Budget Workshop Board of Trustees Meeting June 14, 2011

Agenda Proposed FY 2012 budget Status, timeline, and prognosis for outstanding material and significant weaknesses cited in the 2010 audit Status of the FY 2011 audit Fiscal year 2011 budget variance report OPEB Retirement Board update FMCAT Self Assessment Check List 50% law exclusion for out-of-state and international students Application to the BOG to exclude Unrestricted General Fund from 50% law calculation

Fiscal Year Variance Report

OPEB Retirement Board Update First meeting under new structure on April 13, 2011 Regularly scheduled meetings on the Wednesday following the first Board of Trustee meeting of the month Approved bylaws Approved investment policy Reviewed new OPEB structure Monte Carlo simulations Simulation

OPEB Structure Peralta CCD Board of Trustees Appoints members of Retirement Board Reviews and approves all contracts and recommendations from Retirement Board Retirement Board Sets Retirement Board Investment Policy Evaluates/Recommends to BOT Underwriter, Counsel, Investment Manager, and Financial Advisor Reports to BOT no less than quarterly Responsible for obtaining Actuarial Study no less than once every two years KNN - Investment Advisor Provides general advise and counsel on entire OPEB program Neuberger Berman - Investment Manager Provides investment advise and counsel Invests plan assets in accordance with Retirement Board Investment Policy Underwriter Provides market advise and counsel Facilitates the issuance/restructur e of debt and SWAP agreements Legal Counsel Provides legal advise and counsel

Cash Flow Structure