ANNUAL INVESTMENT REPORT€¦ · 2012-2013 ANNUAL INVESTMENT REPORT Tab: Title for the year ended June 30, 2013 NORTH EAST I.S.D. ANNUAL INVESTMENT REPORT

2012-2013 ANNUAL INVESTMENT REPORTTab: Title

for the year ended June 30, 2013

NORTH EAST I.S.D.

ANNUAL INVESTMENTREPORT

i

2012-2013 ANNUAL INVESTMENT REPORTTab: TOC (2) 9/25/2013

TABLE OF CONTENTS

Investment Officers Certification…………………………………………………………………………… 1

Investment Instruments……………………………………………………………………………………… 2

Portfolio Compliance Review……………………………………………………………………………… 3

Review of Activities………………………………………………………………………………………… 4

Investment Controls………………………………………………………………………………………… 5

Investment Policies………………………………………………………………………………………… 5

Investment Strategies………………………………………………………………………………………… 6

Market Strategy……………………………………………………………………………………………… 6

Enhancements and Recommended Improvements…………………………………………………………… 6

Investment Plan for 2013-2014……………………………………………………………………………… 7

Portfolio Composition……………….…………………………………………….………………………… 8

Maturity Aging/Portfolio Performance……………………………………………………………………… 9

Cash Receipts and Investment Pool Performance…………………………………………………………… 13

Purchases (by fund)………………………………………………………………………………………… 14

Maturities/Calls/Sales (by fund)…………………………………………………………………………… 16

Changes in Managed Pool Balances (by fund)……………………………………………………………… 18

Changes in Values (by fund)………………………………………………………………………………… 20

Earnings/Yields (by fund)…………………………………………………………………………………… 24

Legal Investment Policies…………………………………………………………………………………… 29

Local Investment Policies…………………………………………………………………………………… 42

North East Independent School District Annual Investment Report

June 30, 2013

Members of the Board:

This report summarizes the portfolio and activity of the North East Independent School District for the year ended June 30, 2013.

6/30/2012 6/30/2013

Book Value $ 289,707,393 $ 323,381,835 Market Value 290,056,215 323,484,467

Weighted Average Maturity (Days) 122 136 Weighted Average Yield-to-Maturity of Portfolio 0.72% 0.30%

Yield-to-Maturity of90-Day T-Bill 0.08% 0.04%

This quarterly report is presented in accordance with the Texas Government Code Title 10 Section 2256.023 and NEISD Policy. The investment officers hereby certify that, to the best of their knowledge on the date this report was created, North East Independent School District is in compliance with the provisions of Government Code 2256 and with the stated policies and strategies of the District.

J?vi~\AUd Associate Superintendent for Business Services/CFO

S~O

nd Financial Analysis

District Treasurer

North East Independent School DistrictCurrent Investment Instruments

June 30, 2013

Local Governmental Investment Pools

Commercial Paper

Municipal Bonds

U.S. Agency Securities

Certificates of Deposit (CDs)

Local Governmental Investment Pools (LGIPs) serve as vehicles for the pooled investment of public moneys of state or local governmental entities. LGIPs serve as short-term investments for funds that may be needed on a day-to-day basis.

Commercial Paper is an unsecured short-term debt instrument issued by a corporation with maturities ranging from three (3) to nine (9) months. The District's investment policy restricts investments in Commercial Paper to the highest quality credits rated superior by Moody's (P1), S&P (A1) or Fitch (F1).

Municipal Bonds are issued by a city, school, county or other governmental agency. Municipal bonds may be general obligations of the issuer or secured by specified revenues.

U.S. Agency bonds are issued by a government-sponsored agency. These securities are purchased directly by the District from investment brokerage firms registered to do business with the District. The securities are issued in the District's name, cleared through the Federal Reserve Bank system, and held in safekeeping by Frost Bank.

Certificates of Deposit are negotiable certificates in denominations of $10,000 or more. They are issued by commercial banks against funds deposited for specified periods and earn specified rates of interest.

2

Category Compliant Comments

Certification from Broker/Dealers Yes Broker/Dealer Certifications on file.

DiversityYes

Investment portfolio is diversified to reduce risk of loss.

Internal Management ReportsYes

Monthly Investment Reports are approved by the Board of Trustees.

Collateral pledgesYes

Pledged collateral provided in accordance with local investment policy.

Required Credit RatingsYes

Prudent measures are in place to liquidate a downgraded investment. No investments were downgraded.

MaturityYes

Maximum maturities in all funds are within legal limits of investment policies.

Standard of CareYes

In order of priority, investments are governed by the objectives of Safety of Principal, Liquidity and Yield .

TrainingYes

CFO, Treasurer, Treasury Accountant and Senior Director of Budgets completed 10 hours

LiquidityYes

Maintain sufficient liquidity of portfolio to meet anticipated cash flow requirements.

North East Independent School DistrictCompliance Review

June 30, 2013

Investments / SecuritiesYes

Securities purchased were authorized by the Public Funds Investment Act and the District's approved local and legal investment policy.

3

ANNUAL INVESTMENT REPORT

As required by NEISD’s investment policies, the District’s investment officers are required to provide a comprehensive report on the investment program and investment activity to the Board of Trustees annually. This report is required to include NEISD’s portfolio performance and recommendations of policies, strategies and improvements necessary to enhance the investment program. Finally, this report is required to include an investment plan for the ensuing year.

During fiscal year 2012-2013 NEISD’s general operating fund received approx-imately $673.5 million in local, state, and federal cash receipts. These receipts included approximately $105 million of Interest & Sinking tax payments for the Debt Service Fund. All deposits from the Bexar County Tax Assessor/Collector (BCTAC) are re-ceived by the General Fund, with the Interest & Sinking portion transferred to the Debt Service Fund when the BCTAC provides that data. These funds were actively managed throughout the year and invested in pools, money market funds, agency bonds, municipal bonds and highly rated commercial paper. The weighted average maturity of the General Fund as of June 30, 2013 was 226.3 days. The yield earned by this fund over the fiscal year was 0.31%.

Review of Activities

As of June 30, 2013, the ending book value of North East’s portfolio was $323,381,835. The yield earned for the District’s portfolio was 0.30% with total interest earnings of $1,042,546, while the investment pools earned an average rate of 0.13% dur-ing the fiscal year. A comprehensive benchmark analysis of NEISD’s portfolio begins on page 8 of this report.

In July 2007, NEISD received the proceeds from the $498 million bond sale. The proceeds were invested in pools, agency bonds and discount notes, and commercial pa-per. The fixed income securities were purchased with maturity dates to match the ex-pected draw down schedule of the funds. As of June 30, 2013, $16.2 million remained in investment pools to be used to complete projects.

In November 2010, NEISD received the proceeds from the issuance of $37.5 mil-lion Limited Maintenance Tax Qualified School Construction Notes. The proceeds were invested in pools, agency bonds, municipal bonds and commercial paper. The fixed in-come securities were purchased with maturity dates to match the expected draw down schedule of the funds. As of June 30, 2013, $6.2 million was in the investment pools and the book value of the fixed income securities was $739,000. All proceeds from this is-suance must be spent by November 17, 2013.

During August 2013, NEISD received proceeds from the $180.6 million bond sale. The proceeds were invested in pools, agency bonds and discount notes, municipal bonds, and commercial paper. The fixed income securities were purchased with maturity dates to match the expected draw down schedule of the funds. As of June 30, 2013, $44.7 million

4

was in the investment pools and the book value of the fixed income securities was $3.3 million.

Many investment controls are in place to ensure the safety of NEISD’s invest-ments. The Board has adopted policies and strategies that comply with the Public Funds Investment Act and provide investment officers the flexibility needed to make day-to-day investment decisions. NEISD also has cash management and investment management procedures documented for the use and training of NEISD staff. These procedures are updated as needed to account for changes in technology and processes. Contracts are in place between NEISD and its depository bank and safekeeping bank. Certifications are executed with each change in investment policies with the entities NEISD uses to invest securities -- such as the pools and brokers/dealers. NEISD keeps its investments at a third-party safekeeping bank. All trades settle on a delivery versus payment (DVP) basis which ensures that no funds leave the District’s possession until a security is placed in the District’s safekeeping account. Cash flow analyses are conducted to ensure funds are available when needed. The Office of Budget & Financial Analysis receives and files original confirmations and receipts from each investment purchase and wire transaction. The Office of Budget & Financial Analysis and the Office of Accounting Services & Payroll ensure that clear separation of duties is provided for investment and cash man-agement functions. Competitive bidding is always utilized; bids from three to five bro-kers/dealers are received before a purchasing decision is made. Periodic investment re-ports are prepared by the District’s investment officers and provided to the Board of Trustees.

Investment Controls

The policies included in this report continue to be the recommended investment policies for NEISD. The investment policies comply with the Public Funds Investment Act (PFIA). Per the PFIA, the NEISD Investment Policy emphasizes safety of principal, liquidity and addresses investment diversification, yield, and maturity and the quality and capability of investment management. Additionally, as required per the PFIA the policies include:

Investment Policies

1. A list of the types of authorized investments in which the District’s funds may be invested;

2. The maximum allowable stated maturity of any individual investment owned by the District;

3. For pooled fund groups, the maximum dollar-weighted average maturity allowed based on the stated maturity date of the portfolio;

4. Methods to monitor the market price and credit ratings of investments acquired with public funds; and

5. A requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis.

5

Each fund has a general strategy outlined within the investment policy of the Dis-trict. The primary objectives of the District’s operating funds are safety, liquidity, and maturity sufficient to meet anticipated cash flow requirements. The investment officers of the District will utilize a weekly cash flow requirement report during the year for the general operating fund budget to anticipate the cash needs. The cash budget enables the investment officers of the District to develop strategies based on interest rate forecasts to earn a higher yield than if the anticipated cash flows were not forecasted. All securities are purchased with the intent to hold to maturity.

Investment Strategies

The agency and debt service funds have safety, liquidity, and maturity sufficient to meet anticipated cash flow requirements as their primary objectives. The debt service funds have limited cash outflows annually and the dates and amounts are known; there-fore, investments of these funds are more easily matched to the actual cash outflow re-quirements. Diversification can be met through the use of an authorized investment pool. All securities are purchased with the intent to hold to maturity.

The investment strategy and primary objective for capital project fund portfolios is the assurance that anticipated cash flows are matched with adequate investment liquidi-ty for the safety of the fund and the completion of the targeted projects. A diversified portfolio structured with maturities to match anticipated cash flow is used to provide a reasonable market yield. Maturities may extend beyond one year.

The main goal of NEISD’s investment program is to ensure its safety, as well as to obtain a reasonable financial return under current market conditions, in accordance with policies. The investment officers observe financial market indicators, study finan-cial trends, and utilize available educational tools in order to maintain appropriate in-vestment strategies. Investments are purchased with the expectation of holding to maturi-ty, thereby ensuring the preservation of capital. The local government investment pool (LGIP) rates are tracked daily by the investment officers. If rates on the 30, 60, and 90 day paper are not significantly higher than the LGIP’s, then short term investments will only be made to ensure diversity in the portfolio.

Market Strategy

The recommendation for the 2013-2014 fiscal year is to continue to maintain an active management philosophy for the District’s funds. Interest earnings can be gained by actively managing the portfolio. Evaluating and modifying cash flow forecasts can improve the yield of a portfolio when current and anticipated market conditions are taken into account. In a normal yield curve environment, with low interest rates at the short end of the curve, the investment officers will have to evaluate the value of marketable securities over investment pools that may be currently earning higher rates but have non-guaranteed yields, that over time, could fall below what could be earned in fixed income securities. The investment officers continue to work with other offices in the Finance

Enhancements and Recommended Improvements

6

Department to implement processes and procedures that, when implemented, will im-prove cash flow positions and payment terms. Ultimately, these projects should increase efficiency and aid investment performance.

The investment plan for fiscal year 2013-2014 is a continuation of the 2012-2013 plan which includes monitoring of market information, interest rates, forecasted and ac-tual cash flows, and managing every fund in the portfolio on an individual, consistent, and frequent basis. Investment Officers must evaluate the market on an ongoing basis to determine where the District’s funds are best utilized in the existing market. Continuing to monitor rating changes in investments as well as changes in the District’s cash flow forecast will also be important in the coming year. The effective and efficient manage-ment of the portfolio can ensure a reasonable yield on the portfolio without exposing the District to unacceptable levels of risk.

Investment Plan for 2013-14

7

Legend:CDs Fully insured and collaterallized Certificates of DepositCOMMERCIAL PAPER Short-term promissory notes issued by a corporation, Rated at least A-1, P-1 or F-1FFCB Federal Farm Credit Bank BondsFHLB Federal Home Loan Bank BondsFHLB DISCOUNT Federal Home Loan Bank Discount NotesFHLMC Federal Home Loan Mortgage Corporation (Freddie Mac) BondsFHLMC DISCOUNT Federal Home Loan Mortgage Corporation (Freddie Mac) Discount NotesFNMA Federal National Mortgage Association (Fannie Mae) BondsFNMA DISCOUNT Federal National Mortgage Association (Fannie Mae) Discount NotesMUNICIPAL Municipal Bonds issued by state and local governmentsPOOLS Various Investment Pools and Bank of America Sweep Account

Note: Due to rounding, porfolio composition may not equal 100.0%

PORTFOLIO COMPOSITIONNORTH EAST I.S.D.

As of 06/30/12 & 06/30/13

POOLS 35.2%

CDs 0.34%

FAMCA 0.48%

FFCB 0.34%

FHLMC 0.39%

MUNICIPAL BONDS 23.7%

FHLB 1.3%

COMMERCIAL PAPER 38.3%

Portfolio Composition - 06/30/12 Book Value $289,707,393

POOLS 52.8%

CDs 0.08%

FFCB 3.1%

FNMA 1.4%

FHLMC 0.3%

MUNICIPAL BOND 20.9%

FHLB 1.7%

MONEY MARKET 6.7%



8

NORTH EAST I.S.D.As of 06/30/12 & 06/30/13

Weighted Average Maturity: 136.0 days

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

0 - 30 Days 31 - 60 Days 61 - 90 Days 91 - 180 Days 181 - 364 Days 1 - 4 Years 10+ Years

Maturity Aging - 06/30/12 vs. 06/30/13

Previous Period Current Period

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

Jul-0

8 A

ug-0

8 S

ep-0

8 O

ct-0

8 N

ov-0

8 D

ec-0

8 Ja

n-09

Fe

b-09

M

ar-0

9 A

pr-0

9 M

ay-0

9 Ju

n-09

Ju

l-09

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0 A

ug-1

0 S

ep-1

0 O

ct-1

0 N

ov-1

0 D

ec-1

0 Ja

n-11

Fe

b-11

M

ar-1

1 A

pr-1

1 M

ay-1

1 Ju

n-11

Ju

l-11

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2 A

ug-1

2 S

ep-1

2 O

ct-1

2 N

ov-1

2 D

ec-1

2 Ja

n-13

Fe

b-13

M

ar-1

3 A

pr-1

3 M

ay-1

3 Ju

n-13

NEISD Total Portfolio versus Investment Pools Yield Spread

7/31/08 - 06/30/13

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50%

Jul-0

8 A

ug-0

8 S

ep-0

8 O

ct-0

8 N

ov-0

8 D

ec-0

8 Ja

n-09

Fe

b-09

M

ar-0

9 A

pr-0

9 M

ay-0

9 Ju

n-09

Ju

l-09

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0 A

ug-1

0 S

ep-1

0 O

ct-1

0 N

ov-1

0 D

ec-1

0 Ja

n-11

Fe

b-11

M

ar-1

1 A

pr-1

1 M

ay-1

1 Ju

n-11

Ju

l-11

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2 A

ug-1

2 S

ep-1

2 O

ct-1

2 N

ov-1

2 D

ec-1

2 Ja

n-13

Fe

b-13

M

ar-1

3 A

pr-1

3 M

ay-1

3

NEISD Total Portfolio versus T-Bills Yield Spread

07/31/08 - 6/30/13

30-Day T-bill 90-Day T-bill 180-Day T-bill

9

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00% Ju

l-08

Aug-

08

Sep-

08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr-

09

May

-09

Jun-

09

Jul-0

9 Au

g-09

Se

p-09

O

ct-0

9 N

ov-0

9 D

ec-0

9 Ja

n-10

Fe

b-10

M

ar-1

0 Ap

r-10

M

ay-1

0 Ju

n-10

Ju

l-10

Aug-

10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

Jul-1

1 Au

g-11

Se

p-11

O

ct-1

1 N

ov-1

1 D

ec-1

1 Ja

n-12

Fe

b-12

M

ar-1

2 Ap

r-12

M

ay-1

2 Ju

n-12

Ju

l-12

Aug-

12

Sep-

12

Oct

-12

Nov

-12

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr-

13

May

-13

NEISD Total Portfolio versus T-Notes Yield Spread

7/31/08 - 06/30/13

1 Year T-Note 2 Year T-Note

10

GENERAL FUND ONLY

Legend:CDs Fully insured and collaterallized Certificates of DepositCOMMERCIAL PAPER Short-term promissory notes issued by a corporation, Rated at least A-1, P-1 or F-1FFCB Federal Farm Credit Bank BondsFHLB Federal Home Loan Bank BondsFHLB DISCOUNT Federal Home Loan Bank Discount NotesFHLMC Federal Home Loan Mortgage Corporation (Freddie Mac) BondsFHLMC DISCOUNT Federal Home Loan Mortgage Corporation (Freddie Mac) Discount NotesFNMA Federal National Mortgage Association (Fannie Mae) BondsFNMA DISCOUNT Federal National Mortgage Association (Fannie Mae) Discount NotesMUNICIPAL Municipal Bonds issued by state and local governmentsPOOLS Various Investment Pools and Bank of America Sweep Account

Note: Due to rounding, porfolio composition may not equal 100.0%

PORTFOLIO COMPOSITION


POOLS 25.5%

FFCB 0.34%

FHLMC 0.39%

MUNICIPAL BONDS 32.7%

FHLB 0.4%



POOLS 31.8%

FFCB 6.7%

FNMA 3.0%

FHLMC 0.7%

MUNICIPAL BOND 35.6%

FHLB 3.7%



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MATURITY AGING/PORTFOLIO PERFORMANCE


Weighted Average Maturity: 226.3 days

GENERAL FUND ONLY

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

0 - 30 Days 31 - 60 Days 61 - 90 Days 91 - 180 Days 181 - 364 Days 1 - 4 Years 10+ Years

Maturity Aging - 06/30/12 vs. 06/30/13

Previous Period Current Period

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

Jul-0

8 A

ug-0

8 S

ep-0

8 O

ct-0

8 N

ov-0

8 D

ec-0

8 Ja

n-09

Fe

b-09

M

ar-0

9 A

pr-0

9 M

ay-0

9 Ju

n-09

Ju

l-09

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb-

10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0 A

ug-1

0 S

ep-1

0 O

ct-1

0 N

ov-1

0 D

ec-1

0 Ja

n-11

Fe

b-11

M

ar-1

1 A

pr-1

1 M

ay-1

1 Ju

n-11

Ju

l-11

Aug

-11

Sep

-11

Oct

-11

Nov

-11

Dec

-11

Jan-

12

Feb-

12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-1

2 A

ug-1

2 S

ep-1

2 O

ct-1

2 N

ov-1

2 D

ec-1

2 Ja

n-13

Fe

b-13

M

ar-1

3 A

pr-1

3 M

ay-1

3 Ju

n-13

NEISD General Fund versus Investment Pools Yield Spread

7/31/08 - 06/30/13

12

CASH RECEIPTSNORTH EAST I.S.D.

For FY11, FY12, & FY13

INVESTMENT POOL PERFORMANCENORTH EAST I.S.D.

07/01/12 - 06/30/13

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

July August September October November December January February March April May June

Fiscal Year to Date General Operating Cash Receipts

FY 10-11 FY11-12 FY12-13

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

7/1/

12

7/15

/12

7/29

/12

8/12

/12

8/26

/12

9/9/

12

9/23

/12

10/7

/12

10/2

1/12

11/4

/12

11/1

8/12

12/2

/12

12/1

6/12

12/3

0/12

1/13

/13

1/27

/13

2/10

/13

2/24

/13

3/10

/13

3/24

/13

4/7/

13

4/21

/13

5/5/

13

5/19

/13

6/2/

13

6/16

/13

6/30

/13

Daily Rates of Investment Pools Fiscal Year 2012-2013

TexPool TP Prime LOGIC Lone Star CLASS TexSTAR

TexasDaily BlackRock MMF Federated Federated Prime Obs Fidelity

13

Investment Investment Purchase Maturity Face Value Principal Yield toNumber Description Date Date Invested Maturity

1999 - GENERAL OPERATING13-0001 ING Funding 07/11/12 04/05/13 10,000,000.00$ 9,948,633.30$ 0.70%13-0002 Gainesville SD 11/08/12 12/01/13 800,000.00 813,656.00 0.3913-0003 General Elec CAP Corp 11/15/12 08/09/13 12,000,000.00 11,979,530.00 0.2313-0004 Deutsche Bank FINL LLC 11/16/12 08/01/13 1,000,000.00 996,058.33 0.5613-0005 Euless TX Ref-Ser A 11/29/12 02/15/14 270,000.00 275,211.00 0.4013-0006 Louisville Met Swr Dist 12/04/12 12/04/13 5,000,000.00 5,069,550.00 0.6013-0007 San Benito - Ref 12/06/12 02/01/14 325,000.00 330,404.75 0.5513-0008 Pflugerville-TXB 12/19/12 02/15/13 870,000.00 870,348.00 0.2413-0009 FHLB 12/19/12 06/13/14 1,000,000.00 1,076,298.00 0.2213-0010 Milwaukee Cnty-Ref 12/20/12 12/01/14 500,000.00 534,370.00 0.4513-0011 Deutsche BK FIN 12/21/12 06/19/13 5,000,000.00 4,991,000.00 0.3713-0012 Weatherford TX Ref 12/27/12 03/01/14 1,000,000.00 1,019,370.00 0.3513-0013 San Antonio ISD 01/15/13 08/15/14 875,000.00 943,355.00 0.3013-0014 FFCB 01/16/13 12/24/14 2,000,000.00 1,998,800.00 0.2813-0015 FCAR I 01/22/13 10/18/13 2,000,000.00 1,993,962.44 0.4113-0018 Forsyth Cnty GA Sch Dist 01/24/13 02/01/14 500,000.00 524,165.00 0.2513-0019 Princeton NJ BRD of EDU 01/29/13 02/01/15 1,005,000.00 997,372.05 0.4313-0020 Mississippi St DEV Bank S 01/29/13 09/01/14 1,000,000.00 1,013,440.00 0.4013-0021 Beaumont TX ISD 01/30/13 02/15/15 1,000,000.00 1,049,130.00 0.3313-0022 FFCB 02/06/13 02/06/15 1,000,000.00 998,950.00 0.3013-0023 Coconino Cnty AZ UNIF Sch 02/07/13 07/01/14 600,000.00 622,008.00 0.3713-0024 Columbus OH 02/08/13 02/15/15 3,000,000.00 3,162,330.00 0.3113-0025 Pflugerville ISD 02/08/13 02/15/15 500,000.00 546,000.00 0.4213-0026 FFCB 02/08/13 07/30/14 2,000,000.00 1,998,998.00 0.2113-0027 Denton TX ISD 02/20/13 08/15/14 1,425,000.00 1,525,106.25 0.2613-0028 San Antonio TX WTR Reven 02/20/13 05/15/14 600,000.00 620,346.00 0.2513-0029 Toms River NJ 02/20/13 06/15/14 690,000.00 705,614.70 0.2813-0030 FCAR II 03/01/13 11/22/13 6,500,000.00 6,484,871.25 0.3213-0034 Flower Mound TX Ref 03/07/13 09/01/15 200,000.00 222,604.00 0.4213-0035 FNMA 03/08/13 05/27/15 2,000,000.00 2,008,800.00 0.3013-0036 San Antonio TX Elec & Gas 03/11/13 02/01/15 575,000.00 625,347.00 0.3513-0037 FNMA 03/18/13 09/18/15 2,500,000.00 2,500,000.00 0.4013-0038 FHLB 03/18/13 03/18/15 2,500,000.00 2,499,875.00 0.3013-0039 Aurora CO Ref 03/21/13 12/01/13 300,000.00 307,734.00 0.2813-0040 Hays TX Consol ISD Ref 03/22/13 08/15/14 300,000.00 319,554.00 0.3213-0041 Leander TX ISD Prem Cap A 03/22/13 08/15/14 1,000,000.00 996,230.00 0.2713-0042 Dallas TX CTFS Oblig 04/08/13 02/15/15 1,985,000.00 2,066,365.15 0.2813-0043 McKinney TX RFBE B/E 04/09/13 08/15/15 490,000.00 508,198.60 0.4113-0045 FFCB 04/15/13 04/15/15 2,000,000.00 1,999,200.00 0.2713-0046 FHLB 04/18/13 11/20/15 2,000,000.00 2,010,260.00 0.3013-0047 Horry Cnty, SC Sch Dist 04/30/13 03/01/15 1,925,000.00 2,090,896.50 0.2913-0048 Regl Transprtn Dist CO 04/30/13 11/01/14 400,000.00 400,376.00 0.3813-0049 NY State Dorm Auth 05/07/13 03/15/14 1,325,000.00 1,378,742.00 0.2713-0050 Hoover AL Ref-Warrants-Se 05/09/13 03/01/14 635,000.00 643,991.60 0.2513-0052 FFCB 05/15/13 12/24/14 2,000,000.00 2,001,280.00 0.2113-0053 Goose Creek TX ISD 05/16/13 02/15/15 1,960,000.00 2,120,759.20 0.2913-0054 Hays Cnty TX Ref Limited 05/17/13 02/15/15 1,025,000.00 1,039,944.50 0.4113-0056 Port of Seattle WA 05/24/13 12/01/15 500,000.00 557,330.00 0.4213-0057 Bank of Nova Scotia NY 05/24/13 02/14/14 3,000,000.00 2,995,566.67 0.20

PURCHASESNORTH EAST I.S.D.

07/01/12 - 06/30/13

14

Investment Investment Purchase Maturity Face Value Principal Yield toNumber Description Date Date Invested Maturity

PURCHASESNORTH EAST I.S.D.

07/01/12 - 06/30/13

13-0063 Midlothian TX ISD 05/29/13 02/15/15 1,955,000.00 2,106,434.30 0.4513-0064 FHLMC 06/03/13 09/04/15 1,000,000.00 1,002,241.00 0.3513-0066 ING (US) Funding LLC 06/18/13 10/15/13 3,000,000.00 2,998,215.00 0.1813-0069 FFCB 06/24/13 12/24/14 1,000,000.00 999,750.00 0.2313-0070 West Virginia St-St Rd 06/27/13 06/01/14 1,000,000.00 1,043,980.00 0.251999 - GENERAL OPERATING TOTAL 99,035,000.00 100,532,552.59 0.40

2409 - SCHOOL NUTRITION SERVICES13-0031 FCAR II 03/01/13 11/22/13 1,000,000.00 997,672.50 0.3213-0033 Salt Lk Cnty, UT 03/01/13 06/15/14 200,000.00 209,378.00 0.3513-0058 Bank of Nova Scotia NY 05/24/13 02/14/14 1,000,000.00 998,522.22 0.2013-0071 Fort Worth TX CTFS Oblig- 06/27/13 03/01/14 695,000.00 717,483.25 0.222409 - SCHOOL NUTRITION SERVICES TOTAL 2,895,000.00 2,923,055.97 0.30

5119 - DEBT SERVICE13-0016 RABOBANK USA FIN Corp 01/24/13 07/15/13 10,000,000.00 9,989,011.11 0.2313-0017 Toyota Motor Credit Corp 01/24/13 07/22/13 1,000,000.00 998,806.67 0.2413-0067 Carrol TX Indep Sch Dist 06/20/13 02/15/14 425,000.00 436,020.25 0.275119 - DEBT SERVICE TOTAL 11,425,000.00 11,423,838.03 0.23

6219 - 2012 BOND FUND13-0051 Maryland ST EDC 05/09/13 06/01/13 2,500,000.00 2,507,875.00 0.2113-0055 Ohio St OH Ref-Hgr Ed-Ser 05/20/13 08/01/13 500,000.00 503,690.00 0.2513-0060 Massachusetts ST Cons Ln- 05/28/13 09/01/13 1,000,000.00 1,012,380.00 0.2013-0061 Univ of Texas FING SYS 05/29/13 08/15/13 500,000.00 505,270.00 0.2513-0062 Texas St Ref-Pub Fin Auth 05/29/13 10/01/13 300,000.00 304,875.00 0.2013-0068 Northhampton Cnty PA 06/21/13 10/01/13 1,000,000.00 1,013,310.00 0.206219 - 2012 BOND FUND TOTAL 5,800,000.00 5,847,400.00 0.22

7539 - HEALTH INSURANCE13-0032 FCAR II 03/01/13 11/22/13 500,000.00 498,836.25 0.3213-0044 Grapevine TX Ref 04/11/13 02/15/14 385,000.00 390,197.50 0.4013-0059 Bank of Nova Scotia NY 05/24/13 02/14/14 1,000,000.00 998,522.22 0.207539 - HEALTH INSURANCE TOTAL 1,885,000.00 1,887,555.97 0.30

7739 - DENTAL13-0065 Clark Cnty NV 06/06/13 11/01/13 250,000.00 252,765.00 0.257739 - DENTAL TOTAL 250,000.00 252,765.00 0.25

7939 - WORKERS' COMPENSATION13-0072 Fort Worth TX CTFS Oblig- 06/27/13 03/01/14 500,000.00 516,175.00 0.227939 - WORKERS' COMPENSATION TOTAL 500,000.00 516,175.00 0.22

SUMMARY TOTALS: 121,790,000.00$ 123,383,342.56$

15

Investment Investment Purchase Maturity Call Face Value Principal Yield toNumber Description Date Date Date Invested Maturity

1999 - GENERAL OPERATING12-0041-01 RaboBank USA Fin 01/09/12 07/09/12 Open 25,000,000.00$ 24,921,386.11$ 0.63%12-0051-01 FCAR Owner Trust CP 02/22/12 08/01/12 Open 15,000,000.00 14,968,470.83 0.48 12-0059-01 Abbey Nat NA LLC 03/23/12 12/17/12 Open 10,000,000.00 9,929,013.89 0.97 12-0069-01 FCAR OWNER TURST II 06/06/12 03/01/13 Open 2,000,000.00 1,992,510.89 0.51 13-0001-01 ING Funding 07/11/12 04/05/13 Open 10,000,000.00 9,948,633.30 0.70 13-0011-01 Deutsche BK FIN 12/21/12 06/19/13 Open 5,000,000.00 4,991,000.00 0.37 12-0038-01 FFCB 12/12/11 12/12/14 12/12/12 1,000,000.00 1,000,000.00 0.89 11-0003-01 FHLB 10/01/10 06/28/13 Open 500,000.00 500,000.00 0.75 12-0040-01 FHLMC 12/19/11 12/19/14 12/19/12 1,000,000.00 1,000,000.00 1.00 11-0067-01 AZ Pwr - Crossover 05/16/11 10/01/12 Open 1,485,000.00 1,581,094.35 0.52 12-0018-01 Univ of HI - Ser A 10/13/11 07/15/12 Open 2,000,000.00 2,079,500.00 0.23 12-0026-01 Jefferson SWR - D 10/28/11 08/01/12 Open 2,500,000.00 2,587,925.00 0.35 12-0027-01 Chicago TXBL Note 11/01/11 12/05/12 Open 8,000,000.00 8,000,000.00 0.80 12-0036-01 MS Small Enter 12/05/11 12/01/12 Open 5,670,000.00 5,910,351.30 0.40 12-0047-01 AL Wtr Polltn Ln 01/27/12 08/15/12 Open 1,000,000.00 1,015,080.00 0.50 12-0048-02 NJ Econ Dev Auth 01/30/12 09/01/12 Open 105,000.00 105,948.15 0.60 12-0061-01 Illinois - TXBL 03/27/12 01/01/13 Open 1,000,000.00 1,019,080.00 0.80 12-0065-01 Central Sq CSD - R 05/03/12 05/15/13 Open 2,750,000.00 2,790,425.00 0.57 12-0075-01 Michigan HSG DEV Auth 06/15/12 11/01/13 Open 455,000.00 459,468.10 1.38 13-0008-01 Pflugerville-TXB 12/19/12 02/15/13 Open 870,000.00 870,348.00 0.24 1999 - GENERAL OPERATING TOTAL 95,335,000.00 95,670,234.92 0.67

2409 - SCHOOL NUTRITION SERVICES12-0073-01 Discover Bank 06/13/12 06/13/13 Open 248,000.00 248,000.00 0.55 12-0029-01 Chicago TXBL Note 11/01/11 12/05/12 Open 1,000,000.00 1,000,000.00 0.80 12-0046-01 NYC - TXB - F2 01/20/12 12/01/12 Open 1,500,000.00 1,516,935.00 0.31 12-0050-01 NYC 02/06/12 03/01/13 Open 2,000,000.00 2,036,200.00 0.55 2409 - SCHOOL NUTRITION SERVICES TOTAL 4,748,000.00 4,801,135.00 0.53

5119 - DEBT SERVICE12-0019-01 Prudential Funding 10/13/11 07/06/12 Open 1,000,000.00 996,595.75 0.47 12-0043-01 ING Funding 01/18/12 07/30/12 Open 15,000,000.00 14,949,236.67 0.64 12-0049-01 Deutsche BK Fin 02/02/12 07/30/12 Open 10,000,000.00 9,968,625.28 0.64 12-0058-01 Credit Agri NA 03/22/12 07/26/12 Open 10,000,000.00 9,980,960.00 0.55 12-0064-01 Natixis US Fin 04/13/12 07/30/12 Open 15,000,000.00 14,977,500.00 0.51 11-0065-01 Bartow Cnty 05/11/11 08/01/12 Open 1,000,000.00 1,052,860.00 0.65 12-0028-01 Chicago TXBL Note 11/01/11 12/05/12 Open 1,000,000.00 1,000,000.00 0.80 5119 - DEBT SERVICE TOTAL 53,000,000.00 52,925,777.70 0.61

6019 - QSCB PROJECTS12-0015-01 Prudential Funding 10/13/11 07/06/12 Open 1,000,000.00 996,595.75 0.47 12-0071-01 FCAR OWNER TURST II 06/06/12 03/01/13 Open 2,000,000.00 1,992,510.89 0.51 11-0047-01 FAMCA 01/14/11 08/10/12 Open 1,400,000.00 1,431,255.59 0.67 11-0016-01 FL TPK-REF-DEPT 11/24/10 07/01/12 Open 1,000,000.00 1,065,080.00 0.90 11-0017-01 NY TWY BRDG TR 11/24/10 04/01/13 Open 200,000.00 219,762.00 0.99 11-0018-01 LOWER CO RIV AUT 11/24/10 05/15/13 Open 165,000.00 179,609.10 1.35 11-0020-01 Beeville ISD 11/23/10 08/15/12 Open 335,000.00 359,089.85 0.80 11-0027-01 THREE RVRS PK DI 12/09/10 02/01/13 Open 715,000.00 730,122.25 1.00 12-0057-01 Cuyahoga Econ-TX 03/01/12 12/01/12 Open 4,600,000.00 4,654,418.00 0.29 6019 - QSCB PROJECTS TOTAL 11,415,000.00 11,628,443.43 0.51

MATURITIES/CALLS/SALESNORTH EAST I.S.D.

07/01/12 - 06/30/13

16

Investment Investment Purchase Maturity Call Face Value Principal Yield toNumber Description Date Date Date Invested Maturity

MATURITIES/CALLS/SALESNORTH EAST I.S.D.

07/01/12 - 06/30/13

6219 - 2012 BOND FUND13-0051-01 Maryland ST EDC 05/09/13 06/01/13 Open 2,500,000.00 2,507,875.00 0.21 6219 - 2012 BOND FUND Total 2,500,000.00 2,507,875.00 0.21

6719 - 2007 BOND FUND12-0016-01 Prudential Funding 10/13/11 07/06/12 Open 1,000,000.00 996,595.75 0.47 12-0070-01 FCAR OWNER TURST II 06/06/12 03/01/13 Open 3,000,000.00 2,988,766.33 0.51 09-0009-01 FHLB 09/29/08 09/14/12 Open 3,250,000.00 3,319,637.26 3.91 6719 - 2007 BOND FUND TOTAL 7,250,000.00 7,304,999.34 1.35

7539 - HEALTH INSURANCE12-0069-01 FCAR OWNER TURST II 06/06/12 03/01/13 Open 1,000,000.00 996,255.44 0.51 12-0046-01 NYC - TXB - F2 01/20/12 12/01/12 Open 1,500,000.00 1,516,935.00 0.31 12-0062-01 Illinois - TXBL 03/27/12 01/01/13 Open 1,000,000.00 1,019,080.00 0.80 7539 - HEALTH INSURANCE TOTAL 3,500,000.00 3,532,270.44 0.52

7739 - DENTAL12-0072-01 Doral Bank 06/08/12 06/07/13 Open 248,000.00 248,000.00 0.50 12-0060-01 Garland ISD - CABS 03/27/12 02/15/13 02/15/13 58,465.00 58,130.00 0.65 7739 - DENTAL TOTAL 306,465.00 306,130.00 0.52

7939 - WORKERS' COMPENSATION12-0074-01 Beal Bank SSB TX 06/13/12 06/12/13 Open 248,000.00 248,000.00 0.50 12-0063-01 Illinois - TXBL 03/27/12 01/01/13 Open 1,000,000.00 1,019,080.00 0.80 7939 - WORKERS' COMPENSATION TOTAL 1,248,000.00 1,267,080.00 0.71

SUMMARY TOTALS: 179,302,465.00$ 179,943,945.83$

17

Investment Beginning Ending Change inDescription Book Balance Book Balance Book Balance

1999 - GENERAL OPERATINGTexPool-General Operating 6,455,554.32$ 10,208,829.29$ 3,753,274.97$ LOGIC-General Operating 12,674,460.97 26,912,039.26 14,237,578.29 TexPool-State Payments 18,351.52 0.04 (18,351.48) TexasTERM-General Fund 2,000,000.00 - (2,000,000.00) TexPool Prime-Gen. Fund 11,547,632.56 9,681,101.84 (1,866,530.72) TexPool-General Operating 500,201.20 500,895.37 694.17 1999 - GENERAL OPERATING TOTAL 33,196,200.57 47,302,865.80 14,106,665.23

2409 - SCHOOL NUTRITION SERVICESTexPool-Food Service 179.40 1,602,051.30 1,601,871.90 LOGIC-Food Service 1,841,291.55 1,134,531.35 (706,760.20) TexPool Prime-Food Svc 2,194,588.05 2,284,983.35 90,395.30 2409 - SCHOOL NUTRITION SERVICES TOTAL 4,036,059.00 5,021,566.00 985,507.00

5019 - QSCB - DEBT SERVICETexPool Prime-5019 Debt S 27,180.34 1,782,163.32 1,754,982.98 5019 - QSCB - DEBT SERVICE TOTAL 27,180.34 1,782,163.32 1,754,982.98

5119 - DEBT SERVICETexPool-Debt Service 18.10 28,330,086.45 28,330,068.35 LOGIC-Debt Service 13,715,651.41 3,284,983.18 (10,430,668.23) TexPool Prime-Debt Svc 5,395,451.28 29,802,272.98 24,406,821.70 5119 - DEBT SERVICE TOTAL 19,111,120.79 61,417,342.61 42,306,221.82

6019 - QSCB BOND FUNDTexPool Prime-6019 QSCB P 13,102,376.94 6,246,276.53 (6,856,100.41) 6019 - QSCB BOND FUND TOTAL 13,102,376.94 6,246,276.53 (6,856,100.41)

6219 - 2012 BOND FUNDFidelity - CP 621 2012 b - 21,621,336.86 21,621,336.86 TexPool Prime - 6219 2012 - 2,852,984.54 2,852,984.54 LOGIC-2012 Bond - 11,209,506.40 11,209,506.40 TexPool - 9,067,819.87 9,067,819.87 6219 - 2012 BOND FUND TOTAL - 44,751,647.67 44,751,647.67

6719 - CAPITAL PROJECTS $498 MILLIONTexPool-CP $498 Million 213,348.75 15,756,548.52 15,543,199.77 TexPool Prime - 6719 26,797,345.90 299,854.98 (26,497,490.92) 6719 - CAPITAL PROJECTS $498 MILLION TOTAL 27,010,694.65 16,056,403.50 (10,954,291.15)

6729 - CAPITAL PROJECTS $498 MILLIONTexPool Prime - 6729 632,713.92 96,494.50 (536,219.42) 6729 - CAPITAL PROJECTS $498 MILLION TOTAL 632,713.92 96,494.50 (536,219.42)

CHANGES IN MANAGED POOL BALANCESNORTH EAST I.S.D.

07/01/12 - 06/30/13

18

Investment Beginning Ending Change inDescription Book Balance Book Balance Book Balance

CHANGES IN MANAGED POOL BALANCESNORTH EAST I.S.D.

07/01/12 - 06/30/13

7539 - HEALTH INSURANCETexPool-Health Insurance 119.04 1,126,885.34 1,126,766.30 LOGIC-Health Insurance 3,422,932.32 1,493,019.73 (1,929,912.59) TexPool Prime-Health Ins. 131,423.59 4,814,698.73 4,683,275.14 7539 - HEALTH INSURANCE TOTAL 3,554,474.95 7,434,603.80 3,880,128.85

7739 - DENTALLOGIC-Dental 680,949.63 287,569.05 (393,380.58) TexPool Prime-Dental 21,765.41 431,243.58 409,478.17 7739 - DENTAL TOTAL 702,715.04 718,812.63 16,097.59

7939 - WORKERS' COMPENSATIONTexPool-Workers' Comp 303.53 303.53 - LOGIC-Workers' Comp 586,741.95 1,103,660.76 516,918.81 TexPool Prime-Work Comp 15,815.47 481,245.06 465,429.59 7939 - WORKERS' COMPENSATION TOTAL 602,860.95 1,585,209.35 982,348.40

SUMMARY TOTALS: 101,976,397.15$ 192,413,385.71$ 90,436,988.56$

19

Investment Investment Purchase Maturity Face Value Beginning Ending Change in Beginning Ending Change in Int/Div AccruedNumber Description Date Date Market Value Market Value Market Value Book Value Book Value Book Value in the Period

1999 - GENERAL OPERATING11-0003-01 FHLB 10/01/10 06/28/13 500,000.00$ 502,370.00$ -$ (2,370.00)$ 500,000.00$ -$ -$ -$ 11-0067-01 AZ Pwr - Crossover 05/16/11 10/01/12 1,485,000.00 1,502,894.25 - (17,894.25) 1,502,471.70 - (17,471.70) - 12-0004 North TX TWY Auth 07/25/11 09/01/13 1,000,000.00 1,016,600.00 1,003,480.00 (13,120.00) 1,017,694.44 1,002,527.78 (15,166.66) 8,136.67 12-0018-01 Univ of HI - Ser A 10/13/11 07/15/12 2,000,000.00 2,002,960.00 - (2,960.00) 2,004,091.91 - (4,091.91) - 12-0020 Lewisvile ISD 10/17/11 08/15/13 2,000,000.00 1,987,200.00 1,998,660.00 11,460.00 1,986,615.20 1,998,542.25 11,927.05 - 12-0026-01 Jefferson SWR - D 10/28/11 08/01/12 2,500,000.00 2,507,875.00 - (7,875.00) 2,509,662.09 - (9,662.09) - 12-0027-01 Chicago TXBL Note 11/01/11 12/05/12 8,000,000.00 8,007,600.00 - (7,600.00) 8,000,000.00 - - - 12-0034 North TX TWY Auth 11/18/11 09/01/13 4,500,000.00 4,574,700.00 4,515,660.00 (59,040.00) 4,589,591.29 4,512,798.76 (76,792.53) 36,615.00 12-0035 NJ Sports - Ref - B 12/02/11 03/01/14 610,000.00 607,517.30 611,598.20 4,080.90 604,652.51 607,861.00 3,208.49 3,070.33 12-0036-01 MS Small Enter 12/05/11 12/01/12 5,670,000.00 5,764,689.00 - (94,689.00) 5,771,271.62 - (101,271.62) - 12-0038-01 FFCB 12/12/11 12/12/14 1,000,000.00 1,001,920.00 - (1,920.00) 1,000,000.00 - - - 12-0040-01 FHLMC 12/19/11 12/19/14 1,000,000.00 1,001,580.00 - (1,580.00) 1,000,000.00 - - - 12-0041-01 RaboBank USA Fin 01/09/12 07/09/12 25,000,000.00 24,998,889.50 - 1,110.50 24,996,544.44 - 3,455.56 - 12-0042 NJSHSG 01/09/12 10/01/13 535,000.00 535,823.90 535,160.50 (663.40) 536,161.17 535,232.23 (928.94) 1,170.31 12-0047-01 AL Wtr Polltn Ln 01/27/12 08/15/12 1,000,000.00 1,002,990.00 - (2,990.00) 1,003,351.11 - (3,351.11) - 12-0048-02 NJ Econ Dev Auth 01/30/12 09/01/12 105,000.00 105,211.05 - (211.05) 105,269.62 - (269.62) - 12-0051-01 FCAR Owner Trust CP 02/22/12 08/01/12 15,000,000.00 14,999,480.70 - 519.30 14,993,929.17 - 6,070.83 - 12-0052 HOUFAC 02/23/12 09/01/13 1,000,000.00 1,050,940.00 1,007,480.00 (43,460.00) 1,053,327.74 1,007,618.25 (45,709.49) 16,666.67 12-0053 Miami-Dade Cnty 02/24/12 08/01/14 900,000.00 967,662.00 942,174.00 (25,488.00) 972,926.17 937,921.61 (35,004.56) 18,750.00 12-0054 Cook Cnty Ill 02/24/12 12/01/14 275,000.00 265,416.25 271,383.75 5,967.50 267,498.54 270,602.59 3,104.05 - 12-0056 Hudson Cnty NJ 02/27/12 09/01/14 680,000.00 760,974.40 724,818.80 (36,155.60) 767,075.96 726,887.05 (40,188.91) 16,977.33 12-0059-01 Abbey Nat NA LLC 03/23/12 12/17/12 10,000,000.00 9,993,335.00 - (2,335.00) 9,955,402.78 - 30,347.22 - 12-0061-01 Illinois - TXBL 03/27/12 01/01/13 1,000,000.00 1,012,520.00 - (12,520.00) 1,012,534.31 - (12,534.31) - 12-0065-01 Central Sq CSD - R 05/03/12 05/15/13 2,750,000.00 2,778,957.50 - (28,957.50) 2,784,122.18 - (34,122.18) - 12-0068 Central Dauphin 05/22/12 12/01/13 4,095,000.00 4,238,693.55 4,140,577.35 (98,116.20) 4,243,435.92 4,138,657.62 (104,778.30) 10,237.50 12-0069-01 FCAR OWNER TURST II 06/06/12 03/01/13 2,000,000.00 1,997,542.30 - 2,457.70 1,993,209.50 - 6,790.50 - 12-0075 Michigan HSG DEV Auth 06/15/12 11/01/13 1,415,000.00 1,421,367.50 1,417,688.50 (3,679.00) 1,428,447.06 1,418,361.77 (10,085.29) 4,952.50 12-0075-01 Michigan HSG DEV Auth 06/15/12 11/01/13 455,000.00 457,047.50 - (2,047.50) 459,323.97 - (2,432.23) - 13-0002 Gainesville SD 11/08/12 12/01/13 800,000.00 - 804,072.00 (9,584.00) - 805,348.30 (8,307.70) 1,333.33 13-0003 General Elec CAP Corp 11/15/12 08/09/13 12,000,000.00 - 11,999,768.52 20,238.52 - 11,997,010.00 17,480.00 - 13-0004 Deutsche Bank FINL LLC 11/16/12 08/01/13 1,000,000.00 - 999,986.97 3,928.64 - 999,526.39 3,468.06 - 13-0005 Euless TX Ref-Ser A 11/29/12 02/15/14 270,000.00 - 272,835.00 (2,376.00) - 272,677.21 (2,533.79) 2,040.00 13-0006 Louisville Met Swr Dist 12/04/12 12/04/13 5,000,000.00 - 5,036,850.00 (32,700.00) - 5,029,558.75 (39,991.25) 57,500.00 13-0007 San Benito - Ref 12/06/12 02/01/14 325,000.00 - 327,687.75 (2,717.00) - 327,734.93 (2,669.82) 2,708.33 13-0009 FHLB 12/19/12 06/13/14 1,000,000.00 - 1,048,650.00 (27,648.00) - 1,048,865.01 (27,432.99) 2,687.50 13-0010 Milwaukee Cnty-Ref 12/20/12 12/01/14 500,000.00 - 525,810.00 (8,560.00) - 525,005.28 (9,364.72) 1,666.67 13-0012 Weatherford TX Ref 12/27/12 03/01/14 1,000,000.00 - 1,011,240.00 (8,130.00) - 1,010,964.15 (8,405.85) 6,666.67 13-0013 San Antonio ISD 01/15/13 08/15/14 875,000.00 - 923,553.75 (19,801.25) - 923,448.11 (19,906.89) 17,354.17 13-0014 FFCB 01/16/13 12/24/14 2,000,000.00 - 1,996,840.00 (1,960.00) - 1,999,083.67 283.67 97.22 13-0015 FCAR I 01/22/13 10/18/13 2,000,000.00 - 1,999,718.78 5,756.34 - 1,997,553.55 3,591.11 - 13-0018 Forsyth Cnty GA Sch Dist 01/24/13 02/01/14 500,000.00 - 513,940.00 (10,225.00) - 513,827.38 (10,337.62) 10,416.67 13-0019 Princeton NJ BRD of EDU 01/29/13 02/01/15 1,005,000.00 - 994,618.35 (2,753.70) - 998,977.93 1,605.88 212.17 13-0020 Mississippi St DEV Bank S 01/29/13 09/01/14 1,000,000.00 - 1,003,110.00 (10,330.00) - 1,009,868.53 (3,571.47) 4,166.67 13-0021 Beaumont TX ISD 01/30/13 02/15/15 1,000,000.00 - 1,035,030.00 (14,100.00) - 1,039,036.63 (10,093.37) 10,388.89 13-0022 FFCB 02/06/13 02/06/15 1,000,000.00 - 997,790.00 (1,160.00) - 1,000,000.00 1,050.00 1,006.94 13-0023 Coconino Cnty AZ UNIF Sch 02/07/13 07/01/14 600,000.00 - 616,014.00 (5,994.00) - 615,720.00 (6,288.00) 7,200.00 13-0024 Columbus OH 02/08/13 02/15/15 3,000,000.00 - 3,121,110.00 (41,220.00) - 3,130,399.89 (31,930.11) 34,000.00

07/01/12 - 06/30/13NORTH EAST I.S.D.

CHANGES IN VALUES

20


07/01/12 - 06/30/13NORTH EAST I.S.D.

CHANGES IN VALUES

13-0025 Pflugerville ISD 02/08/13 02/15/15 500,000.00 - 535,990.00 (10,010.00) - 536,951.86 (9,048.14) 9,444.44 13-0026 FFCB 02/08/13 07/30/14 2,000,000.00 - 1,999,060.00 62.00 - 2,000,000.00 1,002.00 1,430.00 13-0027 Denton TX ISD 02/20/13 08/15/14 1,425,000.00 - 1,501,422.75 (23,683.50) - 1,500,594.25 (24,512.00) 25,927.08 13-0028 San Antonio TX WTR Revenu 02/20/13 05/15/14 600,000.00 - 614,382.00 (5,964.00) - 614,356.50 (5,989.50) 2,300.00 13-0029 Toms River NJ 02/20/13 06/15/14 690,000.00 - 701,184.90 (4,429.80) - 701,308.33 (4,306.37) 613.33 13-0030 FCAR II 03/01/13 11/22/13 6,500,000.00 - 6,498,215.10 13,343.85 - 6,491,810.00 6,938.75 - 13-0034 Flower Mound TX Ref 03/07/13 09/01/15 200,000.00 - 218,866.00 (3,738.00) - 219,721.61 (2,882.39) 3,166.67 13-0035 FNMA 03/08/13 05/27/15 2,000,000.00 - 2,003,260.00 (5,540.00) - 2,007,555.44 (1,244.56) 944.44 13-0036 San Antonio TX Elec & Gas 03/11/13 02/01/15 575,000.00 - 615,612.25 (9,734.75) - 617,202.63 (8,144.37) 8,784.72 13-0037 FNMA 03/18/13 09/18/15 2,500,000.00 - 2,493,775.00 (6,225.00) - 2,500,000.00 - 2,861.11 13-0038 FHLB 03/18/13 03/18/15 2,500,000.00 - 2,497,750.00 (2,125.00) - 2,499,946.53 71.53 2,145.83 13-0039 Aurora CO Ref 03/21/13 12/01/13 300,000.00 - 304,695.00 (3,039.00) - 304,640.40 (3,093.60) 1,000.00 13-0040 Hays TX Consol ISD Ref 03/22/13 08/15/14 300,000.00 - 316,089.00 (3,465.00) - 315,705.40 (3,848.60) 4,125.00 13-0041 Leander TX ISD Prem Cap A 03/22/13 08/15/14 1,000,000.00 - 996,770.00 540.00 - 996,972.01 742.01 - 13-0042 Dallas TX CTFS Oblig 04/08/13 02/15/15 1,985,000.00 - 2,046,237.25 (20,127.90) - 2,056,240.25 (10,124.90) 11,441.32 13-0043 McKinney TX RFBE B/E 04/09/13 08/15/15 490,000.00 - 504,572.60 (3,626.00) - 506,434.67 (1,763.93) 2,232.22 13-0045 FFCB 04/15/13 04/15/15 2,000,000.00 - 1,993,340.00 (5,860.00) - 1,999,875.56 675.56 1,055.56 13-0046 FHLB 04/18/13 11/20/15 2,000,000.00 - 1,997,820.00 (12,440.00) - 2,009,456.37 (803.63) 1,138.89 13-0047 Horry Cnty, SC Sch Dist 04/30/13 03/01/15 1,925,000.00 - 2,067,777.25 (23,119.25) - 2,075,586.84 (15,309.66) 16,309.03 13-0048 Regl Transprtn Dist CO 04/30/13 11/01/14 400,000.00 - 399,092.00 (1,284.00) - 400,333.60 (42.40) 296.87 13-0049 NY State Dorm Auth 05/07/13 03/15/14 1,325,000.00 - 1,366,499.00 (12,243.00) - 1,369,319.70 (9,422.30) 9,977.25 13-0050 Hoover AL Ref-Warrants-Se 05/09/13 03/01/14 635,000.00 - 641,927.85 (2,063.75) - 642,390.36 (1,601.24) 1,834.44 13-0052 FFCB 05/15/13 12/24/14 2,000,000.00 - 1,996,840.00 (4,440.00) - 2,001,178.31 (101.69) 97.22 13-0053 Goose Creek TX ISD 05/16/13 02/15/15 1,960,000.00 - 2,099,512.80 (21,246.40) - 2,109,258.14 (11,501.06) 12,250.00 13-0054 Hays Cnty TX Ref Limited 05/17/13 02/15/15 1,025,000.00 - 1,034,665.75 (5,278.75) - 1,038,897.43 (1,047.07) 1,565.97 13-0056 Port of Seattle WA 05/24/13 12/01/15 500,000.00 - 548,025.00 (9,305.00) - 554,991.29 (2,338.71) 2,083.33 13-0057 Bank of Nova Scotia NY 05/24/13 02/14/14 3,000,000.00 - 2,997,819.90 2,253.23 - 2,996,200.00 633.33 - 13-0063 Midlothian TX ISD 05/29/13 02/15/15 1,955,000.00 - 2,092,182.35 (14,251.95) - 2,098,567.58 (7,866.72) 8,688.89 13-0064 FHLMC 06/03/13 09/04/15 1,000,000.00 - 999,400.00 (2,841.00) - 1,002,163.63 (77.37) 350.00 13-0066 ING (US) Funding LLC 06/18/13 10/15/13 3,000,000.00 - 2,999,606.94 1,391.94 - 2,998,410.00 195.00 - 13-0069 FFCB 06/24/13 12/24/14 1,000,000.00 - 997,830.00 (1,920.00) - 999,769.44 19.44 40.83 13-0070 West Virginia St-St Rd 06/27/13 06/01/14 1,000,000.00 - 1,042,730.00 (1,250.00) - 1,043,453.29 (526.71) 555.56 1999 - GENERAL OPERATING TOTAL 179,640,000.00 97,064,756.70 101,520,256.91 (811,071.08) 97,058,610.40 101,610,908.04 (717,631.91) 408,681.54

2409 - SCHOOL NUTRITION SERVICES12-0029-01 Chicago TXBL Note 11/01/11 12/05/12 1,000,000.00 1,000,950.00 - (950.00) 1,000,000.00 - - - 12-0046-01 NYC - TXB - F2 01/20/12 12/01/12 1,500,000.00 1,507,590.00 - (7,590.00) 1,508,168.00 - (8,168.00) - 12-0050-01 NYC 02/06/12 03/01/13 2,000,000.00 2,024,980.00 - (24,980.00) 2,022,566.23 - (22,566.23) - 12-0067 RI H/E Pub Schs 05/10/12 05/05/14 500,000.00 536,065.00 519,385.00 (16,680.00) 537,713.34 517,266.35 (20,446.99) 3,194.44 12-0073-01 Discover Bank 06/13/12 06/13/13 248,000.00 248,141.21 - (141.21) 248,000.00 - - - 13-0031 FCAR II 03/01/13 11/22/13 1,000,000.00 - 999,725.40 2,052.90 - 998,740.00 1,067.50 - 13-0033 Salt Lk Cnty, UT 03/01/13 06/15/14 200,000.00 - 207,228.00 (2,150.00) - 206,952.66 (2,425.34) 355.56 13-0058 Bank of Nova Scotia NY 05/24/13 02/14/14 1,000,000.00 - 999,273.30 751.08 - 998,733.33 211.11 - 13-0071 Fort Worth TX CTFS Oblig- 06/27/13 03/01/14 695,000.00 - 716,885.55 (597.70) - 717,114.67 (368.58) 386.11 2409 - SCHOOL NUTRITION SERVICES TOTAL 8,143,000.00 5,317,726.21 3,442,497.25 (50,284.93) 5,316,447.57 3,438,807.01 (52,696.53) 3,936.11

21


07/01/12 - 06/30/13NORTH EAST I.S.D.

CHANGES IN VALUES

5019 - QSCB - Debt Service11-0033 Leander ISD - CABS 06/30/11 08/15/26 715,000.00 415,272.00 434,412.55 19,140.55 383,378.90 424,207.76 40,828.86 - 11-0041 San Antonio ISD 06/30/11 08/15/25 1,000,000.00 1,206,570.00 1,147,620.00 (58,950.00) 1,000,000.00 1,000,000.00 - 20,524.67 5019 - QSCB - DEBT SERVICE TOTAL 1,715,000.00 1,621,842.00 1,582,032.55 (39,809.45) 1,383,378.90 1,424,207.76 40,828.86 20,524.67

5119 - DEBT SERVICE11-0034 Leander ISD - CABS 12/16/10 08/15/15 1,000,000.00 979,410.00 985,320.00 5,910.00 934,494.70 955,475.04 20,980.34 - 11-0065-01 Bartow Cnty 05/11/11 08/01/12 1,000,000.00 1,003,410.00 - (3,410.00) 1,003,604.09 - (3,604.09) - 12-0005 North TX TWY Auth 07/28/11 09/01/13 1,000,000.00 1,016,600.00 1,003,480.00 (13,120.00) 1,017,764.94 1,002,537.85 (15,227.09) 8,136.67 12-0019-01 Prudential Funding 10/13/11 07/06/12 1,000,000.00 999,967.24 - 32.76 999,936.25 - 63.75 - 12-0028-01 Chicago TXBL Note 11/01/11 12/05/12 1,000,000.00 1,000,950.00 - (950.00) 1,000,000.00 - - - 12-0037 Corpus Christi ISD 12/05/11 08/15/13 750,000.00 781,185.00 753,412.50 (27,772.50) 779,987.07 753,265.92 (26,721.15) 11,333.33 12-0043-01 ING Funding 01/18/12 07/30/12 15,000,000.00 14,999,428.35 - 571.65 14,992,411.67 - 7,588.33 - 12-0049-01 Deutsche BK Fin 02/02/12 07/30/12 10,000,000.00 9,999,618.90 - 381.10 9,994,916.94 - 5,083.06 - 12-0058-01 Credit Agri NA 03/22/12 07/26/12 10,000,000.00 9,999,488.20 - 511.80 9,996,222.22 - 3,777.78 - 12-0064-01 Natixis US Fin 04/13/12 07/30/12 15,000,000.00 14,999,428.35 - 571.65 14,993,958.33 - 6,041.67 - 13-0016 RABOBANK USA FIN Corp 01/24/13 07/15/13 10,000,000.00 - 9,999,585.90 10,574.79 - 9,999,105.56 10,094.45 - 13-0017 Toyota Motor Credit Corp 01/24/13 07/22/13 1,000,000.00 - 999,961.88 1,155.21 - 999,860.00 1,053.33 - 13-0067 Carrol TX Indep Sch Dist 06/20/13 02/15/14 425,000.00 - 433,385.25 (2,635.00) - 435,504.41 (515.84) 551.91 5119 - DEBT SERVICE TOTAL 67,175,000.00 55,779,486.04 14,175,145.53 (28,178.54) 55,713,296.21 14,145,748.78 8,614.54 20,021.91

6019 - QSCB PROJECTS11-0016-01 FL TPK-REF-DEPT 11/24/10 07/01/12 1,000,000.00 1,000,000.00 - - 1,065,080.00 - (65,080.00) - 11-0017-01 NY TWY BRDG TR 11/24/10 04/01/13 200,000.00 207,330.00 - (7,330.00) 206,299.57 - (6,299.57) - 11-0018-01 LOWER CO RIV AUT 11/24/10 05/15/13 165,000.00 171,517.50 - (6,517.50) 170,148.44 - (5,148.44) - 11-0020-01 Beeville ISD 11/23/10 08/15/12 335,000.00 336,815.70 - (1,815.70) 336,704.11 - (1,704.11) - 11-0027-01 THREE RVRS PK DI 12/09/10 02/01/13 715,000.00 722,357.35 - (7,357.35) 719,113.57 - (4,113.57) - 11-0032 New Jersey St 12/14/10 07/01/13 240,000.00 247,768.80 240,000.00 (7,768.80) 245,402.59 240,000.00 (5,402.59) 4,800.00 11-0035 Leander ISD - CABS 12/16/10 08/15/13 500,000.00 498,395.00 499,865.00 1,470.00 490,818.37 499,000.02 8,181.65 - 11-0047-01 FAMCA 01/14/11 08/10/12 1,400,000.00 1,402,996.00 - (2,996.00) 1,402,153.65 - (2,153.65) - 12-0015-01 Prudential Funding 10/13/11 07/06/12 1,000,000.00 999,967.24 - 32.76 999,936.25 - 63.75 - 12-0057-01 Cuyahoga Econ-TX 03/01/12 12/01/12 4,600,000.00 4,627,370.00 - (27,370.00) 4,630,232.22 - (30,232.22) - 12-0071-01 FCAR OWNER TURST II 06/06/12 03/01/13 2,000,000.00 1,997,542.30 - 2,457.70 1,993,209.50 - 6,790.50 - 6019 - QSCB PROJECTS TOTAL 12,155,000.00 12,212,059.89 739,865.00 (57,194.89) 12,259,098.27 739,000.02 (105,098.25) 4,800.00

621 - 2012 BOND FUND13-0055 Ohio St OH Ref-Hgr Ed-Ser 05/20/13 08/01/13 500,000.00 - 501,555.00 (2,135.00) - 501,559.15 (2,130.85) 2,277.78 13-0060 Massachusetts ST Cons Ln- 05/28/13 09/01/13 1,000,000.00 - 1,007,840.00 (4,540.00) - 1,007,987.10 (4,392.90) 4,583.33 13-0061 Univ of Texas FING SYS 05/29/13 08/15/13 500,000.00 - 502,965.00 (2,305.00) - 503,051.05 (2,218.95) 2,333.33 13-0062 Texas St Ref-Pub Fin Auth 05/29/13 10/01/13 300,000.00 - 303,510.00 (1,365.00) - 303,596.31 (1,278.69) 1,333.33 13-0068 Northhampton Cnty PA 06/21/13 10/01/13 1,000,000.00 - 1,011,850.00 (1,460.00) - 1,011,979.00 (1,331.00) 1,388.89 621 - 2012 BOND FUND TOTAL 3,300,000.00 - 3,327,720.00 (11,805.00) - 3,328,172.61 (11,352.39) 11,916.66

671 - 2007 BOND FUND09-0009-01 FHLB 09/29/08 09/14/12 3,250,000.00 3,277,787.50 - (27,787.50) 3,253,567.38 - (3,567.38) - 12-0016-01 Prudential Funding 10/13/11 07/06/12 1,000,000.00 999,967.24 - 32.76 999,936.25 - 63.75 - 12-0070-01 FCAR OWNER TURST II 06/06/12 03/01/13 3,000,000.00 2,996,313.45 - 3,686.55 2,989,814.25 - 10,185.75 - 671 - 2007 BOND FUND TOTAL 7,250,000.00 7,274,068.19 - (24,068.19) 7,243,317.88 - 6,682.12 -

22


07/01/12 - 06/30/13NORTH EAST I.S.D.

CHANGES IN VALUES

7539 - HEALTH INSURANCE12-0030 Goldman Sachs Bk 11/02/11 11/04/13 248,000.00 250,421.82 248,500.16 (1,921.66) 248,000.00 248,000.00 - 448.44 12-0039 Harris Cnty Cultural 12/14/11 12/01/13 1,000,000.00 1,066,880.00 1,020,150.00 (46,730.00) 1,066,725.60 1,019,625.18 (47,100.42) 4,375.00 12-0046-01 NYC - TXB - F2 01/20/12 12/01/12 1,500,000.00 1,507,590.00 - (7,590.00) 1,508,168.01 - (8,168.01) - 12-0062-01 Illinois - TXBL 03/27/12 01/01/13 1,000,000.00 1,012,520.00 - (12,520.00) 1,012,534.31 - (12,534.31) - 12-0066 OK Cap Impt - Ref 05/09/12 07/01/13 945,000.00 955,130.40 945,000.00 (10,130.40) 956,378.53 945,000.00 (11,378.53) 8,363.25 12-0069-01 FCAR OWNER TURST II 06/06/12 03/01/13 1,000,000.00 998,771.15 - 1,228.85 996,604.75 - 3,395.25 - 13-0032 FCAR II 03/01/13 11/22/13 500,000.00 - 499,862.70 1,026.45 - 499,370.00 533.75 - 13-0044 Grapevine TX Ref 04/11/13 02/15/14 385,000.00 - 389,111.80 (1,085.70) - 388,829.74 (1,367.76) 1,711.11 13-0059 Bank of Nova Scotia NY 05/24/13 02/14/14 1,000,000.00 - 999,273.30 751.08 - 998,733.33 211.11 - 7539 - HEALTH INSURANCE TOTAL 7,578,000.00 5,791,313.37 4,101,897.96 (76,971.38) 5,788,411.20 4,099,558.25 (76,408.92) 14,897.80

7739 - DENTAL12-0044 San Antonio Elec 01/19/12 02/01/14 575,000.00 618,947.25 591,692.25 (27,255.00) 619,411.92 591,362.28 (28,049.64) 12,578.13 12-0060-01 Garland ISD - CABS 03/27/12 02/15/13 58,465.00 34,094.45 - 24,370.55 58,229.03 - 235.97 - 12-0072-01 Doral Bank 06/08/12 06/07/13 248,000.00 248,023.13 - (23.13) 248,000.00 - - - 13-0065 Clark Cnty NV 06/06/13 11/01/13 250,000.00 - 251,932.50 (832.50) - 252,288.28 (476.72) 520.83 7739 - DENTAL TOTAL 1,131,465.00 901,064.83 843,624.75 (3,740.08) 925,640.95 843,650.56 (28,290.39) 13,098.96

7939 - WORKERS' COMPENSATION12-0045 MD CTFS - A 01/20/12 09/01/13 640,000.00 647,820.80 641,356.80 (6,464.00) 648,406.36 641,200.91 (7,205.45) 3,805.87 12-0055 Philadelphia S/D 02/24/12 09/01/14 175,000.00 184,933.00 180,939.50 (3,993.50) 186,673.99 181,285.99 (5,388.00) 2,333.33 12-0063-01 Illinois - TXBL 03/27/12 01/01/13 1,000,000.00 1,012,520.00 - (12,520.00) 1,012,534.31 - (12,534.31) - 12-0074-01 Beal Bank SSB TX 06/13/12 06/12/13 248,000.00 248,023.47 - (23.47) 248,000.00 - - - 13-0072 Fort Worth TX CTFS Oblig- 06/27/13 03/01/14 500,000.00 - 515,745.00 (430.00) - 515,909.84 (265.16) 277.78 7939 - WORKERS' COMPENSATION TOTAL 2,563,000.00 2,093,297.27 1,338,041.30 (23,430.97) 2,095,614.66 1,338,396.74 (25,392.92) 6,416.98

SUMMARY TOTALS: 290,650,465.00$ 188,055,614.50$ 131,071,081.25$ (1,126,554.51)$ 187,783,816.04$ 130,968,449.77$ (960,745.79)$ 504,294.63$

Market Value = Ending Market Value + Balances in Managed Pool Balances ($131,071,081.25+ $192,413,385.71 = $323,484,466.96)Book Value = Ending Book Value + Balances in Managed Pool Balances ($130,968,449.77+ $192,413,385.71 = $323,381,835.48)

23

Investment Investment Purchase Maturity Face Value Year to Date YieldNumber Description Date Date Earnings Earned

1999 - GENERAL OPERATING11-0003-01 FHLB 10/01/10 06/28/13 500,000.00$ 3,718.75$ 0.75%11-0067-01 AZ Pwr - Crossover 05/16/11 10/01/12 1,485,000.00 2,086.15 0.5512-0004 North TX TWY Auth 07/25/11 09/01/13 1,000,000.00 9,190.37 0.9112-0018-01 Univ of HI - Ser A 10/13/11 07/15/12 2,000,000.00 184.25 0.2312-0020 Lewisvile ISD 10/17/11 08/15/13 2,000,000.00 11,947.90 0.6012-0026-01 Jefferson SWR - D 10/28/11 08/01/12 2,500,000.00 748.70 0.3512-0027-01 Chicago TXBL Note 11/01/11 12/05/12 8,000,000.00 12,507.61 0.3712-0034 North TX TWY Auth 11/18/11 09/01/13 4,500,000.00 32,914.10 0.7212-0035 NJ Sports - Ref - B 12/02/11 03/01/14 610,000.00 12,413.82 2.0512-0036-01 MS Small Enter 12/05/11 12/01/12 5,670,000.00 9,665.61 0.4012-0038-01 FFCB 12/12/11 12/12/14 1,000,000.00 3,980.28 0.8912-0040-01 FHLMC 12/19/11 12/19/14 1,000,000.00 4,666.67 1.0012-0041-01 RaboBank USA Fin 01/09/12 07/09/12 25,000,000.00 3,465.98 0.6312-0042 NJSHSG 01/09/12 10/01/13 535,000.00 3,751.96 0.7012-0047-01 AL Wtr Polltn Ln 01/27/12 08/15/12 1,000,000.00 620.28 0.5012-0048-02 NJ Econ Dev Auth 01/30/12 09/01/12 105,000.00 105.28 0.6012-0051-01 FCAR Owner Trust CP 02/22/12 08/01/12 15,000,000.00 6,081.15 0.4812-0052 HOUFAC 02/23/12 09/01/13 1,000,000.00 4,272.12 0.4112-0053 Miami-Dade Cnty 02/24/12 08/01/14 900,000.00 10,127.43 1.0512-0054 Cook Cnty Ill 02/24/12 12/01/14 275,000.00 3,085.07 1.1512-0056 Hudson Cnty NJ 02/27/12 09/01/14 680,000.00 10,981.93 1.4512-0059-01 Abbey Nat NA LLC 03/23/12 12/17/12 10,000,000.00 35,516.37 1.1212-0061-01 Illinois - TXBL 03/27/12 01/01/13 1,000,000.00 4,052.19 0.8012-0065-01 Central Sq CSD - R 05/03/12 05/15/13 2,750,000.00 13,841.73 0.5712-0068 Central Dauphin 05/22/12 12/01/13 4,095,000.00 18,143.23 0.4312-0069-01 FCAR OWNER TURST II 06/06/12 03/01/13 2,000,000.00 6,817.97 0.5112-0075 Michigan HSG DEV Auth 06/15/12 11/01/13 1,415,000.00 19,648.39 1.3812-0075-01 Michigan HSG DEV Auth 06/15/12 11/01/13 455,000.00 2,841.04 0.8313-0001-01 ING Funding 07/11/12 04/05/13 10,000,000.00 51,366.70 0.6913-0002 Gainesville SD 11/08/12 12/01/13 800,000.00 2,054.08 0.3913-0003 General Elec CAP Corp 11/15/12 08/09/13 12,000,000.00 17,453.33 0.2313-0004 Deutsche Bank FINL LLC 11/16/12 08/01/13 1,000,000.00 3,463.42 0.5513-0005 Euless TX Ref-Ser A 11/29/12 02/15/14 270,000.00 648.81 0.4013-0006 Louisville Met Swr Dist 12/04/12 12/04/13 5,000,000.00 17,553.22 0.6013-0007 San Benito - Ref 12/06/12 02/01/14 325,000.00 1,034.93 0.5513-0008-01 Pflugerville-TXB 12/19/12 02/15/13 870,000.00 328.67 0.2413-0009 FHLB 12/19/12 06/13/14 1,000,000.00 1,261.37 0.2213-0010 Milwaukee Cnty-Ref 12/20/12 12/01/14 500,000.00 1,274.07 0.4513-0011-01 Deutsche BK FIN 12/21/12 06/19/13 5,000,000.00 9,000.00 0.3713-0012 Weatherford TX Ref 12/27/12 03/01/14 1,000,000.00 1,823.97 0.3513-0013 San Antonio ISD 01/15/13 08/15/14 875,000.00 1,307.64 0.3013-0014 FFCB 01/16/13 12/24/14 2,000,000.00 2,574.89 0.2813-0015 FCAR I 01/22/13 10/18/13 2,000,000.00 3,596.02 0.4113-0018 Forsyth Cnty GA Sch Dist 01/24/13 02/01/14 500,000.00 571.84 0.2513-0019 Princeton NJ BRD of EDU 01/29/13 02/01/15 1,005,000.00 1,812.88 0.43

EARNINGS/YIELDSNORTH EAST I.S.D.

07/01/12 - 06/30/13

24



07/01/12 - 06/30/13

13-0020 Mississippi St DEV Bank S 01/29/13 09/01/14 1,000,000.00 1,714.39 0.4013-0021 Beaumont TX ISD 01/30/13 02/15/15 1,000,000.00 1,467.45 0.3313-0022 FFCB 02/06/13 02/06/15 1,000,000.00 2,056.94 0.5113-0023 Coconino Cnty AZ UNIF Sch 02/07/13 07/01/14 600,000.00 987.81 0.4013-0024 Columbus OH 02/08/13 02/15/15 3,000,000.00 3,895.64 0.3113-0025 Pflugerville ISD 02/08/13 02/15/15 500,000.00 911.37 0.4213-0026 FFCB 02/08/13 07/30/14 2,000,000.00 2,432.00 0.3113-0027 Denton TX ISD 02/20/13 08/15/14 1,425,000.00 1,447.31 0.2613-0028 San Antonio TX WTR Revenu 02/20/13 05/15/14 600,000.00 567.05 0.2513-0029 Toms River NJ 02/20/13 06/15/14 690,000.00 721.53 0.2813-0030 FCAR II 03/01/13 11/22/13 6,500,000.00 7,002.24 0.3213-0034 Flower Mound TX Ref 03/07/13 09/01/15 200,000.00 296.46 0.4213-0035 FNMA 03/08/13 05/27/15 2,000,000.00 1,898.45 0.3013-0036 San Antonio TX Elec & Gas 03/11/13 02/01/15 575,000.00 662.74 0.3513-0037 FNMA 03/18/13 09/18/15 2,500,000.00 2,861.11 0.4013-0038 FHLB 03/18/13 03/18/15 2,500,000.00 2,217.36 0.3113-0039 Aurora CO Ref 03/21/13 12/01/13 300,000.00 241.60 0.2813-0040 Hays TX Consol ISD Ref 03/22/13 08/15/14 300,000.00 283.05 0.3213-0041 Leander TX ISD Prem Cap A 03/22/13 08/15/14 1,000,000.00 741.01 0.2713-0042 Dallas TX CTFS Oblig 04/08/13 02/15/15 1,985,000.00 1,339.59 0.2813-0043 McKinney TX RFBE B/E 04/09/13 08/15/15 490,000.00 474.93 0.4113-0045 FFCB 04/15/13 04/15/15 2,000,000.00 1,731.12 0.4113-0046 FHLB 04/18/13 11/20/15 2,000,000.00 1,227.28 0.3013-0047 Horry Cnty, SC Sch Dist 04/30/13 03/01/15 1,925,000.00 1,035.82 0.2913-0048 Regl Transprtn Dist CO 04/30/13 11/01/14 400,000.00 364.33 0.5413-0049 NY State Dorm Auth 05/07/13 03/15/14 1,325,000.00 562.45 0.2713-0050 Hoover AL Ref-Warrants-Se 05/09/13 03/01/14 635,000.00 234.00 0.2513-0052 FFCB 05/15/13 12/24/14 2,000,000.00 537.55 0.2113-0053 Goose Creek TX ISD 05/16/13 02/15/15 1,960,000.00 777.79 0.2913-0054 Hays Cnty TX Ref Limited 05/17/13 02/15/15 1,025,000.00 521.42 0.4113-0056 Port of Seattle WA 05/24/13 12/01/15 500,000.00 241.39 0.4213-0057 Bank of Nova Scotia NY 05/24/13 02/14/14 3,000,000.00 652.17 0.2113-0063 Midlothian TX ISD 05/29/13 02/15/15 1,955,000.00 843.77 0.4513-0064 FHLMC 06/03/13 09/04/15 1,000,000.00 273.03 0.3513-0066 ING (US) Funding LLC 06/18/13 10/15/13 3,000,000.00 194.90 0.1813-0069 FFCB 06/24/13 12/24/14 1,000,000.00 60.27 0.3113-0070 West Virginia St-St Rd 06/27/13 06/01/14 1,000,000.00 29.21 0.25AR-0001 TexPool-General Operating NA * Open * * 10,208,829.29 42,779.41 0.11AR-0009 LOGIC-General Operating NA Open 26,912,039.26 37,819.24 0.16AR-0034 TexPool-State Payments NA Open 0.04 1,477.09 0.19AR-0044 TexPool Prime-Gen. Fund NA Open 9,681,101.84 36,550.59 0.14AR-0054 TexPool-General Operating NA Open 500,895.70 601.70 0.11SEC LEND Securities Lending - GF 1999*** NA Open - 25,545.88 NA1999 - GENERAL OPERATING TOTAL 242,812,866.13 552,782.61 0.31

25



07/01/12 - 06/30/13

2409 - SCHOOL NUTRITION SERVICES12-0029-01 Chicago TXBL Note 11/01/11 12/05/12 1,000,000.00 1,563.45 0.3712-0046-01 NYC - TXB - F2 01/20/12 12/01/12 1,500,000.00 1,951.48 0.3112-0050-01 NYC 02/06/12 03/01/13 2,000,000.00 7,411.66 0.5512-0067 RI H/E Pub Schs 05/10/12 05/05/14 500,000.00 4,615.53 0.8712-0073-01 Discover Bank 06/13/12 06/13/13 248,000.00 1,296.73 0.5513-0031 FCAR II 03/01/13 11/22/13 1,000,000.00 1,077.27 0.3213-0033 Salt Lk Cnty, UT 03/01/13 06/15/14 200,000.00 245.75 0.3513-0058 Bank of Nova Scotia NY 05/24/13 02/14/14 1,000,000.00 217.39 0.2113-0071 Fort Worth TX CTFS Oblig- 06/27/13 03/01/14 695,000.00 17.84 0.22AR-0004 TexPool-Food Service NA Open 1,602,051.30 101.55 0.06AR-0012 LOGIC-Food Service NA Open 1,134,531.35 2,850.26 0.16AR-0045 TexPool Prime-Food Svc NA Open 2,284,983.35 3,794.91 0.142409 - SCHOOL NUTRITION SERVICES TOTAL 13,164,566.00 25,143.82 0.30

5019 - QSCB - Debt Service11-0033 Leander ISD - CABS 06/30/11 08/15/26 715,000.00 31,544.48 5.1911-0041 San Antonio ISD 06/30/11 08/15/25 1,000,000.00 54,330.00 5.43AR-0095 TexPool Prime-5019 Debt S NA Open 1,782,163.32 1,782.98 0.145019 - QSCB - Debt Service TOTAL 3,497,163.32 87,657.46 3.20

5119 - DEBT SERVICE11-0034 Leander ISD - CABS 12/16/10 08/15/15 1,000,000.00 20,837.76 2.2211-0065-01 Bartow Cnty 05/11/11 08/01/12 1,000,000.00 553.45 0.6512-0005 North TX TWY Auth 07/28/11 09/01/13 1,000,000.00 9,130.64 0.9012-0019-01 Prudential Funding 10/13/11 07/06/12 1,000,000.00 64.02 0.4612-0028-01 Chicago TXBL Note 11/01/11 12/05/12 1,000,000.00 1,563.45 0.3712-0037 Corpus Christi ISD 12/05/11 08/15/13 750,000.00 3,251.40 0.4212-0043-01 ING Funding 01/18/12 07/30/12 15,000,000.00 7,619.47 0.6312-0049-01 Deutsche BK Fin 02/02/12 07/30/12 10,000,000.00 5,096.45 0.6412-0058-01 Credit Agri NA 03/22/12 07/26/12 10,000,000.00 3,783.55 0.5512-0064-01 Natixis US Fin 04/13/12 07/30/12 15,000,000.00 6,048.30 0.5113-0016 RABOBANK USA FIN Corp 01/24/13 07/15/13 10,000,000.00 10,093.54 0.2313-0017 Toyota Motor Credit Corp 01/24/13 07/22/13 1,000,000.00 1,053.18 0.2413-0067 Carrol TX Indep Sch Dist 06/20/13 02/15/14 425,000.00 36.62 0.27AR-0005 TexPool-Debt Service NA Open 28,330,086.45 13,856.45 0.08AR-0013 LOGIC-Debt Service NA Open 3,284,983.18 6,884.91 0.18AR-0046 TexPool Prime-Debt Svc NA Open 29,802,272.98 14,905.94 0.145119 - DEBT SERVICE TOTAL 128,592,342.61 104,779.13 0.24

6019 - QSCB Projects11-0016-01 FL TPK-REF-DEPT 11/24/10 07/01/12 1,000,000.00 - 0.0011-0017-01 NY TWY BRDG TR 11/24/10 04/01/13 200,000.00 1,527.23 0.9911-0018-01 LOWER CO RIV AUT 11/24/10 05/15/13 165,000.00 1,993.44 1.3511-0020-01 Beeville ISD 11/23/10 08/15/12 335,000.00 334.46 0.8011-0027-01 THREE RVRS PK DI 12/09/10 02/01/13 715,000.00 4,198.23 1.00

26



07/01/12 - 06/30/13

11-0032 New Jersey St 12/14/10 07/01/13 240,000.00 4,126.27 1.6911-0035 Leander ISD - CABS 12/16/10 08/15/13 500,000.00 8,278.84 1.6811-0047-01 FAMCA 01/14/11 08/10/12 1,400,000.00 1,023.41 0.6712-0015-01 Prudential Funding 10/13/11 07/06/12 1,000,000.00 64.02 0.4612-0057-01 Cuyahoga Econ-TX 03/01/12 12/01/12 4,600,000.00 5,594.19 0.2912-0071-01 FCAR OWNER TURST II 06/06/12 03/01/13 2,000,000.00 6,817.96 0.51AR-0097 TexPool Prime-6019 QSCB P NA Open 6,246,276.53 11,963.10 0.146019 - QSCB Projects TOTAL 18,401,276.53 45,921.15 0.35

621 - 2012 BOND FUND13-0051-01 Maryland ST EDC 05/09/13 06/01/13 2,500,000.00 336.81 0.2213-0055 Ohio St OH Ref-Hgr Ed-Ser 05/20/13 08/01/13 500,000.00 146.93 0.2613-0060 Massachusetts ST Cons Ln- 05/28/13 09/01/13 1,000,000.00 190.43 0.2113-0061 Univ of Texas FING SYS 05/29/13 08/15/13 500,000.00 114.38 0.2513-0062 Texas St Ref-Pub Fin Auth 05/29/13 10/01/13 300,000.00 54.64 0.2013-0068 Northhampton Cnty PA 06/21/13 10/01/13 1,000,000.00 57.89 0.21AR-0220 TexPool Prime - 6219 2012 NA Open 2,852,984.54 28,442.37 0.16AR-0221 LOGIC-2012 Bond NA Open 11,209,506.40 50,756.32 0.17AR-0222 Fidelity - CP 621 2012 b NA Open 21,621,336.86 28,306.25 0.12AR-0389 TexPool NA Open 9,067,819.87 632.37 0.06621 - 2012 BOND FUND 50,551,647.67 109,038.39 0.15

6719 - CAPITAL PROJECTS $498 MILLION09-0009-01 FHLB 09/29/08 09/14/12 3,250,000.00 25,842.54 3.9112-0016-01 Prudential Funding 10/13/11 07/06/12 1,000,000.00 64.02 0.4612-0070-01 FCAR OWNER TURST II 06/06/12 03/01/13 3,000,000.00 10,226.95 0.51AR-0067 TexPool-CP $498 Million 01/31/10 Open 15,756,548.52 1,461.87 0.06AR-0068 TexPool Prime - 6719 01/03/10 Open 299,854.98 31,621.95 0.15SEC LEND Securities Lending - 6719**** NA Open - 2,206.20 NA6719 - CAPITAL PROJECTS $498 MILLION TOTAL 23,306,403.50 71,423.53 0.27

6729 - CAPITAL PROJECTS $498 MILLIONAR-0071 TexPool Prime - 6729 NA Open 96,494.50 458.28 0.166729 - CAPITAL PROJECTS $498 MILLION TOTAL 96,494.50 458.28 0.16

7539 - HEALTH INSURANCE12-0030 Goldman Sachs Bk 11/02/11 11/04/13 248,000.00 2,728.00 1.1012-0039 Harris Cnty Cultural 12/14/11 12/01/13 1,000,000.00 5,382.89 0.5112-0046-01 NYC - TXB - F2 01/20/12 12/01/12 1,500,000.00 1,951.49 0.3112-0062-01 Illinois - TXBL 03/27/12 01/01/13 1,000,000.00 4,052.19 0.8012-0066 OK Cap Impt - Ref 05/09/12 07/01/13 945,000.00 5,341.27 0.5612-0069-01 FCAR OWNER TURST II 06/06/12 03/01/13 1,000,000.00 3,408.98 0.5113-0032 FCAR II 03/01/13 11/22/13 500,000.00 538.63 0.3213-0044 Grapevine TX Ref 04/11/13 02/15/14 385,000.00 345.01 0.4013-0059 Bank of Nova Scotia NY 05/24/13 02/14/14 1,000,000.00 217.39 0.21AR-0006 TexPool-Health Insurance NA Open 1,126,885.34 288.52 0.06

27



07/01/12 - 06/30/13

AR-0014 LOGIC-Health Insurance NA Open 1,493,019.73 2,027.62 0.18AR-0051 TexPool Prime-Health Ins. NA Open 4,814,698.73 1,693.37 0.137539 - HEALTH INSURANCE TOTAL 15,012,603.80 27,975.36 0.38

7739 - DENTAL12-0044 San Antonio Elec 01/19/12 02/01/14 575,000.00 2,144.05 0.3512-0060-01 Garland ISD - CABS 03/27/12 02/15/13 58,465.00 236.14 0.6512-0072-01 Doral Bank 06/08/12 06/07/13 248,000.00 1,158.46 0.5013-0065 Clark Cnty NV 06/06/13 11/01/13 250,000.00 44.11 0.25AR-0015 LOGIC-Dental NA Open 287,569.05 409.45 0.19AR-0052 TexPool Prime-Dental NA Open 431,243.58 155.71 0.137739 - DENTAL TOTAL 1,850,277.63 4,147.92 0.33

7939 - WORKERS' COMPENSATION12-0045 MD CTFS - A 01/20/12 09/01/13 640,000.00 4,204.58 0.6512-0055 Philadelphia S/D 02/24/12 09/01/14 175,000.00 1,631.19 0.8812-0063-01 Illinois - TXBL 03/27/12 01/01/13 1,000,000.00 4,052.19 0.8012-0074-01 Beal Bank SSB TX 06/13/12 06/12/13 248,000.00 1,175.45 0.5013-0072 Fort Worth TX CTFS Oblig- 06/27/13 03/01/14 500,000.00 12.83 0.22AR-0008 TexPool-Workers' Comp NA Open 303.53 - 0.00AR-0016 LOGIC-Workers' Comp NA Open 1,103,660.76 1,646.04 0.16AR-0053 TexPool Prime-Work Comp NA Open 481,245.06 495.71 0.127939 - WORKERS' COMPENSATION TOTAL 4,148,209.35 13,217.99 0.43

TOTALS: 501,433,851.04$ 1,042,545.64$ 0.30%

* NA (Not Applicable) refers to an investment account with daily liquidity and no maturity date. A purchase date for this account does not exist. The date the account was opened is not applicable. ** Open refers to an investment account with daily liquidity and no maturity date. Funds can be fully withdrawn at any time.*** Securities Lending earnings in the current period are not available until after the printing of the monthly investmentreport. Therefore, figures shown represent the prior month earnings. Year-to-date amounts do not include any current period earnings ****2007A Capital Projects 6719 Construction Fund's return is limited to a yield of 4.46919%, for arbitrage purposes.

28

North East ISD 015910 OTHER REVENUES CDA INVESTMENTS (LEGAL)

DATE ISSUED: 10/20/2011 1 of 13 UPDATE 91 CDA(LEGAL)-P

All investments made by the District shall comply with the Public Funds Investment Act (Texas Government Code Chapter 2256, Subchapter A) and all federal, state, and local statutes, rules or regulations. Gov’t Code 2256.026

Investments shall be made in accordance with written policies ap-proved by the Board. The investment policies must primarily em-phasize safety of principal and liquidity and must address invest-ment diversification, yield, and maturity and the quality and capability of investment management. The policies must include:

1. A list of the types of authorized investments in which the Dis-trict’s funds may be invested;

2. The maximum allowable stated maturity of any individual in-vestment owned by the District;

3. For pooled fund groups, the maximum dollar-weighted aver-age maturity allowed based on the stated maturity date of the portfolio;

4. Methods to monitor the market price of investments acquired with public funds;

5. A requirement for settlement of all transactions, except in-vestment pool funds and mutual funds, on a delivery versus payment basis; and

6. Procedures to monitor rating changes in investments acquired with public funds and the liquidation of such investments con-sistent with the provisions of Government Code 2256.021 [see LOSS OF REQUIRED RATING, below].

Gov’t Code 2256.005(b)

The Board shall review its investment policy and investment strate-gies not less than annually. The Board shall adopt a written in-strument stating that it has reviewed the investment policy and in-vestment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies. Gov’t Code 2256.005(e)

The District shall perform a compliance audit of management con-trols on investments and adherence to the District’s established

investment policies. The compliance audit shall be performed in conjunction with the annual financial audit. Gov’t Code

2256.005(m)

As part of the investment policy, the Board shall adopt a separate written investment strategy for each of the funds or group of funds under the Board’s control. Each investment strategy must describe

WRITTEN POLICIES

ANNUAL REVIEW

ANNUAL AUDIT

INVESTMENT STRATEGIES

29



the investment objectives for the particular fund under the following priorities in order of importance:

1. Understanding of the suitability of the investment to the finan-cial requirements of the District;

2. Preservation and safety of principal;

3. Liquidity;

4. Marketability of the investment if the investment needs to be liquidated before maturity;

5. Diversification of the investment portfolio; and

6. Yield.

Gov’t Code 2256.005(d)

The District shall designate one or more officers or employees as investment officer(s) to be responsible for the investment of its funds. If the District has contracted with another investing entity to invest its funds, the investment officer of the other investing entity is considered to be the investment officer of the contracting Board’s

District. In the administration of the duties of an investment officer, the person designated as investment officer shall exercise the judgment and care, under prevailing circumstances that a prudent person would exercise in the management of the person’s own af-fairs, but the Board retains the ultimate responsibility as fiduciaries of the assets of the District. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other man-ner the funds of the investing entity. Authority granted to a person to invest the District’s funds is effective until rescinded by the Dis-trict or until termination of the person’s employment by the District,

or for an investment management firm, until the expiration of the contract with the District. Gov’t Code 2256.005(f)

A District or investment officer may use the District’s employees or

the services of a contractor of the District to aid the investment of-ficer in the execution of the officer’s duties under Government

Code, Chapter 2256. Gov’t Code 2256.003(c)

Within 12 months after taking office or assuming duties, the trea-surer or chief financial officer and the investment officer of the Dis-trict shall attend at least one training session from an independent source approved either by the Board or by a designated invest-ment committee advising the investment officer. This initial training must contain at least ten hours of instruction relating to their re-spective responsibilities under the Public Funds Investment Act. Gov’t Code 2256.008(a)

INVESTMENT OFFICER

INVESTMENT TRAINING

INITIAL

30



The treasurer or chief financial officer and the investment officer must also attend an investment training session not less than once in a two-year period that begins on the first day of the District’s fis-cal year and consists of the two consecutive fiscal years after that date, and receive not less than ten hours of instruction relating to investment responsibilities under the Public Funds Investment Act from an independent source approved by the Board or a designat-ed investment committee advising the investment officer. If the District has contracted with another investing entity to invest the District’s funds, this training requirement may be satisfied by hav-ing a Board officer attend four hours of appropriate instruction in a two-year period that begins on the first day of the District’s fiscal year and consists of the two consecutive fiscal years after that date. Gov’t Code 2256.008(a)–(b)

Investment training shall include education in investment controls, security risks, strategy risks, market risks, diversification of invest-ment portfolio, and compliance with the Government Code, Chap-ter 2256. Gov’t Code 2256.008(c)

Investments shall be made with judgment and care, under prevail-ing circumstances that a person of prudence, discretion, and intel-ligence would exercise in the management of his or her own af-fairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investments shall be governed by the following objectives in order of priority:

1. Preservation and safety of principal;

2. Liquidity; and

3. Yield.

In determining whether an investment officer has exercised pru-dence with respect to an investment decision, the following shall be taken into consideration:

1. The investment of all funds, rather than the prudence of a single investment, over which the officer had responsibility.

2. Whether the investment decision was consistent with the Board’s written investment policy.

Gov’t Code 2256.006

A District investment officer who has a personal business relation-ship with a business organization offering to engage in an invest-ment transaction with the District shall file a statement disclosing that personal business interest. An investment officer who is re-

ONGOING

STANDARD OF CARE

PERSONAL INTEREST

31



lated within the second degree by affinity or consanguinity, as de-termined by Government Code Chapter 573, to an individual seek-ing to sell an investment to the investment officer’s District shall file a statement disclosing that relationship. A required statement must be filed with the Board and with the Texas Ethics Commission. For purposes of this policy, an investment officer has a personal busi-ness relationship with a business organization if:

1. The investment officer owns ten percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization;

2. Funds received by the investment officer from the business organization exceed ten percent of the investment officer’s

gross income for the previous year; or

3. The investment officer has acquired from the business organ-ization during the previous year investments with a book val-ue of $2,500 or more for the personal account of the invest-ment officer.

Gov’t Code 2256.005(i)

Not less than quarterly, the investment officer shall prepare and submit to the Board a written report of investment transactions for all funds covered by the Public Funds Investment Act. This report shall be presented to the Board and the Superintendent not less than quarterly, within a reasonable time after the end of the period. The report must:

1. Contain a detailed description of the investment position of the District on the date of the report.

2. Be prepared jointly and signed by all District investment offic-ers.

3. Contain a summary statement for each pooled fund group (i.e., each internally created fund in which one or more ac-counts are combined for investing purposes) that states the:

a. Beginning market value for the reporting period;

b. Ending market value for the period; and

c. Fully accrued interest for the reporting period.

4. State the book value and market value of each separately in-vested asset at the end of the reporting period by the type of asset and fund type invested.

5. State the maturity date of each separately invested asset that has a maturity date.

QUARTERLY REPORTS

32



6. State the account or fund or pooled group fund in the District for which each individual investment was acquired.

7. State the compliance of the investment portfolio of the District as it relates to the District’s investment strategy expressed in

the District’s investment policy and relevant provisions of

Government Code, Chapter 2256.

If the District invests in other than money market mutual funds, in-vestment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be re-ported to the Board by that auditor.


The Board or a designated investment committee, shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the Dis-trict. Gov’t Code 2256.025

The Board may purchase, sell, and invest its funds and funds un-der its control in investments described below, in compliance with its adopted investment policies and according to the standard of care set out in this policy. Investments may be made directly by the Board or by a nonprofit corporation acting on behalf of the Board or an investment pool acting on behalf of two or more local governments, state agencies, or a combination of the two. Gov’t

Code 2256.003(a)

In the exercise of these powers, the Board may contract with an investment management firm registered under the Investment Ad-visers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and manage-ment of its public funds or other funds under its control. A contract made for such purpose may not be for a term longer than two years. A renewal or extension of the contract must be made by the Board by order, ordinance, or resolution. Gov’t Code 2256.003(b)

The following investments are authorized:

1. Obligations, including letters of credit, of the United States or its agencies and instrumentalities; direct obligations of the state of Texas or its agencies and instrumentalities; collatera-lized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed

SELECTION OF BROKER

AUTHORIZED INVESTMENTS

33



by the full faith and credit of, the state of Texas, the United States, or their respective agencies and instrumentalities, in-cluding obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation (FDIC) or by the ex-plicit full faith and credit of the United States; obligations of states, agencies, counties, cities, and other political subdivi-sions of any state rated as to investment quality by a national-ly recognized investment rating firm not less than A or its equivalent; and bonds issued, assumed, or guaranteed by the state of Israel. Gov’t Code 2256.009(a)

The following investments are not authorized:

a. Obligations whose payment represents the coupon pay-ments on the outstanding principal balance of the under-lying mortgage-backed security collateral and pays no principal.

b. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest.

c. Collateralized mortgage obligations that have a stated fi-nal maturity date of greater than ten years.

d. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.


2. Certificates of deposit or share certificates issued by a depo-sitory institution that has its main office or a branch office in Texas that is guaranteed or insured by the FDIC or its suc-cessor or the National Credit Union Share Insurance Fund or its successor and is secured by obligations described in item 1 above, including mortgage-backed securities directly issued by a federal agency or instrumentality that have a market val-ue of not less than the principal amount of the certificates (but excluding those mortgage-backed securities described in Section 2256.009[b]) or secured in any other manner and amount provided by law for the deposits of the investing enti-ty. Gov’t Code 2256.010(a)

In addition to the authority to invest funds in certificates of de-posit under the previous section, an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under Government Code 2256.010:

34



a. The funds are invested by the District through a broker that has its main office or a branch office in this state and is selected from a list adopted by the District as required by Government Code 2256.025, or a depository institu-tion that has its main office or a branch office in this state and that is selected by the District;

b. The broker or depository institution selected by the Dis-trict arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository insti-tutions, wherever located, for the account of the District;

c. The full amount of the principal and accrued interest of each of the certificates of deposit is insured by the Unit-ed States or an instrumentality of the United States; and

d. The District appoints the depository institution selected by the District, an entity described by Government Code 2257.041(d), or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the District with respect to the certificates of deposit is-sued for the account of the District entity.


The investment policies may provide that bids for certificates of deposit be solicited orally, in writing, electronically, or in any combination of those methods. Gov’t Code 2256.005(c)

3. Fully collateralized repurchase agreements that have a de-fined termination date; are secured by a combination of cash and obligations of the United States or its agencies and in-strumentalities; require the securities being purchased by the District or cash held by the District to be pledged to the Dis-trict, held in the District’s name, and deposited with the Dis-trict or a third party selected and approved by the District, and are placed through a primary government securities dealer, as defined by the Federal Reserve or a financial institution doing business in Texas. The term of any reverse security repur-chase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. Money received by the District under the terms of a reverse security repurchase agreement shall be used to acquire additional au-thorized investments, but the term of the authorized invest-ments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement. Gov’t

Code 2256.011

35



4. A securities lending program if:

a. The value of securities loaned is not less than 100 per-cent collateralized, including accrued income, and the loan allows for termination at any time;

b. The loan is secured by:

(1) Pledged securities described by Government Code 2256.009;

(2) Pledged irrevocable letters of credit issued by a bank that is organized and existing under the laws of the United States or any other state and conti-nuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent; or

(3) Cash invested in accordance with Government Code 2256.009, 2256.013, 2256.014, or 2256.016;

c. The terms of the loan require that the securities being held as collateral be pledged to the investing entity, held in the investing entity’s name, and deposited at the time

the investment is made with the entity or with a third par-ty selected by or approved by the investing entity; and

d. The loan is placed through a primary government securi-ties dealer or a financial institution doing business in this state.

An agreement to lend securities under a securities lending program must have a term of one year or less.


5. Banker’s acceptance, with a stated maturity of 270 days or

fewer from the date of issuance that will be liquidated in full at maturity, which is eligible for collateral for borrowing from a Federal Reserve Bank, and is accepted by a bank meeting the requirements of Government Code 2256.012(4). Gov’t

Code 2256.012

6. Commercial paper that has a stated maturity of 270 days or fewer from the date of issuance and is rated not less than A-1 or P-1 or an equivalent rating by at least two nationally recog-nized credit rating agencies or by one nationally recognized credit rating agency provided the commercial paper is fully secured by an irrevocable letter of credit issued by a bank or-ganized and existing under United States law or the law of any state. Gov’t Code 2256.013

36



7. No-load money market mutual funds that:

a. Are registered with and regulated by the Securities and Exchange Commission;

b. Provide the District with a prospectus and other informa-tion required by the Securities and Exchange Act of 1934 (15 U.S.C. 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.);

c. Have a dollar-weighted average stated maturity of 90 days or fewer; and

d. Include in their investment objectives the maintenance of a stable net asset value of $1 for each share.

However, investments in no-load money market mutual funds shall be limited to the percentages authorized by Government Code 2256.014(c).

8. No-load mutual funds that:

a. Are registered with the Securities and Exchange Com-mission;

b. Have an average weighted maturity of less than two years;

c. Are invested exclusively in obligations approved by Government Code Chapter 2256, Subchapter A, regard-ing authorized investments (Public Funds Investment Act);

d. Are continuously rated by at least one nationally recog-nized investment rating firm of not less than AAA or its equivalent; and

e. Conform to the requirements in Government Code 2256.016(b) and (c) relating to the eligibility of invest-ment pools to receive and invest funds of investing enti-ties.

Investments in no-load mutual funds shall be limited to the percentages authorized by Government Code 2256.014(c). In addition, the District may not invest any portion of bond proceeds, reserves, and funds held for debt service, in no-load mutual funds described in this item.


9. A guaranteed investment contract, as an investment vehicle for bond proceeds, if the guaranteed investment contract:

37



a. Has a defined termination date.

b. Is secured by obligations described by Government Code 2256.009(a)(1), excluding those obligations de-scribed by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract.

c. Is pledged to the District and deposited with the District or with a third party selected and approved by the Dis-trict.

Bond proceeds, other than bond proceeds representing re-serves and funds maintained for debt service purposes, may not be invested in a guaranteed investment contract with a term longer than five years from the date of issuance of the bonds.

To be eligible as an authorized investment:

a. The Board must specifically authorize guaranteed in-vestment contracts as eligible investments in the order, ordinance, or resolution authorizing the issuance of bonds.

b. The District must receive bids from at least three sepa-rate providers with no material financial interest in the bonds from which proceeds were received.

c. The District must purchase the highest yielding guaran-teed investment contract for which a qualifying bid is re-ceived.

d. The price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested.

e. The provider must certify the administrative costs rea-sonably expected to be paid to third parties in connec-tion with the guaranteed investment contract.


10. A public funds investment pool meeting the requirements of Government Code 2256.016 and 2256.019, if the Board au-thorizes the investment in the particular pool by resolution. Gov’t Code 2256.016, .019

11. “Corporate bond” means a senior secured debt obligation is-sued by a domestic business entity and rated not lower than “AA-” or the equivalent by a nationally recognized investment

38



rating firm. The term does not include a debt obligation that on conversion would result in the holder becoming a stock-holder or shareholder in the entity, or any affiliate or subsidi-ary of the entity, that issued the debt obligation, or is an unse-cured debt obligation. Gov’t Code 2256.0204(a)

A district that qualifies as an issuer as defined by Government Code 1371.001 [see CCF] may purchase, sell, and invest its funds and funds under its control in corporate bonds that, at the time of purchase, are rated by a nationally recognized in-vestment rating firm “AA-” or the equivalent and have a stated final maturity that is not later than the third anniversary of the date the corporate bonds were purchased. Gov’t Code

2256.0204(b)–(c)

The District is not authorized to:

a. Invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds, reserves, and other funds held for the pay-ment of debt service, in corporate bonds; or

b. Invest more than 25 percent of the funds invested in corporate bonds in any one domestic business entity, in-cluding subsidiaries and affiliates of the entity.

Gov’t Code 2256.0204(d)

The District may purchase, sell, and invest its funds and funds under its control in corporate bonds if the Board:

a. Amends its investment policy to authorize corporate bonds as an eligible investment;

b. Adopts procedures to provide for monitoring rating changes in corporate bonds acquired with public funds, and liquidating the investment in corporate bonds; and

c. Identifies the funds eligible to be invested in corporate bonds.

Gov’t Code 2256.0204(e)

The District investment officer, acting on behalf of the District, shall sell corporate bonds in which the District has invested its funds not later than the seventh day after the date a nationally recognized investment rating firm:

a. Issues a release that places the corporate bonds or the domestic business entity that issued the corporate bonds on negative credit watch or the equivalent, if the corpo-

39



rate bonds are rated “AA-” or the equivalent at the time the release is issued; or

b. Changes the rating on the corporate bonds to a rating lower than “AA-” or the equivalent.

Gov’t Code 2256.0204(f)

Corporate bonds are not an eligible investment for a public funds investment pool. Gov’t Code 2256.0204(g)

The District is not required to liquidate investments that were au-thorized investments at the time of purchase. Gov’t Code

2256.017

An investment that requires a minimum rating does not qualify as an authorized investment during the period the investment does not have the minimum rating. The District shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. Gov’t Code

2256.021

A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with the District or to an investment management firm under contract with the District to invest or manage the District’s investment portfolio.

For purposes of this section, a business organization includes in-vestment pools and an investment management firm under con-tract with the District to invest or manage the District’s investment

portfolio. The qualified representative of the business organization offering to engage in an investment transaction with the District shall execute a written instrument in a form acceptable to the Dis-trict and the business organization substantially to the effect that the business organization has:

1. Received and thoroughly reviewed the District investment pol-icy; and

2. Acknowledged that the business organization has imple-mented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Dis-trict and the organization that are not authorized by the Dis-trict’s policy, except to the extent that this authorization is de-pendent on an analysis of the makeup of the District’s entire

portfolio or requires an interpretation of subjective investment standards.

The investment officer may not acquire or otherwise obtain any au-thorized investment described in the District’s investment policy

CHANGE IN LAW

LOSS OF REQUIRED RATING

SELLERS OF INVESTMENTS

40



from a person who has not delivered to the District the instrument described above.

Gov’t Code 2256.005(k)–(l)

A gift, devise, or bequest made to provide college scholarships for District graduates may be invested by the Board as provided in Property Code 117.004, unless otherwise specifically provided by the terms of the gift, devise, or bequest. Education Code 45.107

Investments donated to the District for a particular purpose or un-der terms of use specified by the donor are not subject to the re-quirements of Government Code Chapter 2256, Subchapter A. Gov’t Code 2256.004(b)

The District may use electronic means to transfer or invest all funds collected or controlled by the District. Gov’t Code 2256.051

DONATIONS

ELECTRONIC FUNDS TRANSFER

41

North East ISD 015910 OTHER REVENUES CDA INVESTMENTS (LOCAL)

DATE ISSUED: 8/20/2012 1 of 4 LDU 2012.04 CDA(LOCAL)-X

The Superintendent or other person designated by Board resolu-tion shall serve as the investment officer of the District and shall invest District funds as directed by the Board and in accordance with the District’s written investment policy and generally accepted accounting procedures. All investment transactions except invest-ment pool funds and mutual funds shall be executed on a delivery versus payment basis.

In compliance with the Public Funds Investment Act 2256.008 and District policies, the District shall provide for investment personnel periodic training in investments through courses and seminars of-fered by professional organizations and associations.

From those investments authorized by law and described further in CDA(LEGAL), the Board shall permit investment of District funds in only the following investment types, consistent with the strategies and maturities defined in this policy:

1. Obligations of, or guaranteed by, governmental entities as permitted by Government Code 2256.009.

2. Certificates of deposit and share certificates as permitted by Government Code 2256.010.

3. Fully collateralized repurchase agreements permitted by Government Code 2256.011.

4. A securities lending program as permitted by Government Code 2256.0115.

5. Banker’s acceptances as permitted by Government Code

2256.012.

6. Commercial paper as permitted by Government Code 2256.013.

7. No-load money market mutual funds and no-load mutual funds as permitted by Government Code 2256.014.

8. A guaranteed investment contract as an investment vehicle for bond proceeds, provided it meets the criteria and eligibility requirements established by Government Code 2256.015.

9. Public funds investment pools as permitted by Government Code 2256.016.

10. Corporate bonds as permitted by Government Code 2256.0204.

Upon awareness by investment staff of a downgrade in a District investment, prudent measures shall be taken to liquidate an in-

INVESTMENT AUTHORITY

TRAINING OF PERSONNEL

APPROVED INVESTMENT INSTRUMENTS

EFFECT OF LOSS OF REQUIRED RATING

42



vestment that is downgraded to less than the required minimum rating.

The main goal of the investment program is to ensure its safety and maximize financial returns within current market conditions in accordance with this policy. Investments shall be made in a man-ner that ensures the preservation of capital in the overall portfolio, and offsets during a 12-month period any market price losses re-sulting from interest-rate fluctuations by income received from the balance of the portfolio. No individual investment transaction shall be undertaken that jeopardizes the total capital position of the overall portfolio.

Except for cash in certain restricted and special funds, the District may consolidate cash balances from all funds to maximize invest-ment earnings.

Any internally created pool fund group of the District shall have a maximum weighted maturity of one year. The holding periods of investment funds shall match liquidity needs of the District. The maximum final stated maturity of any investment shall not exceed five years.

The maximum allowable stated maturity of any other individual in-vestment owned by the District shall not exceed legal limits or limits authorized by District policies. The District’s investment portfolio

shall have sufficient liquidity to meet anticipated cash flow require-ments.

The investment portfolio shall be diversified in terms of investment instruments, maturity scheduling, and financial institutions to re-duce risk of loss resulting from overconcentration of assets in a specific class of investments, specific maturity, or specific issuer.

The market value of pledged collateral must be at least 110 percent of the principal plus accrued interest for excess cash balances, cer-tificates of deposit, guaranteed investment contracts, and repur-chase agreements. Evidence of proper collateralization shall be provided to a District investment officer no less than quarterly. An authorized District representative shall approve and release all pledged collateral.

Investment securities described in Government Code 2256.009(a) shall be eligible for use as collateral of District monies governed by this policy.

The investment officer shall monitor the investment portfolio and shall keep the Board informed of significant declines in the market value of the District’s investment portfolio. Information sources

may include financial/investment publications and electronic media,

SAFETY AND INVESTMENT MANAGEMENT

POOLING OF FUNDS

LIQUIDITY AND MATURITY

DIVERSITY

COLLATERAL

MONITORING MARKET PRICES

43



available software for tracking investments, depository banks, commercial or investment banks, financial advisors, and repre-sentatives/advisors of investment pools or money market funds. Monitoring shall be done monthly or more often as economic condi-tions warrant by using appropriate reports, indices, or benchmarks for the type of investment.

In accordance with Government Code 2256.005(b), the investment officer shall develop a procedure to monitor changes in investment ratings and to liquidate investments that do not maintain satisfacto-ry ratings.

Investments of the following fund categories shall be consistent with this policy and in accordance with the strategy defined below.

Investment strategies for operating funds (including any commin-gled pools containing operating funds) shall have as their primary objectives safety, investment liquidity, and maturity sufficient to meet anticipated cash flow requirements.

Investment strategies for agency funds shall have as their objec-tives safety, investment liquidity, and maturity sufficient to meet an-ticipated cash flow requirements.

Investment strategies for debt service funds shall have as their ob-jective sufficient investment liquidity to timely meet debt service payment obligations in accordance with provisions in the bond documents. Maturities longer than one year are authorized provid-ed legal limits are not exceeded.

Investment strategies for capital project funds shall have as their objective sufficient investment liquidity to timely meet capital pro-ject obligations. Maturities longer than one year are authorized provided legal limits are not exceeded.

Investment strategies for proprietary funds shall have as their pri-mary objectives safety, investment liquidity, and maturity sufficient to meet anticipated cash flow requirements.

Securities shall be held by a third-party custodian designated by the District and held in the District’s name as evidenced by safe-keeping receipts of the institution with which the securities are de-posited.

Prior to handling investments on behalf of the District, bro-kers/dealers must submit required written documents in accord-ance with law. [See SELLERS OF INVESTMENTS, CDA(LEGAL)] Representatives of brokers/dealers shall be registered with the Texas State Securities Board and must have membership in the

MONITORING RATING CHANGES

FUNDS / STRATEGIES

OPERATING FUNDS

AGENCY FUNDS

DEBT SERVICE FUNDS

CAPITAL PROJECTS

PROPRIETARY FUNDS

SAFEKEEPING AND CUSTODY

BROKERS / DEALERS

44


DATE ISSUED: 8/20/2012 ADOPTED: 4 of 4 LDU 2012.04 CDA(LOCAL)-X

Securities Investor Protection Corporation (SIPC), and be in good standing with the Financial Industry Regulatory Authority (FINRA).

In order to get the best return on its investments, the District may solicit bids for certificates of deposit in writing, by telephone, elec-tronically, or by a combination of these methods.

For any investment purchased or sold through the secondary mar-ket, the District shall obtain at least three proposals from author-ized institutions in writing, by telephone, electronically, or by a combination of these methods.

Interest rate risk is specific to the individual funds and is addressed indirectly under the investment guidelines for each fund. Liquidity and diversity are specifically discussed in other portions of this pol-icy.

A system of internal controls shall be established and documented in writing and must include specific procedures designating who has authority to withdraw funds. Also, they shall be designed to protect against losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the District. Controls deemed most important shall include:

1. Separation of transaction authority from accounting and recordkeeping and electronic transfer of funds.

2. Avoidance of collusion.

3. Custodial safekeeping.

4. Clear delegation of authority.

5. Written confirmation of telephone transactions.

6. Documentation of dealer questionnaires, quotations and bids, evaluations, transactions, and rationale.

7. Avoidance of bearer-form securities.

These controls shall be reviewed by the District’s independent au-diting firm.

In addition to the quarterly report required by law and signed by the District’s investment officer, a comprehensive report on the invest-ment program and activity shall be presented annually to the Board.

SOLICITING BIDS

INTEREST RATE RISK

INTERNAL CONTROLS

PORTFOLIO REPORT

45

Documents

ANNUAL INVESTMENT REPORT€¦ · 2012-2013 ANNUAL INVESTMENT REPORT Tab: Title for the year ended June 30, 2013 NORTH EAST I.S.D. ANNUAL INVESTMENT REPORT