61 15,747,685.61 10,629, 895.61
27

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Schedule of Funds Held by Trustees

CITY OF PASADENA
For Period Ending 6/30/2023 Market Yield 5.02%
Maturity 07/01/23
$ Amount
Trustee/Officer Issue Name Shares/Par Cost Market Maturity % Maturity Date Investment Value Value Date Yld
Computershare Corporate Trust PPFA (Paseo Colorado Parking Facilities) 2008 Tracy Mason Bond Fund Account #23200100
(213) 253-7536 Allspring Government Money Market Service 103,795.65 103,795. 65 103,795. 65 07/01/ 23 4.66% Mataka Mpose Cash - - - 07/01/ 23 0.00%
Reserve Fund Account #23200101
[email protected] FHLB Cusip: 3130APVC6 2,000,000.00 2,000, 000.00 1,802, 820.00 12/01/ 26 1.38% [email protected] Well Fargo Advantage Government Money Market Service - - - 07/01/ 23 0.01% Cost of Issuance Fund Account #23200103
Well Fargo Advantage Government Money Market Service - - - 07/01/ 23 0.00% Total 2,103,795.65 2,103,795.65 1,906, 615.65
BNY Pasadena 2006,2008,2015 COP Reserves
Amy Green Reserve Account #281635
(213)630-6204 Federal Home Loan Banks CUSIP:3130AKKQ8 4,950,000.00 4,950, 000.00 3,933, 022.50 12/23/ 30 1.25% Lena Chan Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 94,465.94 94,465. 94 94,465. 94 07/01/ 23 5.02% (213) 630-6253 Cash - - - 07/01/ 23 0.00%
Total 5,044,465.94 5,044,465.94 4,027, 488.44
Pasadena 2008AB COPS, 15A Parity Reserve
BNY Reserve Fund #281207
Amy Green Federal Home Loan Banks CUSIP:3130AKKQ8 1,325,000.00 1,325, 000.00 1,052, 778.75 12/23/ 30 1.25% (213)630-6204 Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 25,286.30 25,286. 30 25,286. 30 07/01/ 23 5.02% Lena Chan Cash Balance - - -
(213) 630-6253 Total 1,350,286.30 1,350, 286.30 1,078, 065.05 BNY Pasadena 2008A COPS
Amy Green Base Rental Fund #281732
(213)630-6204 Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 258,518.70 258,518. 70 258,518. 70 07/01/ 23 5.02% Lena Chan Cash Balance - - - 0.00%
(213) 630-6253 Interest Fund #281733
Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 4.28 4.28 4.28 07/01/ 23 5.02% Letter of Credit #281734
Bank of America CUS: S86494570 1.00 1.00 1.00 03/31/ 25 0.00% Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 0.36 0.36 0.36 07/01/ 23 5.02% Total 258,524.34 258,524.34 258,524. 34
28

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Schedule of Funds Held by Trustees

CITY OF PASADENA
For Period Ending 6/30/2023 Market Yield 5.02%
Maturity 07/01/23
$ Amount
Trustee/Officer Issue Name Shares/Par Cost Market Maturity % Maturity Date Investment Value Value Date Yld
BNY Pasadena Conf Ctr 2006AB
Amy Green Reserve Fund #281722
(213)630-6204 Federal Home Loan Banks CUSIP:3130AJRH4 10,800,000.00 10,800,000. 00 7,092,684. 00 06/29/40 2. 07% Lena Chan Federal Home Loan Banks CUSIP:3130AKKQ8 270,000.00 270,000.00 214, 528.50 12/23/30 1. 25% (213) 630-6253 Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 346,406.67 346,406.67 346, 406.67 07/01/23 5. 02% Total 11,416,406.67 11,416,406.67 7,653,619. 17
BNY Pasadena Water Revenue 2003
Amy Green Parity Reserve Account #281651
(213)630-6204 Federal Home Loan Banks CUSIP: 3130AL3S1 1,000,000.00 1,000,000. 00 890,850.00 02/17/26 0. 63% Lena Chan DREYFUS GOVT CM INST 289 CUSIP: X9USDDGCM 20,802.96 20,802.96 20, 802.96 07/ 01/23 5. 01% (213) 630-6253 Cash - - - 07/01/23 0. 00%
Total 1,020,802.96 1,020,802.96 911,652.96
BNY COPS Parity Reserve Fund(2006A, and 2008ABC COP)
Amy Green Certificate Reserve #281143
(213)630-6204 Federal Home Loan Banks CUSIP: 3130AKKQ8 2,025,000.00 2,025,000. 00 1,608,963. 75 12/23/30 1. 25% Lena Chan Goldman Fincl Sq Govt Instl 465 CUSIP:X9USDGLDS 38,646.59 38,646.59 38, 646.59 07/ 01/23 5. 02% (213) 630-6253 Cash - - - 07/01/23 0. 00%
(In aggegrate with 2006A, Total Funds 2,063,646.59 2,063,646. 59 1,647,610. 34 and 2008ABC COP reserve)
SCPPA SCPPA Investments
Atif Haji Datoo SCPPA Project Stabilization Fund
(213) 367-4668 Fidelity Inst MMKT GOVT 57CUSIP:X9USDFIN - - - 07/01/23 5. 00% Fidelity Inst MMKT GOVT 57CUSIP:X9USDFIN 225,876.37 225,876.37 225,876.37 07/01/23 5. 00% Federal Home Loan Bank CUSIP: 3130ANZG8 1,000,000.00 999,800.00 943,930.00 09/16/24 0. 75% FNMA Discount Notes CUSIP:313588HU2 2,000,000.00 1,996,446.67 1,999,200. 00 07/06/23 4. 92% - - - 0.00%
Total 3,225,876.37 3,222,123.04 3,169,006. 37
TOTAL FUND BALANCE 45,859,465.76$ 45,855,712.43$ 34,615,748.26$ 29

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VI. PARS Section 115 Trust

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City of Pasadena
PARS Section 115 Trust
For the Month Ended June 30, 2023
Pension Account 6746056200
Mayket Value Book Value
Beginning Balance 11,982,715.08 12,562,432.79
Activity
Contributions - -
Disbursements - -
Total - -
Net Investment Income
Dividends 49,278.31 49,278.31
Interest 2,557.01 2,557.01
Other Income - -
Change in Accrued Income 1,004.16 1,004.16
Total Investment Income 52,839.48 52,839.48
Net Change in Unrealized Gain/Loss 157,089.60 -
Realized Gain/Loss 7,931.79 7,931.79
Total Mayket Value Adjustment 165,021.39 7,931.79
Trust Fees (2,607.28) (2,607.28)
PARS Fee (Net of Depository Earnings) (2,347.42) (2,347.42) Unreconciled Difference - -
Total (4,954.70) (4,954.70)
Ending Balance 12,195,621.25 12,618,249.36
1 Year Inception To Date
Investment Return (Inception-To-Date as of 6/30/2023) 4.78% 3.34% BenchMayk Return (PARS Moderately Conservative) 4.86% 3.59% Asset Allocation
Market Value Percentage
Cash and Equivalents 574,018.74 4.71%
Equity 3,507,054.97 28.76%
Fixed Income 8,110,986.28 66.51%
Accrued Income 3,561.26 0.03%
Total 12,195,621.25 100.00%
Account Manager:

Kyra Clarke
3121 Michelson Dr 3rd Fl
Irvine, CA 92612
949-224-7214, [email protected]
Cash and Equivalents

4.71%
Equity

28.76%
Fixed Income

66.51%
Accrued Income

0.03%
30

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City of Pasadena
PARS Section 115 Trust
For the Month Ended June 30, 2023
Post Employments Benefits Trust 6746056201
Mayket Value Book Value
Beginning Balance 2,270,012.44 2,381,220.79
Activity
Contributions - -
Disbursements - -
Total - -
Net Investment Income
Dividends 9,349.96 9,349.96
Interest 453.92 453.92
Other Income - -
Change in Accrued Income 207.01 207.01
Total Investment Income 10,010.89 10,010.89
Net Change in Unrealized Gain/Loss, Fee Receipts & Deliveries Net 29,908.25 - Realized Gain/Loss 1,349.42 1,349.42
Total Mayket Value Adjustment 31,257.67 1,349.42
Trust Fees (493.58) (493.58)
PARS Fee (Net of Depository Earnings) (444.70) (444.70) Unreconciled Difference - -
Total (938.28) (938.28)
Ending Balance 2,310,342.72 2,391,642.82
1 Year Inception To Date
Investment Return (Inception-To-Date as of 6/30/2023) 4.78% 3.39% BenchMayk Return (PARS Moderately Conservative) 4.86% 3.59% Asset Allocation
Marrket Value Percentage
Cash and Equivalents 105,463.92 4.56%
Equity 665,234.73 28.79%
Fixed Income 1,538,982.29 66.61%
Accrued Income 661.78 0.03%
Total 2,310,342.72 100.00%
Account Manager:

Kyra Clarke
3121 Michelson Dr 3rd Fl
Irvine, CA 92612
949-224-7214, [email protected]
Cash and Equivalents

4.56%
Equity

28.79%
Fixed Income

66.61%
Accrued Income

0.03%
31

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INFORMATION ONLY
ITEM 4

4. FINAL REPORT FOR THE AUDIT OF HIGH-RISK INVENTORY

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O
ffice of the City Manager
August 28, 2023
T
O: Finance/Audit Committee
FROM: Ruthe Holden, Internal Audit Manager
Rebecca Takahashi, Senior Internal Auditor
SUBJECT: Final Report for the Audit of High-Risk Inventory Recommendation:

T
his report is for information only.

Background:

T
his audit was part of our FY 22-23 audit plan, based on recommendations and corrective actions taken from prior external audits of City inventory practices. The focus of this audit was to evaluate non-capitalized inventory and assets considered to be 1) a high risk for theft; 2) presents a potential threat to public safety if not routinely monitored; or 3) presents increased liability to the City if the items were to be lost or misused.

The City of Pasadena (City) purchases and maintains various kind of capitalized and non- capitalized inventory required to provide quality services and infrastructure to the public.

In the City, there are formal policies and procedures in place that govern the procurement, maintenance, and reporting of capitalized assets, or assets valued individually at $10,000 or more. In addition, the City also maintains various types of non- capitalized inventory which tend to be lower value, consumable, or have a short-term lifespan. Although these items are generally not subject to routine audit and inspection, good internal controls are needed to ensure inventory is used efficiently and effectively.

Within this category, there are items that can present a higher risk to the City than others if they do not have sufficient internal controls in place to govern their use.

The scope of this audit incorporated the following criteria to determine the specific types of assets to review:
 Small attractive items with re-sale market value.
 Valued under $10,000 and not routinely audited.
 Portable/mobile in nature.
 Could pose a public safety or other hazardous condition if lost, stolen, or misused.
 Subject to special reporting or other requirements that noted deficiencies.

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Final Report for Audit of the High-Risk Inventory
August 28, 2023

Page 2 ends

2 We used these criteria to focus the scope of this audit to the following items:
 Controlled narcotic substances maintained by the Fire Department.  Laptops, desktops, and radios procured and distributed Citywide by DoIT.  Firearms and ammunition maintained by the Police Department.

Audit Findings and Recommendations:

We identified eight issues that need to be addressed by City management, six issues are considered high priority and two are medium priority. There are 18 recommendations associated with these eight findings which when implemented will strengthen the internal controls over the select high risk inventory items. Management agreed with all the recommendations and completed or are in process of implementing corrective actions that address the issues identified in the report. Corrective actions are included in the audit report as Attachment A.

There were two high risk issues identified in the Fire Department’s process of managing controlled substances including updating the narcotics policy to address the implementation of the new system and implementing stronger physical controls over the main supply safe.

There were two high risk issues and one medium risk issue identified in DoIT’s management of computer assets. This includes updating Desktop Replacement policy (DRP) to require DoIT staff to distribute hardware assets instead of Water and Power employees. The other issues identified include improving the inventory process and enhancing the physical security controls in DoIT’s inventory storage area.

There were two high risk issues and one medium risk issue identified in the Police Department’s processes for managing guns, tasers and ammunition. The first issue relates to tracking serialized suppressors in the firearms database. The second issue relates to enhancing the current inventory reconciliation process and implementing adequate segregation of duties controls related to firearms. The third issue identified relates to implementing adequate segregation of duties around managing and maintain Tasers.

Attachments (1):

Attachment A- Audit of High-Risk Inventory

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Audit of High-Risk Inventory
Report A21-COP-01
Office of the City Manager
Internal Audit Division

ATTACHMENT A

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Office of the City Manager
DATE: July 31, 2023
TO: Miguel Márquez, City Manager
Nick Rodriguez, Assistant City Manager
FROM: Ruthe Holden and Rebecca Takahashi, Internal Audit Division SUBJECT: Audit of High-Risk Non-capitalized Inventory and Assets As part of our FY 2022-23 Audit Plan, Internal Audit conducted an audit of high-risk non- capitalized inventory and assets in select City departments. Based on our audit, we identified 8 issues that need to be addressed, of which 6 are considered high priority and 2 are medium priority. There are 18 recommendations associated with these 8 findings which when implemented should strengthen internal controls. Several issues were corrected during the audit and management agreed to implement all recommendations. A description of our finding prioritization is in Appendix A on page 22. Complete management responses to audit recommendations and corrective actions are included as Appendix B beginning on page 23.

We would like to thank the Fire, Information Technology, and Police Departments for their cooperation and timely assistance to conduct this audit. cc: Alex Souto, Deputy City Manager
Chad Augustin, Chief, Fire Department
Eugene Harris, Chief, Police Department
Phillip LeClair, Chief Information Officer, Department of Information Technology

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A21-COP-01 High-Risk Inventory Audit
1 Executive Summary
Audit of High-Risk Inventory

5. What We Found
Based on our audit, there are 6 high risk
issues and 2 medium risk issues that should
be addressed to further strengthen internal
controls.

The high-risk issues identified are:
• Some high-risk inventory items did
not have adequate segregation of
duties in place.
• Inventory reconciliation was not
being performed on a routine basis.
• Inventory databases were not being
routinely used or updated to validate
that the quantities and identifying
information were accurate and
complete.

6. What We Recommend
The 18 recommendations include:
• Strengthening physical security of
stored controlled substances.
• Improving inventory practices of
portable information technology
assets.
• Improving inventory database
maintenance of department issued
firearms and tasers in the police
department.

1. Reason for the Audit
Included in the FY 2022-23 audit plan based
on recommendations and corrective actions
taken from prior audits of City inventory.

2. Background
The City of Pasadena manages both
capitalized and non-capitalized inventory and
assets. We focused on inventory and assets
maintained in select departments that are
considered small and attractive for re-sale,
pose a threat to public safety if not properly
accounted for, or present a significant liability
for the City if lost, stolen, or damaged.

3. Objectives
To determine if high risk inventory and asset
items are adequately safeguarded and
managed in accordance with City policies and
best practices.

4. Scope
Based on our assessment of inventory risk
throughout the City, we focused on the
following items:
• Controlled substances maintained in
the Fire Department.
• Portable laptops, tablets, and radios
managed by the Department of
Information Technology.
• Firearms, Tasers, and Ammunition
maintained by the Police Department.

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A21-COP-01 High-Risk Inventory Audit
2 Reason for the Audit
This audit was included in the FY 2022-23 audit plan to address risks of non-capitalized inventory or assets that poses specific financial, safety, and reputational risks to the City of Pasadena (City) if stolen, lost, or used beyond its useful life. There are prior audit findings and recommendations related to how capital assets and inventory are managed, as well as fraud risks identified with other types of capital and non-capitalized inventory throughout the City.

The focus of this audit was to evaluate non-capitalized inventory and assets considered to be 1) a high risk for theft; 2) presents a potential threat to public safety if not routinely monitored; or 3) presents increased liability to the City if the items were to be lost or misused.

Background
The City of Pasadena purchases and maintains various kind of capitalized and non-capitalized inventory required to provide quality services and infrastructure to the public. Typically, inventory is defined as list of assets, goods, materials, or other resources of value1. In the City of Pasadena, there are formal policies and procedures in place that govern the procurement, maintenance, and reporting of capitalized assets, or assets valued individually at $10,000 or more. Examples of these assets include vehicles, heavy machinery, buildings, or power plant equipment. These types of items are annually tested (on a sample basis) as a part of the scope of work conducted by the City’s external financial auditor when the Annual Comprehensive Financial Report is audited.

In addition, the City also maintains various types of non-capitalized inventory which tend to be lower value (under $5,000), consumable, or have a short-term lifespan, including items such as small tools and equipment, furniture, small electronics, and office supplies. Although these items are generally not subject to routine audit and inspection, good internal controls are needed to ensure supplies are used efficiently and effectively. Within the realm of noncapitalized assets or inventory, there are items that can present a higher risk to the City than others if they do not have sufficient internal controls in place to govern their use. The Government Finance Officers Association (GFOA) recommends entities must ensure adequate internal controls are in place for items that are not capitalized and fall within the following categories:
1) items require special attention to ensure legal compliance, such as grant funded items. 2) Items require special attention to protect public safety and avoid potential liability. 3) Items require special attention to compensate for a heightened risk of theft/walk-away items.2
1 Merriam Webster Dictionary, https://www.merriam-webster.com/dictionary/inventory 2 Government Finance Officers Association Best Practices, “Control Over Items That Are Not Capitalized”, 8 March 2019, https://www.gfoa.org/materials/control-over-items-that-are-not-capitalized

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3 Additionally, best practices for managing and accounting for high-risk inventory in government environments include3:
• Conducting a risk assessment to determine the nature and frequency of inventory audits/reviews.
• Assigning accountability for asset tracking and reporting, such as designating a specific person or group responsible for routine tracking of assets. • Requiring annual certification and inspection of inventory by an accountable and independent party.
• Consolidating asset inventory lists and findings to prevent duplicative and incomplete/inaccurate lists.
• Maintaining segregation of duties or implementing mitigating controls if duties cannot be adequately segregated.

Policies governing small and attractive assets should also be developed to help address risks related to the specific nature of the items and include4:
• Identify responsibility for tracking various asset types, and how often the asset lists should be updated.
• Document necessary controls to address how assets will be safeguarded, tracked, and monitored.
• Implement adequate segregation of duties, or increased monitoring to compensate if duties cannot be segregated.
• Identify the required frequency of inventories, who is responsible, and how they will be documented. There should also be a process for reconciling discrepancies, and a process for reporting stolen or damaged items.
• Document a disposal process that considers the various risks associated with the type of assets, such as assets with sensitive data or needs special handling like firearms. 3 Auditor consolidation of best practices and guidance documentation published by the Government Finance Officers Association (GFOA) and the Government Accountability Office (GAO). 4 Office of the Washington State Auditor Performance Center,” Best Practice for Internal Controls over Small and Attractive Assets”

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4 Objectives
The objective of this audit is to determine if high-risk non-capitalized inventory and asset items are adequately safeguarded and managed in accordance with City policies and best practices.

Scope
Due to the broad nature of our objective, we conducted substantial planning work and inquiry to narrow the scope of audit to areas of high risk within the City. We interviewed several departments with past audit findings related to inventory or asset management to determine if corrective actions were taken to address the findings. We also then incorporated the following criteria to determine the specific types of assets to review:
• Small attractive items with re-sale market value.
• Valued under $10,000 and not routinely audited.
• Portable/mobile in nature.
• Could pose a public safety or other hazardous condition if lost, stolen, or misused. • Subject to special reporting or other requirements that noted deficiencies.

Based on this scoping work, we determined that the following assets met the above criteria:
• Laptops, desktops, and radios procured and distributed citywide by DoIT. • Controlled substances maintained on rescue ambulances in the Fire Department. • Firearms and ammunition maintained by the Police Department.

In conducting our review, we examined documentation, identified physical evidence, and considered relevant testimony related to items procured and/or maintained from FY 2019 to FY 2022. During our Planning phase of this audit, we conducted some initial inquiry into Water and Power, Library and Information Services, and Public Works. We did not include these departments in our testing procedures, as we found they had implemented the necessary recommendations from recent prior audits or reviews and/or their level of risk was at an acceptable level. Public Works Fleet Management will be evaluated in a separate audit which will include a review of their inventory management.

Methodology
• Reviewed relevant laws, ordinances, and citywide policies and procedures. • Analyzed available supporting documentation maintained by departments. • Identified and reviewed relevant best practices related to inventory and asset management.
• Conducted a risk assessment to identify high risk assets withing departments and activities for testing.
• Interviewed City staff responsible for procuring, maintaining, and disposing of high-risk inventory items.

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5 • Conducted walkthroughs of locations where high-risk inventory is received and stored • Reviewed the adequacy of inventory reporting using IDEA analytics to identify historical trends, irregularities, and performance.
• Reviewed purchasing history of inventory items to identify any historical trends, irregularities, or fraud risk indicators using IDEA analytics. • Assessed the adequacy of internal controls governing policies and procedures using the COSO Internal Controls Framework (Appendix C, page 36). • Reviewed key information systems used to track and report high risk inventory. • Evaluated processes to ensure the promotion of appropriate ethics and values as it pertains to high-risk inventory items.
• Assessed judgments and decisions made by management.

This audit was conducted in accordance with the standards promulgated by the Institute of Internal Auditors (Standards). These Standards encompass such matters as independence, objectivity, proficiency of staff, due professional care, the scope and performance of work activities, and the management of the internal auditing function. We believe that our work provides a reasonable basis for the reported issues, conclusions, and recommendations.

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6 Overall Results
Based on our testing of select high risk non-capitalized inventory and asset items in three departments, we found that departments have implemented policies and procedures to account for these high-risk items once they are distributed to the workforce in the field.

However, we identified 8 issues with 18 corresponding recommendations to enhance and strengthen internal controls over these items that had not been considered as part of routine inventory procedures. There are 6 issues categorized as high risk and 2 issues categorized as medium risk.

SECTION 1: CONTROLLED SUBSTANCES MAINTAINED BY THE FIRE DEPARTMENT Controlled Substances Maintained by the Pasadena Fire Department The Pasadena Fire Department must adhere to LA County DHS Policy No. 702-Controlled Drugs Carried on Advanced Life Support (ALS) Units dated April 1, 2020, to ensure accountability for all controlled drugs issued to the department. The department also has its own adopted policy and procedure document 510-Controlled Substances Accountability dated April 27, 2020, which states that “it is the policy of the Pasadena Fire Department to ensure the availability of the proper medications for emergencies and to comply with all applicable local, county, state, and federal regulations governing the supply, use, and accountability of all controlled substances.” These policies require that the department maintain specific levels of two drugs, Fentanyl and Midazolam, on rescue ambulances that are staffed by Paramedics,5. These drugs are subject to regulations mandated by the federal Controlled Substances Act, which places all substances regulated under existing federal law into one of five schedules, with schedule 1 representing drugs at the highest potential for abuse and/or has no currently accepted medicinal use. This placement is based upon the substance’s accepted medical use, potential for abuse, and safety or dependence liability. Fentanyl is part of Schedule 2, which includes drugs that have a high potential for abuse, and Midazolam is part of Schedule 4, which includes drugs or other substances that have a low potential for abuse relative to the drugs or other substances in Schedule 3.

For the department to obtain these controlled substances, the Fire Department’s Medical Director is the only authorized person to prescribe controlled substances and is required to be registered with the Federal Drug Enforcement Agency (DEA) and report all prescription requests from the Fire Department to the DEA. The Fire Department’s Medical Director sends a 5 Fentanyl is a potent synthetic opioid with a high potential for abuse. Fentanyl is carried on rescue ambulances in lieu of morphine sulphate, which the department used to maintain for pain relief. Midazola m, also known as Versed, is used for sedation, anxiety, and amnesia in critical care settings. Midazolam has a lower potential for abuse but could lead to limited physical or psychological dependence. Source: U.S. Department of Justice Drug Enforcement Administration, “Drugs of Abuse”, 2020 Edition.

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7 prescription to a local pharmacy to fulfill, and the order is picked up by authorized EMS personnel in the department, generally an EMS captain. The department carries a minimum of 500 mcg but no more than 1500 mcg of fentanyl and a minimum of 20 mg but not more than 40 mg of midazolam on rescue ambulances at any time and must account for how many doses of each was administered on patients, any amount wasted (removed from the vial but not used for patient care) from a vial6, and if a vial or its original packaging is altered/damaged if not in active use. These inventory counts of all vials must be conducted at the beginning of each shift with two incoming medics present and signing off on the accuracy and completeness of the vials, and at the end of a shift by the outgoing personnel.

Finding 1: The Fire Department addressed internal control weaknesses noted in prior audits but needs to update policy to document new system implementation processes.

Risk Rating: High
In FY 2019, phase 3 of a citywide Fraud Risk Assessment conducted by an external consulting firm identified potential risks related to the Fire Department’s handling of inventory throughout the department. The assessment reported two recommendations to improve the documentation contained on controlled substances paper logs and validating inventory counts.

These recommendations mirrored a similar finding in an external review conducted by the Los Angeles County Emergency Medical Services Agency in 2018 related to controlled substances logs not being accurately maintained in accordance with LA County Policy 702.

In response to both reviews, the Fire Department replaced their manual paper process accounting for use and inventory of controlled substance with a SharePoint Database and mobile app that was developed by the City’s Department of Information Technology in FY 2020.

The SharePoint site allowed personnel to use their smart phones via QR codes to log into the database with their unique user ID and record counts by personnel and required a secondary witness to verify and sign. The database also flagged instances where counts did not reconcile from the prior count and included other limit checks to identify a discrepancy.

While the system was an improvement from the manual paper process, EMS personnel identified some shortcomings of the database and other desired efficiencies they would like to achieve in a new system. For example, if a count of controlled substances was not performed or contained an error, it would require a captain to go in and override the entry or input a missing entry. The system was also not able to automatically generate a notification or other indicator 6 Wasted vials or doses must be disposed of at Huntington Hospital in the presence of Huntington Hospital Emergency Room Nurse and requires a formal report and sign off by the Huntington Hospital Emergency Room and Paramedic witnessing the disposal.

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8 of an entry issue in a timely manner. This process increased risk of missing or altered vial counts, as well as causing a segregation of duties internal control weakness for the captain.

In October 2022, the department implemented a third-party system called PS Trax, which provides a formal inventory management system customized for fire agencies. This system has a dedicated module that allows the department to readily account for the inventory of controlled substances in all rescue ambulances at a given time by the vial and implements electronic signature and dual authentication requirements in handling, accounting for, and disposing of controlled substances7. As implemented in the Fire Department, the system also now immediately flags count discrepancies and has an automated email notification system that communicates any issues with counts to a captain. The system prevents the count from going any further until a captain reviews and rectifies the counts before the medics can close out their part of the process. Each transaction requires the sign offs of the medics and second witness, providing an audit trail of events that occurred and the parties involved.

As noted earlier, the SharePoint site created a significant segregation of duties internal control weakness for the captain overseeing the daily narcotics logs, as they were the only position authorized to receive controlled substances from the pharmacy and replenish the supply safe, while also being able to edit or alter supply amounts maintained on rescue ambulances. When we were conducting our walk-through of their controlled substances process, we noted that there were no routine inventory counts of the main controlled substances supply safe or reserve supplies maintained in other safes. Each safe had a paper log that was to be completed each time new vials were added from the pharmacy by a captain, which meant that weeks could go by without a count of what was added or removed until the next captain needed to access the safe.

With the implementation of the controlled substances module within PS Trax, captains are now required to conduct a daily count of the main supply safe. The reserve supplies that were maintained separately on reserve ambulances have also been removed from the remote locations and added to the main supply safe. Like the daily check-in process on ambulances, the main supply safe must also be countered signed in the presence of a witness in addition to the captain.

An additional feature in the new system is that vials are now tracked as current, about to expire in a few months, and used or wasted vials on each rescue ambulance. During our initial process walkthrough of controlled substances handling, we found a vial noted as wasted being stored in the supply safe, with a form detailing the wasted vial but lacking the required supervisor signature to verify the wasted vial. We also found the department did not have a routine 7 https://pstrax.com/controlled-substance-checks/

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9 practice of separating wasted vials and sending them for routine destruction to their third-party disposal vendor. With the implementation of PS Trax, they can now more readily account for, sign off on, and separate wasted and expired vials in another safe and send them for destruction on a quarterly basis. Although PS Trax was implemented in October 2022, department policies documenting the process for managing controlled substances are dated in 2020.

Recommendation 1: The Fire Chief should update Pasadena Fire Department Policy 502 to accurately reflect the revised controlled substances handling process used with the new PS Trax system.

Auditor Note: During the audit, we recommended that they update all documented policies to reflect the current procedures and address requirements for routine disposal of expired and wasted controlled substance vials. In response, the department implemented the recommendation by updating their controlled substances policy to reflect their current procedures and the addition of procedures to dispose of wasted and expired vials in May 2023.

Finding 2: The main supply safe of controlled substances awaiting deployment still needs stronger physical controls in place to prevent and detect any theft or diversion.

Risk Rating: High
Although the procedure to maintain controlled substances on rescue ambulances has been revised to implement stronger controls to account for vials handled daily, there is still internal control weaknesses in the physical security of the supply safe. The current main supply safe is stored in a key accessed controlled location, with only captains able to access entry into the locked room. Additionally, at present, only three EMS captains can open the secured safe used to store supply of controlled substances before being deployed to rescue ambulances. If the captain on shift is not available, a paramedic must get in contact with another captain/paramedic who lives locally who has been granted access to the safe to retrieve vials on an emergency basis.

Although physical access is limited to four individuals, these same individuals are also granted full administrator access rights in the PS Trax system. This level of access is needed for the controlled substances module to allow the captains to receive new supply, distribute vials from the main supply, and send unusable supply for destruction. While it is best practice to only assign full administrative access to one person in an organization, there is a limitation in the PS Trax software, which grants access by an assigned role in the module and cannot be customized to mitigate segregation of duties risks. With this broad level of access in the system and to the physical storage of the controlled substances supply, there is still a high risk of concealment of a diversion of inventory until another count is performed. Additionally, if an external actor breaks

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10 into the area where controlled substances are stored and can remove the safe, there is no easy way to detect who may have accessed the safe.

We discussed these risks with the Battalion Chief in charge of EMS and he concurred with the risks we identified and researched ways to mitigate these physical security concerns. He has submitted a request for the installation of a security camera to the Department of Information Technology and has also identified a new safe that could be purchased which can assign unique PIN codes to individual users accessing the safe to enhance accountability.

Recommendation 2a: The Fire Chief, in consultation with Public Works and DoIT, should install a security camera near the door of the supply container where the narcotics safe is stored to detect unauthorized or suspicious entry into the area where controlled substances are stored.

Recommendation 2b: The Fire Chief should also research whether there is funding available to purchase safes that assign unique PIN codes to individual users.

SECTION 2: LAPTOPS, TABLETS, AND RADIOS MAINTAINED BY THE DEPARTMENT OF

INFORMATION TECHNOLOGY
COBIT 2019 recommends that information technology assets are managed throughout their life cycle to make sure that their use delivers value at optimal cost and are accounted for and physically protected. Additionally, organizations need to ensure that critical assets are reliable and available8.

The Department of Information Technology’s (DoIT) mission is to provide proven, state-of-the- practice information technologies, in the most strategic, cost effective, and efficient ways possible to support City operations and business activities. DoIT supports customers citywide and is responsible for procuring and maintaining many of the technology assets in use by City employees. The service center section, which is part of the Customer Support division, deploys on a routine basis desktop computers, laptops, and other portable devices like tablets. This section is also responsible for procuring and deploying assets, as well as maintaining the hardware inventory database. The Infrastructure Services division provides radio devices needed for public safety and employees deployed in the field.

DoIT administers the Desktop Replacement Program (also commonly referred to as DRP) that is used to budget for, procure, maintain, and retire computing equipment in accordance with DoIT and City policies. To obtain any kind of computing, software, hardware, or other 8 The globally recognized COBIT Framework is published by ISACA, a professional membership organization committed to the advancement of digital trust by empowering IS/IT professionals to grow their skills and knowledge in audit, cybersecurity, emerging tech and more.

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11 technology related resources9, all City departments must participate in the program and are responsible for notifying DoIT if an asset is lost, stolen, or damaged.

To conduct the annual citywide inventory of computer assets, DoIT utilizes the desktop asset replacement budgetary process to identify departments’ hardware needs and current counts of assets supported by DoIT. Each department’s budget staff can view their asset inventory to track internal service charges and the status of assets assigned to personnel in that department.

DoIT also relies on departments to conduct a physical confirmation of assets assigned by tracking number and report back on any unaccounted-for assets.

We Identified a total of 1,404 high risk portable hardware assets assigned to 459 employees.

This group of assets averages to 3 devices per assigned employee. The departments with the most portable assets are Water and Power (327), Library (152), and Fire (149). A total of 149 laptops were assigned as "CORONA LOANER" or loaned to employees for telecommuting purposes during COVID. In Water and Power (PWP) one employee has 136 assets assigned to them. Of the remaining deployed assets, 355 employees had one or more assets assigned to them, 89 had 2-5 assets, 9 employees had 6-10 assets, and 6 employees had 10 or more assets assigned to them.

Finding 3: In DoIT’s last DRP inventory count, PWP had a total of 47 missing assets as of December 23, 2022.

Risk Rating: High
During our review of DoIT’s inventory process, DoIT stated that PWP was allowed to maintain and account for their hardware inventory differently than other departments in the City. Unlike other City departments, PWP has dedicated information technology staff to address the department’s unique utility infrastructure system and security needs. In addition, the department historically used these staff as an in-house IT support system and these staff were expected to manage asset replacement and IT asset management. As such, these handful of individuals were allowed to independently distribute and maintain hardware assets on behalf of PWP. They also were not integrated into DoIT’s service center process to request IT support or resources. As such, PWP maintained the information on the location and use of these devices and any controls to manage service/device needs or assignment of individual devices were not readily available to DoIT.

When these missing assets were first identified, DoIT worked with PWP staff to immediately locate as many assets as possible and advised PWP IT staff to file a police report of the missing assets. The count of missing assets went from approximately 52 to 42 after the filing of the police report. Some of the reasons noted for why the assets went undetected for so long, was that assets may have been handed down or reassigned from old to new staff and that assets may have been damaged or misplaced. These assets were never reported to PWP IT or DoIT 9 There are documented exceptions for printer leases, mobile phones, and other specific technology needs where DoIT cannot get a bulk discount where individual departments can directly procure these n eeded items.

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12 staff. Another issue that emerged was that PWP IT and DoIT staff did not have a process in place to adequately document assets being returned, and it was unclear if assets reported as returned by PWP had been recorded accurately in DoIT’s inventory management system.

In our review of DoIT’s inventory management database for portable hardware assets, we found that PWP assets were primarily assigned to one of three IT staff people. In one case, one PWP IT staff person was assigned 136 assets which had been dispersed between at least 12 different physical locations. Additionally, 17 of these assets did not have an assigned location and 28 had been noted as loaned computers for telecommuting during COVID.

During this review, DoIT did reach out to Internal Audit to discuss the missing assets and ways to mitigate risks in the DRP process. DoIT made changes to the DRP process to help mitigate the risk of further assets going missing, including requiring departments to hand over all old assets when receiving a new asset, and adding an automated scanning process to document receipt of the old asset when the new assets are received. Additionally, all PWP assets that were unassigned have been returned to DoIT’s possession. DoIT has also been updating their asset transfer process, which is going to require DoIT staff directly retrieving old assets as they deploy new assets to a department.

Internal Audit also reached out the Acting Assistant General manager of Finance and Administration at PWP to discuss how they can strengthen the controls related to their hardware asset inventory. The Acting AGM noted that they will no longer operate independent of DoIT’s DRP policy and has changed internal practices so that PWP staff are now integrated into DoIT’s service center
Recommendation 3a: The Chief Information Officer should immediately identify any other departments or divisions that may be operating outside of the established DRP procedures and work with them to bring them into compliance with DoIT DRP policy.

Recommendation 3b: The Chief Information Officer should approve any exceptions to DRP policies. Any exemption process granted should also be documented in the DRP policy.

Recommendation 3c: The Chief Information Officer should amend DoIT policies and procedures to limit the number of assets that can be assigned to one person. When there are exceptions made to this policy, (i.e., training rooms or labs) DoIT should require a mitigating control such as inventory of assets on a daily/weekly basis. DoIT should also ensure that all assets are assigned to a specific individual and a physical location where the asset is primarily housed and maintained.

Recommendation 3d: The Chief Information Officer should consider what is a reasonable number of devices a single employee can be assigned at any time and require a department to provide a formal justification for one employee to be assigned more than that number of devices. Device thresholds or exceptions to the thresholds should be documented in DoIT policies.

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13 Finding 4: There are several opportunities to improve the inventory process to reduce the risk that portable assets could be stolen, misplaced, or lost.

Risk Rating: High
DoIT Assets Received and Stored in Cage
DoIT service center also conducts physical reconciliation of assets on hand that are stored in DoIT’s secured storage room. This reconciliation had been conducted a few times a month, counting only the assets stored in the cage and then validating their status in the inventory database (accuracy check). This method only accounts for the assets that were physically present in the cage at that moment in time. This process does not include a preliminary check of the inventory system to ensure they were accounting for completeness of the total assets that should be in the cage (completeness check). Many of these assets move between service center staff readying the asset for the end user, so assets can be moved in and out of the cage at any given time.

During our review, DoIT updated their inventory process to include both accuracy and completeness testing. The service center manager now scans the bar codes of assets in the cage, and then reviews the database to determine what may be missing from the scan. In December, he noted this process had identified four assets not in the cage. The manager was able to individually track these four assets back to the possession of DoIT staff. According to the service center manager, implementing this process has resulted in fewer instances with an asset that has an unknown location, as staff are more diligent about tracking the locations of assets in the database when they leave the cage.

Portable Radios
As noted in the background of this section, DOIT conducts an annual inventory of its assets as part of the DRP process. Prior to June 2022, portable radios were maintained on a spreadsheet outside of DoIT’s inventory database and radio assignments tracked on the manufacturer’s database used to push firmware updates. With the integration of portable radios into DoIT’s central database, DoIT can more readily account for radio handling when procured, received, deployed, and salvaged like other IT assets.

While the risk of not having radios in a central database has been mitigated, we identified some other risks related to portable radios that had not yet been addressed. One high risk area identified was the issuance of multiple radios to one individual. This happens most frequently in the Fire Department, where a Battalion Chief is required to store a minimum number of radios on a vehicle for use by mutual aid or other emergency circumstances. Unless there is an active emergency occurring, these stored radios may not be regularly used or turned on. It was also noted that radios would not always be disconnected in a timely manner due to a staff separation, or at times, handed off to another staff member without notifying radio personnel of the informal reassignment. Additionally, there is a supply of radios maintained in the radio shop awaiting deployment that could also be at risk if not inventoried for accuracy and

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14 completeness. Without a routine inventory process in place, there is a risk that portable radios could go missing and undetected for a lengthy period if they are not routinely inventoried or inspected.

While conducting our process walkthrough with radio staff, they noted that while they did not have a routine inventory procedure in place, radios must be tuned up on an annual basis by DoIT radio technicians to receive critical device updates and can be easily disabled/rendered useless by radio technicians remotely if they are reported missing or have not been updated in a timely fashion. When we were discussing ways to better manage radios inventory, staff mentioned it would be easy to conduct a physical count of all radios when radios were due for their annual service, using their database listing to compare to counts identified in the field.

This procedure can help identify radios that are missing, in the possession of another individual, or in need of updates. To mitigate the risk of portable radios going missing because of staff separation, service center staff stated that they could incorporate portable radios as part of the DoIT portion of the Human Resources Entry/exit process for staff.

Recommendation 4a: The Chief Information Officer should develop policies and procedures for a formal inventory process for radios and other portable assets, including routine or random asset count of any high-risk portable items maintained in storage within DoIT facilities.

Recommendation 4b. Additionally, the Chief Information Officer should require Radio staff inventory and inspect radios when they are due for their annual tune up process to ensure they are still present and accounted for accurately and completely. Any missing assets should be immediately disabled and reported to the proper authorities if they are not identified in a timely manner.

Recommendation 4c: The Chief Information Officer should further streamline the inventory management process by adding the Radio division to the service center asset workflow as part of the employee exit process to receive notifications when departments complete the personnel entry/exit form notifying DoIT to remove individuals from the Active Directory.

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15 Finding 5: The DoIT inventory storage area could benefit from enhanced physical security controls.

Risk Rating: Medium
As noted in the background of this section, best practices for managing IT assets includes ensuring assets are accounted for and physically protected. In our walkthrough of the service center section of DoIT, we found that there are several physical controls in place to safeguard hardware assets in DoIT’s possession. This includes a separate storage area in a key-accessed room, where there is locked cage within to store hardware assets received from vendors.

However, we noticed several areas where portable IT assets could be physically vulnerable to theft or potential destruction if not adequately mitigated. The actual storage cage has a sizeable gap near the top that could be accessed from the ceiling panel overhead. Additionally, there is a security camera in the caged area; however, at the time of our review, the camera and access to the footage was in possession of an employee of Pasadena Water and Power IT staff10. We also noted overhead sprinklers in the locked room and inventory cage that could accidentally damage stored assets should they leak or be deployed. Staff did confirm these sprinklers were operable and could be deployed if an emergency occurred. We also observed a large stack of surplus hardware items lining the outside hallway and shared workspace areas of service center staff that could obstruct access if they were to topple and present a safety risk to staff or others in the hallway. Staff noted that they did not have a routine salvage schedule, other than they need to have enough present to warrant a pickup. Once we noted this hazard, the service center manager was able to schedule a pickup by MASH employees to salvage the hardware in the hallway. The service center manager worked with Safety staff to identify space where hardware could be safely stored and noted they have now adopted a routine salvage schedule to ensure assets do not pile up and present a safety hazard to service center staff.

Recommendation 5a: The Chief Information Officer should work with the appropriate departments to identify ways to mitigate the storage cage physical gap and overhead sprinklers to better protect assets in storage from theft or destruction.

Recommendation 5b: The Chief Information Officer should formally adopt a routine salvage schedule for the department to prevent assets from crowding walkways and going unaccounted for and memorialize these procedures in a formal documented policy or process document. 10 According to staff testimony, PWP occupied the space before it became the DoIT inventory storage room.

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16 SECTION 3: AMMUNITION, FIREARMS, AND TASERS MAINTAINED BY THE POLICE

DEPARTMENT
As part of the scope of this audit, we evaluated the relevant laws, policies, and practices that the Pasadena Police Department (PPD) uses to purchase, inventory, and maintain ammunition, guns and tasers.

PPD has several policies in place to govern these three items, including:
• Pasadena Police Department Policy 312.2.3 (Ammunition) states that Officers shall utilize only department authorized ammunition in their on-duty, secondary, and off duty weapons.
• Pasadena Police Department Policy 309.1 Taser Purpose and Scope- This policy provides guidelines for the issuance and use of Taser devices.
• Policy 312 Firearms- This policy establishes procedures for the acquisition, use, and documentation of training in the use of firearms.

The department also has additional policies in place to govern department and personally owned property, requirements of what officers must carry on their person while on duty, and inspection of firearms and other equipment.

Police Department Ammunition Inventory
Pasadena Police Department Policy 701 requires sworn personnel to carry three magazines loaded to their rated capacity for their firearm, which generally equates to 90 rounds of ammunition worn on their duty belt. Additionally, sworn personnel are required to have their firearm inspected by the department rangemaster at least once a year to ensure it is in good working order. Personnel also must undergo qualification exercises for their primary and/or secondary duty weapons, which includes expending anywhere from 50 to 100 rounds of ammunition at the department range.

The Police Department has a multi-year contract in place to purchase ammunition with a vendor to acquire ammo as needed. The original contract was approved in FY 2017 for three years. Based on the total value of the contract and three extensions (a total of $750,000), the department planned to spend around $150,000 annually on ammunition. Based on the department’s purchase history for ammunition during the scope year, the department spent on average $88,841 a year on ammunition. This is well below the anticipated contracted spend of $150,000 a year as budgeted.

As part of our testing, we conducted a site visit to the Police Department Range and Training Center (training center). We observed the main locations where ammunition is stored and identified several physical access controls in place to monitor and track the movement of ammunition from the locked storage area and then into the locked cages in the range to use for

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17 qualification and distribution. The locked cages storing ammunition also have a sign in/sign out sheet for the firearms training team to obtain additional ammunition and record how much was taken out of stock.

During our review of PPD, we identified some risk areas related to management of firearms and tasers, which are discussed in Findings 6 through 9. Our evaluation of ammunition identified no current risk areas.

Finding 6: The Police Department was not formally tracking serialized suppressors in their firearms inventory database.

Risk Rating: High
The police department has specific policies governing firearms and department owned property. Policy 312 (Firearms) establishes procedures for the acquisition, use, and documentation of training in the use of firearms. The Chief of Police or his/her designee shall approve all department firearms before they are acquired and utilized by any member of the department. Policy 312 also permits the rangemaster to endorse, inspect, and approve specific firearm makes, models, and calibers of firearms for department use. This applies to handguns, shotguns, and rifles. In addition to department issued firearms, the rangemaster is also able to approve and inspect personally owned firearms used on duty. The rangemaster also has additional responsibilities related to ammunition, non-lethal weapons, and conducted energy devices, commonly referred to as Tasers.

During our fieldwork testing, five members of the firearms training team temporarily assumed the duties of the rangemaster due to the separation of the employee in that position. During this transition, the department migrated the firearms inventory database to Lucity to better manage the status of the firearms. The rangemaster had been using the department’s Training Management Systems (TMS) database to track firearms in use by officers, firearms used for training at the range, and the disposition of traded or destroyed firearms. The TMS database was being used for reference purposes at the time of our fieldwork. As of February 2023, the department appointed a sergeant to serve as the department rangemaster.

During the scope of our audit, the department purchased a total of 113 serialized firearms and components, of which 73 were firearms (handgun, rifle, swat rifle) and 40 suppressors. Like firearms, suppressors are serialized in accordance with federal firearms regulations, and are only available for purchase and use by law enforcement/military personnel in the State of California as allowed by Penal Code Chapter 9, stat. 3341511. The department also traded 32 firearms with the vendor for credit for future purchases by the department. 11 CA. Penal Code Chapter 9, stat. 33410 makes it a felony for any person, firm, or corporation within this state to possesses a silencer. Stat. 33415 clarifies that 33410 is not applicable to active members of military, full time law enforcement, and federally licensed firearm dealers or manufacturers.

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18 When comparing serialized firearms and components purchased and recorded in inventory, we found that all 40 firearm suppressors purchased during the scope period were not recorded in either the TMS or Lucity databases. Firearms training team staff stated that the department has never recorded suppressors in any inventory database, as they are considered a consumable and have a short useable life based on how many rounds are expended through it. After discussing the finding and issue, the firearms training team agreed with the identified risk and will begin to record serialized suppressors with the firearms they are mounted to in Lucity.

Recommendation 6: Going forward, the Chief of Police should require the firearms training team (or Range Master) to record suppressor serial numbers in the firearms database, noting when they are attached to a firearm or on hand. Serialized suppressors should also be subject to routine inventory/verification counts in the same manner as firearms and incorporated into formal policies and procedures used to audit and account for department firearms.

Finding 7: The department should enhance its current firearms inventory and audit process to include segregation of duties and additional procedures to validate both the accuracy and completeness of all firearms purchased, assigned, or disposed at any given time.

Risk Rating: High
During our review, we identified two risks related to firearms that needs to be mitigated: 1) accuracy and completeness of firearm inventory procedures and 2) adequate segregation of duties related to firearm purchase, inventory, and disposal. When we compared the department’s firearms inventory listing to purchases made during the scope period, we identified one firearm that was purchased but not documented in the inventory system.

Additionally, we identified one firearm noted as traded on a vendor invoice that was not documented in any database. We also found that the prior firearms procurement and inventory process duties was not adequately segregated to prevent theft or misuse.

The firearm missing from the inventory list was a Glock M24 duty weapon that the firearms training team lieutenant found stored in the department’s Logistics Room. A photo of the weapon and its serial number were provided to us to validate the finding. When asked why it was not entered into either TMS or Lucity, the Lieutenant stated that the firearm should have had been entered into Lucity but noted that at the time the firearms training team was still reviewing the accuracy and completeness of the firearms data entered in Lucity from TMS. This weapon was also not documented in the TMS system. As for the weapon that was noted as traded on the vendor’s invoice, the department was able to identify a memo confirming approval of the traded weapon and when it was turned over.

The rangemaster had been provided broad authority over firearms for the department. When reviewing the procurement process used during our period of review for firearms, the rangemaster had the ability to request firearm orders, receive shipments at the training center, distribute them to officers, and direct the disposal process. Firearms training staff stated that the rangemaster did not have the ability to modify any firearm information after it had been

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19 entered into the TMS inventory list, as that was managed outside of the firearms training team by a Community Services Officer. However, there was no routine procedure in place to validate that firearms ordered matched what was received and entered accurately and correctly into the firearms inventory database.

An audit/inspections corporal conducts routine reviews of firearms within the department using the list from the firearms database to validate that officers maintain the same weapons they are assigned, and inventory where other firearms may be stored in and outside of police facilities. When conducting inventories and audits of firearms, the process only included confirmation of weapons listed on the inventory database as assigned to an individual or location (accuracy check). However, there is no check to ensure that the data in TMS/Lucity was complete and updated before conducting a physical inventory (completeness check). It is likely that the weapons were never entered into the database or were mistakenly removed from the list. By not verifying the accuracy and completeness of the database prior to conducting a physical inventory, items that were purchased but not entered in the database, and/or items that may have been removed from their designated person/location could go undetected.

We also inquired about the disposal process for duty weapons no longer in use and confirmed that they are handled by the Property and Evidence unit in the department. The same process used to handle and account for firearms entered in evidence and disposed is used for duty weapons as well. No exceptions are made for these items. The destruction process includes a listing of the firearm in the property and evidence database, a summary of its need for disposal, and its destruction is witnessed by police personnel.

To address the segregation of duties risk identified above, PPD noted that they were working to modify their firearms handling process to require their Finance/Administrative manager to review and approve order requests, receive the shipping list with all serial numbers of firearms received and input this information into Lucity, then have the rangemaster physically receive the weapons at Police Headquarters and transport them to the training center. The rangemaster would also be required to provide a list of what weapons were assigned to officers to Finance/Admin staff for entry into the inventory list. If firearms need to be disposed of or traded, the rangemaster must provide an accurate and complete list of serialized firearms/components to the Finance/Admin manager and property room manager. This will enable these divisions to validate and update their systems to ensure that all firearms sent for disposal/trade are accounted for.

Recommendation 7: The Chief of Police should require the department firearms inventory process to incorporate both an accuracy and completeness review to validate the existence and locations of firearms used in the department. This includes working with department administrative staff to determine what firearms and other serialized components were purchased, traded, and/or disposed of in the prior year (or another time-based interval) to keep the department’s inventory listing accurate and complete.

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20 Finding 8: The Master Sergeant controls nearly the entire lifecycle of Tasers and creates several segregation of duties weaknesses that are not in accordance with best practice for handling inventory.

Risk Rating: Medium
Pasadena Police Department Policy 309.1 policy provides guidelines for the issuance and use of Conducted Energy Devices (CEDs), more commonly referred to as Taser devices. Only members who have successfully completed department-approved training may be issued and carry the Taser device. Taser devices are issued for use during a member’s current assignment. Those leaving a particular assignment may be required to return the device to the department’s inventory. Supervisors are required to respond to incidents involving activation of Taser devices and required to download the device’s onboard memory through the data port maintained by the master sergeant or rangemaster. Officers are also required to dock their CED battery monthly for automated data transfer or when directed by a supervisor to ensure timely transfer of data.

All sworn personnel (with only a few exceptions) are required to carry a Taser on their person while on duty. All officers are required to take a training on the use of the device in compliance with department policy before they can carry/use it. A Master Sergeant is the lead over the Taser program, which includes being certified in Taser instructions to provide the legally mandated Taser training for sworn personnel in the department. The first major rollout of Tasers to all sworn personnel is the current Taser 7s, which were purchased five years ago through a master contract with Axon Enterprises for the entire department. Tasers are not procured on an individual basis and would only be procured with another department wide upgrade.

In the acquisition of the Taser 7s, the Master Sargent and Commander receives the shipment at Police headquarters and enters it in the Axon database with the property room manager and Axon consultant. The property room manager, and other personnel have access to the inventory database listing in Axon. Tasers are then stored at the training center and distributed by the Master Sargent to personnel once they receive the required training and certification for use. The Master Sergeant also conducts an annual inventory of tasers. The current process of handling Tasers represents several segregation of duties conflicts that put management of Tasers at an unacceptable level of risk. Segregation of duties is a key internal control intended to minimize the occurrence of errors or fraud by ensuring that no employee can both perpetrate and conceal errors or fraud in the normal course of their duties. Generally, the primary incompatible duties that need to be segregated are 1) authorization or approval, 2) custody of assets, 3) recording transactions and 4) reconciliation of inventory.

During our period of review, the department purchased a total of 312 Axon Tasers 7s, 88 at present are not in operation, and 28 are unassigned in storage. The Master Sergeant that administers the Taser program stated that the 88 not in use were the result of faulty cartridges issued by the manufacturer that damaged the Taser units used during the department’s first

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21 training. We were able to view the Axon device database that is used as their inventory management database. The database lists all tasers procured by the department, their location, and when the device’s battery pack last interacted with the database via the battery pack dock.

As noted earlier, there are specific procedural requirements for taser device batteries to be uploaded to the database.

As it relates to the 88 defective battery packs, the department noted that they had been issued replacement by the vendor but had been holding onto the defective packs. Since this was the first major department wide rollout of Tasers, the department had not yet been through the disposal process for Tasers or had any procedures in place to handle Taser component that needed to be disposed. Unlike firearms, Tasers cannot be traded back to the vendor and must be disposed of if no longer useable or needed. Additionally, the department’s policies and procedures are silent on the proper handling and disposal of Tasers that are no longer in use.

At present, the Axon system can only be configured to allow or prohibit users based on an assigned role, and not individual permissions. As a result, several members may need to be assigned as a Taser module administrator or other role to allow different individuals to record receipt of and assign Tasers. For example, the Taser administrator role may need to be assigned to both a Finance/Admin manager and Master Sargent to allow them to separately conduct the receiving and maintenance of Tasers. To help compensate for this access limitation risk, additional monitoring should be conducted. Like firearms, Tasers should be routinely inventoried by staff that is not directly involved in the Taser process to validate the accuracy and completeness of the Taser inventory.

Recommendation 8a: The Chief of Police should mandate a routine inventory of Tasers to be conducted by another officer not responsible for Tasers to independently validate the existence and location of Tasers and communicate any discrepancies to the firearms training supervisor.

Recommendation 8b: The Chief of Police should require that new Tasers ordered are received by and entered in the Taser database by the department Finance and Administration manager to validate the quantity and listed serial numbers are accurate and complete when entered in the inventory database before handing them off to the Master Sergeant.

Recommendation 8c: The Chief of Police should also adopt a formal process for disposal similar to firearms, where tasers are handed off to the Property and Evidence personnel to be disposed of in accordance with the department’s property destruction policies and processes.

Recommendation 8d: To help strengthen the separation of duties for the handling of Tasers, the Chief of Police should work with the Taser vendor to determine if the Finance/Administration manager can have a specifically configured role that limits access to solely Taser Administration to manage and reassign Tasers. Other permissions granted at this level should be explicitly prohibited where feasible. Taser administrator access should be set to “prohibited” to any other staff assigned roles in the system unless there is a necessary business need.

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22 Appendix A: Findings Risk Ranking Criteria
High Risk Medium Risk Low Risk
Potential significant
financial/operational losses to the
City
Weakness that could cause
moderate losses to the City
Control weaknesses exist but are
mitigated by other controls
Significant internal control
weaknesses that are citywide or
affect a department’s operations.

Internal control weaknesses at a
division or unit level or non-
compliance with citywide policies
Controls which, if eliminated or re-
engineered, would benefit
productivity or effectiveness
Violation of laws, regulations, or
municipal code/ordinance
Non-compliance with grant
requirements or other
contractual agreements
Opportunities for process
improvements or increased
efficiencies

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23 Appendix B: Management Responses from Departments

1. Fire Department – page 24

2. Department of Information Technology – page 26

3. Police Department – page 32

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26

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27

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31

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32

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33

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36 Appendix C: Summary of the COSO Internal Control Framework Components and Principles
COSO
Component
Component Principles
Control Environment
• Commitment to integrity and ethical values
• Exercises oversight responsibility
• Establishes structure, authority, and responsibility
• Commitment to competence
• Accountability enforced
Risk Assessment
• Objectives are specified
• Risk is identified and analyzed
• Fraud risk assessment
• Identify and assess impact of significant changes on internal controls Control Activities
• Develop control activities that mitigate risk
• Develop general controls over technology
• Control activities deployed through policies and procedures Information and
Communication
• Uses relevant information
• Internal communication of internal control responsibilities • External communication of internal control performance Monitoring and
Review
• Conducts ongoing and/or separate reviews of internal control • Evaluate and communicate internal control deficiencies Source: Internal Control-Integrated Framework, © 2013, Committee of Sponsoring Organizations of the Treadway Commission (COSO). All rights reserved. Used with permission.

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Finance CommitteeAugust 28, 2023

Finance Committee
August 28, 2023