Finance Committee Meeting · The Core Portfolio opened during the quarter with the first purchase occurring on May 9th, 2018. The portfolio opened with a yield to maturity at cost

Children’s Services Council

Finance Committee Meeting Thursday, August 2, 4:00 p.m.

AGENDA / MINUTES

Welcome and introductions

Finance Committee Members: Tom Lynch, CSC Finance Committee Chair Thomas Bean, CSC and CSC Finance Committee Vice-chair Tom Weber, CSC Chair Paul Dumars, Director Financial Services, Solid Waste Authority John Marino, Volunteer

CSC Staff: Lisa Williams-Taylor, Ph.D., CEO Debra Heim, CFO Tom Sheehan, General Counsel Elsa Sanchez, Senior Executive Assistant

Agenda Items:

1 Quarterly Investment Report - June 30, 2018 2 Minutes 6/14/2018 3 CSC Proposed 2018-2019 Budget 4 Financial Statements 5/31/2018 and 6/30/2018 5 Annual review of compliance with Fund Balance Policy 6 Adjournment

Next Meeting: To be scheduled on or before September 7, 2018, the first TRIM Hearing

AGENDA ITEM: 1

TITLE: Quarterly Investment Report – June 30, 2018

STAFF: Debra Heim, Chief Financial Officer, Children’s Services Council of Palm Beach County

PFM Asset Management, LLC: Jason Human and Steve Alexander

SUMMARY:

On a quarterly basis, CSC’s investment policy requires the following information be provided to the Finance Committee:

1. A listing of individual securities held at the end of the reporting period2. Percentage of available funds represented by each investment type3. Coupon, discount or earning rate, total return performance (if applicable)4. Average life or duration and final maturity of all investments5. Par value, and market value

RECOMMENDATION:

For Informational purposes only, no action required.

2

Investment Advisors

213 Market StreetHarrisburg, PA 17101

717.232.2723 717.233.6073 fax

PFM Asset Management LLC

300 South Orange AvenueSuite 1170

Orlando, FL 32801407.648.2208

407.648.1323 fax

Investment Performance Review For the Quarter Ended June 30, 2018

Steven Alexander, CTP, CGFO, CPPT, Managing Director James P. Sims, CFA, DirectorRichard Pengelly, CFA, CTP, DirectorJason Human, Client ManagerSean Gannon, Senior Analyst

Page 1 of 19

3

CHILDREN’S SERVICES COUNCIL OF PALM BEACH COUNTY

For the Quarter Ended June 30, 2018

Executive Summary


The Council’s Core and Short Term Portfolios are of high credit quality and invested in U.S. Treasury, federalagency/GSE, federal agency/CMO, supranational, asset-backed, commercial paper and corporate securities.

The Core Portfolio opened during the quarter with the first purchase occurring on May 9th, 2018. The portfolioopened with a yield to maturity at cost of 2.58%.

At quarter end, the Short Term Portfolio had a yield to maturity at cost of 2.15%, out yielding the Yield to Maturity ofits benchmark, the S&P Rated GIP Index Government 30-Day Gross of Fees yield of 1.87%.

Despite the myriad of global headwinds to economic growth, including global trade wars and geopoliticaluncertainty, the strength and resolve of domestic economic themes continued to rule the day:

– U.S. GDP grew at 2% in the first quarter with YOY growth up to 2.8%;– Inflation trended higher, as the personal consumption expenditures (PCE) core price index grew at 2% YOY

for the first time since 2012;– The labor market saw continued strength as the U.S. unemployment rate reached a multi-decade low of 3.8%

(before bouncing back to 4% in June), job growth remained robust, and wages trended modestly higher;– The S&P 500 Index grinded out a 3.4% return for the quarter;– The Fed increased short-term rates by an additional ¼ percent in June and is expected to continue to pursue

additional gradual rate hikes over the near-term. In light of continued economic growth, inflation near the Fed’s symmetric target of 2%, and strong labor market

conditions, the Fed appears poised to raise rates further. As a result of the expectation for one or two additionalhikes in 2018 and three to four more in 2019, our view remains that the general trend of interest rates will be toincrease gradually over the near-term. Therefore, we plan to maintain a defensive duration posture to mitigate aportion of interest rate risk relative to benchmarks.

Page 2 of 19

4

CSC OF PALM BEACH COUNTY CORE PORTFOLIO


Portfolio Snapshot

Portfolio Statistics

As of June 30, 2018

$40,392,819

$40,092,585

$39,953,694

$138,891

-

Accrued Interest:

Cash:

Par Value:

Total Market Value:

Security Market Value:

$39,947,356

2.63%

2.58%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:

Effective Duration: 1.72 Years

Duration to Worst: 1.72 Years

Average Maturity: 2.02 Years

Credit Quality (S&P Ratings)

5.7%

A

4.8%

A-

3.2%

A+

8.0%

A-1

1.7%

AA

1.9%

AA-

53.1%

AA+

15.6%

AAA

2.7%

BBB+

3.5%

Not Rated

0%

5%

10%

15%

20%

25%

30%

35%

40%

0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years

18.0%

33.4%

36.4%

6.0%4.7%

1.6%

Maturity Distribution

Sector Allocation

10.2%

Asset-Backed

8.0%

Commercial

Paper

21.9%

Corporate

1.4%

Federal

Agency/CMO

19.1%

Federal

Agency/GSE

8.9%

Supra-Sov /

Supra-Natl

Agency

30.5%

U.S.

Treasury


* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.

Account ****0000

Page 3 of 19

5

CSC OF PALM BEACH COUNTY CORE PORTFOLIO


Portfolio Performance

Portfolio Earnings

Quarter-Ended June 30, 2018

Market Value Basis Accrual (Amortized Cost) Basis

Net Purchases/Sales

Change in Value

Interest Earned

$17,989,345.20

$21,923,629.17

$40,719.80

$105,914.61

$146,634.41

$39,953,694.17

$18,001,589.22

$21,923,629.17

$22,137.76

$105,914.61

$128,052.37

$39,947,356.15

Portfolio Earnings

Beginning Value (03/31/2018)

Ending Value (06/30/2018)

PFM Asset Management LLC Account ****0000

Page 4 of 19

6

CSC OF PALM BEACH COUNTY SHORT TERM


Portfolio Snapshot

Portfolio Statistics

As of June 30, 2018

$9,050,000

$9,114,820

$9,011,990

-

$102,830

Accrued Interest:

Cash:

Par Value:

Total Market Value:

Security Market Value:

$9,012,900

2.16%

2.15%

AAAverage Credit: *

Yield at Cost:

Amortized Cost:

Yield at Market:

Effective Duration: 0.18 Years

Duration to Worst: 0.18 Years

Average Maturity: 0.18 Years

Credit Quality (S&P Ratings)

44.2%

A-1

55.8%

A-1+

0%

20%

40%

60%

80%

100%

0 - 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years

100.0%

0.0% 0.0% 0.0% 0.0% 0.0%

Maturity Distribution

Sector Allocation

88.4%

Commercial

Paper

11.6%

Federal

Agency/GSE


* An average of each security’s credit rating assigned a numeric value and adjusted for its relative weighting in the portfolio.

Account ****0100

Page 5 of 19

7



Portfolio Performance

Portfolio Earnings

Quarter-Ended June 30, 2018

Market Value Basis Accrual (Amortized Cost) Basis

Net Purchases/Sales

Change in Value

Interest Earned

$0.00

$8,991,215.54

$20,774.54

$29,237.68

$50,012.22

$9,011,990.08

$0.00

$8,991,215.54

$21,684.73

$29,237.68

$50,922.41

$9,012,900.27

Portfolio Earnings

Beginning Value (03/31/2018)

Ending Value (06/30/2018)


Page 6 of 19

8

For the Quarter Ended June 30, 2018CHILDREN'S SERVICES COUNCIL PALM BEACH Asset Allocation

Security TypeAmortized Cost

(Includes Interest)Allocation

PercentagePermitted by

Policy In ComplianceUnited States Treasury Securities 12,259,997.66 15.92% 100% YESFederal Agency 8,722,810.87 11.33% 80% YESSupranationals 3,552,496.87 4.61% 25% YESCorporate Notes 8,806,073.12 11.44% 50% YESMunicipals - 0.00% 25% YESAgency Mortgage-Backed Securities (MBS) 544,704.69 0.71% 25% YESAsset-Backed Securities 4,069,556.59 5.28% 25% YESCertificates of Deposit and Savings Accounts - 0.00% 50% YESDemand Deposit Bank Account 3,317,606.03 4.31% 100% YESCommercial Paper 11,143,507.46 14.47% 50% YESRepurchase Agreements - 0.00% 40% YESMoney Market Funds 10,533,111.65 13.68% 50% YESIntergovernmental Pools 14,058,480.23 18.26% 50% YES

End of month trade-date amortized cost of portfolio holdings, including accrued interest.

0.7%

5.3%

14.5%

11.4%

11.3%

13.7%

15.9%

18.3%

4.3%

4.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agency Mortgage-Backed Securities (MBS)

Asset-Backed Securities

Commercial Paper

Corporate Notes

Federal Agency

Money Market Funds

United States Treasury Securities

Intergovernmental Pools

Demand Deposit Bank Account

Supranationals

© 2018 PFM Asset Management LLCPage 7 of 19

9


Sector Individual Issuer BreakdownAmortized Cost


PercentagePermitted by Policy In Compliance

Us Tsy Bond/Note UNITED STATES TREASURY 12,259,997.66 15.92% 100% YESSupranatl ASIAN DEVELOPMENT BANK 786,860.47 1.02% 10% YESSupranatl INTER-AMERICAN DEVELOPMENT BANK 790,397.41 1.03% 10% YESSupranatl INTL BANK OF RECONSTRUCTION AND DEV 1,975,238.99 2.56% 10% YESMny Mkt/Mutual Fnd FLORIDA COMMUNITY BANK 10,430,281.48 13.54% 25% YESMbs / Cmo FREDDIE MAC 126,563.09 0.16% 40% YESMbs / Cmo FHLMC MULTIFAMILY STRUCTURED P 418,141.60 0.54% 40% YESIntergovernmental Pools FLORIDA EDUCATION INVESTMENT TRUST FUND 14,058,480.23 18.26% 25% YESFed Agy Bond/Note FANNIE MAE 650,149.19 0.84% 40% YESFed Agy Bond/Note FEDERAL HOME LOAN BANKS 6,069,090.08 7.88% 40% YESFed Agy Bond/Note FREDDIE MAC 2,003,571.60 2.60% 40% YESDemand Deposit Bank Account WELLS FARGO OPERATING ACCOUNT 3,317,606.03 4.31% 100% YESCorporate Note AMERICAN EXPRESS CREDIT CORP 389,527.57 0.51% 5% YESCorporate Note AMERICAN HONDA FINANCE 387,728.86 0.50% 5% YESCorporate Note APPLE INC 396,895.33 0.52% 5% YESCorporate Note CHEVRON CORP 381,908.54 0.50% 5% YESCorporate Note GOLDMAN SACHS GROUP INC 398,951.19 0.52% 5% YESCorporate Note HSBC USA 399,311.76 0.52% 5% YESCorporate Note IBM CORP 391,104.66 0.51% 5% YESCorporate Note JOHN DEERE CAPITAL CORP 397,689.72 0.52% 5% YESCorporate Note MELLON BANK 385,860.46 0.50% 5% YESCorporate Note TOYOTA MOTOR CREDIT CORP 391,374.17 0.51% 5% YESCorporate Note WELLS FARGO & COMPANY 246,779.75 0.32% 5% YESCorporate Note EXXON MOBIL CORP 395,311.49 0.51% 5% YESCorporate Note BRANCH BANKING & TRUST 431,301.81 0.56% 5% YESCorporate Note CITIGROUP INC 248,200.15 0.32% 5% YESCorporate Note MORGAN STANLEY 444,473.77 0.58% 5% YESCorporate Note STATE STREET CORPORATION 242,913.41 0.32% 5% YESCorporate Note BANK OF AMERICA 247,792.18 0.32% 5% YESCorporate Note CATERPILLAR FINANCIAL SERVICES CORP 306,070.25 0.40% 5% YESCorporate Note BANK OF AMERICA CORP 198,748.25 0.26% 5% YESCorporate Note WAL-MART STORES INC 675,085.11 0.88% 5% YESCorporate Note PACCAR FINANCIAL CORP 250,964.58 0.33% 5% YESCorporate Note JPMORGAN CHASE & CO 400,507.58 0.52% 5% YESCorporate Note HERSHEY COMPANY 250,925.49 0.33% 5% YESCorporate Note GENERAL DYNAMICS CORP 250,616.97 0.33% 5% YESCorporate Note CHARLES SCHWAB CORP 296,030.07 0.38% 5% YESCommercial Paper TOYOTA MOTOR CREDIT CORP 996,888.88 1.29% 5% YESCommercial Paper EXXON MOBIL CORP 1,498,276.67 1.95% 5% YESCommercial Paper BNP PARIBAS NY BRANCH 1,794,952.21 2.33% 5% YESCommercial Paper CREDIT AGRICOLE CIB NY 1,791,933.83 2.33% 5% YES


10


Sector Individual Issuer BreakdownAmortized Cost


PercentagePermitted by Policy In Compliance

Commercial Paper JP MORGAN SECURITIES LLC 1,783,744.89 2.32% 5% YESCommercial Paper DEXIA CREDIT LOCAL SA NY 1,486,355.42 1.93% 5% YESCommercial Paper MUFG BANK LTD/NY 1,791,355.56 2.33% 5% YESAsset-Backed ALLY AUTO RECEIVABLES TRUST 755,365.69 0.98% 5% YESAsset-Backed CARMAX AUTO OWNER TRUST 200,266.06 0.26% 5% YESAsset-Backed CNH EQUIPMENT TRUST 325,381.41 0.42% 5% YESAsset-Backed FORD CREDIT AUTO OWNER TRUST 445,528.95 0.58% 5% YESAsset-Backed AMERICAN EXPRESS CREDIT ACCOUN 394,210.92 0.51% 5% YESAsset-Backed BANK OF AMERICA CREDIT CARD TR 394,065.42 0.51% 5% YESAsset-Backed HONDA AUTO RECEIVABLES OWNER T 663,166.96 0.86% 5% YESAsset-Backed NISSAN AUTO RECEIVABLES OWNER 591,251.14 0.77% 5% YESAsset-Backed CAPITAL ONE MULTI-ASSET EXECUT 300,320.04 0.39% 5% YES

End of month trade-date amortized cost of portfolio holdings, including accrued interest.


11

For the Month Ending June 30, 2018Managed Account Fair Market Value & Analytics

CSC OF PALM BEACH COUNTY CORE PORTFOLIO - 13940000

Value On Cost Amort Cost to WorstCUSIP Broker Date PriceDated Date/Coupon/Maturity Par at Mkt

Market Unreal G/L Unreal G/L DurationNext Call MarketSecurity Type/Description YTMEffective

Duration

U.S. Treasury Bond / Note

1.22 403.11 1,257.24 1,140,296.30 99.16 CITIGRP 1,150,000.00 912828F39US TREASURY NOTES

DTD 09/30/2014 1.750% 09/30/2019

2.44 1.22

1.39 751.62 1,933.78 1,484,883.00 98.99 GOLDMAN 1,500,000.00 9128283H1US TREASURY N/B

DTD 11/30/2017 1.750% 11/30/2019

2.48 1.39

1.54 693.02 1,250.06 992,461.00 99.25 MORGAN_S 1,000,000.00 9128283S7US TREASURY N/B NOTES

DTD 01/31/2018 2.000% 01/31/2020

2.49 1.54

1.63 225.63 1,077.86 588,913.80 98.15 TD 600,000.00 912828J50US TREASURY NOTES

DTD 03/02/2015 1.375% 02/29/2020

2.51 1.63

1.79 577.86 1,191.28 489,765.50 97.95 MORGAN_S 500,000.00 912828K58US TREASURY NOTES

DTD 04/30/2015 1.375% 04/30/2020

2.52 1.79

1.79 1,345.84 2,773.19 979,531.00 97.95 CITIGRP 1,000,000.00 912828K58US TREASURY NOTES

DTD 04/30/2015 1.375% 04/30/2020

2.52 1.79

1.87 (970.51) 210.71 1,765,265.40 98.07 CITIGRP 1,800,000.00 912828XE5US TREASURY NOTES

DTD 06/01/2015 1.500% 05/31/2020

2.54 1.87

1.95 1,098.25 1,991.75 987,148.00 98.71 GOLDMAN 1,000,000.00 912828VJ6US TREASURY NOTES

DTD 07/01/2013 1.875% 06/30/2020

2.54 1.95

2.11 1,812.91 3,085.69 975,156.00 97.52 CITIGRP 1,000,000.00 912828L32US TREASURY NOTES

DTD 08/31/2015 1.375% 08/31/2020

2.56 2.11

2.19 1,802.66 3,085.50 974,023.00 97.40 GOLDMAN 1,000,000.00 912828L65US TREASURY NOTES

DTD 09/30/2015 1.375% 09/30/2020

2.57 2.19

2.27 2,619.69 4,140.12 972,812.00 97.28 MORGAN_S 1,000,000.00 912828L99US TREASURY NOTES

DTD 10/31/2015 1.375% 10/31/2020

2.58 2.27

2.81 410.82 773.16 884,425.50 98.27 MERRILL 900,000.00 912828WN6US TREASURY NOTES

DTD 06/02/2014 2.000% 05/31/2021

2.62 2.81

22,770.34 2.53 1.85 10,770.90 12,234,680.50 12,450,000.00 Security Type Sub-Total 1.85

Supra-National Agency Bond / Note

1.76 (550.03)(56.81) 789,256.00 98.66 TD 800,000.00 459058FZ1INTL BK RECON & DEVELOP NOTES

DTD 03/21/2017 1.875% 04/21/2020

2.64 1.76

1.80 54.55 1,060.80 784,892.80 98.11 HSBC 800,000.00 045167DZ3ASIAN DEVELOPMENT BANK NOTE

DTD 05/05/2017 1.625% 05/05/2020

2.68 1.80

Page 10 of 19

12





Duration

Supra-National Agency Bond / Note

2.11 1,237.18 2,296.00 782,344.00 97.79 HSBC 800,000.00 459058GA5INTL BANK OF RECON AND DEV GLOBAL

NOTES

DTD 08/29/2017 1.625% 09/04/2020

2.67 2.11

2.25 (849.80)(702.00) 394,918.00 98.73 BARCLAYS 400,000.00 459058DH3INTL BK RECON & DEVELOP NOTES

DTD 11/01/2013 2.125% 11/01/2020

2.69 2.25

2.28 1,298.15 1,920.00 789,240.00 98.66 SOCGEN 800,000.00 4581X0CD8INTER-AMERICAN DEVELOPMENT BANK

DTD 11/08/2013 2.125% 11/09/2020

2.72 2.28


Federal Agency Collateralized Mortgage Obligation

0.81 (1,408.52)(1,433.96) 284,253.54 101.52 CITIGRP 280,000.00 31398VJ98FHLMC MULTIFAMILY STRUCTURED P

DTD 04/01/2010 4.251% 01/25/2020

2.05 1.38

3.27 (157.51)(161.31) 126,089.03 100.11 BARCLAYS 125,950.22 3137B4GX8FHLMC SERIES K032 A1

DTD 09/01/2013 3.016% 02/01/2023

2.92 2.31

2.30 (14.73)(14.73) 131,179.61 99.48 BARCLAYS 131,869.14 3137B5JL8FHLMC MULTIFAMILY STRUCTURED P

DTD 11/01/2013 2.669% 02/25/2023

2.82 2.27

(1,610.00) 2.44 1.75 (1,580.76) 541,522.18 537,819.36 Security Type Sub-Total 1.81

Federal Agency Bond / Note

0.12 (3,707.52)(5,473.80) 3,996,368.00 99.91 NEW ACCT 4,000,000.00 3130A6B63FHLB AGENCY NOTES

DTD 08/14/2015 1.200% 08/14/2018

1.94 0.12

1.75 (289.16)(177.00) 998,253.00 99.83 GOLDMAN 1,000,000.00 3137EAEM7FHLMC NOTES

DTD 04/19/2018 2.500% 04/23/2020

2.60 1.75

1.85 647.03 667.00 1,000,307.00 100.03 BARCLAYS 1,000,000.00 3130AECJ7FEDERAL HOME LOAN BANKS NOTES

DTD 05/21/2018 2.625% 05/28/2020

2.61 1.85

2.51 1,214.81 1,678.00 992,338.00 99.23 CITIGRP 1,000,000.00 3137EAEL9FREDDIE MAC NOTES

DTD 02/16/2018 2.375% 02/16/2021

2.68 2.51

2.84 725.93 726.70 650,577.20 100.09 NOMURA 650,000.00 3135G0U35FANNIE MAE NOTES

DTD 06/25/2018 2.750% 06/22/2021

2.72 2.84

(2,579.10) 2.27 1.10 (1,408.91) 7,637,843.20 7,650,000.00 Security Type Sub-Total 1.10

Page 11 of 19

13





Duration

Corporate Note

1.62 (954.47)(771.60) 395,328.40 98.83 MIZUHO 400,000.00 40428HPR7HSBC USA INC NOTES

DTD 03/05/2015 2.350% 03/05/2020

3.07 1.62

1.75 (128.43) 120.00 246,570.00 98.63 BNP_PARI 250,000.00 06051GFN4BANK OF AMERICA NOTES

DTD 04/21/2015 2.250% 04/21/2020

3.03 1.75

1.80 109.54 135.75 249,728.25 99.89 BNP_PARI 250,000.00 369550BA5GENERAL DYNAMICS CORP

DTD 05/11/2018 2.875% 05/11/2020

2.93 1.80

1.81 (209.66)(203.75) 249,688.75 99.88 HSBC 250,000.00 427866AY4HERSHEY COMPANY

DTD 05/10/2018 2.900% 05/15/2020

2.97 1.81

1.80 (223.11)(219.60) 304,722.45 99.91 CITIGRP 305,000.00 14913Q2J7CATERPILLAR FINL SERVICE

DTD 05/16/2018 2.950% 05/15/2020

3.00 1.80

1.89 (192.59)(117.80) 198,386.20 99.19 BNP_PARI 200,000.00 61761JB32MORGAN STANLEY CORPORATE NOTES

DTD 06/16/2015 2.800% 06/16/2020

3.23 1.89

1.91 1,175.34 1,176.00 401,052.00 100.26 CITIGRP 400,000.00 931142EG4WAL-MART STORES INC CORP NOTES

DTD 06/27/2018 2.850% 06/23/2020

2.71 1.91

2.11 (1,386.40)(1,183.26) 385,127.34 98.75 08/14/20GOLDMAN 390,000.00 0258M0DX4AMERICAN EXP (CALLABLE) CREDIT CORP

NOTE

DTD 09/14/2015 2.600% 09/14/2020

3.19 2.10

2.11 (481.90)(285.60) 395,230.40 98.81 08/15/20MKTX 400,000.00 38141GVP6GOLDMAN SACHS GRP INC CORP NT

(CALLABLE)

DTD 09/15/2015 2.750% 09/15/2020

3.31 2.09

2.14 (74.56) 219.96 385,079.76 98.74 MITSU 390,000.00 02665WAZ4AMERICAN HONDA FINANCE CB

DTD 09/24/2015 2.450% 09/24/2020

3.04 2.14

2.20 (158.25)(58.00) 197,540.00 98.77 MERRILL 200,000.00 06051GFT1BANK OF AMERICA CORP NOTE

DTD 10/19/2015 2.625% 10/19/2020

3.18 2.20

2.22 (393.72)(219.75) 246,610.25 98.64 MKTX 250,000.00 172967KB6CITIGROUP INC CORP NOTES

DTD 10/26/2015 2.650% 10/26/2020

3.26 2.22

2.40 (184.50) 96.00 392,988.00 98.25 BAIRD 400,000.00 24422ETZ2JOHN DEERE CAPITAL CORP NOTES

DTD 01/08/2018 2.350% 01/08/2021

3.08 2.40

2.45 (280.66) 192.00 387,604.00 96.90 US_BANCO 400,000.00 44932HAB9IBM CREDIT CORP NOTE

DTD 09/08/2017 1.800% 01/20/2021

3.07 2.45

2.47 (723.58)(422.25) 243,125.25 97.25 01/01/21RBS 250,000.00 05531FAZ6BRANCH BANKING & TRUST (CALLABLE)

NOTES

DTD 10/26/2017 2.150% 02/01/2021

3.27 2.47

Page 12 of 19

14





Duration

Corporate Note

2.53 (653.33)(350.00) 393,042.00 98.26 GOLDMAN 400,000.00 037833BS8APPLE INC CORP NOTES

DTD 02/23/2016 2.250% 02/23/2021

2.94 2.53

2.53 (717.47)(646.50) 247,836.00 99.13 LOOP 250,000.00 69371RN93PACCAR FINANCIAL CORP NOTES

DTD 02/27/2018 2.800% 03/01/2021

3.14 2.53

2.55 289.18 622.00 392,638.00 98.16 02/01/21SOCGEN 400,000.00 30231GAV4EXXON MOBIL CORPORATE (CALLABLE)

NOTES

DTD 03/03/2016 2.222% 03/01/2021

2.94 2.53

2.54 (327.75)(64.25) 244,420.75 97.77 TD 250,000.00 949746RS2WELLS FARGO CORP NOTES

DTD 03/04/2016 2.500% 03/04/2021

3.38 2.54

2.64 (891.09)(835.77) 387,990.33 99.48 US_BANCO 390,000.00 89236TEU5TOYOTA MOTOR CREDIT CORP CORP

NOTES

DTD 04/13/2018 2.950% 04/13/2021

3.14 2.64

2.66 (979.30)(699.27) 382,822.83 98.16 03/15/21RBS 390,000.00 06406FAA1BANK OF NEW YORK MELLON CORP

(CALLABLE)

DTD 02/19/2016 2.500% 04/15/2021

3.19 2.65

2.67 (274.37)(10.50) 244,172.00 97.67 MORGAN_S 250,000.00 61746BEA0MORGAN STANLEY CORP NOTES

DTD 04/21/2016 2.500% 04/21/2021

3.38 2.67

2.76 (10.79) 413.40 380,874.00 97.66 04/15/21WELLS_FA 390,000.00 166764BG4CHEVRON CORP (CALLABLE) NOTES

DTD 05/16/2016 2.100% 05/16/2021

2.95 2.75

2.77 (149.41) 205.25 242,195.25 96.88 HSBC 250,000.00 857477AV5STATE STREET CORP NOTES

DTD 05/19/2016 1.950% 05/19/2021

3.09 2.77

2.73 1,187.40 1,187.67 296,178.82 100.40 CSFB 295,000.00 808513AW5CHARLES SCHWAB CORP CORP NOTES

DTD 05/22/2018 3.250% 05/21/2021

3.10 2.73

2.83 1,377.99 1,378.03 276,364.28 100.50 CITIGRP 275,000.00 931142EJ8WAL-MART STORES INC CORP NOTES

DTD 06/27/2018 3.125% 06/23/2021

2.95 2.83

2.99 (370.62)(364.63) 184,415.22 99.68 MORGAN_S 185,000.00 05531FBD4BRANCH BANKING & TRUST CORP NOTES

DTD 06/05/2018 3.200% 09/03/2021

3.30 2.99

3.67 308.00 308.00 400,308.00 100.08 JPM_CHAS 400,000.00 46647PAS5JPMORGAN CHASE & CO CORP NOTES

DTD 06/18/2018 3.514% 06/18/2022

3.49 3.67

(398.47) 3.11 2.39 (5,318.51) 8,752,038.53 8,860,000.00 Security Type Sub-Total 2.38

Commercial Paper

Page 13 of 19

15





Duration

Commercial Paper

0.11 60.45 2,565.11 798,096.00 99.76 BNP_PARI 800,000.00 09659CHA9BNP PARIBAS NY BRANCH COMM PAPER

DTD 11/15/2017 0.000% 08/10/2018

2.09 0.11

0.26 (34.40) 2,305.60 794,973.60 99.37 CREDAG 800,000.00 22533UK51CREDIT AGRICOLE CIB NY COMM PAPER

DTD 04/09/2018 0.000% 10/05/2018

2.35 0.26

0.35 (28.89) 2,702.44 793,116.00 99.14 JPM_CHAS 800,000.00 46640QL66JP MORGAN SECURITIES LLC COMM PAPER

DTD 04/10/2018 0.000% 11/06/2018

2.42 0.35

0.37 274.00 3,128.22 792,864.00 99.11 BTM 800,000.00 62479MLD3MUFG BANK LTD/NY COMM PAPER

DTD 05/09/2018 0.000% 11/13/2018

2.38 0.37

10,701.37 2.31 0.27 271.16 3,179,049.60 3,200,000.00 Security Type Sub-Total 0.27

Asset-Backed Security / Collateralized Mortgage Obligation

1.56 (211.45)(211.50) 199,811.94 99.91 INTL_FCS 200,000.00 14314XAB5CARMX 2018-2 A2

DTD 04/25/2018 2.730% 08/15/2021

2.79 1.01

1.64 316.25 467.83 393,624.08 98.41 WELLS_FA 400,000.00 65478GAD2NISSAN ABS 2017-B A3

DTD 08/23/2017 1.750% 10/15/2021

2.73 1.45

1.72 156.87 227.13 355,136.51 98.65 BARCLAYS 360,000.00 02007FAC9ALLY ABS 2017-4 A3

DTD 08/23/2017 1.750% 12/15/2021

2.54 1.23

1.80 64.89 66.38 482,470.87 99.48 HSBC 485,000.00 43814UAC3HAROT 2018-1 A3

DTD 02/28/2018 2.640% 02/15/2022

2.93 1.90

1.27 (178.80)(156.92) 197,264.96 98.63 INTL_FCS 200,000.00 65478HAD0NAROT 2017-C A3

DTD 12/13/2017 2.120% 04/15/2022

3.20 1.95

1.92 225.21 225.39 180,221.47 100.12 BARCLAYS 180,000.00 43814UAG4HAROT 2018-2 A3

DTD 05/30/2018 3.010% 05/18/2022

2.95 2.27

2.04 161.05 161.05 393,879.80 98.47 MERRILL 400,000.00 05522RCW6BANK OF AMERICA ABS 2017-A1 A1

DTD 03/30/2017 1.950% 08/15/2022

2.70 1.67

2.08 233.67 242.10 394,101.48 98.53 BNP_PARI 400,000.00 02587AAJ3AMERICAN EXPRESS CREDIT ACCOUN

DTD 02/21/2017 1.930% 09/15/2022

2.64 1.59

2.15 556.48 558.12 445,486.16 100.11 RBC 445,000.00 34528FAD0FORDO 2018-A A3

DTD 05/22/2018 3.030% 11/15/2022

2.98 2.07

2.22 (0.08) 0.00 399,972.64 99.99 BARCLAYS 400,000.00 02007JAC1ALLYA 2018-3 A3

DTD 06/27/2018 3.000% 01/15/2023

3.00 2.17

1.76 722.48 723.03 325,653.22 100.20 CITIGRP 325,000.00 12652VAC1CNH EQUIPMENT TRUST

DTD 05/23/2018 3.120% 07/15/2023

3.01 2.49

Page 14 of 19

16





Duration

Asset-Backed Security / Collateralized Mortgage Obligation

2.75 367.52 369.24 300,286.23 100.10 RBC 300,000.00 14041NFR7COMET 2018-A1 A1

DTD 05/16/2018 3.010% 02/15/2024

2.98 2.65


40,392,819.36 39,953,694.17 36,073.98 6,338.02 1.72 2.63 Managed Account Sub-Total 1.72

Total Investments $40,092,585.01

$138,890.84

$39,953,694.17

Accrued Interest

Securities Sub-Total $40,392,819.36 $36,073.98 $6,338.02 1.72 2.63% 1.72

Page 15 of 19

17


CSC OF PALM BEACH COUNTY SHORT TERM - 13940100



Duration

Federal Agency Discount Note

0.09 (10.87) 2,205.80 1,048,160.38 99.82 MIZUHO 1,050,000.00 313385A55FEDERAL HOME LOAN BANKS DISC NOTE

DTD 08/03/2017 0.000% 08/03/2018

1.86 0.09

2,205.80 1.86 0.09 (10.87) 1,048,160.38 1,050,000.00 Security Type Sub-Total 0.09

Commercial Paper

0.06 (130.56) 2,170.00 998,635.00 99.86 BTM 1,000,000.00 62479MGP2MUFG BANK LTD/NY COMM PAPER

DTD 04/20/2018 0.000% 07/23/2018

2.14 0.06

0.06 (234.17) 2,899.17 1,498,042.50 99.87 EXXON 1,500,000.00 30229BGP6EXXON MOBIL CORP COMM PAPER

DTD 05/21/2018 0.000% 07/23/2018

2.05 0.06

0.14 128.12 2,679.22 997,017.00 99.70 TOYOTA 1,000,000.00 89233HHL1TOYOTA MOTOR CREDIT CORP COMM

PAPER

DTD 05/18/2018 0.000% 08/20/2018

2.11 0.14

0.14 89.34 2,617.67 997,006.00 99.70 BNP_PARI 1,000,000.00 09659CHL5BNP PARIBAS NY BRANCH COMM PAPER

DTD 12/18/2017 0.000% 08/20/2018

2.12 0.14

0.14 29.17 2,500.56 996,955.00 99.70 CREDAG 1,000,000.00 22533UHM8CREDIT AGRICOLE CIB NY COMM PAPER

DTD 05/18/2018 0.000% 08/21/2018

2.11 0.14

0.38 (189.00) 2,477.67 990,411.00 99.04 JPM_CHAS 1,000,000.00 46640QLK5JP MORGAN SECURITIES LLC COMM PAPER

DTD 05/21/2018 0.000% 11/19/2018

2.45 0.38

0.39 (592.22) 3,224.45 1,485,763.20 99.05 DEXIA 1,500,000.00 25214PH63DEXIA CREDIT LOCAL SA NY COMM PAPER

DTD 05/22/2018 0.000% 11/21/2018

2.40 0.39

18,568.74 2.20 0.19 (899.32) 7,963,829.70 8,000,000.00 Security Type Sub-Total 0.19

9,050,000.00 9,011,990.08 20,774.54 (910.19) 0.18 2.16 Managed Account Sub-Total 0.18

Total Investments $9,011,990.08

$0.00

$9,011,990.08

Accrued Interest

Securities Sub-Total $9,050,000.00 $20,774.54 ($910.19) 0.18 2.16% 0.18

Page 16 of 19

18



Appendix

IMPORTANT DISCLOSURES

This material is based on information obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its

accuracy, completeness or suitability. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as

to what will or may happen under certain circumstances are based on assumptions, some, but not all of which, are noted in the presentation. Assumptions may or may not be proven

correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does

not necessarily reflect and is not a guaranty of future results.The information contained in this presentation is not an offer to purchase or sell any securities.

Dime

Ã Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate.

Where prices are not available from generally recognized sources, the securities are priced using a yield based matrix system to arrive at an estimated market value.

Ã In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and

forward settling sales are excluded.

Ã Performance is presented in accordance with the CFA Institute ’s Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees.

Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of

future returns.

Ã Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.

Ã Money market fund/cash balances are included in performance and duration computations.

Ã Standard & Poorʼs is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.

Ã Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.

Ã MBS maturities are represented by expected average life.


Page 17 of 19

19



Appendix

GLOSSARY

Ã ACCRUED INTEREST: Interest that is due on a bond or other fixed income security since the last interest payment was made.

Ã AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

Ã AMORTIZED COST: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until

the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis.

Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

Ã BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.

Ã COMMERCIAL PAPER: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.

Ã CONTRIBUTION TO DURATION: Represents each sector or maturity range ’s relative contribution to the overall duration of the portfolio measured as a percentage weighting. Since

duration is a key measure of interest rate sensitivity, the contribution to duration measures the relative amount or contribution of that sector or maturity range to the total rate

sensitivity of the portfolio.

Ã DURATION TO WORST: A measure of the sensitivity of a security ’s price to a change in interest rates, stated in years, computed from cash flows to the maturity date or to the put

date, whichever results in the highest yield to the investor.

Ã EFFECTIVE DURATION: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.

Ã EFFECTIVE YIELD: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on

investment returns, while ominal yield does not.

Ã FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.

Ã INTEREST RATE: Interest per year divided by principal amount and expressed as a percentage.

Ã MARKET VALUE: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.

Ã MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

Ã NEGOTIABLE CERTIFICATES OF DEPOSIT: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.

Ã PAR VALUE: The nominal dollar face amount of a security.


Page 18 of 19

20



Appendix

GLOSSARY

Ã PASS THROUGH SECURITY: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the

mortgage-backed security.

Ã REPURCHASE AGREEMENTS: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.

Ã SETTLE DATE: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity

proceeds) occurs on a non-business day, the funds are exchanged on the next business day.

Ã TRADE DATE: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.

Ã UNSETTLED TRADE: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.

Ã U.S. TREASURY: The department of the U.S. government that issues Treasury securities.

Ã YIELD: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on

an annualized basis.

Ã YTM AT COST: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from

purchase date to maturity, stated as a percentage on an annualized basis.

Ã YTM AT MARKET: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period

remaining until maturity, stated as a percentage on an annualized basis.


Page 19 of 19

21

Children’s Services Council

Finance Committee Meeting Thursday, June 14, 2018, 4:30 p.m.

AGENDA / MINUTES

Welcome and introductions

Finance Committee Members: Tom Lynch, CSC Finance Committee Chair, Present via telephone Thomas Bean, CSC and CSC Finance Committee Vice-chair, Not Present Tom Weber, CSC Chair, Not Present Paul Dumars, Director Financial Services, Solid Waste Authority, Present John Marino, Volunteer, Not Present

CSC Staff: Lisa Williams-Taylor, Ph.D., CEO, Present Debra Heim, CFO, Present Tom Sheehan, General Counsel, Present Elsa Sanchez, Senior Executive Assistant, Present

Agenda Items:

1 Minutes 5/22/2018, Recommends Council to approve 2 CSC Proposed 2018/2019 Budget (April 26, 2018 version) vs. CSC Revised Proposed

Budget 2018/2019, For informational purposes only 3 CSC Revised Proposed 2018-2019 Budget, Recommends Council tentative approval

of proposed 2018-2019 CSC Annual Budget and authorize staff to provide the Property Appraiser the tentative millage rate contained in the Budget (with staff having the authority to adjust the millage rate to provide the same amount of budgeted tax revenue in the event the final figures from the Property Appraiser are different than the preliminary figures used to calculate the tax revenue).

On 6/27/2018, the final letter from the Property Appraiser was received. The final number was a 6.2% increase in the tax base (the preliminary number presented to the Finance Committee was a 5.84% increase). Based on the consensus recommendation of the Finance Committee to adjust the Millage to keep the budgeted tax revenues the same, recommends Council approval of the Millage Rate at .6403 (rather than .6425).

22

4 CSC Revised Budget Forecasts 2018-2019 through 2022-2023, For informational purposes only

5 Adjournment

Next Meeting: August 2, 2018 4:00pm

23

AGENDA ITEM: 3

TITLE: Proposed 2018-2019 CSC Annual Budget

CSC STAFF: Debra Heim, Chief Financial Officer

SUMMARY:

In addition to the notes to the budget, this budget incorporates the goals, strategies and outcomes that have been presented at the Annual Council Planning Sessions.

Ad valorem tax revenue to support the proposed budget amounts to $120,540,063 which is based on a projected 6.2% increase in the total tax base within Palm Beach County offset by a reduction in millage of 2.8%. The proposed millage rate will be reduced to .6403 compared to the prior year millage rate of .6590, reflecting a net increase in revenue of 3.19%.

The proposed 2018‐2019 CSC Annual Budget is submitted reflecting the budget of the Children’s Services Council including its special revenue fund, which is also known as Prevention Partnerships for Children, Inc. The total proposed expenditures are $137,681,992.

Of the total proposed $137,681,992, Children’s Programs Direct Services are budgeted for $113,196,465 or 82.22% and Program Administrative Support is budgeted for $10,220,687 or 7.42% for a combined total of $123,417,152 or 89.64% of the total budget. The Children’s Programs Direct Services budget reflects a 4.46% or $4,835,000 increase from 2017/2018. This increase is attributed to supporting needed growth and newly identified community needs. The Program Administrative Support budget reflects a 4.0% or $393,208 increase which relates to the increase in the total budget as well as the annual evaluation of the allocation of staff to support services and administrative expenses.

The proposed budget for the administrative costs of the Council is $5,591,996 representing a 2.77% or $150,632 increase from the 2017/2018 budget. This increase relates to the increase in the total budget as well as the annual evaluation of the allocation of staff to support services and administrative expenses. The proposed budget for capital expenses is $100,000 for computer hardware and software, representing a 61.9% decrease or $162,500.

The budget being proposed contains a projected 10% increase over the 2017/2018 health insurance premiums, a 3% total merit pool in correlation with staff performance evaluations and .5% total pool in relation to promotional increases.

RECOMMENDATION:

We recommend the Finance Committee and Council approve the proposed 2018‐2019 Annual Budget. The budget will be the subject of the two TRIM Hearings in September before becoming final.

24

CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTYPROPOSED ANNUAL BUDGET

OCTOBER 1, 2018 - SEPTEMBER 30, 2019

2017/18 2018/19 INCREASE %APPROVED

BUDGETPROPOSED

BUDGET(DECREASE)DIFFERENCE

INCREASE (DECREASE)

REVENUESAD VALOREM TAXES 116,814,453$ 120,540,063$ 3,725,610$ 3.19%GRANT INCOME Palm Beach County Head Start Match 1,100,000 - (1,100,000) (100.00%) Department of Health/Agency for Health Care Administration 3,355,246 3,355,246 - 0.00% Sub-Total Grant Income 4,455,246 3,355,246 (1,100,000) (24.69%)INTEREST INCOME 500,000 1,400,000 900,000 180.00%INCOME FROM TENANTS 75,000 77,013 2,013 2.68%OTHER INCOME 125,000 98,824 (26,176) (20.94%)CASH BALANCES BROUGHT FORWARD 10,281,153 12,210,846 1,929,693 18.77%TOTAL 132,250,852$ 137,681,992$ 5,431,140$ 4.11%

EXPENDITURESCHILDREN'S PROGRAMS Direct Services 108,361,465$ 113,196,465$ 4,835,000$ 4.46% Support Services 9,827,479 10,220,687 393,208 4.00% Sub-Total Children's Programs 118,188,944 123,417,152 5,228,208 4.42%ADMINISTRATIVE EXPENSES 5,441,364 5,591,996 150,632 2.77%CAPITAL EXPENDITURES 262,500 100,000 (162,500) (61.90%)NON OPERATING EXPENSES Palm Beach County Property Appraiser Fees 848,079 840,440 (7,639) (0.90%) Palm Beach County Tax Collector Fees 2,336,759 2,410,801 74,042 3.17% Sub-Total 3,184,838 3,251,241 66,403 2.08%CONTINGENCY 500,000 500,000 - 0.00%SUB-TOTAL EXPENDITURES 127,577,646 132,860,389 5,282,743 4.14%RESERVE FOR UNCOLLECTIBLE TAX 4,673,206 4,821,603 148,397 3.18%TOTAL 132,250,852$ 137,681,992$ 5,431,140$ 4.11%

PROPOSED MILLAGE RATE: 0.6403

25


OCTOBER 1, 2018 - SEPTEMBER 30, 2019

REVENUESAD VALOREM TAXES 120,540,063$ 89.28% - 0.00% 120,540,063$ 87.55%GRANT INCOME Department of Health/Agency for Health Care Administration 3,355,246 2.48% - 0.00% 3,355,246 2.44% Sub-Total Grant Income 3,355,246 2.48% - 0.00% 3,355,246 2.44%INTEREST INCOME 1,400,000 1.04% - 0.00% 1,400,000 1.02%INCOME FROM TENANTS 77,013 0.06% - 0.00% 77,013 0.06%OTHER INCOME 98,824 0.07% - 0.00% 98,824 0.07%TRANSFER IN (OUT) (2,661,433) -1.97% 2,661,433 100.00% - 0.00%CASH BALANCES BROUGHT FORWARD 12,210,846 9.04% - 0.00% 12,210,846 8.87%TOTAL 135,020,559$ 100.00% 2,661,433$ 100.00% 137,681,992$ 100.00%

EXPENDITURESCHILDREN'S PROGRAMS Direct Services Program Services 108,740,032$ 80.54% 2,661,433$ 100.00% 111,401,465$ 80.91% Special Funds and Other 95,000 0.07% - 0.00% 95,000 0.07% Public Education/Awareness 1,700,000 1.26% - 0.00% 1,700,000 1.23%

Sub-total Direct Services 110,535,032 81.87% 2,661,433 100.00% 113,196,465 82.22% Support Services Program Support Expenses 10,220,687 7.57% - 0.00% 10,220,687 7.42%

Sub-total Support Services 10,220,687 7.57% - 0.00% 10,220,687 7.42%Sub-Total Children's Programs 120,755,719 89.44% 2,661,433 100.00% 123,417,152 89.64%

ADMINISTRATIVE EXPENSES 5,591,996 4.14% - 0.00% 5,591,996 4.06%CAPITAL EXPENDITURES 100,000 0.07% - 0.00% 100,000 0.07%NON OPERATING EXPENSES Palm Beach County Property Appraiser Fees 840,440 0.62% - 0.00% 840,440 0.61% Palm Beach County Tax Collector Fees 2,410,801 1.79% - 0.00% 2,410,801 1.75% Sub-Total Non Operating Expenses 3,251,241 2.41% - 0.00% 3,251,241 2.36%CONTINGENCY 500,000 0.37% - 0.00% 500,000 0.36%SUB-TOTAL EXPENDITURES 130,198,956 96.43% 2,661,433 100.00% 132,860,389 96.50%RESERVE FOR UNCOLLECTIBLE TAX 4,821,603 3.57% - 0.00% 4,821,603 3.50%TOTAL 135,020,559$ 100.00% 2,661,433$ 100.00% 137,681,992$ 100.00%

MILLAGE RATE: 0.6403

FOR CHILDREN, INC. TOTAL BUDGET

GENERAL FUND SPECIAL REVENUE FUNDPREVENTION PARTNERSHIPS 2018 - 2019

26


GENERAL FUNDOCTOBER 1, 2018 - SEPTEMBER 30, 2019

Executive Talent & Finance Program Communications Information TOTALSExpenses Administration Operations Services Management

SALARIES 462,377 1,072,817 1,155,232 3,725,957 667,557 1,395,836 8,479,776

TEMPORARY PERSONNEL - - - 15,000 - - 15,000

FRINGE BENEFITSA. FICA 20,266 64,155 70,531 228,500 39,454 83,862 506,768 B. FICA MED 6,704 15,556 16,751 54,026 9,680 20,240 122,957 C. FL Unemployment 694 1,610 1,733 5,589 1,001 2,094 12,721 D. Workers' Comp 671 2,909 3,357 11,190 1,790 3,357 23,275 E. Health Plan 96,471 284,956 358,523 1,276,763 179,152 401,345 2,597,210 F. Retirement 67,955 154,111 150,060 464,704 83,405 170,503 1,090,737 G. Long Term Disability 1,630 3,960 4,210 13,652 2,464 5,190 31,105 H. Tuition Reimbursement - 65,000 - - - - 65,000 I. Retirement Health Savings 3,559 15,424 17,797 59,322 9,492 17,797 123,390 J. Short Term Disability 1,359 3,301 3,508 11,380 2,054 4,324 25,925 K. Other Fringe Benefits 3,600 15,600 18,000 60,000 9,600 18,000 124,800 L. Auto Allowance 7,000 - - - - - 7,000

Total Fringe Benefits 209,911 626,580 644,470 2,185,125 338,091 726,710 4,730,888

TOTAL PERSONNEL 672,288 1,699,397 1,799,702 5,926,082 1,005,649 2,122,547 13,225,664

TRAVELA. Local Mileage 300 400 3,185 5,250 3,500 500 13,135 B. Staff Development / CSC Business-Related Travel 17,000 33,000 29,000 85,000 24,000 20,000 208,000 C. Council Member Travel 2,000 - - - - - 2,000

TOTAL TRAVEL 19,300 33,400 32,185 90,250 27,500 20,500 223,135

BUILDING SPACEA. Maintenance & Security 12,404 53,750 62,020 206,731 33,077 62,019 430,001 B. Utilities 4,615 20,000 23,077 76,922 12,308 23,077 159,999 C. Emergency Maintenance Fund 1,442 6,250 7,212 24,038 3,846 7,212 50,000 D. Quantum Park Fees and Assessments 346 1,499 1,731 5,769 923 1,731 11,999 E. Non Ad Valorem Assessments 1,029 4,460 5,145 17,153 2,744 5,146 35,677

TOTAL BUILDING SPACE 19,836 85,959 99,185 330,613 52,898 99,185 687,676

COMMUNICATIONSA. Voice/Data 1,690 7,325 8,452 28,173 4,508 8,452 58,600 B. Postage - - 6,000 - - - 6,000

2017 Tax Notices - 8,000 - - - 8,000 Total Postage - - 14,000 - - - 14,000 TOTAL COMMUNICATIONS 1,690 7,325 22,452 28,173 4,508 8,452 72,600

PRINTING & SUPPLIESA. Supplies 1,154 5,001 5,769 19,231 3,077 5,769 40,001 B. Meeting Supplies 2,400 5,200 700 5,000 750 400 14,450 C. Computer Supplies - - - - 15,000 15,000 D. Printing 100 250 450 1,000 75,000 1,600 78,400 E. Photography/Video - - - 50,000 - 50,000

TOTAL PRINTING & SUPPLIES 3,654 10,451 6,919 25,231 128,827 22,769 197,851

27


GENERAL FUNDOCTOBER 1, 2018 - SEPTEMBER 30, 2019

Executive Talent & Finance Program Communications Information TOTALSExpenses Administration Operations Services Management

OTHER EXPENSESA. Purchase of Service

1. Legal 35,000 - - - - - 35,000 2. Audit - - 60,400 - - - 60,400 3. Consulting 5,000 30,000 22,000 168,378 20,000 25,000 270,378 4. Inspector General Fee - 58,095 58,096 - - - 116,191

B. Insurance 210,000 - - - - - 210,000 C. Staff Development - In House - 65,000 - - - - 65,000 D. Dues 132,000 7,500 2,700 1,980 2,500 3,000 149,680 E. Background Checks/Fingerprinting - 2,000 - - - - 2,000 F. Subscriptions/Publications 2,500 17,500 1,541 2,000 7,000 500 31,041 G. Public Notices & Employment Ads - 25,000 - - - - 25,000 H. Copier Equipment 1,298 5,625 6,491 21,635 3,462 6,490 45,001 I. Computer Maint & Support - - - - - 304,565 304,565 J. Banking Services - - 6,500 - - - 6,500 K. Investment Advisory Services - - 80,000 - - - 80,000 L. Service Awards & Recognition - 5,000 - - - - 5,000

TOTAL OTHER EXPENSES 385,798 215,720 237,728 193,993 32,962 339,555 1,405,756 TOTAL ADMINISTRATIVE EXPENSES 1,102,566 2,052,252 2,198,172 6,594,342 1,252,344 2,613,008 15,812,683

CAPITAL EXPENSESA. Furniture & Equipment - - - - - - - B. Computer Hardware - - - - - 50,000 50,000 C. Computer Software - - - - - 50,000 50,000 D. Building Improvements - - - - - - -

TOTAL CAPITAL EXPENSES - - - - - 100,000 100,000

NON OPERATING EXPENSESA. Property Appraiser Fee 840,440 - - - - - 840,440 B. Tax Collector Fee 2,410,801 - - - - - 2,410,801

TOTAL NON-OPERATING EXPENSES 3,251,241 - - - - - 3,251,241

ALLOCATIONS CHILDREN'S PROGRAMS AND SPECIAL SERVICES

A. Direct Funded Programs and Initiatives - - - 108,615,032 - - 108,615,032 B. Healthy Safe & Strong Fund - - - - 50,000 - 50,000 C. Lobbying/Legislative Issues - - - - 45,000 - 45,000 D. Public Education - - - - 1,700,000 - 1,700,000 E. Communications Technology 125,000 125,000

TOTAL ALLOCATIONS CHILDREN'S PROGRAMS AND SPECIAL SERVICES - - - 108,615,032 1,920,000 - 110,535,032

CONTINGENCY 500,000 - - - - - 500,000

RESERVE FOR UNCOLLECTIBLE TAX 4,821,602 - - - - - 4,821,602

TOTAL BUDGET 9,675,409 2,052,252 2,198,172 115,209,374 3,172,344 2,713,008 135,020,558

Budget: Administrative Expenses 1,102,566 1,797,625 853,393 616,649 94,046 1,127,717 5,591,996 Budget: Capital Expenses - - - - - 100,000 100,000 Budget: Children's Program: Direct Services - - - 108,615,032 1,920,000 - 110,535,032 Budget: Children's Program: Support Services - 254,628 1,344,779 5,977,692 1,158,298 1,485,291 10,220,687 Budget: Non-Operating Expenses 8,572,844 - - - - - 8,572,844 TOTAL BUDGET 9,675,410 2,052,252 2,198,172 115,209,374 3,172,344 2,713,008 135,020,559

28

Children’s Services Council Notes to 2018/19 Fiscal Year Proposed Budget

1. Breakdown of Divisions/Departments

The budget is developed reflecting the functional and program operations within

CSC. The functional and program operations as they appear on the detailed

budget document are:

A. Executive Administration - reflects the costs associated with the CEO

function and administration of the Children's Services Council, such as legal

fees, insurance, non- operating expenses for the Property Appraiser and Tax

Collector and organizational consultants.

B. Talent & Operations - consists of the Operations, Human Resources, Project

Management and Talent Management departments.

C. Finance - Consists of the Accounting, Budget Oversight and Audit and Compliancedepartments.

D. Program Services - Reflects the costs associated with the funded ch i ld ren ’s

programs and initiatives. In addition to funding from ad-valorem tax revenue there

is financial support from the Department of Health and the Agency for Health

Care Administrat ion through the Healthy Start Coalition.

E. Communications- Reflects the costs associated with the Communications department.F. Information Management- Reflects the costs associated with the Information

Management department and Information Technology.

2. Personnel

• The proposed 2018/19 fiscal year budget contains funding for 104 approved positions, a

3% merit pool in correlation with staff performance evaluations and 0.5% for

promotional increases.

• Fringe benefits are calculated at existing rates for FICA, Medicare and FloridaUnemployment.

• Retirement is calculated at 10% of eligible salaries for employees hired on or after

January 1, 2012. This percentage is based on the maximum exposure if a match is made

depending on the employee’s contribution. Prior to a hiring date of January 1, 2012,

retirement is calculated at 13% of eligible salaries for employees employed ten years or

less, 15% of eligible salaries for employees employed between eleven and fifteen years,

29


17% for employees employed between sixteen and twenty years, and 19% for

employees employed twenty years or more.

• Workers' Compensation is calculated based on the formula supplied by CSC's insurancebroker.

• Based on input from CSC's insurance broker and historical trends, health plan

premiums have been projected at 10% over 2017/18 fiscal year rates to maintain

coverage at existing levels.

• Long Term Disability premiums are projected based on the rate that was provided by thecarrier.

• Tuition reimbursements have been estimated based on anticipated usage for the

2018/19 fiscal year.

• Retirement Health Savings reflects an estimated amount based on historicalexpenditures.

• Other Fringe Benefits provides for enhancements or additions to the current benefit

package offered by CSC and supports health related items.

3. Travel

• The local mileage reimbursement rate is projected at $0.545 per mile based on the

Internal Revenue Service standard mileage rate for 2018. The mileage traveled for

each position has been projected based on historical data.

• Staff Development / CSC business-related travel - Staff development reflects the

expenses associated with CSC staff achieving their development plans. CSC

business-related travel reflects the costs associated with CSC staff traveling on CSC

related business. An amount has also been budgeted to provide for the costs of staff

attendance at business meetings taking place outside of Palm Beach County.

• Council member travel is included to cover the costs relating to travel by Councilmembers on CSC related business.

4. Building Space

• Amounts have been budgeted for Maintenance and Security based on existing

contracts and anticipated contracts for those services at the 2300 High Ridge Road

building as well as actual expenditures incurred through the normal operation of the

building. An additional $50,000 is budgeted to provide for emergency repairs not

30


covered under maintenance agreements. The amount budgeted is allocated by

department based on the number of full-time equivalent (FTE) employees.

• Utilities are based on projected actual usage and historical data. The amount

budgeted is allocated by department based on the number of full-time equivalent

(FTE) employees.

• Quantum Park fees cover the costs charged by the Quantum Park Association. The

amount budgeted is allocated by department based on the number of full-time

equivalent (FTE) employees.

5. Communications

• Telecommunication expenses are budgeted based on amounts being billed by various

vendors for this item and reflect the costs associated with all telecommunication

related expenses. The amount budgeted is allocated by department based on the

number of full-time equivalent (FTE) employees.

• Postage includes the costs for routine mailings as well as amounts projected for costs

associated with the mailing of special reports and newsletters produced by CSC.

• The cost of mailing the 2018 tax notices has been included as expenditure in

conformity with legislation which requires each taxing authority to reimburse the

tax collector for its proportionate share of postage.

6. Printing & Supplies

• The anticipated costs for these items are based on planned expenditures, historical

information, and projected price increases. Supplies includes anything related to

office supplies, program supplies, meeting supplies, training supplies and/or computer

supplies.

• Printing reflects the projected costs of producing various reports and newsletters.

• Photography/video costs are expenses associated with the communications department

and the public education of program services.

7. Other Expenses

• Legal expenses reflect “not to exceed” amounts of contracts with outside counsel, ifneeded to assist with issues resulting from CSC's operations.

• Audit reflects the projected amounts for the annual audit.

31


• Consulting has been budgeted under various divisions as follows:o Executive Administration – Consultants may be used to provide

consulting services related to public policy issues.o Talent & Operations - Consultants may be used for leadership and

organizational learning services as well as for administrativeservices.

o Finance – Consultants may be used to provide professionalassistance.

o Program Services – Research consultants will be engaged to doresearch as it relates to cost benefit analysis and special projects.Consultants may be used for evidence-based trainings and thevariety of other training programs offered by CSC. Consultants areengaged to provide feedback as to the feasibility of bringingevidence-based programs to Palm Beach County as well as toassist in the evaluation of initiatives.

o Communications - Consultants may be used to assistCommunications in the use of translation services.

o Information Management - Consultants may be used to assistInformation Management in the maintenance and training ofvarious databases and the equipment necessary to maintain theseprograms.

• The Inspector General fee is a charge for the Inspector General to investigate

complaints and provide contract oversight.

• Insurance is made up of expenses related to non-benefit insurance premiums.

• Staff Development – In House is budgeted to cover the costs associated with training

activities designed to enhance CSC staff knowledge and skills to support funded

programs.

• Dues reflect the costs of memberships to various organizations to which CSC belongs.

• Background checks/fingerprinting are made up of background checks and

fingerprinting expenses related to employees.

• Subscriptions & Publications reflect the costs of various "trade" magazines, journals,

curriculums, videos, and books.

• Public Notices and Employment Advertising include the cost of required

32


advertising for public meetings and other CSC activities as well as costs associated

with recruitment of CSC staff positions.

• Copier equipment reflects the cost of maintaining and leasing CSC's copier

equipment. The amount budgeted is allocated by department based on the number of

full-time equivalent (FTE) employees.

• Computer maintenance and support is provided to cover the costs of support for various

software programs as well as the repair of the system for those items no longer covered

by the manufacturer's warranty period.

• Banking and Investment Advisory services cover the costs of bank and investment

advisory fees.

• Service Awards and Recognition cover the costs associated with awards and recognition

to individuals and/or groups for their accomplishments and contributions to the work of

the Children’s Services Council.

8. Capital ExpendituresCapital Expenditures generally reflect the costs associated with the purchase or upgrade

of furniture and equipment items and the costs of replacing and increasing CSC's

information and data processing technology. The total cost associated with these items

are $100,000 for computer hardware and computer software.

9. Non-operating expensesThese expenses have been calculated based on the proposed millage rate for the TaxCollector and per the estimated fee is provided by the Property Appraiser.

10. Allocations Children’s Programs and Special ServicesThe total proposed allocation to children's programs and initiatives plus special services is$113,196,465.

This year following the Public Education line item, there is a separate line item forCommunications Technology primarily for maintenance and enhancements of theEveryParent website and apps.

11. ContingenciesAn amount totaling $500,000 has been budgeted.

33


12. Reserve for Uncollectable TaxA 4% reserve has been established to provide for the projected difference in the amount of

tax levied and the amount actually collected.

13. Ad Valorem TaxRevenue is estimated to increase 3.19% based on an estimated increase in property tax values

offset by a reduction in the millage rate. The proposed millage rate is being reduced to

.6403 compared to .6590 in the prior year.

14. Grant IncomeGrant income is budgeted to reflect grant income from the following:

• Federal and State dollars through the Department of Health and Agency of

Health Care Administration through the Healthy Start Coalition to support

CSC's operation of several Healthy Beginnings programs.

15. Other income

Other income reflects the revenues to be generated from tenant income and miscellaneousrevenue.

16. Interest incomeInterest income is projected based on current interest rate trends applied to average

invested balances as anticipated by our investment advisor.

17. Cash balances brought forward

Fund balance will not fall below 27.5% of the total budget in accordance with CSC’s fundbalance policy.

34

AGENDA ITEM: 4

TITLE: Financial Statements – May 31, 2018 (Unaudited)

STAFF: Debra Heim, Chief Financial Officer

SUMMARY:

The financial statements are presented reflecting the estimated operating results of the General Fund and Special Revenue Fund (Prevention Partnerships for Children, Inc.) for the eight months ended May 31, 2018.

Balance Sheet: As of May 31, 2018, the Council had $89,426,289 in cash and investments. Of this balance, $24,032,912 was held in Intergovernmental Pools (FEITF), $23,583,051, net of unamortized discounts and premiums, was held in federal government bonds, $21,401,941 was held in US Credit, $15,342,153 was held in a public funds money market account, and $2,396,066 was held in Consumer and Commercial ABS (asset backed securities). The remainder of the funds were on deposit in the Council’s operating accounts.

The Capital Assets and the Investment in Capital Assets for $18,124,662 represent the costs associated with furniture and fixtures, equipment, and building costs.

Statement of Revenue and Expenses:

The budgeted expenditure rate at May 31, 2018 is 66.67%. The estimated expenditure rate for Children’s Programs at May 31, 2018 is 58.2%.

RECOMMENDATION:

I recommend the Finance Committee propose that the Council accept the May 31, 2018 Financial Statements as submitted.

35

CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTYBALANCE SHEET (Unaudited)

MAY 31, 2018

General Fund Total All Funds

Assets

Cash & Investments 89,426,289$ 237,899$ 89,664,187$ Accounts Receivable 1,441,576 - 1,441,576 Advances to Agencies 4,414,615 - 4,414,615 Prepaid Expenses 339,357 - 339,357 Due From - Special Revenue Fund 121,367 - 121,367 Capital Assets 18,124,662 - 18,124,662

Total Assets 113,867,865 237,899 114,105,764

Liabilities & Fund Balance

Liabilities

Allocations to Children's Services Programs 7,226,438 116,532 7,342,970 Accounts Payable 381,459 - 381,459 Due to - General Fund - 121,367 121,367 Total Liabilities 7,607,897 237,899 7,845,796

Fund Balance

Nonspendable: Prepaid Expenses 339,357 - 339,357 Assigned: Reserved in accordance with fund balance policy 35,606,480 - 35,606,480 Unassigned: 52,189,469 - 52,189,469

Total Fund Balance 88,135,306 - 88,135,306

Investment in Capital Assets 18,124,662 - 18,124,662

Total Liabilities and Fund Balance 113,867,865$ 237,899$ 114,105,765$

Special Revenue Fund

Prevention Partnership for Children, Inc.

36

CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTYSTATEMENT OF REVENUE AND EXPENSES CHANGES IN FUND BALANCE

FOR THE EIGHT MONTHS ENDED MAY 31, 2018

Approved Budget Actual Approved Budget Actual Approved Budget Actual2017/2018 Through Through Variance % 2017/2018 Through Through Variance % 2017/2018 Through Through Variance %

Budget 5/31/2018 5/31/2018 YTD YTD Budget 5/31/2018 5/31/2018 YTD YTD Budget 5/31/2018 5/31/2018 YTD YTD

RevenuesAd Valorem Property Taxes 116,814,453$ 109,594,283$ 109,594,283$ -$ 93.82% -$ -$ -$ -$ 0.00% 116,814,453$ 109,594,283$ 109,594,283$ -$ 93.82%Interest Income 500,000 333,333 667,934 334,601 133.59% - - - - 0.00% 500,000 333,333 667,934 334,601 133.59%Unrealized Gain or Loss - - (1,806) (1,806) 100.00% - - - - 0.00% - - (1,806) (1,806) 100.00%Department of Health/Agency for Health Care Administration 3,355,246 2,236,831 1,558,637 (678,193) 46.45% - - - - 0.00% 3,355,246 2,236,831 1,558,637 (678,193) 46.45%Palm Beach County Head Start Match 1,100,000 733,333 733,333 - 66.67% - - - - 0.00% 1,100,000 733,333 733,333 0 66.67%Income from Tenants 75,000 50,000 45,907 (4,093) 61.21% - - - - 0.00% 75,000 50,000 45,907 (4,093) 61.21%Other Income 125,000 83,333 149,275 65,941 119.42% - - - - 0.00% 125,000 83,333 149,275 65,941 119.42%Cash Carryforward 10,281,153 - - - 0.00% - - - - 0.00% 10,281,153 - - - 0.00%

Total Revenues 132,250,852 113,031,114 112,747,563 (283,551) 85.25% - - - - 0.00% 132,250,852 113,031,114 112,747,563 (283,551) 85.25%

ExpendituresAdministrative Expenditures 5,441,364 3,627,576 3,576,528 51,048 65.73% - - 951 (951) 100.00% 5,441,364 3,627,576 3,577,479 50,097 65.75%Capital Expenditures 262,500 175,000 13,039 161,961 4.97% - - - - 0.00% 262,500 175,000 13,039 161,961 4.97%Contingency 500,000 - - - 0.00% - - - - 0.00% 500,000 - - - 0.00%Non-Operating Expenses 3,184,838 2,821,144 2,821,144 - 88.58% - - - - 0.00% 3,184,838 2,821,144 2,821,144 - 88.58%Reserve for Uncollectible Taxes 4,673,206 - - - 0.00% - - - - 0.00% 4,673,206 - - - 0.00%

Children's Services Programs:Direct Services:

Funded Programs & Initiatives 105,588,722 70,392,481 61,233,709 9,158,773 57.99% 2,772,743 1,848,495 1,391,947 456,549 50.20% 108,361,465 72,240,977 62,625,656 9,615,321 57.79%Support Services: -

Programmatic Support 9,827,479 6,551,653 5,937,465 614,188 60.42% - - - - 0.00% 9,827,479 6,551,653 5,937,465 614,188 60.42%Total Children's Programs 115,416,201 76,944,134 67,171,173 9,772,961 58.20% 2,772,743 1,848,495 1,391,947 456,549 50.20% 118,188,944 78,792,629 68,563,120 10,229,509 58.01%

Total Expenses 129,478,109 83,567,854 73,581,884 9,985,970 56.83% 2,772,743 1,848,495 1,392,897 455,598 50.24% 132,250,852 85,416,349 74,974,781 10,441,568 56.69%Excess Revenues over Expenses 39,165,679 (1,392,897) 37,772,782

Other Financing Sources (Uses)Transfers in (out) (2,772,743) (1,848,495) (1,392,897) (455,598) 50.24% 2,772,743 1,848,495 1,392,897 455,598 50.24% - - - - 0.00%

Net Changes in Fund Balances 37,772,782 (0) 37,772,782

Fund BalancesOctober 1, 2017 50,362,524 - 50,362,524 May 31, 2018 88,135,306$ (0)$ 88,135,306$

General Fund Special Revenue Fund Total


37

AGENDA ITEM: 4 (Continued)

TITLE: Financial Statements – June 30, 2018 (Unaudited)


SUMMARY:

The financial statements are presented reflecting the estimated operating results of the General Fund and Special Revenue Fund (Prevention Partnerships for Children, Inc.) for the nine months ended June 30, 2018.

Balance Sheet: As of June 30, 2018, the Council had $76,870,232 in cash and investments. Of this balance, $23,439,740 was held in US Credit, $20,920,221, net of unamortized discounts and premiums, was held in federal government bonds, $14,058,480 was held in Intergovernmental Pools (FEITF), $10,430,281 was held in a public funds money market account, and $4,613,463 was held in ABS and MBS (asset backed securities and mortgage backed securities). The remainder of the funds were on deposit in the Council’s operating accounts.

The Capital Assets and the Investment in Capital Assets for $18,124,662 represent the costs associated with furniture and fixtures, equipment, and building costs.

Statement of Revenue and Expenses:

The budgeted expenditure rate at June 30, 2018 is 75%. The estimated expenditure rate for Children’s Programs at June 30, 2018 is 70.38%.

RECOMMENDATION:

I recommend the Finance Committee propose that the Council accept the June 30, 2018 Financial Statements as submitted.

38

CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTYBALANCE SHEET (Unaudited)

JUNE 30, 2018

General Fund Total All Funds

Assets

Cash & Investments 76,870,232$ 237,784$ 77,108,016$ Accounts Receivable 798,980 - 798,980 Advances to Agencies 4,256,916 - 4,256,916 Prepaid Expenses 360,124 - 360,124 Due From - General Fund - 78,006 78,006 Capital Assets 18,124,662 - 18,124,662

Total Assets 100,410,914 315,790 100,726,704

Liabilities & Fund Balance

Liabilities

Allocations to Children's Services Programs 7,987,022 307,578 8,294,600 Accounts Payable 217,790 8,212 226,002 Due to - Special Revenue Fund 78,006 - 78,006 Total Liabilities 8,282,818 315,790 8,598,608

Fund Balance

Nonspendable: Prepaid Expenses 360,124 - 360,124 Assigned: Reserved in accordance with fund balance policy 35,606,480 - 35,606,480 Unassigned: 38,036,830 - 38,036,830

Total Fund Balance 74,003,434 - 74,003,434

Investment in Capital Assets 18,124,662 - 18,124,662

Total Liabilities and Fund Balance 100,410,914$ 315,790$ 100,726,704$

Special Revenue Fund


39

CHILDREN'S SERVICES COUNCIL OF PALM BEACH COUNTYSTATEMENT OF REVENUE AND EXPENSES CHANGES IN FUND BALANCE

FOR THE NINE MONTHS ENDED JUNE 30, 2018

Approved Budget Actual Approved Budget Actual Approved Budget Actual2017/2018 Through Through Variance % 2017/2018 Through Through Variance % 2017/2018 Through Through Variance %

Budget 6/30/2018 6/30/2018 YTD YTD Budget 6/30/2018 6/30/2018 YTD YTD Budget 6/30/2018 6/30/2018 YTD YTD

RevenuesAd Valorem Property Taxes 116,814,453$ 110,289,594$ 110,289,594$ -$ 94.41% -$ -$ -$ -$ 0.00% 116,814,453$ 110,289,594$ 110,289,594$ -$ 94.41%Interest Income 500,000 375,000 745,481 370,481 149.10% - - - - 0.00% 500,000 375,000 745,481 370,481 149.10%Unrealized Gain or Loss - - (5,252) (5,252) 100.00% - - - - 0.00% - - (5,252) (5,252) 100.00%Department of Health/Agency for Health Care Administration 3,355,246 2,516,435 1,567,790 (948,644) 46.73% - - - - 0.00% 3,355,246 2,516,435 1,567,790 (948,644) 46.73%Palm Beach County Head Start Match 1,100,000 825,000 825,000 - 75.00% - - - - 0.00% 1,100,000 825,000 825,000 - 75.00%Income from Tenants 75,000 56,250 52,283 (3,967) 69.71% - - - - 0.00% 75,000 56,250 52,283 (3,967) 69.71%Other Income 125,000 93,750 163,981 70,231 131.18% - - - - 0.00% 125,000 93,750 163,981 70,231 131.18%Cash Carryforward 10,281,153 - - - 0.00% - - - - 0.00% 10,281,153 - - - 0.00%

Total Revenues 132,250,852 114,156,028 113,638,876 (517,153) 85.93% - - - - 0.00% 132,250,852 114,156,028 113,638,876 (517,153) 85.93%

ExpendituresAdministrative Expenditures 5,441,364 4,081,023 3,989,075 91,948 73.31% - - 1,065 (1,065) 100.00% 5,441,364 4,081,023 3,990,140 90,883 73.33%Capital Expenditures 262,500 196,875 14,024 182,851 5.34% - - - - 0.00% 262,500 196,875 14,024 182,851 5.34%Contingency 500,000 - - - 0.00% - - - - 0.00% 500,000 - - - 0.00%Non-Operating Expenses 3,184,838 3,044,594 3,044,594 - 95.60% - - - - 0.00% 3,184,838 3,044,594 3,044,594 - 95.60%Reserve for Uncollectible Taxes 4,673,206 - - - 0.00% - - - - 0.00% 4,673,206 - - - 0.00%

Children's Services Programs:Direct Services:

Funded Programs & Initiatives 105,588,722 79,191,542 74,606,876 4,584,665 70.66% 2,772,743 2,079,557 1,724,163 355,394 62.18% 108,361,465 81,271,099 76,331,039 4,940,059 70.44%Support Services: -

Programmatic Support 9,827,479 7,370,609 6,618,169 752,441 67.34% - - - - 0.00% 9,827,479 7,370,609 6,618,169 752,441 67.34%Total Children's Programs 115,416,201 86,562,151 81,225,045 5,337,106 70.38% 2,772,743 2,079,557 1,724,163 355,394 62.18% 118,188,944 88,641,708 82,949,208 5,692,500 70.18%

Total Expenses 129,478,109 93,884,643 88,272,737 5,611,905 68.18% 2,772,743 2,079,557 1,725,228 354,329 62.22% 132,250,852 95,964,200 89,997,966 5,966,234 68.05%Excess Revenues over Expenses 25,366,138 (1,725,228) 23,640,910

Other Financing Sources (Uses)Transfers in (out) (2,772,743) (2,079,557) (1,725,228) (354,329) 62.22% 2,772,743 2,079,557 1,725,228 354,329 62.22% - - - - 0.00%

Net Changes in Fund Balances 23,640,910 (0) 23,640,910

Fund BalancesOctober 1, 2017 50,362,524 - 50,362,524 June 30, 2018 74,003,434$ (0)$ 74,003,434$

General Fund Special Revenue Fund Total


40

AGENDA ITEM: 5

TITLE: Annual Review of Compliance with Fund Balance Policy


SUMMARY:

The Fund Balance Policy (attached), requires an annual compliance review during the budget adoption process. The provisions of the Fund Balance Policy have been complied with for FY 17-18. The proposed budget for FY 18-19 also complies with the provisions of the Fund BalancePolicy.

RECOMMENDATION:

For informational purposes only, no action required.

41

Children’s Services Council of Palm Beach County

Fund Balance Policy

The Fund Balance represents the cumulative difference of all revenues and expenditures.

The Council believes that sound financial management principles require that sufficient

funds be retained by the Council to provide a stable financial base at all times. To retain

this stable financial base, the Council needs to maintain a General Fund Balance

sufficient to fund all cash flows of the Council, to provide financial reserves for

unanticipated expenditures and/or revenue shortfalls of an emergency nature, to offset

significant economic downturns or revenue shortfalls, and to provide funds for all

existing encumbrances.

This policy will specify the size and composition of the Council’s financial reserves and

to identify certain requirements for replenishing any fund balance reserves utilized.

The term “sufficient funds” as stated above is interpreted to represent a floor of 27.5% of

the proposed annual operating budget for the subsequent year.

Government Accounting Standards Board (GASB) Statement No. 54 identifies five

separate categories of fund balance, based on the extent to which the Council is bound to

honor constraints specific purposes for which amounts can be spent. Fund balance

classification are as follows:

Restricted - Non-spendable fund balance,

Restricted fund balance,

Unrestricted – Committed fund balance,

Assigned fund balance, and

Unassigned fund balance.

The first two categories are restrictive in nature. The last three categories are those in

which a constraint on resources or spending is imposed by the Council, The categories

are explained in more detail below.

Non-spendable fund balance – that portion of the fund balance that reflects amounts

assets that are not in spendable form (inventory or prepaid amounts) or are legally

required to be maintained intact (principal of endowment funds).

Restricted fund balance – includes amounts that can be spent only for the specific

purposes stipulated by external resource providers (grant providers) constitutional

provisions or through enabling legislation that creates a new revenue source and restricts

its use. Restrictions may be changed or lifted only with the consent of resource

providers.

42

Children’s Services Council of Palm Beach County

Fund Balance Policy

Committed fund balance – This classification includes amounts that can be used only

for specific purposes as determined by formal action of the Council itself, using its

highest level of decision making authority (i.e., the Council Members). These funds

cannot be used for any other purpose unless the Council removes or changes the specified

use by taking the same type of action (resolution) that was employed when the funds

were initially committed.

Assigned fund balance – comprises amounts intended to be used for specific purposes.

The intent can be expressed by the governing body or by an official (Chief Executive

Officer) or body which the governing body delegated authority. Assigned fund balance

represents the amount that is not restricted or committed. Assigned fund balance

includes:

Assigned for contingencies; funds that provide for emergency situations requiring

cash flow and/or funding of one time costs not included in the annual budget.

Assigned amounts used to balance the annual budget

Unassigned fund balance – this classification includes amounts that have not been

assigned to other funds and that have not been restricted, committed or assigned to

specific purposes within the General Fund.

Replacement

If the fund balance falls below the minimum 27.5% of the proposed annual operating

budget for the subsequent year in each year of a three year period, a specific amount will

be allocated in the Council’s annual budget to be used to replenish the fund to the 27.5%

floor.

Annual Review

Compliance with the provisions of this policy shall be reviewed as part of the annual

budget adoption process.

Fund Balance Policy Adoption

The Fund Balance Policy was adopted on April 24, 2014, and revised on March 31, 2016.

43

Finance Committee Meeting · The Core Portfolio opened during the quarter with the first purchase occurring on May 9th, 2018. The portfolio opened with a yield to maturity at cost

Documents