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HomeMy WebLinkAbout2005-11-09MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, November 9, 2005, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on November 9, 2005, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Bill Dalton Rich Freschi Phil Luebben Joy Neugebauer James W. Silva Mark Waldman DIRECTORS ABSENT: Steve Anderson, Board Chair Jim Ferryman, Vice Board Chair STAFF PRESENT: Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance/Treasurer Patrick Miles, Director of Information Technology Lilia Kovac, Committee Secretary Bob Geggie Jeff Reed Mike White OTHERS PRESENT: Brad Hagin, General Counsel Ken Al-Imam, Conrad & Assoc. Jennifer Christian, Conrad & Assoc. Ed Soong, PRAG Christine Telish, PIMCO Charles Wyman, PIMCO (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller had no report. (5) REPORT OF THE GENERAL MANAGER Bob Ghirelli, Acting General Manager, was not present. FILED IN THE OFFICE OF THE SECRETARY ORANGE ('f"'II ,-,, ,. •• ,..,.. T•f"IM !}!STRICT NOV 16 2005 ev-1...:.,_;.._<1 - I Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 November 9, 2005 (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Director of Finance, Lorenzo Tyner, advised FAHR Committee members that the OMTS Committee had approved to recommend to the Board of Directors the Time Entry System, Informational Presentation Item 12(b) on agenda. Director of Information Technology, Patrick Miles, responded to questions about the automated time entry system. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES Lisa Tomko, Director of Human Resources, reported that Consent Calendar Item 10(g) would be pulled for discussion. She also informed the committee that there would be a report of outstanding Workers' Compensation claims at the December FAHR Committee during closed session. (8) REPORT OF DIRECTOR OF PUBLIC AFFAIRS Bob Ghirelli, Acting Director of Public Affairs, was not present. (9) REPORT OF GENERAL COUNSEL Brad Hagin, General Counsel, had no report. (10) CONSENT CALENDAR ITEMS a. Approve minutes of the October 12, 2005, Finance, Administration and Human Resources Committee meeting. b. FAHR05-88 C. FAHR05-89 d. FAHR05-90 e. FAHR05-91 f. FAHR05-92 g. FAHR05-93 MOTION: Receive and file Certificates of Participation (COP) Monthly Report for the month of October 2005. Receive and file Employment Status Report as of October 18, 2005. Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. Recommend to the Board of Directors to receive and file the 2005-06 First Quarter Financial Report for the period ending September 30, 2005. Recommend to the Board of Directors to receive and file the Swap Report for the quarter ended September 30, 2005. Item pulled for discussion. It was moved, seconded and duly carried to approve the recommended actions for items specified as 1 0(a) through (f) under Consent Calendar. END OF CONSENT CALENDAR Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 November 9, 2005 g. FAHR05-93 Recommend to the Board to adopt Resolution No. OCSD05-27, Approving Amended Deferred Compensation Plan (2005) for Officers and Employees of the Orange County Sanitation District. MOTION: Lisa Tomko, Director of Human Resources, gave a brief report on the amended portions of the Compensation Plan. It was moved, seconded and duly carried to recommend approval to the Board of Directors. (11) ACTION ITEMS a. FAHR05-94 Recommend to the Board of Directors to receive and file Treasurer's MOTION: b. FAHR05-95 MOTION: c. FAH R05-96 MOTION: Report for the month of September 2005. Lorenzo Tyner introduced Christine Telish and Charles Wyman, of Pacific Investment Management Co., PIMCO, who presented background and current status of the Sanitation District's investments. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2005 through September 30, 2005. Christine Telish and Charles Wyman, presented the Committee members answers to questions about past investment decisions. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Recommend to the Board of Directors to appoint Bear, Stearns & Co., Inc. as the District's Underwriter/Remarketing Agent for the COP Series 2005 variable rate debt issuance. Lorenzo Tyner, Director of Finance, introduced Ed Soong of PRAG, who assisted in the selection of the proposed underwriter and remarketing agent of COPs Series 2005. Mr. Tyner will consider using two underwriters in future COP issuances, which would stimulate favorable competition for the Sanitation District. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 4 November 9, 2005 d. FAHR05-97 Recommend to the Board of Directors to receive and file the MOTION: e. FAHR05-98 MOTION: f. FAHR05-99 MOTION: Comprehensive Annual Financial Report for the year ending June 30, 2005, prepared by staff and audited by Conrad and Associates, Certified Public Accountants. Mike White, Controller, introduced Ken Al-Imam of Conrad and Associates, who provided a brief review on the issued Comprehensive Annual Financial Report, and described methodology used in the completion of the audit. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Recommend to the Board of Directors to: 1 ). Approve the reclassification of seven OCSD employees; 2). Approve position upgrades of four positions; and 3). Approve equity adjustment for one employee. Lisa Tomko, Director of Human Resources, provided an overview and clarifications of the recommended reclassifications, upgrades, and equity adjustment. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Recommend to the Board to: 1 ). Direct staff to seek proposals from firms that provide Workers' Compensation Third Party Administrator (TPA) services; 2). Authorize staff to terminate the existing Workers' Compensation TPA services agreement with Cambridge Integrated Services Group, Inc. effective June 30, 2006, based on conducive market conditions; and, 3). Authorize staff to negotiate a new contract for Workers' Compensation TPA services based on competitive bidding, if advantageous, which is to include a favorable cost structure. Director Duvall recommended that based on the enhanced safety policies adopted by the Sanitation District resulting in low claim volume, that the Workers' Compensation Claims processing contract be renegotiated and that the Human Resources Department report back to the Committee. It was moved, seconded and duly carried to authorize staff to renegotiate the contract with Cambridge for lower claim processing costs, and report back to the FAHR Committee. Section 4: Employer Discretion to Accelerate Distributions. Notwithstandi-Ag--t-A-e feregoing, the Employer shall have th8--fi-ght to acce-lerate distributions, as pre-v-lded in Sl::1-13section 10.7.3 of the Plan . The Em~er, in its sole and absolute discretion, may d+&tribute the entire balance of the Participant's Investment Accol:1-A-t-te-tlle-Participant when subparagraphs (a) (c) of Section 10.4 of the Plan are satisfied. lh addition, after Elistributions have eegun under Sections 10.1, 10.2, or 10.6 of the Plan, and at such time as the balance of the Participant's Investment Account, or any portion thereof t3ayable to a beneficiary,&A-01:t~e-Be-l-e-ss than or equal to the amount provided in Internal Revenue Code Section 457(e)(9) ($5,000.00 as of the date of the First Amendment to the Plan), the Employer, in its sole and absolute discretion and for adm-inistrative ease, may distribute such balance or such portion in a lump sum on the date of the first -re§tl~arly scheduled payment of the next calendar yea'7----Moreover, at any time after distributions have begun under Sections 10.1 , 10.2, or 10.6 of the Plan, if the Emp~ Eleterrriines that the payment schedule, as elected by the Participant.or by the Category /\ Beneficiary, if appli-cable, is such that monthly payments would be in an amount less tA-aA-$200.00, then the Employer, in its sole and absolute discretion, may make distributions in the amount of $200.00 per month, until exha-1:1-&tion of the Investment A£count, or portion thereof in question, irresp~ract that this would have the effect of shortening the distribHtion period originally elected by the Participant, or the Category/\ Beneficiary, if applicable. Section 4: Emp loyer Discretion to Accelerate Distributions. [Deleted 20051 Section 5: Revocation of Benefits Election. The Participant is hereby informed and understands that, in order for tax benefits to be available to the Participant by virtue of participation in the Plan, the Internal Revenue Code and Treasury Regulations require that the election regarding receipt of benefits during the Participant's lifetime must be irrevocable before the earliest date upon which distributions may commence, subject to a few limited exceptions. Therefore, the commencement date portion of the Benefit A Election, or any modification thereto in the form of Attachment "B" hereto, shall become irrevocable on the lapse of the fifteenth (15th) day after termination of employment with the Employer due to retirement, and the commencement date portion of the Benefit B Election, or any modification thereto in the form of Attachment "B" hereto, shall become irrevocable on the lapse of the thirtieth (30th) day after Termination of Service, except that: (a) after such lapse, the Participant may request acceleration of payments in accordance with either Subsection 10.4 of the Plan, regarding Investment Accounts valued at no more than the maximum amount permitted under Internal Revenue Code Section 457(e)(9) ($5,000.00 as of the date of adoption of the First Amendment to the Plan), or Section 11 of the Plan, regarding Unforeseeable Emergencies, and (b) at the time provided in either Subsection 10.1.3 or Subsection 10.2.3 of the Plan, as applicable, the Participant may make a one-time change in election to further defer the commencement date of distributions. In order to terminate an Investment Account, in accordance with Section 10.4 of the Plan, the Participant shall deliver to the Employer an Application for Termination of Investment Account, in the form of Attachment "E" hereto. In order to request an emergency withdrawal under WS&S -#173444:Revised 08/26/03 Revised 1011 ?/05 16 ROLL CALL FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Meeting Date: November 9, 2005 Time: 5:00 p.m. Adjourn: ___ _ COMMITTEE MEMBERS Darryl Miller (Chair) Mike Duvall (Vice Chair) Bill Dalton Richard Freschi Phil Luebben Joy Neuqebauer James W. Silva Mark Waldman Steve Anderson (Board Chair) Jim Ferryman (Board Vice Chair) OTHERS I Brad Hagin, General Counsel I I STAFF Bob Ghirelli, Acting General Manager Lorenzo Tyner, Director of Finance/Treasurer David Ludwin, Director of Engineering Jim Herberg, Director of O & M Lisa Tomko, Director of Human Resources Patrick Miles, Director of Information Technoloqy Nick Arhontes, Director of Regional Assets & Services Lilia Kovac, Committee Secretary Pongsakdi Cady Jeff Reed Mike White c: Lenora Crane AGENDA REGULAR MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE ORANGE COUNTY SANITATION DISTRICT WEDNESDAY, NOVEMBER 9, 2005, AT 5:00 P.M . . ADMINISTRATIVE OFFICE 10844 Ellis Avenue Fountain Valley, California 92708 www.ocsd.com (1) ROLL CALL (2) APPOINTME:NT OF CHAIR PRO TEM. IF NECESSARY . (3) PUBLIC COMMENTS (4) REPORT OF COMMITTEE CHAIR (5) REPORT OF GENERAL MANAGER (6) REPORT OF DIRECTOR OF FINANCE (7) REPORT OF DIRECTOR OF HUMAN RESOURCES (8) REPORT OF DIRECTOR OF PUBLIC AFFAIRS (9) REPOFH OF. GENERAL COUNSEL (10) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Approve minutes of the October 12, 2005, Finance, Administration and Human Resources Committee meeting. Book Page 1 November 9, 2005 b. FAHR05-88 Receive and file Certificates of Participation (COP) Monthly Report for the month of October 2005. (Book Page 15) c. FAHR05-89 Receive and file Employment Status Report as of October 18, 2005. (Book Page 25) d. FAHR05-90 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. (Book Page 31) e. FAHR05-91 Recommend to the Board of Directors to receive and file the 2005-06 First Quarter Financial Report for the period ending September 30, 2005. (Book Page 37) f. FAHR05-92 Recommend to the Board of Directors to receive and file the Swap Report for the quarter ended September 30, 2005. (Book Page 39) g. FAHR05-93 Recommend to the Board to adopt Resolution No. OCSD05-_, Approving Amended Deferred Compensation Plan (2005) for Officers and Employees of the Orange County Sanitation District. (Book Page 43) END OF CONSENT CALENDAR Consideration of items deleted from Consent Calendar, if any. (11) ACTION ITEMS a. FAHR05-94 Recommend to the Board of Directors to receive a171d file Treasurer's Report for the month of September 2005. (Book Page 81) (Lorenzo Tyner/Christine Telish -1 O minutes) b. FAHR05-95 Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2005 through September 30, 2005. (Book Page 85) (Lorenzo Tyner/Christine Telish -1 O minutes) c. FAHR05-96 Recommend to the Board of Directors to appoint Bear, Stearns & Co., Inc. as the District's Underwriter/Remarketing Agent for the COP Series 2005 variable rate debt issuance. (Book Page 121) (Lorenzo Tyner - 1 O minutes) d. FAHR05-97 Recommend to the Board of Directors to receive and file the Comprehensive Annual Financial Report for the year ending June 30, 2005, prepared by staff and audited by Conrad and Associates, Certified Public Accountants. (Book Page 129) (Mike White -20 minutes) 2 Book Page 2 e. FAHR05-98 November 9, 2005 Recommend to the Board of Directors to: 1 ). Approve the reclassification of seven OCSD employees; 2). Approve position upgrades of four positions; and 3). Approve equity adjustment for one employee. (Book Page 135) (Lisa Tomko - 5 minutes) f. FAHR05-99 Recommend to the Board to: 1 ). Direct staff to seek proposals from firms that provide Workers' Compensation Third Party Administrator (TPA) services; 2). Authorize staff to terminate the existing Workers' Compensation TPA services agreement with Cambridge Integrated Services Group, Inc. effective June 30, 2006, based on conducive market conditions; and, 3). Authorize staff to negotiate a new contract for Workers' Compensation TPA services based on competitive bidding, if advantageous, which is to include a favorable cost structure. (Book Page 145) (Jeff Reed - 5 minutes) (12) INFOBMATl0NAL ITEM$ a. FAHR05-100 Update on airline/travel card program. (Book Page 151) (Lorenzo Tyner -1 O minutes) b. FAHR05-101 Time Entry System (Book Page 187) (Pongsakdi Cady -1 O minutes) (13) CLOSED SESSION r During the course of conducting the ' business set forth on this agenda as a regular 'me~ting of the Committee, · '1 [ the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, 1 1 :,i:. ) pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, i 54957 or 54957.6, as noted. i Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) ~ : employee actions or negotiations with employee representatives; or which are exempt from public disclosure !,,. \ under the California Public Records Act, may be reviewed by the Committee during a permitted closed session : and are not available for public inspection. At such time as final actions are taken by the Committee on any of I [ .. ~-~-:.~~ .. ~~.~~.:.~t~:.~~.: .. ~.i~~~.~s will ~.~:'.::.~-~.l~ .. ~~~~~.~e~ .. ~.i.~~~~:~~:.~.:~ .. '.~~.~:.=~.~~.~.~~···-··-···-··-·· .. ····-······-···-.. ·· .. ··.··· .. ······ .. ······ .................... J a. Convene in closed session. b. Reconvene in regular session. c. Consideration of action, if any, on matters considered in closed session. (14) OTHERBlJ$1NE$6, COMMUNICATIONS OR Sl.JPPLEMENTAL AG ENDA ITEMS, I~ ANY 3 Book Page 3 November 9, 2005 (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT (16) FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for December 14, 2005, at 5 p.m. (17) ADJOURNMENT 4 Book Page 4 November 9, 2005 A@enda P0stin.g: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. ltemscNot P0ste0: In the event any matter not listed on this agenda is proposed to be submitted to the Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Operations, Maintenance and Technical Services Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Oa:letidar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meetlh@ A"€1Iourfilment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). AGcommodations for the Disab led: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair: Committee Secretary: Acting General Manager: Director of Finance: Director of Human Resources: Acting Director of Public Affairs: Darryl Miller Lilia Kovac Bob Ghirelli Lorenzo Tyner Lisa Tomko Bob Ghirelli (949) 453-5300 (714) 593-7124 lkovac@ocsd.com (714) 593-7110 bghirelli@ocsd.com (714) 593-7550 ltyner@ocsd.com (714) 593-7145 ltomko@ocsd.com (714) 593-7 400 bghirelli@ocsd.com H:\dept\agenda\FAHR\FAHR2005\1105\01.3.110905 FAHR Agenda.doc 5 Book Page 5 Book Page 8 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, October 12, 2005, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on October 12, 2005, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: DIRECTORS PRESENT: Darryl Miller, Chair Mike Duvall, Vice Chair Rich Freschi Phil Luebben Joy Neugebauer James W. Silva Mark Waldman DIRECTORS ABSENT: Steve Anderson, Board Chair Bill Dalton Jim Ferryman, Vice Board Chair STAFF PRESENT: Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services Lisa Tomko, Director of Human Resources Lorenzo Tyner, Director of Finance/Treasurer Lilia Kovac, Committee Secretary Jim Matte Sonja Morgan Jeff Reed Mike White OTHERS PRESENT: Brad Hagin, General Counsel Bob Lockhart, Revenue Enhancement Group Norbert Gaia Bob Geggie Juanita Skillman (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments (4) REPORT OF THE COMMITTEE CHAIR Chair Miller reported that he had met with the Director of Finance, Lorenzo Tyner, and Mike White, Controller, to review the agenda items as his introduction as Chair to the committee issues. Chair Miller and Director Luebben will participate in the internal audit subcommittee in the interview and selection process. (5) REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, announced there would be a meeting on the GWRS project for elected officials on October 14 at 11 :30 AM at the Orange County Water District. The Orange Book Page 9 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 October 12, 2005 County Public Infrastructure report card will be rolled out on October 21 st. The General Manager also advised that the Sanitation District's federal and state legislative consultants would be attending the October 26th Steering Committee and Board Meeting to discuss the legislative agenda for 2006 and review activity in 2005. A tour of the section of Santa Ana River Interceptor (SARI) line that was repaired last winter is scheduled for October 2?1h. The state and federal legislative consultants will be attending the tour, as well as members of congressional staff, and members of the Sanitation District legislative committee. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Lorenzo Tyner, Director of Finance, informed the Committee members that after having met with Committee Chair Miller he would like to recommend some improvements to the monthly Treasurer's Report, and that the report be approved the following month giving Board members an opportunity to fully review the contents of the report. A motion was made, seconded, and duly carried: Receive the report on a quarterly basis with variances highlighted to the committee members. As requested by the FAHR Committee, staff will submit a report on the air travel booking and payment process as covered by the blanket purchase order to American Airlines Travel Card Program, a travel payment system that is accepted by almost every air carrier in the world. Included within this report will be a summary of all payments made by the District for air travel incurred by staff during the first quarter ended September 30, 2005. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES Lisa Tomko, Director of Human Resources, reported updates to the employment status report, identifying positions currently open at OCSD as requested by the Directors during the September FAHR Committee meeting. Ms. Tomko introduced Jim Matte, Safety and Health Supervisor, to present the Workers' Compensation report to the Directors. The request in the previous FAHR Committee meeting was that the Workers' Compensation administrative costs be identified in a follow up report. Once identified, Director Duvall expressed further interest in the administrative costs, and asked for more detailed information to be presented at the November meeting. (8) REPORT OF DIRECTOR OF PUBLIC AFFAIRS Bob Ghirelli, Acting Director of Public Affairs, had no report. (9) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, reported that the contractor and its insurance company has agreed to defend the Sanitation District on the Andino lawsuit, which claims property damage to homes on the Bushard project. The contractor has not agreed to indemnify the District to pay any damages on Book Page 10 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 October 12, 2005 behalf of the Sanitation District, should it be found responsible. Directors strongly advised Staff to revise the Sanitation District's indemnification clause to protect the Sanitation District from similar situations. Chair Miller will continue discussions with the General Manager to review methodology of contract conditions that indemnify the Sanitation District against any claims caused by a contractor. (10) CONSENT CALENDAR ITEMS a. Approve minutes of the September 14, 2005, Finance, Administration and Human Resources Committee meeting. b. FAHR05-80 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of September 2005. Staff researched and found the government requirements to distribute within 30 days was repealed. The Treasurer's Report was distributed at the FAHR committee meeting. However, it will be received and filed at the next committee meeting. The Directors acknowledged that this monthly report does not offer readily-visible contents, and suggested quarterly updates with activity highlights is preferred. c. FAHR05-81 Receive and file Certificates of Participation (COP) Monthly Report. d. FAHR05-82 Receive and file Employment Status Report as of September 20, 2005. e. FAHR05-83 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR05-84 Approve Revisions to SAFETY-POL-115, Backflow Prevention Program MOTION: Policy and SAFETY-POL-202, Accident Investigation Program as provided for in Resolution No. OCSD 02-5 regarding the Sanitation District's Injury and Illness Prevention Program. It was moved, seconded and duly carried to approve the recommended actions for items specified as 1 0(a) through (f) under Consent Calendar. Directors requested that Staff provide detail report on Worker's Compensation Administration costs, Item 1 0(e). FAHR05-83. END OF CONSENT CALENDAR (11) ACTION ITEMS a. FAHR05-85 Recommend to the Board of Directors to Adopt Resolution No. OCSD05-25 approving the National Incident Management System for use Book Page 11 Minutes of the Finance, Administration and Human Resources Committee Meeting Page4 October 12, 2005 MOTION: at the Orange County Sanitation District during emergencies. Jim Matte, Safety and Health Supervisor, advised the Committee that the resolution standardizes the structure to communicate with other agencies, and adoption of this resolution is a requirement to qualify for federal funding in the case of a disaster. He also advised that the Sanitation District has most of these practices already in place and there are no additional costs involved in adopting this resolution. It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR05-86 Recommend to the Board to Directors to: (1) approve the results of the non-residential parcel review project; (2) to direct staff to use the corrected database on a "going-forward" basis; and, (3) provide direction to staff on the collection of past charges. MOTION: Bob Lockhart, CEO Revenue Enhancement Group, addressed the Committee with a concern over the disparity of fees undercharging high- volume users. He referred to the possibility of the Sanitation District being responsible for gifting of public funds If fees were not collected based on proper square footage. General Counsel Brad Hogin advised that the Sanitation District would not be issuing a specific group special rate, but is handled as general interest. General Counsel advised that this would not be a gift of public funds as the Sanitation District would not be issuing specific group rates. General Counsel also stated that the proposal not to pursue past under charges would not result in a gift of public funds if the expense and effort to collect past undercharges exceeded the anticipated revenue. It was moved, seconded and duly carried to recommend approval to the Board of Directors. Directors instructed Staff to refrain from pursuing collection of past underpayments due to the expense and effort that would be involved in the collection process. The Directors requested that Staff submit a report of the 10-15% of larger business that fit in the high-volume users, with a proposed plan to capture the applicable fees due. (12) INFORMATIONAL PRESENTATIONS a. FAHR05-87 Public Affairs Strategic Plan FY 2005/06 Update Bob Ghirelli, Acting Director of Public Affairs, referred to the quarterly report included in the agenda report. Mr. Ghirelli announced that the Groundwater Replenishment System received the Governor's Environmental Economic Leadership award, which is the highest environmental honor that can be given by the State of California and will Book Page 12 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 October 12, 2005 be presented to the Sanitation District and the Water District at a special ceremony on November 22nd in Sacramento. A cruise on the Sanitation District's ship Narissa is scheduled for Saturday, December 10th to demonstrate fish trolling, mud sampling, and typical lab tests. The ship will comfortably accommodate six to eight passengers, and Directors may contact the General Manager's office to sign up for this cruise. (13) CLOSED SESSION There was no closed session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (16) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for November 9, 2005 at 5 p.m. (17) ADJOURNMENT The Chair declared the meeting adjourned at 6:40 p.m. Submitted by: ; /') d0-£,c;~ ~~ Lilia Kovac FAHR Committee Secretary H:\dept\agenda\FAHR\FAHR2005\ 1005\ 101205 Draft FAHR Minutes.doc Book Page 13 Book Page 14 FAH R COMMITTEE AGE NDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Mike White, Controller Meeting Date I To Bel. of Dir. 11/09/05 Item Number ' I Item Number FAHR0S-88 SUBJECT: CERTIFICATES OF PARTICIPATION (COP) MONTHLY REPORT - OCTOBER 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file Certificates of Participation (COP) Monthly Report for the month of October 2005. SUMMARY The District began issuing Certificates of Participation (COPs) on a variable interest rate basis in 1990. These variable rate COPs were a part of our long-term financing plan which also included some more traditional fixed rate borrowing. In 1992 and 1993, some of the fixed rate COPs were refunded and replaced with synthetic-fixed rate COPs. These are variable interest rate COPs that are also subject to a long-term fixed-rate interest exchange agreement (SWAP). The SWAP provides the maximum interest rate to be paid by the District, and is less costly than traditional fixed rate borrowing. In August 2000, the entire financing program was restructured and modernized to incorporate and take advantage of the consolidation of District books of account and revenue structure. This process has reduced the number of COP issues from five to three; 1992 Refunding COPs, 1993 Refunding COPs and 2000 Refunding COPs. The 2000 COPs can be divided into Series A and Series B, if additional remarketing agents are desired. In August 2003, the District issued $280 million of fixed rate COPs, Series 2003, that have varying coupon rates that are matched against the varying maturity dates. The true interest cost for the entire issue is 5.15 percent. Variable interest rate COPs can be put back on the market by the buyer each day. When this happens, they must be remarketed or sold to another buyer. This process, called remarketing, is generally provided by a municipal bond underwriter. The remarketing agent sets the interest rate they believe is required to sell the COPs. Some issuers believe that having more than one remarketing agent promotes competition and results in lower interest costs. Staff has monitored variable interest rate issues of other agencies since the inception of our program. The attached charts are described in the "Additional Information" section of this agenda report. They are provided monthly to compare our actual interest rates to a composite index, and to other selected issuers of similar credit quality, and with COP issues of similar amounts. Many variables affect interest rates, but staff expects our rates to be among the lowest. PRIOR COMMITTEE/BOARD ACTIONS N/A Book Page 15 PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. cgj Not applicable (information item) ADDITIONAL INFORMATION The first graph entitled, "OCSD COP Rate History Report," shows the actual variable interest rates paid on each of the daily rate COPs since the last report, and the effective fixed rate for the two refunding issues which are covered by an interest rate exchange agreement commonly called "swap." The second graph is a bar chart entitled, "Comparative Daily COP Rate History Report," shows the performance of the District's Daily Rate COPs as compared to a composite index rate, which represents the average rate of six similar variable rate daily reset borrowings. The third graph is a bar chart entitled, "COP Rate History, Comparison of Highest & Lowest Rates," compares the performance (monthly average interest rate) of the District's Daily Rate COPs with the highest and lowest monthly average rates from among six similar variable rate daily reset COPs. The table entitled, "COP Rate History, Comparison of Monthly Averages," shows the monthly variable interest rate performance of the District's Daily Rate COPs as compared to the composite index. Estimated annual interest payments calculated for a standard $100 million par amount, are also shown. Variable rates historically rise at the end of each calendar quarter, and especially at year-end, because of business taxes and liquidity requirements. The rates tend to decline to prior levels immediately in the following month. Staff maintains continuous rate monitoring and ongoing dialog with the remarketing agents to keep the Committee fully informed about developments in the program as they may occur. ATTACHMENTS 1. Graph -OCSD COP Rate History Report 2. Graph -Comparative Daily COP Rate History Report 3. Graph -COP Daily Rate History, Comparison of Highest & Lowest Rates 4. Tabular -COP Rate History, Comparison of Monthly Averages LT:MW:lc H:ldept\agenda\FAHRIFAHR2005\1105\05-88.COP Monthly Apt.DOC Revised: 06/04/03 Book Page 16 Page 2 Book Page 18 I-0::: 0 a. w 0::: > 0::: 0 I-u, -J: w an I-0 ~ 0 N a. ... C1) 0 .c 0 0 ..., > U I ...J 0 -<C C w > -I-<C 0::: <C CL ~ 0 0 I 0 0 ,,i I I I I - I I I I I I I I I I I I I I I I I 0 C! N I I I I (%) 3l'o'H I I I I I I Book Page 19 I I I I I I I I I I I I ~ 0 0 ..--- 90'PO ~ go'das " go'5nv - go '1nr go'unr ~ 90 'ABV\I - 90 'Jdy 90 'JBI/\I go'qa.:1 go'uer 170 'oao - 170 'AON 0 C! w 0 I- <( C X w • ~ w I-cii 0 a. :;;i; 0 () • 0 0 0 N "O C: a, (Y) g, "' a, ":i5 en a. 0 () • en () 0 • Book Page 20 Book Page 22 DAILY COP RATE HISTORY COMPARISON OF MONTHLY AVERAGES NOV 2004 -OCT 2005 OCSD $218.6M $46M Series 2000 Series 93 Ref PaineWebber PaineWebber Nov-04 1.52 1.52 Dec-04 1.55 1.55 Jan-05 1.70 1.70 Feb-05 1.76 1.76 Mar-05 1.86 1.86 Apr-05 2.42 2.42 May-05 2.88 2.88 Jun-05 2.23 2.23 Jul-05 2.11 2.11 Aug-05 2.26 2.26 Sep-05 2.38 2.38 Oct-05 2.50 2.50 AVERAGE 2.10% 2.10% ESTIMATED ANNUAL INTEREST PAYMENTS PER $100M PAR AMOUNT $ 2,097,500 $ 2,097,500 * FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86-COP, 88, 95, $106.1 M, Citigroup . IRWD, Series C-Ref 93-B, 85-B, $62.1 M, Lehman Brothers . IRWD, Series 91, 93, 85, $93.0M, PaineWebber . IRWD, Series 89, C-Ref 93-A, C-Ref 95, $70.9M, Merrill Lynch Composite Index* 1.51 1.54 1.69 1.74 1.84 2.40 2.87 2.22 2.08 2.24 2.37 2.48 2.08% $ 2,081,667 . Western Riverside Co. Reg. Wastewater Auth., Series 96, $25.4M, PaineWebber . Orange Co., Irvine Coast Asst. Dist. 88-1, $94.5M, J.P. Morgan BookPage 23 Book Page 24 FAHR COMMITTEE Meeting Date 11/09/05 AGENDA REPORT Item Number FAHR0S-89 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Richard Spencer, Human Resources Supervisor SUBJECT: EMPLOYMENT STATUS REPORT AS OF OCTOBER 18, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the Employment Status Report. SUMMARY The number of full-time equivalent (FTE) employees at OCSD is 595.50; actual headcount is 606. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECTICONTRACTCOSTSUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. IZI Not applicable (information item) ADDITIONAL INFORMATION NEW HIRES: 3 Total Job Title Office Assistant Instrumentation Technician II Construction Inspector H:ldept\agenda\FAHRIFAHR2005\1105\05-B9.Employee Status.doc Revised: 06/04/03 Division Workforce Support Services Instrumentation & Electrical Maintenance Engineering & Construction Book Page 25 Page 1 To Bel. of Dir. Item Number PROMOTIONS: 6 Total Name Former Job Title Current Job Title Division Carla Dillon Senior Engineer Engineering Supervisor Environmental Compliance Services Dean Fisher CIP Project Engineering Supervisor Engineering & Construction Manager Dale Henderson Instrumentation Construction Inspector Engineering & Construction Technician II Construction Senior Construction Chuck Lee Inspection Inspection Supervisor Engineering & Construction Supervisor Steve Pelletier Lead Electrical Maintenance Specialist Instrumentation & Electrical Technician Maintenance Ellen Ray Equipment Safety & Health Safety & Health Operator Representative SEPARATIONS: 3 Total Job Title Division Reason Electrical Technician I Instrumentation & Electrical Maintenance Involuntary Separation Sr. Information Technology Analyst Operator-In-Training ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Process Controls Integration Plant No. 1 Operations 1 . October 18, 2005 Employment Status Report Retirement Involuntary Separation 2. FY 2005/06 Staffing Report (year to date performance compared to budgeted FTE's) H:\deptlagenda\FAHRIFAHR200511105105-89.Employee Status.doc Revised: 06104/03 Book Page 26 Page 2 to 0 0 :;,;-- ""1:1 ~ 0 t0 --..I DIV 110 General Management Admin General Management Totals 210 Finance Administration 220 Accounting 230 Contracts, Purch. & Materials MgrT)I Finance Totals 31 0 Public Affairs Administration 320 Board Services 330 Public Information Office 340 Legislative Advocacy & Grants Publlc Affairs Totals 410 Regional Assets & Services Admin 420 Collection Facilities O&M 430 Facilities Maintenance Svcs Regional Assets & Services Totals 510 Human Resources Admin 520, Employee Development/Training 530 Safety & Health 540 Workforce Support Services 550 Employee & Labor Relations Human Resources Totals 610 Technical Services Admin 620 Environmental Assessment 630 Environmental Sciences Lab 640 Source Control 660 Environmental Compliance Svcs Technical Services Totals 710 Engineering Admin 740 Planning 750 Project Management Office 760 Engineering & Construction Engineering Totals 810 O&M Administration 820 O&M Process Engineering 830 Operations, Plant No. 1 840 Operations, Plant No. 2 850 Mech Main! & Power Production 860 Electrical & Instrumentation Main! Operations & Maintenance Totals 910 IT Administration 930 IT Customer & Network Support 940 IT Programming & Database Sys 950 IT Process Controls Integration Information Technology Totals GRAND TOTAL FTEs I AUTHORIZED FTE REG 0.50 0.75 3.00 -- 3.00 . - 2.00 -- 20.00 - - 27.00 0.50 - 49.00 0.50 - 3.00 . . 5.00 0.50 - 6.00 -- 1.00 . - 15.00 0.50 . 8.00 . . 24.00 . - 30.00 . . 62.00 . . 2.00 1.00 - 3.00 . . 8.00 . . 9.00 9.50 - 3.00 0.50 - 25.00 11.00 - 2.00 -- 15.00 -- 36.00 1.00 . 40.00 -- 18.00 . - 111.00 1.00 - 3.00 -- 16.00 -- 15.00 -0.75 64.00 -- 98.00 -0.75 4.00 -- 15.00 0.50 - 41.00 0.50 0.75 47.50 . - 58.00 0.50 - 54.00 0.50 . 219.50 2.00 0.75 3.00 -- 17.00 -- 12.00 -- 13.00 -- 45.00 . . 627.50 15.00 1.50 AUTHORIZED FTE 644.00 EMPLOYMENT STATUS REPORT ACTUAL FTE Recruitments Vacandes TOTAL ~ Q.gQ Q,1§ J,J:M, TOTAL 3.00 3.00 ---3.00 -" 3.00 3.00 -. 3.00 -- 2.00 2.00 ---2.00 - 20.00 18.00 ---18.00 1.00 2.00 27.50 22.00 0.50 -22.50 3.00 5 00 49.50 42.00 0.50 -. 42.50 4.00 7.00 3.00 2.00 --. 2.00 2.00 1 00 5.50 5.00 --0.50 5.50 . - 6.00 5.00 --1.00 6.00 -- 1.00 1.00 --1.00 - 15.50 13.00 -. 1.50 14.50 2.00 1.00 8.00 7.00 -. . 7.00 1.00 I iJO 24.00 23.00 -. 23.00 1.00 I 00 30.00 26.00 --1.00 27.00 1.00 '3.00 62.00 56.00 -. 1.00 57.00 3.00 5.00 3.00 2.00 1.00 --3.00 . 3.00 3.00 --3.00 . 8.00 7.00 ---7.00 1.00 1 00 18.50 5.00 7.00 -12.00 2.50 G 50 3.50 2.00 0.50 --2.50 -i 00 36.00 19.00 8.50 --27.50 3.50 8.50 2.00 2.00 ---2.00 - 15.00 13.00 --2.00 15.00 - 37.00 35.00 2.00 --37.00 - 40.00 40.00 --40.00 - 18.00 18.00 ---18.00 - 112.00 108.00 2.00 -2.00 112.00 -. 3.00 3.00 ---3.00 -- 16.00 16.00 --. 16.00 - 15.75 13.00 -0.75 -13.75 2.00 2 0!) 64.00 53.00 --1.00 54.00 8.00 10.00 98.75 85.00 . 0.75 1.00 86.75 10.00 12.00 4.00 4.00 ---4.00 - 15.50 12.00 0.50 --12.50 4.00 :1.00 42.25 36,00 0.50 0.75 2.00 39.25 3.00 3.00 47.50 46.00 0.50 --46.50 1.00 1 00 58.50 58.00 0.50 -. 58.50 1.00 54.50 49,00 0.50 --49.50 4.00 son 222.25 205.00 2.50 0.75 2.00 210.25 13.00 12.00 3.00 3.00 --3.00 - 17.00 16.00 --1.00 17.00 - 12.00 10.00 --. 10.00 2.00 2 00 13.00 12.00 -. -12.00 1.00 I 00 45.00 41.00 -. 1.00 42.00 3.00 3.00 572.00 13.50 1.50 8.50 1=1 ACTUAL FTE I +I Recruitments I+ ~ {ln~,s rnc11..Hlmc-:-nb~} 595.50 38.50 10.00 Book Page 28 tJ:j 0 0 ;:,;--.,, P> OQ (1) N '-0 700.00 -• • - - II • - - - FEB MAR Authorized FTE 629.00 629.00 Actual FTE 587.50 588.00 Difference** 41.50 41.00 Recruitments 32.00 34.50 Vacancies 9.50 6.50 * Authorized FTE as of July; actual FTE as of June **Difference = Recruitments + Vacancies STAFFING REPORT ~ • • • • • • •--· .l!I-_. • • APR MAY JUN JUL* SEP OCT NOV 629.00 629.00 629.00 644.00 644.00 644.00 644.00 592.00 594.50 601.00 606.00 597.50 595.50 595.50 37.00 34.50 28.00 38.00 46.50 48.50 48.50 30.00 31.00 23.00 20.00 36.50 38.50 38.50 7.00 3.50 5.00 18.00 10.00 10.00 10.00 I ~ Authorized FTE --11--Actual FTE I Book Page 30 FA HR COMM ITTEE AGE NDA RE PORT Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: James Matte, Safety & Health Supervisor Meeting Date To Bd. of Dir. 11/9/05 Item Number Item Number FAHR0S-90 SUBJECT: OSHA INCIDENCE RATES AND WORKERS' COMPENSATION CLAIMS AND COSTS REPORT GENERAL MANAGER'S RECOMMENDATION Receive and file the OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. SUMMARY Safety and Health Division staff track OSHA Incidence Rates for DART (*) Cases (DART Incidence Rate) and Total Accidents (Total Injury Frequency Rate). There were seven DART Cases District-wide for the period of January through September 2005. The industry average is 3.90 for the DART Case Incidence Rate while the District Incident Rate was 1.61 for the period of January through September 2005. There were 12 OSHA Recordable Accidents District-wide for the period of January through September 2005. The industry average is 6.60 for the Total Injury Frequency Rate while the District Incident Rate was 2.76 for the period of January through September 2005. The Division also tracks the District's Workers' Compensation Claims and Costs. The District's claim count for Fiscal Year 2005-2006 is one. The costs associated with these claims for year-to-date is $15,540, which includes medical bills, temporary disability payments, legal costs and a claim reserve account. In addition to the costs connected to the individual claims, the District pays $27,500 per fiscal year to our third party administrator (TPA), Cambridge Integrated Services Group. In addition to the TPA, the District has a purchase order with ProCare Work Injury Center for $5,000. These costs are for first aid cases that are not included in the above numbers. To date, approximately $200 has been expended. * Days Away, Restricted or Transfer PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY N/A Revised: 06/04/03 Book Page 31 Page 1 BUDGET IMPACT a • ~ This item has been budgeted. (Line item: ) This item has been budgeted, but there are insufficient funds. This item has not been budgeted. Not applicable (information item) ADDITIONAL INFORMATION The District had seven DART cases and five other injuries that required only medical treatment for the period of January through September 2005. The reporting period is for 45 days prior to committee meeting. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. OSHA Incidence Rates Reports for DART Cases and Total Injuries 2. Workers' Compensation Claims and Costs Revised: 06/04/03 Book Page 32 Page 2 Workers' Compensation Claims and Costs The Workers' Compensation Claims and Costs are reported by fiscal year. The DART and Total Injury graphs shown above are calendar year rates as required for OSHA recordkeeping. All claims and medical invoices are reviewed by a third party to ensure that proper medical treatment is provided for injured employees and the costs for the treatment are within established guidelines. The medical bills reviewed for July -September 2005 totaled $25,443.93. Medical treatment costs are charged to the fiscal year in which the injury occurred. All open claims have the potential to incur additional costs. After the medical review process, the amount was reduced to $15,884.14, which resulted in savings of $9,559.79 for this reporting period. Workers Compensation Claims and Costs Fiscal Period Claim Count Open Claims Total Incurred 7/1/85 -6/30/86 38 0 $270,794 7/1/86-6/30/87 53 0 $99,933 7/1/87 -6/30/88 51 0 $173,583 7 /1 /88 -6/30/89 41 0 $153,481 7/1/89-6/30/90 61 0 $299,077 7/1/90-6/30/91 76 0 $121,978 7/1/91 -6/30/92 58 1 $222,707 7 /1 /92 -6/30/93 58 0 $93,198 7 /1 /93 -6/30/94 47 0 $218,507 7/1/94-6/30/95 46 0 $276,359 7 /1 /95 -6/30/96 46 1 $191,323 7 /1 /96 -6/30/97 36 0 $370,749 7 /1 /97 -6/30/98 45 1 $821,842 7 /1 /98 -6/30/99 38 2 $290,739 7 /1 /99 -6/30/00 43 2 $352,549 7/1/00-6/30/01 32 2 $404,112 7/1/01 -6/30/02 30 5 $436,800 7 /1 /02 -6/30/03 18 3 $106,658 7 /1 /03 -6/30/04 15 1 $99,318 7 /1 /04 -6/30/05 19 3 $41,778 7 /1 /05 -6/30/06 1 1 YTD $15,540 "Total Incurred" includes medical bills, temporary disability payments to employees, legal costs, and a claim reserve account. Book Page 35 Book Page 36 FAH R COMMITTEE AGE NDA REPORT Orange County Sanitation District FROM: Michael D. White, Controller SUBJECT: FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2005 GENERAL MANAGER'S RECOMMENDATION Meeting Date 11/09/05 Item Number FAHR05-91 Receive and file the FY 2005-06 Financial Report for the First Quarter ended September 30, 2005. SUMMARY To Bel. of Dir. 11/16/05 Item Number Attached in a separately bound document is the District's First Quarter Financial Report for the period ended September 30, 2005. This report is a consolidation of the financial accomplishments of the District through the first quarter of the FY 2005-06. Contained within the First Quarter Financial Report are budget summary reviews of the Collections, Treatment & Disposal Operations, the Capital Improvement Program, the capital facilities and debt service funds, and the self-insurance funds. As indicated within the Overview Section of this report, 22.40 percent, or $25.47 million of the FY 2005-06 net operating budget of $113.69 million has been expended. Net operating expenses increased $3.26 million in comparison with the same period last year. The total cost per million gallons at September 30, 2005 is $1,150.49 based on flows of 22.14 billion gallons, or 240.63 million gallons per day. This is $95.44, or 7.66 percent below the budgeted cost per million gallons of $1,245.93. This underage is primarily due to expenditures being lower than budget by 10.39 percent, or $2.95 million. This expenditure shortfall is somewhat offset by the fact that flows are 3.75 percent lower than the budget estimate of 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A H:\deptlagenda\FAHRIFAHR2005\1105\05-91,Qtrly Financial Rpt.doc Revised: 8/20/98 Book Page 37 Page 1 BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8J Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. FY 2005-06 Financial Report for the Quarter Ended September 30, 2005. H:ldeptlagenda\FAHR\FAHR2005\1105\05-91 .Otrly Financial Apt.doc Revised: 8120/98 BookPage 38 Page2 FAM R COMMI TTEE AGENDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance Originator: Michael D. White, Controller Meeting Date 11/09/05 Item Number FAHR05-92 SUBJECT: SWAP REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file Swap Report for the quarter ended September 30, 2005. SUMMARY To Bel. of Dir. 11/16/05 Item Number In August 2003, the Committee approved an Interest Rate Exchange Agreement Policy that provides guidelines for the use of hedging products including swaps, caps, floors, collars, options, and other similar financial instruments (collectively, "hedging products") in connection with the financial exposure of the District, including interest rate exposure. As required by this policy, following are the quarterly monitoring and reporting requirements and status at September 30, 2005: Requirement Highlight all material changes to hedging product agreements including counterparty downgrades and/or terminations. Results: The District currently utilizes two hedging product agreements, the AIG Swap agreement and the Soc Gen Swap Agreement. The AIG Swap agreement was originally entered into in October 1, 1992 in order to convert the Refunding Certificates of Participation, 1992 Series (the "1992 Certificates") to a fixed rate obligation. There have been no material changes to the agreement. American International Group, lnc.'s current ratings are AAA and Aaa from Standard and Poor's and Moody's, respectively. The Soc Gen Swap Agreement was originally entered into in September 1, 1993, in order to convert the Refunding Certificates of Participation, 1993 Series (the "1993 Certificates) to a fixed rate obligation. There have been no material changes to the agreement. Soc Gen's current ratings are AA-and Aa3 from Standard and Poor's and Moody's, respectively. Requirement Summarize any new hedging products entered into by the District since the last report. Results: No new hedging products have been entered into by the District since the last report covering the period ended June 30, 2005. As stated above, the District utilizes only two hedging product Book Page 39 agreements, the AIG Swap agreement entered into in 1992, and the Soc Gen Swap Agreement, entered into in 1993. Requirement Summarize any planned hedging product transactions and the impact of such transactions on the District; a description of each outstanding Hedging Product agreement, including a summary of its terms and conditions, the notional amount, volume, rates, maturity, the estimated market value of each agreement, the method of procurement (competitive or negotiated), and the full name, description and credit ratings of the agreement's counterparty and if necessary, its applicable guarantor. Results: The District currently is not planning any additional hedging product transactions at this time. Requirement List any amounts which were required to be paid and received, and any amounts which actually were paid and received under each outstanding hedging product over the last quarter; Results: Following are the amounts that were actually paid and received under the District's two swap agreements. All amounts required to be paid and received were actually paid and received. July Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District August Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District September Paid by the District to the Swap Provider Paid by the Swap Provider on behalf of the District Requirement 1992 Certificates AIG Swap $2,782,631.75 $(1,252, 118.78) 1993 Certificates Soc Gen Swap $159,790.00 $ (75,298.27) $141,550.00 $ (71,591.43) $141,550.00 $ (79,970.13) List any credit enhancement, liquidity facility or reserves associated therewith including an accounting of all costs and expenses incurred, whether or not in conjunction with the procurement of credit enhancement or liquidity facilities under each outstanding Hedging Product. Results: Credit Enhancements, liquidity facility or reserves associated with the 1992 Certificates AIG Swap: -Lloyds Bank Standby Purchase Agreement Commitment fees for the quarter ended July 31, 2005: $67,964.96 H:\dept\agenda\FAHRIFAHR2005\1105\05-92.Otrly SWAP Rpt.doc Revised: 06/04/03 Page 2 Book Page 40 Credit Enhancements, liquidity facility or reserves associated with the 1993 Certificates Soc Gen Swap: -Soc Gen Irrevocable Letter of Credit Fee for the six months ended July 31, 2005: $53,083.93 Credit Enhancements, liquidity facility or reserves associated with the 2000 Certificates: -Dexia Public Finance Bank Standby Certificate Purchase Agreement Commitment Fee for the quarter ended July 31, 2005: $71,993.63 Requirement An assessment of the counterparty risk, termination risk, and other risks associated therewith, which shall include the value of the collateral posted by counterparties and the District, the aggregate marked-to-market value for each counterparty and relative exposure compared to other counterparties, and a calculation of the District's Value at Risk for each counterparty. Results: The counter party risk and termination risk has been calculated by Public Resources Advisory Group (PRAG). PRAG used the value at risk methodology in determining the county party risk at maximum exposure over the term of the Swap Agreements. Counterparty exposure limits are important because they create diversification, so if any one counterparty goes bankrupt, the District's total loss would be limited to only one counterparty. The termination risk is what the District would have to pay the counterparty upon a termination of the Swap Agreement. Following are the counterparty risk and termination risk as of September 30, 2005: Counterparty Risk Termination Risk Requirement 1992 Certificates AIG Swap 1993 Certificates Soc Gen Swap $ 734,790 $2,475,888 $ 8,560,086 $2,084,314 The report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. Results: No modifications have been made to the Policy since its adoption. PRIOR COMMITTEE/BOARD ACTIONS N/A H:\dep\\agenda\FAHRIFAHR2005\1105\05·92 Qtrly SWAP Rpt.doc Revised: 06/04/03 Book Page 41 Page 3 PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [8J Not applicable (information item) ADDITIONAL INFORMATION N/A ATTACHMENTS None. H:ldeptlagenda\FAHR\FAHR2005\ 1105105-92.0trly SWAP Apt.doc Revised: 06/04/03 Book Page 42 Page4 PROJECT/CONTRACT COST SUMMARY 1) N/A 2) Costs are negligible, as they pertain only to staff administrative costs such as modification of documents referencing the provider name and communication to employees. BUDGET IMPACT rgj This item has been budgeted D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1) General Counsel Memorandum 2) Resolution OCSD 05-_ 3) Amended Deferred Compensation Plan Document H:ldeptlagenda\FAHRIFAH R2005\ 1105105-93.Deferred Comp.doc Revised: 8/20/01 Book Page 44 Page 2 LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION MEMORANDUM TO: FAHR Committee Members Orange County Sanitation District FROM: General Counsel DATE: October 13, 2005 RE: District's Amended Deferred Compensation Internal Revenue Code Section 457 Plan; Changes Due to December 2004 Internal Revenue Service Notice 2005-5 Regarding The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") The following is a legal opinion regarding what action the Orange County Sanitation District ("OCSD") must take with respect to its 457(b) plan in order to comply with the new requirements imposed by the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") and clarified by the Internal Revenue Service Notice 2005-5. EGTRRA imposed new requirements on qualified retirement plans, including governmental deferred compensation 457(b) plans, that provide for, among other things, "mandatory distributions" of amounts equal to $5,000 or less. (Internal Revenue Code ("IRC") 457(d)(1 )(C)) Pursuant to the new requirements imposed by EGTRRA, mandatory cash-outs of amounts between $1,000 and $5,000 must now be automatically rolled over to an individual retirement plan unless the participant elects otherwise.1 (IRC section 401 (a)(31 )(B)) In order to assist plan sponsors with implementation of the new requirements of EGTRRA, the Internal Revenue Service ("IRS") issued Notice 2005-5. Pursuant to this Notice, the plan sponsor has the option to either implement or avoid the automatic rollover provision. It is our understanding that the Orange County Sanitation District ("OCSD") has chosen to avoid the new automatic rollover requirements by eliminating the mandatory distribution provisions completely. This option is permissible pursuant to IRC section 1.411(d)-4, A-2(b)(2)(v). In order to be in compliance with the new requirements, such provisions must be eliminated prior to December 31, 2005. \209063\2 Prior to the amendment, the IRC permitted tax-qualified retirement plans to distribute plan benefits with a present value of $5,000 or less without receiving the participant's consent to such a distribution. These "mandatory cash-out" distributions were intended to allow plans to avoid the administrative burdens and costs associated with maintaining small plan balances for participants who terminated employment with the plan sponsor and were entitled to receive a distribution from the plan. Book Page 45 FAHR Committee Members Orange County Sanitation District October 13, 2005 Page2 Accordingly, the Orange County Sanitation District Amended Deferred Compensation Plan [2003] ("Plan"), adopted pursuant to Resolution No. OCSD 03-10, has been amended. The changes consist of deletion of section 10.7.3 of the Plan and Section 4 of the Orange County Sanitation District Deferred Compensation Plan Participation Agreement. BR:mrs BRADLEY R. HOGIN GENERAL COUNSEL By:'~ BARBARA RAILEANU cc: Lisa L. Tomko, Director of Human Resources Kim Erickson, Human Resources Assistant Bradley R. Hogin, Esq. \209063\2 Book Page 46 RESOLUTION NO. OCSD 05-_ APPROVING AN AMENDED DEFERRED COMPENSATION PLAN [2005] FOR OFFICERS AND EMPLOYEES OF THE DISTRICT A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT APPROVING THE ORANGE COUNTY SANITATION DISTRICT DEFERRED COMPENSATION PLAN (20051 FOR OFFICERS AND EMPLOYEES OF THE DISTRICT WHEREAS, the Board of Directors has, pursuant to Resolution No. OCSD 98-36, adopted July 1, 1998, adopted a Deferred Compensation Plan, known as the Orange County Sanitation District Deferred Compensation Plan [1998], for eligible Employee Participants (hereinafter referred to as the "Plan"); and WHEREAS, the United States Congress enacted the Economic Growth and Tax Relief Reconciliation Act of 2001 ("2001 Act"), in part amending Internal Revenue Code Section 457 relating to Deferred Compensation Plans; and WHEREAS, the State Legislature has enacted Senate Bill 657 (Chapter 34, 2002 STATS.), amending the California Revenue & Taxation Code to conform to the similar provisions in the Internal Revenue Code Section 457; and WHEREAS, the Board of Directors has, pursuant to Resolution No. OCSD 02-12, adopted July 17, 2002, adopted the First Amendment to the Orange County Sanitation District Deferred Compensation Plan; and WHEREAS, subsequent to adoption of the First Amendment to the Orange County Sanitation District Deferred Compensation Plan, the U.S. Secretary of Treasury, acting through the Internal Revenue Service adopted final regulations implementing amendments to the Internal Revenue Code Section 457; and WHEREAS, the Board of Directors has, pursuant to Resolution No. OCSD 03-10, adopted May 28, 2003, adopted the Amended Deferred Compensation Plan [2003] which incorporates these final regulations which implement amendments to the Internal Revenue Code 457; and WHEREAS, subsequent to the adoption of the Amended Deferred Compensation Plan [2003], the Economic Growth and Tax Rel ief Reconciliation Act of 2001 ("2001 Act") the Internal Review Service provided clarification in December 2004 to the 2001 Act with respect to mandatory distributions of amounts equal to $5,000 or less made pursuant to Internal Revenue Code 457(d)(1 )(C)); WHEREAS, the Board of Directors desires to amend the Plan in order to comply with the clarification provided by the Internal Revenue Service regarding mandatory distributions of amounts equal to $5,000 or less imposed by the "2001 Act." NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: WS&S -#209203:10/12/05 1 Book Page 47 Section 1 : That the Orange County Sanitation District Amended Deferred Compensation Plan [2005], as set forth in Exhibit "A," attached hereto and incorporated herein by reference as though set forth herein at length, is hereby adopted, as the rested and consolidated Deferred Compensation Plan of the District, superseding all previous plans and amendments of the District, and shall remain in effect until amended or terminated by Resolution of the Board of Directors. Section 2: Resolution No. OCSD 02-12 and the adopted Orange County Sanitation District Amended Deferred Compensation Plan [2003] are hereby repealed. PASSED AND ADOPTED at a regular meeting held November 16, 2005. Chair ATTEST: Board Secretary WS&S -#209203:10/12/05 2 Book Page 48 ORANGE COUNTY SANITATION DISTRICT AMENDED DEFERRED COMPENSATION PLAN [2005] ADOPTED NOVEMBER 9, 2005 SECTION 1: Background. The Board of Directors of the Orange County Sanitation District, pursuant to Resolution No. OCSD 98-36, adopted July 1, 1998, has adopted a Deferred Compensation Plan, known as the Orange County Sanitation District Deferred Compensation Plan [1998], for eligible Employee Participants (hereinafter referred to as the "Plan"). U.S. Congress enacted The Economic Growth and Tax Relief Reconciliation Act of 2001 ("2001 Act"), which provided numerous changes to the Internal Revenue Code relating to Deferred Compensation Plans for public agency employees. SECTION 2: Purpose. The primary purpose of the Plan is to attract and retain personnel by permitting them to enter into Plan Participation Agreements which will provide future payments in lieu of current income upon death, disability, retirement, or other termination of employment with the Employer. Neither the Plan, nor any provision of the Plan, shall be construed as either an employment agreement, or a right to be retained by the Employer. The Employer intends that the Plan satisfy the Internal Revenue Code Section 457 requirements for an "eligible deferred compensation plan." However, the Employer does not guarantee any tax benefits due to participation in the Plan, and each Participant should consult his or her own tax representative for information and advice on the tax ramifications of participation in the Plan. SECTION 3: Definitions. For the purposes of this Plan, certain words or phrases used herein will have the following meanings: 3.1 "Applicable Dollar Amount" shall mean the maximum amount of elective deferrals that a Participant in the Employer's Section 457 Plan may defer for the taxable year, as set forth in Section 4.2 (a) and (b). 3.2 "Category A Beneficiary" shall mean any individual designated as the beneficiary by the Participant, either pursuant to the Participation Agreement or pursuant to a later written election filed with the Employer before the death of the Participant. A trust may also be designated as a beneficiary under the Plan. The individual trust beneficiaries (as opposed to the trust itself), who may receive trust distributions on account of payments from the Plan shall be deemed to be the Category A Beneficiaries under the Plan, provided that as of the later of the date that the Participant submits to the Employer the election in which the Trust is named as a beneficiary or the Required Beginning Date, and as of all subsequent periods during which the trust is named as a beneficiary of the Plan, all of the following conditions are met: (1) the trust is a valid trust under State law; (2) the trust is irrevocable; (3) the beneficiaries of the trust can be identified from the_trust instrument; and (4) a copy of the trust instrument has been provided to the Employer. No other 1 Book Page 49 legal entity, such as a charitable foundation or the estate of the Participant, may be a Category A Beneficiary for the purposes of the Plan. As used herein, "Beneficiary" shall refer to either a Category A or Category B Beneficiary. [2003 Plan] 3.3 "Category B Beneficiary" shall mean a beneficiary who is designated by the Participant in either the Participation Agreement or a later written election filed with the Employer before the Participant's death, and who is not a "Category A Beneficiary" within the meaning of Section 3.2 above. (Examples: a trust not meeting the requirements of Section 3.2, a charitable foundation, or the estate of the Participant.) As used herein, "Beneficiary" shall refer to either a Category B or Category A Beneficiary. [2003 Plan] 3.4 "Deferred Compensation" shall mean the amount of compensation not yet earned, which the Participant and the Employer mutually agree shall be deferred in accordance with the provisions of this Plan. 3.5 "Deferred Compensation Investment Fund" shall mean the fund to which all Deferred Compensation is credited, as desc~ibed in Section 6.2. 3.6 "Early Retirement" shall mean a termination of service with the Employer which becomes effective on the first day of the calendar month after the Participant, not yet having attained Normal Retirement Age, meets the minimum age and/or service requirements, tor voluntary retirement, specified in the Retirement Plan. 3.7 "Employee" shall mean any employee who is a director or officer, a permanent, full-time or part-time employee, or an independent contractor acting in the capacity of a consultant to the District tor a continuous and indefinite duration and was a Participant in the Plan on or before January 1 , 2002. [2003 Plan] 3.8 "Employer" shall mean the Orange County Sanitation District, acting as Trustee for purposes of the Plan. [2003 Plan] 3.9 "lncludible Compensation" (a term defined in Internal Revenue Code Section 457(e)(5) and Treasury Regulation Section 1.457-2(e)(2)) shall mean compensation tor services performed tor the Employer which is currently includible in gross income. Accordingly, a Participant's includible compensation for a taxable year does not include any amount payable by the Employer that is excludable from the Participant's gross income under Internal Revenue Code section 457(a) and Treasury Regulation Section 1.457-1 (including but not limited to this Plan), Internal Revenue Code Section 403(b), or other applicable federal income tax laws. The amount of lncludible Compensation shall be determined without regard to any 2 Book Page 50 community property laws. 3.10 "Investment Account" shall mean a book account for the individual Participant, as more fully described in Section 6.3. 3.11 "Late Retirement" shall mean a termination of service with the Employer which becomes effective after the date on which the Participant has both exceeded the Normal Retirement Age and met the service requirements. 3.12 "Maximum Annual Deferral" shall mean the overall maximum annual dollar amount (except for roll-over amounts) that a Participant in the Employer's Section 457 Plan may defer pursuant to Sections 4.2 and 4.3 of the Plan. 3.13 "Normal Retirement" shall mean a termination of service with the Employer which becomes effective on the first day of the calendar month after the Participant attains Normal Retirement Age and meets any service requirements necessary for voluntary retirement, specified in the Retirement Plan. 3.14 "Normal Retirement Age" shall mean the age specified in the Retirement Plan contract between the Employer and the Board of Administration of the Orange County Employees' Retirement System; provided, however, that a Participant who continues to work for the Employer after attaining Normal Retirement Age may elect, for the purposes of Section 4.3 below, an alternate Normal Retirement Age, which may be an age greater than age 70½, but which shall be a date or age not later than either (a) any mandatory retirement age specified by the Employer, or (b) the date or age at which the Participant actually separates from service with the Employer. The Participant shall make any such election by delivering to the Employer, prior to separation from service with the Employer, written notice specifying the chosen alternate Normal Retirement Age. Nothing in this Section 3.14 shall be construed to mean that the Employer has imposed a mandatory retirement age or that the Participant has agreed to retire at a designated age. 3.15 "Participant" shall mean an Employee who has elected to participate in the Plan. 3.16 "Participation Agreement" shall mean the agreement which is executed by the Employee and filed with the Employer in accordance with Section 4, and pursuant to which the Employee elects to become a Participant in the Plan and defers a portion of his income. 3.17 "Plan" shall mean the Orange County Sanitation District Amended Deferred Compensation Plan, as established hereunder. 3 Book Page 51 3.18 "Plan Administrator" or "Administrator" shall mean the District's Director of Human Resources, or such other person designated and appointed by adopted Resolution or Minute Order action of the Board of Directors, as defined in Section 6.1 of the Plan. [2003 Plan] 3.19 "Plan Year" shall mean the calendar year. 3.20 "Qualified Domestic Relations Order (QDRO")" is a judgment, decree, or order (such as an order approving of a property settlement agreement) that (1) relates to the provision of child support, spousal support, or marital property rights to a spouse, former spouse, child, or other dependent of a Participant; and (2) creates or recognizes the existence of an alternate payee's right to receive all or a portion of the Participant's Investment Account. [2003 Plan] 3.21 "Required Beginning Date" shall mean the latest date that distributions are permitted to commence under Section 10.3. 3.22 "Retirement Plan" shall mean the retirement plan of the Orange County Employees' Retirement System, which is governed by the County Employees Retirement Law of 1937 (California Government Code Section 31450 et seq.) and is made available to the employees of the Employer pursuant to contract. 3.23 "Salary" shall mean the full, regular, basic salary which would be paid by the Employer to or for the benefit of the Employee (if he were not a Participant in the Plan) for actual services for the period that he is a Participant. 3.24 "Termination of Service" shall mean the severance, prior to retirement and other than by death, of the Participant's employment with the Employer. For an independent contractor, termination of service shall mean the expiration of the contract (or contracts) under which services are performed for the Employer, provided that the expiration constitutes a good-faith and complete termination of the contractual relationship as defined in Code Section 457 and the Regulations thereunder. [2003 Plan] 3.25 "Unforeseeable Emergency" shall mean a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Internal Revenue Code Section 152(a) of the Participant, loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case. Examples of what are not considered to be Unforeseeable Emergencies include the need to send a Participant's child to college or the 4 Book Page 52 4.1 4.2 desire to purchase a home. SECTION 4: Pa rticipation in the Plan. Any Employee designated by the Employer to be eligible may elect to become a Participant in the Plan by executing and filing a Participation Agreement with the Employer. An election to participate in the Plan and to defer compensation under the Plan shall become effective with respect to compensation earned by the Participant during the period commencing with the beginning date of the first pay period in the month following the month in which the Employer consents to and approves of the Participation Agreement. Such Participation Agreement and election to defer compensation shall continue thereafter in full force and effect unless and until terminated by the Participant as provided in Section 4.4, Section 10.4 or Section 11. Each Participation Agreement shall specify the amount of compensation, either by dollar amount or by percentage of Salary, which is to be deferred pursuant to the Plan and to be withheld out of the Salary otherwise payable to the Participant for each pay period. The amount deferred each year may not exceed the lesser of: (a) The "applicable dollar amount" determined in accordance with the following table: Taxable Year Applicable Dollar Amount 2002 $11,000 2003 $12,000 2004 $13,000 2005 $14,000 2006 or thereafter $15,000 [2003 Plan] 1 (b) One Hundred Percent (100%) of the Participant's lncludible Compensation, or (c) Be less than Three Hundred Dollars ($300.00) each year. This Three Hundred Dollar ($300.00) limitation shall not be applied to any Participant 1 Cost-of-Living adjustments: In the case of taxable years beginning after December 31,2006, the Secretary [of the Treasury] shall adjust the $15,000 amount (A) at the same time and in the same manner as under Internal Revenue Code Section 415(d), except that the base period shall be the calendar quarter beginning July 1, 2005, and any increase under this section which is not a multiple of $500 shall be rounded to the next lowest multiple of $500. [2001 Amendment] 5 Book Page 53 who is paid less than $1,200.00 per year for services rendered to the Employer. 4.3 Notwithstanding the provisions of Section 4.2 herein, during any or all of the last three (3) taxable years ending before a Participant attains Normal Retirement Age ( or the alternate Normal Retirement Age chosen pursuant to Section 3.14 above, the maximum amount which may be deferred annually shall be the lesser of: (a) Twice the dollar amount in effect in Subsection 4.2(a) for the taxable year; [2003 Plan] or (b) The sum of: (i) The maximum deferral amount established for the purposes of Section 4.2 for the taxable year ( determined without regard to this Section 4.3), plus (ii) The maximum deferral amount established in Section 4.2 for any prior taxable year or years, less the amount of compensation deferred under the Plan, for such prior taxable year or years, pursuant to either Section 4.2 or this Section 4.3. A prior taxable year shall be taken into account under subdivision (ii) only if: (a) it begins after December 31, 1978; (b) the Participant was eligible to participate in the Plan during all or any portion of the taxable year; and (c) compensation deferred (if any) under the Plan during the taxable year was subject to the maximum deferral amount under Section 4.2 herein. A Participant will be considered to have been eligible to participate in the Plan for a taxable year if the Participant was an Employee for any part of that taxable year. A prior taxable year includes a taxable year in which the Participant was eligible to participate in an Internal Revenue Code section 457 eligible deferred compensation plan sponsored by an entity other than the Employer, provided that such other entity is located in the State of California. 4.4 A Participant may terminate his election to defer compensation under the Plan by executing and filing with the Employer a written notice at least thirty (30) days prior to the effective date of termination. In the event a Participant ceases to qualify under Section 3 hereof as a Participant, his election to defer compensation shall automatically terminate on the same date as he becomes ineligible. A Participant (including a former Participant who is again eligible to participate) may not resume the deferral of compensation during the calendar month in which termination occurred; however, he may elect to resume the deferral of compensation in subsequent calendar months after a lapse of not 6 BookPage 54 less than three (3) months. No amounts shall be payable to an Employee upon the termination of deferral of compensation, unless otherwise provided for in either Section 10 or Section 11 . 4.5 A Participant may change the amount of compensation to be deferred in a subsequent calendar month by executing and filing notice with the Employer at least thirty (30) days prior to the beginning of such month; provided, however, that such change may be made not more than four (4) times in a calendar year. 4.6 In applying the provisions of this Section 4, amounts deferred shall be taken into account at present value in the Plan Year in which deferred. 4.7 For any taxable year that a Participant has a period of qualified military service as described in Section 414(u)(2)(A) of the Internal Revenue Code, the Participant may, over the period described in Section 414(u)(2)(A)(i) of the Code defer the amount that he or she could have deferred during any such period of qualified military service, had the Participant performed services for the Employer and received includable compensation from the Employer during such period as described in Section 414(u)(7) of the Code based on the rate of compensation the Participant would have received from the Employer, but for the period of military service, to the extent required by and in accordance with the Uniformed Services Employment and Re- employment Rights Act of 1994. [2003 Plan] 4.8 Notwithstanding the provision of Section 4.2 herein, all Participants who are eligible to make elective deferrals under this Plan and who have attained age 50 before the close of the year shall be eligible to make catch-up contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code. Such catch-up contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Sections 402(g) and 415 of the Code. These catch up contributions shall only be available in years in which the catch-up contribution, pursuant to this Section, exceeds the amount permitted to be contributed pursuant to Section 4.3. [2003 Plan] 4.9 To the extent required by Treasury Regulations, in the event that a Participant defers more than the maximum amount permitted under Sections 4.2, 4.3, and 4.8 of this Plan, such excess amounts ("Excess Deferrals") will be distributed to the Participant, with allocable net income, as soon as administratively practicable after the Plan determines that the amount is an Excess Deferral. [2003 Plan] SECTION 5: Deferral of Compensation. During the period of participation, the Employer shall not pay the Participant his full Salary, but shall defer payment of such part 7 Book Page 55 of his Salary as is specified by the Participant in the Participation Agreement, which has been executed and filed with the Employer. 6.1 SECTION 6: Administration of the Plan. The Employer shall, by Resolution of its Board of Directors, appoint a person or persons to act as the Administrator of the Plan (the "Administrator"). The Administrator shall have full authority and power to adopt the rules and regulations for the administration of the Plan, and to interpret, amend, alter, and revoke any rules and regulations so adopted. The actions of the Employer and of the Administrator, with respect to the Plan, and the administration of the Plan, shall be presumed to be fair, reasonable, and impartial, and the Employer and the Administrator shall be deemed to have exercised reasonable care, diligence, and prudence, unless the contrary is proven by affirmative evidence. The Administrator, pursuant to a delegation from the Employer, shall have authority to control and manage the operation and administration of the Plan. The Administrator shall have all powers necessary to exercise its authority and discharge its responsibilities, including, but not by way of limitation, the following: (a) To construe and interpret the Plan and determine all questions relating to the eligibility of employees to participate; (b) To maintain all necessary records for the administration of the Plan other than those maintained by third parties; ( c) To compute and certify the amount and kind of benefits payable to Participants and Beneficiaries; (d) To authorize and direct all disbursements and distributions from the Trust; (e) To make and publish such rules for the regulation of the_Plan as not inconsistent with the terms hereof; (f) To employ one or more persons to render advice with regard to any responsibility any fiduciary has under the Plan; (g) To prescribe administrative policies and procedures; (h) To receive from the Employer and the Employee such information and prescribe the use of such forms as shall be necessary for the proper administration of the Plan; (i) To prepare and distribute, in such manner as the Administrator 8 Book Page 56 determines to be appropriate, information explaining the Plan; (j) To furnish the Employer, upon request, such annual reports with respect to the administration of the Plan as are reasonable and appropriate; (k) To receive and review reports of the financial condition and of the receipts and disbursements of the Trust; (I) To delegate any duty or power; (m) To appoint or employ for the Plan any agents it deems advisable, including but not limited to, brokers, investment advisors, accountants, or legal and actuarial counsel, to assist the Administrator in discharging its duties hereunder; (n) To administer a Participant Loan Program as provided in Section 12.5 of the Plan; (o) To exercise any power delegated to it by the Trustee pursuant to Section 8.2 of the Plan; and (p) To appoint or employ an independent certified public accountant to prepare reports of the Plan, as required by law, and for general audit purposes. [2003 Plan] 6.2 The Employer shall establish a Deferred Compensation Investment Fund to which all Deferred Compensation shall be credited at such times as the amounts deferred would have been payable to the individual Employee if he were not a Participant in the Plan. 6.3 The Employer shall maintain a book account (the "Investment Account") for each Participant, to which shall be credited the Deferred Compensation of the individual Participant. The Participant's Investment Account shall be credited with the earnings thereof, if any, and shall be credited or debited, as the case may be, with the net amount of any gains or losses which may result from the investment of all or any portion of the amount in the Participant's Investment Account. The Employer, its directors, officers and employees, shall not be liable for any losses on any investment credited to any Investment Account. On a quarterly basis, the Employer shall credit the earnings and/or gains and debit the losses on each Investment Account. Such credits and debits shall be made, and the final quarterly balance of the Investment Account shall be posted, as of the last day of each quarter. 9 BookPage 57 6.4 All administrative expenses with respect to the Plan, including but not limited to, legal and consulting fees, audit fees, insurance and trustees fees, if any, may, in the discretion of the Employer, be charged to and deducted from the Trust Fund. Notwithstanding the lack of a provision specifically providing for the charging of an expense incurred by the Plan or Trust with respect to a Participant, all expenses incurred by the Plan or Trust with respect to a Participant may be recovered from such Participant or such Participant's Account in accordance with the procedures established by the Administrator. [2003 Plan] SECTION 7: Return of Contributions. If an Employer contribution is made by virtue of a mistake of fact, Paragraph 9 shall not prohibit the return of such contribution to the Employer within one (1) year after the payment of the contribution. [2003 Plan] SECTION 8: Declaration of Trust. 8.1 Notwithstanding the provisions of Section 6, all Deferred Compensation credited to the Deferred Compensation Investment Fund, all property and rights purchased with amounts credited to the Deferred Compensation Investment Fund, and all income attributable to such amounts, property, or rights (collectively, the "Trust Estate") shall be held, by the Employer as trustee, in trust for the exclusive benefit of the Participants and their beneficiaries, per the terms and conditions of Section 8.2 below. Except as provided in Section 7, no portion of the Trust Estate shall revert to the Employer or be used or diverted to purposes other than the exclusive benefit of the Participants and their beneficiaries. 8.2 The Employer shall be the Trustee. As Trustee, and in accordance with applicable law, the Employer, (or if the Employer delegates these functions to the Administrator, the Administrator) [2003 Plan]: (a) shall have the power to invest and reinvest the Trust Estate in all assets permitted under Government Code Section 53609; (b) shall have the power to retain in cash, without obligation for interest, such portion of the Trust Estate as it may deem (i) advisable to meet Plan obligations, or (ii) to be in the best interests of the Plan ; (c) shall have the power to retain, manage, operate, administer and otherwise deal with the Trust Estate in such manner as it deems appropriate; 10 Book Page 58 ( d) shall have the power to transfer, sell, exchange, redeem and dispose of the assets of the Trust Estate, in any manner and at any time, by private or public sale or otherwise; (e) shall have the power, with respect to the assets of the Trust Estate, to exercise all the rights of an individual owner, including, but not limited to, the power to give proxies, to participate in any voting trusts, mergers, consolidations or liquidations, and to exercise or sell stock subscriptions or conversion rights; (f) shall have the power to hold, authorize the holding of, and register any assets of the Trust Estate in any manner permitted by law; (g) shall have the power, in its discretion, to compromise, contest (whether through legal proceedings or otherwise), arbitrate, or abandon claims and demands on behalf of the Trust Estate and/or the Plan, and to commence, maintain or defend the Trust Estate and/or the Plan in suits or legal proceedings; (h) shall have the power to employ brokers, consultants, accountants, depositories, agents and legal counsel on behalf of the Trust Estate and/or the Plan; (i) shall have the power to open, maintain and close any bank account(s), in any federally insured financial institution permitted by law, in the name of the Plan, the Employer or, to the extent permitted by law, any nominee or agent of the Plan or the Employer; (j) shall have the power to charge to, and pay from, the Trust Estate: (i) any taxes levied or assessed upon or in respect to the assets of the Trust Estate, (ii) any commissions and similar expenses with respect to the assets of the Trust Estate, (iii) the reasonable compensation of any third-party manager or administrator utilized by the Employer in the management or administration of the Trust Estate and/or the Plan, and (iv) the reasonable expenses of such third-party manager or administrator or the Employer incurred in connection with Trust Estate and/or Plan management or administration (including, but not limited to, legal, accounting, investment and custodial services); (k) shall pay benefits to Plan Participants and their beneficiaries, in cash or in kind or partly in each, in accordance with the terms hereof; (I) shall have the power: (i) to retain any funds or property subject to any dispute, without liability to pay interest, (ii) to decline to make payment or delivery of the funds or property until final adjudication of the 11 Book Page 59 dispute is made by a court of competent jurisdiction, and (iii) to charge an Investment Account with the Employee's legal expenses and costs incurred due to a dispute concerning that Investment Account; (m) shall have the power to make Participant loans, as described in Section 12.5; (n) shall administer the Plan and the Trust Estate as described in Section 6 and this Section 8; (o) shall have the discretion: (i) to make limited investment options available to the Participant and to change those investment options from time to time, (ii) to eliminate an investment option, even if all or a portion of a Participant's Investment Account is already invested therein, with the result that such amount must be reinvested in another, permitted, investment), and (iii) to invest the amounts in a Participant's Investment Account either as requested by the Participant, or as otherwise determined by the Employer; (p) shall not be required to invest the amounts in the Trust Estate; however, it is the Employer's intent to invest and reinvest such amounts in a manner intended to increase the same, and the net interest, accumulation and increments thereon shall be credited to, and held in, the Trust Estate for the exclusive benefit of the Participants and their beneficiaries; the Employer shall not be responsible for any loss due to the investment or failure of investment of such assets; nor shall the Employer be required to replace any loss whatsoever which may result from said investments; and ( q) shall have the power to make, execute, acknowledge and deliver any and all instruments necessary or proper for the accomplishment of, and to do any and all other acts that it may deem necessary or appropriate to carry out, the foregoing powers. 8.3 If the Administrator permits Participants and Beneficiaries to direct the selection of investments with respect to his/her own accounts pursuant to Section 8.2(o), then the Participant or Beneficiary shall be solely responsible for the results of the investment of their account and the Administrator and the Trustee shall be relieved of liability for such investments. No action of the Employer or Administrator shall be considered an endorsement or guarantee of any investment or fund, and neither the Employer nor the Administrator shall be treated as having guaranteed the Participant's accounts or investments, or any part thereof, against loss or depreciation nor promise any results. Neither the Employer nor its Directors or agents or 12 Book Page 60 employees, shall be liable to any Participant or Beneficiary for any results or losses from any investments election directed by such Participant or Beneficiary, and all Participants and Beneficiaries shall hold the Employer, its Directors, agents, and employees harmless from any costs, liabilities, or losses arising from such investment choices. [2003 Plan] 8.4 The Employer may permit Participants and Beneficiaries to elect to invest all or a portion of their accounts in one or more life insurance contracts, provided that such Participant or Beneficiary shall be solely responsible for such decision. Further, as a condition to permitting such investment, the Administrator may require that any Participant or Beneficiary who chooses to invest in life insurance must separately agree in writing to hold the Employer, its Directors, agents, and employees, harmless from any costs, liabilities, or losses arising from investment in life insurance contracts. [2003 Plan] SECTION 9: Plan Benefits. Deferred Compensation benefits are payable on the happening of any of the following events: (a) Early Retirement of a Participant; (b) Normal Retirement of a Participant; (c) Late Retirement of a Participant; (d) Termination of Service of a Participant; or (e) Death of a Participant who dies either before or after Deferred Compensation payments commence, and before the entire amount of his Investment Account is paid. SECTION 10: Distribution of Benefits. 10.1 Termination of Employment by Retirement. The Participant is eligible to receive distributions of benefits, with respect to retirement, after the Participant has met the requirements for Normal Retirement and has retired from service with the Employer. The Participant may submit to the Employer an application for distribution of benefits under the Plan as early as the date he notifies the Employer of his intended retirement and as late as thirty (30) days following the actual date of termination of employment due to retirement. Pursuant to such application, the Participant shall elect one of the benefits described below, expressed in terms of both payment option and commencement date option. Notwithstanding anything to the contrary in this 13 Book Page 61 Plan, effective as of January 1, 2002, Participants who have made payment elections, may revoke existing payment elections and make new elections or elect to defer all remaining benefits, provided that any such new election or deferral must meet the requirements of Section 10.7.4 and Section 401 (a)(9) of the Code and the regulations thereunder. There shall be no limit on the number of times that a Participant may revoke or modify an existing election to receive installment payments. [2003 Plan] 10.1.1 Options. Following the Participant's termination of employment due to retirement and the receipt of such application, the Employer shall pay to the Participant one of the following benefits (expressed in terms of both payment option and commencement date option) as elected by the Participant: A. PAYMENT OPTION - (1) Options: (a) Consecutive regular payments paid no less frequently than annually (i.e., monthly, quarterly, or annually)_ over a period certain, as determined by the Participant; provided, however, that any such period certain may not extend beyond the life expectancy of the Participant or the joint life and last survivor expectancy of the Participant and the Participant's Category A Beneficiary. (b) Consecutive regular payments paid no less frequently than annually (i.e., monthly, quarterly, or annually) for the life of the Participant or for the lives of the Participant and his Category A Beneficiary. (c) Annuity payments pursuant to an annuity that is offered by a Plan provider providing services to the Employer and that is structured so as to comply with all applicable provisions of the Internal Revenue Code, the Treasury Regulations and all other applicable laws. ( d) A single payment equal to the balance of the Participant's Investment Account. ( e) A single lump-sum payment in an amount to be determined by the Participant, with the remainder of the Participant's Investment Account to be paid under 14 Book Page 62 payment option (a), payment option (b), or payment option (c) above. (2) Modified or Delayed Election: In years prior to January 1, 2002, the Participant may modify his payment option election at any time until the date which is thirty (30) days before the commencement date as finally determined pursuant to Subsection 10.1.1, 10.1.2, or 10.1.3, as applicable (the "Final Commencement Date"). Or, the Participant may choose to defer making a payment option election altogether, until a date as late as thirty (30) days before the Final Commencement Date. In years prior to January 1, 2002, thirty (30) days before the Final Commencement Date, the most recent payment option election on file with the Employer shall become irrevocable. If there is no payment option election on file with the Employer at that time, the Employer shall pay the sum in the Participant's Investment Account to the Participant in consecutive regular monthly payments beginning on the Final Commencement Date and continuing for the life of the Participant. [2003 Plan] B. COMMENCEMENT DATE OPTION - (a) The date which is thirty (30) days following termination of employment due to retirement, or (b) A later date which is the first day of a calendar month. In the case of payment option (e) above, the lump sum must be paid on the same date that the first payment over time is paid. In the case of payment option (e) above, the lump sum must be paid on the same date that the first payment over time is paid. C. LIMITATIONS - The foregoing options are limited by, and these payments shall be made subject to, the provisions of Sections 10.3, 10.5, 10.6 and 10.7 hereof. The total amount of any benefits paid pursuant to payment options (a) through (e) above shall not exceed the sum of the amounts deferred by the Participant, as adjusted for any earnings or losses thereon. 10.1.2 Default Election. 15 Book Page 63 Should the Participant fail to elect one of the benefits hereunder by way of an application for retirement benefits filed with the Employer no later than fifteen ( 15) days after retirement, the Employer shall pay the sum in the Participant's Investment Account according to the "Benefit A" election previously made pursuant to either the Participation Agreement or a modification thereof. However, if there is no such previous election, then the Employer shall pay the sum in the Participant's Investment Account to the Participant in consecutive, regular monthly payments, beginning on the Required Beginning Date and continuing for the life of the Participant. 10.1.3 One-Time Change in Commencement Date Election. For distributions made on or after January 1 , 1997, and prior to January 1, 2002, notwithstanding anything to the contrary in this Section 10.1 , the Participant may, at any time more than thirty (30) days after termination of employment due to retirement, and at least thirty (30) days before the scheduled commencement date, pursuant to either Subsection 10.1.1 or the Benefit "A" election on file with the Employer as of the date of retirement, elect to further defer the commencement date, to a date later than that previously elected (but not later than the Required Beginning Date). The Participant may exercise his or her right, under this Subsection 10.1 .3, to file a changed commencement date election only once. 10.2 Termination of Employment Prior to Retirement. Following the Termination of Service of a Participant, the Employer shall pay to the Participant the benefit elected by the Participant pursuant to either (a) "Benefit B" of the Participation Agreement submitted by the Participant at the time of election to participate in the Plan or (b) a later written election delivered to the Employer no later than thirty (30) days following Termination of Service. Except as otherwise provided in Subsection 10.2.3 below, the commencement date portion of the latest such election filed with the Employer shall become irrevocable upon the lapse of the thirtieth (30th) day following Termination of Service. 10.2.1 Options. A. PAYMENT OPTION - (1) Options: (a) Consecutive regular payments paid no less frequently than annually (i.e., monthly, quarterly, or annually) over 16 Book Page 64 a period certain, as determined by the Participant; provided, however, that any such period may not extend beyond the life expectancy of the Participant or the joint life and last survivor expectancy of the Participant and the Participant's Category A Beneficiary. (b) Consecutive regular payments paid no less frequently than annually (i.e., monthly, quarterly, or annually)_ for the life of the Participant or for the lives of the Participant and his Category A Beneficiary. (c) Annuity payments pursuant to an annuity that is offered by a Plan provider providing services to the Employer and that is structured so as to comply with all applicable provisions of the Internal Revenue Code, the Treasury Regulations and all other applicable laws. ( d) A single payment equal to the balance of the Participant's Investment Account. (e) A single lump-sum payment in an amount to be determined by the Participant, with the remainder of the Participant's Investment Account to be paid under payment option (a), payment option (b), or payment option (c) above. (2) Modified or Delayed Election: The Participant may modify his payment option election at any time until the date which is thirty (30) days before the commencement date as finally determined pursuant to Subsection 10.2.1, 10.2.2, or 10.2.3, as applicable (the "Final Commencement Date"). Or, the Participant may choose to defer making a payment option election altogether, until a date as late as thirty (30) days before the Final Commencement Date. Thirty (30) days before the Final Commencement Date, the most recent payment option election on file with the Employer shall become irrevocable. If there is no payment option election on file with the Employer at that time, the Employer shall pay the sum in the Participant's Investment Account to the Participant in consecutive, regular monthly payments, beginning on the Final Commencement Date and continuing for the life of the Participant. Effective for Terminations of Service occurring on or after January 1, 2003, should the Participant fail to make an election hereunder no 17 Book Page 65 later than thirty (30) days after Termination of Service, then the Participant shall be deemed to have elected to defer commencement of distributions until the earlier of ( a) the date that the Participant elects to receive distributions; or (b) the date that distributions are otherwise required by the provisions of this Plan under Section 401 (a)(9) of the Code and the regulations thereunder, in which case, payment shall be made as required in Section 10.7.4. [2003 Plan] B. COMMENCEMENT DATE OPTION - (a) The date which is forty-five (45) days following Termination of Service; or (b) A later date which is the first day of a calendar month. In the case of payment option (e) above, the lump sum must be paid on the same date that the first payment over time is paid. C. LIMITATIONS - The foregoing options are limited by, and these payments shall be made subject to, the provisions of Sections 10.3, 10.5, 10.6 and 10.7 hereof. The total amount of any benefits paid pursuant to payment options (a) through (e) above shall not exceed the sum of the amounts deferred by the Participant, as adjusted for any earnings or losses thereon. 10.2.2 Default Election. Should the Participant fail to elect one of the benefits hereunder either pursuant to the "Benefit B" provisions of the Participation Agreement or pursuant to a subsequent written election delivered to the Employer no later than thirty (30) days after Termination of Service, then the Employer shall pay the total amount in the Participant's Investment Account to the Participant in consecutive, regular monthly payments, beginning on the date which is forty-five (45) days following Termination of Service and continuing over the life of the Participant. Effective for Terminations of Service occurring on or after January 1, 2003, should the Participant fail to elect one of the benefits hereunder either pursuant to the Benefit "B" provisions of the Participation Agreement or pursuant to a subsequent written election delivered to the Employer no later than thirty (30) days after Termination of Service, then the Participant shall be deemed to have elected to defer commencement of distributions until the earlier of (a) the date that the 18 Book Page 66 Participant elects to receive distributions; or (b) the date that distributions are otherwise required by the provisions of this Plan under Section 401 (a)(9) of the Code and the regulations thereunder in which case payments shall be made as required in Section 10.7.4. [2003 Plan] 10.2.3 One-Time Change in Commencement Date Election. Effective for Termination of Service on or after January 1, 1997 and prior to January 1, 2002 [2003 Plan] and notwithstanding_ anything to the contrary in this Section 10.2, the Participant may, at any time more than forty-five (45) days following Termination of Service occurs, and at least thirty (30) days before the scheduled commencement date, pursuant to either Subsection 10.2.1 or the Benefit "B" election on file with the Employer as of the date of Termination of Service, elect to further defer the commencement date, to a date later than that previously elected (but not later than the Required Beginning Date). The Participant may exercise his or her right, under this Subsection 10.2.3, to file a changed commencement date election only once. 10.3 Required Distributions. Notwithstanding any other provision of the Plan: (a) Payments under Sections 10.1 and 10.2 shall begin no later than the later of: (i) April 1 of the calendar year following the calendar year in which the Employee attains age 70-1/2; or (ii) April 1 of the calendar year following the calendar year in which the Employee retires; (b) With respect to distributions under the Plan made on or after January 1, 2001, the Plan will apply the requirements of Section 401 (a)(9) of the Code in accordance with the proposed regulations under Section 401 (a)(9) that were issued in 2002 and with respect to distributions under the Plan made on or after January 1, 2002, the Plan will apply the requirements of Section 401 (a)(9) of the Code in accordance with the final regulations under Section 401 (a)(9) that were issued in 2002, and as may be subsequently amended. [2003 Plan] 10.4 Acceleration of Payment of Small Investment Accounts. Notwithstanding the provisions of Sections 10.1 and 10.2 above, a Participant may elect to receive the full balance of his or her Investment Account at any time, but only on the following conditions: (a) the balance of the Investment Account does not exceed the maximum amount permitted under Internal Revenue Code section 457(e)(9) (or a successor provision) at the time of the withdrawal; (b) no amount has been deferred under the Plan with respect to the 19 Book Page 67 Participant during the two-year period ending on the date of the distribution; and (c) there has been no prior distribution to the Participant under this Section 10.4 (i.e., the acceleration right can be exercised only once). Any distribution under this Section 10.4 shall be deemed a termination of participation in the Plan. The (former) Participant may re-elect to participate in the Plan, pursuant to Section 4.1, after a lapse of at least three (3) months after the date of distribution under this Section 10.4. 10.5 Lifetime Distribution Requirements. The distributions under this Plan must be made primarily for the benefit of the Participant and the schedule elected by the Participant for payment of benefits under Sections 10.1 and 10.2 of the Plan must be such that benefits payable to a beneficiary are not more than incidental, according to the applicable Treasury Regulations. Payments under those sections shall be distributed over the life of the Participant or over the lives of the Participant and a Category A Beneficiary (or over a period not extending beyond the life expectancy of the Participant or the joint life and last survivor expectancy of the Participant and a Category A Beneficiary), in accordance with the Treasury Regulations under Internal Revenue Code Section 401 (a)(9}. 10.6 In addition, as required by Internal Revenue Code section 401 (a)(9)(G), and except as otherwise provided in Section 10.7 below, all distributions shall be made in accordance with the incidental death benefit requirements of Internal Revenue Code section 401 (a). As more fully described in the applicable Treasury Regulations, as promulgated pursuant to the authority of Internal Revenue Code section 401 (a)(9), this means that distributions must be made in accordance with a certain formula designed to ensure that the entire Investment Account of the Participant is distributed over a period of time not to exceed the joint life and last survivor expectancy of the Participant and a Category A Beneficiary who is not more than ten years younger than the Participant. Death of Participant. In the event of the death of the Participant, either before or after termination of employment (by retirement or otherwise), and before the entire amount of his Investment Account has been distributed, the Employer shall distribute the amount then remaining in the Participant's Investment Account pursuant to Subsections 10.6.1 through 10.6.3 below. 10.6.1 When Participant Dies on or after the Required Beginning Date and after Distributions Have Begun. If distributions have already begun during a Participant's lifetime, and the Participant dies on or after the Required Beginning Date and before the entire amount of his 20 Book Page 68 Investment Account has been distributed, then the remaining portion of the Participant's Investment Account shall be distributed, as elected by the Participant, pursuant to either the "Benefit C" provisions of the Participation Agreement or a later written election delivered to the Employer before the death of the Participant, unless the Participant's election would permit distributions to be made less rapidly after death than under the method of distribution being used as of the date of death. In order to comply with Internal Revenue Code Section 401 (a)(9), distributions (under this Subsection 10.6.1) after death must be made at least as rapidly as under the method of distribution being used as of the date of death. 10.6.2 When Participant Dies either before the Required Beginning Date or before Distributions Have Begun. If a Participant dies either before the Required Beginning Date or before distribution of his Investment Account has begun, and, if any portion of the Investment Account is payable to (or for the benefit of) a Category A or B Beneficiary, then the Employer shall pay such portion as follows: A. CATEGORY A BENEFICIARIES- (1) Category A Beneficiary Other than Surviving Spouse: If the Category A Beneficiary is other than the surviving spouse, the portion of the Investment Account payable to such beneficiary shall be distributed according to one of the following options, expressed in terms of both payment option and commencement date option: PAYMENT OPTION: (a) consecutive regular payments paid no less frequently than annually (i.e., monthly, quarterly, or annually) over a period not to exceed the shorter of fifteen ( 15) years or the life expectancy of the Category A Beneficiary; (b) annuity payments pursuant to an annuity that is offered by a Plan provider providing services to the Employer and that is structured so as to comply with all applicable provisions of the Internal Revenue Code, the Treasury 21 Book Page 69 Regulations and all other applicable laws; (c) a single lump-sum payment; or ( d) a single lump-sum payment, in an amount to be determined by the Participant, with the remainder of the Participant's Investment Account to be paid under either payment option (a) or payment option (b) above. COMMENCEMENT DATE OPTION: Such distributions shall begin on the date designated by either the Participant or, if permitted by the Participant, the Category A Beneficiary, but in no event later than December 31 of the calendar year immediately following the calendar year in which the Participant dies. If the Category A Beneficiary submits a permitted benefits election, the election must be filed with the Employer within forty-five (45) days after the Participant's death, and the earliest commencement date shall be the date which is sixty (60) days following the date of death of the Participant. If payment is made under payment option (d) above, the lump sum must be paid on the same date that the first payment over time is paid. (2) Surviving Spouse: If the Category A Beneficiary is the surviving spouse of the Participant, the portion of the Investment Account payable to the surviving spouse shall be distributed according to one of the following options, expressed in terms of both payment option and commencement date option : PAYMENT OPTION: (a) consecutive regular payments paid no less frequently than annually (i.e., monthly, quarterly, or annually)_ over a period not to extend beyond the life expectancy of the surviving spouse; (b) annuity payments pursuant to an annuity that is offered by a Plan provider providing services to the Employer and that is structured so as to comply with all applicable provisions of the 22 Book Page 70 Internal Revenue Code, the Treasury Regulations and all other applicable laws; (c) a single lump-sum payment; or ( d) a single lump-sum payment, in an amount to be determined by the Participant, with the remainder of the Participant's Investment Account to be paid under either payment option (a) or payment option (b) above. COMMENCEMENT DATE OPTION: 3) Such distributions shall begin on the date designated by either the Participant or, if permitted by the Participant, the surviving spouse, but in no event later than the later of (i) December 31 of the calendar year immediately following the calendar year in which the Participant dies, and (ii) December 31 of the calendar year in which the Participant would have attained age 70½. Notwithstanding the foregoing, however, if as of the date of the Participant's death, both the surviving spouse and another are Category A Beneficiaries, then distributions shall begin on or before December 31 of the calendar year immediately following the calendar year in which the Participant dies. If the surviving spouse submits a permitted benefits election, the election must be filed with the Employer within forty-five (45) days after the Participant's death, and the earliest commencement date shall be the date which is sixty (60) days following the date of death of the Participant . If payment is made under payment option (d) above, the lump sum must be paid on the same date that the first payment over time is paid. Elections: PARTICIPANT'S ELECTION: All elections ( as to both payment option and commencement date) to be made under this Subsection 10.6.2 shall be made by the Participant pursuant to either the "Benefit C" provisions of the Participation Agreement or a later written election delivered to the 23 Book Page 71 (4) Employer before the death of the Participant. Notwithstanding the foregoing, however, the Participant, in the Participation Agreement or such later written election, may specify that, following the death of the Participant, the Category A Beneficiary may elect, subject to the foregoing limitations, the form of payments and the commencement date of distributions. BENEFICIARY'S ELECTION: Any permitted beneficiary election must be in the form of a written election filed with the Employer no later than forty-five (45) days following the date of death of the Participant. In the absence of any such timely election, the portion of the Investment Account payable to such Category A Beneficiary shall be distributed to him or her in consecutive, regular monthly payments beginning on the date which is sixty (60) days following the date of death of the Participant. occurs and continuing (i) for fifteen (15) years, if the Category A Beneficiary is other than the surviving spouse; or (ii) for the life of the surviving spouse, if the Category A Beneficiary is the surviving spouse. The commencement date portion of the Beneficiary's election shall become irrevocable on the date forty-five (45) days after the Participant's death. However, the Beneficiary may modify his payment option election up to thirty (30) days before the previously elected commencement date. Death of a Category A Beneficiary: If a Category A Beneficiary dies within six months of the date of the Participant's death and before the entire portion of the Investment Account allocated to him has been paid pursuant to this Subsection 10.6.2, then the remainder of such portion shall be paid to the contingent beneficiary, if any, designated by the Participant in either the Participation Agreement or a later written election delivered to the Employer before the Participant's death. If there is no such contingent beneficiary, or if the Category A Beneficiary dies more than six months after the date of the Participant's death and before the entire portion of the Investment Account allocated to him has been paid pursuant to this Subsection 10.6.2, then the remainder of such portion shall be paid to the estate of the deceased Category A Beneficiary. Any payment under this paragraph 24 Book Page 72 shall be made in a lump sum on the earliest practicable date following the date of death of the Category A Beneficiary. (5) Trust Beneficiary as Category A Beneficiary: In the case of a trust meeting the requirements of Section 3.2, any individual beneficiary of the Trust who is eligible to receive Trust distributions on account of payments from the Plan, shall be deemed to be a Category A Beneficiary under the Plan. (For example, if the Participant designates as his Beneficiary a Trust which meets the requirements of Section 3.2, and of which his surviving spouse is the Life Beneficiary, and elects lifetime payments, then for the purpose of this Subsection 10.6.2, the surviving spouse shall be deemed to be the Category A Beneficiary, and the terms of this Subsection shall be applied by basing distributions on the life expectancy of the surviving spouse.) B. CATEGORY B BENEFICIARIES - If the Beneficiary is a Category B Beneficiary, which is a validly existing legal entity (such as a Trust not meeting the requirements of Section 3.2, a_ charitable foundation, or the estate of the Participant), the portion of the Investment Account payable to such beneficiary shall be distributed as a lump sum on the earliest practicable date following the death of the Participant. In no event, however, shall that payment date be more than five (5) years following the date of death of the Participant. 10.6.3 Default Provision. If, upon the death of the Participant, there exists neither a Category A Beneficiary nor a Category B Beneficiary to receive any portion of the Participant's Investment Account, then the Employer shall, on the earliest possible date following the death of the Participant, pay that portion in a lump sum to the estate of the Participant. 10.7 General Distribution Requirements and Provisions. Notwithstanding any other provisions of this Plan to the contrary, all distributions under this Plan shall be made shall be made in accordance with the provisions of this Section 10.7 and, to the extent of any inconsistency, the provisions of this Section 10.7 shall control. 10.7.1 Calculation of Life Expectancy. For the purpose of ascertaining the relevant distribution periods and amounts hereunder, life 25 Book Page 73 10.8 expectancy, where applicable, shall Ret be recalculated annually. Notwithstanding the foregoing, however, with respect to permitted annuity distributions, life expectancy may be calculated in any manner permitted by the Internal Revenue Code, the Treasury Regulations, and all other applicable tax laws. 10. 7 .2 Additional Distribution Requirements. For years prior to January 1, 2002 [2003 Plan] any payments payable over a period of more than one year shall only be made in substantially non-increasing amounts, paid not less frequently than annually. 10.7.3 Employer Payout of Small Accounts. [Deleted 2005) 10.7.4 Statutory Compliance. All distributions under this Plan shall be made in accordance with the Treasury Regulations under Internal Revenue Code section 401 (a)(9}, including both the minimum distribution requirements of Treasury Regulation Section 1.401 (a)(9)-1, and, (in accordance with Internal Revenue Code Section 401 (a)(9)(G)) the minimum distribution incidental benefit requirements of Treasury Regulation Section 1.401 (a)(9}-2. To the extent that any distribution option hereunder is inconsistent with Internal Revenue Code Section 401 (a)(9), the provisions of Internal Revenue Code Section 401 (a}(9) shall control and the Plan shall be administered so as to conform with Section 401 (a}(9). Notwithstanding the foregoing , however, if, pursuant to Internal Revenue Code Section 457(d)(2)(B)(i)(I), Treasury Regulations (the "Superseding Regulations") should be issued which require more rapid distributions than those requ ired by Internal· Revenue Code Section 401 (a)(9)(G) and the Treasury Regulations under Section 401 (a)(9)(G), then the distributions under this Plan shall be made pursuant to such Superseding Regulations, to the extent inconsistent with Section 401 (a)(9) and the Treasury Regulations under that Section. 10.7.5 Cost-of-Living Adjustment of Periodic Payments. The Participant or a Category A Beneficiary, at the time of submitting a distribution option election permitted under Section 10.1, Section 10.2, or Section 10.6 of the Plan, may elect that any distributions made pursuant to a periodic payment option may be made not in fixed amounts, but rather in increasing amounts, based on increases in the cost-of-living. The formula for determining cost-of-living increases shall be established by the Employer from time to time. Direct Rollovers. A Participant or Beneficiary who is entitled to receive an Eligible Rollover Distribution may direct the Employer to pay all or a portion of 26 Book Page 74 such distribution directly to an Eligible Retirement Plan, in lieu of paying such amount to the Participant or Beneficiary. A. The Employer shall establish reasonable rules and procedures with respect to elections to make direct rollover distributions to an Eligible Retirement Plan. B. The Employer shall treat the election by a Participant or Beneficiary to make or not make a direct rollover with respect to one (1) payment in a series of periodic payments as applicable to all subsequent payments in the series unless the Participant or Beneficiary subsequently changes the election. C. For purposes of this Paragraph, the following definitions shall apply: (1) "Eligible Rollover Distribution" shall mean any distribution of all or any portion of the balance to the credit of the Participant or Beneficiary, except that an Eligible Rollover Distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the Participant or Beneficiary, or the joint lives (or joint life expectancies) of the Participant or Beneficiary and such Participant's or Beneficiary's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401 (a)(9) of the Code; any distribution on account of an unforeseeable emergency; and the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). (2) "Eligible Retirement Plan" shall mean an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified trust described in Section 401 (a) of the Code, an annuity contract as described in Section 403(b) of the Code, or another eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state that accepts the Participant's or Beneficiary's Eligible Rollover Distribution and which agrees to separately account for amounts transferred into such plan from this Plan. However, in the case of an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan is an individual 27 Book Page 75 retirement account or individual retirement annuity. (3) "Beneficiary" shall include a Participant's former spouse who is the alternate payee under a Qualified Domestic Relations Order, as defined in Section 414(p) of the Code, with respect to the interest of the former spouse. [2003 Plan] SECTION 11: Emergency Withdrawals. In the event of an Unforeseeable Emergency, to be determined by the Employer in its sole discretion, the Employer may pay to the Participant all or any portion of the amount in such Participant's Investment Account, as of the month end following the date when such determination is made. Payment may not be made to the extent that the hardship resulting from the Unforeseeable Emergency is or may be relieved (a) through reimbursement or compensation by insurance or otherwise, (b) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or (c) by cessation of deferrals under the Plan. The amount that may be paid out is limited to the amount reasonably necessary to alleviate the Unforeseeable Emergency need and, in most cases, will be paid only in a single lump sum. In the event of an Unforeseeable Emergency which causes the initial lump sum payment to be inadequate to meet the Unforeseeable Emergency need, the Participant (or former Participant) may apply for the payment of subsequent lump-sum amounts, up to the entire amount in the Participant's (or former Participant's) Investment Account. Any distribution under this section shall be deemed a termination of the election to defer compensation under Section 4.4 above, and no further deferral of compensation shall be made unless the Participant subsequently re-elects to defer compensation under the Plan, as provided in Section 4.4. Moreover, any distribution of 100% of the Participant's Investment Account under this section shall be deemed a revocation of the Participant's agreement to participate in the Plan. The (former) Participant may re-elect to participate in the Plan, pursuant to Section 4.1, after a lapse of not less than three (3) months. SECTION 12: Assignments and Transfers. 12.1. Consistent with Section 8 above, no one, including the Participant, his beneficiary or designee, or any other person, shall have any right to commute, sell, assign, transfer, or otherwise convey the right to receive any payments hereunder, which payments and right thereto are expressly declared to be non-assignable and non-transferable. The Employer shall have no liability to either the Participant or a purported assignee or transferee, on account of any attempted assignment or transfer. In addition, except to the extent otherwise provided by law, no interest of the Participant in the Plan shall be subject to attachment, garnishment or execution, or be transferable by operation of law, whether due to bankruptcy, insolvency, liquidation for the benefit of creditors, or any other cause. 28 Book Page 76 12.2 Notwithstanding the foregoing, however, the amounts deferred by a former Participant may be transferred to another Internal Revenue Code section 457 eligible deferred compensation plan of which the former Participant has become a participant, if the following conditions are met: (1) the plan to which the former Participant wishes to transfer amounts deferred is located within the State of California; (2) the plan receiving such amounts provides for the acceptance of such amounts; (3) the employer accepting the transfer funds gives written notice of its agreement to accept such transfer and assumes liability therefor; and (4) the Participant provides a written release to the Employer releasing the Employer from any claim or liability under the Plan after the date such transfer of funds occurs. If a Participant separates from service in order to accept employment with another entity which permits the Participant to participate in a section 457 eligible deferred compensation plan, and if the four conditions enumerated above are met, payout of benefits will not commence upon separation from service, notwithstanding any other provision of the Plan, and amounts previously deferred will automatically be transferred to that other entity's section 457 eligible deferred compensation plan, to be credited to the Participant's account. 12.3 A Participant, who was formerly employed by another public agency located within the State of California, may transfer, to the Plan, funds from an Internal Revenue Code section 457 eligible deferred compensation plan maintained by that former employer, if that eligible deferred compensation plan permits transfers to other section 457 eligible deferred compensation plans and if the Participant complies with all applicable terms and conditions of both the transferring plan and this Plan in effectuating the transfer. As a condition to transfer to this Plan, the Employer may require that assets transferred from another plan be in the form of cash or cash equivalents. Effective for distributions made on or after January 1, 2002, a Participant who receives an "Eligible Rollover Distribution", as defined in Sections 401 (a)(31 ), 408(d)(3), 403(b)(8), and 457(e)(16) of the Code from an eligible plan as defined in Section 401 (c)(8)(B of the Code may transfer or rollover such distribution to this Plan. All such rollover contributions shall be separately accounted for. [2003 Plan] 12.4 Notwithstanding any other provision of these Distribution rules to the 29 Book Page 77 contrary, if a Qualified Domestic Relations Order ("QDRO") provides that a Participant's benefit is to be divided and a portion allocated to an alternate payee under the terms of a QDRO (such as a spouse or former spouse), Such distribution shall not violate this Section. Where a spouse (or a former spouse) of a Participant in the Employer's Section 457 Plan receives a distribution under the terms of a QDRO, the spouse (or former spouse) will be treated as the distributee and taxed on the benefits received. Distributions under the Employer's Section 457 Plan made to an alternate payee other than a spouse ( or former spouse) under a QDRO are taxable to the Participant." [2003 Plan] 12.5 Upon application duly made in form and content satisfactory to the Employer, the Employer authorizes the Plan Administrator to make loans on behalf of the Employer, as Trustee, from the Trust Fund to Participants on such terms and conditions as the Employer may prescribe from time to time, including but not limited to, the following: 12.5.1. Amount of Loan. The aggregate principal balance of all Participant loans of all qualified plans maintained by the Employer (including any affiliated employers) shall not exceed the lesser of (a) Fifty Thousand Dollars ($50,000) reduced by the excess, if any, of (i) the highest outstanding loan balance from the Plan during the one (1) year period ending on the day before the date such loan is made, over (ii) the outstanding balance of loans from the Plan on the date such loan is made; or (b) one-half (1/2) of the sum of the Participant's Account balance. 12.5.2. Loan Provisions. All Participant loans shall have a specific maturity date and bear a reasonable rate of interest in an amount to be determined by the Employer comparable to the rate then being charged for similar loans, but in no event exceeding the maximum rate then permitted by law. All Participant loans shall be secured by the Participant's beneficial interest in the Plan and such other security as the Employer shall determine. All Participant loans shall require that substantially equal payments of principal and interest be made at least quarterly. 12.5.3. Loan Term. All loans shall be required to be repaid within five (5) years; except that any loan used to acquire any dwelling unit which within a reasonable time is to be used as the principal residence of the Participant, may be made for a term of up to thirty (30) years. 12.5.4. Default. Should the Participant fail to repay the loan within the time prescribed by the note evidencing the loan, or default on any of the loan terms, the Employer may, at its option, (i) enforce the rights of 30 Book Page 78 the Plan against any or all real or personal property securing the loan; or (ii) take such other remedies as may be available under the law. 12.5.5. Employer Decisions. The Employer's determination as to_whether or not any loan application shall be granted shall be final and conclusive on all parties, and there shall be no appeal or dispute. 12.5.6 Earmarked Investments. The Employer shall treat any loan made pursuant to the provisions of this Article as an earmarked investment and shall allocate all gains and losses to the account of the borrowing Participant. 12.5.7 Written Procedures. This loan program shall be administered in accordance with the rules set forth in this Section 12, and such other written procedures as may be established by the Employer and the Administrator. Such written procedures shall include, but need not be limited to the following: (a) The identity of the person or position authorized to administer the Participant loan program; (b) The procedures for applying for Plan loans; (c) The basis on which loans will be approved or denied; (d) The limitation, if any, on the types and amounts of loans offered; (e) The procedure for determining a reasonable rate of interest to be charged for Plan loans; (f) The types of collateral which may secure a Participant's loan; and (g) The events constituting default and the steps that will be taken to preserve Plan assets in the event of such default. [2003 Plan] 12.6 If a Participant so elects, the Plan may make a direct trustee-to-trustee transfer of all or a portion of the Participant's Account to a defined benefit governmental plan ( as defined in Section 414( d) of the Code for the purchase of permissive service credit (as defined in Section 415(n)(3)(A) under such Plan, or a repayment to which Section 415 does not apply by reason of Subsection (k)(3) thereof. [2003 Plan] 31 BookPage 79 SECT ION 13: Notice. Any notice or other communication required or permitted under the Plan shall be in writing, and, if directed to the Employer (ATTN: Director of Human Resources), shall be sent to the Employer at its principal office, and, if directed to a Participant or a beneficiary, shall be sent to such Participant or beneficiary at his last-known address as it appears on the Employer's records. Such notice shall be deemed given when mailed, unless notice is given in person, in which case such notice shall be deemed given upon receipt. SECTION 14: Amendment orTermination of Plan. The Employer may, at anytime, terminate this Plan for all Participants. Upon such termination, the Participants in the Plan shall be deemed to have withdrawn from the Plan as of the date of such termination; each Participant's full Salary on a non-deferred basis will be thereupon restored; and the Employer agrees to pay each Participant the amount of money determined as if the Participant had terminated his employment, said payment to be made in accordance with the provisions of Section 10.2. The Employer may also amend the provisions of this Plan at any time; provided, however, that no amendment shall affect the rights of the Participants or their beneficiaries to the receipt of payment of benefits, to the extent of any compensation already deferred at the time of the amendment, as adjusted for investment experience prior to and subsequent to the amendment. SECTION 15: Liability of Employer. Neither the Employer, its Directors, nor its Employees, shall be liable for any action taken or not taken with respect to the Plan and Trust, except for its or their own gross negligence or willful misconduct. Neither the Employer, its Directors, nor its Employees, shall be liable upon any contract, agreement, or other instrument made or executed by it or them in its or their behalf in the administration of the Plan and Trust. Neither the Employer, its Directors, nor its Employees, shall be liable for the neglect, omission, or wrongdoing of any other person in connection with the administration of the Plan and Trust, nor shall any such person be required to make inquiry into the propriety of any other person in conjunction with the administration of the Plan and Trust. [2003 Plan] The Employer hereby establishes, on the terms and conditions set forth above, the Orange County Sanitation District Amended Deferred Compensation Plan (2003). This Amended Plan shall constitute an amendment and restatement and consolidation of all Deferred Compensation Plans previously established, maintained, or acquired by the District, and shall supercede all such Deferred Compensation Plans which have been previously established, maintained, or acquired by the District. All such Plans shall be deemed to have been merged into this Plan, so that this Plan shall be the only Deferred Compensation Plan pursuant to Section 457 of the Code which is offered by the District, although the District, in its sole discretion, may continue with or enter into various contracts or agreements with various investment providers pursuant to this Plan. [2003 Plan] H:\dept\agenda\FAHR\FAHR2005\ 1105\05-93.Deferred Comp-att 3.doc 32 Book Page 80 FAHR COMM ITTEE Meeting Date 1• To Bet of Dir. 10/12/05 10/26/05 AGE NDA REPORT Item Number Item Number FAHR0S-94 Orange County Sanitation District ·PLEASE SEE SEPARATE A TTA CHMENT FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael D. White, Controller SUBJECT: TREASURER'S REPORT FOR THE MONTH OF SEPTEMBER 2005 GENERAL MANAGER1S RECOMMENDATION Receive and file Treasurer's Report for the month of September 2005. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the Orange County Sanitation District's professional external money manager, and Mellon Trust serves as the Sanitation District's third-party custodian bank for the investment program. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. The Sanitation District's Investment Policy, adopted by the Board, includes reporting requirements as listed down the left most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies" portfolios. The Sanitation District's external money manager is operating in compliance with the requirements of the Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there is one investment policy compliance exception. It pertains to the holding of one security within PIMCO's Long-Term Operating Monies Portfolio that had an acceptable rating at the time of purchase but has since fallen below the minimum rating allowed by the investment policy. The Sanitation District's investment policy requires a minimum rating of A3 by Moody's or A- by S&P, with at least a BBB rating in the event of a split rating, at the time of purchase. The rating exception pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.47 percent of the portfolio holdings, whose rating from Moody's has fallen several times, from A3 to BA 1, then to BA3, B3, B, and finally to CA. Likewise, the rating from Standard & Poor's has also fallen several times, first from A-to BBB, then to BB, then to B+, B-, and finally to CCC+. Both rating agencies have since withdrawn their ratings, Moody's in February 2004 and Standard & Poor's in June 2004. Although these ratings are less than what is required at the time of purchase, PIMCO believes, based on the financial strength of UAL and the underlying collateral of the security, that the Sanitation District would suffer an unwarranted loss if the security was sold at this time. H:ldept\agenda\FAHRIFAHR2005\1105\05-94.Treasurer Report.doc Page 1 Book Page 81 The Sanitation District's investment policy does not require any action because of "credit watch" notices or the decline in credit standing. However, PIMCO will continue to monitor the credit for this security very closely. Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The Sanitation District's portfolios are priced to market ("mark-to-market") as of the last day of each reporting period. The slight differences in value are related to minor variations in pricing assumptions by the valuation sources at the estimate date. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds . D This item has not been budgeted. C8J Not applicable (information item) ADDITIONAL INFORMATION Schedules are attached summarizing the detail for both the short-term and long-term investment portfolios for the reporting period. In addition, a consolidated report of posted investment portfolio transactions for the month is attached. The attached yield analysis report is presented as a monitoring and reporting enhancement. In this report, yield calculations based on book values and market values are shown for individual holdings, as well as for each portfolio. Mellon Trust, the Sanitation District's custodian bank, is the source for these reports. Transactions that were pending settlement at month end may not be reflected. Also provided is a summary of monthly investment balances and transactions within the State of California Local Agency Investment Fund (LAIF). These reports accurately reflect all Sanitation District investments and are in compliance with the Sanitation District's Investment Policy and previous requirements of California Government Code Section 53646. Government Code Section 53646 mandated that annual investment policies and quarterly reports be rendered to the legislative body. AB2853, which was signed on September 29, 2004, amends Government Code Section 53646 to remove the requirements; the rendering of these documents is optional. Although the Annual Investment Policy and Monthly and/or Quarterly Reports are no longer required, we believe it prudent to continue providing the legislative bodies with these documents. In addition, Government Code Section 53607 has not been repealed that requires an annual delegation of investment authority to the Treasurer and the submission of reports that include investment transactions by month. Sufficient liquidity and anticipated revenues are available to meet budgeted expenditures for the next six months. The tables on the following page details the book balances of the Sanitation District's investment accounts at month-end and a summary of the Cost of Funds on debt issues. A graphical representation of month-end balances is shown on the attached bar chart. H:ldeptlagenda\FAHAIFAHA2005\1105\05-94.Treasurer Report.doc Page 2 Book Page 82 Book Balances Estimated Investment Accounts September 30, 2005 Yield(%) State of Calif. LAIF $7,180,808 3.18 (1) Union Bank Checking Account 964,572 3.18 (1) Union Bank Overnight Sweep Account 301,000 2.95 PIMCO -Short-term Portfolio 59,221,453 3.79 PIMCO -Long-term Portfolio 251,250,513 4.45 Petty Cash 4000 N/A TOTAL $318 922 346 4.29 Debt Service Reserves w/Trustees $64 :l6Z 568 3.98 (1) This is the annualized yield for the month of August. The September annualized rate was not available as of the date of this report. Cost of Funds Issue Description 1992 Syn Fixed 1993 Syn Fixed 2000 VRDO 2003 Fixed TOTAL Weighted Avg Cost of Funds ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS Annual Outstanding Interest COP Balance Rate(%) $ 100,275,000 5.55 42,050,000 4.56 199,000,000 2.38 280.000.000 5.15 $621.325 QQQ 4.29 1. Graph of Monthly Investment Balances by Type -Last Six Months 2. Investment Transactions and Balances in the State Local Agency Investment Fund 3. PIMCO Monthly Investment Recap & Yield Analysis Report 4. PIMCO Performance Monitoring Report -Liquid Operating Monies 5. PIMCO Performance Monitoring Report-Long-Term Operating Monies 6. Mellon Trust Asset Summary by Asset Type with Sectors -Liquid Operating Monies 7. Mellon Trust Asset Summary by Asset Type with Sectors -L-T Operating Monies 8. Mellon Trust Yield Analysis Report 9. Mellon Trust Asset Detail -Consolidated 10. Mellon Trust Transaction Detail -Consolidated MW:bg H:\dept\agenda\FAHR\FAHR2005\1105\05-94.Treasurer Report.doc Page 3 Book Page 83 Book Page 84 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Michael D. White, Controller Meeting Date To Bel. of Dir. 11/9/05 11/16/05 Item Number Item Number FAHR05-95 SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD JULY 1, 2005 THROUGH SEPTEMBER 30, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period July 1, 2005 through September 30, 2005. SUMMARY Section 15.0 of the Sanitation District's Investment Policy includes monthly and quarterly reporting requirements for the Sanitation District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by PIMCO, the Sanitation District's external money manager. The ongoing monitoring of the Sanitation District's investment program by staff and Callan Associates, the Sanitation District's independent investment advisor, indicates that the Sanitation District's investments are in compliance with the Sanitation District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the Sanitation District to meet budgeted expenditures for the next six months. The Sanitation District's portfolios do not include any reverse repurchase agreements or derivative securities. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. [:8] Not applicable (information item) H:\dept\agenda\FAHR\FAHR2005\1105\05·95.Qtrly lnvst Mgmt Apt.doc Revised: 8/20/98 Book Page 85 Page 1 ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by PIMCO, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, are attached for reference. Also attached are Long-Term and Liquid Operating Monies Summary of Performance Data and Portfolio Statistics charts that depict the performance results, estimated yield and duration, credit quality, and sector diversification of the Sanitation District's portfolios, as of June 30, 2005 and September 30, 2005. The Liquid Operating Monies portfolio, with an average maturity of 50 days, consists entirely of cash equivalent investments such as U.S. Treasuries and corporate discount notes. Portfolio Performance Summary The following table presents a performance summary of the Sanitation District's portfolios as compared to their benchmarks for the period July 1 through September 30, 2005. Portfolio Performance Summary Quarter Ended September 30, 2005 Liquid Operating Monies (%) Long-Term Operatfng Monies(%) Total Rate Total Rate of of Return Benchmar1<<1l Return Benchmar1<<1l 3 Months 0.87 0.80 0.20 -0.16 6 Months 1.60 1.49 1.95 1.51 9 Months 2.23 2.07 1.65 0.86 1Z Months 2.68 2.52 1.98 1.02 Since inception 30 Sept. 95 4.19 3:77 5.76 5.60 Market Value $59.5M $253.4M Average Quality "AAA" "AAA" Current Yield (%) 3.0 3.9 Estimated Yield to Maturity (%) 3.8 4.5 Quarterly Deposits (Withdrawals) $20.0M $-90.00M Estimated Annual Income $2.1M $9.8M (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Quarter Ending 31 Dec. 04 31 Mar. 05 30 Jun. 05 30 Sep. 05 H:ldeptlagenda\FAHRIFAHR200511105\05-95.0trly lnvst Mgmt Rpt,doc Revised: 8/20/98 Liquid Long-Term Operating Operating Monies ($M) Monies ($M) 73.1 368.0 73.5 336.9 39.1 342.8 59.5 253.4 Page 2 Book Page 86 Sanitation District's Investment Account Balances as of September 30, 2005 Investment Accounts State of Calif. LAIF Union Bank Checking Account Union Bank Overnight Sweep Account PIMCO -Short-term Portfolio PIMCO -Long-term Portfolio Petty Cash TOTAL Debt Service Reserves w/Trustees ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Historical Yield Curve Graph 2. PIMCO Quarterly Report Book Balances September 30, 2005 $ 7,180,808 964,572 301,000 59,221,453 251,250,513 4000 $318 922 346 $ 6416Z 568 3. Quarter End Portfolio Market Value Bar Chart Estimated Yield(%) 3.18 3.18 2.95 3.79 4.45 N/A 4.29 3.98 4. Summary of Performance Data and Portfolio Statistics -Liquid Operating Monies 5. Summary of Performance Data and Portfolio Statistics -L-T Operating Monies 6. Investment Transactions and Balances in LAIF 7. Asset Summary by Asset Type -Liquid Operating Portfolio 8. Asset Summary by Asset Type -Long Term Portfolio 9. Investment Listing of Liquid Operating and L-T Portfolios (Yield Analysis Report). 10. Callan Report (separate bound document) 11. PIMCO Report (separate bound document) H:\deptlagenda\FAHRIFAHR2005\1105\05-95.Qtrly lnvst Mgmt Apt.doc Revised: 8/20/98 Book Page 87 Page 3 Book Page 88 5.50 5.25 5.00 4.75 4.50 4.25 4.00 3.75 to ~ 3.50 0 ~ 3 25 0 ;,;--0 . "'O u1 3.oo "" (JQ • 2.75 ~ - 00 2.50 ·-o 2.25 2.00 1.75 1.50 1.25 1.00 - 0.75 0.50 ---- ---- .-- . -... 0 E M 0 E co I - .. >-.... IHISTORICAL YIELD CURVEI -- - ~ . - .. >- N I - - : .. >- M I .,. ~ - .. >- "'it' I - .. >- in I -- - .. >-,.._ -+-31-Mar-05 .......,_ 30-Jun-05 -30-Sep-05 l - _..,. -- .. >- 0 .... __.,,...-- .... - - .. >- 0 N I .... - .. >- 0 M I l I 1 l ! i I I I i I I I I I I , Book Page 90 PIM C 0 October 26, 2005 Mr. Mike White, CPA Controller Orange County Sanitation District I 0844 Ellis A venue Fountain Valley, CA 92708-7018 Dear Mike: The following is a description of events in the bond markets during the 3rd quarter of 2005 in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid portfolios over the period. We have also lncluded is a section on strategies to be pursued in your portfolio during the coming months. Bo11d Market Recrip: Most Fixed Income Sectors Decline As Interest Rates Rise Most bond sectors lost ground in the third quarter as interest rates rose. The Lehman Brothers Aggregate Bond Index, a widely used index of high-grade U.S. bonds, lost 0.67 percent during the quarter. The benchmark ten-year Treasury yield ended the quarter at 4.33 percent, 41 basis points higher than at the end of the previous period. Interest rates were volatile intra quarter despite ending higher for the full period. Rates rose in July, fell in August and then reversed course in September as investor sentiment shifted about the direction of Federal Reserve policy, the impact of two Gulf Coast hurricanes and the potential for a pullback in the surging housing market. The yield curve continued to flatten over the course of the quarter. The graph below shows recent movements in interest rates and changes in the shape of the yield curve. The biggest uncertainty in bond markets during the quarter was whether soaring energy prices, already a worry even before the hurricanes, would drive inflation higher or exert a more powerful negative impact on growth by crimping consumer purchasing power. Crude oil prices touched a record (in nominal terms) of more than $70 per barrel during the quarter before falling back. Investors hoping for a pause in Fed tightening in the aftermath of Hurricane Katrina were disappointed on September 20, when the U.S. central bank lifted the federal funds rate another 25 basis points to 3. 75 percent, the second increase of the quarter. Fed policy makers gave no indication they were considering a pause, stating on both occasions that rates may rise at a "measured pace". In its latest statement, the Fed said higher energy prices post-Katrina could cause inflation to accelerate. Book Page 91 Mr. Mike White, CPA Orange County Sanitation District October 26, 2005 Page2 While rising rates suggested that investors shared lhe Fed's concern about intlation there were also signs late in the quarter that growth was poised to slow down. A key index of consumer confidence weakened to its lowest level in nearly two years and new home sales fell more than. expected. These reports raised the specter of a pullback in spending by consumers, who hav been pinched by higher gasoline prices and have relied on rising home values to sustain their purchases. As the quarter closed, it was unclear how resilient household spending would be. Emerging Markets, Nou-U.S. and High Yield Outperform The following summarizes sector returns for the third quarter. • Mortgage-backed securities underperformed lik--duration Treasuries during the quarter. The mortgage sector was adversely affected by duration extension arising from higher interest rate , which more than offset mortgages' yield advantage relative to Treasuries. Performance was mixed between mortgage coupons. • High-grade corporate bonds outpaced Treasuries of similar dL1ration as their yield advantage cushioned the impact of rising rates. While corporate credit quality overall remained strong during the quarter concerns arose that a jump in debt-fmanced corporate takeovers would prove to be unfriendly to bondholders. High yield corporates fared better than their investment grade counterparts, generating a positive absoJute return, but their perfonnance was held down by credit concerns as well, especially in the auto and airline sectors. • Less volatile fixed income asset classes such as real return and municipal bonds outpaced Treasuries during the quarter. Municipal bonds tend to outperform Treasuries when rates rise. In the case of TIPS, real yields rose less than yields on nominal bonds of comparable maturity. • Emerging market bonds were the best performing fixed income sector. Cash continues to flow into the asset class amid improving credit fundamentals and ratings upgrades. Emerging market bonds also benefited from expectations of limited future supply as many countries completed fundlng for lhe year and in some cases b gan buying back debt. • Most government bond markets outside the U.S. outperformed Treasuries. In Europe, yields rose as much as 40 basis points less than for U. . bonds of comparable maturity as gr0\\1h and inflation were higher in the U.S. In Japan, investors began to discount eventual tightening by the Bank of Japan, sending yields higher, but as in Europe the increase was less than Lhat in the U.S. Performance Attribution: Long-Term Portfolio The Long-Teon portfolio that PIMCO manages on behalf of Orange County Sanitation District r turlled 0.20 percent over the quarter O\ltperforming the Merrill Lynch 1-5 year Government Corporate lndex by 36 basis points. The following points summarize returns for the quarter ended eptember 30 2005. Book Page 92 Mr. Mike White, CPA Orange County Sanitation District • Your portfolio outperformed its benchmark for the quarter October 26, 2005 Page 3 • Active management and broad diversification helped your portfolio weather a challenging quarter for bonds. • Important contributors to performance for the quarter were: • Below-index duration for most of the quarter as rates rose • Exposure to short maturity mortgages, as these issues outperfonned I ike-duration Treasuries • An allocation to TIPS, as real yields rose less than yields on nominal bonds of comparable maturity • The following strategy detracted from returns: • Underweighting corporate bonds, as their yield advantage mitigated price pressure from higher rates Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.87 percent during the quarter, outperforming the 3-month Treasury Bill Index by 7 basis points. The following points summarize returns for the period ending September 30, 2005: • Your portfolio outperformed the index for the quarter • Active management and broad diversification were important during a challenging quarter for bonds • Exposure to short-term corporate notes contributed to performance, as the sector outpaced Treasuries as their yield advantage mitigated price pressure from higher rates Economic Outlook: Slower Growth With Inflation Pressure, But High Uncertainty The U.S. economy will grow more slowly over the next year with some increase in headline consumer price inflation. The yield on the benchmark 10-year Treasury will range between 3. 75 percent and 4.50 percent. The combination of slower growth and continued flows of capital into U.S. fixed income markets from high saving countries will keep rates in this range. The Federal Reserve will stop tightening at a federal funds rate near 4 percent as growth decelerates and the housing market cools. The economic outlook is highly uncertain, however, because it is not clear how several key factors will play out. The first is the lagged impact of higher energy prices over the past year, driven by increased demand from China and elsewhere. Another is the more recent jolt delivered by higher natural gas and gasoline prices in the aftermath of hurricanes on the U.S. Gulf Coast. Additionally, the U.S. economy will be hit with a slowing property market arising from reduced affordability of Book Page 93 Mr. Mike White, CPA Orange County Sanitation District October 26, 2005 Page 4 housing. An offsetting positive factor is the continued strength of U.S. corporate investment. Key elements of PIMCO's forecast are: • A Slowdown In U.S. Housing ... The direction of the U.S. housing market will be a critical factor in determining Fed policy over the next year. Recent gains in the U.S. property market have not only supported consumer confidence but also produced a surge in housing-related employment and residential investment. The greatest threat to the housing market is a decline in affordability. The last decade's gains in home prices relative to incomes are not sustainable because higher mortgage rates and increased energy prices will reduce what consumers can afford. • ... But Not A Collapse -PIMCO believes that while the U.S. property market suffers from regional froth the bubble does not extend nationwide. A soft landing, meaning a slowing in the rate of appreciation but not an outright decline is the most likely scenario. Housing is not expected to crash because supply and demand nationwide are relatively balanced lending conditions are favorable and low unemployment continues to support incomes and demand. • European Growth To Remain Meager -Domestic demand in Euroland is weak even though the region has enjoyed housing gains relative to personal incomes that exceed those in the U.S. The reason is anemic real wage growth, which dampens consumer confidence. PIMCO sees no evidence that these conditions will change over a cyclical time frame. If the European Central Bank takes any action over the next year, the most likely course will be to ease. • Japan and China To Contribute -Japan's recovery appears durable after many false starts in the recent past. While investment by Japanese companies still lags their cash flows, the momentum in capital spending is strong. Consumer confidence is on the rise given improved labor market conditions and wage gains. Lower expected volatility in China's economy will be positive for growth throughout Asia. Tight credit: conditions have cooled the Chinese property n1arket and prodded a shift in investment away from real estate. China's cLtrrency revaluation is expected to have little impact on its trade balance as wage differentials between China and developed economies remain substantial. • Benign Core Inflation -Strong competition in globally traded goods and services will restrain core inflation (CPI less food and energy prices) even as headline inflation measures rise. Inflation is well contained in Euroland, where slow growth has driven core inflation below 2 percent. Japan will likely turn the corner from deflation to modest inflation. Rein In Risk Taking Amid Uncertain Economic Environment PIMCO takes moderate risks across a variety of strategies, but we will be especially price and value-sensitive in an unusually ambiguous economic environment. Major strategies will include: • Interest Rate Strategies -We will target duration moderately above the index given an expected slowdown in growth, but retain tactical flexibility to trim this exposure should rates drop toward the lower end of our forecasted range. PIMCO will avoid longer maturity U.S. Book Page 94 Mr. Mike White, CPA Orange County Sanitation District October 26, 2005 Page5 Treasuries, which offer little extra yield now that the yield curve has flattened considerably and are more sensitive to shifting expectations for headline inflation. Shorter maturities that react more to central bank policies are a better value given our forecast that these interest rates will be lower than markets now expect. • Mortgage-Backed Bonds -PIMCO will overweight mortgage-backed bonds, which continue to be an important structural holding because of their high credit quality and yield advantage versus Treasuries. However, most of PJMCO's added value will come from mortgage coupon and security selection. • Corporates -Valuation remains a major risk in the corporate bond market. With credit premiums overall near historic lows, PIMCO will retain its underweight to corporates. Pockets of value do exist, however, in select sectors with strong collateral protection, such as autos, telecom and utilities. 11 TIPS and Munis -We will retain modest tactical holdings of these defensive securities as a hedge against economic uncertainty. PIMCO has reduced its TIPS exposure in 2005 as real return bonds have rallied, but some exposure is still justified as a hedge in case inflation pressures prove greater than anticipated. The case for municipal bonds is similar, since munis typically hold their value better than taxable bonds when rates rise. In addition, muni yields remain attractive relative to taxable yields on a historical basis. • Europe -PIMCO will retain exposure to European government bonds, though at reduced levels compared to recent periods. Given prospects for meager growth, and thus muted inflation and interest rate risk in Euroland, a tactical allocation to this region can still add value. We have taken profits on this position, however, as European yields have fallen relative to Treasury yields. • Emerging Markets -Most emerging economies continue to see improving credit fundamentals. Despite their recent gains, these issues still offer attractive yields compared to other credit-intensive alternatives such as corporate bonds. We will therefore retain our exposure to this sector, though we will not look to add to our positions. • Currency -Given PlMCO's secular forecast for a weak dollar, a modest currency allocation focused on the yen and emerging market currencies has the potential to add value. St.rotegll: The following list highlights the strategies that will be used in the Long Term portfolio in the coming months: • PIM CO will rein in risk exposures in light of the uncertain economic outlook • Target duration near to moderately above index given an expected slowdown in growth but retain tactical flexibility should rates fall toward the lower end of our forecasted range • Focus on shorter maturities, which offer the best value given our forecast that these interest rates will be lower than markets now expect Book Page 95 Book Page 98 ttl 0 0 ;:,;- "O :,, UQ (!) '-0 '-0 Summa!Y of Performance Data and Portfolio Statistics Orange County Sanitation District Liquid Operating Portfolio Perfontlance Since Periods Ended 9/3012005 9/30/1995 5 yrs 3 yrs 1 yr 9 mos 6 mos 3 mos ' "· -· 1 Total Portfolio Bef<>re Fe!is (¾) After ~ees (%) CiHgrqUp 3 Mohth T-BHl lridex (%)2 Summary Information ·TQ!al M~rkei V.alu_e {$MM)' Qliartetly Cciritiibutiqns ($MM) Estimated A~nuai lricorn~ ($MM) Estimat~d Yie1d'fo Maturit'y (o/o) Estiml:ited Durafion' (yrs) Averagt'i M~tt:irity' (Yr!i) ·. Averag!,i·OUality Avefage coupci11 (%) Net Cuitericy ~xposui'e (%) ' I . .. tracklng Error (3 yrs, %)4 ' Information Ra'tio (3 yrs)~· 4.19 2.74 , 4.04 2.5~ 3.77 2,35 l=IMtJ•i•MfiMM•l•M 39.1 :59 .. 5 -35.0 2();ij 1.2 2:1 3.1 :ts 0.2 0.2 0.2 0.2 AAA AAA 2.3 3;Q .. 0.0 OJ) 0.1 0;1 1.0 1.7 * See example of tracking error / information ratio on footnote page of the Appendix. See footnotes in Appendix. 1.76 1;66 1.iiO 2.4B 1.59 2.52 :t23 2,08 2,07 Sector Allocation Government - Mortgages Corporates 1.60 1.49 1.49 High Yield .. . . 0,87 0.80 0.80 Non Li;s. $ b~velape_d ishues Emerging'Martet~\s~cies · tither Net CashlMori¢Y M~rketsi3 .. tdmrnetciaJ, Pap_trrT$Tii=' st Govern~ent ·. certificate rjf De.ptisit .E!ari~er'sAc.ceptan~~ Mon~y Mkt futures t,ess~ Liabilities- Total 2 10 l B E :::l ~ 6 ,::, "' -~ iii :::l C ~ 2 0 0 10-Year Return vs. Standard Deviation ML 1·3-'i'r. ireasuiy • ~Porirollci ·• lrid9K !---·-_,.) 2 4 X Citigroup 10-Yr. Strip -·· ~t-...;-L...,.._ -,.t,_ 6 8 10 Standard Deviation of Return2 (%) % of Market Value • Duration in Yrs • lffiMht•t•~iMiWf-Mif.iGititf-M1aUMt.J❖~-2s -·1 o.o ' · .o.o 0 0 0,0 o.o 9 .4 0.0 0.0 0 0 0.0 o:o 0 0 0.0 Ql(j 0 0 0.0 0;0 0 0 0.0 O.<i 63 89 0.1 0,1 63 '!>2 0.1 0.1 0 0 0.0 (j;O 0 -; 0.0 lto 0 0 0.0 0;0 ., 0 0 0.0 0.9 0 20 0.0 OJ> 100 100 0.2 0;2 0:, 0 0 7' --0 I>' (JO (1) 0 0 Summa!Y of Performance Data and Portfolio Statistics Orange County Sanitation District Long Term Portfolio Performance Periods Ended 9(30/2005 , ____ _ •' ·< . . I I ' t~ • 'l' y1, 1f 5.1~. 5.14 2.16 ·1, 10-Year Return vs. Standard Deviation 6 mos '3 mos l ,-----·- B l XU.lAG E 6 Portfolio r.: . .3 ., Index &! I 1,9'5 0120· Total ·f!'otttoiio ,. ~lifore.¥~es (0/o). After Fe~s (%) : ' 5.61 ;, :.4.IJ!J r2,,60 ' 1.98 {82 M .$ ·nj r· 1_~7 . I' (L15. ] 4 r 6 C)ligroup 3-~ Mo :, LI Merrill 'i-s·vea'r,Gov1i.torp. (%)2 Summary Information l'otal rt:,farket\!i~fu.e ($MM)" . auartiirlY Goi'ltriblitiohs.(.$t0M) Eslimatect°A.hmial Income ($Mf:,,1) f;stimafod Yield to Matur!W(¾) Esiimated Duration (yrs) • Benchmark Duration (yrs)- Ayerage MaturHy (yrs) A,.i~ra9e auanly Average Coupon(%) N~t G.ur.r.ency 1;3xpo~ure (%) Trabking Error '(3 yrs:, ¾)3' ' lriforml!ition R.atio (3 yrs.)3' · ' . s,:ao ··s.'ts l#tM#ii••iliUMM•i•M 342.B . 253:~ 0.0 0iio.o 13.1 9;8 4.1 4.5 2,3 , .. ,, 2.4 2.4 2A 2.6 2.8 AAA MA 3.9 3.9 0.0 0.0 0.5 :.i.,; o;s 0.4 0.6 • See example of tracking error/ information ratio on footnote page of the Appendix. See footnotes In Appendix. 2.43 1,02 , ·o.ae Sector Allocation Go~~~r1n:i:~nr Mortgages Corp6ra.tes High Yield. 1,51 --(Jc.16 I •• ., Non iJ:s, $ bevelopEld ls~lles Eriletgir\g. t•,farl<:ets ·lpsu,es Other ,. N.el1~a:s.h E·tiuiv_[ien~·:ci _ :C.Qmn;ieti';i~I Pap'etl STIF ~" ' . ·~ ST Mqrtg~ges ·,J ST ¢oi'p6ratEo!s ST t3ovetr,ment · Other · Les~: liabilities tot;il 2 0 _.j_ __ J 0 2 4 6 8 Standard Deviation of Return2 (%) % of Market Value • % of Duration • ldtMM•t•a•tEWk.J•t•).ilillMM•i•HDMM•).• 78 . 63 77 ' . 66' 18 17 17 21 2 0 0 0 0 0 3 0 1 16 6 -21 100 b 0 0 1B 0 3 17 27 1 -30 100 2 2 0 () 0 0 0 0 0 0 4 11 0 0 0 0 2 2 2 9 0 ii 0 0 100 100 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2005 Par Value Book Value Market Value Balance September 1, 2005 $7,580,808 $7,580,808 $7,580,808 Deposits: 9/8/2005 6,000,000 6,000,000 6,000,000 Total Deposits 6,000,000 6,000,000 6,000,000 Withdrawals: 9/14/2005 (1,500,000) (1,500,000) (1,500,000) 9/23/2005 (4,000,000) (4,000,000) (4,000,000) 9/26/2005 (900,000) (900,000) (900,000) Total Withdrawals (6,400,000) (6,400,000) (6,400,000) Balance September 30, 2005 $7,180,808 $7,180,808 $7,180,808 (1) Rate 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 (1) This is the annualized yield for the month of August. (1) Yield 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 The September annualized rate was not available as of the date of this report. Book Page IO I Book Page l 02 to 0 0 ;,;-- "cl cffl (1) ...... LIQUID OPER-PIMCO-OCSF07511102 Description CASH & CASH EQUIVALENTS U.S. DOLLAR INTEREST CERTIFICATES OF DEPOSIT -DOMESTIC COMMERCIAL PAPER -DISCOUNT FED HM LOAN BNK -LESS THAN 1 YR FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 FNMA ISSUES -LESS THAN lYR MUTUAL FUNDS REPURCHASE AGREEMENTS TREASURY BILLS -LESS THAN 1 YR U.S. DOLLAR CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES 8 U.S. DOLLAR BANKING & FINANCE U.S. AGENCIES UTILITY -TELEPHONE U.S. DOLLAR FIXED INCOME SECURITIES TOTAL ASSETS -BASE: Asset Summary by Asset Type with Sectors 9/30/2005 Cost Shares Par Base 246,357.72 4,000,000.000 4,000,000.00 4,059,000.000 4,031,013.90 10,500,000.000 10,432,109.89 11,200,000.000 11,074,467.61 11,700,000.000 11,513,492.47 116,678.540 116,678.54 11,800,000.000 11,800,000.00 3,300,000.000 3,239,272.67 56,675,678.540 56,453,392.80 56,675,678.540 56,453,392.80 1,304,000.000 1,316,076.60 700,000.000 691,824.00 1,000,000.000 1,007,520.00 3,004,000.000 3,015,420.60 3,004,000.000 3,015,420.60 59,679,678.540 59,468,813.40 1 • Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Market Value Base % of Total Net Unrealized Gain/Loss Base 246,357.72 0.41% 0.00 4,000,000.00 6.73% 0.00 4,031,013.90 6.78% 0.00 10,432,109.89 17.54% 0.00 11,074,467.61 18.62% 0.00 11,513,492.47 19.36% 0.00 116,678.54 0.20% 0.00 11,800,000.00 19.84% 0.00 3,239,272.67 5.45% 0.00 56,453,392.80 94.93% 0.00 56,453,392.80 94.93% 0.00 1,311,767.80 2.21% -4,308.80 700,000.00 1.18% 8,176.00 1,002,650.00 1.69% -4,870.00 3,014,417.80 5.07% -1,002.80 3,014,417 .80 5.07% -1,002.80 59,467,810.60 100.00% -1,002.80 Workbench Book Page 104 to 0 0 ;,;-- "O I>' (IQ (1) ..... 0 Vl LONG TERM OPER-PIMCO • OCSF07522202 Description CASH & CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES INTEREST MUTUAL FUNDS U.S. DOLLAR CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES U.S. DOLLAR ABS· AIRPLANE RECEIVABLES ABS · HOME EQUITY ABS · STUDENT LOANS BANKING & FINANCE COLLATERALIZED MORTGAGE OBLIGATION FHLMC MULTICLASS FHLMC POOLS FNMA POOLS GNMA MULTI FAMILY POOLS GNMA SINGLE FAMILY POOLS INDUSTRIAL INFLATION INDEXED SECURITIES PVT PLACEMENTS · MORE THN 1 YR U.S. AGENCIES U.S. GOVERNMENTS UTILITY· ELECTRIC U.S. DOLLAR FIXED INCOME SECURITIES TOTAL ASSETS-BASE: Asset Summary by Asset Type with Sectors 9/30/2005 Cost Report ID: GL8251 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Net Unrealized Market Value % of Gain/Loss Shares Par Base Base Total Base -85,650, 707.15 -85,650,707.15 -33.80% 0.00 2,137,597.27 2,137,597.27 0.84% 0.00 750,018.800 750,018.30 750,018.80 0.30% 0.00 750,018.800 -82,763,091.•)8 -82,763,091.08 -32.66% 0.00 750,018.800 -82,763,091.08 -82,763,091.08 -32.66% 0.00 1,600,000.000 1,600,000.•)0 980,000.00 0 .39% -620,000.00 350,900.660 350,900.-:i6 350,826.97 0.14% -73.69 2,587,990.370 2,588,293.65 2,589,931.36 1.02% 1,637.71 41,950,000.000 42,047,079.10 41,986,583.82 16.57% -60,495.28 1,146,403.330 1,146,403.33 1,148,294.90 0.45% 1,891.57 690,309.890 691,045.30 686,147.32 0.27% -4,897.98 48,358.680 47,179.93 49,756.73 0.02% 2,576.80 51,255,389.520 51,904,690 . .!.6 51,146,871.71 20.19% -757,818.75 2,685,580.960 2,677,439.95 2,707,211.30 1.07% 29,771.35 433,268.600 454,204.06 450,854.97 0.18% -3,349.69 2,000,000.000 1,998,188.00 1,999,680.00 0.79% 1,492.00 25,701,262.680 26,247,197.f>l 27,177,768.95 10.73% 930,571.34 752,000.000 826,199.84 826,199.84 0.33% 0.00 29,279,165.720 28,744,251.0:4 28,647,732.46 11.31 % -96,518.78 174,318,126.090 173,391,956.(•7 172,242,683.37 67.98% -1,149,272.70 3,150,000.000 3, 143,840.CO 3,160,657.50 1.25% 16,817.50 337,948,756.500 337,858,869.!:,0 336,151,201.20 132.66% -1, 707,668.60 337,948,756.500 337,858,869.80 336,151,201.20 132.66% -1, 707,668.60 338,698,775.300 255,095,778.72 253,388,110.12 100.00% -1,707,668.60 1 Workbench • • • Book Page 106 YLDANAL YIELD ANALYSIS PAGE 1 OCSF07511102 2005/09/30 RUN DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13,36,30 ===~===================================================================================~=~=============================== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL --------------------------------------------------------------------------·------------------- CASH & CASH EQUIVALENTS 1,100,000.00 BANKAMERICA CORP DISC .ooo .ooo 99,068 1,089,742.50 1.93 0660P0YM9 11/21/2005 1,089,742,50 1.84 1,600,000.00 nANKAMERICA CORP DISC .000 .000 99.068 1,585,oso.oo 2.82 0660POZ71 12/07/2005 1,585,080,00 2.68 1,soo,000.00 CITIBANK NA NY BRH INSTL C/D .000 3,720 100,000 1,500,000.00 2.66 17304TXA6 3.720% 11/09/2005 OD OB/09/05 1,500,000.00 2.53 1,359,000.00 DU PONT DE NEMOUR DISC .ooo .ooo P-1 99,793 1,356,191.40 2,41 26354AXJB 10/18/2005 1,356,191.40 2.29 5,400,000.00 FEDERAL HOME LN BK CONS DISC .ooo ,000 P-1 99.973 5,398,569.00 9, 60 0:, 313385MMS MAT 10/03/2005 A-1+ 5,398,569.00 9, 12 0 0 2,900,000.00 FEDERAL HOME LN BK CONS DISC N .000 .ooo P-1 99,145 2,875,193.72 5.11 :;,,;- '"O 3133B5ND4 MAT 10/19/2005 A-1+ 2,875,193.72 4.85 p) UQ ('1) 1,900,000.00 FEDERAL HOME LN BK CONS DISC .ooo .ooo P-1 98,104 1,863,979.17 3.31 -313385SQO A-1+ 1,863,979.17 3.15 0 -.I 300,000.00 FEDERAL HOME LN BK CONS DISC N .ooo .ooo P-1 98,123 294,368,00 .52 313385TK2 MAT 02/22/2006 A-1+ 294,368.00 .50 3,300,000.00 FEDERAL HOME LN MTG CORP DISC .000 .ooo P-1 99.973 3,299,125.50 5.86 313397MMO MAT 10/03/2005 A-1+ 3,299,125.50 5.57 2,000,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 98,593 1,971,865.00 3.50 313397NS6 MAT 11/01/2005 A-1+ 1,971,865.00 3.33 1,100,000.00 FEDERAL HOME LN MTG CORP DISC .000 .ooo P-1 99.092 1,090,015.03 1.93 313397NZO MAT 11/08/2005 A-1+ 1,090,015.03 1.84 1,900,000.00 FEDERAL HOME LN MTG CORP DISC .000 .ooo P-1 98.254 1,866,820,72 3,32 313397RQ6 MAT 01/10/2006 A-1+ 1,866,820.72 3.15 2,200,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.183 2,160,018.36 3.84 313397TR2 MAT 02/28/2006 A-1+ 2,160,018.36 3.65 100,000.00 FEDERAL HOME LN MTG CORP DISC .ooo ,000 P-1 98.089 686,623.00 1.22 313397UF6 MAT 03/14/2006 A-1+ 686,623.00 1.16 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2005/09/30 RUN DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13.36.30 ======= ---------=--------:::s=~~======:::: ---= =-= PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------------------------------------·---------------------------------------- 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .ooo P-1 9B.367 3,934,682.22 7.00 313589NL3 MAT 10/26/2005 A-1+ 3,934,682.21. 6.64 3,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo ,ODO P-1 98.794 2,963,B27.~0 5,27 313589QS5 MAT 12/19/2005 A-1+ 2,963,827,50 5.00 900,000.00 FEDERAL NATL MTG ASSN DISCOUNT ,000 .ooo P-1 98,270 !184,427.75 1. 57 313589SV6 MAT 02/08/2006 A-1+ 88'1,427,75 1.49 3,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .000 P-1 98,172 3,730,555.00 6.63 313589TS2 MAT 03/01/2006 A-1+ 3,730,555,00 6.30 3,300,000.00 UNITED STATES TREASURY BILL .ooo .ooo P-1 98.160 3,239,272,67 5.76 912795WT4 0.000% 03/16/2006 DD 09/15/05 A-1+ 3,239,272.67 5.47 ti:, 2,500,000.00 WELLS FARGO BANK NA INSTL C/D .000 3,760 100.000 2,soo,000.00 4,44 0 9497P23M7 3.760% 10/13/2005 DD 09/27/05 2,soo,000.00 4.22 0 ;,::-- '"C 11,soo,000.00 CS FOB CAT 2 REPO REPO ,000 3.250 100.000 11,aoo,000.00 20.99 p, 994410490 03,250% 10/03/2005 DD 09/30/05 11,eoo,000.00 19.93 {IQ Cl) 116,678.54 DREYFUS TREASURY CASH MGMT .ooo 3.400 AAA 100.000 116,678.54 ,20 0 996085247 AAA 116,678,54 ,20 00 --------------------------------- TOTAL CASH & CASH EQUIVALENTS ,000 .397 56,207,035.08 100.00 56,207,035,08 94,91 FIXED INCOME SECURITIES 15,000,00 ASSOCIATES CORP NORTH AMER NT-.000 6.359 AAl 100.250 15,112.95 .49 046003FM6 6,375% 11/15/2005 DD 11/21/95 AA-15,037,50 ,OJ 75,000.00 BEAR STEARNS COS INC NTS .000 6,875 Al 100,000 75,422.25 2,48 073902AU2 6,875% 10/01/2005 DD 10/05/95 A 75,000.00 ,13 112,000.00 BEAR STEARNS COS INC GLOBAL NT .ooo 3,019 Al 99,375 111,364 ,96 3.69 073902CB2 3,000% 03/30/2006 DD 02/19/03 A 111,300.00 ,19 500,000.00 CIT GROUP INC GLOBAL SR NT .000 4,129 A2 99,910 499 1 B20,00 16, 57 125577AN6 4.1251 02/21/2006 DD 02/20/03 A 499,550.00 .84 tti 0 0 :,;-- 'i;j po (JQ (1) -0 \0 YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING YIELD ANALYSIS 2005/09/30 PAGE RUN DATE RUN TIME 3 10/05/05 13.36.30 ------=·=-.:;-=-======.:.=::.:;.-~=-==:==-======--=====-=-=· .... -·-----------------~------= . -. PAR VALUE YTM AT CURRENT MOODY MAR1\ET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------------· ---------------------------------------------------- 700,000,00 FEDERAL HOME LN MTG CORP MTN .000 2.375 AAA 100,000 691,824,00 23,22 3128X1CU9 2,375% 05/19/2006 DD 05/19/03 AAA 100,000.00 1.18 500,000.00 HOUSEHOLD FIN CORP HT .ooo 7.131 Al 101.671 511,620.00 16 .86 441812FT6 7.250% 05/15/2006 DD 05/15/96 A 508,355.00 .86 102,000.00 MERRILL LYNCH & CO INC NT .ooo 6,218 M3 100.515 102,736.44 3,40 590188FC7 6.250% 01/15/2006 DD 01/20/94 A+ 102,525.30 .17 1,000,000.00 SOUTHWESTERN BELL TEL CO MED .000 6.543 A2 100,265 1,001,s20.oo 33.26 B4534EDS4 6,560% 11/15/2005 DD 11/15/96 A 1,002,650.00 1.69 --------------------------------------------TOTAL FIXED INCOME SECURITIES .ooo 4,502 3,015,420.60 100.00 3,014,417.80 5.09 ---------------------------------------------TOTAL .000 .466 59,222,455,68 100.00 59,221,452.88 100.00 --··---==== YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 =============================================================================================-=-===-~=-========c=====~==--= PAR VALUE YTM AT CURRENT MOODY MARKET TOTM, COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ------------------------------------------------------------------------------------- CASH & CASH EQUIVALENTS 750,018,BO DREYFUS TREASURY CASH MGMT .ooo 3,400 AAA 100.000 750,018.80 100.00 996085247 AAA 750,018.80 .22 .oo BSDT-LATE MONEY DEPOSIT ACCT .ooo .ooo .000 .oo .oo 996087094 .oo .oo ---------------------------------- TOTAL CASH & CI\Sf! EQUIVALENTS .000 3,400 750,018.80 100.00 750,018.80 ,22 FIXED INCOME SECURITIES t,j 752,000.00 AIG SUNAMERICA GLOBAL REGS .000 5,325 109,867 826,199.84 '24 0 lJ00907AAO 5,850% OB/01/200B DD OB/08/01 826,199,84 ,25 0 :,,;-- "O 600,000 .00 CIT GROUP INC SR NT .000 7 ,093 A2 103,982 632,688.00 ,18 "' 125581AA6 7.375% 04/02/2007 DD 04/01/02 A 623,889.82 ,19 OQ (1) 1,500,000.00 CIT GROUP INC NEW SR NT .ooo 4,310 A2 100,343 1,so1,oos.oo .44 0 l25581AFS VAR RT 09/22/2006 DD 09/23/03 A 1,505,145.00 .45 3,300,000.00 CIT GROUP me MTN fSR00092 ,000 4.023 A2 100,250 3,300,000.00 ,9B 12560PDVO VAR RT 05/23/2008 00 05/25/05 A 3,308,250.00 .98 1,600,000,00 CITIGROUP INC GL00AL SR NT .000 3,751 Ml 99,9B4 l,600,000.00 ,47 172967CW9 VAR RT 05/02/2008 DD 05/02/05 AA-1,599,744.00 ,47 1,000,000.00 FEDERAL HOME LN MTG CORP MTN .ooo 6.239 AAA 100,182 1,002,656.25 ,29 3128Xl6R3 6,2501 11/14/2013 DD 11/14/03 AAA 1,001,e20.oo .30 10,000,000.00 FEDERAL HOME LN MTG CORP MTN ,000 4,106 AAA 97.420 9,993,100.00 2,89 3128X3WY5 4.0001 09/22/2009 DD 09/22/04 AAA 9,742,000.00 2,89 2,100,000.00 FEDERAL HOME LN BKS CONS BO .ooo B,B95 AAA 93.315 2,565,820,00 .74 3133X3SQ7 VAR RT 02/27/2012 OD 02/27/04 AAA 2,519,504 ,65 .75 3,000,000.00 FEDERAL HOME LN BKS CONS BO .000 4,104 AAA 97,457 2,882,343.75 .86 31339XI<N3 4,0001 03/18/2011 DD 06/19/03 AAA 2,923,710,00 ,87 48,358.68 Fl!LMC GROUP ft7B-6064 .ooo 4,172 AAA 102,891 47,179.93 .01 3134BSWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 49,756,73 .01 yt,DANAL YIELD ANALYSIS PAGE 5 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 =-=-==-=-~-=---=====-===~===================~===========--------------------------------------------------------------------- PIIR Vl\LUE YTM AT CURRENT MOODY MIIRKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD 5-P PRICE MARKET VALUE % TOTAL ---------------------------------------·------------------------·------------ 2,350,000.00 FEDERAL NATL MTG ASSN DEBS .000 5.220 AAA 100.582 2,385,461.50 .70 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 2,363,677.00 .70 6,Boo,000.00 FEDERAL NATL MTG ASSN DEBS .000 3.271 MA 95,544 6,575,736.00 1.93 31359MUQ4 3.125% 03/16/2009 DD 03/16/04 AAA 6,496,992.00 1.93 551,818.59 FNHA POOL #0254510 .000 5,011 AAA 99.784 568,373.l.4 .16 31371KVB4 5.000% 11/01/2017 DD 10/01/02 AAA 550,626.66 .16 118,409.66 FNMA POOL #0254631 .ooo 5,011 1\1\A 99,783 121,961.96 .03 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 118,152.71 .04 107,194.40 FNMA POOL 10254760 .ooo 5,011 111111 99.776 110,410.23 .03 31371K5V9 5,000% 06/01/2018 DD 05/01/03 AAA 106,954.28 .03 to 48,963.40 FNMA POOL f0254866 ,000 5.012 AAA 99.765 50,432.31 ,01 0 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 48,848.34 .01 0 :,,;-- 'i:j 363,750.22 FNMA POOL #0254907 .ooo 5.012 AAA 99.761 363,750.22 • 10 po 31371LDLO 5.000% 10/01/2018 DD 09/01/03 AAA 362,880.86 .11 (JO (1) 259,190.10 FNM71. POOL 40254953 .ooo 5,012 MA 99.757 262,510.98 .07 31371LE21 5.000% 11/01/2018 DD 10/01/03 AAA 258,560,27 .08 698,081.44 FNMA POOL #0254987 .ooo 5,010 AAA 99.806 707,025.61 ,20 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 696,727.39 .21 113,254 ,48 FNMA POOL #0323980 .ooo 5.828 AAA 102.946 118,244,76 ,03 31374T2MO 6.000% 04/01/2014 DD 09/01/99 AAA 116,590.96 ,03 85,676,72 FNMA POOL #0357430 .ooo 5.011 AAA 99,772 86,640,58 .02 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 85,481.38 ,03 33,374.37 FNMA POOL #0456482 .000 5.828 MA 102.945 34,844,91 .01 3l381CCT2 6,000% 02/01/2014 DD 02/01/99 AAA 34,357.25 .01 92,283.95 FNMA POOL 10509649 .ooo 5.828 AAA 102.948 96,350.21 ,02 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 95,004.48 ,03 BB,310,57 FNMA POOL 10535451 .000 5,828 AAA 102.948 92,201.76 .02 31384VZQ8 6,000% 06/01/2015 DD 07/01/00 AAA 90,913,97 ,03 255,211.72 FNMA POOL 1'0555363 .ooo 5.0ll AAA 99.783 262,868.06 .07 31385W5Yl 5.000% 04/01/2018 DD 03/01/03 AAA 254,657.91 ,OB YLDM.JAL YIEI,D ANALYSIS PAGE 6 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME : 13.36,30 ===:====================~=========~===========~============================================================================= PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------------------------------------------------------- 212,847.'-7 FtH1A POOL f0555545 ,000 s.011 AAA 99.783 219,232.70 ,06 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 212,385.39 .06 733,416.34 FNMA POOL #0555621 .ooo s .010 AAA 99,806 741,667.26 .21 31385XG68 5.000% 07/01/201B DD 06/01/03 AAA 731,993.75 .22. 408,235.84 FflMA POOL #068.1309 .000 5.011 AAA 99.783 420,482.9] • l 2 31391Y354 5,000% 02/01/2018 DD 02/01/03 AAA 407,349.97 ,12 48,880.96 FNMA POOL 40681334 .000 5,011 AAA 99.783 50,30.39 .01 3l391Y4Tl 5.000% 02/01/201B OD 01/01/03 AAA 48,774.89 ,01 294,761.12 FNMA POOL #0684798 .000 5,496 AAA 100.072 294,507,82 ,08 31400DX31 5.500% 03/01/2033 DD 03/01/03 AAA 294,973.35 ,09 O:i 262,876.33 FNMA POOL #0684908 .ooo 5,011 AAA 99. 776 266,2~4.46 .07 0 31400D3Rl 5,000% 06/01/201B OD 05/01/03 AAA 262,287.49 .08 0 ;,<;"" "t1 143,723.05 FNMA POOL 10685200 .ooo 5,011 AAA 99.783 145,564.52 .04 p., 31400EGH7 5.000% 03/01/2018 DD 03/01/03 AAA 143,411.17 ,04 OQ (t) -217,293.79 FNMA POOL ff06863l.8 .ooo 5 ,011 AAA 99.783 223,812,60 .06 -31400FPB7 S,000% 03/01/2018 DD 03/01/03 AAA 216,822,26 .06 tv 86,775.78 FNMA POOL #068B739 .ooo 5.011 AAA 99. 776 89,379.05 ,02 3l400JEL9 5.000% 06/01/201B DD 06/01/03 AAA 86,581.40 ,03 79,846.91 FNMA POOL #0689859 .ooo 5,011 AAA 99,776 80,869.95 ,02 31400KMG8 5.000% 05/01/2018 DD 05/01/03 AAA 79,668.05 .02 451,478,80 FNMA POOL #0693834 .ooo 5,011 AAA 99,783 465,023.14 .13 31400PY74 5.000% 03/01/2018 DD 03/01/03 AAA 450,499.09 ,13 168,742.93 FNMA POOL t0695852 .ooo 5,011 AAA 99. 779 173,805.22 .05 31400SBVO 5.000% 05/01/2018 DD 05/01/03 AAA 168,370.01 ,05 607,602.98 FNMA POOL #0695889 ,ODO 5.011 AAA 99,779 625,831.08 , 18 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 606,260,18 .18 168,193.43 FNMA POOL f0702210 .ooo 5,010 AAA 99,B06 173,239.24 ,04 31401ADP9 5,000% 05/01/2018 DD 05/01/03 MA 167,867.19 .os 100,600.88 FNMA POOL 10702328 .ooo 5,011 AAA 99,779 101,889.82 .02 31401AH02 5.000% 05/01/2018 DD 04/01/03 MA 100,378.55 ,03 YLDANII.L YIELD ANALYSIS PAGE 7 OCSF07522202 2005/09/30 RlJN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RIJN TIME 13.36.30 =======---=======================================================;=---------------------=----------------------------------- PAR VALUE YTM AT CURREUT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------·-------------------------------··------------------- 222,556.44 FNMA POOL #0709148 .ooo 5,011 AAA 99.772 229,233,15 .06 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 222,049.01 .07 481,798.25 FNMA POOL 10709360 .ooo S .011 AAA 99.772 487,971.29 .14 3H01JB56 5,000% 07/01/2018 DD 06/01/03 AAA 4B0,699.75 .1'1 84,910,19 FNMA POOL 110709826 .000 5,011 AAA 99.776 95,998.10 .02 31401JSP4 5.000% 06/01/2018 DD 06/01/03 AAA 84,719.99 .03 177,732.17 FNMA POOL #0709917 .000 s.ou AAA 99. 776 180,009.37 ,05 31401.JV.14 5.000% 06/01/2018 DD 06/01/03 l\AA 177,334.05 .os 442,265.07 FNMA POOL #0710235 .ooo s.011 AAA 99.772 455,533.05 .13 31401KBCB 5.000% 06/01/2018 DD 06/01/03 AAA 441,256.71 .13 tl:i 181,120,97 FNMA POOL #0713365 .000 s.011 AAA 99.772 183,441.57 .os 0 3l40lNQSl 5,000% 07/01/2018 DD 07/01/03 AAA 180,708.01 .as 0 ;,;- '"O 552,900.74 FNMA POOL J0720319 .ooo 5.011 AAA 99.772 559,984.80 .16 Ill 3l401WG45 5,000% 07/01/2018 DD 07/01/03 AAA 551,640.13 ,16 OQ ('b l,B21,128.38 FNMA POOL #0720369 .000 5.010 AAA 99.806 l,B78,B52,23 • 54 l,J 31401WJNO 5.0001 06/01/2018 DD 06/01/03 AAA 1,820,590.15 .54 236,477,37 FNMA POOL 40721629 ,000 s.011 AAA 99. 772 243,571.71 .01 Jl401XVW4 5,000% 07/01/2018 DD 06/01/03 AAA 235,938.20 .07 182,401. H FUMA POOL t0723487 .000 5.011 AAA 99,772 184,453.78 .05 31402AXQ4 5.000% 06/01/2018 DD 06/01/03 AAA 181,985.86 .05 2,751,547.34 FNMA POOL J0725530 .000 5 .012 AAA 99.760 2,788,951.17 .81 31402DA75 5.000% 06/01/2019 DD 05/01/04 AAA 2,744,952.10 .81 317,139.45 FNMA POOL 10729601 .ooo s.012 AAA 99.768 321,202.91 ,09 31402HRW3 5.000% 07/01/2018 DD 07/01/03 AAA 316,403.69 .09 29,251.45 FNMA POOT, 10732873 .ooo s.012 AAA 99,757 29,626.22 .00 31402MFN5 5.000% 11/01/2018 DD 10/01/03 AAA 29,180.37 .01 928,944.58 FNMA POOL 10735227 .ooo 5.503 AAA 99.952 936,782.55 .27 31402QYY1 5.500% 02/01/2035 DD 01/01/05 AAA 928,498.69 .28 496,855.20 FNMA POOL lt0735856 .ooo s.012 AAA 99.761 501,668.48 • 14 31402RQHS 5,000% 08/01/2020 DD 08/01/05 AAA 495,665.37 • 15 YLD/\NAL YIELD /\N/\LYS1S PAGE II OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERJ1 OPERATING RUN TIME 13.36.30 ======================~~===================~=================~===-==~===-------=----------------===-------=======---==~===== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------------------------------------------------·--- 490,813.29 FtlMA POOL f0737130 .ooo 5.012 AAA 99.765 497,101.83 ,14 31402S4P9 5,000% 10/01/2018 DD 10/01/03 AAA 4B9,659.88 ,15 421,976.07 FtlMA POOL #0738211 .ooo 5.010 AAA 99.806 427,382.67 ,12 31402UDQ2 5,000% 10/01/201B DD 10/01/03 AAA 421,157.57 ,13 153,01.l.21 FNMA POOL J0738487 .ooo 5.012 AAA 99.757 l 54,971.67 .04 31402UNC2 5.000% 10/01/2018 DD 10/01/03 AAA 152,639.39 ,OS 1,795,830.00 FrlMI\ POOL ~0740457 .ooo 5.010 AAA 99.806 1,820,242.06 .53 31402WTN8 5.000% 10/01/2018 DD 10/01/03 AAA 1,792,346.66 ,53 636,922.36 FNMA POOL #0740471 .ooo 5.010 MA 99.806 645,0R2.91 .18 3l402WT40 5.000% 10/01/2018 DD 10/01/03 AAA 635,686.93 ,19 t:t1 616,998.69 FtlMA POOL f0740748 .ooo 5,012 AAA 99.765 624,903.98 .10 0 31402W587 5,000% 10/01/2018 DD 11/01/03 AAA 615,548,74 .18 0 ;,;- "O 29,382.10 FNMA POOL #0743868 .ooo 5.010 MA 99.806 29,758.56 .oo i:>l 31403BMR1 5.000% 11/01/2018 DD 10/01/03 AAA 29,325.11 ,01 (JQ ('1) 858,521.90 FNMA POOL #0744008 .ooo 5.011 MA 99. 776 869, 521,72 .25 ~ 31403BR54 5.000% 07/01/2018 DD 09/01/03 AAA 856,598.81 .25 129,472,89 FNMA POOL 40744316 .000 5,010 AAA 99,80~ 131,131.76 .03 314 03B37.4 5,000% 09/01/2018 DD 09/01/03 AAA 129,221.75 ,04 238,096.46 FNMA POOL #07479H .000 5,012 AAA 99.757 241,147.08 .07 31403F3XO 5,000% 11/01/2018 DD 11/01/03 AAA 237,517.89 .07 149,335.97 FNMA POOL #0748400 .ooo 5,010 AAA 99.806 151,249.34 ,01) 31403GNR9 5.000% 08/01/2018 DD 09/01/03 AAA 149,046,31 ,04 783,380.36 FNMA POOL 11'0748899 • 000 5.010 AAA 99.806 793,417.42 .23 31403G7LO 5,000% 12/01/2018 DD 11/01/03 AAA 781,860,85 .23 1,691,464.63 FNMA POOL #0750377 .ooo 5,010 AAA 99.806 1,713,136.52 .50 31403JUA2 5,000% 11/01/2018 DD 11/01/03 AAA 1,688,183.73 .so 1,443,142.92 FNMA POOL 10750380 .ooo 5.010 AAA 99.806 1,461,633.20 .42 31403JUD6 5,000% 11/01/2018 DD 11/01/03 AAA 1,440,343.68 .43 137,921.53 FNMA POOL #0750445 .000 5,010 AAA 99,806 139,688.65 .04 31403JWE2 5,000% 11/01/2018 DD 11/01/03 AAA 137,654.01 ,04 YLDANAL YIELD ANALYSIS PAGE 9 OCSF0757.2202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13,36.30 ------=-==-==--===========================-=-=--=--=.=-=-======-==----=----=---=--=~================~=========== PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL --------------------------------------------------------------------------------------------- 651,709.85 FNMA POOL 10751960 ,000 5,010 AAA 99,806 660,059,90 ,19 31403LMH1 5,000% 12/01/2018 DD 11/01/03 AAA 650,445.74 ,19 677,197,(11 FNMA POOL J0753425 .000 5,012 AAA 99,754 685,027.09 .20 31403NA23 5,000% 11/01/2018 DD 11/01/03 AAA 675,531.11 .20 470,535.10 FNMA POOL 10755165 .ooo 5.012 AAA 99.754 476,563.83 .13 31403Q6A3 5.000% 12/01/201B DD 11/01/03 AM 469,377.58 .14 808,306,09 FNMA POOL # 0756372 ,000 5,012 AAA 99,754 817,652.13 • 23 31403SJR8 5,000% 11/01/2018 DD 11/01/03 AAA 806,317,66 .24 2,760,305.69 FNMA POOL 10784251 .000 5,014 AAA 99.713 2,797,828.60 ,81 31405BH46 5,000% 11/01/2019 DD 11/01/04 AAA 2,752,383.61 .82 l:l:j 806,343.12 FUMA POOL l0789670 .ooo 5,015 AM 99. 710 817,304.35 ,23 0 3l405RJP4 5,000% 12/01/2019 DD 12/01/04 AAA 804,004,72 .24 0 ;;,;-- "tj 813,626.22 FNMA POOL #0792432 .ODO 5,014 AAA 99,717 B24,686,45 .24 ~ (IQ 31405LLM9 5,000% 10/01/2019 DD 10/01/04 AAA 811,323.66 ,24 (1) ...... 4,588,959.79 FNMA POOL #0792437 .ooo 5 .014 AAA 99. 717 4,508,959.79 1.36 ...... V, 31405LLS6 5.000% 10/01/2019 DD 10/01/04 AAA 4,575,973.03 1.36 839,644.48 FNMA POOL ¼0794195 .ooo 5.014 AAA 99. 713 851,058.41 ,24 31405NKG9 5,000% 11/01/2019 DD 11/01/04 AAA 837,234.70 .25 1,773,353.78 FNMA POOL #0797160 .000 5,015 MA 99,710 1,797,460,30 ,52 31405RTR7 5,000% 12/01/2019 DD 12/01/04 AAA 1,768,211.05 ,52 7B5,092,74 FNMA POOL #0797408 .ooo 5.015 AAA 99.710 795,765.10 ,23 31405R3R5 5.000% 12/01/2019 DD 12/01/04 AAA 782,815.97 ,23 773,590.35 FNMA POOL l/0797414 .ooo 5.015 AAA 99. 710 784,106.33 .22 31405R3X2 5.000% 12/01/2019 DD 12/01/04 AAA 771,346.94 ,23 354,291.03 FNMA POOL i0800370 .000 5,015 AAA 99. 710 353,903.53 .10 31405VFKB 5,000% 12/01/2019 DD 11/01/04 AAA 353,263.59 .10 301,156.66 FNMA POOL 40800998 .000 5,503 AAA 99.940 300,897,87 .OB 31405V3F2 5.500% 11/01/2034 DD 11/01/04 AAA 300,975.97 .09 2,886,926.75 FNMA POOL 10803923 .ooo 5.015 AAA 99,710 2,926,170.91 .85 3l406AD41 5.000% 12/01/2019 DD 12/01/04 AAA 2,s7B,554.66 ,85 YLOANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUtl TIME 13.36.30 ==c==-·==-==-~-=-=-·---·-===-= -------== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAI, COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARRET VALUE % TOTAL ---------------------------------------------------.-~-------------------------------- 2,832,Hl.77 FNHA POOL 10807711 .ooo 5.015 AM 99. 710 2,870,965.54 .94 31406EKY9 5,000% 01/01/2020 DD 01/01/05 AAA 2,824,247.63 .B4 331,304.46 FNMA POOL tOR08933 .000 5,503 AAA 99.940 331,019,74 .09 31406FV24 5.500% 01/01/2035 DD 01/01/05 AAA 331,105.68 .10 313,169.30 FNMA POOL •0809350 .ooo 5,503 AAA 99,940 312,900,17 .09 31406GEX3 5.500% 12/01/2034 DD 01/01/05 AAA 312,981.40 ,09 324,130,14 FNMA POOL f0814930 .ODO S.500 AAA 100.008 323,851.59 ,09 31406NLKB 5.500% 04/01/2035 DD 04/01/05 AAA 324,155.59 .10 323,127,03 FNMA POOL 40815923 .ooo 5,503 AAA 99,940 322,849.35 ,09 31406PPG8 5.500% 03/01/2035 DD 03/01/05 AAA 322,933.15 .10 0::, 611,823.76 FNMA POOL f0816246 .000 5.015 AAA 99. 710 611,154.57 , 111 0 31406PZK8 5.000% 03/01/2020 DD 03/01/05 AAA 610,049.47 .18 0 :,<;" ""' 318,736.ll. FNMA POOL #0819566 .ooo 5.503 MA 99,940 318,462.20 .09 I>) 31406TQT1 5.500% 04/01/2035 DD 04/01/05 AAA 318,544.87 ,09 (JQ (I) 322,925.62 FNMA POOL i082273l .000 5.503 AM 99.940 322,648.10 .09 °' 31406XA85 5.500% 05/01/2035 DD 05/01/05 AAA 322,731.86 .10 331,015.92 FNMA POOL t0823232 .000 5.503 AAA 99.940 330,731.44 .09 31406XSV5 5,500% 06/01/2035 DD 05/01/05 AAA 330,817.31 .10 968,561.00 FNMA POOL #0B23787 .ooo 5.015 AAA 99,710 967,501.63 .28 31406YF47 5.000% 05/01/2020 DD 05/01/05 AAA 965,752,17 ,29 7,890.69 GNMA POOL il0421389 .ooo 6,244 AAA 104.096 8,281.53 .oo 36206UC23 6,500% 04/15/2026 DD 04/01/96 AAA B,213.89 .oo 11,920.54 GNMA POOL 10449851 .ooo 6,255 AAA 103,911 12,510.97 .oo 36208FWLO 6,500% 01/15/2028 DD 01/01/9B AAA 12,386.72 .oo 32,280.92 GNMA POOL f0466845 .ooo 6,245 AAA 104,076 33,879.84 .oo 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 33,596.69 ,Ol 39,841.03 GNMA POOL t0468052 .ooo 6.246 AAA 104.073 41,814.40 .01 36209C5H4 6.500% 07/15/2028 DD 07/01/98 AAA 41,463.76 ,01 111,442.84 GNMA POOL 10476041 .ooo 6,245 AAA 104.076 116,788.63 ,OJ 36209MZE7 6,500% 06/15/2028 DD 06/01/9B AAA 115,985,25 ,03 YLDANl\L YIELD ANALYSIS PAGE 11 ocsrn7522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 ======c=-=----=====~==-============-===================~~=====~===------=~=---=------=-=---=--==-----=---------------=-- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------·---~-------------------------------------·----------------------------- 118,937.66 GNMA POOL #0478626 .ooo 6.247 AAA 104.05B 124,642.95 .03 36209QVT9 6.500% 01/15/2029 DD 01/01/99 AAA 123,764.15 .04 28,413.09 GNMA POOL J04R0598 .ooo 6,246 l\l\A 104,064 29,776.02 ,00 36209SJF6 6,500% 10/15/2028 DD 10/01/98 AAA 29,567.80 ,01 5,802.99 GNI-IA POOI, #0512235 ,000 6,248 AAA 104.030 6,090.42 ,OD 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 6,036,05 .oo 76,738.84 GNMA POOL tOSl4326 .ooo 6,248 AAA 104,041 80,419.90 ,02 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 79,839.86 ,02 131,049.75 GNMA II POOL #0080395 .000 4.331 AAA 101.014 129,862,]2 .03 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 132,378.59 ,04 IJ:1 1,159,755.30 GNMA II poor, f080408X .000 4.331 AAA 101.014 1,147,976.53 ,34 0 36225CN28 VAR RT 05/20/2030 DD 05/01/00 AAA 1,171,515.22 ,35 0 ;,;-' ""O 1,117.,493.64 GNMA II POOL #0080965 ,000 4.478 AAA 100.494 1,111,798.32 .33 ~ 36225DCB8 VAR RT 07/20/2034 DD 07/01/04 AAA 1,117,989.36 .33 ('b 6,soo,000.00 GENERAL ELEC CO NT .ooo 3.701 AAA 99,984 6,502,203.50 1. 93 -...) 369604AZ6 VAR RT 10/24/2005 DD 10/24/03 AAA 6,498,960 .00 1.93 2,000,000.00 GOLDMAN SACHS GRP MTN #TR00203 ,000 4,116 AA3 100.109 2,001,900.00 .59 38141EJL4 VAR RT 03/30/2007 DD 04/01/04 A+ 2,002,180.00 ,59 800,000.00 GOLDMAN SACHS GRP MTN #TR00207 ,000 3,959 AA3 100.531 800,000.00 .23 38141EJQ3 VAR RT 07/23/2009 DD 07/23/04 A+ 804,248.00 ,24 4,250,000.00 GOLOMAU SACIJS GRP ,000 4.290 AA3 100.234 4,250,000.00 1.26 38143UBD2 VAR RT 06/28/2010 DD 06/28/05 A+ 4,259,945.00 1.26 250,000,00 HSBC BK USA MTN ~SR00012 .000 3.985 AA2 100.125 250,170.00 .07 4042Q0AM1 VAR RT 09/21/2007 DD 09/21/04 AA-250,312.50 .07 2,100,000.00 HSBC FIN CORP NT ,000 4.000 Al 100.000 2,100,000.00 .80 40429CCU4 VAR RT 09/15/2008 DD 09/15/05 A 2,100,000.00 .80 J,000,000.00 HSBC FIN CORP MTN f TR 00002 .ooo 3.899 Al 100.031 3,000,000.00 .89 40429JAB3 VAR RT 02/28/2007 DD 03/29/05 A 3,000,930.00 .89 3,000,000.00 HSBC FIN CORP MTN t TR 00007 ,000 4,009 Al 100.015 2,995,830.00 .89 40429JAG2 VAR RT 05/10/2010 DD 05/10/05 A 3,000,450.00 .89 YLDJ\NAL YIELD AHALYSIS PAGE 12 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 ========================================================================================================================== PAR VALUE YIM AT CURRENT MOODY MAR.KET TOT/\T, COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD 5-P PRICE MARKET VALUE % TOTAL -----------------------·-------------------------------------------------------------------------- 2,500,000.00 HOUSEHOLD FIN CORP llT .ooo 7.058 1\.2 102.015 2,591,500.00 .75 441B12GH1 7.200% 07/15/2006 DD 07/15/99 A 2,550,375.00 .76 2,000,000.00 MORGAN STANLEY .000 3.697 AA3 100,109 2,002,980.00 ,59 61746BAJ<2 VAR RT 01/12/2007 DD 01/13/04 A+ 2,002,100.00 .59 3,200,000.00 HORGAN STANLEY NT .ooo 3.975 AA3 97.4B4 3,149,248.00 .92 61746BALO 3.875% 01/15/2009 DD 01/13/04 A+ 3,ll9,4BB.OO . 93 650,000.()0 MORGI\N STANLEY NT .ooo 3.809 M3 100,031 650,000.00 ,19 61746SAZ2 VAR RT 11/09/2006 OD 11/12/04 A+ 650,201.50 .19 1,400,000,00 PUBLIC SVC ELEC & GAS CO 1ST .ooo 4,085 A3 100.000 1,100,000.00 , 41 744567FN3 VAR RT 06/23/2006 DD 06/25/04 A-1,400,000.00 ,42 to 350,900,66 RESIDENTIAL ASSET 03-RSll AIIB .000 4,161 AAA 99.979 350,900,66 .10 0 760985KB3 VAR RT 12/25/2033 DD 12/30/03 AAA 350,826.97 ,10 0 ;,;- "C 1,000,000.00 SLH CORP HTN t TR 00067 .ooo 3,B4B A2 100,312 1,805,040,00 .53 I>' 78442FCUO VAR RT 07/25/200B DD 07/26/04 A 1,805,616,00 .54 (JQ (1) -2,587,990.37 SLM STUDENT LN TR 04-6 A2 .ooo 3.6B7 AM 100.075 2,588,293.65 ,77 -00 7B442GMA1 VAR RT 01/25/2013 DD 06/30/04 AAA 2,589,931.36 ,77 2,300,000.ori SALOMON SMITH MTN t SR 00206 .ooo 3,935 AAl 100.203 2,308,514,60 .68 79548EJPB VAR RT 05/18/2007 DD 05/28/02 2,304,669.00 , 68 2,498,126.09 SBA GTD Df.V PARTN 200l-20C 1 .ooo 5,985 AAA 105.935 2,498,126.09 .7B 83162CLJO 6.340% 03/01/2021 AAA 2,646,389.87 .79 1,146,403.33 SBA GTD PARTlf CTFS SBIC-PS 01 .ooo 6,629 AAA 100.165 1,146,403.33 .34 B31641004 6.640% 02/10/2011 DD 02/21/01 NR 1,148,294.90 .34 .2,000,000.00 TOYOTA MTR CR MTN JTR00413 .000 3.730 AAA 99.984 1,998,188.00 ,59 89233PTE6 VAR RT 09/18/2006 DD 03/16/05 AAA 1,999,680.00 .59 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .ooo 11.153 WR 61.250 1,600,000.00 ,29 909317BC2 6,831\ 03/01/2010 DD 08/22/01 A-980,000.00 ,29 2,539,551.00 US TREASURY INFLATION INDEX NT .000 3.424 AAA 105.875 2,754,748.60 .79 9128273T7 3,625% Ol/15/2008 DD 01/15/98 AAA 2,689,749.62 .BO 11., 317,160. 00 US TREASURY INFLATION INDEX NT .ooo 3,571 AAA 108.500 12,497,136,76 3.65 9128274Y5 3,B75% 01/15/2009 DD 01/15/99 AAA 12,279,118.60 3.64 YLOJ\Nl\L YIELD ANALYSIS PAGE 13 OCSFD7522202 2005/09/30 RUN DATE 10/05/05 DISTRIC1.': LONG-TERM OPERATING RUN TIME 13.36.30 ---'--------------=c:..::::...= ___________ ,_ = =--= - PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL -----------------------------------------------------------------------------------------·--- 3,900,000,00 US TREASURY NOTES .000 5.734 AAA 100.291 4,193,993.62 1. 16 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 3,910,979,50 1.16 2,101),000.00 US TREASURY NOTES ,000 4.266 AAA 99.625 2,105,699,39 .62 912828BH2 4.250% 08/15/2013 DO 08/15/03 AAA 2,092,125.00 .62 10,900,000,00 US TREASURY NOTES ,000 3,459 AM 97,590 J0,708,447,11 3,16 91282BBT6 3.375% 12/15/2008 DD 12/15/03 AM 10,636,220,00 3 .16 105,734,00 US TREASURY INFLATION INDEXED ,000 1.959 AAA 102.110 107,939.37 .03 91282BBW9 2.000% 01/15/2014 DD 01/15/04 AAA 107,964.99 .03 12,500,000.00 US TREASURY NOTES .ooo 2,775 AAA 99,090 12,424,543,03 3.68 912828CMO 2,750% 06/30/2006 DD 06/30/04 AAA 12,386,250.00 3.68 to 3,213,026.00 US TREASURY INFLATION INDEX NT .ooo 1.957 AM 102.180 3,300,893.88 ,97 0 91282BCP3 2,000% 07/15/2014 DD 07/15/04 AAA 3,283,069.97 .97 0 ;,;- '"'O 14,000,000.DO US TREASURY NOTES .ooo 2,779 AAA 98,960 J3, 927,531, 82 4. 12 I» 912828CQ1 2,750% 07/31/2006 DD 07/31/04 AAA 13,854,400.00 4.11 {IQ (I) -35,300,000.00 US TREASURY NOTES .000 2.411 AAA 98,500 35,120,197.62 l O. 34 \0 91'-828CU2 2,375% 08/31/2006 DO 08/31/04 AAA 34,770,500.00 10.32 20,000,000.00 US TREASURY NOTES .000 2,916 AAA 98.600 20,640,268.90 6.10 91282BDD9 2,875% 11/30/2006 DD 11/30/04 AAA 20,soa,000.00 6.09 13,920,000,00 US TREASURY NOTES .ooo 3,597 AAA 97.300 13,626,296.77 4,02 912B28DE7 3,500% 12/15/2009 OD 12/15/04 AAA 13,544,160,00 4,02 16,200,000.00 US TREASURY NOTES .ooo 4,035 AAA 99.140 16,201,259.92 4,77 912828DP2 4,000% 03/15/2010 DD 03/15/05 AAA 16,060,680.00 4, 77 1.1,200,000.00 US TREASURY NOTES .ooo 3,773 AAA 99,390 11,165,662,53 3,31 912828DQO 3.750% 03/31/2007 00 03/31/05 AAA 11,131,680.00 3.30 11,000,000.00 US TREASURY NOTES .ooo 3.537 AM 9B,950 10,915,072.08 3,23 91282BDW7 3,500% OS/31/2007 DD 05/31/05 AAA 10,884,500.00 3.23 20,000,000.00 US TREASURY NOTES .000 3,659 AAA 99,080 19,864,857.19 5.89 912828DY3 3,625% 06/30/2007 DD 06/30/05 AAA 19,816,000,00 5.88 1,750,000.00 VIRGINIA ELEC & PWR 01 SER A ,000 5. 715 A3 100.609 1,743,840.00 .52 927804ENO 5,750% 03/31/2006 DO 03/27/01 BBB+ 1,760,657.50 ,52 tti 0 0 ::,;- "ti p, (IQ (I) ,- N 0 YLDANAL OCSF07522202 DISTRICT: LONG-TERM OPERATING YIELD ANALYSIS 2005/09/30 PAGE RUM DATE RUN TIME _:=-======-·=============================~=======================================================~=========-=-===~· PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARllET VALUE ----------------------------------------------------------------------------------- 8,525,791.68 US TREASURY INFLATION INDEX NT 3.817 3.263 AAA 103.438 7,586,479.00 9128272M3 3,375% 01/15/2007 DD 01/15/97 AAA 8,818,865.77 690,309.89 FHLHC MULTICLASS MTG SER E3 A 6.316 4.260 AAA 99.397 691,045.30 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 686,147.32 400,706.50 GNl1A GTD REMIC TR 2000-9 FH 6.320 4. 241 AAA 100.724 400,706.50 3837H4NX9 VAR RT 02/16/2030 AAA 403,607.62 159,140.18 GNMA II POOL #08008BM 6,705 4.335 AAA 100.932 162,621, 36 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 160,623.37 123,142,09 GNMA II POOL #0080023 6.992 4.073 AAA 101.269 125,181.62 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 124,704.76 2,100,000.00 FEDERAL NATL MTG ASSN OE.BS 7.113 6.164 AM. 107.478 2,030,133.00 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,257,038.00 928,459.22 WMP/HUNTOON PAIGE f000-11150 7,6B4 7,413 AM 101. 177 908,294.24 30299BGE3 7,500% 12/01/2030 DD 10/21/99 AAA 939,383.19 -----------------------------TOTAL FIXED INCOME SECURITIES .023 4 .417 337,858,869.80 336,151,201.20 ------·---------------------TOTAL .023 4.416 338,608,888,60 336,901,220.00 14 10/05/05 13.36.30 % TYPE % TOTAL 2.62 2.62 .20 .20 • 12 .12 .04 .05 .03 .04 .67 ,67 ,27 ,28 100.00 99,75 100.00 100.00 FAHR COMMI TTEE Meeting Date To Bel. of Dir. 11/09/05 11/16/05 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance Originator: Michael D. White, Controller FAHR05-96 SUBJECT: SELECTION OF BEAR, STEARNS & CO., INC. TO SERVE AS THE DISTRICT'S UNDERWRITERS/REMARKETING AGENT FOR THE ISSUANCE OF UP TO $200 MILLION IN CERTIFICATES OF PARTICIPATION (COP) GENERAL MANAGER'S RECOMMENDATION Appoint Bear, Stearns & Co., Inc. as the District's Underwriter/Remarketing Agent for the COP Series 2005 variable rate debt issuance. SUMMARY At the September 14, 2005 FAHR Committee meeting, the Committee approved staff's recommended listing of 10 qualified underwriters/remarketing agents for consideration of these services on the COP series 2005 debt issuance. On September 30, 2005, staff issued a Request for Proposal (RFP) for Underwriter/ Remarketing Agent Services (Specification No. CS-2005-248), to these ten firms to begin the selection process. In all, there were six firms (the "Proposers") which submitted written responses to the RFP (the "Proposals"). Four other firms provided responses acknowledging receipt of the RFP and indicating that they would not be submitting a Proposal in response to the RFP. The six Proposers were: (1) Banc of America Securities LLC; (2) Bear, Stearns & Co., Inc.; (3) Citigroup Global Markets, Inc.; (4) Goldman, Sachs & Co.; (5) Lehman Brothers; and (6) Morgan, Stanley & Co. Taking into account the questions in the RFP, the District determined a weighted scoring method (the "Scoring Method") which included the qualifications of the proposing firms, the staffing and project organization, the work plan, the fees proposed by each firm and the presentations, if any, to be given as the evaluation criteria . • The District also assembled an Evaluation Committee to select the remarketing agent from among the Proposers. The Evaluation Committee consisted of the District's Director of Finance and the Controller, and one representative from the District's financial advisor, Public Resources Advisory Group ("PRAG"). The Purchasing Division tabulated the three sets of evaluations from the Evaluation Committee together with the calculated scores for the cost and price evaluation criteria. Using these results, the Purchasing Division invited three firms to the interview process H:\deptlagenda\FAHRIFAH R200511105105-96.COP Underwr~er.doc Revised: 06/04/03 Book Page 121 Page 1 (the "Interviewees"). The three Interviewees were: (1) Bear, Stearns & Co., Inc.; (2) Goldman, Sachs & Co.; and (3) Lehman Brothers. After adding together the scores for each Interviewee, Bear, Stearns & Co., Inc. was selected as the recommended remarketing agent for its highest total score. The firm's highest total was the result of (1) its strong qualifications as a fi rm, (2) good proposed staffing and project organization, (3) a comprehensive work plan and (4) the best pricing for daily reset variable rate demand COPs among all of the Proposers. PRIOR COMMITTEE/BOARD ACTIONS At the August 24, 2005 Board meeting: (1) Staff was directed to initiate the process of issuing up to $200 million in new variable-rate Certificates of Participation (COP) debt, and return to the Board of Directors for approval to issue the COPs; and, (2) Authorization was give to the General Manager to negotiate and enter into a sole source Consultant Services Agreement with Orrick, Herrington & Sutcliffe to provide bond counsel services in an amount not to exceed $135,000. At the September 14, 2005 FAHR Committee meeting, staff received Committee approval on a listing of 10 qualified underwriters/remarketing agents for consideration of these services for the issuance of up to $200 million in new variable-rate COPs. PROJECT/CONTRACT COST SUMMARY In accordance with the District's Board-adopted Debt policy, the District will restrict long- term borrowing to capital improvements that cannot be financed from current revenue, and before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed. This policy will assist in the leveling out of user rates over time and avoid any spiked increases in the short term. All costs involved in the COP issuance, including underwriting costs, will be paid from the proceeds of the new issue. BUDGET IMPACT • ~ This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. -• Not applicable (information item) ADDITIONAL INFORMATION H:ldeptlagenda\FAHAIFAHA2005\1105\05-96.COP Underwriter.doc Revised: 06/04/03 Book Page 122 Page2 At the September 14, 2005 FAHR Committee meeting, the Committee approved the following as qualified underwriting/re-marketing firms and to be provided a request for proposal for these services on the COP Series 2005: • A.G. Edwards • Bear Stearns & Co. • Citigroup Global Markets • Goldman Sachs • JP Morgan • Lehman Brothers • Morgan Stanley & Co. • RBC Dain Rauscher • Stone & Youngberg LLC On September 30, 2005, the Orange County Sanitation District (the "District") distributed the Request for Proposal (RFP) for Broker/Dealer/Underwriter (Specification No. CS-2005-248) to ten firms to begin the remarketing agent selection process for the District's Certificates of Participation, Series 2005 (the "COPs") scheduled to be sold in early 2006. Responses to the RFP were due by 2:00 p.m. Pacific Standard Time on October 12, 2005. In all, there were six firms (the "Proposers") which submitted written responses to the RFP (the "Proposals"). Four other firms provided responses acknowledging receipt of the RFP and indicating that they would not be submitting a Proposal in response to the RFP. The six Proposers were: (1) Banc of America Securities LLC; (2) Bear, Stearns & Co., Inc.; (3) Citigroup Global Markets, Inc.; (4) Goldman, Sachs & Co.; (5) Lehman Brothers; and (6) Morgan, Stanley & Co. Taking into account the questions in the RFP, the District determined a weighted scoring method (the "Scoring Method") which included the qualifications of the proposing firms, the staffing and project organization, the work plan, the fees proposed by each firm and the presentations, if any, to be given as the evaluation criteria. The weighting for each evaluation criteria is as follows: Qualifications of the Firm ................................................. 25% Staffing and Project Organization .................................... 15% Work Plan ........................................................................ 10% Cost and Price ................................................................. 25% Presentation, if any .......................................................... 25% The District also assembled an Evaluation Committee to select the remarketing agent from among the Proposers. The Evaluation Committee consisted of the District's Director of Finance and the Controller, and one representative from the District's financial advisor, Public Resources Advisory Group ("PRAG"). On October 14, 2005, the Evaluation Committee met with the District's Contracts, Purchasing and Materials Management Division (the "Purchasing Division") to discuss the rules pertaining to the evaluation process and to fully explain the adopted Scoring Method. During this meeting, the Evaluation Committee, in consultation with the Purchasing Division, decided that only the top three firms, as determined by the Scoring Method without H:\deptlagenda\FAHR\FAHR2005\ 1105\05-96.COP Underwriter.doc Revised: 06/04/03 Book Page 123 Page3 taking into account the presentation evaluation criteria, would be interviewed on October 27, 2005. Members of the Evaluation Committee reviewed each of the Proposals and collectively discussed the evaluation criteria in greater detail on October 20, 2005. After the discussion, each member independently assigned scores for each of the first three evaluation criteria-namely, (1) the qualifications of the firms, (2) the proposed staffing and project organization for each firm and (3) the proposed work plan for each firm. PRAG also calculated the scores for the cost and price evaluation criteria using the sum of (1) the proposed initial fees and expenses and (2) the present value of the proposed remarketing tees of each firm based on daily reset variable rate demand certificates of participation (which was the reset mode recommended by each of the six Proposers) and an assumed average lite of 15 years for the COPs. These scores for the cost and price evaluation criteria were scaled linearly to the best bid in accordance with the scaling method as described by the Purchasing Division. The Purchasing Division tabulated the three sets of evaluations from the Evaluation Committee together with the calculated scores for the cost and price evaluation criteria. Using these results, the Purchasing Division invited three firms to the interview process (the "Interviewees"). The three Interviewees were: (1) Bear, Stearns & Co. Inc.; (2) Goldman, Sachs & Co.; and (3) Lehman Brothers. The Interviewees were notified of their selection for the interview process on October 21, 2005. While the Evaluation Committee believes that all six Proposers demonstrated sufficient qualifications to undertake the remarketing agent assignment, the Interviewees were selected on account of their personnel and experience, more comprehensive work plans and better overall price. The interviews were conducted on October 27, 2005 in the predetermined format of the Interviewees presenting their qualifications, staffing and project organization, work plan and any other material which the firms deemed appropriate over a 30 minute time limit. The Evaluation Committee then asked the Interviewees questions over an additional 15 minutes. Some questions were prepared in advance to clarify responses in the Interviewees' Proposals and to further understand each Interviewee's opinion on issues pertaining to the variable rate demand COPs. Additional questions were also asked based on the presentation and verbal responses provided by the Interviewees. From the Evaluation Committee's perspective, the three firms performed equally well during their respective interviews. All three firms presented their qualifications clearly and effectively during the formal presentation process. All three firms answered the prepared and impromptu questions competently and to the satisfaction of the members of the Evaluation Committee. In the discussion immediately following the interviews, the Evaluation Committee together concluded that each firm would be assigned the same score for the interview portion of the evaluation criteria. After adding together the scores for each Interviewee, Bear, Stearns & Co., Inc. was selected as the remarketing agent for its highest total score under the Scoring Method. The firm's highest total was the result of (1) its strong qualifications as a firm, (2) good proposed staffing and project organization, (3) a comprehensive work plan and (4) the best pricing for daily reset variable rate demand COPs among all of the Proposers. H:\dept\agenda\FAH R\FAHR2005I1105I05-96.CO P Underwriter.doc Revised: 06104/03 Book Page 124 Page4 $200 million Certificates of Participation Issuance Schedule • Negotiate professional services agreement with bond counsel October • Issue Underwriter/Remarketing Agent Request tor Proposal • Issue Bank Request tor Proposals • Select Underwriter/Remarketing Agent November • Select Bank • Develop legal documents • Develop disclosure documents (Official Statement) • Develop rating agency presentation December • Conduct rating agency presentations • Finalize debt service and cash flow modeling • Finalize legal and disclosure documents • Marketing and Sale of the COPs through a Negotiated Sale Process January • Execute $200 million Variable-Rate COP issue • Investment of Bond Proceeds • Debt Administration ATER NATIVES None. CEQA FINDINGS None. ATTACHMENTS 1. Scoring Summary Evaluation on the six firms submitting proposals. H:\dept\agenda\FAHRIFAHR2005\1105\05·96.COP Underwriter.doc Revised: 06/04/03 Book Page 125 Page 5 Book Page 126 to 0 0 ;,;-- '"Cl I» OQ (l) N --..J Orange County Sanitation District Certificates of Participation, Series 2005 ~ec. No. CS-2005-248, Broker/Dealer/Underwriter Banc of America Bear Stearns -Evaluation Criteria Weight Score Points Score Points 1 Qualifications of Firm 25 10 250 7 175 2 Staffing and Project Organization 15 5 75 7 105 3 Work Plan 10 5 50 10 100 4 Cost and Price 25 7.2 179 10.0 250 5 Presentation 25 NIA 7 175 EVALUATOR· LOUIS CHOI 100 554 805 SHORT LIST SCORES 554 630 Banc of America Bear Stearns ~ Evaluation Criteria Weight Score Points Score Points 1 Qualifications of Firm 25 10 250 7 175 2 Staffing and Project Organization 15 5 75 7 105 3 Work Plan 10 6 60 8 80 4 Cost and Price 25 7.2 179 10.0 250 5 Presentation 25 N/A 7 175 EVALUATOR· MIKE WHITE 100 564 785 SHORT LIST SCORES 564 610 Banc of America Bear Stearns -Evaluation Criteria Weight Score Points Score Points 1 Qualifications of Firm 25 9.5 237.5 7 175 2 Staffing and Proiect Oraanization 15 6 90 7 105 3 Work Plan 10 5 50 10 100 4 Cost and Price 25 7.2 179 10.0 250 5 Presentation 25 NIA 7 175 EVALUATOR· LORENZO TYNER 100 556.5 805 SHORT LIST SCORES 556.5 630 SHORT LIST AVG Totals·· Possible 750 558 623 SHORT LIST OF FIRMS Possible Points Final Score I I I 1 Bear, Stearns & Co., Inc. 1000 798 2 Goldman Sachs & Co. 1000 764 . -·· 3 Lehman Brothers 1000 761 C:\Documents and Settings\crane\Local Settings\Temporary Internet Files\OLK3\Scoring Totals Lehman Citi~ roup Goldman Sachs Brothers Morgan Stanley Score Points Score Points Score Points Score Points 8 200 10 250 7 175 8 200 6 90 7 105 7 105 7 105 6 60 9 90 8 80 4 40 6.0 151 6.9 173 9.0 224 7.0 174 NIA 7 175 7 175 NIA 501 793 759 519 501 618 584 519 Lehman Citi~roup Goldman Sachs Brothers Morgan Stanley Score Points Score Points Score Points Score Points 8 200 8 200 7 175 8 200 5 75 7 105 7 105 6 90 6 60 9 90 8 80 5 50 6.0 151 6.9 173 9.0 224 7.0 174 NIA 7 175 7 175 N/A 486 743 759 514 r 486 568 584 514 Lehman Citi~ roup Goldman Sachs Brothers Moraan Stanley Score Points Score Points Score Points Score Points 8.5 212.5 9.5 237.5 7.5 187.5 7.5 187.5 5.5 82.5 6 90 6.5 97.5 6.5 97.5 6 60 8 80 8 80 5 50 6.0 151 6.9 173 9.0 224 7.0 174 NIA 7 175 7 175 N/A 506 755.5 764 509 506 580.5 589 509 497 647 586 514 I Book Page 128 ATTACHMENTS 1. Comprehensive Annual Financial Report for the year ended June 30, 2005. (Separately bound document.) 2. Report on Compliance and Internal Control Over Financial Reporting. 3. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. H:ldeptlagenda\FAHRIFAHR200511105\05-97.CAFR year end 63005.doc Revised: 8/20/98 Book Page 130 Page2 CONRAOANo CERTIFIED PUBLIC ACCOUNTANTS ASSOCIATES, L.L.P. Board of Directors Orange County Sanitation District Fountain Valley, California Independent Accountants Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets 2301 DUPONT DRIVE, SUITE 200 IRVINE, CALIFORNIA 92612 (949) 474-2020 Fax (949) 263-5520 We have applied the procedures enumerated below to the appropriations limit worksheets prepared by the Orange County Sanitation District for the year ended June 30, 2005. These procedures, which were agreed to by the Orange County Sanitation District and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the Orange County Sanitation District in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and the results of those procedures were as follows: 1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote. Results: No exceptions were noted as a result of our procedures. 2. We recalculated the mathematical computations reflected in the District worksheets. Results: No exceptions were noted as a result of our procedures. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION Book Page 132 Board of Directors Orange County Sanitation District Page Two 3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the District and to information provided by the State Department of Finance. Results: No exceptions were noted as a result of our procedures. 4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the Board of Directors for the prior year. Results: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the worksheets referred to above. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article X/1/B Appropriations Limitation Uniform Guidelines. This report is intended solely for the use of the Orange County Sanitation District and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. September 9, 2005 Book Page J 33 Book Page 134 FA HR COMM ITTEE Meeting Date 11/09/05 AGENDA RE PORT Item Number FAHR05-98 Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Ann Sullivan, Principal Human Resources Analyst SUBJECT: MID-YEAR STAFFING MODIFICATIONS: RECLASSIFICATION AND EQUITY ADJUSTMENTS GENERAL MANAGER'S RECOMMENDATION 1. Approve the reclassification of seven OCSD employees 2. Approve position upgrades of four positions 3. Approve equity adjustment for one employee SUMMARY To Bet of Dir. 11/16/05 Item Number In an effort to support OCSD's staffing needs, it becomes necessary to review and modify job titles and pay grades when appropriate. This occurs in situations where staffing requirements result in the need for higher levels of skill and performance. Furthermore, the need for the higher skill level must be indefinite and ongoing. Human Resources Policy C10.10, as well as bargaining unit Memorandums of Understanding, provides this opportunity. Both state that requests are considered twice per year, once during the annual budgeting process and again in November. During the current period, sixteen requests were submitted for consideration. The Human Resources Department reviewed each request in detail and discussions ensued with the appropriate Department Head. Consequently, the Human Resources Department recommends that twelve of the requests be approved (Attachment 1 ). Seven of the requests will result in classification changes for current employees effective immediately following Board approval. These seven employees have met the criteria outlined in the Reclassification Guidelines, which are summarized below: 1. The incumbent has been in the position being considered for reclassification and performing the higher level duties for at least 6 months 2. The incumbent meets the qualifications for the position being considered for reclassification 3. The incumbent's classification is not being reclassified from a non-supervisory to a supervisory classification One request provides for an equity adjustment due to department restructuring. The remaining four requests upgrade vacant positions. Detailed information regarding each of the requests is documented in the additional information section. Revised: 06/04/03 Page 1 Book Page 135 PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY The cost for the salary increases as a result of the reclassifications and equity adjustment for the remainder of FY 05/06 (November 25 to June 30) is $15,024. Annualized cost of the salary increases as a result of the reclassifications and equity adjustment is $30,048 and will be included in the budgeting process. BUDGET IMPACT D This item has been budgeted. D This item has been budgeted, but there are insufficient funds. C8'.I This item has not been budgeted. (sufficient funds exist from vacant positions). D Not applicable (information item). ADDITIONAL INFORMATION 220 -Accounting aha Hudqetinq 0ivisi0n Reclassify Ann Crafton from a Staff Analyst at PG 70 ($4,659 -$5,824) to Senior Staff Analyst at PG 76 ($5,403 -$6,753) based on managing parcel review project, managing redevelopment agency program, overseeing lease agreements for the timely receipt of revenues, and overseeing annual review of 20% of commercial parcels. In the past year Ann Grafton's responsibilities as a Staff Analyst have expanded considerably. When initially assigned as a Staff Analyst, Ms. Grafton's responsibilities consisted of reviewing and maintaining parcel use codes, preparing monthly reports, preparing deposits, and processing sewer service fee claims. These responsibilities are of moderate scope and complexity, and routine in nature. Due to business need, Ms. Grafton's responsibilities have expanded to performing duties at the higher classification of Senior Staff Analyst, which consist of managing the review of 46,000 non-residential parcels including the selection, supervision, training, evaluation and discharge of 13-14 temporary employees. The results of this project identified 1,628 corrections to the County Assessor's database resulting in the proper assessment of an additional $3 million in sewer service fee revenue on an annual basis. Ms. Crafton has taken on the responsibility of reviewing all amounts owed from Redevelopment Agencies (RDA) that are in OCSD's service area based on RDA pass- through agreements. There are a total of 49 RDA's within the 21 member cities of OCSD. Ms. Crafton has organized city files for each individual RDA. This includes researching when the RDA Ordinance was adopted, if any amendments or mergers have taken place since that time, the limitations on the pass-through amounts and when the payments should have started. Once Ms. Crafton establishes a date that payments should have started, she researches hard copy files (prior to OCSD's automated system) for proof of payment. Once all payments have been logged, a review is conducted to see if any payments are missing or if the RDA did not start payments as Revised: 06/04/03 Page2 Book Page 136 scheduled. Currently, the Finance Department is working with 9 RDA's for agreed upon past due revenue at this time. The level of problem solving at the Senior Staff Analyst level is expected to develop solutions to complex problems, plan, schedule and arrange his/her own activities to meet expected results of the work, and completed work is only reviewed upon completion. Ms. Grafton's expanded responsibilities fall within the criteria of the higher classification of Senior Staff Analyst. 230 -Contracts. Purchasing, & Materials Division Upgrade a Staff Analyst position at PG 70 ($4,659 -$5,824) to a Senior Contract Administrator at PG 82 ($6,264 -$7,831) based on change in business need requiring work beyond the analytical and research duties found at the Staff Analyst level. The upgraded position will be posted as a promotional opportunity. Since establishing the Staff Analyst position in the department, OCSD's contracts have become more complex in nature, requiring greater knowledge and experience to manage the $3 billion CIP program over the next ten years. An example of the increase in complexity of managing the CIP contracts, the Bushard Pipeline contract has a multitude of legal issues that can only be resolved by a seasoned contract professional. The current Staff Analyst classification does not require the level of knowledge, skills, and abilities to handle such complex issues. At the Senior Contract Administrator level, decisions made that obligate the District for years to come must be made by an experienced professional who has the demonstrated understanding of the complexities associated with managing multiple CIP contracts. Required are advanced legal and contract administration skills with the ability to interface with General Counsel to ensure OCSD is in compliance with the intricacies and associated enforcement responsibilities. With the change in business need, there will continue to be work containing responsibilities that require skills that exercise considerable latitude in determining the best approach in completing assignments. In addition, the development of solutions to complex problems requires the use of advanced critical thinking skills. These are expected requirements at the Senior Contracts Administrator level. 420 -Collection Facilities O&M Division Upgrade a Mechanic position at PG 61 ($3,730 -$4,663) to a Lead Mechanic at PG 71 ($4,775 -$5,970) to align and reflect the current staffing levels. In FY 04/05 a position was borrowed from Division 830 to post and recruit for a Lead Mechanic with the intent of upgrading a Mechanic position during the budget cycle of FY 05/06 in order to return the borrowed position. Due to an oversight, the upgrade of the position was not included during the budget cycle of FY 05/06. This request will allow Division 420 to return to Division 830 the position that was borrowed so that current staffing levels are correctly reflected. Upgrade two Mechanic positions at PG 61 ($3,730 -$4,663) to two Senior Mechanic positions at PG 67 ($4,326 -$5,408) in support of the long range plan to provide qualified staff career growth opportunities, and to focus training to ensure the knowledge Revised: 06/04/03 Page3 Book Page 13 7 and skills of the work unit are passed on in support of succession planning. The District's pay for performance approach aligns with the department's Bench Building Program that requires employees to achieve a certain skill level and reach performance requirements necessary for the higher job level. The upgraded positions will be posted as promotional opportunities. 433 -Plant Facilities Maintenance Division Reclassify Arnold Lacap from a Mechanic at PG 61 ($3,730 -$4,663) to Senior Mechanic at PG 67 ($4,326 -$5,408) based on performing the full scope of the job functions in the Rebuild Shop by completing rebuilds and bench tests on a large array of pumps, wastewater treatment plant equipment and auxiliary components. When initially assigned to the Mechanic level, Mr. Lacap worked under close supervision, and received detailed instructions on tasks assigned. Over the past year, Mr. Lacap has performed his job responsibilities at the higher classification of Senior Mechanic requiring limited supervision, complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. This is demonstrated by Mr. Lacap's handling of complete rebuilds on a large array of wastewater treatment plant equipment including but not limited to centrifugal pumps, progressive capacity pumps, opposing diaphragm assemblies, metering pumps, multi-stage turbines, sump pumps, Vaughn chopper pumps, lobe-type, etc. In addition, Mr. Lacap handles complete rebuilds on a host of auxiliary components such as gear boxes, fans, blowers, belt filter press rollers and related equipment. He uses an assortment of precision measuring devices to include dial indicators, inside and outside micrometers, snap gauges, inside and outside calipers, depth gauges, electrical balancing machine, zero glass beader, 200 ton and 50 ton Enerpac hydraulic presses, drill press, and all sizes of pneumatic tools and hand tools. Mr. Lacap handles the more complex tasks, is prepared for any emergency that may arise, and assists when needed in offering his expertise and skills to correct problems. He offers quality assistance to fellow staff members as needed and shares advice and suggestions. The distinct differences between the Mechanic level and the Senior Mechanic level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Mechanic level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Senior Mechanic level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. 540 -Workforce Support Services Division of Human Resources Equity adjustment for Richard Spencer, Human Resources Supervisor at PG 85 from Step 3 ($7,377) to Step 4 ($7,713) based on recent changes in the HR organizational structure. Mr. Spencer is now directly responsible for both the 520 and 540 divisions. This was done to provide a more efficient approach in managing HR operations. Revised: 06/04/03 Page4 Book Page 138 As a result of a reorganization and redistribution of work in the Human Resources Department, the responsibilities and the span of control for the Human Resources Supervisor has changed significantly. This change in the reporting structure has increased the scope of work. This position is now responsible for two divisional areas instead of one, expanding the staff and functional areas supervised. This position is now responsible for employee development programs, classification and compensation programs, strategic staffing programs, employee benefit programs, and employee workforce support services. The diversity of these programs has increased the level of responsibility as well as the level of complexity. An equity adjustment would support recognition of these changes. 640 -Source Control Division of Technical Services Reclassify Chris Stacklin from Associate Engineer Ill PG 80 ($5,964 -$7,455) to Engineer at PG 84 ($6,581 -$8,228) based on issuing and renewing industrial wastewater discharge permits, monitoring compliance and regulatory conformity by sampling and reviewing processes, and evaluating corrective response plans and proposals. For the past two years Mr. Stacklin has managed permitting and compliance and enforcement for a diverse set of industries and agencies. His principal responsibility is enforcement projects that include administrative complaints and settlement agreements in coordination with legal counsel and the permittee. Mr. Stacklin has participated in high profile and sensitive enforcement actions, which involved liaison and coordination with the District Attorney and Source Control. Mr. Stacklin has developed a fee structure for Class I, Class II and SPDPs that was adopted by the Ordinance. He has provided extensive and crucial input for an EPA audit and report response. Additionally, he developed, implemented and coordinated the SPDP streamlining effort that resulted in a more efficient and effective program. At the Engineer level, it is expected that development of solutions are on a variety of complex problems. Mr. Stacklin's responsibilities at the higher classification of Engineer fall within this expectation level. 740 -Planning Division of Engineering Department Reclassify Richard Schlegel from Engineering Assistant II at PG 70 ($4,659 -$5,824) to Engineering Data Management Tech II at PG 74 ($5,143 -$6,429) based on performing the full scope of the job functions by capturing engineering data via computer, advising and assisting engineering and other departments on GIS issues, and answering questions and resolving user problems of the engineering data management system. The job duties for Mr. Schlegel have increased due to the changed nature of the work to be accomplished within the Engineering Department. With new computer technology, the department has moved from manual drafting and information transfer to highly complex, accurate and fast electronic knowledge transfer. To accomplish the work, staff must have and use knowledge, skills and abilities commensurate with expanding needs of the department and organization. As an example, Mr. Schlegel's new duties include translation of computer aided drafting (CAD) files to Geographic Information Systems (GIS) format to be used in the Facilities Atlas. An old corresponding duty would include only drafting using CAD. Revised: 06/04/03 Page 5 Book Page 139 The changed nature of the work performed by Mr. Schlegel supports the continued transition from blueprints to an electronic format that is available to the organization via the Facilities Atlas system. Additionally, Mr. Schlegel's increased knowledge and skills support the organization's ability to receive and transfer electronic drawings in standard formats for integration and distribution throughout the organization. The Engineering Data Management Tech II is at the journey level of the job class where supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. 850 -Mechanical Maintenance & Power Production O&M Division Reclassify James Arthur from a Power Plant Operator I at PG 66 ($4,222 -$5,276) to Power Plant Operator II at PG 71 ($4,775 -$5,970) based on performing the full scope of the job functions by operating and maintaining electrical power generation equipment, i.e., gas engines, pumps, compressors. Mr. Arthur has been performing the Power Plant Operator II duties for 28 months. Mr. Arthur performs power plant rounds; inspecting, recording date, water sampling and diagnosis, equipment and systems checks, and daily and monthly operating logs. He serves on the power plant standby for emergency callouts, which requires advanced knowledge for operating and maintaining all aspects of plant power. Additionally, he understands complex maintenance and repair problems through the application of thorough troubleshooting skills and procedures, and provides sound solutions for correcting problems. The distinct differences between the Power Plant Operator I level and the Power Plant Operator II level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Power Plant Operator I level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Power Plant Operator II level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. Reclassify Charles Gober from a Mechanic at PG 61 ($3730 -$4,663) to Senior Mechanic at PG 67 ($4,326 -$5,408) based on performing at the full scope of the job functions on the solids team by providing mechanical maintenance and repair to wastewater treatment plant mechanical equipment including piping, valves, pumps, gearboxes, engines, and all other minor and major mechanical rotating equipment. Mr. Gober works independently and exercises judgment and initiative as he applies thorough troubleshooting skills to determine solutions when correcting problems. He serves on the mechanical standby for emer~~ency repair callouts. A criterion for placement on this emergency repair callout list is advanced knowledge of various types of process equipment and systems. Mr. Gober has assumed the task of re-piping seal Revised: 06/04/03 Page 6 Book Page 140 water and grease lines for pumps and other rotating equipment, and has provided detailed system and equipment information when recommending improvements to daily functions. Mr. Gober handles the more complex maintenance and repair problems. The distinct differences between the Mechanic level and the Senior Mechanic level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Mechanic level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Senior Mechanic level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. Reclassify Brian Tafolla from a Mechanic at PG 61 ($3730 -$4,663) to Senior Mechanic at PG 67 ($4,326 -$5,408) based on performing at the full scope of the job functions on the water team by providing mechanical maintenance and repair to wastewater treatment plant mechanical equipment including piping, valves, pumps, gearboxes, engines, and all other minor and major mechanical rotating equipment. Mr. Tafolla works independently and exercises judgment and initiative as he applies thorough troubleshooting skills to determine solutions when correcting problems. Mr. Tafolla has been involved with the rehabilitation of the grit paddle system and has provided suggestions on ways to improve the system. On the rehabilitation of the 108" PEDB isolation gates, he provided suggestions on improving the procedure to follow for re-assembly. He serves on the mechanical standby for emergency repair callouts. A criterion for placement on this emergency repair callout list is advanced knowledge of various types of process equipment and systems. Mr. Tafolla handles the more complex maintenance and repair problems. The distinct differences between the Mechanic level and the Senior Mechanic level are the level of supervision received, the type of instruction given on the task at hand, and the job knowledge necessary to complete the tasks. At the Mechanic level there is close supervision with detailed instructions given for new lines of work or special assignments. There is an understanding of the general aspects of the job and limited understanding of the technical phases of the job. While at the Senior Mechanic level or journey level, supervision is limited with no instructions needed on routine work. General instructions are given on new lines of work or special assignments, and there is complete understanding of the general aspects and technical phases of the job and their practical applications to problems and situations. ALTERNATIVES Approve none or some of the recommendations. • If reclassifications are not approved, job duties will be reviewed and modified to be consistent with current classifications. Revised: 06/04/03 Page 7 Book Page 141 CEQA FINDINGS N/A ATTACHMENTS 1. Summary Reclassification, Equity Adjustment, and Position Upgrade for November 2005 H:\dept\agenda\FAHR\FAHR2005\ 1105\05-98.Reclassifications.doc Revised: 06/04/03 Page8 Book Page 142 ATTACHMENT 1 SUMMARY RECLASSIFICATION EQUITY ADJUSTMENT POSITION UPGRADE NOVEMBER 2005 RECLASSIFICATION REQUESTS Employee Crafton, A. i ! Div l Current j I Classification Title 1 I I i I 220 ! Staff Analyst j ! I I i i : Proposed Reclassification Title Senior Staff Analyst 11-------~-..,._.-----·--i---------------------------•-------------------11 I , I i 433 i Mechanic ! Lacap, A. Senior Mechanic ' ' ' ! ' I ______________________ _l ___ , ____ _1 _______________________ ~•~-------------11 ' ' ' Stacklin, C. ! 640 l Associate Engineer Ill i Engineer Schlegel, R. ----------r-7 401 ----Engineering Asst 11----r-------Engineering-------- ----------------! 1 _____ __g~)~_~an._~_g_~~ent Tech II Arthur, J. I 850 I Power Plant Operator I Power Plant Operator II I : --------------·--------------. ----·----r------------------·-----------------• -·----------------------u Tafolla, B. ! 850 i Mechanic Senior Mechanic I i -------------------... ·----t"•------7-------------1--------- Gober, C. l 850 I Mechanic ' I I : I ' EQUITY ADJUSTMENT REQUEST Employee Div Spencer, R. 540 Current Pav Step Step 3 -PG 85 HR Supervisor POSITION UPGRADE REQUESTS ' I ' Requester Div I Current Title ' ' ' Staff Analyst ! Dubois, M. 230 PG70 ! ($4,659 -$5,824) ----.----------r------ Mechanic Blanda, T. 420 PG 61 ($3,730 -$4,663) Mechanic -2 each Blanda, T. 420 PG 61 ($3,730 -$4,663) TOTAL: 12 Book Page 143 Senior Mechanic Proposed Pav Step Step 4 -PG 85 HR Supervisor Proposed UpQrade Title Senior Contracts Administr PG 82 ($6,264 -$7,~~-u_ __ Lead Mechanic PG 71 ($4,775 -$5,970) Senior Mechanic -2 each PG 67 ($4,326 -$5,408) Book Page 144 FAH R COMMI TTEE Meeting Date To Bel. of Dir. 11/09/05 11/16/05 AGE NDA REPORT Item Number Item Number Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Jeff Reed, Human Resources Manager FAHR05-99 SUBJECT: WORKERS' COMPENSATION THIRD PARTY ADMINISTRATOR (TPA) CLAIMS ADMINISTRATION AND MANAGED CARE SERVICES GENERAL MANAGER'S RECOMMENDATION 1. Direct staff to seek proposals from firms that provide Workers' Compensation Third Party Administrator (TPA) services; 2. Authorize staff to terminate the existing Workers' Compensation TPA services agreement with Cambridge Integrated Services Group, Inc. effective June 30, 2006, based on conducive market conditions; and, 3. Authorize staff to negotiate a new contract for Workers' Compensation TPA services based on competitive bidding, if advantageous, which is to include a favorable cost structure. SUMMARY Costs for Cambridge Integrated Services Group, Inc. (Cambridge) TPA claims administration services appears to be going up due to a flat rate fee structure and decreasing OCSD claims experience rates (count). Staff was directed to provide information on the Third Party Administrator, which was to include the following: (1) background; (2) contract terms; and, (3) performance. BACKGROUND The Orange County Sanitation District (OCSD) is self-insured for workers' compensation. Cambridge serves as the TPA on behalf of the OCSD. Cambridge provides claims administration and managed care services. Cambridge has directly administered the program since July 1998. CONTRACT TERMS Claims administration costs are generally based on either a flat rate fee or a percentage of the claims costs. Key points of the Cambridge contract include the following: • Claims Administration flat rate fee -$26,500 annually • On-Line Access fee for claims information and report generation -$1,000 annually Revised: 06/04/03 Page 1 Book Page 145 • Managed Care -percent of savings, per hour charge, or per line charge • 30 claims per year cap -subject to review if exceeded in prior year • Three year contract • Year-to-year renewals • Effective date -July 1, 2004 • Expiration date -June 30, 2007 PERFORMANCE In August 2005, CSAC (California State Association of Counties) Excess Insurance Authority (the Authority) conducted an assessment of the OCSD workers' compensation claims service. The Authority analyzed claims data, examined a representative sample of claims, and reviewed the findings against the Authority's "Workers Compensation Claims Administration Guidelines," as amended June 6, 2003. In general, the Authority found that Cambridge is "effectively providing claims service to OCSD's employees and is meeting industry best practices, state law and the Authority's own guidelines with an overall grade of 92%; however, performance is below the Authority's acceptable level-of 95% ... " PRIOR COMMITT~E/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY Costs per claim at $27,500: • Claim count average of 35 at total claims administration cost of $27,500 over consecutive three fiscal year period July 1, 1999 -June 30, 2002 is: o Approximately $786 per claim • Claim count average of 17.3 at total claims administration cost of $27,500 over consecutive three fiscal year period July 1, 2002 -June 30, 2005 is: o Approximately $1,590 per claim Costs for the Cambridge TPA Claims Administration services are as follows: • $26,500 Flat Rate Annual Fee • $1,000 Annual Fee for On-Line Access (Optional) Costs are contingent on the use of Cambridge Managed Care Service and subject to a cap of 30 claims per year ( revisited if exceeded in prior year). Revised: 06/04/03 Page2 Book Page 146 Costs for Cambridge TPA Managed Care services are as follows: • Bill Review ....................................... $1.20 per line, 2 line header • PPO ............................................... 28% of savings • Second Level Review ......................... 30% of savings • Prescription Rx ................................. 30% of savings • Telephonic Case Management. ............. $91.00 per hour • Field Case Management. ..................... $95.00 per hour • Utilization Review -Inpatient.. .............. $160.00 per hour • Utilization Review -Outpatient.. ............ $145.00 per hour • Peer Review ...................................... $91.00 per hour plus physician's cost BUDGET IMPACT ~ This item has been budgeted. D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION The Orange County Sanitation District (OCSD) is self-insured for workers' compensation. Cambridge Integrated Services Group, Inc. (Cambridge) serves as the TPA on behalf of the OCSD. Cambridge has administered the program since July 1998. Previously, Presidium (1997) and Hertz Claim Management (HCM, 1993) provided the services. Information indicates that both of these organizations were ultimately acquired by Cambridge through merger and acquisition processes. Keenan & Associates (Keenan) acted as the OCSD TPA prior to HCM, Presidium and Cambridge. Keenan initially charged a flat rate fee of $29,700 for TPA services related to claims administration. Keenan had proposed an annual cost of $31,146 so the contract was terminated. Cambridge (HCM) was awarded the contract for services initially at an annual flat rate fee of $25,000 for claims administration services. OCSD worker's compensation claims count was 76 in the fiscal year preceding Cambridge (HCM) becoming the TPA. Claims administration costs are generally based on either a flat rate fee or a percentage of the claims costs. The current contract with Cambridge is based a flat rate fee. Cambridge's costs have increased from $25,000 initially to $27,500 ($26,500 flat rate fee plus $1,000 annual fee for On-Line Access) over the period the firm has administered the program. Cost for Cambridge TPA services appears to be going up due to a flat rate fee structure and OCSD decreasing claims experience rates (count). OCSD claims counts are being driven down by implementation of an aggressive safety program and ready address of ergonomic issues affecting employees. Revised: 06/04/03 Page 3 Book Page 14 7 For the three consecutive fiscal years from July 1, 1999 through June 30, 2002, the OCSD average workers' compensation claims experience rate was 35. This equates to a cost of approximately $786 per claim at a claims administration cost of $27,500. For the last three consecutive fiscal years (July 1, 2002 through June 30, 2005), the OCSD average workers' compensation claims experience was 17.3. This equates to a cost of approximately $1,590 per claim at a claims administration cost of $27,500. OCSD claims experience rates have decreased by slightly more than 50% based on a comparison of the two periods. In the fiscal year ending June 30, 2005, OCSD reported 19 workers' compensation claims. OCSD workers' compensation claims count for the first quarter of Fiscal Year 2005 -2006 stands at one (1 ). Two additional claims are anticipated to be reported to the FAHR Committee at the December meeting in the monthly OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. Utilization of TPA claims administration services allows OCSD to maintain a "self- insurance" status without allocating staffing resources for this skill set. The services provided by Cambridge for claims administration include: o Claims Processing o Benefit Payments o Claims Investigation o Litigation Support o Subrogation o Setting Reserve Allocation o Medical Treatment Coordination o Escrow Administration o Employee Interface A separate aspect of the contract with Cambridge Integrated Services Group is for Managed Care services. The elements of this service are designed to minimize the cost of medical services provided while ensuring that an employee is receiving all appropriate treatment. The Managed Care services include: o Medical Bill Review o Use of a Preferred Provider Organization for Treatment o Telephonic Case Management o Field Case Management o Utilization Review o Peer Review Managed Care costs are driven by either a percent of the savings demonstrated or a specific charge per hour for the physician's or nurse's time. Revised: 06/04/03 Page4 Book Page 148 The Managed Care services encompass the industry standard for medical cost containment and are geared to maximize the provisions provided for under the California Workers' Compensation reforms associated with SB 899. OCSD has seen actual claim progression and resolution as a direct result of applying utilization review to a claim, resulting in movement to settlement. The CSAC Excess Insurance Authority provided OCSD with a claims audit report related to Cambridge's performance, dated August 2005. The Authority graded Cambridge on 23 claims components, using a four-point grading scale. The Authority analyzed claims data, examined a sample of up to eight claims per component, and reviewed the findings against its own guidelines. The Authority provided Cambridge with an overall grade of 92% out of 100%. The Authority's acceptable level of performance is 95%. The Authority noted the following opportunities for improvement in Cambridge's claims administration activities: • Compensability score of 91 % -Consistent follow-up required on discovery of incident facts, medical history and forensic medical opinion to evaluate compensability. • Three-Point Contact score of 66% -Contact injured worker, employer and treating physician within five working days of receipt of notice of claim; document contacts in file. • Initial Indemnity Payments score of 91 % -Consistent maintenance of documentation of initial indemnity benefit notices in claim file. • Fiscal Handling score of 69% -Implement process to comply with the "balancing"* requirement; record documentation of "balancing" activity in the file. • Penalties score of 91 % -Close supervision of benefit due dates. • Incoming Correspondence -Consistent date stamping of incoming correspondence for the date of receipt. *Requirement for active indemnity cases to be balanced with appropriate file documentation on a semi-annual basis to verify statutory benefits are paid, and medical/legal and vocational rehabilitation charges are appropriate. ALTERNATIVES • Defer action until current contract with Cambridge expires in June 2007. • Direct staff to enter into negotiations with Cambridge on an alternative fee structure for claims administration services. CEQA FINDINGS N/A ATTACHMENTS N/A Revised: 06/04/03 Page 5 Book Page 149 Book Page 150 FAHR COMMITTEE AGENDA REPORT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer SUBJECT: UPDATE ON AIRLINE/TRAVEL CARD PROGRAM GENERAL MANAGER'S RECOMMENDATION Informational Item. SUMMARY Meeting Date To Bel. of Dir. 11/09/05 11/16/05 Item Number Item Number FAHR05-100 At the October 12, 2005 Finance, Administration and Human Resources Committee meeting, the Directors requested additional information regarding aspects of the District's travel program. Specifically, the Committee requested information on the following: 1) What airline travel has staff recently completed? 2) What are the District's policies regarding travel, for both staff and directors 3) What is the procedure for authorizing Director travel? 1) What airline travel has staff recently completed? Attachment 1 includes all staff airline travel completed during the period July 1 , 2005 through September 30, 2005. The report includes two sections, travel arranged by and paid to the District's travel agent, and travel arranged by and paid to the District staff. Per District policy, staff may arrange their own travel if the total cost is equal to or less than that obtained by the travel agent. Although much of this travel is billed to the American Airline Travel Program, various airlines are used. The American Airlines Travel Program is only a conduit for arranging travel and does not imply any exclusivity with American Airlines. 2) What are the District's policies regarding travel, for both staff and Directors? Attachment 2 is the District's most recent policy on Travel. This policy applies to both staff and Directors. 3) What is the procedure for authorizing Director travel? The resolution governing this issue is included in the OCSD Board of Directors' Guide to Business starting on page 18. Although the entire resolution is included in Attachment 3, the following relevant sections are listed here: H:\deptlagenda\FAHR\FAHR2005\1105\05-100.Airline Travel Card.doc Revised: 06/04/03 Book Page 151 Page 1 a) The Chair of the Board will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. b) Attendance at seminars, conferences and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. Staff will continue to work to develop better mechanisms for reporting all District expenditures, including travel and conferences. PRIOR COMMITTEE/BOARD ACTIONS Resolution No. 04-16 Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement and Meeting Attendance and Compensation. PROJECT/CONTRACT COST SUMMARY NIA BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION See Attachments. ALTERNATIVES NIA CEQA FINDINGS NIA ATTACHMENTS 1. Staff Airline Travel 2. District Travel Policy 3. Directors' Travel Expense Policy 4. Board Agenda Report dated 5126104 H:\dept\agenda\FAHRIFAHR2005\ 1105105-1 DO.Airline Travel Card.doc Revised: 06/04/03 Book Page 152 Page2 Airline Travel Based on American Airlines (Navigant) Invoices Paid July through September, 2005 Name Destination Airline Airline$ Total$ Reason Corina Chaudhry Las Vegas, NV American 220.90 1,958.18 Business Process Mapping Training Michael Moore Chicago, IL American 360.90 659.59 WEF Water Policy Meeting WEF/EPA Innovative Uses of Agricultural Animal Manure, Biosolids Michael Moore Chicaqo, IL American 366.90 1,137.73 & Paper Mill Residue David Ray Milwaukee. WI American 1,039.50 1,808.03 Witness Testing for Project FE03-24 9th Annual Research Reuse Jane Tran Orlando, FL American 587.80 1,623.52 Conference Charles Winsor Boston, MA United 582.30 2,175.40 WEF Collections Systems 2005 Legislative meetings with Scott Baugh Blake Anderson Sacramento. CA Southwest 236.90 236.90 re: SB 926 Computerized Maintenance Robert Bell Indianapolis, IN Continental 392.30 2,598.30 Management Summit NFPA 79 Electrical Standard for Richard Birdsell Oakland, CA Southwest 241.40 571.40 Industry Machinery Seminar Joe Chester Pittsburgh, PA Continental 609.30 1,174.55 Factory testing of motors Specifying & Managing Protective Douglas Kanis Seattle, WA Alaska 372.90 1,167.90 Coatings Projects Training NFPA 79 Electrical Standard for James Mullins Oakland, CA Southwest 241.40 571.40 Industry Machinery Seminar NFPA 79 Electrical Standard for Madan Patel Oakland, CA Southwest 241.40 571.40 Industry Machinery Seminar NFPA 79 Electrical Standard for Jeff Shubik Oakland, CA Southwest 241.40 571.40 lndustrv Machinery Seminar NFPA 79 Electrical Standard for Jon Thomsic Oakland, CA Southwest 241.40 571.40 Industry Machinery Seminar Federal Advisory Committee on Daniel Tremblay Washington, DC Alaska 373.40 1,397.43 Detection and Quantification NFPA 79 Electrical Standard for Pierre Wong Oakland, CA Southwest 241.40 571.40 Industry Machinery Seminar Paula Zeller San Francisco, CA American 320.90 1,864.84 WEF Joint Technology Conference EPA's Pharmaceuticals in the Jeff Armstrong Las Vegas, NV Southwest 113.90 536.71 Environment meeting Utility Executive Leadership Institute David Ludwin San Jose, CA American 184.90 893.90 Conference Michael Moore Hilton Head, NC American 617.80 2,772.31 NACWA 2005 Summer Conference WEF's Animal Agriculture & Processing: Managing Environmental Michael Moore St. Louis, MO American 328.90 328.90 Impacts Conference Sam Mowbray Denver, CO United 267.90 1,761.19 WateReuse 20th Annual Symposium Oceans 2005 Americas MTS/IEEE George Robertson Dallas/Fort Worth, TX American 459.30 2,269.50 Conference Phillip Sullivan Charlotte, NC !American 1,238.80 1 721.63 Testing of VFD Directors Legislative meetings with Scott Baugh Lou Correa Sacramento, CA Southwest 236.90 416.60 re : SB 926 Legislative meetings with Scott Baugh James Silva Sacramento, CA Southwest 236.90 571.40 re : SB 926 Washington, DC & US Airways & Attend legislative meetings and Steve Anderson Monterey, CA America West 972.80 1,451.45 League of Cities Executive Meeting Page 1 of2 11/2/2005 Book Page 153 Airline Travel Paid Directly by Employee July throuqh September 2005 Name Destination I Airline Airline$ Total$ Reason CWEA Collection System Mid-Year Tom Blanda Redding, CA Alaska 243.00 444.87 Committee Meeting A&WMA's 98th Annual Conference & Carla Dillon Minneapolis, MN American 288.30 1,864.59 Exhibition A&WMA's 98th Annual Conference & Vlad Kogan Minneapolis, MN United 380.20 1,951.39 Exhibition Jim Matte New Orleans, LA American 315.28 3,527.07 ASSE Conference Bob Taylor New Orleans, LA American 332.99 3,077.20 ASSE Conference Paula Zeller Oakland, CA JetBlue 116.90 481.67 CWEA Board Meeting & Workshop Michelle Hetherington Kalamazoo, Ml Northwest 480.00 839.73 EMS 201 Workshop EPA Sponsored Utility Management Doug Stewart Washington, DC Continental 469.30 1,037.18 Workshop WEF 2005 Specialty Cont. Series Adam Nazaroff Boston, MA JetBlue 420.40 1,783.35 (Collection System 2005) California Pollution Control Financing Layne Baroldi Sacramento, CA Southwest 224.90 283.15 Authority Meeting Tom Blanda Denver, CO United 431.89 603.67 Coast Trunk Sewer Rehabilitation Jim Colston Oakland, CA Southwest 228.90 295.67 Tri-TAC Meeting Technical Conference: Diesel Emissions Reduction for Public Vlad Kogan Sacramento, CA United 240.41 488.21 Agency & Ulill!Y Fleets Doug Rulison Orlando, FL American 391.30 391.30 AutoDesk User Conference Layne Baroldi Redding, CA Southwest 232.90 232.90 CASA Meeting Technology 2005: Working to Protect Jerry Evangelista San Francisco, CA American 149.91 983.33 Public Health Mark Kawamoto Oakland, CA JetBlue 116.90 157.65 California FOG Work Group Jeremy Saum Cincinnati, OH America West 568.80 3,111.45 Radiation Safety Traininq State Water Resources Control Board Jim Colston Sacramento, CA Southwest 224.90 320.93 (SWRCB) Meeting Grand Total 17,427.68 55,829.67 Page 2 of 2 11/2/2005 Book Page 154 G Orange County Policy Number: C110.00 Sanitation District Effective Date: December 15, 2004 Subject: TRAVEL POLICY Supersedes: July 21, 2004 Approved by: Lisa L. Tomko 1.0 PURPOSE 1.1 The purpose of this policy is to establish uniform guidelines and procedures pertaining to off-site travel for job-related meetings and training functions. 2.0 ORGANIZATIONAL UNITS AFFECTED 2.1 This policy applies to all Orange County Sanitation District (OCSD) employees. 3.0 POLICY 3.1 It is OCSD's policy to reimburse employees for authorized travel and business expenses in accordance with the procedures of this policy. 4.0 PROCEDURE 4.1 GENERAL INFORMATION 4.1.1 OCSD will reimburse employees for reasonable travel expenses incurred in the course of representing OCSD at job-related meetings or training functions provided that approval is obtained in advance. 4.1.2 Employees are to exercise every effort to minimize travel and meeting expenses by utilizing the least expensive method of travel. 4.1.3 Related documents and forms are listed in section 7.0. The Excel forms associated with this policy are accessible through: h:\ntglobal\forms\training and meetings -authorizations and expenses. 4.1.4 In determining whether a function shall be considered a meeting or a training function, determine how the majority of time is spent during the function. If the majority of time is spent in a convention or conference-type atmosphere, the function shall be considered a meeting. If the majority of the time is spent learning new skills, then the function shall be considered training. 4.1.5 Travel Approval -The procedures for obtaining approval to attend off-site meetings or training functions shall be established within each department/ division. The Travel Authorization Request form can be used to facilitate the approval process and is accessible through: h:\ntglobal\forms\training and meetings -authorizations and expenses. 4.1.6 Travel arrangements shall be made as far in advance as possible to take advantage of discounted or reduced fares and rates. Page I of8 Book Page 155 4.1. 7 Business travel expenses incurred in excess of those described in this policy are not reimbursable. For example, If employees choose to drive instead of fly from Los Angeles to Phoenix, the total reimbursement will not exceed the amount that would have been Incurred had air travel been used (e.g., mileage, lodging and meal expense reimbursements resulting from car travel cannot exceed the amount that would have been required if air travel had been used). 4.1 .8 Employees will be responsible for repaying OCSD for any expenses paid on their behalf by OCSD that are subsequently determined to be excessive. 4.1.9 OCSD's reimbursement plan has been developed to be considered an "accountable plan" by the IRS. The plan includes a combination of reimbursements based upon receipts and a "per diemtl component approved by the IRS. You should check with your income tax preparer if you have any questions. Travel reimbursement amounts are not reported on your annual W-2. 4.2 REIMBURSEMENT 4.2.1 A Travel Expense Reimbursement form and a Daily Expense Breakdown form (if applicable) shall be completed if any eligible out-of-pocket expenses have been incurred. In addition the employee shall also attach applicable receipts such as airfare itinerary, detailed hotel receipt; rental car contract and receipt, etc. Receipts are not required for authorized meals. 4.2.2 A Travel Expense Reimbursement form shall be completed and submitted no later than two weeks after the travel has occurred. 4.2.3 Original receipts are required for all reimbursable expenses except meals regardless of the dollar amount. See section 4.7 for meals. 4.2.4 The approval level required on the Travel Expense Reimbursement form is based on total expenses incurred. Employees cannot approve their own travel expenses. 4.2.5 The de_signated department/division travel coordinator is responsible for auditing and signing the Travel Expense Reimbursement form. They shall also ensure that all applicable forms are completed and attached; applicable receipts are attached, when required; and appropriate signatures have been obtained. 4.2.6 Travel and reimbursement requests shall be forwarded to the appropriate division; Accounting for meetings or the Human Resources Employee Development division for training functions. 4.3 LODGING 4.3.1 Lodging shall be in a hotel, motel or lodge. Hotel/motel rooms shall be standard (single occupancy) rather than deluxe accommodations. The employee shall pay lodging expenses directly. Direct billings to OCSD for employee lodging will not be accepted uhless the circumstances are unavoidable and written authorization from the General Manager's office is obtained in advance. 4.3.2 Meals or other reimbursable charges on the hotel bill will be applied towards, and must not exceed, the daily reimbursement maximum. Page 2 of8 Book Page 156 4.3.3 Overnight stays may be allowed for meetings or training functions lasting more than one day in OCSD's general geographical area (Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties) when the travel time involved is significant. Such matters will be determined on a case-by-case basis and at the discretion of the appropriate supervisor, manager or department head. 4.3.4 Making Reservations -When making hotel reservations, always ask for the lowest available rate the hotel is offering (e.g., government, season special), which may be lower than the convention/conference rate. 4.3.5 Canceling Reservations -A traveler canceling the reservation shall do so according to the hotel's policy in order to avoid charges. OCSD does not reimburse for non-canceled reservations, early departure. or late cancellation charges unless approved by the Department Head via an "Exceptions-Unauthorized Expenditures" memo. 4.4 GROUND TRANSPORTATION 4.4.1 Employees shall select the most economical, practical means of ground transportation that is appropriate for the particular site. 4.4.2 Reimbursement for personal auto usage for business will be calculated per the current Internal Revenue Service (IRS) guidelines. This rate is subject to change. 4.4.3 Automobile mileage is reimbursable if an employee is required to use a personal vehicle for travel within OCSD's general geographical area, which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Mileage is based upon the following: • If an employee drives round-trip from their residence to a meeting or training function, the round-trip mileage the employee would have driven from his/her residence to work must be subtracted from the round-trip mileage to the event. Any excess mileage is reimbursable to the employee at the current IRS approved rate. • If an employee drives round-trip from work to a meeting or training function, the round-trip mileage from OCSD to the event is reimbursable at the current IRS approved rate. 4.4.4 OCSD shall pay local transportation costs from the employee's residence to the departure airport and from the departure airport to the employee's residence. Local transportation to and from a departing airport shall be by bus, shuttle or taxi. If the employee uses his/her personal vehicle, then mileage is reimbursable at the current IRS approved rate. 4.4.5 The reimbursable mileage for air travel departures is the mileage between the last stop (e.g., OCSD or employee's residence) and the terminal. The reimbursable mileage for air travel arrivals is the mileage between the terminal and the first stop (e.g., OCSD or employee's residence). 4.4.6 Parking at the departure airport is reimbursable with receipts. 4.4. 7 Round-trip mileage expenses are reimbursable when family chauffeuring is the most economical alternative. Page 3 of8 Book Page 157 4.4.8 OCSD vehicles may be used to transport business guests (see Policy F41.00, Vehicle Usage: section 4.6.9). 4.4.9 Travel while at the local destination may be by shuttle, bus or taxi, as needed. A rental car may be allowed when it is more economical. 4.5 AUTO RENTALS 4.5.1 Rental Car Reservations -Employees shall utilize either World Wide Travel Service Inc. (see World Wide Travel Service Inc. information in section 4.6.2) or the Internet, whichever is more cost effective, to secure rental car reservations. Internet reservations may require employees to charge their personal credit card. Employees will be reimbursed for pre-approved reservations made on their personal credit card after they submit a detailed receipt of the charges. Reservations made through the Internet require a written statement from the employee detailing the cost savings. 4.5.2 Rented autos shall only be used when no other means of transportation is economically feasible. Use of airport or hotel shuttles is encouraged. 4.5.3 Class size -Intermediate or standard model, mid-size car (Class C), or the smallest size compatible with the specific need, are to be used. Exceptions shall be explained on an "Exceptions-Unauthorized Expenditures· memo signed by the Department Head. The original copy of the car rental contract and receipt must be attached to the "Travel Expense Reimbursement" form. 4.5.4 Insurance -OCSD is insured or self-insured for damage to rental cars used on company business. ONLY the "Loss Damage Waiver Fee" is to be accepted and is reimbursable. Any additional insurance purchased for the rental car Is not reimbursable. 4.5.5 Rental Contract -When completing the rental agency contract, sign for OCSD. not as an individual (i.e. Orange County Sanitation District, CA, by (your name). 4.5.6 Gas Surcharge -OCSD will not pay fuel surcharges. 4.5.7 Damage -In the event of damage to rental cars, all details of the event reported to the police and/or the rental firm shall also be provided to OCSD Safety Division within 24 hours of the incident. 4.6 AIR TRAVEL 4.6.1 Airline Reservations -OCSD staff shall utilize either World Wide Travel Service Inc. (see World Wide Travel Service Inc. information in section 4.6.2) or the Internet, whichever is more cost effective, to secure airline reservations. Internet reservations may require employees to charge their personal credit card. Employees will be reimbursed for pre-approved reservations made on their personal credit card after they submit a detailed receipt of the charges. 4.6.2 Contact information for World Wide Travel Service Inc. -All travel arrangements with World Wide Travel Service Inc. shall be made through department/division designated travel coordinators. Page 4 of8 Book Page 158 Business Address Business Phone Business Phone 2 Business FAX Contact E-mail Web Page World Wide Travel Service Inc. 2228 Cottondale Lane, Ste 200 P.O. Box 2701 Little Rock, AR 72203-2701 1-800-824-1565 ( Option 1 ) 1-800-643-3788 (501) 378-2615 Rhonda Bateman rbateman@wwts.com www.worldwidetravel.com 4.6.3 Frequent Flyer Miles -Employees who belong to frequent flyer programs are entitled to personally use all bonuses accrued by them on company business. Under no circumstances, however, may employees purchase more expensive tickets in order to accumulate frequent flier mileage or upgrade the class of service. First or Business Class upgrades may be used as Jong as the original ticket still represents the lowest practical airfare. 4.6.4 Excess Baggage Fees -OCSD will not reimburse for excess baggage fees if not related to company business. This includes sporting equipment. 4.6.5 Alternative Airports -Alternative airports within close proximity (Los Angeles, Long Beach, and Ontario) shall be used if the savings exceed $150. 4.6.6 Lost or Unused Tickets/Ticket Changes -Once an employee accepts an airline ticket on behalf of OCSD, he or she is responsible for it. If the employee loses his/her ticket, the employee must incur any related fees. Unless directed by OCSD management, an employee who fails to use or changes an airline ticket for his/her convenience shall incur any related fees. It is the employee's responsibility to contact the agency that issued their ticket to find out how to remedy lost, unused or ticket change situations. 4.6.7 Flight Limitations -There shall be no more than four (4) OCSD employees total per flight. 4.6.8 Saturday Night Stay-over -OCSD may require a Saturday night stay-over if the stay- over results in significant cost savings to OCSD. In general, it is expected that business meetings that start on Tuesday or end on Thursday will not justify a reimbursement for Saturday night stay-over. Saturday night stay-over expenses are reimbursable only if the sum of the airfare plus the expenses of the additional lodging, meals and incidentals resulting from the stay- over are less than the lowest available airfare without the stay-over. 4.6.9 Flight Insurance -Flight insurance is not reimbursable. 4.7 MEALS/INCIDENTALS 4.7.1 On overnight stays, or travel beyond the normal work day, OCSD employees are entitled to a "per diem" reimbursement per day depending upon the destination. The daily maximum includes amounts for breakfast, lunch and dinner and an allowance for incidentals. Receipts are not required to receive the per diem amount. Page 5 of8 Book Page 159 4.7.2 Per Diem amounts have been approved by the Board of Directors and comply with the Federal Meals Incidental Expense Rates found in the Code of Federal Regulations 301- 11.18. Use of these rates allows OCSD's reimbursement plan to be considered an "accountable plan" by the IRS. The file containing the daily rates and governing destinations is accessible through: h:\ntgloba/\forms\training and meetings - authorizations and expenses\Domestic Per Diem Rates. 4.7.3 When a training function or meeting does not involve overnight stay, the meal reimbursement shall not exceed the individual maximums above for the meals that are appropriate for travel times. 4. 7.4 Provided Meals -Meal expenses are not reimbursable if furnished as part of the event and included in the registration or if provided by others. 4.7.5 Meals served by airlines are not counted as a full meal. If an airline serves breakfast, for example, an employee remains eligible for the breakfast per diem. 4.8 GROUP EXPENSE REIMBURSEMENT 4.8.1 When employees travel in a group, they shall pay their own expenses. If this is not practical, one member of the group may pay. Expense reimbursement form shall include: • Names of the individuals for whom the expense has been incurred • Department number(s) to be charged • Circumstances involved Expenses for meals etc. cannot exceed individual maximums on an average per employee basis. 4.9 COMBINING BUSINESS AND PERSONAL TRAVEL 4.9.1 If an employee combines business and personal travel, the personal travel expenses will be paid directly by the employee. For trips in which the primary purpose is personal, OCSD pays only that portion of the trip directly related to business. 4.9.2 Business travel is based on actual business expenses incurred. Therefore, no adjustment is permitted between expense categories (e.g., funding extra airfare expense in exchange for reduced lodging in a private home on a personal side trip). 4.9.3 In general, it is not appropriate for family members to accompany employees on business trips. Any costs incurred on behalf of family members are not reimbursable. 4.10 FOREIGN TRAVEL 4.10.1 Regardless of when expense reports are submitted, the exchange rate for converting foreig n currency expenses into U.S. dollars will be the rate in effect at the time the U.S. dollars are converted to foreign currency and supported by receipts. Page 6 of8 Book Page 160 4.11 TELEPHONE CALLS 4.11.1 Business telephone calls and modem services are reimbursable with receipt. On overnight stays, a $4.25 per day allowance is provided for personal telephone calls. Employees with OCSD-issued cellular phones are encouraged to use their cellular phones for calls. 4.12 CASHADVANCE 4.12.1 Cash advances may be requested for overnight stays FOR EMERGENCY PURPOSES ONLY. The minimum request amount per trip is $100. The maximum request amount is $250 per trip. To receive a cash advance, the traveler is required to complete a "Request for Emergency Cash Advance" form, obtain proper signatures and submit the completed form to the Accounting Division. 4.13 NON-REIMBURSABLE EXPENSES 4.13.1 Expenses that are personal (not directly connected with OCSD business) are not reimbursable unless there are extenuating circumstances approved by the General Manager. These include, but are not limited to the following: • Clothing and toiletries • Personal side trips, personal entertainment and personal trip insurance • Fees for use of recreational, health and gym facilities • Home maintenance, baby sitting and pet boarding expenses • Personal legal charges and traffic violations • Loss or theft of cash, travelers checks, travel tickets and credit cards • Loss, theft or damage to personal property such as luggage, auto and clothing • Medical expenses • Accident related costs resulting from an employee's business use of a personal auto • Tips exceeding 15% • Movies • Alcohol 4.14 AGENCYNENDOR-REIMBURSED EXPENSES 4.14.1 When any meeting or training fees are to be reimbursed by an outside agency or vendor, the agency/vendor shall provide a letter to the employee stating exactly which expenditures will be reimbursed. The letter shall accompany the employee's reimbursement package. The designated travel coordinator shall prepare a letter to the agency/vendor listing all expenditures that the agency/vendor has agreed to reimburse and enclose a copy of the agency/vendor authorization letter and copies of all receipts. This letter is copied to the employee and to Accounts Receivable in the Finance Department so that the payment can be credited to the proper account. Page 7 of8 Book Page 16 I 4.15 REIMBURSEMENT FOR NON-OCSD EMPLOYEES 4.15.1 Occasionally, OCSD requests others to travel either to OCSD properties or on behalf of OCSD. In those Instances, the Department Head shall prepare a letter authorizing the travel. After completing the travel, the traveler submits a detailed invoice along with a payment request voucher to Accounts Payable for processing. A copy of the authorization letter shall accompany the payment request voucher. 4.16 EXCEPTIONS 4.16.1 Exceptions to the policy shall be indicated on the original Travel Expense Reimbursement form. Additionally an Exceptions-Unauthorized Expenditures memo shall be completed, signed by the Department Head and attached to the package. 5.0 PROVISIONS AND CONDITIONS 5.1 Employees shall have Department Head approval in writing before agreeing to appear on a panel or to give a presentation on behalf of OCSD. Failure to do so may preclude attendance. 6.0 RELATED DOCUMENTS 6.1 Travel Expense Reimbursement form 6.2 Airfare Payment Request Voucher form 6.3 Registration Payment Request Voucher form 6.4 Request for Travel Authorization form 6.5 Lost -Unavailable Receipts memo 6.6 Request for Emergency Cash Advance form 6. 7 Federal Meals and Incidental Expense Rates per Code of Federal Regulations (CFR 301-11.18). 6.8 Policy C190.00, Variable Non Base Pay 6.9 Policy F41.00, Vehicle Usage Policy Page 8 of8 Book Page 162 Book Page 163 • Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle for business of OCSO. • When traveling on the business of OCSD, the Director shall be entitled to reimbursement of expenses necessarily incurred in the course of said travel in accordance with the following: • Transportation -Per Invoice • Hotel -Per Statement • Registration -Actual Cost • Telephone Service -As Itemized • Meals, Gratuities, Incidentals -Actual expenditures per day or $70.00 per day if actual expenditures are greater. Resolution OCSD-04-16, ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, MEETING ATTENDANCE AND COMPENSATION The Resolution reads in part: • The Chair of the Board will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. • Directors shall be familiar with and comply with the Policy; ensure all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair can approve or deny requests for travel or business activities and reimbursements for Board and Committee Members. 18 Book Page 164 • Attendance at seminars, conferences and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. • Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry, and may be asked to, or may desire to, give presentations or otherwise represent the District at such events. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the full Board of Directors. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. • The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. • Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Free, local seminars must also be authorized in advance in order to be considered for approval of Director compensation. Preference will be given to seminars that are provided within the Southern California region. • Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States will not be approved except by vote of the District's Board of Directors' Steering Committee. • "Meetings" shall mean all regularly convened Board of Directors Meetings, Standing Committee 19 Book Page 165 Meetings, Ad Hoc Committee Meetings, and other Meetings called by the Board Chair. Also included are specific industry conferences and business meetings of a recurring nature, such as the California Associations of Sanitation Agencies and the Association of Metropolitan Sewerage Agencies, designated by the Board Chair. Meetings not sanctioned by the Board Chair are not considered business of the District. • Directors shall receive a stipend as compensation, without further action or authorization of the Chair or the Board of Directors for attendance at the following: Board of Directors meetings; Standing Committee and Ad Hoc Committee meetings, of which the Director is a duly appointed member; meetings, conferences and committee meetings of CASA and AMSA; meetings of other governmental agencies, at which the District has an official delegate. • Each day's service rendered as a member of the District's Board of Directors shall be deemed to include: attendance at any meeting of a committee of which the Director is not a member, when expressly invited to attend said Committee Meeting by the Chair of the Board of Directors; attendance at conferences with State and/or Federal Legislators regarding District business when approved by action of the Board of Directors; attendance at a meeting, hearing, or conference relating to the business of the District, when approved by action of the Board of Directors or when designated by the General Manager with the concurrence of the Chair, in advance, and when deemed to be in the best interests of the District, including but not limited to: a) meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District; b) ceremonial events; c) meetings with other elected officials or 20 Book Page 166 their employees, which do not include District staff; d) meetings of the governing body of another agency of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency; e) meetings with District staff; f} industry related conferences other than CASA or AMSA; and f} telephone conferences when physical attendance is impractical or not mandatory. • Board members shall not be compensated for the following meetings where there is no District-related business to be conducted: non-profit organization meetings or events; District-sponsored employee events; social or ceremonial events not pre- authorized by the Board; service club meetings other than those previously listed; parades, festivals, holiday events, or retirement dinners; meetings with existing or potential contractors, vendors or consultants; meetings of partisan political organizations. • No Director shall receive compensation for attendance at any meeting, such as Committee Meetings, which are scheduled immediately preceding, immediately succeeding, or concurrent with a regularly-scheduled District Board Meeting. • No Alternate Director shall receive compensation for attendance at any meeting unless serving in the absence of the regular, Active Director. 21 Book Page 167 Book Page l 68 STEE RIN G CO MM ITTEE Meeting Date To Bd. of Dir. 0S/26/04 AGENDA REPORT ltem Number Item Number 12(c) &· (d) Orange County Sanitation District FROM: Penny Kyle, Board Secretary SUBJECT: ESTABLISHING POLICY RE DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE COMPENSATION GENERAL MANAGER'S RECOMMENDATION (1) Adopt Resolution No. OCSD 04-16, Establishing Policy re Directors' Business and Travel Expense Reimbursement and Meeting Attendance Compensation; and, (2) Consideration of first reading of proposed Ordinance No. OCSD-23, An Ordinance of the Board of Directors of Orange County Sanitation District, Amending Ordinance No. OCSD-14 Establishing Board of Directors Compensation. SUMMARY Please refer to attached General Counsel's memorandum dated May 17, 2004. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. IZ] Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Memo dated May 17, 2004 Resolution No. OCSD 04-16 Proposed Ordinance No. OCSD-23 H:ldept\agenda\FAHRIFAHR2005\1105\05-100.Airline Travel Card-Att 4.doc Revised: 8/20/98 Book Page 169 Page 1 Book Page 170 RESOLUTION NO. OCSD 04-16 ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, AND MEETING ATTENDANCE AND COMPENSATION A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, AND MEETING ATTENDANCE AND COMPENSATION WHEREAS, the District, by previously adopted Ordinance No. OCSD-14, has established Board of Directors' compensation for meeting attendance; and, WHEREAS, Board Members are entitled to a flat fee stipend as compensation for attendance at District meetings, or for each day of service rendered as a member of the Board, together with reimbursement for certain expenses associated with the attendance at District meetings, or other service on behalf of the District; and WHEREAS, the Board of Directors deems it desirable to establish a policy for the compensation related to meeting attendance, and the reimbursement of business and travel expenses incurred by Board Members related thereto. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and meeting attendance and Compensation, set forth on Exhibit "A", attached hereto and incorporated herein by reference. PASSED AND ADOPTED at a regular meeting held May 26, 2004 Chair ATTEST: Board Secretary WS&S -TLW:pj:#184463:05/10/04 Book Page 1 71 EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION Article I. Business and Travel Expense Reimbursement It is the District's policy to reimburse Board Members for authorized business and travel expenses in accordance with the procedures of this Policy. This Reimbursement Plan has been developed and is considered an "accountable plan" by the Internal Revenue Service. The Plan includes a combination of reimbursements based upon receipts and for a "per diem" component approved by the Internal Revenue Service. The District, through the Chair of the Board, will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. This Policy applies to all regular and alternate District Board Members authorized to represent the District in business or travel activities. At all times, District representatives serve the public and must do so within the ethical and business performance standards expected of a public agency. Prudent judgment and full compliance with District policies is required. Failure to use discretion in the incurring of business expenses may result in the loss of discretionary travel privileges. Sufficient funds must be included in the current Fiscal Year's operating or capital improvement budgets for all business and travel expenses to be paid or reimbursed under this Policy. Non-compliance with the Policy or falsification of reports or documentary evidence may result in corrective action, including criminal prosecution. Section 1: Terms and Definitions. A. "Accountable Plan" shall mean the Internal Revenue Service Publication for Travel, Entertainment, Gift and Car Expenses. Expenses must have a business connection. Expenses must be adequately documented and include evidence such as receipts, canceled checks, invoices, or credit card statements to support the expenses, and must be submitted within sixty (60) days after they were paid or incurred. Any excess reimbursement must be returned within sixty (60) days. WS&S -TLW:pj:#184463:05/10/04 Book Page 172 B. "Approval by the Board" shall mean Board of Directors approval at a regularly-scheduled Board Meeting with a quorum present and acting. C. "Alternate Board Member" shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. When the Board Member is absent, the Alternate Board Member becomes the Board Member, and everything in this Policy applies. The Alternate Board Member and the Board Member cannot both be compensated for the same event without prior approval by the Board Chair. D. "Board Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. E. "Board Member" shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. F. "Committee Member" shall mean any Member of the Board of Directors, appointed to a Standing or Ad Hoc Committee, established by an action of the Board or Board Chair. G. "Days Service Rendered" shall mean attendance as described in Article II, Section 13, below. H. "Director" shall mean a Member of the District's Board of Directors. I. "Incidentals" shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. K. "Travel Expenses" shall mean transportation, lodging, meals, and incidentals expenses associated with attending a seminar, conference, or meeting requiring an overnight stay. L. "Travel Liaison" shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. Section 2: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate WS&S -TLW:pj:#184463:05/10/04 Book Page 1 73 multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair can approve or deny requests for travel or business activities and reimbursements for Board and Committee Members. B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all unreconciled expenses regarding travel matters. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. Sec_tion 3: Travel Liaison. The Travel Liaison shall arrange all travel, lodging, accommodations, and seminar/conference registrations for the Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case-by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. Section 4: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 5: Seminars, Conferences, and Meetings. A. Attendance at seminars, conferences, and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. B. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry, and may be asked to, or may desire to, give presentations or otherwise represent the District at such events. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the full Board of Directors. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to submit a request to act as District Representative to WS&S-TLW:pj:#184463:05/10/04 Book Page l 7 4 the Board, the Board Chair has the authority to approve such a request in advance; this approval would then be subsequently submitted for ratification at the next regularly scheduled Board meeting. C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an Officer of the Association. D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Free, local seminars must also be authorized in advance in order to be considered for approval of Director compensation. Preference will be given to seminars that are provided within the Southern California region . E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States will not be approved except by vote of the District's Board of Directors' Steering Committee. Section 6: Ground Transportation . A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. WS&S -TLW:pj:#184463:05/10/04 Book Page 175 E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. G Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffer-driven limousines is not allowed while conducting District business. Section 7: Air Transportation. A. Air transportation must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air transportation should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. Section 8: Lodging. When travel is to a conference, the conference- sponsored hotel should be used to minimize cost. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference-sponsored hotel, other lodging accommodations may also be arranged if the cost is less than or equal to the conference-sponsored hotel, unless an exception for a higher rate is approved in advance by the General Manager. No lodging within sixty (60) miles of the District's Administrative Offices or the Director's residence, whichever is less, will be reimbursed. WS&S -TLW:pj:#184463:05/10/04 Book Page 176 Section 9: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. Meals for Directors' guests will be reimbursed only if they have a legitimate business relationship with the District. A. Reimbursement When Receipt Provided. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts indicated below. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast Lunch Dinner Snacks $15.00 $20.00 $25.00 $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $70 per travel day under the Receipt Method. If a receipt is missing, reimbursement will be the maximum per meal amount allowed for that meal, based upon certification that the receipt was lost. Receipts must be a detailed receipt from the restaurant for actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. If detailed receipts are not available, the Director can still be reimbursed at the lower amounts pursuant to Subparagraph 8 below. Credit card receipts may be accepted, subject to Board Chair approval if itemized, detailed meal receipts are not provided by the restaurant. 8. Reimbursement When Receipt Not Provided. When no receipts are submitted with the request for reimbursement, Directors will be reimbursed for meal expenses, including all taxes and gratuities, based upon published Internal Revenue Service Guidelines referred to as "CONUS" rates. These rates vary by travel destination and are located on the District's intranet site under "Forms", or at www.gsa.gov (per diem rates). A copy of the January 2004 rates is attached to this Policy. Directors will be reimbursed the allowance amount, whether actual meal expenses are less than or greater than the allowance amount. No WS&S -TLW:pj:#184463:05/10/04 Book Page 177 expense documentation is required for reimbursement in accordance with this Policy. When no receipt is provided, there are six (6) levels of reimbursement based upon the travel destination. For partial days of travel the individual components may be reimbursed as follows: ( 1) (2) (3) (4) (5) (6) Breakfast $ 6 $ 7 $ 8 $ 9 $ 9 $10 Lunch $ 6 $ 7 $ 8 $ 9 $11 $12 Dinner $16 $18 $20 $22 $24 $26 Incidentals $ 3 $ 3 $ 3 $ 3 $ 3 $ 3 Daily Maximum $31 $35 $39 $43 $47 $51 During travel, these amounts may be aggregated to allow a total per day. As an example, multiple meal expenses may be combined to allow for a more expensive single meal. However, reimbursement shall not exceed the Daily Maximum for the destination per travel day, when no receipts are provided. C. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. iii. Meals provided to a spouse or guest. iv. Alcoholic beverages consumed by a Director or others. Section 10: Extended Travel and/or Travel with Family Members. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days will be considered the same as a day's service rendered; provided, approval is obtained from the Board Chair in advance. WS&S-TLW:pj:#184463:05/10/04 Book Page I 78 Section 11: Requests for Reimbursement. A. Requests for reimbursement shall be submitted to the District Controller not later than sixty (60) days after payment by the individual and shall be submitted on forms provided by the District. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair . All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to in-room movies, service bar, etc. will not be reimbursed. B. All expense reports shall include detailed receipts (except for meals to be paid pursuant to Section 9.8. above) and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. Article II. Meeting Attendance and Compensation Section 12: Directors shall be paid a stipend as compensation, at the rate determined by the Board of Directors, and adopted by Ordinance No. OCSD-14 as amended, for attendance at Meetings, as defined below, and for each Day's Service Rendered as a Member of the Board. "Maximum Meetings Allowed Per Month" shall mean for the Board Chair, ten (10) meetings, or ten (10) days' service rendered per month; for all other Directors, six (6) meetings or six (6) days' service rendered per month. "Meetings" shall mean all regularly convened Board of Directors Meetings, Standing Committee Meetings, Ad Hoc Committee Meetings, and other Meetings called by the Board Chair. Also included are specific industry conferences and business meetings of a recurring nature, such as the California Association of Sanitation Agencies and the Association of Metropolitan Sewerage Agencies, designated by the Board Chair. Meetings not sanctioned by the Board Chair are not considered business of the District. Section 13: Directors shall receive a stipend as compensation, without further action or authorization of the Chair or the Board of Directors for attendance at the following: Board of Directors meetings; Standing Committee and Ad Hoc Committee meetings, of which the Director is a duly appointed member; meetings, conferences and committee meetings of CASA and AMSA; meetings of other governmental agencies, at which the District has an official delegate. WS&S -TLW:pj:#184463:05/10/04 Book Page 1 79 Section 14: Each Day's Service Rendered as a Member of the District's Board of Directors, shall be deemed to include, but not be limited to: A. Attendance at any Meeting of a Committee of which the Director is not a member, when expressly invited to attend said Committee Meeting by the Chair of the Board of Directors. B. Attendance at conferences with State and/or Federal Legislators regarding District business, when approved by action of the Board of Directors. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by action of the Board of Directors, or when designated by the General Manager, with the concurrence of the Chair, in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events. iii. Meetings with other elected officials or their employees, which do not include District Staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. v. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or Association of Metropolitan Sewerage Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. Section 15: Non Compensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: WS&S-TLW:pj:#184463:05/10/04 Book Page 180 A. Nonprofit organization meetings. 8. Nonprofit organization events. C. District-sponsored employee events, including but not limited to the annual holiday luncheon, employee picnic, or retirement events. D. E. 14(C)(i) above. F. G. consultants. Social or ceremonial events not pre-authorized by the Board. Service club meetings other than those included in Section Parades, festivals, holiday events, or retirement dinners. Meetings with existing or potential contractors, vendors, or H. Meetings of partisan political organizations. Section 16: No Director shall receive compensation for attendance at any meeting, such as Committee Meetings, which are scheduled immediately preceding, immediately succeeding, or concurrent with a regularly-scheduled District Board Meeting. Section 17: No Alternate Director shall receive compensation for attendance at any meeting unless serving in the absence of the regular, Active Director. The Policy was duly adopted, by action of the Board of Directors, on May 26, 2004 and shall be effective upon its adoption. WS&S -TLW:pj:#184463:05/10/04 Book Page 18 l Book Page 182 LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION MEMORANDUM TO : Chair and Members of Board of Directors Orange County Sanitation District FROM: General Counsel DATE: May 17, 2004 RE: Resolution re Directors' Business Expense Reimbursement and Meeting Compensation At the direction of the Board of Directors and its Steering Committee, an Ad Hoc Committee of Directors Steve Anderson and Brian Brady, undertook a study and drafting of a revised Policy on the subject of Directors' compensation and business expense reimbursement. First, I think it is particularly noteworthy that your Board and the Steering Committee undertook this effort prior to either the series of public articles by the Sacramento Bee setting forth abuses by elected officials at the Sacramento Suburban Water District, and prior to the introduction of SB 1272 by Senator Debra Ortiz. The Board Members can take pride that this proposed action to adopt the comprehensive Resolution is not a reaction to either of those events, but rather is due to the foresight and overall good management that the Board and District have been known for. The Subcommittee, in working with my Office, looked to other Agencies' policies, and in general, selected the best parts of each to compile into the comprehensive Resolution that is presented for your consideration. It has now been presented to the Steering Committee, who endorsed it unanimously, and recommends it for adoption. Procedurally, the District's existing Policy has been contained in Ordinance No. OCSD- 14, adopted most recently on January 24, 2001. That Ordinance principally was enacted to establish the stipend to be paid to Directors as their per diem compensation for attendance at each meeting, and to establish the maximum number of meetings for which payment could be made in the course of a month. It also provided a very skeletal outline regarding expense limitations and guidelines, which frankly, have worked quite well over the years and have been relatively easy for the Finance Department to administer. The Subcommittee received no indications from the Board or the Steering Committee of a desire to evaluate and consider possible increases in the stipend for meeting attendance. At the present time, the Directors receive the sum of $170 for each meeting attended or each day of service rendered on behalf of the District. Under the provisions of the existing law, the District's Directors would be authorized to enact an Ordinance increasing that by an amount not to exceed 5% for each year (a total of 3 years), or $8.50 per year, for a total of $25.50, resulting in a new maximum of $195.50. -iR2005\1105\0 Book Page 183 May 17, 2004 Page 2 The Subcommittee did not consider that and is not recommending any change to the per diem stipend amount. Because of the uncertainty of the pending legislation, SB 1272, which proposes to establish a maximum per diem stipen d of $100 per meeting or day of service, the Subcommittee determined to place on "hold" the entire subject of per diem compensation and is presenting to the Board for consideration, the Resolution to address the business expenses. Procedurally, in order to keep the existing authorization for payment to the Directors, we are processing and submitting for your consideration an amendment to Ordinance No. OCSD-14 that will allow the $170 per meeting or day of service to remain in effect, with the rest of the Ordinance repealed and replaced by the detailed business expense provisions contained in Exhibit "A" of this Resolution. The following is a condensed summary of the major items of interest and concern by the Subcommittee concerning the Resolution. • Section 1 is entirely new and adds definitions to provide the highest level of clarity and remove all uncertainty from the interpretation of the Resolution provisions. • Section 5 re: seminars, conferences and meetings is the product of considerable discussion by the Subcommittee and consideration of several other Agencies, as well as one of the objectives of SB 1272. Essentially, it only allows for attendance and reimbursement at those meetings or conferences that provide directly related benefits to both the District and the Director. • Sections 6, 7 and 8 provide more specific guidelines and limitations relative to reimbursable expenses for ground and air transportation, as well as lodging, when traveling on District business. -iR2005\1105\0 It should be noted that SB 1272 contains a provision that would limit the maximum reimbursement allowed to a Director or employee of an amount equal to the State of California's published travel expense limits. This is being strenuously argued, debated, and lobbied by representatives of all of the organizations and major public agencies, in light of the fact that conferences almost always have to utilize the facilities of major large hotels in order to have the requisite facilities and amenities for conducting those conferences. These hotels simply do not set daily room rates at the lower amount of the State limit. This would result in Directors or employees having to personally absorb the difference between the approved rate and the actual conference cost, and the Agencies would be barred from reimbursing the individual for that amount. Quite clearly, this would discourage many people from undertaking their beneficial training programs. Book Page 184 May 17, 2004 Page 3 • Section 9 is a major change and was the subject of considerable discussion by the Subcommittee, and as presented, is in two parts, which are optional for use by a Director when traveling on District business. In summary, it allows for the District to reimburse the actual amount of a meal expense for each, provided that the specific receipt is submitted with the reimbursement request. Alternatively, the Director can submit a request for reimbursement without any receipts, but receive a considerably reduced amount on a flat rate basis. The actual flat rate amount will be determined by the published schedule of the Internal Revenue Service, and is determined by location and average cost at the location. • Re Article II, Meeting Attendance and Compensation. As noted above, because of the uncertainty of the pending SB 1272, a final decision and recommendation concerning the amount of the daily stipend, as well as the maximum number of meetings allowed, has been deferred by your Subcommittee and the Steering Committee. Section 12 of this Policy keeps in place the present District provisions including reimbursement for 1 O meetings or days of service per month for the Chair, and 6 meetings or days of service per month for all other Directors. When the final decision is made by the State Legislature on SB 1272, whether enacted or defeated, this subject will be revisited. • Sections 13, 14 and 15 are perhaps the most important, in that a great deal of effort was expended by the Subcommittee to define, with particularity, (a) those instances and those meetings, whereby a Director would be compensated by payment of the per diem stipend; and (b) those instances where attendance would be deemed voluntary on the part of the Director without payment. The Steering Committee has recommended its approval, and as General Counsel, I recommend approval of this Resolution in its present form as meeting the authorizations and requirements of existing State laws. TLW:pj cc: Mr. B.P. Anderson Mr. G.G. Streed Ms. P. Kyle -lR2005\1105\0 THOMAS L. WOODRUFF GENERAL COUNSEL Book Page 185 Book Page 186 FAH R COMM ITTEE Meeting Date 11/9/05 AGENDA RE PORT Item Number FAHR05-101 Orange County Sanitation District FROM: Patrick Miles, Director of Information Technology Originator: Pongsakdi Cady, Senior Information Technology Analyst SUBJECT: ELECTRONIC TIME ENTRY SYSTEM GENERAL MANAGER'S RECOMMENDATION Information only. SUMMARY To Bel. of Dir. 11/16/05 Item Number • The needs assessment conducted of the OCSD Financial Information System (FIS) determined that one of the least efficient processes at OCSD is the collection of time card data for the purpose of generating payroll. • Currently OCSD does not have an electronic Time Entry System. • OCSD personnel use Excel spreadsheets to enter time with no validation of codes against any database. • Some Operations & Maintenance labor data must be entered into the Computerized Maintenance Management System (CMMS) work order system and all OCSD time sheets are entered into ERP by the Payroll staff. • To improve accuracy in timekeeping and simplify the timekeeping process, Capital Improvement Project J-104 was developed and approved in the FY 2004/05 Budget. • A Request for Proposal (RFP) to implement a Time Entry System was issued in March 2005. The RFP adhered to established formal bidding requirements with four respondents submitting proposals for this service. • A panel comprised of representatives from Finance Department, Operations and Maintenance Department, Engineering Department, Public Affairs Department, Human Resources Department, and Information Technology Department interviewed the top three respondents in May. • In order to facilitate the development and negotiation of project schedules, resources and commitments, staff seeks authorization to enter negotiations and subsequently award an agreement for these needed services. • A detailed presentation was given to the Managers on 9/29/05. The Managers gave unanimous approval to present the acquisition and implementation of the WorkForce timekeeping system to EMT for approval and subsequent presentation to the OMTS Committee for final approval. Book Page 187 PROJECT/CONTRACT COST SUMMARY The software cost is $53,625, implementation services cost is $86,000, training cost is $7,000, and contingency is $28,375 for a total cost of $175,000. The total project budget is $250,000. This agreement is an anticipated expense and there is sufficient funding for this agreement. The $175,000 amount represents the purchase and implementation contract plus any contingency. Contingency funding is requested due to the unforeseen cost of implementing necessary business process improvements discovered during the implementation. BUDGET IMPACT rgj This item has been budgeted. (Line item: 2005-06 Budget Section 8, page 9 Project No. J-104) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. D Not applicable (information item) ADDITIONAL INFORMATION The Project Goals • The Project goal, as approved during the FY 2004/2005 budget process, is to implement a web based time entry program. • Benefits to be realized include: • An intuitive web-based time entry. • Account validation with the current CMMS and FIS system. • Improved data access and functionality. • Incorporation of necessary business process improvements. • Electronic signature approvals through the use of workflow. • The ability for managers and supervisors to delegate their approval authority when necessary. • E-mail reminder for time entry and approval. • On-line time off requests and approval. • Fair Labor Standards Act (FLSA) compliant. • By implementing an electronic time-entry system, OCSD expects to achieve organization-wide efficiencies. For instance, employees will submit and supervisors will approve timecards electronically rather than in a paper format. Paper timecards will no longer be physically delivered to payroll and payroll will no longer physically file paper timecards. Instead, timecards will be electronically batched by division, electronically submitted to payroll for review, and electronically stored by batch. • Time savings will be achieved organization-wide as timecards will only be prepared once. Currently, an employee prepares a timecard, accounting staff enters the timecard into the financial system, and maintenance division staff enters certain timecards into the CMMS system. Page2 Book Page 188 The Bidding Process This migration effort specified on the RFP includes all installation, project management, application and technical consulting services necessary to complete the implementation of the Time Entry System. • The request for proposal resulted in four viable responses (Hourdoc, Journeyx, Kronos, and Workforce Software). • Respondents' proposals were then judged by a panel comprised of Information Technology, Operations & Maintenance, Engineering, Human Resources, Public Affairs, and Finance staff. • The panel rated and scored the proposals based on qualifications, staffing, project organization, completeness and feasibility of approach. Pricing was deliberately omitted during this process. • The panel arrived at a short list of firms presenting the best ability to perform the requested implementation successfully. Proposal pricing was then revealed to narrow the selection to the three contractors brought on-site for software demonstration. • Pricing for the three interviewed companies ranged from a low around $125,000 to a high of $235,000. • The two companies rated the highest after the interview processes were asked to provide references for site visits. • Kronos provide us with a reference to US Borax in Wilmington, CA. On July 19th the evaluation committee visited US Borax and talked to the user of the Kronos system. • WorkForce Software was not able to provide us with reference to a local site visit, but they did provide an internet site with the software loaded and configured. • The requested authorization will allow OCSD to set a start date and schedule that is most beneficial to OCSD and one that is compatible with existing work responsibilities. • The requested authorization enables OCSD to identify and secure the specific implementation team best suited to meet the unique requirements of OCSD. ALTERNATIVES Continue using the current timekeeping process. CEQA FINDINGS ATTACHMENTS None Book Page 189 Page 3 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 . I ] FAHR CO MMITTEE AGE NDA REPO RT Orange County Sanitation District FROM: Lorenzo Tyner, Director of Financerrreasurer Originator: Michael D. White, Controller Meeting Date To Bet of Dir. 10/12/05 10/26/05 Item Number Item Number FAHR05-94 SUBJECT: TREASURER'S REPORT FOR THE MONTH OF SEPTEMBER 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of September 2005. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the Orange County Sanitation District's professional external money manager, and Mellon Trust serves as the Sanitation District's third-party custodian bank for the investment program. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. The Sanitation District's Investment Policy, adopted by the Board, includes reporting requirements as listed down the left most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies" portfolios. The Sanitation District's external money manager is operating in compliance with the requirements of the Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there is one investment policy compliance exception. It pertains to the holding of one security within PIMCO's Long-Term Operating Monies Portfolio that had an acceptable rating at the time of purchase but has since fallen below the minimum rating allowed by the investment policy. The Sanitation District's investment policy requires a minimum rating of A3 by Moody's or A- by S&P, with at least a BBB rating in the event of a split rating, at the time of purchase. The rating exception pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.47 percent of the portfolio holdings, whose rating from Moody's has fallen several times, from A3 to BA 1, then to BA3, B3, B, and finally to CA. Likewise, the rating from Standard & Poor's has also fallen several times, first from A-to BBB, then to BB, then to B+, B-, and finally to CCC+. Both rating agencies have since withdrawn their ratings, Moody's in February 2004 and Standard & Poor's in June 2004. Although these ratings are less than what is required at the time of purchase, PIMCO believes, based on the financial strength of UAL and the underlying collateral of the security, that the Sanitation District would suffer an unwarranted loss if the security was sold at this time. H:ldeptlagenda\FAHR\FAHR200511105\05-94.Treasurer Report.doc Page 1 The Sanitation District's investment policy does not require any action because of "credit watch" notices or the decline in credit standing. However, PIMCO will continue to monitor the credit for this security very closely. Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The Sanitation District's portfolios are priced to market ("mark-to-market") as of the last day of each reporting period. The slight differences in value are related to minor variations in pricing assumptions by the valuation sources at the estimate date. BUDGET IMPACT D This item has been budgeted. (Line item: ) D This item has been budgeted, but there are insufficient funds. D This item has not been budgeted. ~ Not applicable (information item) ADDITIONAL INFORMATION Schedules are attached summarizing the detail for both the short-term and long-term investment portfolios for the reporting period. In addition, a consolidated report of posted investment portfolio transactions for the month is attached. The attached yield analysis report is presented as a monitoring and reporting enhancement. In this report, yield calculations based on book values and market values are shown for individual holdings, as well as for each portfolio. Mellon Trust, the Sanitation District's custodian bank, is the source for these reports. Transactions that were pending settlement at month end may not be reflected. Also provided is a summary of monthly investment balances and transactions within the State of California Local Agency Investment Fund (LAIF). These reports accurately reflect all Sanitation District investments and are in compliance with the Sanitation District's Investment Policy and previous requirements of California Government Code Section 53646. Government Code Section 53646 mandated that annual investment policies and quarterly reports be rendered to the legislative body. AB2853, which was signed on September 29, 2004, amends Government Code Section 53646 to remove the requirements; the rendering of these documents is optional. Although the Annual Investment Policy and Monthly and/or Quarterly Reports are no longer required, we believe it prudent to continue providing the legislative bodies with these documents. In addition, Government Code Section 53607 has not been repealed that requires an annual delegation of investment authority to the Treasurer and the submission of reports that include investment transactions by month. Sufficient liquidity and anticipated revenues are available to meet budgeted expenditures for the next six months. The tables on the following page details the book balances of the Sanitation District's investment accounts at month-end and a summary of the Cost of Funds on debt issues. A graphical representation of month-end balances is shown on the attached bar chart. H:ldeptlagenda\FAHRIFAHR200511105\05-94.Treasurer Report.doc Page2 Book Balances Estimated Investment Accounts September 30, 2005 Yield(%) State of Calif. LAIF $7,180,808 3.18 (1) Union Bank Checking Account 964,572 3.18 (1) Union Bank Overnight Sweep Account 301,000 2.95 PIMCO -Short-term Portfolio 59,221,453 3.79 PIMCO -Long-term Portfolio 251,250,513 4.45 Petty Cash 4000 N/A TOTAL $318 922 346 4.29 Debt Service Reserves w/Trustees $64 j6Z 568 3.98 (1 ) This 1s the annualized yield for the month of August. The September annualized rate was not available as of the date of this report. Cost of Funds Issue Description 1992 Syn Fixed 1993 Syn Fixed 2000 VRDO 2003 Fixed TOTAL Weighted Avg Cost of Funds ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Annual Outstanding Interest COP Balance Rate(%) $ 100,275,000 5.55 42,050,000 4.56 199,000,000 2.38 280,000,000 5.15 $62j 325 QQQ 4.29 1. Graph of Monthly Investment Balances by Type -Last Six Months 2. Investment Transactions and Balances in the State Local Agency Investment Fund 3. PIMCO Monthly Investment Recap & Yield Analysis Report 4. PIMCO Performance Monitoring Report -Liquid Operating Monies 5. PIMCO Performance Monitoring Report -Long-Term Operating Monies 6. Mellon Trust Asset Summary by Asset Type with Sectors -Liquid Operating Monies 7. Mellon Trust Asset Summary by Asset Type with Sectors -L-T Operating Monies 8. Mellon Trust Yield Analysis Report 9. Mellon Trust Asset Detail -Consolidated 10. Mellon Trust Transaction Detail -Consolidated MW:bg H:\dept\agenda\FAHRIFAHR2005\ 1105\05-94.Treasurer Report.doc Page 3 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2005 Par Value Book Value Market Value Balance September 1, 2005 $7,580,808 $7,580,808 $7,580,808 Deposits: 9/8/2005 6,000,000 6,000,000 6,000,000 Total Deposits 6,000,000 6,000,000 6,000,000 Withdrawals: 9/14/2005 (1,500,000) (1,500,000) (1,500,000) 9/23/2005 (4,000,000) (4,000,000) (4,000,000) 9/26/2005 (900,000) (900,000) (900,000) Total Withdrawals (6,400,000) (6,400,000) (6,400,000) Balance September 30, 2005 $7,180,808 $7,180,808 $7,180,808 (1) Rate 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 (1) This is the annualized yield for the month of August. (1) Yield 3.18 3.18 3.18 3.18 3.18 3.18 3.18 3.18 The September annualized rate was not available as of the date of this report. PIM C 0 October 7, 2005 Mr. Mike White, CPA Controller Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Dear Mike: The following is a description of events in the bond markets during the month of September in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid portfolios over the period. Also included is a section on our outlook and preferred strategies to be pursued in your portfolios during the coming months. Bo11d Market Recap: The bond market sold off in September as the majority of fixed income sectors posted negative returns. U.S. Treasuries returned -1.33 percent over the month, underperforming the S&P 500 return of +0.81 percent. Yields on U.S. Treasuries rose sharply across all maturities, largely driven by concerns of accelerating inflation and another rate hike by the Fed. Mortgage-backed securities returned -0.53 percent, slightly underperforming Treasuries by 5 basis points after adjusting for duration. Corporate bonds returned-1.5 percent as measured by the Lehman Credit Index, marginally underperforming Treasuries by 2 basis points after adjusting for duration. High yield bonds outperformed both Treasuries and investment-grade issues, with the Lehman High Yield Index returning -1.0 percent. The Lehman U.S. TJPS Index returned -0.14 percent in September, surpassing comparable nominal Treasuries for the month. The benchmark 10-year Treasury yield climbed steadily in September, ending the month at 4.33 percent, 31 basis points higher than the beginning of the month. While overall economic data was mixed, the market focused on positive indicators that suggested economic growth and higher inflation; unit labor costs rose more than forecasted for the second quarter, unemployment fell from 5.0 percent in July to 4.9 percent in August, and U.S. service companies reported unexpected strong growth for the month. Further implications of economic growth were lower oil prices, which fell from a prior-month record high of 70 dollars a barrel, as Hurricane Rita spared Houston's oil refineries from a direct hit. Investor concern about the increase in U.S. government debt needed to pay for the Hurricane Katrina's damages provided additional upward pressure on rates. Finally, U.S. Treasury yields were further lifted, as investors concluded that the Fed would continue to raise rates. On September 20, the Federal Open Market Committee (FOMC) met the market consensus and raised short-term rates a quarter point for the 11th consecutive time to 3. 75 percent, indicating that inflation pressures are building and that "measured" rate increases are likely to continue. The Fed will meet two more times this year, on November l st and December 13th. On the inflation front, the Labor Department reported that Core CPI gained 0.1 percent and Core PCE rose 0.2 percent over the month. GDP grm,vth for the second quarter remained at 3.3 percent annualized, a slight decrease from the 3.8 percent growth rate in the first quarter. Mr. Mike White, CPA Orange County Sanitation District October 7, 2005 Page2 Treasury yield changes during the month of September are summarized as follows: • 3-month bills: +4 basis points to 3.54% • 6-month bills: +21 basis points to 3 .92% • 2-year notes: +35 basis points to 4.16% • 5-year notes: + 33 basis points to 4.19% • I 0-year notes: + 31 basis points to 4.32% • 30-year notes: + 31 basis points to 4.57% Perfnrmauce Altribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned -0.41 % on a total return basis for the month of September, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 9 basis points. The following points summarize returns for the month ended September 30: • The Long-Term portfolio outperformed the benchmark by 9 basis points for the month. • For the twelve-month period, the Long-Tenn portfolio returned 1.98%, outperforming the benchmark by 96 basis points. • Portfolio duration, near the benchmark during the month, was neutral for performance as interest rates rose across the yield curve. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was positive for performance as the credit sector underperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was negative for performance as the sector lagged Treasuries on a duration-adjusted basis. Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.30% during the month of September, slightly outperforming the 3- month Treasury Bill Index. The following points summarize returns for the period ending September 30: • The Liquid portfolio outperformed the benchmark by 3 basis points for the month. • For the twelve-month period, the Liquid portfolio returned 2.68%, outperforming the benchmark by 16 basis points. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Mr. Mike White, CPA October 7, 2005 Page3 Orange County Sanitation District Outlook and Stroteg1: The U.S. economy will grow more slowly over the next year with some increase in headline consumer price inflation. Despite this inflationary pressure, the yield on the IO-year Treasury is unlikely to move much beyond 4.50 percent, and could fall to 3.75 percent. The combination of slower growth and continued flows of capital into U.S. fixed income markets from high saving countries will keep rates in ihis range. The Federal Reserve will stop tightening at a federal funds rate near 4 percent as growth decelerates and the housing market cools. A higher than usual level of uncertainty is attached to PIMCO's forecast because it is not clear how several key factors will play out. The first is the lagged impact of higher energy prices over the past year, driven by increased demand from China and elsewhere. Another is the more recent jolt delivered by higher natural gas and gasoline prices in the aftermath of the hurricanes on the U.S. Gulf Coast. Additionally, the U.S. economy will be hit with a slowing property market arising from reduced affordability of housing. An offsetting positive factor is the continued strength of U.S. corporate investment. The key elements of PlMCO's forecast are: • • • A Slowdown In U.S. Housing ... The direction of the U.S. housing market will be a critical factor in determining Fed policy over the next year. Recent gains in the U.S. property market have not only supported consumer confidence but also produced a surge in housing-related employment and residential investment. The greatest threat to the housing market is a decline in affordability. The last decade's gains in home prices relative to incomes are not sustainable because higher mortgage rates and increased energy prices will reduce what consumers can afford . ... But Not A Collapse -PIMCO believes that while the U.S. property market suffe.rs from regional froth, the bubble does not extend nationwide. A soft landing, meaning a slowing in the rate of appreciation but not a crash, is the most likely scenario. Housing is not expected to crash because supply and demand around the country are relatively balanced, lending conditions are favorable and low unemployment continues to support personal incomes and demand. European Growth To Remain Meager -Domestic demand in Euroland is weak even though the region has enjoyed housing gains relative to personal incomes that exceed those in the U.S. The reason is anemic real wage growth, which dampens consumer confidence. There is no reason to expect these conditions to change over a cyclical time frame. Should the European Central Bank take any action over the next year, it will likely be in the direction of easing. Japan and China To Contribute -Japan 's recovery appears durable after many false starts in the recent past. While investment by Japanese companies still tags their cash flows, the momentum in capital spending is strong. Consumer confidence is on the rise given improved labor market conditions and wage gains. Lower expected volatility in China's economy will be positive for grO\vth throughout Asia. Tighter credit conditions have cooled the surging Chinese property market and prodded a shift in investment away from real estate. China's recent revaluation is expected to have little impact on its trade balance as wage differentials between China and developed economies remain substantial. • Benign Core Inflation -Strong competition in globally traded goods and services will restrain core inflation (CPI less food and energy prices) even as headline inflation measures rise. Inflation is well contained in Euroland, where slow growth has driven core inflation below 2 percent. Japan will likely tum the corner from deflation to modest inflation. Mr. Mike White, CPA Orange County Sanitation District October 7, 2005 Page4 To the extent that guidelines allow, PIMCO will employ a diverse range of strategies to enhance portfolio yield while still protecting investors' capital if macroeconomic stability unravels. Key strategies will include: • Interest Rate Strategies -We will target duration moderately above the index given an expected slowdown in growth, but retain tactical flexibility to trim this exposure should rates drop toward the lower end of our forecasted range. PIMCO will avoid longer maturity U.S. Treasuries, which offer little extra yield now that the yield curve has flattened considerably and are more sensitive to shifting expectations for headline inflation. Shorter maturities that react more to central bank policies are a better value given our forecast that Fed tightening will stop near 4 percent. • Mortgage-Backed Bonds -PIMCO will overweight mortgage-backed bonds, which continue to be an important structural holding because of their high credit quality and yield advantage versus Treasuries. However, most of PJMCO's added value will come from mortgage coupon and security selection. • Corporates -Valuation continues to be a major risk in the corporate bond markets. With corporate credit premiums overall near historic lows, PIMCO will retain hs underweight to corporates. Pockets of value do exist, however, in select sectors with strong collateral protection, such as autos, telecom and utilities. We look forward to discussing these and other topics with you in the near future. Best regards, Christine Telish, CF A Vice President John M. Miller, CFA Senior Vice President Orange County Sanitation District for the month ending September 30, 2005 Total Return Account -203 W11h Ac .ru~d Interest Market Value Book Value Yield to Maturity Short Term Account -603 253,447,399 253,023,875 4.45 With Acorncd lnlert:51 Market Value Book Vnlue Yield to Maturity 59,468,762 59,472,779 3.79 Without Accrued Interest 251,371,687 250,948,164 4.49 Without Accrued I mere. t 59,227,858 59,231,874 3.81 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2005) Liquid Operating Monies (603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO • Mellon Historical Cost: • PIMCO • Mellon I 15.1.2 MODIFIED DURATION Of Portfolio: Oflndex: 15.1.3 1% INTEREST RATE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of P011folio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY A verae:e Portfolio Credit Qualitv: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Comnliance" 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%) by Period: 1 Month: 3 Months: 12 Months: Fiscal Year-to-Date: Commentary • The Liquid portfolio outperfonned the benchmark by 3 basis points for the month, and outperfonned the benchmark by 7 basis points fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper and short-tenn notes contributed to performance. C:\Documcnts and Scttlngs\crane\Local Scttings\Tcmporary Internet Fllcs\OLK3\LIQ0800-05-09 RPT.doc Page 1 of 1 $59,468,762 $59,467,811 $59,472,779 $59,468,813 0.15 0.20 $89,203 0% 72% "AAA" 0% Yes Portfolio Index 0.30 0.27 0.87 0.80 2.68 2.52 0.87 0.80 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2005) Long-Term Operating Monies (203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO • Mellon Historical Cost: • PIMCO • Mellon 15.1.2 MODIFIED DURATION Of Portfolio: Oflndex: 15.1.3 1 % INTEREST RA TE CHANGE Dollar Impact (gain/loss) of 1 % Change: 15.1.4 REVERSE REPOS % of Portfolio in Reverse Repos: (see attached schedule) 15.1.5 PORTFOLIO MATURITY % of Portfolio Maturing within 90 days: 15.1.6 PORTFOLIO QUALITY Average Potifolio Credit Quality: 15.1.7 SECURITIES BELOW "A" RATING % of Portfolio Below "A": 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%) by Period: 1 Month: 3 Months: 12 Months: Fiscal Year-to-Date: • The Long-Tenn portfolio outperformed the benchmark by 9 basis points for the month, and outperfonned the benchmark by 36 basis points fiscal year-to-date. • Portfolio duration, near the benchmark, was neutral for monthly perfonnance as interest rates rose across the yield curve. • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was positive for perfonnance, as the credit sector underperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was negative for performance as the sector lagged Treasuries on a duration-adjusted basis. Page 1 of2 $253,447,399 $253,388,110 $253,023,875 $255,095,779 2.44 2.42 $6,184,117 0% 4% AAA 0% No* Portfolio Index -0.41 -0.50 0.20 -0.16 1.98 1.02 0.20 -0.16 *Compliance Issues: MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2005) Page 2 of2 S 1,600,000 par of United Airlines (UA L) Pass-Through 2001-1-C (Enhanced Equipment Trust Certificate (EETC) -9093 l 7BC2), 6.831 %,coupon, 3/01/201.0 maturity, represen1ing 0.63 % of the portfolio holdi ngs on a par basis was purchased on 8/10/200 I ; and subsequently downgraded by Moody's from A3 to BAI (on 9/18/2001.) and S&P from A-to BBB (on 9/20/200 I). The security was funher downgraded by MoodyTs from BA 1 to BA3 (on 12/21/2001 ) and by S&P from BBB lo BB (en 6/28/02). Following news of the possibl e bankruptcy fi ling, the security was further downgraded in August B3 Moody's, B+ by S&P). On Nove mber 29, 2002, S&P furrher downgraded this issue to B, and shortl y thereafter on December 9, 2002, downgraded tl1c issue one notch further to B-. On A11gust 7, 2003 , S&P downgraded the issue to CCC+, while Moody's fo llowed suit on August 28, 2003 with a downgrade to CA. Both rati ng agencies have since withdrawn their raliugs (Moody's vvithdrcw iti..Februaiy 2004 and S & P withdrew in June 1004). The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P, with at least a BBB rating in the event ofa split. On October 6, UAL said JP Morgan and Citigroup have agreed to arrange a $3 billion all-debt financing package to help the air carrier exit bankruptcy in February. UAL said it signed a commitment letter for the financing for a six-year tem1. The $3 billion will be used to repay UAL's debtor-in-possession loans, make other payments required upon exit from bankrnptcy and ensure strong cash balances to conduct post-reorganization operations. UAL has been restructuring in bankruptcy since December 2002. In that time, the airline has used its court protection to slash labor costs and dump its underfunded pension plans. Last month, UAL filed its plan of reorganization with the court. If the plan wins court approval, the airline will begin to solicit votes for confirmation of the plan. PIMCO continues to negotiate with United on our holdings and currently leads an ad hoc committee. This has been an extremely complicated effort due to the complex nature ofUnited's bankruptcy. These negotiations have required PIMCO's analysts access to non-public information and therefore sharing them results in parties becoming restricted. In light of this extremely complicated bankruptcy, PIMCO continues to strive to act in the most prudent manner to obtain maximum recovery. Split Rated Securities Still ln Compliance: The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P, with at least a BBB in the event ofa split rating. $1,750,000 par of Virginia Electric Power NT securities (cusip 927804EN0), maturing on March 31, 2006, represents 0.69% of the portfolio holdings on a par basis. The security was downgraded on 10/21/2002 by S&P from A-to BBB+, but continues to cany a Moody's rating of A3. C:\Doc111ne11t.~ a11d Setti11gs\cra11e\Local Set1i11gs\Temporary I11temet Files\OLK3\L-T0800-05-09 RPT.doc Asset Summary ~LIQrllD OPER-PIMCO-OCSF07511102 by Asset Type with Sectors ______ ')f?,Qf ~QQ~ Description CASH & CASH EQUIVALENTS U.S. DOLLAR INTEREST CERTIFICATES OF DEPOSIT -DOMESTIC COMMERCIAL PAPER -DISCOUNT FED HM LOAN BNK -LESS THAN 1 YR FEDERAL HOME LOAN MORTGAGE -LESS THAN 1 FNMA ISSUES -LESS THAN 1 YR MUTUAL FUNDS REPURCHASE AGREEMENTS TREASURY BILLS -LESS THAN 1 YR U.S. DOLLAR CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES U.S. DOLLAR BANKING & FINANCE U.S. AGENCIES UTILITY -TELEPHONE U.S. DOLLAR FIXED INCOME SECURITIES TOTAL ASSETS -BASE: Cost Shares Par Base 246,357.72 4,000,000.000 4,000,000.00 4,059,000.000 4 ,031,013.90 10,500,000.000 10,432,109.89 11,200,000.000 11,074,467.61 11,700,000.000 11,513,492.47 116,678.540 116,678.54 11,800,000.000 11,800,000.00 3,300,000.000 3,239,272.67 56,675,678.540 56,453,392.80 56,675,678.540 56,453,392.80 1,304,000.000 1,316,076.60 700,000.000 691,824.00 1,000,000.000 1,007,520.00 3,004,000.000 3,015,420.60 3,004,000.000 3,015,420.60 59,679,678.540 59,468,813.40 1 Report ID: GL~251 Base Currency: USD Alternate Base Currency: Exchange Rate: Ste,t:us: FINAL Market Value Base 246,357.72 4,000,000.00 4,031,013.90 10,432,109.89 11,074,467.61 11,513,492.47 116,678.54 11,800,000.00 3,239,272.67 56,453,392.80 56,453,392.80 1,311,767.80 700,000.00 1,002,650.00 3,014,417.80 3,014,417.80 59,467,810.60 % of Total 0.41% 6.73% 6.78% 17.54% 18.62% 19.36% 0.20% 19.84% 5.45% 94.93% 94.93% 2.21% 1.18% 1.69% 5.07% 5.07% 100.00% Net Unrealized Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o.oo 0.00 -4,308.80 8,176.00 -4,870.00 -1,002.80 -1,002.80 -1,002.80 Workbench Asset Summary by Asset Type with Sectors LONG TERM OPER-PIMCO · OCSF07522202 9/30/2005 Description CASH & CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES INTEREST MUTUAL FUNDS U.S. DOLLAR CASH & CASH EQUIVALENTS FIXED INCOME SECURITIES U.S. DOLLAR ABS -AIRPLANE RECEIVABLES ABS -HOME EQUITY ABS -STUDENT LOANS BANKING & FINANCE COLLATERALIZED MORTGAGE OBLIGATION FHLMC MULTICLASS FHLMC POOLS FNMA POOLS GNMA MULTI FAMILY POOLS GNMA SINGLE FAMILY POOLS INDUSTRIAL INFLATION INDEXED SECURITIES PVT PLACEMENTS -MORE THN 1 YR U.S. AGENCIES U.S. GOVERNMENTS UTILITY -ELECTRIC U.S. DOLLAR FIXED INCOME SECURITIES TOTAL ASSETS -BASE: Shares Par 750,018.800 750,018.800 750,018.800 1,600,000.000 350,900.660 2,587,990.370 41,950,000.000 1,146,403.330 690,309.890 48,358.680 51,255,389.520 2,685,580.960 433,268.600 2,000,000.000 25,701,262.680 752,000.000 29,279,165.720 174,318,126.090 3,150,000.000 337,948,756.500 337,948,756.500 338,698,775.300 Cost Base -85,650,707.15 2,137,597.27 750,018.80 -82,763,091.08 -82,763,091.08 1,600,000.00 350,900.66 2,588,293.65 42,047,079.10 1,146,403.33 691,045.30 47,179.93 51,904,690.46 2,677,439.95 454,204.66 1,998,188.00 26,247,197.61 826,199.84 28,744,251.24 173,391,956.07 3,143,840.00 337,858,869.80 337,858,869.80 255,095,778.72 1 Report ID: GL8251 J Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL --------~~ ----- Market Value Base -85,650,707.15 2,137,597.27 750,018.80 -82,763,091.08 -82,763,091.08 980,000.00 350,826.97 2,589,931.36 41,986,583.82 1,148,294.90 686,147.32 49,756.73 51,146,871.71 2,707,211.30 450,854.97 1,999,680.00 27,177,768.95 826,199.84 28,647,732.46 172,242,683.37 3,160,657.50 336,151,201.20 336,151,201.20 253,388,110.12 % of Total -33.80% 0.84% 0.30% -32.66% -32.66% 0.39% 0.14% 1.02% 16.57% 0.45% 0.27% 0.02% 20.19% 1.07% 0.18% 0.79% 10.73% 0.33% 11.31 % 67.98% 1.25% 132.66% 132.66% 100.00% Net Unrealized Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 -620,000.00 -73.69 1,637.71 -60,495.28 1,891.57 -4,897.98 2,576.80 -757,818.75 29,771.35 -3,349.69 1,492.00 930,571.34 0.00 -96,518.78 -1,149,272.70 16,817.50 -1,707,668.60 -1,707,668.60 -1,707,668.60 Workbench YLDANAL YIELD ANALYSIS PAGE 1 0CSF07511102 2005/09/30 RUN DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13.36.30 =~----.-,--a:= " ----- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------------------------------------------- --------------------------------- CASH & CASH EQUIVALENTS 1,100,000.00 BANKAM!-;RICA CORP DISC .000 .000 99,068 1,089,742.50 1.93 0660POYM9 11/21/2005 1,089,742.50 1.84 1,600,000.00 RANKAMERICA CORP DISC .ooo .ooo 99.068 1,585,080.00 2,82 0660POZ71 12/07/2005 1,585,080.00 2,68 1,soo,000.00 CITIBANK NA NY BRH INSTL C/D .ooo 3. 720 100.000 1,soo,000.00 2.66 l7304TXA6 3,720% 11/09/2005 DD 08/09/05 1,soo,000.00 2.53 1,359,000.00 DU PONT DE NEMOUR DISC .ooo ,000 P-1 99,793 1,356,191.40 2.41 26354AXJ8 10/18/2005 1,356,191.40 2,29 51 400,000,00 FEDERAL HOME LN BK CONS DISC ,000 .ooo P-1 99.973 5,398,569.00 9,60 3133B5MM5 MAT 10/03/2005 A-1+ 5,398,569.00 9,12 2,900,000.00 FEDERAL HOME LN BK CONS DISC N .000 ,000 P-1 99.145 2,875,193.72 5,11 313385ND4 MAT 10/19/2005 A-1+ 2,875,193.72 4,85 1,900,000.00 FEDERAL HOME LN BK CONS DISC ,000 .ooo P-1 98,104 1,863,979.17 3.31 313385SQO A-1+ l,B63,979,17 3.15 300,000.00 FEDERAL HOME LN BK CONS DISC N ,000 .ooo P-1 98.123 294,368.00 .52 313385TK2 MAT 02/22/2006 A-1+ 294,368.00 .so 3,300,000.00 FEDERAL HOME LN MTG CORP DISC .000 ,000 P-1 99,973 3,299,125.50 5.86 313397MMO MAT 10/03/2005 A-1+ 3,299,125.50 5.57 2,000,000.00 FEDERAL HOME LN MTG CORP DISC .000 ,000 P-1 99.593 l,971,B65.00 3 .50 313397NS6 MAT 11/01/2005 A-1+ 1,971,865.00 3.33 1,100,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 99,092 1,090,015.03 1.93 313397MZO MAT 11/08/2005 A-1+ 1,090,015.03 1.84 1,900,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 98.254 1,866,820.72 3.32 313397RQ6 MAT 01/10/2006 A-1+ 1,866,820,72 3.15 2,200,000.00 FEDERAL HOME LN MTG CORP DISC .000 .ooo P-1 98,183 2,160,018.36 3.84 313397TR2 MAT 02/28/2006 A-1+ 2,160,018.36 3.65 100,000.00 FEDERAL HOME LN MTG CORP DISC .ooo .ooo P-1 9B.089 686,623.00 1.22 3133971JF6 MAT 03/14/2006 A-1+ 686,623.00 1.16 YLDANAL YIELD ANALYSIS Pl\GE 2 OCSF07511102 2005/09/30 Rim DATE 10/05/05 DISTRICT: LIQUID OPERATING RUN TIME 13.36.30 =================~======================================~===================--=======-----======~=-~-----=======--=-=-===== PAR VALUE YTM AT CURRENT MOODY MA.RKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTl\L -------------------------------------------------,-------------------------------------- 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT ,000 ,000 P-1 98.367 3,934,682.22 7,00 313589NL3 MAT 10/26/2005 A-1+ 3,934,682.22 6.64 3,000,000.00 FEDERAL NATL MTG ASSH DISCOUNT .ODO .000 P-1 98,794 2,963,827,50 5, 27 313589QS5 MAT 12/19/2005 A-1+ 2,963,827.50 5.00 900,000.00 FEDERAL NATL HTG ASSN DISCOUNT .000 .000 P-1 98.270 884,427.75 1. 57 313589SV6 MAT 02/08/2006 A-1+ 884,427.75 1.49 3,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .ooo .000 P-1 98.172 3,730,555.00 6.63 313589TS2 MAT 03/01/2006 A-1+ 3,730,555.00 6.30 3,300,000.00 UNITED STATES TREASURY BILL .000 .ooo P-1 98.160 3,239,272.67 5.76 912795WT4 0.000% 03/16/2006 DD 09/15/05 A-1+ 3,239,272.67 5,47 2,500,000.00 WELLS FARGO BANK NA INSTL C/D .000 3.760 100.000 2,soo,000.00 4.44 9497P23M7 3.760% 10/13/2005 DD 09/27/05 2,500,000.00 4.22 11,soo,000.00 CS FOB CAT 2 REPO REPO .000 3.250 100.000 11,soo,000.00 20.99 99441U490 03,250% 10/03/2005 DD 09/30/05 11,aoo,000.00 19,93 116,678.54 DREYFUS TREASURY CASH MGMT .ooo 3.400 AAA 100.000 116,678,54 .20 996085247 AAA 116,678.54 • 20 ------------------------------------- TOTAL CASH & CASH EQUIVALENTS ,000 ,397 56,207,035.08 100.00 56,207,035.08 94,91 FIXED INCOME SECURITIES 15,000.00 ASSOCIATES CORP NORTH AMER NT-.000 6.359 AAl 100.250 15,112.95 .49 046003FM6 6.375% 11/15/2005 DD 11/21/95 AA-15,037.50 .03 75,000.00 BEAR STEARNS COS INC NTS .ooo 6.875 Al 100.000 75,422.25 2.48 073902AU2 6.875% 10/01/2005 DD 10/05/95 A 75,000.00 .13 112,000.00 BEAR STEARNS COS INC GLOBAL NT .ooo 3,019 Al 99.375 111,364.96 3.69 073902CB2 3,000% 03/30/2006 DD 02/19/03 A 111,300.00 .19 soo,000.00 CIT GROUP INC GLOBAL SR NT .ooo 4 .129 A2 99,910 499,820.00 16.57 125577AN6 4.125% 02/21/2006 DD 02/20/03 A 499,550.00 .84 YLDANAL OCSF07511102 DISTRICT: LIQUID OPERATING PAR VALUE SECURITY ID SECURITY DESCRIPTION ----------------------------·--------------- 100,000.00 FEDERAL HOME LN MTG CORP MTN 3l28XlCU9 2.375% 05/19/2006 DD 05/19/03 soo,000.00 HOUSEHOLD FIN CORP UT 441812FT6 7.250% 05/15/2006 OD 05/15/96 102,000.00 MERRILL LYNCH & CO INC NT 590188FC7 6.250% 01/15/2006 00 01/20/94 1,000,000.00 SOUTHWESTERN BELL TEL CO MEO 84534EDS4 6,560% 11/15/2005 OD 11/15/96 TOTAL FIXED INCOME SECURITIES TOTAL YTM AT BOOK ------ .ooo .ooo .ooo .ooo ----- • 000 ------.000 YIELD ANALYSIS 2005/09/30 PAGE RUN DATE RUN TIME 3 10/05/05 13.36.30 ======-= ------- ---------== CURRENT MOODY MARKET TOTAL COST/ % TYPE YIELD 5-P PRICE MARKET VALUE % TOTAL --------------------------------------------- 2,375 AAA 100.000 691,824.00 23. 22 AAA 700,000.00 1.18 7 .131 Al 101.671 511,620.00 16.86 A 508,355.00 ,86 6,218 AAJ 100.515 102,736.44 3.40 A+ 102,525.30 .17 6.543 A2 100,265 1,007,520.00 33.26 A 1,002,650.00 1.69 ----------------------------------4,502 3,015,420.60 100.00 3,014,417 .BO 5.09 -------------------------------,466 59,222,455.68 100.00 59,221,452.88 100.00 ==== YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 =~==~=============================================-======-==----------===------------=--------~--=---------=---:C----------= PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------·-------------------------------------------------------------- CASH & CASH EQUIVALENTS 750,018.80 DREYFUS TREASURY CASH MGMT .ooo 3.400 AAA 100.000 750,018.80 100.00 996085247 AAA 750,018.80 .22 .oo BSDT-LATE MONEY DEPOSIT ACCT .ooo .ooo .000 .oo .oo 996087094 .oo .oo -----------------------~ TOTAL CASH & CASH EQUIVALENTS .ooo 3.400 750,018.80 100.00 750,018.80 .22 FIXED INCOME SECURITIES 752,000.00 AIG SUNAHERICA GLOBAL REGS .ooo 5.325 109.867 826,199.84 .H U00907AAO 5,850% 08/01/2008 DD 08/08/01 826,199.84 .25 600,000.00 CIT GROUP INC SR NT .000 7,093 A2 103,9B2 632,688.00 .lE! 1255B1AA6 7.375% 04/02/2007 DD 04/01/02 A 623,889.82 ,19 1,soo,000.00 CIT GROUP INC NEW SR NT .ooo 4,310 A2 100,343 1,so1,oos.oo .44 125581AF5 VAR RT 09/22/2006 DD 09/23/03 A 1,505,145.00 . 45 3,300,000.00 CIT GROUP me MTN tSR0D092 .ooo 4. 023 A2 100.250 3,300,000.00 ,98 l2560PDVO VAR RT 05/23/2008 DD 05/25/05 A 3,308,250,00 .98 1,600,000.00 CITIGROUP INC GLOBAL SR NT .ooo 3.751 AAl 99.984 l,600,000,00 ,47 172967CW9 VAR RT 05/02/2008 DD 05/02/05 AA-1,599,744.00 .47 1,000,000.00 FEDERAL HOME LN MTG CORP MTN .ooo 6,239 AAA 100.182 1,002,656,25 ,29 312BX16R3 6.250% 11/14/2013 DD 11/14/03 AAA 1,001,e20.oo .30 10,000,000.00 FEDERAL HOME LN MTG CORP MTN ,000 4.106 AAA 97.420 9,993,100.00 2,89 3128XJWY5 4.000% 09/22/2009 DD 09/22/04 AAA 9,742,000.00 2,B9 2,100,000.00 FEDERAL HOME LN BKS CONS BO .ooo B.B95 AAA 93.315 2,565,820,00 .74 3133X35Q7 VAR RT 02/27/2012 DD 02/27/04 AAA 2,519,504.65 ,75 3,000,000.00 FEDERAL HOME LN BKS CONS BD .000 4,104 AAA 97.457 2,8B2,343.75 ,B6 31339XI<N3 4,000% 03/18/2011 DD 06/19/03 AAA 2,923,710.00 ,B7 4B,358.68 FIILMC GROUP J7B-6064 .ooo 4.172 AAA 102.891 47,179.93 .01 31348SWZ3 6,384% 01/01/2028 DD 12/01/97 AAA 49,756.73 .01 YLO/\NAL YIELD AtfALYSIS PAGE s OCSF07522202 2005/09/30 RUN DATE I 10/05/05 DISTRICT: LONG-TERM OPERATWG RUN TIME 13. 36. 30 =============-------==------=--====~=========================-----==========-===-------------==----------------------------= PAR VALUE YTM AT CURRENT MOODY MARKET TOTl'.L COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---·--------------------------------------------------------~------------------------ 2,350,000,DO FEDERAL NATL MTG ASSN DEBS .000 5.220 AAA 100.582 2,385,461.50 .70 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 2,363,677.00 .70 6,B00,000.00 FEDERAL NATL MTG ASSN DEBS .ooo 3. 271 AAA 95,544 6,575,736.00 1.93 31359MUQ4 3.125% 03/16/2009 DD 03/16/04 MA 6,496,992.00 1.93 551,818.59 FNf·IA POOL #0254510 .000 5.011 AAA 99.784 568,373.l.4 .16 31371KVB4 5,000% 11/01/2017 DD 10/01/02 AAA 550,626.66 .16 l!ll,409.66 FNJ.IA POOL #0254631 .ooo 5,0ll AAA 99,7B3 121,961.96 .03 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 118,152.71 .04 107,194.40 FNMA POOL iD254760 .ooo 5.011 MA 99.776 110,410.23 .03 31371K5V9 5,000% 06/01/2018 DD 05/01/03 AAA 106,954.28 .OJ 48,963.40 FNMA POOL 10254866 ,ODO 5. 012 AAA 99.765 50,432.31 .01 31371LC83 5.000% 09/01/2018 DD 08/01/03 AAA 48,848.34 ,01 363,750.22 FNMA POOL #0254907 .ooo 5,012 AAA 99.761 363,750.22 .10 31371LDLO 5.000% 10/01/2018 DD 09/01/03 AAA 362,880.86 .11 259,190.10 FNMA POOL J0254953 .ooo 5,012 AAA 99.757 262,510.98 .07 31371LE21 5,000% 11/01/2018 DD 10/01/03 AAA 258,560.27 .08 698,081.44 FNMA POOL 40254987 .ooo s.010 AAA 99.806 707,025,61 .20 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 696,727,39 .21 113,254,48 FNMA POOL #0323980 ,000 5,828 AAA 102.946 118,244,76 .03 31374T2MO 6.000% 04/01/2014 DD 09/01/99 AflA 116,590.96 ,03 85,676, 72 FNMA POOL f0357430 .ooo 5,011 AAA 99,772 86,640,58 .02 Jl376AA71 5.000% 09/01/2018 DD 09/01/03 AAA 85,481.38 .03 33,374.37 FNMA POOL #0456482 .ooo 5,828 AAA 102,945 34,844.91 .01 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 34,357.25 .01 92,283.95 FNMA POOL 10509649 ,000 5,828 AAA 102,948 96,350.21 .02 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 95,004.48 .03 BB,3.to.57 FNMA POOL J0535451 .000 S.828 AAA 102.948 92,201.76 .02 3l384VZQ8 6.000% 06/01/2015 DD 07/01/00 AAA 90,913,97 .03 255,211.72 FNMA POOL #0555363 .000 5,011 AAA 99.783 262,868,06 .07 31385W5Yl 5.000% 04/01/2018 DD 03/01/03 II.AA 254,657,91 ,08 YLDANAL YIELD .MTALYSIS PAGE 6 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36,30 ==--===-----=================================-=-============----=========--------=--=----=-==-=====-=--==========~========== PAR VALUE YTM AT CURRENT MOODY MJIRKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ---------------------------------------------------------------------------------- 212,847.7.7 FNMA POOL J0555545 .000 5.011 AAA 99.783 219,232.70 .06 313B5XES2 5,000% 06/01/2018 DD 05/01/03 AAA 212,385.39 .06 733,416.34 FNMA POOL 10555621 ,000 5.010 AAA 99,806 741,667.26 ,21 31385XG68 5.000% 07/01/2018 DD 06/01/03 AAA 731,993.75 .22 408,235.84 FNMA POOL tl06BJ309 .ooa 5.011 AAA 99,783 420,482.9] , l 2 31391Y3S4 5,000% 02/01/2018 DD 02/01/03 MA 407,349.97 .12 48,880.96 FNMA POOL #0681334 .000 s.011 AAA 99.783 50,347.39 .01 31391Y4Tl 5.000% 02/01/2018 DD 01/01/03 AAA 48,774.89 .01 294,761.12 FNMA POOL #0684798 .000 5.496 AAA 100.072 294,507.82 ,OB 31400DX31 5.500% 03/01/2033 DD 03/01/03 AAA 294,973.35 ,09 262,876.33 FNMA POOL f0684908 .ooo 5,011 AAA 99.776 266,244.46 .07 31400D3Rl 5.000% 06/01/2018 DD 05/01/03 AAA 262,287.49 .08 143,723.05 FNMA POOL i!0685200 .ooo 5.011 1\1\l>, 99.783 145,564.52 .04 314DOEGH7 5.000% 03/01/2018 DD 03/01/03 AAA 143,411.17 ,04 217,293.79 FNMA POOL 10686318 • 000 5,011 AAA 99.783 223,812.60 .06 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 216,822.26 .06 86,775.78 Flu-IA POOL f0688739 .ooo 5.011 AAA 99. 776 89,379.05 .02 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 86,581.40 .03 79,8~6.91 FNMA POOL 10689859 ,000 5.011 AAA 99 • 776 80,869.95 .02 31400KMG8 5.000% 05/01/2018 DD 05/01/03 AAA 79,668.05 .02 451,478.80 FNMA POOL #0693834 .ooo s.011 AAA 99.783 465,023.)..4 .13 31400PY74 5.000% 03/01/201B DD 03/01/03 AAA 450,499.09 .13 168,742.93 FNMA POOL f0695852 ,ODO 5.011 AAA 99. 779 173,805.22 .05 31400SBVO 5.000% 05/01/2018 DD 05/01/03 AAA 168,370,01 .os 607,602.98 FNMA POOL #0695889 .000 5.011 AAA 99.77!1 625 1 831.0B .18 31400SC23 5.000% 05/01/2018 DO 05/01/03 AAA 606,260.18 .18 168,193.43 FNMA POOL f0702210 .000 s.010 AAA 99,806 173,239.24 .04 31401ADP9 5.000% 05/01/2018 DO 05/01/03 AAA 167,867,19 .os 100,600.88 FNMA POOL f0702328 .ooo 5.011 AAA 99. 779 101,889.82 .02 31401AllD2 5.000% 05/01/2018 DD 04/01/03 AAA 100,378.55 .03 YLDJ\NI\L YIELD ANALYSIS PAGE I 7 OCSF07522202 2005/09/30 RUN DATE 10/0S/OS DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 =-==--=--::::==~===-----~ -----====.=-=~~-====---====·--=·======-==-=--==::::=.::.:=~=====--== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ------------------------------_____ ,.. __ ------- ------------------------------------ 222,556.44 FIH11\. POOL f0709148 .ooo 5,011 AAA 99.772 229,233.15 ,06 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 222,049.01 .07 48.1,798.25 FNMA POOL ~0709360 .o•o 5 .011 AAA 99.772 487,971.29 .14 31401JB56 5,000% 07/01/2018 DD 06/01/03 AAA 480,699.75 .14 84,910.19 FNMA POOL #0709826 .ooo 5.011 AAA 99,776 85,998.10 .02 31401JSP4 5,000% 06/01/2018 DD 06/01/03 AAA 84,719.99 .03 177,732.17 FNMA POOL i/0709917 .ODO s.011 AAA 99,776 180,009.37 .05 3l401JVJ4 5.000% 06/01/2018 DD 06/01/03 AAA 177 I 334, 05 .05 442,265.07 FNMA POOL #0710235 .ODO 5.011 AAA 99,772 455,533.05 ,13 31401KBC8 5,000% 06/01/2018 DD 06/01/03 AAA 441,256.71 ,13 181,120.97 FNMA POOL t0? 13365 .ooo 5.011 AAA 99. 772 183,441.57 ,OS 3140lNQSl 5.000% 07/01/2018 DD 07/01/03 AAA lB0,708.0l .05 552,900.74 FNMA POOL {0720319 .ooo 5.011 AAA 99.772 559,984.80 .16 31401WG45 5,000% 07/01/2018 DD 07/01/03 AAA 551,640.13 .16 l,B24,128.38 FNMA POOL #0720369 .000 5.010 AAA 99.806 1,878,852.23 .54 31401WJNO 5,000% 06/01/2018 DD 06/01/03 AAA 1,820,590.15 ,54 236,477.37 FNMA POOL !0721629 .ooo 5,011 AAA 99.772 243,571.71 ,07 31401XVW4 S,000% 07/01/2018 DD 06/01/03 AAA 235,938.20 .07 182,401.74 FNMA POOL 110723487 .000 5.011 AAA 99. 772 184,453.78 ,05 31402AXQ4 5,000% 06/01/2018 DD 06/01/03 AAA 181,985.86 .as 2,751,547.34 FtiMA POOL #0725530 .000 5.012 AAA 99,760 2,788,951,17 .81 31402DA75 5,000% 06/01/2019 DD 05/01/04 AAA 2,744,952.10 ,81 317,139.45 FNMA POOL #0729601 .ooo 5,012 AAA 99.768 321,202.81 .09 31402HRW3 5,000% 07/01/2018 DD 07/01/03 AAA 316,403.69 .09 29 I 251. 45 FNMA POOL #0732873 .000 5,012 AAA 99.757 29,626.22 .00 31402MFNS 5.000% 11/01/2018 DD 10/01/03 AAA 29,180,37 .01 928,944.58 FNMA POOL #0735227 .000 5.503 AAA 99,952 936,782.55 ,27 31402QYY1 5,500% 02/01/2035 DD 01/01/05 AAA 928,498.69 .28 496,855.20 FNMA POOL f0735856 .ooo 5.012 AAA 99.761 501,668.48 .14 31402RQH5 5,000% 08/01/2020 DD 08/01/05 AAA 495,665.37 ,15 YLDANAL YIELD ANALYSIS PAGE R OCSFD7522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 -~~-===-=----=---=--=-=-=-----==========-==~============ .=============~===========.====== .================================== P/\R VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD s-P PRICE MARKET VALUE % TOTAL -----------------------------------------------------------------------------·---------- 490,813.29 FNMA POOL #0737130 .ooo 5.012 AAA 99.765 497,101.83 .14 3140254P9 5.000% 10/01/201B DD 10/01/03 AAA 489,659.88 .15 421,976.07 FNMA POOL t07J8211 .ooo 5.010 AAA 99.806 427,382.67 ,12 31402UDQ2 5,000% 10/01/2018 DD 10/01/03 AAA 421,157.57 .13 153,011.21 FNMA POOL J0738487 .ooo 5.012 AAA 99.757 154,971.67 ,04 31402UNC2 5.000% 10/01/2018 DD 10/01/03 AAA 152,639,39 .05 1, 795,8.10.00 FIHU\ POOL J0740457 .ooo 5.010 AAA 99,806 1,820,242.06 ,53 31402WTtl8 5.000% 10/01/2018 DD 10/01/03 AAA 1,792,346.66 ,53 636,922.36 FNMA POOL .0740471 .ooo 5.010 AAA 99,806 645,082.91 ,18 3l402WT40 5,000% 10/01/2018 OD 10/01/03 AAA 635,686,93 .19 616,998.69 FNMA POOL #0740748 .ooo 5,012 AAA 99.765 624,903.98 .lB 31402W5H7 5,000% 10/01/2018 DD 11/01/03 AAA 615,548,74 .18 29,382.10 FtlMA POOL #0743868 .ooo s.010 AAA 99.806 29,758.56 .oo 31403BMR1 5.000% ll/01/2018 DD 10/01/03 AAA 29,325.11 .01 858,521.90 FNMA POOL 10744008 .ooo s.011 MA 99.776 869,521,72 .25 31403BR54 5.000% 07/01/2018 OD 09/01/03 AAA 856,598.81 ,25 129,472,09 FNMA POOL ~0744316 .ooo 5.010 AM 99,906 13.1,131.76 .03 31403B3ll4 5.000% 09/01/2018 OD 09/01/03 AAA 129,221.75 .04 238,096.46 FNMA POOL #0747914 .000 5,012 AAA 99.757 241,147.08 ,07 Jl403F3XO 5,000% 11/01/2018 DD 11/01/03 AAA 237,517.89 .07 149,335.97 FNMA POOL #0740400 ,000 5.010 AAA 99,806 151,249.34 ,04 31403GNR9 5.000% 08/01/2018 DD 09/01/03 AAA 149,046.31 .04 783,380,36 FNMA POOL f0748899 .ooo 5.010 AAA 99,806 793,417.42 .23 31403G7LO 5,000% 12/01/2018 DD 11/01/03 AAA 781,860.85 .23 1,691,464.63 FNMA POOL #0750377 .000 5.010 AAA 99.806 1,713,136.52 .so 31403JUA2 5.000% 11/01/2018 DD 11/01/03 AAA 1,688,183.73 .50 1,443,142.92 FNMA POOL J07503B0 .ooo 5.010 AAA 99.806 1,461,633.20 .42 31403JUD6 5,000% 11/01/2018 00 11/01/03 AAA 1,440,343.68 .43 137,921.53 FNMA POOL #0750445 .ooo 5.010 AAA 99,806 139,688.65 .04 31403JWE2 5.000% 11/01/2018 OD 11/01/03 AAA 137,654.0l ,04 YLDANII.I. YIET,D ANALYSIS PAGE 9 OCSF07522202 2005/09/30 RUND.ATE 10/05/05 DISTRICT: LOHG-TERM OPERATrnG RUN TIME 13.36.30 ====================================================.============================================================~========= PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARRET VALUE % TOTAL ----------------------... • ... --------------------------------·------------------------------------ 651,709.85 FNMI\ POOL !0751960 .ooo 5,010 AAA 99,806 660,059,90 .19 31403L11Hl 5,000% 12/01/2018 DD 11/01/03 AAA 650,445.74 • 19 677,197,01 FNMA POOL 10753425 .ooo 5,012 AAA 99.754 6B5,027.09 .20 31403NA23 5.000% 11/01/2018 DD 11/01/03 AAA 675,531.11 .20 470,535.10 FNMA POOL f0755165 .000 s.012 AAA 99.754 476,563.83 .13 31403Q6A3 5,000% 12/01/2018 DD 11/01/03 AM 469,377.58 , I 4 800,306.09 FNMA POOL J0756372 ,000 5,012 AAA 99,754 817,652.13 .23 31403SJRB 5,000% 11/01/2018 DD 11/01/03 AAA 806,317,66 .24 2,760,305.69 FNMA POOL #0784251 ,ODO 5.014 AAA 99, 713 2,797,828,60 .81 31405BH46 5,000% 11/01/2019 DD 11/01/04 AAA 2,752,383.61 ,82 806,343.12 FNMA POOL 10789670 .ODO 5,015 AAA 99.710 817,304.35 ,23 31405HJP4 5,000% 12/01/2019 DD 12/01/04 AAA 804,004.72 ,24 813,626.22 FNMA POOL #0792432 .000 5.014 AAA 99,717 B24,686,45 .24 31405LLM9 5.000% 10/01/2019 DD 10/01/04 AAA 811,323.66 ,24 4,588,959.79 FNMA POOL t0792437 .000 5.014 AM 99,717 4,588,959.79 1.36 31405LLS6 5.000% 10/01/2D19 DD 10/01/04 AAA 4,575,973,03 1.36 839,614.48 FNMA POOL ;'10794195 .ODO 5.014 AAA 99. 713 851,058.41 .24 31405NI<G9 5.000% 11/01/2019 DD 11/01/04 AAA 837,234.70 .25 1,773,353.78 FNMA POOL #0797160 .ooo 5,015 AAA 99.710 1,797,460.30 .52 31405RTR7 5,000% 12/01/2019 DD 12/01/04 AAA 1,768,211.05 .52 785,092.74 FNMA POOL i0797408 .ooo 5.015 AAA 99.710 795,765.10 ,23 31405R3R5 5,000% 12/01/2019 DD 12/01/04 AAA 7B2,B15.97 ,23 773,590.35 FmlA POOL J0797414 .ooo 5,015 AAA 99.710 784,106,33 .22 3140SR3X2 5.000% 12/01/2019 DD 12/01/04 AAA 771,346.94 ,23 354,291.03 FNMA POOL 10800370 .000 5.015 AAA 99.710 353,903.53 .10 31405VFK8 5.000% 12/01/2019 DD 11/01/04 AAA 353,263.59 .10 301,156.66 FNMA POOL j/0800998 .ooo 5,503 AAA 99,940 300,897.87 ,OB 31405V3F2 5,500% 11/01/2034 DD 11/01/04 AAA 300,975.97 ,09 2,986,926.75 FNMA POOL 1D003923 .ooo 5,015 AAA 99, 710 2,926,170.91 .85 31406AD41 5.000% 12/01/2019 DD 12/01/04 AAA 2,878,554.66 .85 YLOANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPEMTING RUN TIME 13. 36. 30 ===--=====-==-==========-====---=================================----=-------------~------------=-==-----====-----==---- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ , % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ------·-----------------------------------------------------------------·-----·--·--------------- 2,932,461.77 FNMA POOL 10807711 .ooo 5.015 1\/11\ 99.710 2,870,965.54 .84 31406EKY9 5,000% 01/01/2020 DD 01/01/05 1\AA 2,824,247.63 .84 331,304.46 FNMA POOL #0808933 .000 5.503 AAA 99.940 331,019.74 .09 31406FV24 5.500% Ol/01/2035 DD 01/01/05 1\AA 331,105.68 .10 313,169,30 FNMA POOL #0809350 .ooo 5,503 AAA 99,940 312,900.17 .09 31406GEX3 5.500% 12/01/2034 DD 01/01/05 1\AA 312,981.40 .09 324,130.14 FNMA POOL tOBH930 .ooo 5,500 AAA 100.00B 323,851.59 .09 31406NLKB 5.500% 04/01/2035 DD 04/01/05 All.A 324,155.59 .10 323,127.03 FNMA POOL #0815923 ,000 5,503 1\1\A 99,940 322,849.35 ,09 31406PPG8 5.500% 03/01/2035 OD 03/01/05 AAA 322,933.15 .10 611,823.76 FNMA POOL f0816246 .ooo 5,015 AAA 99. 710 611,154.57 .18 31406PZK8 5.000% 03/01/2020 DD 03/01/05 AAA 610,049.47 .18 318,736.11 FNMA PO()L #0819566 ,ooo 5,503 AAA 99.940 318,462.20 .09 31406TQT1 5.500% 04/01/2035 DD 04/01/05 AAA 318,544.87 ,09 322,925, r.2 FHMA POOL J0822731 .ooo 5.503 AAA 99.940 322,648.10 .09 31406XA85 5.500% 05/01/2035 DD 05/01/05 AAA 322,731.86 .10 331,015.92 FNMA POOL 40823232 .ooo 5.503 AAA 99.940 330,731.44 .09 31406XSV5 5.500% 06/01/2035 DD 05/01/05 AAA 330,817 ,31 .10 968,561.00 FNMA POOL 10823787 .ooo S.015 AAA 99.710 967,501.63 .28 31406YF47 5.000% 05/01/2020 DD 05/01/05 AAA 965,752,17 ,29 7,890.69 GNMA POOL 10421389 .000 6.244 1\1\1\ 104.096 8,281.53 .oo 36206UC23 6,500% 04/15/2026 DD 04/01/96 AAA 8,213.89 .oo 11,920.54 GNMA POOL J0449851 .ooo 6.255 AM 103,911 12,510.97 .oo 36208FWLO 6.500% 01/15/2028 DD 01/01/98 AAA 12,386,72 .00 32,280.92 GNMA POOL 10466845 .ooo 6,245 AAA 104,076 33,879,84 .oo 36209BTA6 6,500% 06/15/2028 DD 06/01/98 AAA 33,596,69 ,01 39,841.03 GNMA POOL t0468052 ,000 6.246 AAA 104.073 41,814.40 ,Ol 36209CSM4 6,500% 07/15/2028 DD 07/01/98 AAA 41,463,76 ,01 111,442.84 GNMA POOL #0476041 .ooo 6.245 1\AA 104.076 116,788.63 .03 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 115,985.25 .03 YLDANAL YIELD ANALYSIS PAGE I 11 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT; LONG-'l'ERM OPERATING RUN TIME 13. 36 .30 =====---==-==-==========-=====-================~===============~=======--=====-=-~=====---=--------=-=----=-===------=--- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 'ii TOTAL ---------------------------------------------------------------·--------------------------------- 118,937.66 GNMA POOT. 40478626 .ooo 6.247 II.AA 104.058 124,642.95 .03 36209QVT9 6.500% 01/15/2029 DD 01/01/99 AAA 123,764.15 .04 28,413.09 GNMA POOL #0480598 .ooo 6,246 All.A 104.064 29,776,02 .oo 36209SJF6 6,500% 10/15/2028 DD 10/01/98 AAA 29,567.80 ,01 5,802.99 GNMA POOT., f0512235 .ooo 6,248 AAA 104.030 6,090.42 .oo 36211GBC6 6,500% 11/15/2029 DD 11/01/99 AAA 6,036.85 .00 76,738.84 GtJMA POOL #051437.6 .ooo 6,248 AAA 104 .041 80,419.90 .02 36211JLF2 6,500% 07/15/2029 DD 07/01/99 AAA 79,839.86 ,02 131,049.75 GNMA II POOL i0080395 .ooo 4,331 AAA 101.014 129,862.12 .03 36225CNH4 VAR RT 04/20/2030 DD 04/01/00 AAA 132,378.59 ,04 1,159,755.30 GNMA 11 POOL #080408X .ooo 4.331 AAA 101.014 1,]47,976.53 .34 36225CN28 VAR RT 05/20/2030 DD 05/01/00 AAA 1,171,515.22 ,35 1,112,493.64 GNMA II POOL JOOB0965 .ooo 4.478 AAA 100, 04 1,111,798.32 .33 36225DCBB VAR RT 07/20/2034 DD 07/01/04 AAA 1,117,989.36 .33 6,500,000.00 GENERAL ELEC CO NT .000 3.701 AAA 99.984 6,502,203.50 1.93 369604AZ6 VAR RT 10/24/2005 DD 10/24/03 AAA 6,499,960.00 l.93 2,000,000.00 GOLDMAN SACHS GRP MTN #TR00203 .ooo 4,116 AA3 100.109 2,001,900.00 .59 38141EJL4 VAR RT 03/30/2007 DD 04/01/04 A+ 2,002,180.00 .59 800,000.00 GOLDMAN SACHS GRP MTN #TR00207 .ooo 3.959 AAJ 100.531 aoo,000.00 .23 38141E.JQ3 VAR RT 07/23/2009 DD D7/23/04 A+ 804,248.00 .24 4,250,000.00 GOLDMAN SACHS GRP .ooo 4.290 AA3 100.234 4,250,000.00 1.26 38143UBD2 VAR RT 06/28/2010 DD 06/28/05 A+ 4,259,945.00 1.26 250,0DO,OO HSBC BK USll. MTN JSR00012 .ooo 3,985 Af;2 100.125 250,170.00 .07 4042QOAM1 VAR RT 09/21/2007 DD 09/21/04 AA-250,312.50 .07 2,100,000.00 HSBC FIN CORP t!T .ooo 4.000 Al 100.000 2,700,000.00 .80 40429CCU4 VAR RT 09/15/2008 DD 09/15/05 A 2,100,000.00 .80 3,000,000.00 HSBC FIN CORP MTN f TR 00002 .ooo 3.899 Al 100.031 3,000,000,00 .89 40429JAB3 VAR RT 02/28/2007 DD 03/29/05 A 3,000,930.00 .89 3,000,000.00 HSBC FIN CORP MTN t TR 00007 ,000 4.009 Al 100.015 2,995,830.00 • f!9 40429JAG2 VAR RT 05/10/2010 DD 05/10/05 A 3,000,450.00 .89 YLDANAL YIELD AtlALYSIS PAGE 12 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 ====-~-=-==-========~:==-======---=-======r=============~===~====-----------------------===----------------=-=----~---------- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD 5-P PRICE MARKET VALUE % TOTAL ------------------------------------------------------__ ..., __ ---------------------------------- 2,500,000.00 HOUSEHOLD FIN CORP NT .ooo 7.0S8 l\2 102.015 2,591,500.00 .75 441812GH1 7,200% 07/15/2006 DD 07/15/99 A 2,SS0,375,00 .76 2,000,000.00 MORGIUI STANLEY .000 3. 697 AAl 100.109 2,002,980.00 , 59 61746BAK2 VAR RT 01/12/2007 DD 01/13/04 A-1-2,002,1eo.oo ,59 3,200,000.00 MORGAN STANLEY NT .000 3,97S AA3 97.484 3,H9,248.00 .92 61746BALO 3.875% 01/15/2009 DD 01/13/04 A-1-3,119,488.00 .93 650,000.00 MORGAN STANLEY NT .ODO 3,809 AA3 100,031 650,000,00 ,19 61746SAZ2 VAR RT 11/09/2006 DD 11/12/04 A-1-650,201.50 ,19 1,400,000.00 PUBLIC SVC ELEC & GAS CO 1ST .ooo 4,085 A3 100.000 1,100,000.00 • 41 744567FNJ VAR RT 06/23/2006 DO 06/25/04 A-1,400,000.00 .42 350,900.66 RESIDENTIAL ASSET 03-RSll AIIB .000 4,161 AAA 99.979 350,900.66 .10 760985K83 VAR RT 12/25/2033 DD 12/30/03 AAA 350,826.97 .10 1,soo,000.00 SLM CORP MTN t TR 00067 .ooo 3,848 A2 100.312 1,005,o4o.oo .53 78442FCUO VAR RT 07/25/2009 DD 07/26/04 A 1,805,616.00 .54 2,587 ,990.37 SLM STUDENT LN TR 04-6 A2 .ooo 3.687 AAA 100.075 2,588,293.65 , 77 78442GMA1 VAR RT 01/25/2013 DD 06/30/04 AAA 2,589,931.36 .77 2,300,000.on SALOMON SMITH MTN f SR 00206 .ooo 3.935 AAl 100.203 2,308,514.60 .68 79548EJPB VAR RT OS/1B/2007 DD 05/28/02 2,304,669.00 . 68 2,498,126.09 SBA GTD DEV PARTN 200l-20C l .000 5.98S AAA 105.935 2,498,126.09 .78 83162CLJO 6.340% 03/01/2021 AAA 2,646,389.87 .79 1,146,403.33 SBA GTD PARTN CTFS SBIC-PS 01 .000 6 .629 AAA 100.165 1,146,403.33 .34 831641004 6.640% 02/10/2011 DD 02/21/01 NR 1,148,294.90 .34 2,000,000.00 TOYOTA MTR CR MTN tTR00413 .ooo 3 ,730 AAA 99.9B4 1,998,188.00 .59 89233PTE6 VAR RT 09/18/2006 DD 03/16/05 AAA 1,999,680.00 .59 1,600,000.00 UNITED AIRLS PASSTBRU 01-1 C .ooo ll, 153 WR 61.250 1,600,000,00 .29 909317BC2 6,831% 03/01/2010 DD 08/22/01 A-980,000.00 ,29 2,539,551.00 US TREASURY INFLATION INDEX NT .ooo 3,424 AAA 105,875 2,754,748.60 ,79 9128273T7 3,625% 01/15/2008 DD 01/15/98 AAA 2,688,749.62 .80 11,317,160.00 US TREASURY INFLATION INDEX NT .ooo 3.571 AAA 108.500 12,497,136.76 3.65 9128274YS 3,B75% 01/15/2009 DO 01/15/99 AAA 12,279,118.60 3.64 YLD/\N/IL YIELD ANALYSIS PAGE 1:3 OCSF07522202 2005/09/30 RHN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13.36.30 =======================================================================~==============~======-c===c===================== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARXET VALUE % TOTAL --------------------------.--·------------------------------------------------------ 3,900,000,00 US TREASURY NOTES .000 5. 734 AAA 100.281 4,193,993.62 1. 16 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 3,910,978.50 1.16 2,100,000.00 US TR.EASllRY NOTES .ooo 4.266 AAA 99.625 2,105,699,39 .62 912828Bll2 4.250% 08/15/2013 DO 08/15/03 AAA 2,092,125.00 .62 10,900,000.00 US TREASURY NOTES .ooo 3,459 Al>.A 97.580 10,708,447.11 3.16 91282BBT6 3.375i 12/15/2008 DD 12/15/03 AAA 10,636,220.00 3.16 105,734.00 US TREASURY INFLATION INDEXED .000 1.959 AA/\ 102.110 107,939.37 .03 91282BBW9 2.000% Ol/15/2014 DD 01/15/04 AAA 107,964.99 .03 12,500,000.00 US TREASURY NOTES ,000 2,775 AAA 99.090 12,424,543.03 3.68 91282BCHO 2,750% 06/30/2006 DD 06/30/04 AAA 12,386,250.00 3.68 3,213,026,00 US TREASURY INFLATION INDEX NT ,000 1.957 AAA 102.180 3,300,893.88 .97 912828CP3 2.000% 07/15/2014 DD 07/15/04 AAA 3,283,069.97 .97 14,000,000.00 US TREASURY NOTES .ooo 2,779 AAA 98.960 l 3,927,531.82 4.12 912828CQ1 2,750% 07/31/2006 DD 07/31/04 AAA 13,854,400.00 4,11 35,300,000.00 US TREASURY NOTES .000 2,411 AAA 98.500 35,120,197.62 l O. 34 912828CU2 2,375% 08/31/2006 DD 08/31/04 AAA 34, 770,500,00 10.32 20,eoo,000.00 US TREASURY NOTES .000 2,916 AAA 98,600 20,640,268.90 6,10 912828DD9 2.875% 11/30/2006 DD 11/30/04 AAA 20,508,800.00 6.09 13,920,000,00 US TREASURY NOTES .ooo 3.597 AAA 97.300 13,626,296.77 4.02 912828DE7 3.500% 12/15/2009 DD 12/15/04 AAA 13,544,160.00 4.02 16,200,000.00 US TREASURY NOTES .000 4.035 AAA 99 .140 16,201,259.92 4. 77 912828DP2 4.000% 03/15/2010 DD 03/15/05 AAA 16,060,680.00 4. 77 11,200,000.00 US TREASURY NOTES ,000 3,773 AAA 99.390 11,165,662.53 3.31 912B2BDQO 3.750% 03/31/2007 DD 03/31/0S AAA 11,131,680.00 3.30 11,000,000.00 IJ S TREASURY NOTES .ooo 3.537 AAA 98.950 10,915,072.08 3. 23 912828DW7 3.500% 05/31/2007 DD 05/31/05 AAA 10,884,500.00 3.23 20,000,000.00 US TREASURY NOTES .ooo 3.659 AM 99.080 19,864,£!57.19 5.89 912828DY3 3,625% 06/30/2007 DD 06/30/05 AAA 19,816,000.00 5.88 1,750,000.00 VIRGINIA ELEC & PWR 01 SER A .ooo 5.715 A3 100.609 1,743,840.00 .52 927804ENO 5,750% 03/31/2006 DD 03/27/01 BBB+ 1,760,657.50 .52 YLDAN/\L YIELD ANALYSIS PAGE 11 OCSF07522202 2005/09/30 RUN DATE 10/05/05 DISTRICT: LONG-TERM OPERATING RUN TIME 13,36.30 =======~=~==~===~:=========;==~====rm:.=.:..== --------- -----------===~====== ---- ----==-==~===~=========--== PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARl(ET VALUE % TOTAL -------------------------------------------------------------------------------·------------------- 8,525,791.68 US TREASURY INFLATION INDEX NT 3,817 3.263 A/\/\ 103.438 7,586,479.00 2.62 9128272M3 3.375% 01/15/2007 OD 01/15/97 AAA 8,818,865.77 2,62 690,309.89 FH.LMC MULTICLASS MTG SER E3 A 6.316 4.260 AAA 99.397 691,045.30 ,20 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 686,147.32 .20 400,706,50 GNMA GTD RF.MIC TR 2000-9 FH 6,320 4,241 AAA 100,724 400,706,50 ,12 3837H4NX9 VAR RT 02/16/2030 MA 403,607.62 .12 159,140.18 GNMA II POOL #08008BM 6.705 4.335 AAA 100.932 162,621.36 .04 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 160,623.37 .os 123,142,09 GNMA II POOL #0080023 6.992 4,073 AM 101.269 125,181.62 .03 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 124,704,76 • 04 2,100,000.00 FEDERAL NATL MTG ASSN DE.BS 7,113 6.164 l\AA 107.478 2,030,133.00 .67 31359MEY5 6,625% 09/15/2009 DD 09/01/99 AAA 2,257,038.00 ,67 928,459.22 WHP/HUNTOON PAIGE J000-11150 7,684 7 .413 AAA 101. 177 908,294.24 .27 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 939,383.19 ,28 -------------------------------·------ TOTAL FIXED INCOME SECURITIES ,023 4,417 337,B58,869.80 100.00 336,151,201.20 99,75 -------------------------------------TOTAL .023 4 .416 338,608,888,60 100.00 336,901,220,00 100,00 =============== =:c;=-===== Asset Detail Report ID: ·GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000 10000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base U.S. DOLLAR CASH & CASH EQUIVALENTS INTEREST RECEIVABLE 2,383,954.99 2,383,954.99 0.76% 0.00 RECEIVABLE FOR INVESTMENTS 14,198.20 14,198.20 0.00% 0.00 SOLD PAYABLE FOR INVESTMENTS -85,664,905.35 -85,664,905.35 -27.38% 0.00 PURCHASED BANKAMERICA CORP 99.0675 1,100,000.000 1,089,742.50 1,089,742.50 0.35% 0.00 DISC11/21/2005SEC ID: 0660P0YM9 BANKAMERICA CORP 99.0675 l ,600,"000.000 1,585,080.00 1,585,080.00 0.51% 0.00 DISC12/07 /2005SEC ID: 0660P0Z71 CITIBANK NA NY BRH INSTL C/D 3. 100.0000 1,500,000.000 1,500,000.00 1,500,000.00 0.48% 0.00 720% 11/09/2005 DD 08/09/05SECID: 17304TXA6 DU PONT DE NEMOUR 99.7933 1,359,000.000 1,356,191.40 1,356,191.40 0.43% 0.00 DISC10/18/2005SEC ID: 26354AXJ8 FEDERAL HOME LN BK CONS 99.9735 5,400,000.000 5,398,569.00 5,398,569.00 1.73% 0.00 DISCMAT 10/03/2005SEC ID: 313385MM5 FEDERAL HOME LN BK CONS DISC 99.1446 2,900,000.000 2,875,193.72 2,875,193.72 0.92% 0.00 NMAT 10/ 19/2005SEC ID: 313385ND4 FEDERAL HOME LN BK CONS 98.1042 1,900,000.000 1,863,979.17 1,863,979.17 0.60% 0.00 DISCSEC ID: 313385SQ0 FEDERAL HOME LN BK CONS DISC 98.1227 300,000.000 294,368.00 294,368.00 0.09% 0.00 NMAT 02/22/2006SEC ID: 313385TK2 FEDERAL HOME LN MTG CORP 99.9735 3,300,000.000 3,299,125.50 3,299,125.50 1.05% 0.00 DISCMAT 10/03/2005SEC ID: 313397MM0 FEDERAL HOME LN MTG CORP 98.5933 2,000,000.000 1,971,865.00 1,971,865.00 0.63% 0.00 DISCMAT 11/01/2005SEC ID: 313397NS6 FEDERAL HOME LN MTG CORP 99.0923 1,100,000.000 1,090,015.03 1,090,015.03 0.35% 0.00 DISCMAT 1 l/08/2005SEC ID: 313397NZ0 1 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000 10000 9/30/2005 Status: FINAL --- Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base ---- FEDERAL HOME LN MTG CORP 98.2537 1,900,000.000 1,866,820.72 1,866,820.72 0.60% 0.00 DISCMAT 01/ 10/2006SEC ID: 313397RQ6 FEDERAL HOME LN MTG CORP 98.1827 2,200,000.000 2,160,018.36 2,160,018.36 0.69% 0.00 DISCMAT 02/28/2006SEC ID: 313397TR2 FEDERAL HOME LN MTG CORP 98.0890 700,000.000 686,623.00 686,623.00 0.22% 0.00 DISCMAT 03/ 14/2006SEC ID: 313397UF6 FEDERAL NATL MTG ASSN 98.3671 4,000,000.000 3,934,682.22 3,934,682.22 1.26% 0.00 DISCOUNTMAT 10/26/2005SEC ID: 313589NL3 FEDERAL NATL MTG ASSN 98.7943 3,000,000.000 2,963,827.50 2,963,827.50 0.95% 0.00 DISCOUNTMAT 12/19/2005SEC ID: 313589QS5 FEDERAL NATL MTG ASSN 98.2698 900,000.000 884,427.75 884,427.75 0 .28% 0.00 DISCOUNTMAT 02/08/2006SEC ID: 313589SV6 FEDERAL NATL MTG ASSN 98.1725 3,800,000.000 3,730,555.00 3,730,555.00 1.19% 0 .00 DISCOUNTMAT 03/0l/2006SEC ID:313589TS2 UNITED STATES TREASURY BILL 0. 98.1598 3,300,000.000 3,239,272.67 3,239,272.67 1.04% 0.00 000% 03/16/2006 DD 09/15/05SEC ID: 912795WT4 WELLS FARGO BANK NA INSTL C/D 100.0000 2,500,000.000 2,500,000.00 2,500,000.00 0.80% 0.00 3.760% 10/13/2005 DD 09/27/05SECID:9497P23M7 CS FOB CAT 2 REPO REPO03.250% 100.0000 11,800,000.000 11,800,000.00 11,800,000.00 3.77% 0.00 10/03/2005 DD 09/30/05SEC ID: 99441U490 DREYFUS TREASURY CASH 100.0000 866,697.340 866,697.34 866,697.34 0.28% 0.00 MGMTSEC ID: 996085247 TOTAL CASH & CASH EQUIVALENTS 57,425,697.340 -26,309,698.28 -26,309,698.28 -8.41% 0.00 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 5. 109.8670 752,000.000 826,199.84 826,199.84 0.26% 0.00 850% 08/01/2008 DD 08/08/01SECID:U00907AA0 ASSOCIATES CORP NORTH AMER NT-100.2500 15,000.000 15,112.95 15,037.50 0.00% -75.45 6.375% 11/15/2005 DD 11/21/95SEC ID: 046003FM6 2 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED · OCSG000 10000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base BEAR STEARNS COS INC NTS6. 100.0000 75,000.000 75,422.25 75,000.00 0.02% -422.25 875% 10/01/2005 DD 10/05/95SECID:073902AU2 BEAR STEARNS COS INC GLOBAL 99.3750 112,000.000 111,364.96 111,300.00 0.04% -64.96 NT3.000% 03/30/2006 DD 02/19/03SECID:073902CB2 CIT GROUP INC GLOBAL SR NT4. 99.9100 500,000.000 499,820.00 499,550.00 0.16% -270.00 125% 02/21/2006 DD 02/20/03SEC1D: 125577AN6 CIT GROUP INC SR NT 7.375% 103.9816 600,000.000 632,688.00 623,889.82 0.20% -8,798.18 04/02/2007 DD 04/01/02SEC ID: 125581AA6 CIT GROUP INC NEW SR NTVAR RT 100.3430 1,500,000.000 1,507,005.00 1,505,145.00 0.48% -1,860.00 09/22/2006 DD 09/23/03SEC ID: 125581AF5 CIT GROUP INC MTN #SR00092VAR 100.2500 3,300,000.000 3,300,000.00 3,308,250.00 1.06% 8,250.00 RT 05/23/2008 DD 05/25/05SEC ID: 12560PDV0 CITIGROUP INC GLOBAL SR NTVAR 99.9840 1,600,000.000 1,600,000.00 1,599,744.00 0.51% -256.00 RT 05/02/2008 DD 05/02/05SEC ID: l 72967CW9 WMP/HUNTOON PAIGE #000-101.1766 928,459.220 908,294.24 939,383.19 0.30% 31,088.95 111507.500% 12/01/2030 DD 10/21/99SECID:302998GE3 FEDERAL HOME LN MTG CORP 100.0000 700,000.000 691,824.00 700,000.00 0.22% 8,176.00 MTN2.375% 05/19/2006 DD 05/19/03SECID:3128XlCU9 FEDERAL HOME LN MTG CORP MTN 100.1820 1,000,000.000 1,002,656.25 1,001,820.00 0.32% -836.25 6.250% 11/14/2013 DD 11/14/03SECID:3128Xl6R3 FEDERAL HOME LN MTG CORP MTN 97.4200 10,000,000.000 9,993,100.00 9,742,000.00 3.11% -251,100.00 4.000% 09/22/2009 DD 09/22/04SEC ID: 3I28X3WY5 FHLMC MULTICLASS MTG SER E3 99.3970 690,309.890 691,045.30 686,147.32 0.22% -4,897.98 AVAR RT 08/15/2032 DD 12/01/97SECID:3133TCE95 FEDERAL HOME LN BKS CONS 93.3150 2,700,000.000 2,565,820.00 2,519,504.65 0.81% -46,315.35 BDVAR RT 02/27/2012 DD 02/27 /04SEC ID: 3133X3SQ7 3 Workbench Asset Detail Report ID: ·GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGO00l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ----- FEDERAL HOME LN BKS CONS BD 4. 97.4570 3,000,000.000 2,882,343.75 2,923,710.00 0.93% 41,366.25 000% 03/18/2011 DD 06/19/03SECID:31339XKN3 FHLMC GROUP #78-6064 6.384°/4, 102.8910 48,358.680 47,179.93 49,756.73 0.02% 2,576.80 01/01/2028 DD 12/01/97SEC ID: 31348SWZ3 FEDERAL NATL MTG ASSN DEBS6. 107.4780 2,100,000.000 2,030,133.00 2,257,038.00 0.72% 226,905.00 625% 09/15/2009 DD 09/0l/99SEC ID: 31359MEY5 FEDERAL NATL MTG ASSN DEBS5. 100.5820 2,350,000.000 2,385,461.50 2,363,677.00 0 .76% -21,784.50 250% 06/15/2006 DD 06/22/0lSEC ID: 31359MJX2 FEDERAL NATL MTG ASSN DEBS 3. 95.5440 6,800,000.000 6,575,736.00 6,496,992.00 2 .08% -78,744.00 125% 03/16/2009 DD 03/16/04SEC ID: 31359MUQ4 FNMA POOL #0254510 5.000% 99.7840 551,818.590 568,373.14 550,626.66 0.18% -17,746.48 11/01/2017 DD 10/01/02SEC ID: 31371KVB4 FNMA POOL #0254631 5.000% 99.7830 118,409.660 121,961.96 118,152.71 0.04% -3,809.25 02/01/2018 DD 01/0l/03SEC ID: 31371KY47 FNMA POOL #0254760 5 .000% 99.7760 107,194.400 110,410.23 106,954.28 0.03% -3,455.95 06/01/2018 DD 05/01/03SEC ID: 31371K5V9 FNMA POOL #0254866 5.000% 99.7650 48,963.400 50,432.31 48,848.34 0 .02% -1,583.97 09/01/2018 DD 08/01/03SEC ID: 31371LCB3 FNMA POOL #0254907 5.000% 99.7610 363,750.220 363,750.22 362,880.86 0 .12% -869.36 10/01/2018 DD 09/01/03SEC ID: 31371LDL0 FNMA POOL #0254953 5.000% 99.7570 259,190.100 262,510.98 258,560.27 0.08% -3,950.71 11/01/2018 DD 10/01/03SEC ID: 31371LE21 FNMA POOL #0254987 5.000% 99.8060 698,081.440 707,025.61 696,727.39 0.22% -10,298.22 12/01/2018 DD 11/01/03SEC ID: 31371LF46 FNMA POOL #0323980 6.000% 102.9460 113,254.480 118,244.76 116,590.96 0.04% -1,653.80 04/01/2014 DD 09/0l/99SEC ID: 31374T2M0 4 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGOOOlOOOO 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base - FNMA POOL #0357430 5.000% 99.7720 85,676.720 86,640.58 85,481.38 0.03% -1,159.20 09/01/2018 DD 09/01/03SEC ID: 31376KA71 FNMA POOL #0456482 6.000% 102.9450 33,374.370 34,844.91 34,357.25 0.01% -487.66 02/01/2014 DD 02/01/99SEC ID: 31381CCT2 FNMA POOL #0509649 6.000% 102.9480 92,283.950 96,350.21 95,004.48 0.03% -1,345.73 09/01/2014 DD 09/01/99SEC ID: 31383QEW0 FNMA POOL #0535451 6.000% 102.9480 88,310.570 92,201.76 90,913.97 0.03% -1,287.79 06/01/2015 DD 07 /01/00SEC ID: 31384VZQ8 FNMA POOL #0555363 5.000% 99.7830 255,211.720 262,868.06 254,657.91 0.08% -8,210.15 04/01/2018 DD 03/01/03SEC ID: 31385W5Yl FNMA POOL #0555545 5.000% 99.7830 212,847.270 219,232.70 212,385.39 0.07% -6,847.31 06/01/2018 DD 05/01/03SEC ID: 31385XES2 FNMA POOL #0555621 5.000% 99.8060 733,416.340 741,667.26 731,993.75 0.23% -9,673.51 07/01/2018 DD 06/01/03SEC ID: 31385XG68 FNMA POOL #0681309 5.000% 99.7830 408,235.840 420,482.91 407,349.97 0.13% -13,132.94 02/01/2018 DD 02/01/03SEC ID: 31391Y3S4 FNMA POOL #0681334 5.000% 99.7830 48,880.960 50,347.39 48,774.89 0.02% -1,572.50 02/01/2018 DD 0l/01/03SEC ID: 31391Y4Tl FNMA POOL #0684798 5.500% 100.0720 294,761.120 294,507.82 294,973.35 0.09% 465.53 03/01/2033 DD 03/01/03SEC ID: 31400DX31 FNMA POOL #0684908 5.000% 99.7760 262,876.330 266,244.46 262,287.49 0.08% -3,956.97 06/01/2018 DD 05/01/03SEC ID: 31400D3Rl FNMA POOL #0685200 5.000% 99.7830 143,723.050 145,564.52 143,411.17 0.05% -2, 153.35 03/01/2018 DD 03/01/03SEC ID: 31400EGH7 FNMA POOL #0686318 5.000% 99.7830 217,293.790 223,812.60 216,822.26 0.07% -6,990.34 03/01/2018 DD 03/01/03SEC ID: 31400FPB7 5 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized I Description Price Cost Market Value % of Gain/Loss Base Shares Par Base Base Total Base - FNMA POOL #0688739 5.000% 99.7760 86,775.780 89,379.05 86,581.40 0.03% -2,797.65 06/01/2018 DD 06/01/03SEC ID: 31400JEL9 FNMA POOL #0689859 5.000% 99.7760 79,846.910 80,869.95 79,668.05 0.03% -1,201.90 05/01/2018 DD 05/01/03SEC ID: 31400KMG8 FNMA POOL #0693834 5.000% 99.7830 451,478.800 465,023.14 450,499.09 0.14% -14,524.05 03/01/2018 DD 03/0l/03SEC ID: 31400PY74 FNMA POOL #0695852 5.000% 99.7790 168,742.930 173,805.22 168,370.01 0.05% -5,435.21 05/01/2018 DD 05/01/03SEC ID: 31400SBV0 FNMA POOL #0695889 5.000% 99.7790 607,602.980 625,831.08 606,260.18 0.19% -19,570.90 05/01/2018 DD 05/01/03SEC ID: 31400SC23 FNMA POOL #0702210 5.000% 99.8060 168,193.430 173,239.24 167,867.19 0.05% -5,372.05 05/01/2018 DD 05/01/03SEC ID: 31401ADP9 FNMA POOL #0702328 5.000% 99.7790 100,600.880 101,889.82 100,378.55 0.03% -1,511.27 05/01/2018 DD 04/01/03SEC ID: 31401AHD2 FNMA POOL #0709148 5.000% 99.7720 222,556.440 229,233.15 222,049.01 0.07% -7,184.14 06/01/2018 DD 06/0l/03SEC ID: 31401HZM7 FNMA POOL #0709360 5.000% 99.7720 481,798.250 487,971.29 480,699.75 0.15% -7,271.54 07/01/2018 DD 06/0l/03SEC ID: 31401JB56 FNMA POOL #0709826 5.000% 99.7760 84,910.190 85,998.10 84,719.99 0.03% -1,278.11 06/01/2018 DD 06/01/03SEC ID: 31401JSP4 FNMA POOL #0709917 5.000% 99.7760 177,732.170 180,009.37 177,334.05 0 .06% -2,675.32 06/01/2018 DD 06/01/03SEC ID: 31401JVJ4 FNMA POOL #0710235 5.000% 99.7720 442,265.070 455,533.05 441,256.71 0.14% -14,276.34 06/01/2018 DD 06/01/03SEC ID: 31401KBC8 FNMA POOL #0713365 5.000% 99.7720 181,120.970 183,441.57 180,708.01 0.06% -2,733.56 07/01/2018 DD 07 /0l/03SEC ID: 31401NQS1 6 Workbench Asset Detail Report ID: ·GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base --------- FNMA POOL #0720319 5.000% 99.7720 552,900.740 559,984.80 551,640.13 0.18% -8,344.67 07/01/2018 DD 07 /01/03SEC ID: 31401WG45 FNMA POOL #0720369 5.000% 99.8060 1,824,128.380 1,878,852.23 1,820,590.15 0.58% -58,262.08 06/01/2018 DD 06/01/03SEC ID: 31401WJN0 FNMA POOL #0721629 5.000% 99.7720 236,477.370 243,571.71 235,938.20 0.08% -7,633.51 07/01/2018 DD 06/01/03SEC ID: 31401XVW4 FNMA POOL #0723487 5.000% 99.7720 182,401.740 184,453.78 181,985.86 0.06% -2,467.92 06/01/2018 DD 06/01/03SEC ID: 31402AXQ4 FNMA POOL #0725530 5.000% 99.7603 2,751,547.340 2,788,951.17 2,744,952.10 0.88% -43,999.07 06/01/2019 DD 05/01/04SEC ID: 31402DA75 FNMA POOL #0729601 5.000% 99.7680 317,139.450 321,202.81 316,403.69 0.10% -4,799.12 07/01/2018 DD 07 /01/03SEC ID: 31402HRW3 FNMA POOL #0732873 5.000% 99.7570 29,251.450 29,626.22 29,180.37 0.01% -445.85 11/01/2018 DD 10/01/03SEC ID: 31402MFN5 FNMA POOL #0735227 5.500% 99.9520 928,944.580 936,782.55 928,498.69 0.30% -8,283.86 02/01/2035 DD 01/01/05SEC ID: 31402QYY1 FNMA POOL #0735856 5.000% 99.7605 496,855.200 501,668.48 495,665.37 0.16% -6,003.11 08/01/2020 DD 08/01/05SEC ID: 31402RQH5 FNMA POOL #0737130 5.000%, 99.7650 490,813.290 497,101.83 489,659.88 0.16% -7,441.95 10/01/2018 DD 10/01/03SEC ID: 31402S4P9 FNMA POOL #0738211 5.000% 99.8060 421,976.070 427,382.67 421,157.57 0.13% -6,225.10 10/01/2018 DD 10/01/03SEC ID: 31402UDQ2 FNMA POOL #0738487 5.000% 99.7570 153,011.210 154,971.67 152,639.39 0.05% -2,332.28 10/01/2018 DD 10/01/03SEC ID: 31402UNC2 FNMA POOL #0740457 5.000% 99.8060 1,795,830.000 1,820,242.06 1,792,346.66 0.57% -27,895.40 10/01/2018 DD 10/01/03SEC ID: 31402WTN8 7 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED · OCSGO00l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base ---- FNMA POOL #0740471 5.000% 99.8060 636,922.360 645,082.91 635,686.93 0.20% -9,395.98 10/01/2018 DD 10/01/03SEC ID: 31402WT40 FNMA POOL #0740748 5.000% 99.7650 616,998.690 624,903.98 615,548.74 0.20% -9,355.24 10/01/2018 DD 11/01/03SEC ID: 31402W5H7 FNMA POOL #0743868 5.000% 99.8060 29,382.100 29,758.56 29,325.11 0.01% -433.45 11/01/2018 DD 10/0l/03SEC ID: 31403BMR1 FNMA POOL #0744008 5.000% 99.7760 858,521.900 869,521.72 856,598.81 0.27% -12,922.91 07/01/2018 DD 09/01/03SEC ID: 31403BR54 FNMA POOL #0744316 5.000% 99.8060 129,472.890 131,131.76 129,221.75 0.04% -1,910.01 09/01/2018 DD 09/01/03SEC ID: 31403B324 FNMA POOL #0747914 5.000% 99.7570 238,096.460 241,147.08 237,517.89 0 .08% -3,629.19 11/01/2018 DD ll/01/03SEC ID: 31403F3X0 FNMA POOL #0748400 5.000% 99.8060 149,335.970 151,249.34 149,046.31 0.05% -2,203.03 08/01/2018 DD 09/0l/03SEC ID: 31403GNR9 FNMA POOL #0748899 5.000% 99.8060 783,380.360 793,417.42 781,860.85 0 .25% -11,556.57 12/01/2018 DD 11/01/03SEC ID: 31403G7LO FNMA POOL #0750377 5.000% 99.8060 1,691,464.630 1,713,136.52 1,688,183.73 0.54% -24,952.79 11/01/2018 DD 11/01/03SEC ID: 31403JUA2 FNMA POOL #0750380 5.000% 99.8060 1,443,142.920 1,461,633.20 1,440,343.68 0.46% -21,289.52 11/01/2018 DD 11/01/03SEC ID: 31403JUD6 FNMA POOL #0750445 5.000% 99.8060 137,921.530 139,688.65 137,654.01 0.04% -2,034.64 11/01/2018 DD 11/01/03SEC ID: 31403JWE2 FNMA POOL #0751960 5.000% 99.8060 651,709.850 660,059.90 650,445.74 0.21% -9,614.16 12/01/2018 DD 11/01/03SEC ID: 31403LMH1 FNMA POOL #0753425 5.000% 99.7540 677,197.010 685,027.09 675,531.11 0.22% -9,495.98 11/01/2018 DD 1 l/0l/03SEC ID: 31403NA23 8 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0755165 5.000% 99.7540 470,535.100 476,563.83 469,377.58 0.15% -7,186.25 12/01/2018 DD ll/01/03SEC ID: 31403Q6A3 FNMA POOL #0756372 5.000% 99.7540 808,306.090 817,652.13 806,317.66 0.26% -11,334.47 11/01/2018 DD 11/01/03SEC ID: 31403SJR8 FNMA POOL #0784251 5.000'¼.1 99.7130 2,760,305.690 2,797,828.60 2,752,383.61 0.88% -45,444.99 11/01/2019 DD ll/01/04SEC ID: 31405BH46 FNMA POOL #0789670 5.000% 99.7100 806,343.120 817,304.35 804,004.72 0.26% -13,299.63 12/01/2019 DD 12/01/04SEC ID: 31405HJP4 FNMA POOL #0792432 5.000% 99.7170 813,626.220 824,686.45 811,323.66 0.26% -13,362. 79 10/01/2019 DD 10/01/04SEC ID: 31405LLM9 FNMA POOL #0792437 5.000% 99.7170 4,588,959.790 4,588,959.79 4,575,973.03 1.46% -12,986.76 10/01/2019 DD 10/01/04SEC ID: 31405LLS6 FNMA POOL #0794195 5.000% 99.7130 839,644.480 851,058.41 837,234.70 0.27% -13,823.71 11/01/2019 DD 11/01/04SEC ID: 31405NKG9 FNMA POOL #0797160 5.000% 99.7100 1,773,353.780 1,797,460.30 1,768,211.05 0.57% -29,249.25 12/01/2019 DD 12/01/04SEC ID: 31405RTR7 FNMA POOL #0797408 5.000% 99.7100 785,092.740 795,765.10 782,815.97 0.25% -12,949.13 12/01/2019 DD 12/01/04SEC ID: 31405R3R5 FNMA POOL #0797414 5.000% 99.7100 773,590.350 784,106.33 771,346.94 0.25% -12,759.39 12/01/2019 DD 12/01/04SEC ID: 31405R3X2 FNMA POOL #0800370 5.000% 99.7100 354,291.030 353,903.53 353,263.59 0.11% -639.94 12/01/2019 DD 11/0l/04SEC ID: 31405VFK8 FNMA POOL #0800998 5.500% 99.9400 301,156.660 300,897.87 300,975.97 0.10% 78.10 11/01/2034 DD 1 l/01/04SEC ID: 31405V3F2 FNMA POOL #0803923 5.000% 99.7100 2,886,926.750 2,926,170.91 2,878,554.66 0.92% -47,616.25 12/01/2019 DD 12/01/04SEC ID: 31406AD41 9 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized I Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL #0807711 5.000% 99.7100 2,832,461.770 2,870,965.54 2,824,247.63 0.90% -46, 717.91 01/01/2020 DD 01/01/0SSEC ID: 31406EKY9 FNMA POOL #0808933 5.500% 99.9400 331,304.460 331,019.74 331,105.68 0.11% 85.94 01/01/2035 DD 01/01/05SEC ID: 31406FV24 FNMA POOL #0809350 5.500% 99.9400 313,169.300 312,900.17 312,981.40 0.10% 81.23 12/01/2034 DD 0l/01/05SEC ID: 31406GEX3 FNMA POOL #0814930 5.500% 100.0079 324,130.140 323,851.59 324,155.59 0.10% 304.00 04/01/2035 DD 04/01/05SEC ID: 31406NLK8 FNMA POOL #0815923 5.500% 99.9400 323,127.030 322,849.35 322,933.15 0.10% 83.80 03/01/2035 DD 03/0l/05SEC ID: 31406PPG8 FNMA POOL #0816246 5.000% 99.7100 611,823.760 611,154.57 610,049.47 0.19% -1,105.10 03/01/2020 DD 03/01/05SEC ID: 31406PZK8 FNMA POOL #0819566 5.500% 99.9400 318,736.110 318,462.20 318,544.87 0.10% 82.67 04/01/2035 DD 04/01/05SEC ID: 31406TQT1 FNMA POOL #0822731 5.500% 99.9400 322,925.620 322,648.10 322,731.86 0.10% 83.76 05/01/2035 DD 05/01/05SEC ID: 31406XA85 FNMA POOL #0823232 5.500% 99.9400 331,015.920 330,731.44 330,817.31 0.11% 85.87 06/01/2035 DD 05/01/05SEC ID: 31406XSV5 FNMA POOL #0823787 5.000% 99.7100 968,561.000 967,501.63 965,752.17 0 .31% -1,749.46 05/01/2020 DD 05/0l/05SEC ID: 31406YF47 GNMA POOL #0421389 6.500% 104.0960 7,890.690 8,281.53 8,213.89 0.00% -67.64 04/15/2026 DD 04/01/96SEC ID: 36206UC23 GNMA POOL #0449851 6.500% 103.9107 11,920.540 12,510.97 12,386.72 0 .00% -124.25 01/15/2028 DD 01/01/98SEC ID: 36208FWLO GNMA POOL #0466845 6.500% 104.0760 32,280.920 33,879.84 33,596.69 0.01% -283.15 06/15/2028 DD 06/01/98SEC ID: 36209BTA6 10 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base ------------· GNMA POOL #0468052 6.500% 104.0730 39,841.030 41,814.40 41,463.76 0.01% -350.64 07/15/2028 DD 07/01/98SEC ID: 36209C5M4 GNMA POOL #0476041 6.500% 104.0760 111,442.840 116,788.63 115,985.25 0.04% -803.38 06/15/2028 DD 06/01/98SEC ID: 36209MZE7 GNMA POOL #0478626 6.500% 104.0580 118,937.660 124,642.95 123,764.15 0.04% -878.80 01/15/2029 DD 01/01/99SEC ID: 36209QVT9 GNMA POOL #0480598 6.500% 104.0640 28,413.090 29,776.02 29,567.80 0.01% -208.22 10/15/2028 DD 10/01/98SEC ID: 36209S3F6 GNMA POOL #0512235 6.500% 104.0300 5,802.990 6,090.42 6,036.85 0.00% -53.57 11/15/2029 DD 11/01/99SECID: 36211GBC6 GNMA POOL #0514326 6.500% 104.0410 76,738.840 80,419.90 79,839.86 0.03% -580.04 07/15/2029 DD 07/01/99SEC ID: 36211JLF2 GNMA II POOL #0080023VAR RT 101.2690 123,142.090 125,181.62 124,704.76 0.04% -476.86 12/20/2026 DD 12/01/96SEC ID: 36225CAZ9 GNMA II POOL #080088M 7.375% 100.9320 159,140.180 162,621.36 160,623.37 0.05% -1,997.99 06/20/2027 DD 06/01/97SEC ID: 36225CC20 GNMA II POOL #0080395VAR RT 101.0140 131,049.750 129,862.12 132,378.59 0.04% 2,516.47 04/20/2030 DD 04/01/00SEC ID: 36225CNM4 GNMA II POOL #080408XVAR RT 101.0140 1,159,755.300 1,147,976.53 1,171,515.22 0.37% 23,538.69 05/20/2030 DD 05/01/00SEC ID: 36225CN28 GNMA II POOL #0080965VAR RT 100.4940 1,112,493.640 1,111,798.32 1,117,989.36 0.36% 6,191.04 07/20/2034 DD 07/01/04SEC ID: 36225DCB8 GENERAL ELEC CO NTVAR RT 99.9840 6,500,000.000 6,502,203.50 6,498,960.00 2.08% -3,243.50 10/24/2005 DD 10/24/03SEC ID: 369604AZ6 GOLDMAN SACHS GRP MTN 100.1090 2,000,000.000 2,001,900.00 2,002,180.00 0.64% 280.00 #TR00203VAR RT 03/30/2007 DD 04/01/04SECID:38141EJL4 11 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED • OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base --- GOLDMAN SACHS GRP MTN 100.5310 800,000.000 800,000.00 804,248.00 0.26% 4,248.00 #TR00207VAR RT 07/23/2009 DD 07/23/04SECID:38141EJQ3 GOLDMAN SACHS GRPVAR RT 100.2340 4,250,000.000 4,250,000.00 4,259,945.00 1.36% 9,945.00 06/28/2010 DD 06/28/0SSEC ID: 38143UBD2 GNMA GTD REMIC TR 2000-9 100.7240 400,706.500 400,706.50 403,607.62 0.13% 2,901.12 FHVAR RT 02/ 16/2030SEC ID: 3837H4NX9 HSBC BK USA MTN #SR00012VAR 100.1250 250,000.000 2so,110'.oo 250,312.50 0.08% 142.50 RT 09/21/2007 DD 09/21/04SEC ID: 4042Q0AM1 HSBC FIN CORP NTVAR RT 100.0000 2,700,000.000 2,700,000.00 2,700,000.00 0 .86% 0.00 09/15/2008 DD 09/15/0SSEC ID: 40429CCU4 HSBC FIN CORP MTN # TR 100.0310 3,000,000.000 3,000,000.00 3,000,930.00 0.96% 930.00 00002VAR RT 02/28/2007 DD 03/29/0SSECID:40429JAB3 HSBC FIN CORP MTN # TR 100.0150 3,000,000.000 2 ,995,830.00 3,000,450.00 0.96% 4,620.00 00007VAR RT OS/ 10/2010 DD 0S/10/0SSECID:40429JAG2 HOUSEHOLD FIN CORP NT 7.250% 101.6710 500,000.000 511,620.00 508,355.00 0.16% -3,265.00 OS/ 15/2006 DD OS/ 15/96SEC ID: 441812FT6 HOUSEHOLD FIN CORP NT7 .200% 102.0150 2,500,000.000 2,591,500.00 2,550,375.00 0.82% -41,125.00 07/15/2006 DD 07 / 15/99SEC ID: 441812GH1 MERRILL LYNCH & CO INC NT6. 100.5150 102,000.000 102,736.44 102,525.30 0.03% -211.14 250% 01/15/2006 DD 0l/20/94SECID: 590188FC7 MORGAN STANLEYVAR RT 100.1090 2,000,000.000 2,002,980.00 2,002,180.00 0.64% -800.00 01/12/2007 DD 0l/13/04SEC ID: 61746BAK2 MORGAN STANLEY NT 3.875% 97.4840 3,200,000.000 3,149,248.00 3,119,488.00 1.00% -29,760.00 01/15/2009 DD 01/13/04SEC ID: 61746BAL0 MORGAN STANLEY NTVAR RT 100.0310 650,000.000 650,000.00 650,201.50 0.21% 201.50 11/09/2006 DD ll/12/04SEC ID: 61746SAZ2 12 Workbench Asset Detail Report ID: GL8013 Base Currency: USO by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSG000l0000 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base PUBLIC SVC ELEC & GAS CO 100.0000 1,400,000.000 1,400,000.00 1,400,000.00 0.45% 0.00 lSTVAR RT 06/23/2006 DD 06/25/04SECID: 744567FN3 RESIDENTIAL ASSET 03-RS 11 99.9790 350,900.660 350,900.66 350,826.97 0.11% -73.69 AIIBVAR RT 12/25/2033 DD 12/30/03SECID:760985K83 SLM CORP MTN# TR 00067VAR RT 100.3120 1,800,000.000 1,805,040.00 1,805,616.00 0.58% 576.00 07/25/2008 DD 07 /26/04SEC ID: 78442FCU0 SLM STUDENT LN TR 04-6 A2VAR 100.0750 2,587,990.370 2,588,293.65 2,589,931.36 0.83% 1,637.71 RT 01/25/2013 DD 06/30/04SEC ID: 78442GMA1 SALOMON SMITH MTN # SR 100.2030 2,300,000.000 2,308,514.60 2,304,669.00 0.74% -3,845.60 00206VAR RT 05/18/2007 DD 05/28/02SECID:79548EJP8 SBA GTD DEV PARTN 2001-20C 16. 105.9350 2,498,126.090 2,498,126.09 2,646,389.87 0.85% 148,263.78 340% 03/01/2021SEC ID: 83162CW0 SBA GTD PARTN CTFS SBIC-PS 01 100.1650 1,146,403.330 1,146,403.33 1,148,294.90 0.37% 1,891.57 6.640% 02/10/2011 DD 02/21/0lSEC ID: 831641DD4 SOUTHWESTERN BELL TEL CO 100.2650 1,000,000.000 1,007,520.00 1,002,650.00 0.32% -4,870.00 MED6.560% 11/15/2005 DD 11/15/96SECID: 84534EDS4 TOYOTA MTR CR MTN #TR00413VAR 99.9840 2,000,000.000 l,998,18i3.00 1,999,680.00 0.64% 1,492.00 RT 09/18/2006 DD 03/ 16/05SEC ID:89233PTE6 UNITED AIRLS PASSTHRU 01-1 C 6. 61.2500 1,600,000.000 1,600,000.00 980,000.00 0.31% -620,000.00 831% 03/01/2010 DD 08/22/0lSEC ID: 909317BC2 US TREASURY INFLATION INDEX 103.4375 8,525,791.680 7,586,479.00 8,818,865.77 2.82% 1,232,386.77 NT 3.375% 01/15/2007 DD 0l/15/97SEC ID: 9128272M3 US TREASURY INFLATION INDEX NT 105.8750 2,539,551.000 2,754,748.60 2,688,749.62 0.86% -65,998.98 3.625% 01/15/2008 DD 01/15/98SECID:9128273T7 US TREASURY INFLATION INDEX NT 108.5000 11,317,160.000 12,497,136.76 12,279,118.60 3.92% -218,018.16 3.875% 01/15/2009 DD 01/15/99SECID:9128274Y5 13 Workbench Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED -OCSGOOOlOOOO 9/30/2005 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base US TREASURY NOTES05.750% 100.2815 3,900,000.000 4,193,993.62 3,910,978.50 1.25% -283,015.12 11/15/2005 DD 11/15/00SEC ID: 9128276N7 U S TREASURY NOTES 4.250% 99.6250 2,100,000.000 2,105,699.39 2,092,125.00 0.67% -13,574.39 08/15/2013 DD 08/ 15/03SEC ID: 912828BH2 U S TREASURY NOTES 3.375% 97.5800 10,900,000.000 10,708,447.11 10,636,220.00 3.40% -72,227.11 12/15/2008 DD 12/ 15/03SEC ID: 912828BT6 US TREASURY INFLATION INDEXED 102.1100 105.734.000 107,939.37 107,964.99 0.03% 25.62 2.000% 01/15/2014 DD 01/15/04SEC ID: 912828BW9 US TREASURY NOTES 2.750% 99.0900 12,500,000.000 12,424,543.03 12,386,250.00 3.96% -38,293.03 06/30/2006 DD 06/30/04SEC ID: 912828CM0 US TREASURY INFLATION INDEX 102.1800 3,213,026.000 3,300,893.88 3,283,069.97 1.05% -17,823.91 NT 2.000% 07/15/2014 DD 07/15/04SECID:912828CP3 US TREASURY NOTES 2 .750% 98.9600 14,000,000.000 13,927,531.82 13,854,400.00 4.43% -73,131.82 07/31/2006 DD 07/31/04SEC ID: 912828CQ1 U S TREASURY NOTES 2.375% 98.5000 35,300,000.000 35,120,197.62 34,770,500.00 11.11% -349,697.62 08/31/2006 DD 08/31/04SEC ID: 912828CU2 U S TREASURY NOTES 2 .875% 98.6000 20,800,000.000 20,640,268.90 20,508,800.00 6.56% -131,468.90 11/30/2006 DD 11/30/04SEC ID: 912828DD9 U S TREASURY NOTES 3.500% 97.3000 13,920,000.000 13,626,296.77 13,544,160.00 4.33% -82,136.77 12/15/2009 DD 12/ 15/04SEC ID: 912828DE7 U S TREASURY NOTES 4.000% 99.1400 16,200,000.000 16,201,259.92 16,060,680.00 5.13% -140,579.92 03/15/2010 DD 03/ 15/05SEC ID: 912828DP2 U S TREASURY NOTES 3.750% 99.3900 11,200,000.000 11,165,662.53 11,131,680.00 3.56% -33,982.53 03/31/2007 DD 03/31/05SEC ID: 912828DQ0 U S TREASURY NOTES 3.500% 98.9500 11,000,000.000 10,915,072.08 10,884,500.00 3.48% -30,572.08 05/31/2007 DD 05/31/05SEC ID: 912828DW7 14 Workbench OCSD-CONSOLIDATED • OCSG000l0000 Description U S TREASURY NOTES 3.625% 06/30/2007 DD 06/30/0SSEC JD: 912828DY3 VIRGINIA ELEC & PWR 01 SER AS. 750% 03/31/2006 DD 03/27/01SECID:927804EN0 Price TOTAL FIXED INCOME SECURITIES TOTAL ASSETS U.S. DOLLAR Base 99.0800 100.6090 TOTAL ASSETS -BASE: Asset Detail by Currency 9/30/2005 Cost Shares Par Base 20,000,000.000 19,864,857.19 1,750,000.000 1,743,840.00 340,952,756.500 340,874,290.40 398,378,453.840 314,564,592.12 398,378,453.840 314,564,592.12 15 Report ID: GL8013 Base Currency: USD Alternate Base Currency: Exchange Rate: Status: FINAL Net Unrealized Market Value %of Gain/Loss Base Total Base 19,816,000.00 6.33% -48,857.19 1,760,657.50 0.56% 16,817.50 339,165,619.00 108.41% -1, 708,671.40 312,855,920.72 100.00% -1, 708,671.40 312,855,920.72 100.00% -1, 708,671.40 Workbench OCSD-CONSOLIDATED -OCSGOOO 10000 Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 Tran Type Description Trade Date Settle Date Reported Date RECEIPTS AND DISBURSEMENT TRANSACTIONS CASH TRANSFERRED IN U.S. DOLLAR CD RECD FRM OCSF0752222 REPS CLIENT REBALANCINGSEC ID: NA9123459OCSF0751 l 102: LIQUID OPER- PIMCO DISTRIBUTION TO PLAN ADMINISTRATOR U.S. DOLLAR cw cw TRAN TO ORANGE COUNTYSEC ID: NA9123459OCSF07522202: LONG TERM OPER-PIMCO TRAN TO ORANGE COUNTYSEC ID: NA9123459OCSF07522202: LONG TERM OPER-PIMCO 9/2/2005 9/2/2005 9/8/2005 9/8/2005 9/22/2005 9/22/2005 Local Price Base Price Base Ex Rate TOTAL DISTRIBUTION TO PLAN ADMINISTRATOR U.S. DOLLAR: TOTAL DISTRIBUTION TO PLAN ADMINISTRATOR BASE: CASH TRANSFERRED OUT U.S. DOLLAR cw TRAN TO OCSF075 l l 12 REPS CLIENT REBALANCINGSEC ID: NA9123459OCSF07522202: LONG TERM OPER-PIMCO 9/2/2005 9/2/2005 TOTAL RECEIPTS AND DISBURSEMENT TRANSACTIONS BASE: PURCHASES • Actual Settle Date 1 Shares/Par 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Cost Base 20,000,000.00 -10,000,000.00 -10,000,000.00 -20,000,000.00 -20,000,000.00 -20,000,000.00 -20,000,000.00 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base 20,000,000.00 -10,000,000.00 -10,000,000.00 -20,000,000.00 -20,000,000.00 -20,000,000.00 -20,000,000.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base ---- CASH & CASH EQUIVALENTS U.S. DOLLAR B BANKAMERICA CORP DISC 12/07 /2005SEC 9/8/2005 99.0675 1,600,000.000 1,585,080.00 -1,585,080.00 0.00 ID: 0660P0Z71BROKER: BANC OF AMERI CA 9/8/2005 SEC LLC, SAN FR>\NC ISCOOCSF07511102: 9/8/2005 LIQUID OPER-PIMCO B DU PONT DE NEMOUR DISC 09/ 16/2005SEC 9/2/2005 99.8647 1,000,000.000 998,646.67 -998,646.67 0.00 ID: 26354AWGSBROKER: GOLDMAN SACHS 9/2/2005 & CO, NYOCSF075 l 1102: LJQVlD OPER-9/2/2005 PIMCO B DU PONT DE NEMOUR DISC 09/29/2005SEC 9/16/2005 99.8671 1,000,000.000 998,671.11 -998,671.11 0.00 ID: 26354AWV2BROKER: CREDIT SUISSE, 9/16/2005 NEW YORKOCSF075l l 102: LIQUID OPER-9/16/2005 PLMCO B DU PONT DE NEMOUR DISC 10/ 18/2005SEC 9/28/2005 99.7933 1,359,000.000 1,356,191.40 -1,356, 191.40 0.00 ID: 26354AXJ8BROKER: CREDIT SUISSE, 9/28/2005 N'EW YORKOCSF07511102: LIQUID OPER-9/28/2005 PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/2/2005 99.9624 4,100,000.000 4,098,460.22 -4,098,460.22 0.00 09/06/2005SEC ID: 313385W3BROKER: 9/2/2005 BARCLAYS CAPITAL INC, NEW 9/2/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/6/2005 99.9906 4,100,000.000 4,099,612.78 -4,099,612.78 0.00 09 /07 /2005SEC ID: 313385LK0BROKER: 9/6/2005 BARCLAYS CAPITAL INC, NEW 9/6/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/7/2005 99.9906 1,300,000.000 1,299,877.94 -1,299,877.94 0.00 9/8/2005SEC ID: 313385LL8BROKER: 9/7/2005 BARCLAYS CAPITAL INC, NEW 9/7/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO Workbench ·• Actual Settle Date 2 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B FEDERAL HOME LN BK CONS DISC N MAT 9/9/2005 99.9718 3,800,000.000 3,798,929.67 -3, 798,929.67 0.00 09/12/2005SEC ID: 313385LQ7BROKER: 9/9/2005 BARCLAYS CAPITAL INC, NEW 9/9/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/12/2005 99.9905 6,500,000.000 6,499,382.50 -6,499,382.50 0.00 09/13/2005SEC ID: 313385LR5BROKER: 9/12/2005 BARCLAYS CAPITAL INC, NEW 9/12/2005 YORKOCSF07511102: LIQUID OPER-PlMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/14/2005 99.9906 2,800,000.000 2,799,735.56 -2,799,735.56 0.00 09/ 15/2005SEC ID: 313385LT1BROKER: 9/14/2005 BARCLAYS CAPITAL INC, NEW 9/14/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISCSEC ID: 9/15/2005 99.9901 6,500,000.000 6,499,353.61 -6,499,353.61 0.00 313385LU8BROKER: BARCLAYS CAPITAL 9/15/2005 INC, NEW YORKOCSF0751 l 102: LIQUID 9/15/2005 OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/16/2005 99.9706 6,500,000.000 6,498,087.92 -6,498,087.92 0.00 09 / 19 /2005SEC ID: 313385LX2BROKER: 9/16/2005 BARCLAYS CAPITAL INC, NEW 9/16/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/19/2005 99.9901 6,500,000.000 6,499,359.03 -6,499,359.03 0.00 09/20/2005SEC ID: 313385LY0BROKER: 9/19/2005 BARCLAYS CAPITAL INC, NEW 9/19/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/20/2005 99.9903 6,500,000.000 6,499,368.06 -6,499,368.06 0.00 09/21/2005SEC ID: 313385LZ7BROKER: 9/20/2005 MORGAN STANLEY & CO INC, 9/20/2005 NYOCSF0751 l 102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/21/2005 99.9900 6,500,000.000 6,499,350.00 -6,499,350.00 0.00 09/22/2005SEC ID: 313385MA1BROKER: 9/21/2005 BARCLAYS CAPITAL INC, NEW 9/21/2005 YORKOCSF075 l l l 02: LIQUID OPER-PIMCO Workbench ·> Actual Settle Date 3 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGOOO 10000 9/1/2005 -9/30/2005 Status: FINAL --- Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B FEDERAL HOME LN BK CONS SYSTEM MAT 9/22/2005 99.9904 6,500,000.000 6,499,373.47 -6,499,373.47 0.00 09/23/2005SEC ID: 313385MB9BROKER: 9/22/2005 BANC OF AMERICA SEC LLC, SAN 9/22/2005 FRANCISCOOCSF0751 l 102: LIQUID OPER- PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/23/2005 99.9702 6,500,000.000 6,498,060.83 -6,498,060.83 0.00 09/26/2005SEC ID: 313385ME3BROKER: 9/23/2005 BARCLAYS CAPITAL INC, NEW 9/23/2005 YORKOCSF075 l l 102: LIQUID OPER-P!MCO B FEDERAL HOME LN BK CONS DISC MAT 9/26/2005 99.9900 6,500,000.000 6,499,350.00 -6,499,350.00 0.00 09/27 /2005SEC ID: 313385MF0BROKER: 9/26/2005 GOLDMAN SACHS & CO, NYOCSF0751 l 102: 9/26/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/27/2005 99.9899 6,500,000.000 6,499,346.39 -6,499,346.39 0.00 09 /28/2005SEC ID: 313385MG8BROKER: 9/27/2005 BARCLAYS CAPITAL INC, NEW 9/27/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC N MAT 9/28/2005 99.9900 6,500,000.000 6,499,350.00 -6,499,350.00 0.00 09/29/2005SEC ID: 313385MH6BROKER: 9/28/2005 BARCLAYS CAPITAL INC, NEW 9/28/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/29/2005 99.9900 6,700,000.000 6,699,330.00 -6,699,330.00 0.00 09/30/2005SEC ID: 313385MJ2BROKER: 9/29/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/29/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 99.9735 4,900,000.000 4,898,701.50 -4,898,701.50 0.00 10/03/2005SEC ID: 313385MM5BROKER: 9/30/2005 GOLDMAN SACHS & CO, NYOCSF0751 l 102: 9/30/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 99.9735 500,000.000 499,867.50 -499,867.50 0.00 10/03/2005SEC ID: 313385MM5BROKER: 9/30/2005 BARCLAYS CAPITAL INC, NEW 9/30/2005 YORKOCSF07511102: LIQUID OPER-PIMCO Workbench ., Actual Settle Date 4 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B FEDERAL HOME LN MTG CORP DISC MAT 9/2/2005 99.9624 1,900,000.000 1,899,286.44 -1,899,286.44 0.00 0Q/06/2005SEC ID: 313397W8BROKER: 9/2/2005 LEH.lvlAN GOVT SECS INC, NYOCSF0751 l 102: 9;2;2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/15/2005 99.9901 3,800,000.000 3,799,622.11 -3,799,622.11 0.00 09/ 16/2005SEC ID: 313397LU3BROKER: 9/15/2005 BANC OF AMERICA SEC LLC, SAN 9/15/2005 FRANCISCOOCSF07511102: LIQUID OPER- PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/16/2005 99.9706 3,800,000.000 3,798,882.17 -3, 798,882.17 0.00 09 / 19 /2005SEC ID: 313397LX7BROKER: 9/16/2005 GOLDMAN SACHS & CO, NYOCSF07511102: 9 /16/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/19/2005 99.9901 3,800,000.000 3,799,625.28 -3,799,625.28 0.00 09/20/2.005SEC LD: 313397LY5BRO~R: 9/19/2005 LEHMAN GOVT SECS INC, NYOCSF0,511102: 9 / 19;2005 LIQUID OPER-Pl.MCO B FEDERAL HOME LN MTG CORP DISC MAT 9/20/2005 99.9904 3,800,000.000 3,799,635.83 -3, 799,635.83 0.00 09/21/2005SEC ID: 313397LZ2BROKER: 9/20/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/20/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/21/2005 99.9902 3,400,000.000 3,399,667.56 -3,399,667.56 0 .00 09/22/2005SEC ID: 313397MA6BROKER: 9/21/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9/2 l/2005 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/22/2005 99.9903 3,100,000.000 3,099,698.61 -3,099,698.61 0.00 09/23/2005SEC ID: 313397MB4BROKER: 9/22/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/22/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/23/2005 99.9706 3,100,000.000 3,099,088.08 -3,099,088.08 0.00 09 /26/2005SEC ID: 313397ME8BROKER: 9/23/2005 BARCLAYS CAPITAL INC, NEW 9/23/2005 YORKOCSF07511102: LIQUID OPER-PIMCO Workbench ·> Actual Settle Date 5 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base --- B FED HOME LN MTG CORP DISC NTS MAT 9/26/2005 99.9901 3,100,000.000 3,099,692.58 -3,099,692.58 0.00 09 /27 /2005SEC ID: 313397MF5BROKER: 9/26/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/26/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B FED:ERN, HOME L_N MTG CORP D(SC MAT 9/27/2005 99.9901 600,000.000 599,940.50 -599,940.50 0.00 09/28/2005SEC ID: 313397MG3BRO~ER: 9/27/2005 LEHMAN GOVT SECS JNC, NYOCSF07~11102: 9/27/2005 LIQUID OPER-PIMCO 8 FEDERAL HOME LN MTG CORP DISC MAT 9/28/2005 99.9901 1,100,000.000 1,099,890.92 -1,099,890.92 0.00 09/29/2005SEC ID: 313397MH1BROKER: 9/28/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/28/2005 YORKOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 99.9901 3,400,000.000 3,399,662.83 -3,399,662.83 0.00 09/30/2005SEC ID: 313397MJ7BROKER: 9/29/2005 CITIGROUP GBL MKTS/SALOMON, NEW 9/29/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/30/2005 99.9735 3,300,000.000 3,299,125.50 -3,299,125.50 0.00 10/03/2005SEC ID: 313397MM0BR<:KER: 9/30/2005 LEHMAN GOVT SECS INC, NYOCSF0t51 l 102: 9130;2oo5 LIQUID OPER-PIMCO B FEDERAL HOME LN MTG CORP DISC MAT 9/2/2005 98.1827 2,200,000.000 2,160,018.36 -2, 160,018.36 0.00 02/28/2006SEC ID: 313397TR2BROKER: 9/2/2005 UBS SECURITIES LLC, 9/2/2005 STAMFORDOCSF0751 l 102: LIQUID OPER- PIMCO B FEDERAL HOME LN MTG CORP DJSC MAT 9/13/2005 98.0890 700,000.000 686,623.00 -686,623.00 0.00 03/ 14/2006SEC ID: 313397UF6BROKER: 9/13/2005 LEHMAN GOVT SECS LNC, NYOCSF0751 ll02: 9/ 13;2oo5 LIQLJLD OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/2/2005 98.1725 3,800,000.000 3,730,555.00 -3, 730,555.00 0.00 03/01/2006SEC ID: 313589TS2BROKER: 9/2/2005 UBS SECURITIES LLC, 9/2/2005 STAMFORDOCSF0751 l 102: LIQUID OPER- PIMCO Workbench ·• Actual Settle Date 6 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USO OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL -I Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/28/2005 97.9808 2,500,000.000 2,449,520.28 -2,449,520.28 0.00 03/29/2006S:EC lD; 313589UW1BROKER: 9/28/2005 LEHMAN GOVT SECS INC, NYOCSF07522202: 9;28/2005 LONG '.f'.ERM OPER-P!MCO B US TREASURY BILL DUE 09/15/2005 DD 9/2/2005 99.8754 1,200,000.000 1,198,505.00 -1,198,505.00 0.00 03/ 17 /20005SEC ID: 912795VR9BROKER: 9/2/2005 GOLDMAN SACHS & CO, NYOCSF0751 l 102: 9/2/2005 LIQUID OPER-PIMCO B US TREASURY BILL DUE 09/15/2005 DD 9/6/2005 99.9138 4,500,000.000 4,496,118.75 -4,496,118.75 0.00 03 / 17 /20005SEC ID: 912795VR9BROKER: 9/6/2005 CHASE/GREENWICH CAP, NEW 9/6/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO B US TREASURY BILL DUE 09/15/2005 DD 9/13/2005 99.9810 5,100,000.000 5,099,033.13 -5,099,033.13 0.00 03/ 17 /20005SEC ID: 912795VR9BROKER: 9/13/2005 BANC OF AMERICA SEC LLC, SAN 9/13/2005 FRANCISCOOCSF075 l l 102: LIQUID OPER- PIMCO B UNITED STATES TREASURY BILL 0.000% 9/15/2005 98.1598 3,300,000.000 3,239,272.67 -3,239,272.67 0.00 03/16/2006 DD 09/ 15/05SEC ID: 9/15/2005 912795WT4BROKER: CHASE/GREENWICH 9/15/2005 CAP, NEW YORKOCSF0751 l 102: LIQUID OPER-PIMCO B WELLS FARGO BANK NA INSTL C/D 3.500% 9/6/2005 100.0000 2,800,000.000 2,800,000.00 -2,800,000.00 0.00 09/14/2005 DD 09/07/0SSEC ID: 9/7/2005 9"497P2T23BROKER: WELLS FARGO 9/6/2005 BROK8RAGE SVCS LLC, MINNEAPOCSF07511102: LIQUID OPER- B vJ:ft'&'s FARGO BANK NA INSTL C/D 3.760% 9/26/2005 100.0000 2,500,000.000 2,500,000.00 -2,500,000.00 0.00 JO/ 13/2005 DD 09/27/05SEC ID: 9/27/2005 94-97P23M7BROKER: WELLS FARGO 9/26/2005 BROKERAGE SVCS LLC, MINNEAPOCSF07511102: LIQUID OPER- B ~ CAT 2 REPO REPO 03.500% 9/1/2005 100.0000 14,000,000.000 14,000,000.00 -14,000,000.00 0.00 09/02/2005 DD 09/0l/05SEC ID: 9/1/2005 99440H .l5 1BROKER CREDLT SUISSE, NEW 9/1/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench ·> Actual Settle Date 7 OCSD-CONSOLIDATED • OCSG000l0000 Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 B B B B B B B B Tran Type Description Trade Date Settle Date Reported Date LEHMAN CAT 1 REPO REPO 03.530% 9/1/2005 09/02/2005 DD 09/01/05SEC ID: 9/1/2005 99440H615BROKER: LEHMAN GOVT SECS 9/ 112005 INC, NYOCSF075 l l 102: LIQUID OPER-PIMCO CREDIT SUISSE FB REPO 03.450% 09/06/2005 DD 09/02/05SEC ID: 99440Kl 13BROKER: CREDIT SUISSE, NEW YORKOCSF07511102: LLQUID OPER-PLMCO 9/2/2005 9/2/2005 9/2/2005 LEHMAN CAT 2 REPO 03.470% 09/07/2005 9/6/2005 DD 09/06/0SSEC ID: 99440L665BROKER: 9/6/2005 LEHMAN GOVT SECS INC, NYOCS.li0751 l 102: 91612005 LIQUJD OPER-PIMCO LEHMAN CAT 2 REPO 03.460% 09/08/2005 9/7/2005 DD 09/07/05SEC ID: 99440N315BROKER: 9/7/2005 LEHMAN GOVT SECS INC, NYOCSF0751 l 102: 917 ;2005 LIQUID OPER-PIMCO LEHMAN CAT 2 REPO 03.450% 09/09/2005 9/8/2005 DD _09/08/0SSEC ID: 99440Q029BR<:KER.: 9/8/2005 LEf-:1.MAN GOVT SECS LNC, NYOCSF0r511102: 91812005 LIQUlD OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.410% 9/9/2005 09/12/2005 DD 09/09/05SEC ID: 9/9/2005 99440R746BROKER: LEHMAN GOVT SECS 91912005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO LEHMAN CAT 2 REPO 03.400% 09/13/2005 9/12/2005 DD 09/12/05SEC ID: 99440T403BROKER: 9/12/2005 LEHMAN GOVT SECS INC, NYOCSF07511102: 9/12/2005 LIQUID OPER-PIMCO LEHMAN CAT l REPO REPO 03.420% 9/13/2005 09/14/2005 DD 09/ 13/05SEC ID: 9/13/2005 99440V325BROKER: LEHMAN GOVT SECS 9;13/2005 INC, NYOCSF075 l l l 02: LIQUID OPER-PIMCO ·• Actual Settle Date Local Price Base Price Base Ex Rate 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 8 Shares/Par 4,000,000.000 11,800,000.000 11,800,000.000 11,800,000.000 11,500,000.000 11,800,000.000 9,200,000.000 11,800,000.000 Cost Base 4,000,000.00 11,800,000.00 11,800,000.00 11,800,000.00 11,500,000.00 11,800,000.00 9,200,000.00 11,800,000.00 ReportID: EWBA09 Base Currency: USD Status: FINAL Amount Base -4,000,000.00 -11,800,000.00 -11,800,000.00 -11,800,000.00 -11,500,000.00 -11,800,000.00 -9,200,000.00 -11,800,000.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench OCSD-CONSOLIDATED · OCSG000l0000 Tran Type Description Transaction Detail Reported by Transaction Category 9/1/2005 -9/30/2005 Trade Date Settle Date Reported Date Local Price Base Price Base Ex Rate Shares/Par Cost Base B LEHMAN CAT 1 REPO REPO 03.440% 9/14/2005 100.0000 11,800,000.000 11,800,000.00 B B B B B B B 09/15/2005 DD 09 / 14/05SEC ID: 9/14/2005 99440X008BROKER: LEHMAN GOVT SECS 9 / 14;2o05 INC, NYOCSF075 ll l 02: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.610% 9/15/2005 09/16/2005 DD 09/15/05SEC ID: 9/15/2005 99440Y741BROKER: LEHMAN GOVT SECS 9/15/2005 INC, NYOCSF075 l l 102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.530% 9/16/2005 09/19/2005 DD 09/16/05SEC ID: 9/16/2005 99441A205BROKER: LEHMAN GOVT SECS 9/ 16;2oo5 INC, NYOCSF075 l l 102: LIQUID OPER-PIMCO CS FOB CAT 2 REPO REPO 03.510% 09/20/2005 DD 09/19/05SEC ID: 99441 C599BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 9/19/2005 9/19/2005 9/19/2005 LEHMAN CAT 1 REPO REPO 03.500% 9/19/2005 09/20/2005 DD 09/19/05SEC ID: 9/19/2005 99441C607BROKER: LEHMAN GOVT SECS 9/ l9/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.560% 9/20/2005 09/21/2005 DD 09/20/05SEC ID: 9/20/2005 99441El24BROKER: LEHMAN GOVT SECS 9;20/2005 INC, NYOCSF075 l 1102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.630% 9/21/2005 09/22/2005 DD 09/21/05SEC ID: 9/21/2005 99441F725BROKER: LEHMAN GOVT SECS 9/21/2005 INC, NYOCSF075 ll 102: LIQUID OPER-PIMCO CS FOB CAT 2 REPO REPO 03.620% 09/22/2005 DD 09/21/05SEC ID: 99441F865BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 9/21/2005 9/21/2005 9/21/2005 .. , Actual Settle Date 100.0000 11,800,000.000 11,800,000.00 100.0000 11,800,000.000 11,800,000.00 100.0000 3,200,000.000 3,200,000.00 100.0000 11,800,000.000 11,800,000.00 100.0000 11,800,000.000 11,800,000.00 100.0000 11,800,000.000 11,800,000.00 100.0000 1,900,000.000 1,900,000.00 9 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base -11,800,000.00 -11,800,000.00 -11,800,000.00 -3,200,000.00 -11,800,000.00 -11,800,000.00 -11,800,000.00 -1,900,000.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench OCSD-CONSOLIDATED -OCSG000l0000 Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 B B B B B B B B Tran Type Description Trade Date Settle Date Reported Date CS FOB CAT 2 REPO REPO 03.610% 09/23/2005 DD 09/22/05SEC ID: 99441H804BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 9/22/2005 9/22/2005 9/22/2005 LEHMAN CAT 1 REPO REPO 03.600% 9/22/2005 09/23/2005 DD 09/22/05SEC ID: 9/22/2005 99441H812BROKER: LEHMAN GOVT SECS 9/22/2005 INC, NYOCSF075 ll 102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.600% 9/23/2005 09/26/2005 DD 09/23/05SEC ID: 9/23/2005 99441K450BROKER: LEHMAN GOVT SECS 9/23/2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO CS FOB CAT 2 REPO REPO 03.610% 09/26/2005 DD 09/23/05SEC ID: 99441K492BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO CS FOB CAT 2 REPO REPO 03.620% 09/27/2005 DD 09/26/05SEC ID: 99441M134BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 9/23/2005 9/23/2005 9/23/2005 9/26/2005 9/26/2005 9/26/2005 LEHMAN CAT 1 REPO REPO 03.620% 9/26/2005 09/27/2005 DD 09/26/05SEC ID: 9/26/2005 99441M332BROKER: LEHMAN GOVT SECS 9/26/2005 INC, NYOCSF075 l l 102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.650% 9/27/2005 09/28/2005 DD 09/27 /05SEC ID: 9/27/2005 99441N967BROKER: LEHMAN GOVT SECS 9;27 /2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO CS FOB CAT 2 REPO REPO 03.650% 09/28/2005 DD 09/27 /05SEC ID: 99441P038BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 9/27/2005 9/27/2005 9/27/2005 ·• Actual Settle Date Local Price Base Price Base Ex Rate 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 10 Shares/Par 3,400,000.000 11,800,000.000 11,800,000.000 3,300,000.000 3,500,000.000 11,800,000.000 11,800,000.000 3,500,000.000 Cost Base 3,400,000.00 11,800,000.00 11,800,000.00 3,300,000.00 3,500,000.00 11,800,000.00 11,800,000.00 3,500,000.00 ReportID: EWBA09 Base Currency: USD Status: FINAL Amount Base -3,400,000.00 -11,800,000.00 -11,800,000.00 -3,300,000.00 -3,500,000.00 -11,800,000.00 -11,800,000.00 -3,500,000.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0 .00 0.00 Workbench Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B CS FOB CAT 2 REPO REPO 03.580% 9/28/2005 100.0000 1,600,000.000 1,600,000.00 -1,600,000.00 0.00 09/29/2005 DD 09/28/05SEC ID: 9/28/2005 99441 Q838BROKER: CREDIT SUISSE, NEW 9/28/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO B LEHMAN CAT 2 REPO 03.580%, 09/29/2005 9/28/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 DD 09/28/05SEC ID: 99441Q994BROKER: 9/28/2005 LEHMAN GOVT SECS INC, NYOCSF07511102: 9 /2B/2005 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 03.520% 09/30/2005 9/29/2005 100.0000 10,400,000.000 10,400,000.00 -10,400,000.00 0.00 DD 09 /29/0SSEC ID: 99441S529BR01IBR: 9/29/2005 LEHMAN GOVT SECS INC, NYOCSF07511102: 912912005 UQUID OPER-PIMCO B CS FOB CAT 2 REPO REPO 03.250% 9/30/2005 100.0000 11,800,000.000 11,800,000.00 -11,800,000.00 0.00 10/03/2005 DD 09/30/05SEC ID: 9/30/2005 99441U490BROKER: CREDIT SUISSE, NEW 9/30/2005 YORKOCSF07511 l 02: LIQUID OPER-PIMCO B DREYFUS TREASURY CASH MGMTSEC ID: 9/1/2005 1.0000 311.110 311.11 -311.11 0.00 996085247OCSF07511102: LIQUID OPER-9/1/2005 PIMCO 9/1/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/1/2005 1.0000 6,093,527.590 6,093,527.59 -6,093,527.59 0.00 996085247OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/1/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/2/2005 1.0000 11,907,494.970 11,907,494.97 -11,907,494.97 0.00 996085247OCSF0751 l 102: LIQUID OPER-9/2/2005 PIMCO 9/2/2005 B DREYFUS TREASURY CASH MGMTSEC ID : 9/6/2005 1.0000 43,786.810 43,786.81 -43,786.81 0.00 996085247OCSF07522202: LONG TERM 9/6/2005 OP ER-PIM CO 9/6/2005 Workbench ·> Actual Settle Date 11 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL -- Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base ---- B DREYFUS TREASURY CASH MGMTSEC ID: 9/7/2005 1.0000 1,259.450 1,259.45 -1,259.45 0.00 996085247OCSF07511102: LIQUID OPER-9/7/2005 PIMCO 9/7/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/8/2005 1.0000 16,054.110 16,054.11 -16,054.11 0.00 99608524 7OCSF07511102: LIQUID OPER-9/8/2005 PIMCO 9/8/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/9/2005 1.0000 98,172.410 98,172.41 -98,172.41 0.00 996085247OCSF07511102: LIQUID OPER-9/9/2005 PIMCO 9/9/2005 B DREYFUS TREASURY CASH MGMTSEC ID; 9/12/2005 1.0000 7,134.280 7,134.28 -7,134.28 0.00 996085247OCSF07522202: LONG TERM 9/12/2005 OPER-PIMCO 9/12/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/13/2005 1.0000 11,449.240 11,449.24 -11,449.24 0.00 996085247OCSF07511102: LIQUID OPER-9/13/2005 PIMCO 9/13/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/14/2005 1.0000 3,291.000 3,291.00 -3,291.00 0.00 99608524 7OCSF07511102: LIQUID OPER-9/14/2005 PIMCO 9/14/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/15/2005 1.0000 62,879.170 62,879.17 -62,879.17 0.00 996085247OCSF07511102: LIQUID OPER-9/15/2005 PIMCO 9/15/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/15/2005 1.0000 256,401.160 256,401.16 -256,401.16 0.00 996085247OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 Workbench ·• Actual Settle Date 12 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 9/16/2005 1.0000 119,023.470 119,023.47 -119,023.47 0.00 996085247OCSF07522202: LONG TERM 9/16/2005 OPER-PIMCO 9/16/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/19/2005 1.0000 11,804,486.860 11,804,486.86 -11,804,486.86 0.00 996085247OCSF07511102: LIQUID OPER-9/19/2005 PIMCO 9/19/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/19/2005 1.0000 3,020,869.050 3,020,869.05 -3,020,869.05 0.00 996085247OCSF07522202: LONG TERM 9/19/2005 OPER-PIMCO 9/19/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/20/2005 1.0000 2,242,585.820 2,242,585.82 -2,242,585.82 0.00 99608524 7OCSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/21/2005 1.0000 402,149.330 402,149.33 -402, 149.33 0.00 99608524 7OCSF0751 l 102: LIQUID OPER-9/21/2005 PIMCO 9/21/2005 B DREYFUS TREASURY CASH MGMTSEC ID : 9/23/2005 1.0000 100,340.940 100,340.94 -100,340.94 0.00 99608524 7OCSF07522202: LONG TERM 9/23/2005 OPER-PIMCO 9/23/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/23/2005 1.0000 4,031.090 4,031.09 -4,031.09 0.00 996085247OCSF07511102: LIQUID OPER-9/23/2005 PIMCO 9/23/2005 B DREYFUS TREASURY CASH MGMTSEC ID: 9/26/2005 1.0000 4,497.420 4,497.42 -4,497.42 0.00 996085247OCSF07511102: LIQUID OPER-9/26/2005 PIMCO 9/26/2005 Workbench -., Actual Settle Date 13 OCSD-CONSOLIDATED -OCSG000lO000 Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 B B B B 8 Tran Type Description Trade Date Settle Date Reported Date DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07511102: LIQUID OPER- PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07511102: LIQUID OPER- PIMCO BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 996087094OCSF07522202: LONG TERM OPER-PIMCO 9/26/2005 9/26/2005 9/26/2005 9/27/2005 9/27/2005 9/27/2005 9/27/2005 9/27/2005 9/27/2005 9/28/2005 9/28/2005 9/28/2005 9/23/2005 9/23/2005 9/23/2005 Local Price Base Price Base Ex Rate 1.0000 1.0000 1.0000 1.0000 1.0000 Shares/Par 1,415,258.140 351.940 1,899.670 45,764.070 12,797.280 Cost Base 1,415,258.14 351.94 1,899.67 45,764.07 12,797.28 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: 479,234,816.380 478,952,767.14 8 TOTAL CASH & CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES U.S. DOLLAR BEAR STEARNS COS INC GLOBAl.. NT 3.000% 9/13/2005 03/30/2006 DD 02/ 19/03SEC ID: 9/16/2005 073902CB2BROKER: JEFFERIES & CO INC, 9/l3/2005 NEW YORKOCSF07511102: LIQUID OPER- PIMCO ·• Actual Settle Date 479,234,816.380 478,952,767.14 99.4330 112,000.000 111,364.96 14 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base -1,415,258.14 -351.94 -1,899.67 -45,764.07 -12,797.28 -478,952,767.14 -478,952, 767 .14 -111,364.96 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench OCSD-CONSOLIDATED -OCSG000l0000 Transaction Detail Reported by Transaction Category 9/1/2005 -9/30/2005 Tran Trade Date Settle Date Reported Date Type Description 1B B 1B B 1B B 1B B BEAR STEARNS COS INC GLOBAL NT 3.000% 9/13/2005 03/30/2006 DD CJ2/19/03SEC ID: 9/16/2005 073902CB2BRQKER: JEFFERlES & CO LNC, 9/13/2005 NEW YORKOCSF07Sll l 02: U QULD OPER- PIMCO FEDERAL HOME LN MTG CORP MTN 2.375°/t, 9/21/2005 05/19/2006 DD 05/19/03SEC ID: 9/22/2005 3128XJCU9BROKER: GOLDMAN SAOI-1S & 9/2 l/2005 CO, NYOCSF0751 l 102: LlQlJID OPER-PIMCO FEDERAL HOME LN MTG CORP MTN 2.375% 9/21/2005 05/19/2006 DD 05/19/03SEC ID: 9/22/2005 -31Q8XlCU9BROKER: GOLDMAN SA.CHS & CO, NYOCSF07511102: LIQUID OPE'R-PIMCO 9/2l/2oo5 FEDERAL HOME LN MTG CORP MTN 6.250% 9/27/2005 11/J.4/20J.3DD :-l/l4/03SEC ID: 9/28/2005 3128Xl6R3BROKER: FlRSTTENNESSEE BK 9;27/2005 NA-BOND DIV, MEMPI·l1S0CSF07522'.202: LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP MTN 6.250% 9/27/2005 11/14/2013 DD ll/14/03S~C ID:. . 9/28/2005 3128Xl6R3BROKER: FI RST rENN"ESSEE BK 9127 ;2005 NA-BOND DIV, MEMPHISOCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS BD 4.000% 03/18/'2011 DD 06/19/03SEC 10: 31339XKN3BROKER: FIRST TENNESSEE BK NA-BOND DIV, ME.MPHIS0CSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN BKS CONS BD 4.000% 03/18/201J DD 06/ 19j03SEC ID: 31339XKN3BROKER: FIRST TENNESSEE BK NA-BONO DIV, MEMPHfSOCSF07522202: LONG TERM OPER-PIMCO 9/28/2005 9/29/2005 9/28/2005 9/28/2005 9/29/2005 9/28/2005 HSBCFINCORPNTVARRT 09/15/2008DD 9/8/2005 09/ 15/0SSEC ID: 40429CCU4BROKER: JP 9/15/2005 "MORGAN CHASE BANK/HSBC!, NEW 2 YORKOCSF07522202: LONGTERM O'PER-9/3/ oo5 PIMCO ·> Actual Settle Date Local Price Base Price Base Ex Rate 99.4330 98.8320 98.8320 100.2656 100.2656 96.0781 96.0781 100.0000 15 Shares/Par 0.000 700,000.000 0.000 1,000,000.000 0.000 3,000,000.000 0.000 2,700,000.000 Cost Base 0.00 691,824.00 0.00 1,002,656.25 0.00 2,882,343.75 0.00 2,700,000.00 ReportlD: EWBA09 Base Currency: USD Status: FINAL Amount Base -1,549.33 -691,824.00 -5,680.21 -1,002,656.25 -23,263.89 -2,882,343. 75 -3,666.67 -2, 700,000.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGOOOlOOOO 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base --- B MERRILL LYNCH & CO INC NT 6.250% 9/8/2005 100.7220 102,000.000 102,736.44 -102,736.44 0.00 01/15/2006 DD 0l/20/94SEC ID: 9/13/2005 590188FC7BROKER: JEFFERIES & CO INC, 9/8/2005 NEW YORKOCSF0751 l 102: LIQUID OPER- PIMCO 18 MERRILL LYNCH & CO INC NT 6.250% 9/8/2005 100.7220 0.000 0.00 -1,027.08 0.00 01/15/2006 DD 0l/20/94SEC ID: 9/13/2005 590188FC7BROKER: JEFFERIES & CO INC, 9/8/2005 NEW YORKOCSF0751 l 102: LIQUID OPER- PIMCO B SLM CORP MTN# TR 00067 VAR RT 9/27/2005 100.2800 1,800,000.000 1,805,040.00 -1,805,040.00 0.00 07/25/2008 DD 07 /26/04SEC ID: 9/30/2005 78442FCU0BROKER: GOLDMAN SACHS & 9/27/2005 CO, NYOCSF07522202: LONG TERM OPER- PIMCO IB SLM CORP MTN# TR 00067 VAR RT 9/27/2005 100.2800 0.000 0.00 -12,931.00 0.00 07/25/2008 DD 07 /26/04SEC ID: 9/30/2005 78442FCU0BROKER: GOLDMAN SACHS & 9/27/2005 CO, NYOCSF07522202: LONG TERM OPER- PIMCO B SLM STUDENT LN TR 04-6 A2 VAR RT 9/29/2005 100.0117 2,587,990.370 2,588,293.65 -2,588,293.65 0.00 01/25/2013 DD 06/30/04SEC ID: 10/4/2005 78442GMA1BROKER: BARCLAYS CAPITAL 9/29/2005 INC, NEW YORKOCSF07522202: LONG TERM OPER-PIMCO 1B SLM STUDENT LN 1'R 04-6 A2 VAR RT 9/29/2005 100.0117 0.000 0.00 -18,834.10 0.00 01/25/2013 DD 06/30/04SEC TD: 10/4/2005 78442GMA1BROKER: BARCLAYS CAPITAL 9;29/2005 !NC, NEW YORKOCSF07522202: LONG '!'ERM OP ER-PIM CO BC SALOMON SMITH MTN# SR 00206 VAR RT 8/23/2005 100.3702 -2,300,000.000 -2,308,514.60 2,308,514.60 0.00 05/18/2007 DD 05/28/02SEC ID: 8/26/2005 79548EJP8BROKER: CITIGROUP GBL 9/1/2005 MKTS/SALOMON, NEW YORKOCSF07522202: LONG TERM OPER-PIMCO IBC SALOMON SMITH MTN # SR 00206 VAR RT 8/23/2005 100.3702 0.000 0.00 13,432.34 0.00 05/18/2007 DD 05/28/02SEC ID: 8/26/2005 79548EJP8BROKER: CITIGROUP GBL l MKTS/SALOMON, NEW YORKOCSF07522202: 9/ /2oo5 LONG TERM OPER-PIMCO Workbench ·• Actual Settle Date 16 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL ---Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B SALOMON SMITH MTN # SR 00206 VAR RT 8/23/2005 100.3702 2,300,000.000 2,308,514.60 -2,308,514.60 0.00 05/18/2007 DD 05/28/02SEC ID: 8/26/2005 79548EJP8BROKER: CITIGROUP GBL 9/ l/2005 MKTS/SALOMON, NEW YORKOCSF07522202: / / . LONG TERM OPER-PIMCO 9 12 2005 ' 1B SALOMON SMITH MTN# SR 00206 VAR RT 8/23/2005 100.3702 0.000 0.00 -6,298.06 0.00 OS/ 18/2007 DD 0'5/28/02SE_C ID: 8/26/2005 79548EJP8BROKER: CITIGROUP GBL MlCTS/SALO.M.ON, NEW YORKOCSF07522202: 9/ l/2oo5 . WNG TERM OPER-P!MCO 9/12/2005' B US TREASURY NOTES 4.250% 08/15/2013 9/19/2005 100.4248 2,100,000.000 2,108,920.04 -2, 108,920.04 0.00 DD 08/ 15/03S,EC ID: 912828BH2BR9~ER: 10/4/2005 LEHMAN GOVT SECS INC. NYOCSF0t:>22202: 9/ 1912005 LONG TERM OPER-PIMCO 1B US TREASURY NOTES 4.250% 08/15/2013 9/19/2005 100.4248 0.000 0.00 -12, 126.36 0.00 DD 08/l5/03SEC !D: 912828Bt-!2BR9KER: 10/4/2005 LEHMAN GOVT SECS INC, NYOCSF0t522202:9119;2oo5 LONG TERM OPER-PIMCO B US TREASURY NOTES 3.375% 12/15/2008 9/21/2005 98.2426 10,900,000.000 10,708,447.11 -10,708,447.11 0.00 DD 12/ 15/03SEC ID: 912828BT6BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9121/2005 LONG TERM OPER-PIMCO 1B US TREASURY NOTES 3.375% 12/15/2008 9/21/2005 98.2426 0.000 0.00 -126, 645.49 0.00 DD 12/15/03SEC ID: 912828BT6BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9/21/2005 LONG TERM OPER-PIMCO B US TREASURY NOTES 2.750% 06/30/2006 9/7/2005 99.2477 9,500,000.000 9,428,528.27 -9,428,528.27 0.00 DD 06/30/04SEC JD: 912828CM0HRO.KER: 9/21/2005 GOLDJvlAN SACHS & CO, NYOCSF0 7522202: 9/7/2005 LONG TERM OPE:"R-PlMCO 1B US TREASURY NOTES 2.750% 06/30/2006 9/7/2005 99.2477 0.000 0.00 -58,923.23 0.00 DD 06/30/04SEC ID: 912828CM0BROKER: 9/21/2005 GOLDMAN SACHS & CO, NYOCSF0752-2202: 9/7/2005 LONG TERM OPER-PlMCO Workbench ·> Actual Settle Date 17 Transaction Detail Report ID: ·EWBA09 Reported by Transaction Category Base currency: uso OCSD-CONSOLIDATED-OCSG0O0l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base 8 U S TREASURY NOTES 2. 750% 07 / 3 J /2006 9/14/2005 99.1398 5,000,000.000 4,956,992.20 -4,956,992.20 0.00 DD 07/31/04SEC lD: 9l2828CQ1BROKER: 9/21/2005 MERRILL .LYNCH PIERCE F.ENNER SMITH lNC 9/ 14;2o05 NYOCSF07522202: LONG TERM OPER-P!MCO 18 U S'fREASURY NOTE.S 2.750'}"1, 07/31/2006 9/14/2005 99.1398 0.000 0.00 -19,429.35 0.00 DD 07 /31/04SEC ID: 9 12828CQ1BROKER: 9/21/2005 MERRrLL LYNCH PIERCE FENNER SM1TH !NC 9/ 1412005 NYOCSF07522202: LONG TERM OPER-PIMCO 8 US TREASURY NOTES 2.750% 07/31/2006 9/20/2005 99.1356 14,000,000.000 13,878,982.74 -13,878,982.74 0.00 DD 07/31/04SEC ID: 912828CQJBRO.KER: 10/19/2005 CREDIT SUJSSE, NEW YORKOCSF07522202: 9120;2oo5 LONG TERM OPER-PI:M.CO 18 USTREASURYNOTES 2.750%07/31/2006 9/20/2005 99.1356 0.000 0.00 -83,695.65 0.00 DD 07/31/04SEC ID: 912828CQ1BROKER: 10/19/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9120/2005 LONG TERM OPER-PIMCO B US TREASURY NOTES 3.500% 12/15/2009 9/20/2005 97.8901 13,920,000.000 13,626,296.77 -13,626,296.77 0.00 DD 12/ 15/04SEC ID: 912828DE78~OKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF0/522202: 9/20/2005 LONG TERM OPER-PIMCO 18 US TREASURY NOTES 3.500% 12/15/2009 9/20/2005 97.8901 0.000 0 .00 -167,724.59 0.00 DD 12/15/04SEC ID: 912828DE7BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO 8 US TREASURY NOTES 4.000% 03/15/2010 9/6/2005 100.5313 15,000,000.000 15,079,687.50 -15,079,687.50 0.00 DD 03/15/05SEC ID: 912828DP28ROKER: 9/6/2005 UBS SECURITIES LLC, STAMFORDOCSF07522202: LONG TERM 9/5/2oo5 OPER-PIMCO 18 US TREASURY NOTES 4.000% 03/15/2010 9/6/2005 100.5313 0.000 0 .00 -285,326.09 0.00 DD 03/15/05SEC ID: 912828DP2BROKER.: 9/6/2005 UBS SECURlTlES LLC, STAMFORDOCSF07522202: LONGTERM 9 /5/2oo5 OPER-PIMCO Workbench ·• Actual Settle Date 18 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGOOOlOOOO 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base B US TREASURY NOTES 3.750% 03/31/2007 9/20/2005 99.6840 11,200,000.000 11,164,607.55 -11,164,607.55 0.00 DD 03/31/05SEC ID: 912828DQ0BROKER: 10/19/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 912012005 LONG TERM OPER-PIMCO 1B US TREASURY NOTES 3.750%, 03/31/2007 9/20/2005 99.6840 0.000 0.00 -21,923.08 0.00 DD 03/31/05SEC ID: 912828DQ0BROKER: 10/19/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO B US TREASURY NOTES 3.500% 05/31/2007 9/20/2005 99.2279 11,000,000.000 10,915,072.08 -10,915,072.08 0.00 DD 05/31/05SEC ID: 912828DW7BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9;20/2005 LONG TERM OPER-PIMCO 1B US TREASURY NOTES 3.500% 05/31/2007 9/20/2005 99.2279 0.000 0.00 -148,319.67 0.00 DD 05/31/05SEC ID: 912828DW7BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9 /20/2005 LONG TERM OPER-PIMCO B US TREASURY NOTES 3.625% 06/30/2007 9/20/2005 99.3817 20,000,000.000 19,876,334.40 -19,876,334.40 0.00 DD 06/30/05SEC ID: 912828DY3BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO 1B US TREASURY NOTES 3.625% 06/30/2007 9/20/2005 99.3817 0.000 0.00 -218,682.07 0.00 DD 06/30/05SEC ID: 912828DY3BROKER: 10/19/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 124,621,990.370 123,628,127.71 -124,830,741.29 0.00 TOTAL FIXED INCOME SECURITIES BASE: 124,621,990.370 123,628,127.71 -124,830,741.29 0.00 TOTAL PURCHASES BASE: 603,856,806.750 602,580,894.85 -603, 783,508.43 0.00 Workbench ·• Actual Settle Date 19 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PAY UPS FIXED INCOME SECURITIES U.S. DOLLAR PU FHLMC MULTICL!\SS MTG SER E3A VAR RT 9/1/2005 100.0000 0.650 0.65 -0.65 0.00 08/15/2032 DD )2/01/97SEC [D: 9/1/2005 3133TCE95OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/16/2005* PU US TREASURY INFLATION LNDEX NT 3.375% 7/15/2005 100.0000 38,096.140 38,096.14 -38,096.14 0.00 01/15/2007 DD 0l /15/97SEC ID: 7/15/2005 9128272M3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005 * PU US TREASURY INFLATION INDBX NT 3.625% 7/15/2005 100.0000 11,340.000 11,340.00 -11,340.00 0.00 01/15/2008 DD 0l/15/98SEC ID: 7/15/2005 9128273T7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005 * PU US TREASURY INFLATION INDEX NT 3.875% 7/15/2005 100.0000 50,540.000 50,540.00 -50,540.00 0.00 01/15/2009 DD 0l/15/99SEC ID: 7/15/2005 9128274Y5OCSF07522202: LONG TERM 9/1/2005 OP ER-PIM CO 9/30/2005 * PU US TREASURY LNFLATlON INDEXED 2.000% 7/15/2005 100.0000 472.000 472.00 -472.00 0.00 01/15/2014 DD 01/15/04SEC JD: 7/15/2005 9!28288W9OCSF07522202: LONG TERM 9/1/2005 OPER-PlMCO 9/30/2005 • PU US TREASURY LNFLATIONJ.NDEX NT 2.000% 7/15/2005 100.0000 14,353.000 14,353.00 -14,353.00 0.00 07/15/2014 DD 07 / 15/04SEC ID: 7/15/2005 912828CP3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/30/2005 * TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 114,801.790 114,801.79 -114,801.79 0.00 TOT AL FIXED INCOME SECURITIES BASE: 114,801.790 114,801.79 -114,801.79 0.00 Workbench ·• Actual Settle Date 20 OCSD-CONSOLIDATED-OCSG000lO000 Transaction Detail Reported by Transaction Category 9/1/2005 -9/30/2005 Tran Type Description Trade Date Settle Date Reported Date Local Price Base Price Base Ex Rate TOTAL PAY UPS BASE: SALES CASH & CASH EQUIVALENTS U.S. DOLLAR s IS s IS s IS FEDERAL HOME LN MTG CORP DISC MAT 12/ 12/2005SEC ID: 313397QK0BROKER: UBS SECURITIES LLC, STAMFORDOCSF07522202: LONG TERM OPER-PIMCO FEDERAL HOME LN MTG CORP DISC MAT 12/ 12/2005SEC ID: 313397QK0BROKER: UBS SECURITIES LLC, STAMFORDOCSF07522202: LONG TERM OPER-PIMCO 9/29/2005 9/29/2005 9/29/2005 9/29/2005 9/29/2005 9/29/2005 FEDERAL NATL MTG ASSN DISCOUNT MAT 9/29/2005 03/29/2006SEC ID: 313589UW1BROKER: 9/29/2005 MORGAN STANLEY & CO INC, 9/29/2005 NYOCSF07522202: LONG TERM OPER-PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT 9/29/2005 03/29/2006SEC ID: 313589UW1BROKER: 9/29/2005 MORGAN STANLEY & CO INC, 9/29/2005 NYOCSF07522202: LONG TERM OPER-PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT 9/30/2005 03/29/2006SEC ID: 313589UW1BROKER: 9/30/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9 /30/2005 LONG TERM OPER-PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT 03/29/2006SEC ID: 313589UW1BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER-PIMCO 9/30/2005 9/30/2005 9/30/2005 ·• Actual Settle Date 98.8694 98.8694 97.9808 97.9808 97.9808 97.9808 21 Shares/Par 114,801.790 -200,000.000 0.000 -1,000,000.000 0.000 -1,500,000.000 0.000 Cost Base 114,801.79 -197, 738.89 0.00 -979,808.11 0.00 -1,469, 712.17 0.00 ReportID: EWBA09 Base Currency: USD Status: FINAL Amount Base -114,801.79 197,738.89 711.22 979,808.11 734.39 1,469,712.17 1,037.83 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL --Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base s US TREASURY BILL 10/13/2005 DD 9/1/2005 98.5164 -2,000,000.000 -1,970,327.92 1,970,327.80 -0.12 04/14/2005SEC ID: 912795VV0BROKER: 9/2/2005 GOLDMAN SACHS & CO, NYOCSF0751 l 102: 9/ l/2005 LIQUID OPER-PIMCO IS US TREASURY BILL 10/13/2005 DD 9/1/2005 98.5164 0.000 0.00 22,246.64 0.00 04/14/2005SEC ID: 912795VV0BROKER: 9/2/2005 GOLDMAN SACHS & CO, NYOCSF0751 l 102: 9/1/2005 LIQUID OPER-PIMCO s CS FOB CAT 2 REPO REPO 03.500% 9/1/2005 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 09/01/2005 DD 08/31/05SEC ID: 9/1/2005 99440F718BROKER: CREDIT SUISSE, NEW 9/1/2005 YORKOCSF0751 l 102: LIQUID OPER-PIMCO IS CS FOB CAT 2 REPO REPO 03.500% 9/1/2005 100.0000 0.000 0.00 311.11 0.00 09/01/2005 DD 08/31/05SEC ID: 9/1/2005 99440F718BROKER: CREDIT SUISSE, NEW 9/1/2005 YORKOCSF07511102: LIQUID OPER-PIMCO s CS FOB CAT 2 REPO REPO 03.500% 9/2/2005 100.0000 -14,000,000.000 -14,000,000.00 14,000,000.00 0.00 09/02/2005 DD 09/01/05SEC ID: 9/2/2005 99440Hl51BROKER: CREDIT SUISSE, NEW 9/2/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.500% 9/2/2005 100.0000 0.000 0.00 1,361.11 0.00 09/02/2005 DD 09/01/05SEC ID: 9/2/2005 99440Hl51BROKER: CREDIT SUISSE, NEW 9/2/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO s LEHMAN CAT 1 REPO REPO 03.530% 9/2/2005 100.0000 -4,000,000.000 -4,000,000.00 4,000,000.00 0.00 09/02/2005 DD 09/01/05SEC ID: 9/2/2005 99440H615BROKER: LEHMAN GOVT SECS 91212005 INC, NYOCSF075 ll l 02: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.530% 9/2/2005 100.0000 0.000 0.00 392.22 0.00 09/02/2005 DD 09/01/05SEC ID: 9/2/2005 99440H615BROKER: LEHMAN GOVT SECS 9/2/2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO Workbench ·> Actual Settle Date 22 Transaction Detail ReportlD: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base s CREDIT SUISSE FB REPO 03.450% 9/6/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/06/2005 DD 09/02/05SEC ID: 9/6/2005 99440Kl 13BROKER: CREDIT SUISSE, NEW 9/6/2005 YORKOCSF07511102: LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 03.450% 9/6/2005 100.0000 0.000 0.00 4,523.33 0.00 09/06/2005 DD 09/02/05SEC ID: 9/6/2005 99440Kl 13BROKER: CREDIT SUISSE, NEW 9/6/2005 YORKOCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 03.470% 09/07/2005 9/7/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 DD 09/06/05SEC ID: 99440L665BROKER: 9/7/2005 LEHMAN GOVT SECS INC, NYOCSF0751 l 102: 91712005 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.470% 09/07/2005 9/7/2005 100.0000 0.000 0.00 1,137.39 0.00 DD 09/06/05SEC ID: 99440L665BR<:KER: 9/7/2005 LEHMAN GOVT SECS INC, NYOCSF0r51 l 102: 9/7/2005 LIQUID OPER-PIMCO s LEHMAN CAT 2 REPO 03.460% 09/08/2005 9/8/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 DD 09/07/0S~C JD: 99440N3158R~KER: 9/8/2005 LEHTvlAN GOV1 SECS INC, NYOCSF0r511102:9/8/2005 LJQUill OP&R-PIMCO IS LEHMAN CAT 2 REPO 03.460% 09/08/2005 9/8/2005 100.0000 0.000 0.00 1,134.11 0.00 DD 09/07/05SEC ID: 99440N315BROKER: 9/8/2005 I.EHMAN GOVT SECS INC, NYOCSF07511102: 91812005 LJQUlD OPER-PJMCO s LEHMAN CAT 2 REPO 03.450% 09/09/2005 9/9/2005 100.0000 -11,500,000.000 ·11,500,000.00 11,500,000.00 0.00 DD 09/08/05SEC ID: 99440Q029BROKER: 9/9/2005 LEHMAN GOVT SECS INC, NYOCSF0751 l 102: 9 /9 /2005 LIQUID OPER-PlMCO IS LEHMAN CAT 2 REPO 03.450% 09/09/2005 9/9/2005 100.0000 0.000 0.00 1,102.08 0.00 DD 09/08/0SSEC ID: 99440Q029BROKER: 9/9/2005 LEHMAN GOVT SECS INC, NYOCSF07511102: 91912005 LJQUID OPER-PlMCO Workbench ·• Actual Settle Date 23 OCSD-CONSOLIDATED · OCSG000 10000 Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 Tran Trade Date Settle Date Reported Date Type Description s IS s IS s IS s IS LEHMAN CAT 1 REPO REPO 03.410% 9/12/2005 09/12/2005 DD 09/09/05SEC ID: 9/12/2005 99440R746BROKER: LEHMAN GOVT SECS 9/12/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.410% 9/12/2005 09/12/2005 DD 09/09/05SEC ID: 9/12/2005 99440R7468ROKER: LEHMAN GOVT SECS 9/12/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO LEHMAN CAT 2 REPO 03.400% 09/13/2005 9/13/2005 DD 09 / 12/05SEC ID: 99440T403BROKER: 9/13/2005 LEHMAN GOVT SECS INC, NYOCSF07511102: 9/13/2005 LIQUID OPER-PIMCO LEHMAN CAT 2 REPO 03.400% 09/13/2005 9/13/2005 DD 09/ 12/05SEC ID: 99440T403BROKER: 9/13/2005 LEHMAN GOVT SECS INC, NYOCSF07511102: 9/13/2005 LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.420% 9/14/2005 09/14/2005 DD 09/13/05SEC ID: 9/14/2005 99440V325BROKER: LEHMAN GOVT SECS 9/14/2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.420% 9/14/2005 09/14/2005 DD 09/13/05SEC ID: 9/14/2005 99440V325BROKER: LEHMAN GOVT SECS 9;14/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.440% 9/15/2005 09/15/2005 DD 09/ 14/05SEC ID: 9/15/2005 99440X008BROKER: LEHMAN GOVT SECS 9/l5/2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.440% 9/15/2005 09/15/2005 DD 09/ 14/05SEC ID: 9/15/2005 99440X008BROKER: LEHMAN GOVT SECS 9;15/2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO • Actual Settle Date Local Price Base Price Base Ex Rate 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 24 Shares/Par -11,800,000.000 0.000 -9,200,000.000 0.000 -11,800,000.000 0.000 -11,800,000.000 0.000 Cost Base -11,800,000.00 0.00 -9,200,000.00 0.00 -11,800,000.00 0.00 -11,800,000.00 0.00 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base 11,800,000.00 3,353.17 9,200,000.00 868.89 11,800,000.00 1,121.00 11,800,000.00 1,127.56 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench OCSD-CONSOLIDATED -OCSG000 10000 Transaction Detail Reported by Transaction Category 9/1/2005 -9/30/2005 Tran Type Description Trade Date Settle Date Reported Date s IS s IS s IS s IS LEHMAN CAT 1 REPO REPO 03.610% 9/16/2005 09/16/2005 DD 09/15/05SEC ID: 9/16/2005 99440Y741BROKER: LEHMAN GOVT SECS 9/ l6/2005 INC, NYOCSF075 ll l 02: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.610% 9/16/2005 09/16/2005 DD 09 / 15/05SEC ID: 9/16/2005 99440Y741BROKER: LEHMAN GOVT SECS 9/ l6/2005 INC, NYOCSF075 l 1102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.530% 9/19/2005 09/19/2005 DD 09/16/05SEC ID: 9/19/2005 99441A205BROKER: LEHMAN GOVT SECS 9/ l9/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.530% 9/19/2005 09/19/2005 DD 09/16/05SEC ID: 9/19/2005 99441A205BROKER: LEHMAN GOVT SECS INC, NYOCSF07511102: LIQUID OPER-PIMCO 9/ l 9/2oo5 CS FOB CAT 2 REPO REPO 03.510% 09/20/2005 DD 09/19/05SEC ID: 99441C599BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO CS FOB CAT 2 REPO REPO 03.510% 09/20/2005 DD 09/19/05SEC ID: 99441C599BROKER: CREDIT SUISSE, NEW YORKOCSF07522202: LONG TERM OPER- PIMCO 9/20/2005 9/20/2005 9/20/2005 9/20/2005 9/20/2005 9/20/2005 LEHMAN CAT 1 REPO REPO 03.500% 9/20/2005 09/20/2005 DD 09/ 19/05SEC ID: 9/20/2005 99441C607BROKER: LEHMAN GOVT SECS 9/20/2005 INC, NYOCSF075 l 1102: LIQUID OPER-PIMCO LEHMAN CAT 1 REPO REPO 03.500% 9/20/2005 09/20/2005 DD 09/ 19/05SEC ID: 9/20/2005 99441C607BROKER: LEHMAN GOVT SECS 9/20/2005 INC, NYOCSF075 l 1102: LIQUID OPER-PIMCO ·• Actual Settle Date Local Price Base Price Base Ex Rate 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 100.0000 25 Shares/Par -11,800,000.000 0.000 -11,800,000.000 0.000 -3,200,000.000 0.000 -11,800,000.000 0.000 Cost Base -11,800,000.00 0.00 -11,800,000.00 0.00 -3,200,000.00 0.00 -11,800,000.00 0.00 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base 11,800,000.00 1,183.28 11,800,000.00 3,471.17 3,200,000.00 312.00 11,800,000.00 1,147.22 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Workbench Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USO OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base - s LEHMAN CAT 1 REPO REPO 03.560% 9/21/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/21/2005 DD 09/20/05SEC ID: 9/21/2005 99441E124BROKER: LEHMAN GOVT SECS 9/2 l/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.560% 9/21/2005 100.0000 0.000 0.00 1,166.89 0.00 09/21/2005 DD 09/20/05SEC ID: 9/21/2005 99441E124BROKER: LEHMAN GOVT SECS 9/2 l/2005 INC, NYOCSF07511102: LIQULD OPER-PIMCO s LEHMAN CAT 1 REPO REPO 03.630% 9/22/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/22/2005 DD 09/21/05SEC ID: 9/22/2005 99441F725BROKER: LEHMAN GOVT SECS 9/22/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.630% 9/22/2005 100.0000 0.000 0.00 1,189.83 0.00 09/22/2005 DD 09/21/05SEC ID: 9/22/2005 99441F725BROKER: LEHMAN GOVT SECS 9 ;22/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO s CS FOB CAT 2 REPO REPO 03.620% 9/22/2005 100.0000 -1,900,000.000 -1,900,000.00 1,900,000.00 0.00 09/22/2005 DD 09/21/05SEC ID: 9/22/2005 99441F865BROKER: CREDIT SUISSE, NEW 9/22/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.620% 9/22/2005 100.0000 0.000 0.00 191.06 0.00 09/22/2005 DD 09/21/05SEC ID: 9/22/2005 99441F865BROKER: CREDIT SUISSE, NEW 9/22/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO s CS FOB CAT 2 REPO REPO 03.610% 9/23/2005 100.0000 -3,400,000.000 -3,400,000.00 3,400,000.00 0.00 09/23/2005 DD 09/22/05SEC ID: 9/23/2005 99441H804BROKER: CREDIT SUISSE, NEW 9/23/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.610% 9/23/2005 100.0000 0.000 0.00 340.94 0.00 09/23/2005 DD 09/22/05SEC ID: 9/23/2005 99441H804BROKER: CREDIT SUISSE, NEW 9/23/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench ·• Actual Settle Date 26 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base --- s LEHMAN CAT 1 REPO REPO 03.600% 9/23/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/23/2005 DD 09/22/05SEC ID: 9/23/2005 99441H812BROKER: LEHMAN GOVT SECS 9/23/2005 INC, NYOCSF0751 l 102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.600% 9/23/2005 100.0000 0.000 0.00 1,180.00 0.00 09/23/2005 DD 09/22/05SEC ID: 9/23/2005 99441H812BROKER: LEHMAN GOVT SECS 9/23/2005 INC, NYOCSF075 l 1102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 03.600% 9/26/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/26/2005 DD 09/23/05SEC ID: 9/26/2005 99441K450BROKER: LEHMAN GOVT SECS 9;26/2005 INC, NYOCSF075 l l l 02: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.600% 9/26/2005 100.0000 0.000 0.00 3,540.00 0.00 09/26/2005 DD 09/23/05SEC ID: 9/26/2005 99441K450BROKER: LEHMAN GOVT SECS INC, NYOCSF07511102: LIQUID OPER-PIMCO 9/25/20o5 s CS FOB CAT 2 REPO REPO 03.610% 9/26/2005 100.0000 -3,300,000.000 -3,300,000.00 3,300,000.00 0.00 09/26/2005 DD 09/23/05SEC ID: 9/26/2005 99441K492BROKER: CREDIT SUISSE, NEW 9/26/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.610% 9/26/2005 100.0000 0.000 0.00 992.75 0.00 09/26/2005 DD 09/23/05SEC ID: 9/26/2005 99441K492BROKER: CREDIT SUISSE, NEW 9/26/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO s CS FOB CAT 2 REPO REPO 03.620% 9/27/2005 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 09/27/2005 DD 09/26/05SEC ID: 9/27/2005 99441Ml34BROKER: CREDIT SUISSE, NEW 9/27/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.620% 9/27/2005 100.0000 0.000 0.00 351.94 0.00 09/27/2005 DD 09/26/05SEC ID: 9/27/2005 99441Ml34BROKER: CREDIT SUISSE, NEW 9/27/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench ·• Actual Settle Date 27 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGO00l0000 9/1/2005-9/30/2005 Status: FINAL ------Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base ---· --~ - s LEHMAN CAT 1 REPO REPO 03.620% 9/27/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/27/2005 DD 09/26/05SEC ID: 9/27/2005 99441M332BROKER: LEHMAN GOVT SECS 9/27/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.620% 9/27/2005 100.0000 0.000 0.00 1,186.56 0.00 09/27/2005 DD 09/26/05SEC ID: 9/27/2005 99441M332BROKER: LEHMAN GOVT SECS 9;27 /2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO s LEHMAN CAT 1 REPO REPO 03.650% 9/28/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 09/28/2005 DD 09/27 /05SEC ID: 9/28/2005 99441N967BROKER: LEHMAN GOVT SECS 9/28/2005 INC, NYOCSF07511102: LIQUID OPER-PIMCO IS LEHMAN CAT 1 REPO REPO 03.650% 9/28/2005 100.0000 0.000 0.00 1,196.39 0.00 09/28/2005 DD 09/27/05SEC ID: 9/28/2005 99441N967BROKER: LEHMAN GOVT SECS INC, NYOCSF07511102: LIQUID OPER-PIMCO 9 f 28f 2005 s CS FOB CAT 2 REPO REPO 03.650% 9/28/2005 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 09/28/2005 DD 09/27 /05SEC ID: 9/28/2005 99441P038BROKER: CREDIT SUISSE, NEW 9/28/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.650% 9/28/2005 100.0000 0.000 0.00 354.86 0.00 09/28/2005 DD 09/27 /05SEC ID: 9/28/2005 99441P038BROKER: CREDIT SUISSE, NEW 9/28/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO s CS FOB CAT 2 REPO REPO 03.580% 9/29/2005 100.0000 -1 ,600,000.000 -1 ,600,000.00 1,600,000.00 0.00 09/29/2005 DD 09/28/05SEC ID: 9/29/2005 99441Q838BROKER: CREDIT SUISSE, NEW 9/29/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO IS CS FOB CAT 2 REPO REPO 03.580% 9/29/2005 100.0000 0.000 0.00 159.11 0.00 09/29/2005 DD 09/28/05SEC ID: 9/29/2005 99441Q838BROKER: CREDIT SUISSE, NEW 9/29/2005 YORKOCSF07522202: LONG TERM OPER- PIMCO Workbench ·• Actual Settle Date 28 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base s LEHMAN CAT 2 REPO 03.580% 09/29/2005 9/29/2005 100.0000 -11,800,000.000 -11,800,000.00 11,800,000.00 0.00 DD 09/28/05SEC ID: 99441Q994BROKER: 9/29/2005 LEHMAN GOVT SECS INC, NYOCSF07511102:9129;2oo5 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 03.580% 09/29/2005 9/29/2005 100.0000 0.000 0.00 1,173.44 0.00 DD 09/28/0SSEC lD: 99441Q994BROKER: 9/29/2005 LEHMAN oovr SECS INC, NYOCSfl'07511102:9/29/2005 LIQUID OP&R-PIMCO s LEHMAN CAT 2 REPO 03.520% 09/30/2005 9/30/2005 100.0000 -10,400,000.000 -10,400,000.00 10,400,000.00 0.00 D-? 09/29/0SSEC ID: 9944l85298R~KER: 9/30/2005 J..F-1::l.MAN GOV[ SECS INC, NYOCSF0151 l 102: 9130;2oo5 LIQUID OPER-PTMCO IS LEHMAN CAT 2 REPO 03.520% 09/30/2005 9/30/2005 100.0000 0.000 0.00 1,016.89 0.00 DD 09/29/05SEC ID: 99441S.529BROKER: 9/30/2005 LEHMAN GOVf SECS INC, NYOCSF075 11102: 913012005 LIQUJD OPER-PIM.CO s DREYFUS TREASURY CASH MGMTSEC ID: 9/2/2005 1.0000 -5,943,990.890 -5,943,990.89 5,943,990.89 0.00 996085247OCSF07522202: LONG TERM 9/2/2005 OPER-PIMCO 9/2/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/6/2005 1.0000 -11,885,785.870 -11,885,785.87 11,885,785.87 0.00 996085247OCSF07511102: LIQUID OPER-9/6/2005 PIMCO 9/6/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/8/2005 1.0000 -579, 172.460 -579, 172.46 579,172.46 0.00 996085247OCSF07522202: LONG TERM 9/8/2005 OPER-PIMCO 9/8/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/12/2005 1.0000 -96,029.330 -96,029.33 96,029.33 0.00 996085247OCSF0751 l 102: LIQUID OPER-9/12/2005 PIMCO 9/12/2005 Workbench ·• Actual Settle Date 29 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSGO00l0000 9/1/2005-9/30/2005 Status: FINAL -- Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base s DREYFUS TREASURY CASH MGMTSEC ID: 9/16/2005 1.0000 -107,372.210 -107,372.21 107,372.21 0.00 996085247OCSF0751 l 102: LIQUID OPER-9/16/2005 PIMCO 9/16/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/20/2005 1.0000 -11,797,856.670 -11,797,856.67 11,797,856.67 0.00 996085247OCSF07511102: LIQUID OPER-9/20/2005 PIMCO 9/20/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/21/2005 1.0000 -4, 903,246.330 -4,903,246.33 4,903,246.33 0.00 996085247OCSF07522202: LONG TERM 9/21/2005 OPER-PIMCO 9/21/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/22/2005 1.0000 -479,723.640 -479,723.64 479,723.64 0.00 996085247OCSF07522202: LONG TERM 9/22/2005 OPER-PIMCO 9/22/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/22/2005 1.0000 -395,386.460 -395,386.46 395,386.46 0.00 996085247OCSF07511102: LIQUID OPER-9/22/2005 PIMCO 9/22/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/28/2005 1.0000 -1,532,736.480 -1,532,736.48 1,532,736.48 0.00 996085247OCSF07522202: LONG TERM 9/28/2005 OPER-PIMCO 9/28/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/29/2005 1.0000 -97,819.390 -97,819.39 97,819.39 0.00 99608524 7OCSF0751 l 102: LIQUID OPER-9/29/2005 PIMCO 9/29/2005 s DREYFUS TREASURY CASH MGMTSEC ID: 9/29/2005 1.0000 -100,159.760 -100,159.76 100,159.76 0.00 996085247OCSF07522202: LONG TERM 9/29/2005 OPER-PIMCO 9/29/2005 Workbench ·> Actual Settle Date 30 OCSD-CONSOLIDATED -OCSG000lO000 Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 s s s Tran Type Description Trade Date Settle Date Reported Date DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07511102: LIQUID OPER- PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 996085247OCSF07522202: LONG TERM OPER-PIMCO BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 996087094OCSF07522202: LONG TERM OPER-PIMCO 9/30/2005 9/30/2005 9/30/2005 9/30/2005 9/30/2005 9/30/2005 9/26/2005 9/26/2005 9/26/2005 Local Price Base Price Base Ex Rate 1.0000 1.0000 1.0000 Shares/Par -3,218.270 -279,043. 970 -12,797.280 Cost Base -3,218.27 -279,043.97 -12,797.28 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: -304,414,339.010 -304,331,926.10 TOTAL CASH & CASH EQUIVALENTS BASE: s FIXED INCOME SECURITIES U.S. DOLLAR FNMA POOL #0357328 5.000% 01/01/2018 DD 01/01/03SEC ID: 31376J4M8BROKER: MORGAN STANLEY & CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL #0357328 5.000% 01/01/2018 DD 01/01/03SEC ID: 31376J4M8BROKER: MORGAN STANLEY & CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0357430 5.000% 09/01/2018 DD 09/01/03SEC ID: 31376KA71BROKER: MORGAN STANLEY & CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO ., Actual Settle Date 8/26/2005 9/19/2005 9/1/2005 8/26/2005 9/19/2005 9/1/2005 8/26/2005 9/19/2005 9/1/2005 -304,414,339.010 -304,331,926.10 100.2266 -19,892.180 -20,488.96 100.2266 0.000 0.00 100.2266 -971,072.310 -981,996.87 31 ReportID: EWBA09 Base Currency: USD Status: FINAL Amount Base 3,218.27 279,043.97 12,797.28 304,393,242.36 304,393,242.36 19,937.24 49.73 973,272.39 Net Gain/Loss Base 0.00 0.00 0.00 -0.12 -0.12 -551. 72 0.00 -8,724.48 Workbench Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IS FNMA POOL #0357430 5.000% 8/26/2005 100.2266 0.000 0.00 2,427.68 0.00 09/01/2018 DD 09/0l/03SEC ID: 9/19/2005 31376KA71BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0555453 5.000% 8/26/2005 100.2266 -26,581.270 -26,921.85 26,641.49 -280.36 05/01/2018 DD 04/01/03SEC ID: 9/19/2005 31385XBW6BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL #0555453 5.000% 8/26/2005 100.2266 0.000 0.00 66.45 0.00 05/01/2018 DD 04/01/03SEC ID: 9/19/2005 31385XBW6BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0685665 5.000% 8/26/2005 100.2266 -24, 132.330 -24,856.30 24,187.01 -669.29 02/01/2018 DD 02/01/03SEC ID: 9/19/2005 31400EW22BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL #0685665 5.000% 8/26/2005 100.2266 0.000 0.00 60.33 0.00 02/01/2018 DD 02/01/03SEC ID: 9/19/2005 31400EW22BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0697026 5.000% 8/26/2005 100.2266 -18,033.800 -18,574.83 18,074.65 -500.18 05/01/2018 DD 04/01/03SEC ID: 9/19/2005 31400TLF2BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OP ER-PIM CO IS FNMA POOL #0697026 5.000% 8/26/2005 100.2266 0.000 0.00 45.08 0.00 05/01/2018 DD 04/0l/03SEC ID: 9/19/2005 31400TLF2BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0709963 5.000% 8/26/2005 100.2266 -17,255.590 -17,476.69 17,294.68 -182.01 06/01/2018 DD 06/0l/03SEC ID: 9/19/2005 31401JWY0BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO Workbench ·> Actual Settle Date 32 Transaction Detail ReportlD: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLJDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IS FNMA POOL #0709963 5.000% 8/26/2005 100.2266 0.000 0.00 43.14 0.00 06/01/2018 DD 06/01/03SEC ID: 9/19/2005 31401JWY0BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0713344 5.000% 8/26/2005 100.2266 -11,771.520 -12,124.65 11,798.19 -326.46 06/01/2018 DD 06/01/03SEC ID: 9/19/2005 31401NP52BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL #0713344 5.000% 8/26/2005 100.2266 0.000 0.00 29.43 0.00 06/01/2018 DD 06/01/03SEC ID: 9/19/2005 31401NP52BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0797160 5.000% 8/26/2005 100.2266 -949,386.060 -962,291. 78 951,537.02 -10,754.76 12/01/2019 DD 12/01/04SEC ID: 9/19/2005 31405RTR7BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO IS FNMA POOL #0797160 5.000% 8/26/2005 100.2266 0.000 0.00 2,373.47 0.00 12/01/2019 DD 12/01/04SEC ID: 9/19/2005 31405RTR7BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s FNMA POOL #0823787 5.000% 8/26/2005 100.2266 -962, 173.490 -961, 121.11 964,353.41 3,232.30 05/01/2020 DD 05/01/05SEC ID: 9/19/2005 31406YF47BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OP ER-PIM CO IS FNMA POOL #0823787 5.000% 8/26/2005 100.2266 0.000 0.00 2,405.43 0.00 05/01/2020 DD 05/01/05SEC ID: 9/19/2005 31406YF47BROKER: MORGAN STANLEY & 9/1/2005 CO INC, NYOCSF07522202: LONG TERM OPER-PIMCO s US TREASURY NOTES 4.250% 08/15/2013 9/19/2005 100.4688 -2, 100,000.000 -2, 105,699.39 2,109,843.75 4,144.36 DD 08/15/03SEC .ill: 912828B82BR~ICER: 9/20/2005 l,E!-J MAN GOVT SECS lNC, NYOCSF0 t522202: 9/ 1912005 LONG TERM OPER-PIMCO Workbench ·• Actual Settle Date 33 Transaction Detail Report ID: 0 EWBA09 Reported by Transaction Category Base currency: uso OCSD-CONSOLIDATED-OCSG000l0O00 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base -------- IS US TREASURY NOTES 4.250% 08/15/2013 9/19/2005 100.4688 0.000 0.00 8,730.98 0.00 DD 08/ 15/03SEC ID: 912828BH2BROKER: 9/20/2005 LEHMAN GOVT SECS INC, NYOCSF07522202: 9 / l 9 /2005 LONG TERM OPER-PIMCO S US TREASURY NOTES 3.375% 12/15/2008 9/21/2005 98.2188 -10,900,000.000 -10,644,845.28 10,705,843.75 60,998.47 DD 12/ 15/03SEC ID: 912828BT6BROKER: 9/22/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9;21;2o05 LONG TERM OPER-PIMCO IS USTREASURYNOTES3.375%12/15/2008 9/21/2005 98.2188 0.000 0.00 99,507.17 0.00 DD 12/ 15/03SEC ID: 912828BT6BROKER: 9/22/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9/2l/2005 LONG TERM OPER-PIMCO S US TREASURY NOTES 2.750% 06/30/2006 9/7/2005 99.2188 -9,500,000.000 -9,487,380.07 9,425,781.25 -61,598.82 DD 06/30/04SEC ID: 912828CM0BROKER: 9/8/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 91712005 LONG TERM OPER-PIMCO JS US TREASURY NOTES 2.750% 06/30/2006 9/7/2005 99.2188 0.000 0.00 49,694.29 0.00 DD 06/30/04SEC ID: 912828CMOBROKER: 9/8/2005 GOLDMAN SACHS & 00, NYOCSF07522202: 9;7 /2005 LONG TERM OPER-PJJIIICO S US TREASURY NOTES 2. 750% 07/31/2006 9/14/2005 99.1250 -5,000,000.000 -5,010,604.84 4,956,250.00 -54,354.84 DD 07/31/04SEC ID: 912828CQ1BROKER: 9/15/2005 MERRILL LYNCH PIERCE FENNER SMITH 1NC 9/ 14;2oo5 NYOCSF07522202: LONG TERM OPER-PIMCO IS US TREASURY NOTES 2.750% 07/31/2006 9/14/2005 99.1250 0.000 0.00 17,187.50 0.00 DD 07/31/04SEC ID: 912828CQ1BROKER: 9/15/2005 MERR[LL LYNCH PIERCE FENNER SMJTH l.NC 9/14/2005 NYOCSF07522202: LONG TERM OPER-PlM CO S US TREASURY NOTES 2.750% 07/31/2006 9/20/2005 99.0625 -14,000,000.000 -13,927,531.83 13,868,750.00 -58,781.83 DD 07/31/04SEC ID: 912828CQ1BROKER: 9/21/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO Workbench ·• Actual Settle Date 34 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED · OCSG000l0000 9 / l / 2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IS US TREASURY NOTES 2.750% 07/31/2006 9/20/2005 99.0625 0.000 0.00 54,402.17 0.00 DD 07/31/04SEC !D: 9 12828CQ1BR01<ER: 9/21/2005 CREDIT SUISSE, NEW YORKOCSF0752.2202: 9 ;20/2005 LONG TERM OPER-PIM:CO S US TREASURY NOTES 3.500% 12/15/2009 9/20/2005 97.8750 -13,920,000.000 -13,733,493.75 13,624,200.00 -109,293.75 DD 12/ 15/04-SEC ID: 912828 D~W~OK£R: 9/21/2005 GOLDMAN SACHS & CO, NYOCSF0t522202: 912012005 LONG TERM OPER-PIMCO IS US TREASURY NOTES 3.500% 12/15/2009 9/20/2005 97.8750 0.000 0.00 130,452.46 0.00 DD 12/ 15/04SE,C ID: 912828DE7B~OKER: 9/21/2005 GOJ.,O M/1.N SACHS & CO, NYOCSF0·1522202: 9;20;2005 LONG TERM OPER-PIMCO S US TREASURY NOTES 4.000% 03/15/2010 9/2/2005 100.7891 -15,000,000.000 -14,928,462.05 15,118,359.38 189,897.33 DD 03/ 15/05SEC ID: 912828DP2BROKER: 9/6/2005 BARCLAYS CAPITAL INC, NEW YORKOCSF07522202: LONG TERM OPER-9/2 /2oo5 PIMCO IS US TREASURY NOTES 4.000% 03/15/2010 9/2/2005 100.7891 0.000 0.00 285,326.09 0.00 DD 03/ 15/05SEC ID: 912828DP2BROKER: 9/6/2005 BARCLAYS CAPITAL INC, NEW YORKOCSF07522202: LONG TERM OPER-9/2/2oo5 PIMCO S US TREASURY NOTES 4.000% 03/15/2010 9/6/2005 100.5069 -15,000,000.000 -15,001,166.59 15,076,030.80 74,864.21 DD 03/15/05SEC ID: 912828DP2BROKER: 9/21/2005 UBS SECURITIES LLC, STAMFORDOCSF07522202: LONG TERM 9/6/2005 OPER-PIMCO IS US TREASURY NOTES 4.000% 03/15/2010 9/6/2005 100.5069 0.000 0.00 9,944.75 0.00 DD 03/15/05SEC ID: 912828DP2BROKER: 9/21/2005 UBS SECURITIES LLC, STAMFORDOCSF07522202: LONG TERM 9 /6/2005 OPER-PIMCO S US TREASURY NOTES 3.750% 03/31/2007 9/20/2005 99.6875 -11,200,000.000 -11,165,662.54 11,165,000.00 -662.54 DD 03/31/05SEC ID: 912828DQ0BROKER: 9/21/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 9;20/2005 LONG TERM OPER-PIMCO Workbench ·> Actual Settle Date 35 OCSD-CONSOLIDATED -OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 Tran Trade Date Settle Date Reported Date Type Description IS s IS s IS US TREASURY NOTES 3.750% 03/31/2007 9/20/2005 DD 03/31/05SEC ID: 912828DQ0BROKER: 9/21/2005 CREDIT SUISSE, NEW YORKOCSF07522202: 912012005 LONG TERM OPER-PIMCO US TREASURY NOTES 3.500°/i, 05/31/2007 DD 05/31/05SEC ID: 912828DW7BROKER: GOLDMAN SACHS & CO, NYOCSF07522202: LONG TERM OPER-PIMCO US TREASURY NOTES 3.500% 05/31/2007 DD 05/31/05SEC ID: 912828DW7BROKER: GOLDMAN SACHS & CO, NYOCSF07522202: LONG TERM OPER-PIMCO 9/20/2005 9/21/2005 9/20/2005 9/20/2005 9/21/2005 9/20/2005 US TREASURY NOTES 3.625% 06/30/2007 9/20/2005 DD 06/30/05SEC ID: 912828DY3BROKER: 9/21/2005 GOLDMAN SACHS & CO, NYOCSF07522202: 9/20/2005 LONG TERM OPER-PIMCO U S TRIDASURY NOTES 3.625% 06/30/2007 DD 06/30/0SSEC ID: 912828DY3 BROKER: GOLDMAN SACHS & CO, NYOCSF07522-202: LONG TERM OPER-PlMCO 9/20/2005 9/21/2005 9/20/2005 Local Price Base Price Base Ex Rate 99.6875 99.2188 99.2188 99.3750 99.3750 TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S. DOLLAR • Actu al Settle Date TOTAL SALES BASE: 36 Shares/Par 0 .000 -11 ,000,000.000 0.000 -20,000,000.000 0.000 -130,620,298.550 -130,620,298.550 -435,034,637 .560 Cost Base 0.00 -10,902, 179.20 0.00 -19,864,857.19 0 .00 -129,797,735.77 -129,797,735.77 -434,129,661.87 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base 199,672.13 10,914,062.50 118,866.12 19,875,000.00 163,519.02 130,991,020.93 130,991,020.93 435,384,263.29 Net Gain/Loss Base 0.00 11,883.30 0.00 10,142.81 0.00 48,481.74 48,481.74 48,481.62 Workbench Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD WMP/HUNTOON PAIGE #000-11150 7.500%, 9/1/2005 100.0000 -890.500 -871.16 890.50 19.34 12/01/2030 DD 10/21/99SEC ID: 9/1/2005 302998GE3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/29/2005 * PDC FHLMC MULTICLASS MTG SER E3 A VAR RT 8/1/2005 100.0000 13,104.100 13,118.06 -13,104.10 13.96 08/15/2032 DD 12/01/97SEC ID: 8/1/2005 3133TCE95OCSF07522202: LONG TERM 9/1/2005 OP ER-PIM CO 9/15/2005 * PD FHLMC MULTICLASS MTG SER E3 A VAR RT 8/1/2005 100.0000 -13,104.750 -13,118.71 13,104.75 -13.96 08/15/2032 DD 12/01/97SEC ID: 8/1/2005 3133TCE95OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/16/2005 * PD FHLMC MULTICLASS MTG SER E3 A VAR RT 9/1/2005 100.0000 -12,151.150 -12,164.09 12,151.15 -12.94 08/15/2032 DD 12/01 /97SEC ID: 9/1/2005 3133TCE95OCSF'07522202: LONG TERM 9/1/2005 OPER-PIMCO PD FHLMC GROUP #78-6064 6.384% 9/1/2005 100.0000 -2,047.050 -1,997.15 2,047.05 49.90 01/01/2028 DD 12/01/97SEC ID: 9/1/2005 31348SWZ3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO PD FNMA POOL #0254510 5.000% 9/1/2005 100.0000 -13,658.530 -14,068.29 13,658.53 -409.76 11/01/2017 DD 10/0l/02SEC ID: 9/1/2005 31371KVB4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0254631 5.000% 9/1/2005 100.0000 -2,479.450 -2,553.83 2,479.45 -74.38 02/01/2018 DD 01/01/03SEC ID: 9/1/2005 31371KY47OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0254760 5.000% 9/1/2005 100.0000 -2, 186.440 -2,252.03 2,186.44 -65.59 06/01/2018 DD 05/01/03SEC ID: 9/1/2005 31371K5V9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench • Actual Settle Date 37 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED • OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0254866 5.000% 9/1/2005 100.0000 -1,064.990 -1,096.94 1,064.99 -31.95 09/01/2018 DD 08/0l/03SEC ID: 9/1/2005 31371LCB3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0254907 5.000% 9/1/2005 100.0000 -8, 164.160 -8, 164.16 8,164.16 0.00 10/01/2018 DD 09/01/03SEC ID: 9/1/2005 31371LDL0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0254953 5.000% 9/1/2005 100.0000 -5, 742.450 -5,816.03 5,742.45 -73.58 11/01/2018 DD 10/0l/03SEC ID: 9/1/2005 31371LE210CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0254987 5.000% 9/1/2005 100.0000 -11,695.010 -11,844.85 11,695.01 -149.84 12/01/2018 DD 11/0l/03SEC ID: 9/1/2005 31371LF46OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0323980 6.000% 9/1/2005 100.0000 -3,059.130 -3,193.92 3,059.13 -134.79 04/01/2014 DD 09/01/99SEC ID: 9/1/2005 31374T2M0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0357328 5.000% 9/1/2005 100.0000 -322.160 -331.82 322.16 -9.66 01/01/2018 DD 01/01/03SEC ID: 9/1/2005 31376J4M8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0357430 5.000% 9/1/2005 100.0000 -26,487 .270 -26,785.25 26,487.27 -297.98 09/01/2018 DD 09/0l/03SEC ID: 9/1/2005 31376KA710CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0456482 6.000% 9/1/2005 100.0000 -1,265.750 -1,321.52 1,265.75 -55.77 02/01/2014 DD 02/01/99SEC ID: 9/1/2005 31381CCT2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 38 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss I Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0509649 6.000% 9/1/2005 100.0000 -815.650 -851.59 815.65 -35.94 09/01/2014 DD 09/01/99SEC ID: 9/1/2005 31383QEW0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0535451 6.000% 9/1/2005 100.0000 -2,534.290 -2,645.96 2,534.29 -111.67 06/01/2015 DD 07 /01/00SEC ID: 9/1/2005 31384VZQ8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0555363 5.000% 9/1/2005 100.0000 -5, 717.340 -5,888.86 5,717.34 -171.52 04/01/2018 DD 03/01/03SEC ID: 9/1/2005 31385W5Y10CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0555453 5.000% 9/1/2005 100.0000 -601.250 -608.95 601.25 -7.70 05/01/2018 DD 04/01/03SEC ID: 9/1/2005 31385XBW6OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 ' PD FNMA POOL #0555545 5.000% 9/1/2005 100.0000 -5,016.020 -5,166.50 5,016.02 -150.48 06/01/2018 DD 05/01/03SEC ID: 9/1/2005 31385XES2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0555621 5.000% 9/1/2005 100.0000 -14,721.870 -14,887.49 14,721.87 -165.62 07/01/2018 DD 06/01/03SEC ID: 9/1/2005 31385XG68OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0681309 5.000% 9/1/2005 100.0000 -6,922.370 -7,130.04 6,922.37 -207.67 02/01/2018 DD 02/01/03SEC ID: 9/1/2005 31391Y3S4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0681334 5.000% 9/1/2005 100.0000 -932.850 -960.84 932.85 -27.99 02/01/2018 DD 01/01/03SEC ID: 9/1/2005 31391Y4TlOCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ·> Actual Settle Date 39 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED · OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL I ------ Net Gain/Loss 1 Trade Date Local Price Tran Settle Date Base Price Cost Amount Type Description Reported Date Base Ex Rate Shares/Par Base Base Base -- PD FNMA POOL #0684798 5.500% 9/1/2005 100.0000 -12,344.930 -12,334.32 12,344.93 10.61 03/01/2033 DD 03/0l/03SEC ID: 9/1/2005 31400DX310CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0684908 5.000% 9/1/2005 100.0000 -8,723.500 -8,835.27 8,723.50 -111.77 06/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400D3R10CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0685200 5.000% 9/1/2005 100.0000 -4,412.950 -4,469.49 4,412.95 -56.54 03/01/2018 DD 03/01/03SEC ID: 9/1/2005 31400EGH7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0685665 5.000% 9/1/2005 100.0000 -643.950 -663.27 643.95 -19.32 02/01/2018 DD 02/01/03SEC ID: 9/1/2005 31400EW22OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0686318 5.000% 9/1/2005 100.0000 -4,930.280 -5,078.19 4,930.28 -147.91 03/01/2018 DD 03/0l/03SEC JD: 9/1/2005 31400FPB7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0688739 5.000% 9/1/2005 100.0000 -511.880 -527.24 511.88 -15.36 06/01/2018 DD 06/01/03SEC JD: 9/1/2005 31400JEL9OCSF07522202: LONG TERM 9/1/2005 OPER-PJMCO 9/26/2005 * PD FNMA POOL #0689859 5.000% 9/1/2005 100.0000 -405.130 -410.32 405.13 -5.19 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400KMG8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0693834 5.000% 9/1/2005 100.0000 -11,809.060 -12,163.33 11,809.06 -354.27 03/01/2018 DD 03/01/03SEC ID: 9/1/2005 31400PY74OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 40 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0695852 5.000% 9/1/2005 100.0000 -3,876.460 -3,992.75 3,876.46 -116.29 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400S8V0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0695889 5.000% 9/1/2005 100.0000 -8,405.730 -8,657.90 8,405.73 -252.17 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400SC23OCSF07522202: LONG TERM 9/1/2005 OP ER-PIM CO 9/26/2005 * PD FNMA POOL #0697026 5.000% 9/1/2005 100.0000 -426.010 -438.79 426.01 -12. 78 05/01/2018 DD 04/01/03SEC ID: 9/1/2005 31400TLF2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0702210 5.000% 9/1/2005 100.0000 -4, 180.140 -4,305.54 4,180.14 -125.40 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31401ADP9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0702328 5.000% 9/1/2005 100.0000 -2,072.710 -2,099.27 2,072.71 -26.56 05/01/2018 DD 04/01/03SEC ID: 9/1/2005 31401AHD2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0709148 5.000% 9/1/2005 100.0000 -3,685.250 -3,795.81 3,685.25 -110.56 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401HZM7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0709360 5.000% 9/1/2005 100.0000 -25,504. 790 -25,831.57 25,504.79 -326.78 07/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JB56OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0709826 5.000% 9/1/2005 100.0000 -1,880.920 -1,905.02 1,880.92 -24.10 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JSP4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench '' Actual Settle Date 41 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG0O0 10000 9/1/2005-9/30/2005 Status: FINAL I Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss 1 Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0709917 5.000% 9/1/2005 100.0000 -2,463.100 -2,494.66 2,463.10 -31.56 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JVJ4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0709963 5.000% 9/1/2005 100.0000 -83.740 -84.81 83.74 -1.07 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JWY0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0710235 5.000% 9/1/2005 100.0000 -15,145.700 -15,600.07 15,145.70 -454.37 06/01/2018 DD 06/0l/03SEC ID: 9/1/2005 31401KBC8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0713344 5.000% 9/1/2005 100.0000 -526.530 -542.33 526.53 -15.80 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401NP52OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 ., PD FNMA POOL #0713365 5.000% 9/1/2005 100.0000 -4.084.540 -4, 136.87 4,084.54 -52.33 07/01/2018 DD 07 /01/03SEC ID: 9/1/2005 31401NQS10CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0720319 5.000% 9/1/2005 100.0000 -14,951.260 -15,142.82 14,951.26 -191.56 07/01/2018 DD 07/01/03SEC ID: 9/1/2005 31401 WG45OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0720369 5.000% 9/1/2005 100.0000 -38,946.940 -40,115.35 38,946.94 -1,168.41 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401WJN0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0721629 5.000% 9/1/2005 100.0000 -7,636.780 -7,865.88 7,636.78 -229.10 07/01/2018 DD 06/0l/03SEC ID: 9/1/2005 31401XVW4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 42 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED · OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base ---- PD FNMA POOL #0723487 5.000% 9/1/2005 100.0000 -857.120 -866.76 857.12 -9.64 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31402AXQ4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0725530 5.000°/4, 9/1/2005 100.0000 -48,591.490 -49,252.03 48,591.49 -660.54 06/01/2019 DD 05/01/04SEC ID: 9/1/2005 31402DA75OCSF07522202: LONG TERM 9/1/2005 OP ER-PIM CO 9/26/2005 * PD FNMA POOL #0729601 5.000% 9/1/2005 100.0000 -11,077.360 -11,219.29 11,077.36 -141.93 07/01/2018 DD 07 /01/03SEC ID: 9/1/2005 31402HRW3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0732873 5.000% 9/1/2005 100.0000 -211.700 -214.41 211. 70 -2.71 11/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402MFN5OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0735227 5.500% 9/1/2005 100.0000 -19,552.080 -19,717.05 19,552.08 -164.97 02/01/2035 DD 0l/01/05SEC ID: 9/1/2005 31402QYY10CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0735856 5.000% 9/1/2005 100.0000 -3,144.800 -3, 175.27 3,144.80 -30.47 08/01/2020 DD 08/01/05SEC ID: 9/1/2005 31402RQH5OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0737130 5.000% 9/1/2005 100.0000 -2,698.030 -2,732.60 2,698.03 -34.57 10/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402S4P9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0738211 5.000% 9/1/2005 100.0000 -8,627.600 -8,738.14 8,627.60 -110.54 10/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402UDQ2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench * Actual Settle Date 43 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL - Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0738487 5.000% 9/1/2005 100.0000 -2,823.460 -2,859.64 2,823.46 -36.18 10/01/2018 DD 10/0l/03SEC ID: 9/1/2005 31402UNC2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0740457 5.000% 9/1/2005 100.0000 -25,514.710 -25,861.55 25,514.71 -346.84 10/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402WTN8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0740471 5.000% 9/1/2005 100.0000 -2,979.020 -3,017.19 2,979.02 -38.17 10/01/2018 DD 10/0l/03SEC JD: 9/1/2005 31402WT40OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0740748 5.000% 9/1/2005 100.0000 -18,868.240 -19,109.99 18,868.24 -241. 75 10/01/2018 DD 11/01/03SEC ID: 9/1/2005 31402W5H7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0743868 5.000% 9/1/2005 100.0000 -871.500 -882.67 871.50 -11.17 11/01/2018 DD 10/01/03SEC ID: 9/1/2005 31403BMR10CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0744008 5.000% 9/1/2005 100.0000 -4,267.950 -4,322.63 4,267.95 -54.68 07/01/2018 DD 09/01/03SEC JD: 9/1/2005 31403BR54OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0744316 5.000% 9/1/2005 100.0000 -3,560.550 -3,606.17 3,560.55 -45.62 09/01/2018 DD 09/0l/03SEC JD: 9/1/2005 31403B3Z4OCSF07522202: LONG TERM 9/1/2005 OPER-PJMCO 9/26/2005 * PD FNMA POOL #0747914 5.000% 9/1/2005 100.0000 -10,105.090 -10,234.56 10,105.09 -129.47 11/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403F3X0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 44 . I Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL I ------, Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss J Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0748400 5.000% 9/1/2005 100.0000 -3,100.600 -3,140.33 3,100.60 -39.73 08/01/2018 DD 09/01/03SEC ID: 9/1/2005 31403GNR9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 > PD FNMA POOL #0748899 5.000% 9/1/2005 100.0000 -26,948.500 -27,293.78 26,948.50 -345.28 12/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403G7L0OCSF07522202: LONG TERM 9/1/2005 OP ER-PIM CO 9/26/2005' PD FNMA POOL #0750377 5.000% 9/1/2005 100.0000 -37,604.280 -38,086.08 37,604.28 -481.80 11/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403JUA2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0750380 5.000% 9/1/2005 100.0000 -21,360.100 -21,633.78 21,360.10 -273.68 11/01/2018 DD ll/01/03SEC ID: 9/1/2005 31403JUD6OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0750445 5.000% 9/1/2005 100.0000 -619.990 -627.93 619.99 -7.94 11/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403JWE2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0751960 5.000% 9/1/2005 100.0000 -4,125.730 -4, 178.59 4,125.73 -52.86 12/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403LMH1OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0753425 5.000% 9/1/2005 100.0000 -8,428.980 -8,526.44 8,428.98 -97.46 11/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403NA23OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0755165 5.000% 9/1/2005 100.0000 -15,511.420 -15,710.16 15,511.42 -198.74 12/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403Q6A3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench '' Actual Settle Date 45 Transaction Detail ReportID: EWBA09 -1 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED • OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0756372 5.000% 9/1/2005 100.0000 -4, 132.290 -4,180.07 4,132.29 -47.78 11/01/2018 DD 11/0l/03SEC ID: 9/1/2005 31403SJR8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0784251 5.000% 9/1/2005 100.0000 -129,147.340 -130,902.94 129,147.34 -1,755.60 11/01/2019 DD l 1/01/04SEC ID: 9/1/2005 31405BH46OCSF07522202: LONG TERM 9/1/2005 OP ER-PIM CO 9/26/2005 * PD FNMA POOL #0789670 5.000% 9/1/2005 100.0000 -18,535.110 -18, 787.07 18,535.11 -251.96 12/01/2019 DD 12/0l/04SEC ID: 9/1/2005 31405HJP4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0792432 5.000% 9/1/2005 100.0000 -11,214.020 -11,366.46 11,214.02 -152.44 10/01/2019 DD 10/0l/04SEC ID: 9/1/2005 31405LLM9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0792437 5.000% 9/1/2005 100.0000 -172,439.800 -172,439.80 172,439.80 0.00 10/01/2019 DD 10/01/04SEC ID: 9/1/2005 31405LLS6OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0794195 5.000% 9/1/2005 100.0000 -39,298.910 -39,833.13 39,298.91 -534.22 11/01/2019 DD 11/01/04SEC ID: 9/1/2005 31405NKG9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0797160 5.000% 9/1/2005 100.0000 -264,012.690 -267,601.61 264,012.69 -3,588.92 12/01/2019 DD 12/01/04SEC IO: 9/1/2005 31405RTR7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0797408 5.000% 9/1/2005 100.0000 -3,026.730 -3,067.87 3,026.73 -41.14 12/01/2019 DD 12/01/04SEC IO: 9/1/2005 31405R3R5OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 46 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD FNMA POOL #0797414 5.000% 9/1/2005 100.0000 -3,611.270 -3,660.36 3,611.27 -49.09 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31405R3X2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0800370 5.000% 9/1/2005 100.0000 -1,510.950 -1,509.30 1,510.95 1.65 12/01/2019 DD 11/01/04SEC ID: 9/1/2005 31405VFK8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0800998 5.500% 9/1/2005 100.0000 -332.430 -332.14 332.43 0.29 11/01/2034 DD 11/01/04SEC ID: 9/1/2005 31405V3F2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0803923 5.000% 9/1/2005 100.0000 -13,006.520 -13,183.33 13,006.52 -176.81 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31406AD410CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0807711 5.000% 9/1/2005 100.0000 -79,445.900 -80,525.87 79,445.90 -1,079.97 01/01/2020 DD 0l/01/05SEC ID: 9/1/2005 31406EKY9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0808933 5.500% 9/1/2005 100.0000 -341.950 -341.66 341.95 0.29 01/01/2035 DD 0l/01/05SEC ID: 9/1/2005 31406FV24OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0809350 5.500% 9/1/2005 100.0000 -3,612.140 -3,609.04 3,612.14 3.10 12/01/2034 DD 01/01/05SEC ID: 9/1/2005 31406GEX3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0814930 5.500% 9/1/2005 100.0000 -391.490 -391.15 391.49 0.34 04/01/2035 DD 04/01/05SEC ID: 9/1/2005 31406NLK8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * Workbench ., Actual Settle Date 47 Transaction Detail ReportID: EWBA09 I OCSD-CONSOLIDATED -OCSG000l0000 Reported by Transaction Category Base Currency: USD 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base ---- PD FNMA POOL #0815923 5.500% 9/1/2005 100.0000 -371.370 -371.05 371.37 0.32 03/01/2035 DD 03/01/05SEC ID: 9/1/2005 31406PPG8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD FNMA POOL #0816246 5.000% 9/1/2005 100.0000 -8, 132.490 -8, 123.60 8,132.49 8.89 03/01/2020 DD 03/0l/05SEC ID: 9/1/2005 31406PZK8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0819566 5.500% 9/1/2005 100.0000 -5,540.940 -5,536.18 5,540.94 4.76 04/01/2035 DD 04/01/05SEC ID: 9/1/2005 31406TQT10CSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 k PD FNMA POOL #0822731 5.500% 9/1/2005 100.0000 -6,672.050 -6,666.32 6,672.05 5.73 05/01/2035 DD 05/01/05SEC ID: 9/1/2005 31406XA85OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0823232 5.500% 9/1/2005 100.0000 -375.490 -375.17 375.49 0.32 06/01/2035 DD 05/01/05SEC ID: 9/1/2005 31406XSV5OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 • PD FNMA POOL #0823787 5.000% 9/1/2005 100.0000 -7,678.570 -7,670.17 7,678.57 8.40 05/01/2020 DD 05/01/05SEC ID: 9/1/2005 31406YF47OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/26/2005 * PD GNMA POOL #0421389 6.500% 9/1/2005 100.0000 -22.770 -23.90 22.77 -1.13 04/15/2026 DD 04/01/96SEC ID: 9/1/2005 36206UC23OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * PD GNMA POOL #0449851 6.500% 9/1/2005 100.0000 -26.770 -28.10 26.77 -1.33 01/15/2028 DD 0l/0l/98SEC ID: 9/1/2005 36208FWL0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * Workbench ·• Actual Settle Date 48 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base PD GNMA POOL #0466845 6.500% 9/1/2005 100.0000 -49.270 -51. 71 49.27 -2.44 06/15/2028 DD 06/0l/98SEC ID: 9/1/2005 36209BTA6OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005* PD GNMA POOL #0468052 6.500% 9/1/2005 100.0000 -117.030 -122.83 117.03 -5.80 07/15/2028 DD 07/01/98SEC ID: 9/1/2005 36209C5M4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * PD GNMA POOL #0476041 6.500% 9/1/2005 100.0000 -4,385.560 -4,595.93 4,385.56 -210.37 06/15/2028 DD 06/01/98SEC ID: 9/1/2005 36209MZE7OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * PD GNMA POOL #0478626 6.500% 9/1/2005 100.0000 -189.230 -198.31 189.23 -9.08 01/15/2029 DD 01/01/99SEC ID: 9/1/2005 36209QVT9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * PD GNMA POOL #0480598 6.500% 9/1/2005 100.0000 -41.110 -43.08 41.11 -1.97 10/15/2028 DD 10/01/98SEC ID: 9/1/2005 36209S3F6OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * PD GNMA POOL #0512235 6.500% 9/1/2005 100.0000 -8.340 -8.75 8.34 -0.41 11/15/2029 DD ll/01/99SEC ID: 9/1/2005 36211GBC6OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005 * PD GNMA POOL #0514326 6.500% 9/1/2005 100.0000 -197.880 -207.37 197.88 -9.49 07/15/2029 DD 07/01/99SEC ID: 9/1/2005 362 l 1JLF2OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/15/2005* PD GNMA II POOL #0080023 VAR RT 12/20/20269/ 1/2005 100.0000 -8, 164.590 -8,299.82 8,164.59 -135.23 DD 12/01/96SEC ID: 9/1/2005 36225CI\Z9OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 * Workbench • Actual Settle Date 49 Transaction Detail Report ID: 0EWBA09 Reported by Transaction Category Base Currency: USO OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base -· -~ PD GNMA II POOL #080088M 7.375% 9/1/2005 100.0000 -336.250 -343.61 336.25 -7.36 06/20/2027 DD 06/01/97SEC ID: 9/1/2005 36225CC20OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 • PD GNMA II POOL #0080395 VAR RT 9/1/2005 100.0000 -6,459.400 -6,400.86 6,459.40 58.54 04/20/2030 DD 04/01/00SEC ID: 9/1/2005 36225CNM4OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 * PD GNMA II POOL #080408X VAR RT 9/1/2005 100.0000 -62,003.4 70 -61,373.75 62,003.47 629.72 05/20/2030 DD 05/01/00SEC ID: 9/1/2005 36225CN28OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 * PD GNMA II POOL #0080965 VAR RT 9/1/2005 100.0000 -37,393.080 -37,369.71 37,393.08 23.37 07/20/2034 DD 07/01/04SEC ID: 9/1/2005 36225DCB8OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO 9/20/2005 * PD GNMA GTD REMIC TR 2000-9 FH VAR RT 9/16/2005 100.0000 -11,422.520 -11,422.52 11,422.52 0.00 02/ 16/2030SEC ID: 9/16/2005 3837H4NX9OCSF07522202: LONG TERM 9/16/2005 OPER-PIMCO PD RESIDENTIAL ASSET 03-RSl l AIIB VAR RT 9/25/2005 100.0000 -22,595.550 -22,595.55 22,595.55 0.00 12/25/2033 DD 12/30/03SEC ID: 9/25/2005 760985K83OCSF07522202: LONG TERM 9/25/2005 OPER-PIMCO 9/28/2005 * PD SBA GTD DEV PARTN 2001-20C 1 6.340% 9/1/2005 100.0000 -276,215.980 -276,215.98 276,215.98 0.00 03/01/2021SEC ID: 9/1/2005 83162CW0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -1,790,038.160 -1,806,875.90 1,790,038.16 -16,837.74 Workbench ·• Actual Settle Date 50 OCSD-CONSOLIDATED -OCSGOOOlOOOO Tran Type Description Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 Trade Date Settle Date Reported Date Local Price Base Price Base Ex Rate Shares/Par Cost Base TOTAL FIXED INCOME SECURITIES BASE: -1,790,038.160 -1,806,875.90 TOTAL PRINCIPAL PAYMENTS BASE: MATURITIES CASH & CASH EQUIVALENTS U.S. DOLLAR MT MT MT MT MT MT DU PONT DE NEMOUR DISC 09/ 16/2005SEC 9/16/2005 ID: 26354AWG5OCSF0751 l 102: LIQUID 9/16/2005 OPli:R-P lMCO 9/16/2005 DU PONT DE NEMOUR DISC 09/28/2005SEC 9/28/2005 ID: 26354AWU4OCSF0751 l 102: LIQUID OPER-PlMCO 9/28/2005 9/28/2005 DU PONT DE NEMOUR DISC 09/29/2005SEC 9/29/2005 ID: 26354AWV2OCSF07511102: LIQUID 9/29/2005 OP!i:R-P!MCO 9/29/2005 FEDERAL HOME LN BK CONS DISC MAT 09/06/2005SEC ID: 313385W3OCSF07511102: LIQUID OPER- PIMCO FEDERAL HOME LN BK CONS DISC N MAT 09 /07 /2005SEC ID: 313385LK0OCSF07511102: LIQUID OPER- PIMCO 9/6/2005 9/6/2005 9/6/2005 9/7/2005 9/7/2005 9/7/2005 FEDERAL HOME LN BK CONS DISC MAT 9/8/2005 9/8/2005SEC ID: 313385LL8OCSF0751 l 102: 9/8/2005 LIQUID OPER-PIMCO 9/8/2005 ·• Actual Settle Date -1,790,038.160 -1,806,875.90 100.0000 -1,000,000.000 -998,646.67 100.0000 -1,900,000.000 -1,890,525.33 100.0000 -1,000,000.000 -998,671.11 100.0000 -4, 100,000.000 -4,098,460.22 100.0000 -4, 100,000.000 -4,099,612.78 100.0000 -1,300,000.000 -1,299,877.94 51 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base 1,790,038.16 1,790,038.16 998,646.67 1,890,525.33 998,671.11 4,098,460.22 4,099,612.78 1,299,877.94 Net Gain/Loss Base -16,837.74 -16,837.74 0.00 0.00 0.00 0.00 0.00 0.00 Workbench Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED · OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL ---- Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT FEDERAL 1:-iOME: LN BK CONS DISC MAT 9/9/2005 100.0000 -2,300,000.000 -2,281,279.28 2,281,279.28 0.00 9/9/2005SEC lD; 313385LM6OCSF075J 1102;9/9/2005 LIQUID OPER-PIMCO 9/9/2005 MT FEDERAL HOME LN BK CONS DISC N MAT 9/12/2005 100.0000 -3,800,000.000 -3,798,929.67 3,798,929.67 0.00 09/12/2005SEC ID: 9/12/2005 313385LQ7OCSF07511102: LIQUID OFER-9/12/2005 FIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/13/2005 100.0000 -6,500,000.000 -6,499,382.50 6,499,382.50 0.00 09/13/2005SEC ID: 9/13/2005 313385LR5OCSF075 l l 102: LIQUID OPER-9/13/2005 FIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/15/2005 100.0000 -2,800,000.000 -2, 799,735.56 2,799,735.56 0.00 09/ 15/2005SEC ID: 9/15/2005 313385LT1OCSF0751 l 102: LIQUID OPER-9/15/2005 FIMCO MT FEDERAL HOME LN BK CONS DISC BOND 9/16/2005 100.0000 -6,500,000.000 -6,499,353.61 6,499,353.61 0.00 MATURITYSEC ID: 9/16/2005 313385LU8OCSF0751 l 102: LIQUID OFER-9/16/2005 FIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2005 100.0000 -6,500,000.000 -6,498,087.92 6,498,087.92 0.00 09 / 19 /2005SEC ID: 9/19/2005 313385LX2OCSF075 l l 102: LIQUID OPER-9/19/2005 FIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/20/2005 100.0000 -6,500,000.000 -6,499,359.03 6,499,359.03 0.00 09/20/2005SEC ID: 9/20/2005 313385LY0OCSF0751 l 102: LIQUID OFER-9/20/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/21/2005 100.0000 -6,500,000.000 -6,499,368.06 6,499,368.06 0.00 09/21/2005SEC ID: 9/21/2005 313385LZ7OCSF0751 l 102: LIQUID OPER-9/21/2005 FIMCO Workbench ·• Actual Settle Date 52 Transaction Detail Report ID: .EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT FEDERAL HOME LN BK CONS DISC N MAT 9/22/2005 100.0000 -6,500,000.000 -6,499,350.00 6,499,350.00 0.00 09/22/2005SEC ID: 9/22/2005 313385MA10CSF07511102: LIQUID OPER-9/22/2005 PIMCO MT FEDERAL HOME LN BK CONS SYSTEM MAT 9/23/2005 100.0000 -6,500,000.000 -6,499,373.47 6,499,373.47 0.00 09/23/2005SEC ID: 9/23/2005 313385MB9OCSF0751 l 102: LIQUID OPER-9/23/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/26/2005 100.0000 -6,500,000.000 -6,498,060.83 6,498,060.83 0.00 09/26/2005SEC ID: 9/26/2005 313385ME3OCSF07511102: LIQUID OPER-9/26/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/27/2005 100.0000 -6,500,000.000 -6,499,350.00 6,499,350.00 0.00 09 /27 /2005SEC ID: 9/27/2005 313385MF0OCSF07511102: LIQUID OPER-9/27/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/28/2005 100.0000 -6,500,000.000 -6,499,346.39 6,499,346.39 0.00 09/28/2005SEC ID: 9/28/2005 313385MG8OCSF075 l l 102: LIQUID OPER-9/28/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/29/2005 100.0000 -6,500,000.000 -6,499,350.00 6,499,350.00 0.00 09/29/2005SEC ID: 9/29/2005 313385MH6OCSF07511102: LIQUID OPER-9/29/2005 PIMCO MT FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 100.0000 -6, 700,000.000 -6,699,330.00 6,699,330.00 0.00 09/30/2005SEC ID: 9/30/2005 313385MJ2OCSF075 l l 102: LIQUID OPER-9/30/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/6/2005 100.0000 -2,600,000.000 -2,593,641. 91 2,593,641.91 0.00 09/06/2005SEC ID: 9/6/2005 313397W8OCSF0751 l 102: LIQUID OPER-9/6/2005 PIMCO Workbench ., Actual Settle Date 53 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED · OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL I -----~ Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base - MT FEDERAL HOME LN MTG CORP DISC 9/13/2005 100.0000 -2,000,000.000 -1,983,569.44 1,983,569.44 0.00 0.000% 09/13/2005 DD 09/13/04SEC ID: 9/13/2005 313397LR0OCSF07511102: LIQUID OPER-9/13/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/16/2005 100.0000 -3,800,000.000 -3,799,622.11 3,799,622.11 0.00 09 / 16/2005SEC ID: 9/16/2005 313397LU3OCSF075 l l 102: LIQUID OPER-9/16/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/19/2005 100.0000 -3,800,000.000 -3, 798,882.17 3,798,882.17 0.00 09 / 19 /2005SEC ID: 9/19/2005 313397LX7OCSF07511102: LIQUID OPER-9/19/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/20/2005 100.0000 -3,800,000.000 -3, 799,625.28 3,799,625.28 0.00 09/20/2005SEC ID: 9/20/2005 313397LY5OCSF0751 l 102: LIQUID OPER-9/20/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/21/2005 100.0000 -3,800,000.000 -3, 799,635.83 3,799,635.83 0.00 09/21/2005SEC ID: 9/21/2005 313397LZ2OCSF0751 l 102: LIQUID OPER-9/21/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/22/2005 100.0000 -3,400,000.000 -3,399,667.56 3,399,667.56 0.00 09/22/2005SEC ID: 9/22/2005 313397MA6OCSF07511102: LIQUID OPER-9/22/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/23/2005 100.0000 -3, 100,000.000 -3,099,698.61 3,099,698.61 0.00 09/23/2005SEC ID: 9/23/2005 313397MB4OCSF0751 l 102: LIQUID OPER-9/23/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/26/2005 100.0000 -3, 100,000.000 -3,099,088.08 3,099,088.08 0.00 09/26/2005SEC ID: 9/26/2005 313397ME8OCSF0751 l 102: LIQUID OPER-9/26/2005 PIMCO Workbench ·> Actual Settle Date 54 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base MT FED HOME LN MTG CORP DISC NTS MAT 9/27/2005 100.0000 -3, 100,000.000 -3,099,692.58 3,099,692.58 0.00 09/27 /2005SEC ID: 9/27/2005 313397MF5OCSF07511102: LIQUID OPER-9/27/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/28/2005 100.0000 -600,000.000 -599,940.50 599,940.50 0.00 09/28/2005SEC ID: 9/28/2005 313397MG3OCSF075 l l 102: LIQUID OPER-9/28/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 100.0000 -1,100,000.000 -1,099,890.92 1,099,890.92 0.00 09/29/2005SEC ID: 9/29/2005 313397MH10CSF07511102: LIQUID OPER-9/29/2005 PIMCO MT FEDERAL HOME LN MTG CORP DISC MAT 9/30/2005 100.0000 -3,400,000.000 -3,399,662.83 3,399,662.83 0.00 09/30/2005SEC ID: 9/30/2005 313397MJ7OCSF07511102: LIQUID OPER-9/30/2005 PIMCO MT GENERAL ELEC CAP DISC 09/09/2005SEC 9/9/2005 100.0000 -1,896,000.000 -1,889,711.25 1,889,711.25 0.00 ID: 36959HW94OCSF07511102: LIQUID 9/9/2005 OPER-PIMCO 9/9/2005 MT US TREASURY BILL 0.000% 09/01/2005 DD 9/1/2005 100.0000 -800,000.000 -798,492.67 798,492.67 0.00 03/03/0.5SEC ID: 912795VP3OCSF07511102: 9/1/2005 LIQUID OPER-PIMCO 9/1/2005 MT US TREASURY BILL DUE 09/15/2005 DD 9/15/2005 100.0000 -10,800,000.000 -10,793,656.88 10,793,656.88 0.00 03/17/20005SECID: 9/15/2005 912795VR9OCSF0751 l l 02: LIQUID OPER-9/15/2005 PIMCO MT WELLS FARGO BANK NA INSTL C/D 3.500% 9/6/2005 100.0000 -1,800,000.000 -1,800,000.00 1,800,000.00 0.00 09/06/2005 DD 08/ 12/0SSEC ID: 9/6/2005 9497P2H67OCSF075 l 1102: LIQUID OPER-9/6/2005 PIMCO Workbench • Actual Settle Date 55 OCSD-CONSOLIDATED-OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 9/1/2005 -9/30/2005 Tran Type Description Trade Date Settle Date Reported Date Local Price Base Price Base Ex Rate MT WE LLS FARGO BANK NA fNSTL C/D 3.500% 09/ lc\-/2005 DD 09/0i /0 5SEC LD: 9497P2T23OCS[,'Q75J l l02: LIQUID OPER- PlMCO 9/14/2005 9/14/2005 9 /14/2005 TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH & CASH EQUIVALENTS BASE: TOTAL MATURITIES BASE: MISCELLANEOUS ACTIVITY FIXED INCOME SECURITIES U.S. DOLLAR SW SW SW TO DELIVER OFF FRACTIONAL UNIT FNMA POOL #0357328SEC ID: 31376J4M8OCSF07522202: LONG TERM OPER-PIMCO TO DELIVER OFF FRACTIONAL UNIT FNMA POOL #0555453SEC ID: 31385XBW6OCSF07522202: LONG TERM OPER-PIMCO TO DELIVER OFF FRACTIONAL UNIT FNMA POOL #0709963SEC ID: 3140IJWY0OCSF07522202: LONG TERM OPER-PIMCO 9/26/2005 9/26/2005 9/26/2005 9/26/2005 9/26/2005 9/26/2005 9/26/2005 9/26/2005 9/26/2005 TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: TOTAL FIXED INCOME SECURITIES BASE: ' Actual Settle Date 100.0000 56 Shares/Par -2,800,000.000 -156,196,000.000 -156, 196,000.000 -156, 196,000.000 -0.030 -0.010 -0.020 -0.060 -0.060 Cost Base -2,800,000.00 -156,109,928.99 -156,109,928.99 -156,109,928.99 -0.03 -0.01 -0.02 -0.06 -0.06 Report ID: 0EWBA09 Base Currency: USD Status: FINAL Amount Base 2,800,000.00 156,109,928.99 156,109,928.99 156,109,928.99 0.00 0.00 0.00 0.00 0.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 -0.03 -0.01 -0.02 -0.06 -0.06 Workbench OCSD-CONSOLIDATED -OCSGOOOlOOOO Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 Tran Type Description Trade Date Settle Date Reported Date Local Price Base Price Base Ex Rate TOTAL MISCELLANEOUS ACTIVITY BASE: INTEREST CASH & CASH EQUIVALENTS U.S. DOLLAR IT IT IT IT IT IT DU PONT DE NEMOUR DISC 09/ 16/2005SEC 9/16/2005 ID: 26354AWG5OCSF0751 l 102: LIQUID 9/16/2005 OPER-PIMCO 9/16/2005 DU PONT DE NEMOUR DISC 09/28/2005SEC 9/28/2005 ID: 26354AWU4OCSF07511102: LIQUID 9/28/2005 OPER-PIMCO 9/28/2005 DU PONT DE NEMOUR DISC 09/29/2005SEC 9/29/2005 ID: 26.354AWV2OCSF0751 l 102: LIQUID 9/29/2005 OPER-PIMCO 9/29/2005 FEDERAL HOME LN BK CONS DISC MAT 09/06/2005SEC ID: 313385W3OCSF075 l l 102: LIQUID OPER- PIMCO FEDERAL HOME LN BK CONS DISC N MAT 09/07/2005SEC ID: 313385LK0OCSF0751 l 102: LIQUID OPER- PIMCO 9/6/2005 9/6/2005 9/6/2005 9/7/2005 9/7/2005 9/7/2005 FEDERAL HOME LN BK CONS DISC MAT 9/8/2005 9/8/2005SECID:313385LL8OCSF07511102: 9/8/2005 LIQUID OPE:R-PIMCO 9/8/2005 ·• Actual Settle Date 57 Shares/Par -0.060 1,000,000.000 1,900,000.000 1,000,000.000 4,100,000.000 4,100,000.000 1,300,000.000 Cost Base -0.06 1,353.33 9,474.67 1,328.89 1,539.78 387.22 122.06 ReportlD: EWBA09 Base Currency: USD Status: FINAL Amount Base 0.00 1,353.33 9,474.67 1,328.89 1,539.78 387.22 122.06 Net Gain/Loss Base -0.06 0.00 0.00 0.00 0.00 0.00 0.00 Workbench Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USO OCSD-CONSOLIDATED • OCSGO00l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base - IT FEDERAL HOME LN BK CONS DISC MAT 9/9/2005 2,300,000.000 18,720.72 18,720.72 0.00 9/9/2005SEC JD: 313385LM6OCSF0751 l 102:9/9/2005 LIQUID OPER-PIMCO 9/9/2005 IT FEDERAL HOME LN BK CONS DISC N MAT 9/12/2005 3,800,000.000 1,070.33 1,070.33 0.00 09/12/2005SEC ID: 9/12/2005 313385LQ7OCSF075 l l 102: LIQUID OPER-9/12/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/13/2005 6,500,000.000 617.50 617.50 0.00 09/ 13/2005SEC ID: 9/13/2005 313385LR5OCSF0751 l 102: LIQUID OPER-9/13/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/15/2005 2,800,000.000 264.44 264.44 0.00 09/ 15/2005SEC ID: 9/15/2005 313385LT1OCSF0751 l 102: LIQUID OPER-9/15/2005 PIMCO IT FEDERAL HOME LN BK CONS DISCSEC ID: 9/16/2005 6,500,000.000 646.39 646.39 0.00 313385LU8OCSF075 l l 102: LIQUID OPER-9/16/2005 PIMCO 9/16/2005 IT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2005 6,500,000.000 1,912.08 1,912.08 0.00 09 / 19 /2005SEC JD: 9/19/2005 313385LX2OCSF0751 l 102: LIQUID OPER-9/19/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/20/2005 6,500,000.000 640.97 640.97 0.00 09/20/2005SEC ID: 9/20/2005 313385LY0OCSF07511102: LIQUID OPER-9/20/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/21/2005 6,500,000.000 631.94 631.94 0.00 09/21/2005SEC ID: 9/21/2005 313385LZ7OCSF07511102: LIQUID OPER-9/21/2005 PIMCO Workbench ··• Actual Settle Date 58 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FEDERAL HOME LN BK CONS DISC N MAT 9/22/2005 6,500,000.000 650.00 650.00 0.00 09/22/2005SEC ID: 9/22/2005 313385MA1OCSF07511102: LIQUID OPER-9/22/2005 PIMCO IT FEDERAL HOME LN BK CONS SYSTEM MAT 9/23/2005 6,500,000.000 626.53 626.53 0.00 09/23/2005SEC ID: 9/23/2005 313385MB9OCSF07511102: LIQUID OPER-9/23/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/26/2005 6,500,000.000 1,939.17 1,939.17 0.00 09/26/2005SEC ID: 9/26/2005 313385ME3OCSF07511102: LIQUID OPER-9/26/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/27/2005 6,500,000.000 650.00 650.00 0.00 09/27/2005SEC ID: 9/27/2005 313385MF0OCSF0751 l 102: LIQUID OPER-9/27/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/28/2005 6,500,000.000 653.61 653.61 0.00 09/28/2005SEC ID: 9/28/2005 313385MG8OCSF07511102: LIQUID OPER-9/28/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/29/2005 6,500,000.000 650.00 650.00 0.00 09/29/2005SEC ID: 9/29/2005 313385MH6OCSF07511102: LIQUID OPER-9/29/2005 PIMCO IT FEDERAL HOME LN BK CONS DISC MAT 9/30/2005 6,700,000.000 670.00 670.00 0.00 09/30/2005SEC ID: 9/30/2005 313385MJ2OCSF07511102: LIQUID OPER-9/30/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/6/2005 2,600,000.000 6,358.09 6,358.09 0.00 09/06/2005SEC ID: 9/6/2005 313397W8OCSF07511102: LIQUID OPER-9/6/2005 PIMCO Workbench ·> Actual Settle Date 59 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base ----~ - IT FEDERAL HOME LN MTG CORP DISC 9/13/2005 0.000 16,430.56 16,430.56 0.00 0.000% 09/13/2005 DD 09/ 13/04SEC ID: 9/13/2005 313397LR0OCSF07511102: LIQUID OPER-9/13/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/16/2005 3,800,000.000 377.89 377.89 0.00 09/ 16/2005SEC ID: 9/16/2005 313397LU3OCSF07511102: LIQUID OPER-9/16/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/19/2005 3,800,000.000 1,117.83 1,117.83 0.00 09/ l 9/2005SEC ID: 9/19/2005 313397LX7OCSF07511102: LIQUID OPER-9/19/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/20/2005 3,800,000.000 374. 72 374.72 0.00 09/20/2005SEC ID: 9/20/2005 313397LY5OCSF0751 l 102: LIQUID OPER-9/20/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/21/2005 3 ,800,000.000 364.17 364.17 0.00 09/21/2005SEC ID: 9/21/2005 313397LZ2OCSF07511102: LIQUID OPER-9/21/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/22/2005 3 ,400,000.000 332.44 332.44 0.00 09/22/2005SEC ID: 9/22/2005 313397MA6OCSF075 l l 102: LIQUID OPER-9/22/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/23/2005 3,100,000.000 301.39 301.39 0.00 09/23/2005SEC ID: 9/23/2005 313397MB4OCSF07511102: LIQUID OPER-9/23/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/26/2005 3,100,000.000 911.92 911.92 0.00 09/26/2005SEC ID: 9/26/2005 313397ME8OCSF0751 l 102: LIQUID OPER-9/26/2005 PIMCO Workbench ·• Actual Settle Date 60 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL ---- Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FED HOME LN MTG CORP DISC NTS MAT 9/27/2005 3,100,000.000 307.42 307.42 0.00 09/27 /2005SEC ID: 9/27/2005 313397MF5OCSF0751 l 102: LIQUID OPER-9/27/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/28/2005 600,000.000 59.50 59.50 0.00 09/28/2005SEC ID: 9/28/2005 313397MG3OCSF075 l l 102: LIQUID OPER-9/28/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/29/2005 1,100,000.000 109.08 109.08 0.00 09/29/2005SEC ID: 9/29/2005 313397MH10CSF07511102: LIQUID OPER-9/29/2005 PIMCO IT FEDERAL HOME LN MTG CORP DISC MAT 9/30/2005 3,400,000.000 337.17 337.17 0.00 09/30/2005SEC ID: 9/30/2005 313397MJ7OCSF07511102: LIQUID OPER-9/30/2005 PIMCO IT GENERAL ELEC CAP DISC 09/09/2005SEC 9/9/2005 1,896,000.000 6,288.75 6,288.75 0.00 ID: 36959HW94OCSF07511102: LIQUID 9/9/2005 OPER-PIMCO 9/9/2005 IT US TREASURY BILL 0.000% 09/01/2005 DD 9/1/2005 800,000.000 1,507.33 1,507.33 0.00 03/03/05SEC ID:912795VP3OCSF07511102:9/1/2005 LIQUID OPER-PIMCO 9/1/2005 IT US TREASURY BILL DUE 09/15/2005 DD 9/15/2005 10,800,000.000 6,343.12 6,343.12 0.00 03/17/20005SECID: 9/15/2005 912795VR9OCSF07511102: LIQUID OPER-9/15/2005 PIMCO IT WELLS FARGO BANK NA INSTL C/D 3.500% 9/6/2005 1,800,000.000 4,375.00 4,375.00 0.00 09/06/2005 DD 08/ 12/0SSEC I:D: 9/6/2005 9497P21-167OCSF0751 l 102: LIQUID OPER-9/6/2005 PIMCO Workbench ·• Actual Settle Date 61 OCSD-CONSOLIDATED · OCSG000l0000 Transaction Detail Reported by Transaction Category 9/ 1/2005-9/30/2005 Tran Trade Date Settle Date Reported Date Type Description IT cw cw IT IT WELLS FARGO BANK NA INSTL C/D 3.500% 09/14/2005 DD 09/07/0SSEC ID: 9497P2T:230CSF0751 l 102: LJQUID OPER- PI.MCO SHORT TERM FDS INT ADJ NET OF OVERNIGHTINTERESTSECID: 990000PJ40CSF0751 l 102: LIQUID OPER- PIMCO SHORT TERM FDS INT ADJ NET OF OVERNIGHT INTERESTSEC ID: 990000PJ40CSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 9960852470CSF07522202: LONG TERM OPER-PIMCO DREYFUS TREASURY CASH MGMTSEC ID: 9960852470CSF0751 l 102: LIQUID OPER- PIMCO 9/14/2005 9/14/2005 9/14/2005 9/30/2005 9/30/2005 9/30/2005 9/30/2005 9/30/2005 9/30/2005 9/6/2005 9/1/2005 9/6/2005 9/6/2005 * 9/6/2005 9/1/2005 9/6/2005 9/6/2005 * Local Price Base Price Base Ex Rate TOTAL CASH & CASH EQUIVALENTS U.S. DOLLAR: TOTAL CASH & CASH EQUIVALENTS BASE: FIXED INCOME SECURITIES U.S. DOLLAR IT BE.f\.R STEARNS COS INC GLOBAL NT 3.000% 9/30/2005 03/30/2006 OD 02/19/03SEC ID: 9/30/2005 073902CB20CSF075 l ll02: LIQUID OPER-9 /3 0/2005 PIMCO • Actual Settle Date 62 Shares/Par 2,800,000.000 0.000 0.000 0.000 0.000 154,196,000.000 154,196,000.000 112,000.000 Cost Base 1,905.56 -8,220.66 -484.36 5,114.93 1,047.33 89,808.81 89,808.81 1,680.00 Report ID: EWBA09 Base Currency: USD Status: FINAL Amount Base 1,905.56 -8,220.66 -484.36 5,114.93 1,047.33 89,808.81 89,808.81 1,680.00 Net Gain/Loss Base 0.00 0.00 0.00 0.00 0 .00 0.00 0.00 0.00 Workbench Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 9/1/2005 -9/30/2005 Status: FINAL ---- Net Gain/Loss I Trade Date Local Price Tran Settle Date Base Price Cost Amount Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT CIT GROUP INC NEW SR NT VAR RT 9/22/2005 1,500,000.000 14,734.38 14,734.38 0.00 09/22/2006 DD 09/23/03SEC ID: 9/22/2005 125581AF5OCSF07522202: LONG TERM 9/22/2005 OPER-PIMCO IT WMP/HUNTOON PAIGE #000-11150 7.500% 9/29/2005 890.500 5,808.44 5,808.44 0.00 12/01/2030 DD 10/21/99SEC ID: 9/1/2005 302998GE3OCSF07522202: LONG TERM 9/29/2005 OPER-PIMCO 9/29/2005 * IT FEDERAL HOME LN MTG CORP MTN 4.000% 9/22/2005 10,000,000.000 200,000.00 200,000.00 0.00 09/22 /2009 DD 09/22/04SEC ID: 9/22/2005 3128X3WYSOCSF07522202: LONG TERM 9/22/2005 OPER-PIMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 9/16/2005 13,104.750 2,447.19 2,447.19 0.00 08/15/2032DD-12/01/97SEC ID: 8/1/2005 3 133TCE95OCSF07522202: LONG TERM 9/16/2005 OPER-PIM CO 9/16/2005 * IT FHLMC MULTICLASS MTG SER E3 A VAR RT 9/16/2005 0.650 0.65 0.65 0.00 08/15/2032 DD 12/01 /97SEC ID: 8/1/2005 3133TCE9SOCSF07522202: LONG TERM 9/16/2005 OPER-PIMCO 9/16/2005 * IT FHLMC GROUP #78-6064 6.384% 9/15/2005 205.290 181.19 181.19 0.00 01/01/2028 DD 12/01/97SEC ID: 8/1/2005 31348SWZ3OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 * IT FEDERAL NATL MTG ASSN DEBS 6.625% 9/15/2005 2,100,000.000 69,562.50 69,562.50 0.00 09/15/2009 DD 09/01/99SEC ID: 9/15/2005 31359MEY5OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO IT FEDERAL NATL MTG ASSN DEBS 3.125% 9/16/2005 6,800,000.000 106,250.00 106,250.00 0.00 03/16/2009 DD 03/ 16/04SEC ID: 9/16/2005 31359MUQ4OCSF07522202: LONG TERM 9/16/2005 OPER-PIMCO Workbench ·> Actual Settle Date 63 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USO OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0254510 5.000% 9/26/2005 13,658.530 2,356.15 2,356.15 0.00 11/01/2017 DD 10/01/02SEC JD: 9/1/2005 31371KVB4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0254631 5.000% 9/26/2005 2,479.450 503.70 503.70 0.00 02/01/2018 DD 01/01/03SEC ID: 9/1/2005 31371KY47OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0254760 5.000% 9/26/2005 2,186.440 455.75 455.75 0.00 06/01/2018 DD 05/01/03SEC ID: 9/1/2005 31371K5V9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0254866 5.000'1/o 9/26/2005 1,064.990 208.45 208.45 0.00 09/01/2018 DD 08/01/03SEC ID: 9/1/2005 31371LCB3OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0254907 5.000% 9/26/2005 8,164.160 1,549.64 1,549.64 0.00 10/01/2018 DD 09/01/03SEC JD: 9/1/2005 31371LDL0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0254953 5.000% 9/26/2005 5,742.450 1,103.88 1,103.88 0.00 11/01/2018 DD 10/01/03SEC ID: 9/1/2005 31371LE210CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0254987 5.000% 9/26/2005 11,695.010 2,957.40 2,957.40 0.00 12/01/2018 DD 11/0l/03SEC JD: 9/1/2005 31371LF46OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0323980 6.000% 9/26/2005 3,059.130 581.57 581.57 0.00 04/01/2014 DD 09/0l/99SEC ID: 9/1/2005 31374T2M0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • Wo1·kbench ·• Actual Settle Date 64 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0357328 5.000% 9/26/2005 322.160 84.23 84.23 0.00 01/01/2018 DD 01/01/03SEC ID: 9/1/2005 31376J4M8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0357430 5.000% 9/26/2005 26,487.270 4,513.48 4,513.48 0.00 09/01/2018 DD 09/0l/03SEC ID: 9/1/2005 31376KA710CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0456482 6.000% 9/26/2005 1,265.750 173.20 173.20 0.00 02/01/2014 DD 02/0l/99SEC ID: 9/1/2005 31381CCT2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0509649 6.000% 9/26/2005 815.650 465.50 465.50 0.00 09/01/2014 DD 09/01/99SEC ID: 9/1/2005 31383QEW0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0535451 6.000% 9/26/2005 2,534.290 454.22 454.22 0.00 06/01/2015 DD 07/01/00SEC ID: 9/1/2005 31384VZQ8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0555363 5.000% 9/26/2005 5,717.340 1,087.20 1,087.20 0.00 04/01/2018 DD 03/01/03SEC ID: 9/1/2005 31385W5YlOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0555453 5.000% 9/26/2005 601.250 113.26 113.26 0.00 05/01/2018 DD 04/01/03SEC ID: 9/1/2005 31385XBW6OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0555545 5.000% 9/26/2005 5,016.020 907.76 907.76 0.00 06/01/2018 DD 05/01/03SEC ID: 9/1/2005 31385XES2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench ., Actual Settle Date 65 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED • OCSGO00l0000 9/1/2005-9/30/2005 Status: FINAL ----Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base - IT FNMA POOL #0555621 5.000% 9/26/2005 14,721.870 3,117.24 3,117.24 0.00 07/01/2018 DD 06/01/03SEC ID: 9/1/2005 31385XG68OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0681309 5.000% 9/26/2005 6,922.370 1,729.83 1,729.83 0.00 02/01/2018 DD 02/01/03SEC ID: 9/1/2005 31391Y384OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0681334 5.000% 9/26/2005 932.850 207.56 207.56 0.00 02/01/2018 DD 01/0l/03SEC ID: 9/1/2005 31391Y4TlOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0684798 5.500% 9/26/2005 12,344.930 1,407.57 1,407.57 0.00 03/01/2033 DD 03/0l/03SEC ID: 9/1/2005 31400DX31OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0684908 5.000% 9/26/2005 8,723.500 1,131.67 1,131.67 0.00 06/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400D3RlOCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0685200 5.000% 9/26/2005 4,412.950 617.23 617.23 0.00 03/01/2018 DD 03/01/03SEC ID: 9/1/2005 31400EGH7OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0685665 5.000% 9/26/2005 643.950 103.23 103.23 0.00 02/01/2018 DD 02/01/03SEC ID: 9/1/2005 31400EW22OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0686318 5.000% 9/26/2005 4,930.280 925.93 925.93 0.00 03/01/2018 DD 03/01/03SEC ID: 9/1/2005 31400FPB7OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Wor-kbench ., Actual Settle Date 66 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0688739 5.000% 9/26/2005 511.880 363.70 363.70 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31400JEL9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0689859 5.000% 9/26/2005 405.130 334.38 334.38 0.00 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400KMG8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0693834 5.000% 9/26/2005 11,809.060 1,930.37 1,930.37 0.00 03/01/2018 DD 03/01/03SEC ID: 9/1/2005 31400PY74OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0695852 5.000% 9/26/2005 3,876.460 719.25 719.25 0.00 05/01/2018 DD 05/0l/03SEC ID: 9/1/2005 31400SBV0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0695889 5.000% 9/26/2005 8,405.730 2,566.70 2,566.70 0.00 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31400SC23OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0697026 5.000% 9/26/2005 426.010 76.92 76.92 0.00 05/01/2018 DD 04/01/03SEC ID: 9/1/2005 31400TLF2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0702210 5.000% 9/26/2005 4,180.140 718.22 718.22 0.00 05/01/2018 DD 05/01/03SEC ID: 9/1/2005 31401ADP9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0702328 5.000% 9/26/2005 2,072.710 427.81 427.81 0.00 05/01/2018 DD 04/01/03SEC ID: 9/1/2005 31401AHD2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 67 Transaction Detail ReportID: EWBA09 1 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL --- Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base --- IT FNMA POOL #0709148 5.000% 9/26/2005 3,685.250 942.67 942.67 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401HZM7OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0709360 5.000% 9/26/2005 25,504.790 2,113.76 2,113.76 0.00 07/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JB56OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0709826 5.000% 9/26/2005 1,880.920 361.63 361.63 0.00 06/01/2018 DO 06/0l/03SEC ID: 9/1/2005 31401JSP4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0709917 5.000% 9/26/2005 2,463.100 750.81 750.81 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JVJ4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0709963 5.000% 9/26/2005 83.740 72.25 72.25 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401JWY0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0710235 5.000% 9/26/2005 15,145.700 1,905.88 1,905.88 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401KBC8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0713344 5.000% 9/26/2005 526.530 51.24 51.24 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401NP52OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0713365 5.000% 9/26/2005 4,084.540 771.69 771.69 0.00 07/01/2018 DD 07/0l/03SEC ID: 9/1/2005 31401NQS10CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Wo1-kbench ·• Actual Settle Date 68 Transaction Detail Report ID: .EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0720319 5.000% 9/26/2005 14,951.260 2,366.05 2,366.05 0.00 07/01/2018 DD 07 /01/03SEC ID: 9/1/2005 31401WG45OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0720369 5.000% 9/26/2005 38,946.940 7,762.81 7,762.81 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401WJN0OCSF07522202: LONG TERM 9/26/2005 OP ER-PIM CO 9/26/2005 * IT FNMA POOL #0721629 5.000% 9/26/2005 7,636.780 1,017.14 1,017.14 0.00 07/01/2018 DD 06/01/03SEC ID: 9/1/2005 31401XVW4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0723487 5.000% 9/26/2005 857.120 763.58 763.58 0.00 06/01/2018 DD 06/01/03SEC ID: 9/1/2005 31402A.XQ4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0725530 5.000% 9/26/2005 48,591.490 11,667.25 11,667.25 0.00 06/01/2019 DD 05/01/04SEC ID: 9/1/2005 31402DA75OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005; IT FNMA POOL #0729601 5.000% 9/26/2005 11,077.360 1,367.57 1,367.57 0.00 07/01/2018 DD 07/01/03SEC ID: 9/1/2005 31402HRW3OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0732873 5.000% 9/26/2005 211.700 122.76 122.76 0.00 11/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402MFN5OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0735227 5.500% 9/26/2005 19,552.080 4,347.28 4,347.28 0.00 02/01/2035 DD 01/01/05SEC ID: 9/1/2005 31402QYY 1 OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench ., Actual Settle Date 69 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED • OCSG000 10000 9/1/2005 -9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base --- IT FNMA POOL #0735856 5.000% 9/26/2005 3,144.800 2,083.34 2,083.34 0.00 08/01/2020 DD 08/01/05SEC ID: 9/1/2005 31402RQH5OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0737130 5.000% 9/26/2005 2,698.030 2,056.30 2,056.30 0 .00 10/01/2018 DD 10/0l/03SEC ID: 9/1/2005 31402S4P9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 , IT FNMA POOL #0738211 5.000% 9/26/2005 8,627.600 1,794.18 1,794.18 0.00 10/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402UDQ2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0738487 5.000'}b 9/26/2005 2,823.460 649.31 649.31 0.00 10/01/2018 DD 10/01/03SEC ID: 9/1/2005 3 l 402UNC2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0740457 5.000% 9/26/2005 25,514.710 7,588.94 7,588.94 0.00 10/01/2018 DD 10/01/03SEC ID: 9/1/2005 31402WTN8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0740471 5.000% 9/26/2005 2,979.020 2,666.26 2,666.26 0.00 10/01/2018 DD 10/01/03SEC JD: 9/1/2005 31402WT40OCSF07522202: LONG TERM 9/26/2005 OPER-PJMCO 9/26/2005 * IT FNMA POOL #0740748 5.000% 9/26/2005 18,868.240 2,649.45 2,649.45 0.00 10/01/2018 DD 11/01/03SEC JD: 9/1/2005 31402W5H7OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0743868 5.000% 9/26/2005 871.500 126.06 126.06 0.00 11/01/2018 DD 10/01/03SEC JD: 9/1/2005 314038MR10CSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench ·• Actual Settle Date 70 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0744008 5.000% 9/26/2005 4,267.950 3,594.96 3,594.96 0.00 07/01/2018 DD 09/01/03SEC ID: 9/1/2005 31403BR54OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0744316 5.000% 9/26/2005 3,560.550 554.30 554.30 0.00 09/01/2018 DD 09/01/03SEC ID: 9/1/2005 31403B3Z4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0747914 5.000% 9/26/2005 10,105.090 1,034.17 1,034.17 0.00 11/01/2018 DD ll/0l/03SEC ID: 9/1/2005 31403F3X0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0748400 5.000% 9/26/2005 3,100.600 635.15 635.15 0.00 08/01/2018 DD 09/01/03SEC ID: 9/1/2005 31403GNR9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0748899 5.000% 9/26/2005 26,948.500 3,376.37 3,376.37 0.00 12/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403G7L0OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0750377 5.000% 9/26/2005 37,604.280 7,204.45 7,204.45 0.00 11/01/2018 DD 11/01/03SECID: 9/1/2005 31403JUA2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0750380 5.000% 9/26/2005 21,360.100 6,102.10 6,102.10 0.00 11/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403JUD6OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0750445 5.000% 9/26/2005 619.990 577.26 577.26 0.00 11/01/2018 DD ll/0l/03SEC ID: 9/1/2005 31403JWE2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench * Actual Settle Date 71 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED • OCSGO00l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0751960 5.000% 9/26/2005 4,125.730 2,732.65 2,732.65 0.00 12/01/2018 DD 11/01/03SEC lD: 9/1/2005 31403LMH1OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0753425 5.000% 9/26/2005 8,428.980 2,856.77 2,856.77 0.00 11/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403NA23OCSF07522202: LONG TERM 9/26/2005 OP ER-PIM CO 9/26/2005 * IT FNMA POOL #0755165 5.000% 9/26/2005 15,511.420 2,025.19 2,025.19 0.00 12/01/2018 DD 11/01/03SEC ID: 9/1/2005 31403Q6A3OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0756372 5.000% 9/26/2005 4,132.290 3,385.16 3,385.16 0.00 11/01/2018 DD ll/0l/03SEC ID: 9/1/2005 31403SJR8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0784251 5.000% 9/26/2005 129,147.340 12,039.39 12,039.39 0.00 11/01/2019 DD ll/01/04SEC ID: 9/1/2005 31405BH46OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0789670 5.000% 9/26/2005 18,535.110 3,437.00 3,437.00 0.00 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31405HJP4OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0792432 5.000% 9/26/2005 11,214.020 3,436.84 3,436.84 0.00 10/01/2019 DD 10/01/04SEC ID: 9/1/2005 31405LLM9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0792437 5.000% 9/26/2005 172,439.800 19,839.16 19,839.16 0.00 10/01/2019 DD 10/01/04SEC ID: 9/1/2005 31405LLS6OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench ., Actual Settle Date 72 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000lO000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0794195 5.000% 9/26/2005 39,298.910 3,662.26 3,662.26 0.00 11/01/2019 DD 11/01/04SEC ID: 9/1/2005 31405NKG9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0797160 5.000% 9/26/2005 264,012.690 12,444.80 12,444.80 0.00 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31405RTR7OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0797408 5.000% 9/26/2005 3,026.730 3,283.83 3,283.83 0.00 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31405R3R5OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 ' IT FNMA POOL #0797414 5.000% 9/26/2005 3,611.270 3,238.34 3,238.34 0.00 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31405R3X2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0800370 5.000% 9/26/2005 1,510.950 1,482.51 1,482.51 0.00 12/01/2019 DD 11/01/04SEC ID: 9/1/2005 31405VFK8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0800998 5.500% 9/26/2005 332.430 1,381.83 1,381.83 0.00 11/01/2034 DD 11/01/04SEC ID: 9/1/2005 31405V3F2OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0803923 5.000% 9/26/2005 13,006.520 12,083.06 12,083.06 0.00 12/01/2019 DD 12/01/04SEC ID: 9/1/2005 31406AD41OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0807711 5.000% 9/26/2005 79,445.900 12,132.95 12,132.95 0.00 01/01/2020 DD 0l/01/05SEC ID: 9/1/2005 31406EKY9OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * Workbench ·> Actual Settle Date 73 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000l0000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base -------- IT FNMA POOL #0808933 5.500% 9/26/2005 341.950 1,520.05 1,520.05 0.00 01/01/2035 DD 01/01/05SEC ID: 9/1/2005 31406FV24OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0809350 5.500% 9/26/2005 3,612.140 1,451.91 1,451.91 0.00 12/01/2034 DD 01/01/05SEC ID: 9/1/2005 31406GEX3OCSF07522202: LONG TERM 9/26/2005 OP ER-PIM CO 9/26/2005 • IT FNMA POOL #0814930 5.500% 9/26/2005 391.490 1,487.39 1,487.39 0.00 04/01/2035 DD 04/01/05SEC ID: 9/1/2005 31406NLK8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT FNMA POOL #0815923 5.500% 9/26/2005 371.370 1,482.70 1,482.70 0.00 03/01/2035 DD 03/0l/05SEC ID: 9/1/2005 31406PPG8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0816246 5.000% 9/26/2005 8,132.490 2,583.15 2,583.15 0.00 03/01/2020 DD 03/01/0SSEC ID: 9/1/2005 31406PZK8OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0819566 5.500% 9/26/2005 5,540.940 1,486.27 1,486.27 0.00 04/01/2035 DD 04/01/0SSEC ID: 9/1/2005 31406TQT1OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0822731 5.500% 9/26/2005 6,672.050 1,510.66 1,510.66 0.00 05/01/2035 DD 05/01/05SEC ID: 9/1/2005 31406XA85OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • IT FNMA POOL #0823232 5.500% 9/26/2005 375.490 1,518.88 1,518.88 0.00 06/01/2035 DD 05/01/05SEC ID: 9/1/2005 31406XSV5OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 • Workbench ·• Actual Settle Date 74 Transaction Detail ReportlD: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT FNMA POOL #0823787 5.000% 9/26/2005 7,678.570 8,076.72 8,076.72 0.00 05/01/2020 DD 05/01/05SEC ID: 9/1/2005 31406YF47OCSF07522202: LONG TERM 9/26/2005 OPER-PIMCO 9/26/2005 * IT GNMA POOL #0421389 6.500% 9/15/2005 22.770 42.86 42.86 0.00 04/15/2026 DD 04/01/96SEC ID: 9/1/2005 36206UC23OCSF07522202: LONG TERM 9/15/2005 OP ER-PIM CO 9/15/2005 * IT GNMA POOL #0449851 6.500%, 9/15/2005 26.770 64.71 64.71 0.00 01/15/2028 DD 01/01/98SEC ID: 9/1/2005 36208FWL0OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 * IT GNMA POOL #0466845 6.500% 9/15/2005 49.270 175.12 175.12 0.00 06/15/2028 DD 06/01/98SEC ID: 9/1/2005 36209BTA6OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 • IT GNMA POOL #0468052 6.500% 9/15/2005 117.030 216.44 216.44 0.00 07/15/2028 DD 07 /01/98SEC ID: 9/1/2005 36209C5M4OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 * IT GNMA POOL #0476041 6.500% 9/15/2005 4,385.560 627.40 627.40 0.00 06/15/2028 DD 06/01/98SEC ID: 9/1/2005 36209MZE7OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 * IT GNMA POOL #0478626 6.500% 9/15/2005 189.230 645.27 645.27 0.00 01/15/2029 DD 01/01/99SEC ID: 9/1/2005 36209QVT9OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005* IT GNMA POOL #0480598 6.500% 9/15/2005 41.110 154.13 154.13 0.00 10/15/2028 DD 10/01/98SEC ID: 9/1/2005 36209S3F6OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005 * Workbench ., Actual Settle Date 75 Transaction Detail Report ID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGOOOlOOOO 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT GNMA POOL #0512235 6.500% 9/15/2005 8.340 31.48 31.48 0.00 11/15/2029 DD 11/0l/99SEC ID: 9/1/2005 36211GBC6OCSF07522202: LONG TERM 9/15/2005 OPER-PIMCO 9/15/2005' IT GNMA POOL #0514326 6.500% 9/15/2005 197.880 416.74 416.74 0.00 07/15/2029 DD 07/01/99SEC ID: 9/1/2005 362 l 1JLF2OCSF07522202: LONG TERM 9/15/2005 OP ER-PIM CO 9/15/2005 ~ IT GNMA II POOL #0080023 VAR RT 12/20/20269/20/2005 8,164.590 451.37 451.37 0.00 DD 12/0 l /96SEC ID: 9/1/2005 36225CAZ9OCSF07522202: LONG TERM 9/20/2005 OPER-P!MCO 9/20/2005 * IT GNMA II POOL #080088M 7.375% 9/20/2005 336.250 581.42 581.42 0.00 06/20/2027 DD 06/01/97SEC ID: 9/1/2005 36225CC20OCSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 * IT GNMA II POOL #0080395 VAR RT 9/20/2005 6,459.400 501.34 501.34 0.00 04/20/2030 DD 04/01/00SEC ID: 9/1/2005 36225CNM4OCSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 * IT GNMA II POOL #080408X VAR RT 9/20/2005 62,003.470 4,454.33 4,454.33 0.00 05/20/2030 DD 05/01/00SEC ID: 9/1/2005 36225CN28OCSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 * IT GNMA II POOL #0080965 VAR RT 9/20/2005 37,393.080 3,353.84 3,353.84 0 .00 07/20/2034 DD 07/01/04SEC ID: 9/1/2005 36225DCB8OCSF07522202: LONG TERM 9/20/2005 OPER-PIMCO 9/20/2005 • IT GOLDMAN SACHS GRP MTN #TR00203 VAR 9/30/2005 2,000,000.000 18,348.89 18,348.89 0.00 RT 03/30/2007 DD 04/01/04SEC ID: 9/30/2005 38141EJL4OCSF07522202: LONG TERM 9/30/2005 OPER-PIMCO Wor·kbench ·• Actual Settle Date 76 " Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSGOOOlOOOO 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Tran Settle Date Base Price Cost Amount Net Gain/Loss Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT GOLDMAN SACHS GRP VAR RT 06/28/2010 9/28/2005 4,250,000.000 41,033.75 41,033.75 0.00 DD 06/28/05SEC ID: 9/28/2005 38143UBP2OCSF07522202: LONG TERM 9/28/2005 OPER-PIMCO IT GNMA GTD REMIC TR 2000-9 FH VAR RT 9/16/2005 11,422.520 1,398.66 1,398.66 0.00 02/ 16/2030SEC ID: 9/16/2005 3837H4NX9OCSF07522202: LONG TERM 9/16/2005 OPER-PIMCO IT HSBC BK USA MTN #SR00012 VAR RT 9/21/2005 250,000.000 2,242.10 2,242.10 0.00 09/21/2007 DD 09/21/04SEC ID: 9/21/2005 4042Q0AM1OCSF07522202: LONG TERM 9/21/2005 OPER-PIMCO ITC HSBC FIN CORP MTN# TR 00002 VAR RT 8/31/2005 -3,000,000.000 -25,760.00 -25,760.00 0.00 02/28/2007 DD 03/29/05SEC ID: 8/31/2005 40429JAB3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO IT HSBC FIN CORP MTN# TR 00002 VAR RT 8/31/2005 3,000,000.000 25,480.00 25,480.00 0.00 02/28/2007 DD 03/29/05SEC ID: 8/31/2005 40429JAB3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO IT PUBLIC SVC ELEC & GAS CO 1ST VAR RT 9/23/2005 1,400,000.000 12,797.28 12,797.28 0.00 06/23/2006 DD 06/25/04SEC ID: 9/23/2005 744567FN3OCSF07522202: LONG TERM 9/23/2005 OPER-PIMCO IT RESIDENTIAL ASSET 03-RSl 1 AIIB VAR RT 9/28/2005 22,595.550 1,318.44 1,318.44 0.00 12/25/2033 DD 12/30/03SEC ID: 9/25/2005 760985K83OCSF07522202: LONG TERM 9/28/2005 OPER-PIMCO 9/28/2005 * IT SBA GTD DEV PARTN 2001-20C 1 6.340% 9/1/2005 276,215.980 94,905.71 94,905.71 0.00 03/01/2021SEC ID: 9/1/2005 83162CW0OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO Workbench .. , Actual Settle Date 77 Transaction Detail ReportID: EWBA09 Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED -OCSG000 10000 9/1/2005-9/30/2005 Status: FINAL Trade Date Local Price Net Gain/Loss -1 Tran Settle Date Base Price Cost Amount Type Description Reported Date Base Ex Rate Shares/Par Base Base Base IT TOYOTA MTR CR MTN #TR00413 VAR RT 9/19/2005 2,000,000.000 6,272.23 6,272.23 0.00 09/18/2006 DD 03/16/05SEC ID: 9/18/2005 89233PTE6OCSF07522202: LONG TERM 9/19/2005 OPER-PIMCO 9/19/2005* CD US TREASURY INFLATION INDEX NT 3.375% 9/1/2005 0.000 3,940.98 3,940.98 0.00 01/15/2007 DD 01 /15/97SEC ill: 9 l282'12M3OCSF07522202: LONG TERM 9/1/2005 OPER-PIMCO CD US TREASURYTNFLATJON INDEX NT 3.375% 9/30/2005 0.000 38,096.14 38,096.14 0.00 01/15/2007 DD 0l/15/97SEC ID: 9128272M3OCSF07522202: LONG TERM 9/30/2005 Ol?ER-PIMCO CD US TREASURY lNFLAl'lON INDEX NT 3.625% 9/30/2005 0.000 11,340.00 11,340.00 0.00 01/15/2008 DD 0l/l5/98 SEC ID: 9128273T7OCSF07522202: LONG TERM 9/30/2005 OPER-PJMCO CD US TREASURY INFLATION INDEX NT 3.875% 9/30/2005 0.000 50,540.00 50,540.00 0.00 01/15/2009 DD 0l/15/99SEC ID: 9128274Y5OCSF07522202: LONG TERM 9/30/2005 OPER-P'IMCO CD US TREASURY INFLATION INDEXED 2.000% 9/30/2005 0.000 472.00 472.00 0.00 01/15/2014 DD 01/ J 5/04SEC ID: 912828BW9OCSF07522202: LONG TERM 9/30/2005 OPER-PlMCO CD US TREASURY INFLATION INDEX NT 2.000% 9/30/2005 0.000 14,353.00 14,353.00 0 .00 07/15/2014DD 07/15/04SEC ID: 912B28CP3OCSF07522202: LONG TERM 9/30/2005 OPER-PllvlCO IT VIRGINIA ELEC & PWR 01 SER A 5.750% 9/30/2005 1,750,000.000 50,312.50 50,312.50 0.00 03/31/2006 DD 03/27 /0lSEC ID: 9/30/2005 927804EN0OCSF07522202: LONG TERM 9/30/2005 OPER-PIMCO Workbench ··• Actual Settle Date 78 ~·. OCSD-CONSOLIDATED -OCSG000l0O00 Tran Type Description Transaction Detail Reported by Transaction Category 9/1/2005-9/30/2005 Trade Date Settle Date Reported Date Local Price Base Price Base Ex Rate Shares/Par TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: 33,951,150.000 TOTAL FIXED INCOME SECURITIES BASE: 33,951,150.000 TOTAL INTEREST BASE: 188,147,150.000 Cost Base 993,021.92 993,021.92 1,082,830.73 Report ID: EWBA09 Base Currency: USO Status: FINAL 4•,' ~ Amount Base Net Gain/Loss Base 993,021.92 0.00 993,021.92 0.00 1,082,830.73 0.00 TOTAL TRANSACTIONS: 199,098,082.760 -8,267,939.45 -29,531,249.05 31,643.82 Workbench • Actual Settle Date 79 r r r r r r L L L L L L L L L L Callan Associates Inc. Investment Measurement Service Quarterly Review Orange County Sanitation District September 30, 2005 The following report was prepared by Callan Associates Inc. ("CAI") using information from sources that include the following: fund trustee(s); fund custodian(s); investment manager(s); CAI computer software; CAI investment manager and fund sponsor database; third party data vendors; and other outside sources as directed by the client. CAI assumes no responsibility for the accuracy or completeness of the information provided, or methodologies employed, by any information providers external to CAL Reasonable care has been taken to assure the accuracy of the CAI database and computer software. In preparing the following report, CAI has not reviewed the risks of individual security holdings or the compliance/non-compliance of individual security holdings with investment policies and guidelines of a fund sponsor, nor has it assumed any responsibility to do so. Copyright 2005 by Callan Associates Inc. Ill r <,,\·,IR\',( I',( 0 ·,r-11 H)RK r L L L L L L L L L ( HI( \GO •\ fl \'JT I 1)1-',\ 11( October 28, 2005 Mr. Michael D. White Controller Orange County Sanitation Districts 10844 Ellis A venue Fountain Valley, California 92728 IKIES.;,_ RE: September 30, 2005 Quarterly Performance Report Dear Mike, The September 30, 2005 Quarterly Performance Report for the District's investment portfolio is attached. This letter provides a qualitative summary of the most important points covered in the report. Market Overview The US stock market recorded its best quarterly returns this year despite twin hurricanes and higher energy prices. The S&P 500 climbed 3.6%, the Dow rose 3.4% and the tech-laden NASDAQ lifted 4.8%. Not surprisingly, investors who held energy, natural resources and utility stocks did well. Mother Nature did cast a pall over the economy in the latest quarter. Consumer spending slipped the farthest since May 2002. A consumer sentiment reading showed the largest decline in 15 years following the hurricanes. For the year-to-date, the Dow and NASDAQ are still in the red while the S&P 500 is up slightly. A rise in inflation sent ripples through the bond market in the third quarter. The fixed income market, as measured by the Lehman Aggregate, fell -0.7 percent. Treasurys slumped -1.1 percent, with two-year yields reaching a four-year high. The Fed raised short-term interest rates twice over the three-month period to 3.75 percent. For the first time this year, corporates (-1.0%) edged Treasurys for the quarter. Financials led all sectors of the credit market. The return in the portion of the bond market where the District invest, the defensive portion, was negative also, at -0.16 percent. L l L L L L L L L Mr. Michael White October 28, 2005 Page2 Manager Results The Liquid Operating Money account, managed by PIMCO, produced a 0.87% return for the quarter, slightly better than the return on the 90-day Treasury bill (0.83%), and higher than the prior quarter. For the trailing I-year period, the portfolio gained 2.72%, which is, again, slightly above the 90-day Treasury bill return (2.62%). Over longer time periods, the portfolio ranks in the top decile of Callan's Money Market Mutual Funds Database, on an after-fee basis. As of September 30, 2005, the portfolio's yield is 3.8%, up from 3.1 % at mid year. The Long Term Operating Fund managed by PIMCO eked out a small positive return for the quarter (+0.18%), outperforming the Merrill 1-5 Year Gov/Corp index by 34 basis points. A lower than benchmark duration contributed to out performance. Due to increases in interest rates, the Long Term portfolio had a lower return than the Liquid portfolio for the quarter. The Fund has consistently performed in the top quartile over longer time periods in Callan's Defensive Fixed Income Style Group. As of quarter-end, the Fund continues to have an overweight allocation to the Treasury sector relative to the benchmark, augmented by its allocation to TIPS (Treasury Inflation Protected Securities). A seventeen percent exposure to short maturity Mortgages, a non-benchmark sector, is contributing extra yield without introducing credit risk. The Long Term Fund continues to hold one security rated below the 'A' rating minimum of your policy, based on Moody's ratings. The security is issued by United Airlines, a company in bankruptcy. A listing of the five lowest rated securities is provided on page 23 of the report. As for sector guidelines, the Fund has less than 30% invested in corporate notes, and the combination of asset backed securities and mortgages remains below 20%. Please do not hesitate to call me if you have any questions. Yours truly, Ruthann C. Moomy, Ph.D., CFA Senior Vice President L Mr. Michael White October 28, 2005 Page3 UPCOMING CALLAN EVENTS The Center for Investment Training: "Callan College" • November 2-4 in San Francisco "Callan College" is a 2-½ day course designed to help participants learn all aspects of the investment management process and their role within it. RECENT RESEARCH PAPERS/SUMMARIES • DC Institute: Observations & Opinions (Quarterly Newsletter -Summer 2005) • 2005 Regional Breakfast Workshop Summary-June: International Management Structure: Evolving Perspectives Capital Markets Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Active Management Overview Market Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Domestic Fixed-Income ...................................................... 15 Asset Class Risk and Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Investment Manager Asset Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Investment Manager Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Manager Analysis PIMCO-Liquid Operating Monies PIMCO-Liquid Operating Fund Bond Portfolio Characteristics Portfolio Characteristics Detail .............................................. 20 21 22 23 Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Ell II CAliAN -_JJU Atlanta Consulting Office Six Concourse Parkway, Suite 2900 Atlanta, Georgia 30328 Phone: (770) 804-5585 Chicago Consulting Office 120 North LaSalle Street, Suite 2100 Chicago, Illinois 60602 Phone: (312)346-3536 Denver Consulting Office 1660 Wynkoop Street, Suite 950 Denver, Colorado 80202 Phone: (303) 861-1900 New York Consulting Office 200 Park Avenue, Suite 230 Florham Park, New Jersey 07932 Phone: (973) 593-8050 San Francisco Consulting Office 101 California Street, Suite 3500 San Francisco, California 94111 Phone: (415) 974-5060 , Investment Management Program Orange County Sanitation District Strategy Review for the Period June 30, 2005 -September 30, 2005 rrrrcrrrrrcrrrrrrrco0~8;~~177~J~,,J111 A company of Allianz@ Global Investors Investment Management Program Orange County Sanitation District Strategy Review for the Period June 30, 2005 -September 30, 2005 r rrrrrrrrrrrrr~--------------~-77~~~~~~~~1~1 '-I I \ \ \ ( I ) ) ) ) ) J ) I J ) ) ) ) ' Agenda I. Introduction, Performance & Market Review 11. Economic Outlook & Strategy Ill. Organizational Update PIM C 0 rrrrrrrrrr:-r Introduction __________________ ......, \ --~.-.,-.i~------"""'l-. ) J ) } )) ) , ~IJ • Understand your investment objectives and constraints PIMCO's Commitment to You -Provide ideas and solutions focused on meeting your needs • Generate consistent outperformance • Deliver superior client service Key Themes for 2005 • The market experienced greater economic uncertainty amid high energy prices, shocks to consumer confidence, and continued Fed tightening • PIMCO employed diversified strategies and active management to protect your portfolios • Your portfolios posted positive returns year to date despite volatile markets 2 PIM C 0 7- rrrrrr~rrr~r~~~~~~-~-----------777~~~~~~111~ \__ ~ ~ ~ ~ \ \ \ , l , , I , , , J , , I I I I I ) ) ,) J ) ) ) Portfolio Strategy: Take Moderate Risks Amid Greater Economic Uncertainty • Anticipate end of Fed tightening cycle Interest Rate Strategies Sectors Strategies -Near to slightly above index duration -Focus on short and intermediate maturities • Mortgages:_ Maintain modest exposure and emphasize coupon selection • Corporates: Underweight as credit spreads remain tight • Real Return: Hold modest exposure to protect against potential inflation 8 PIM C 0 rr rr ~ r -r r r ----, l. ' \ I l ------------------7-~---~~~ '-' ,. ~ J ' ) I ) ) 'j J Building on Fixed Income Expertise to Meet Client Needs Strategy Description Assets Traditional: Total Return Long Duration Moderate Duration Low Duration Enhanced Cash Money Market Stable Value Sector-Specific: Credit: Investment Grade Corporates High Yield Diversified Income CBO/CLO Mortgages Global Emerging Markets Municipals Real Return: Real Return Commodity Real Return All Asset, All Asset All Authority RealEstateRealRetum Equity PLUS: StocksPLUS and StocksPLUS Total Return Absolute Return Strategies PIMCO's flagship style: Core/ Core Plus Focus on long-term bonds Total return with intermediate duration Total return with shorter duration Active cash management and LIBOR-based strategies Maximize income while preserving capital Strategies that use book value wrappers High quality corporate bond portfolios Emphasis on upper tiers of high yield market Global credit combining corporate and emerging markets debt Collateralized bonds/loan obligations Emphasis on management of mortgage pass-throughs Non-U.S. and global approaches Focus on solid credits with improving economic fundamentals Tax-efficienttotal return management TIPS and other inflation-hedging strategies Commodity-linked e~osure backed by a bond portfolio Tactical allocation among PIMCOfunds Real Estate-linked e~osure backed bya bond portfolio Combines passive equityindexe~osure with active bond management Libor based Absolute Return vehicles, includes private placement investments $201.1 19.4 8.0 21.0 13.0 0.7 17.9 9.7 21.0 2.7 5.2 9.4 64.5 14.1 8.4 31.6 12.0 9.4* 0.1 30.9 12.7 Total Assets Under Management: $513.5 B Assets as of September 30, 2005. Potential differences in asset totals are due to rounding. • All Asset strategies are invested in PIMCO Funds; these assets are not included in the individual strategies. --~ -.• . ,, ,.J 10 PIM C 0