Common use of Cash and Investments Clause in Contracts

Cash and Investments. The carrying value of cash and investments held by the QSA JPA as of June 30 consisted of the following: 2021 2020 Deposits $ 10,300 $ 10,327 Investments 32,113,637 45,167,388 Total cash and investments $ 32,123,937 $ 45,177,715 Investments Authorized by the California Government Code and Investment Policy The QSA JPA uses the investment policy of the SDCWA for purposes of investments. The following table identifies the investment types that are authorized for the QSA JPA by the California Government Code (Gov’t Code), Sections 53600 et seq, and the QSA JPA’s Investment Policy (Inv. Policy). The table also identifies certain provisions of the California Government Code (or the QSA JPA’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer Minimum Rating Investment Types Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Municipal Securities None None None 30% None 5% None "A" U.S. Treasury securities None None None None None None None None Federal agency securities None None None None None None None None Bankers' acceptances 180 days 180 days 40% 40% 30% 5% None "A-1" Commercial paper 270 days 270 days 40% (6) 30% 10% (7) 5% "A-1" "A-1" Non-Negotiable Certificates of Deposit 5 years 5 years None 30% (1) None None None None Placement service deposits 5 years 5 years 50% 30% (1) None None None None Negotiable Certificates of Deposit 5 years 5 years 30% 30% (1) None 5% None "A-1" or "A" Repurchase agreements 1 year 1 year None 20% None None None "A" Medium-term notes 5 years 5 years 30% 30% None 5% "A" "A" Mutual funds n/a n/a 20% 20% 10% 10% AAA (2) AAA (2) Money market mutual funds n/a n/a 20% 20% None 20% AAA (2) AAA (2) Mortgage pass-through and asset backed securities (3) 5 years 5 years 20% 20% None 5% "AA" "AA" County pooled investment funds n/a (4) None (4) None (4) None (4) JPA pools (other investment pools) n/a n/a None 25% None 25% None AAA Supranationals 5 years 5 years 30% 15% None 5% "AA" "AA" Local agency investment fund (LAIF) n/a n/a None (5) None None None None Notes:

Cash and Investments. The carrying value of cash and investments held by the QSA JPA as of June 30 consisted of the following: 2021 2020 2023 2022 Deposits $ 10,300 10,132 $ 10,327 10,452 Investments 32,113,637 45,167,388 75,315,493 35,254,656 Total cash and investments $ 32,123,937 75,325,625 $ 45,177,715 35,265,108 Investments Authorized by the California Government Code and Investment Policy The QSA JPA uses the investment policy of the SDCWA for purposes of investments. The following table identifies the investment types that are authorized for the QSA JPA by the California Government Code (Gov’t Code), Sections 53600 et seq, and the QSA JPA’s Investment Policy (Inv. Policy). The table also identifies certain provisions of the California Government Code (or the QSA JPA’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maturity Maximum Maximum Percentage Investment in Minimum Maturity of Portfolio Maximum Investment in One Issuer Minimum Rating Investment Types Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Municipal Securities securities None None None 30% None 5% None "A" A U.S. Treasury securities None None None None None None None None Federal agency securities None None None None None None None None Bankers' acceptances 180 days 180 days 40% 40% 30% 5% None "A-1" A-1 Commercial paper 270 days 270 days 40% (640%(1) 30% 10% (710%(2) 5% "A-1" "A-1" A-1 A-1 Non-Negotiable Certificates negotiable certificates of Deposit deposit 5 years 5 years None 30% (130%(3) None None None None Placement service deposits 5 years 5 years 50% 30% (130%(3) None None None None Negotiable Certificates certificates of Deposit deposit 5 years 5 years 30% 30% (130%(3) None 5% None "A-1" A-1 or "A" A Repurchase agreements 1 year 1 year None 20% None None None "A" A Medium-term notes 5 years 5 years 30% 30% None 10%(2) 5% "A" "A" A A Mutual funds n/a n/a 20% 20% 10% 10% AAA (2AAA(4) AAA (2AAA(4) Money market mutual funds n/a n/a 20% 20% None 20% AAA (2AAA(4) AAA (2AAA(4) Mortgage pass-through and asset backed securities (3securities(5) 5 years 5 years 20% 20% None 5% "AA" "AA" AA AA County pooled investment funds n/a (46) None (46) None (46) None (46) JPA pools (other investment pools) n/a n/a None 25% None 25% None None AAA Supranationals 5 years 5 years 30% 15% None 5% "AA" "AA" AA AA Local agency investment fund (LAIF) n/a n/a None (57) None None None None Notes:

Cash and Investments. The carrying value of cash and investments held by the QSA JPA as of June 30 consisted of the following: 2022 2021 2020 Deposits $ 10,452 $ 10,300 $ 10,327 Investments 35,254,656 32,113,637 45,167,388 Total cash and investments $ 35,265,108 $ 32,123,937 $ 45,177,715 Investments Authorized by the California Government Code and Investment Policy The QSA JPA uses the investment policy of the SDCWA for purposes of investments. The following table identifies the investment types that are authorized for the QSA JPA by the California Government Code (Gov’t Code), Sections 53600 et seq, and the QSA JPA’s Investment Policy (Inv. Policy). The table also identifies certain provisions of the California Government Code (or the QSA JPA’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer Minimum Rating Investment Types Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Municipal Securities None None None 30% None 5% None "A" U.S. Treasury securities None None None None None None None None Federal agency securities None None None None None None None None Bankers' acceptances 180 days 180 days 40% 40% 30% 5% None "A-1" Commercial paper 270 days 270 days 40% (6) 30% 10% (7) 5% "A-1" "A-1" Non-Negotiable Certificates of Deposit 5 years 5 years None 30% (1) None None None None Placement service deposits 5 years 5 years 50% 30% (1) None None None None Negotiable Certificates of Deposit 5 years 5 years 30% 30% (1) None 5% None "A-1" or "A" Repurchase agreements 1 year 1 year None 20% None None None "A" Medium-term notes 5 years 5 years 30% 30% None 5% "A" "A" Mutual funds n/a n/a 20% 20% 10% 10% AAA (2) AAA (2) Money market mutual funds n/a n/a 20% 20% None 20% AAA (2) AAA (2) Mortgage pass-through and asset backed securities (3) 5 years 5 years 20% 20% None 5% "AA" "AA" County pooled investment funds n/a (4) None (4) None (4) None (4) JPA pools (other investment pools) n/a n/a None 25% None 25% None AAA Supranationals 5 years 5 years 30% 15% None 5% "AA" "AA" Local agency investment fund (LAIF) n/a n/a None (5) None None None None Notes:

Cash and Investments. The carrying value of cash and investments held by the QSA JPA as of June 30 consisted of the following: 2021 2020 2018 2017 Deposits $ 10,300 2,775 $ 10,327 5,586 Investments 32,113,637 45,167,388 25,368,911 23,324,281 Total cash and investments $ 32,123,937 25,371,686 $ 45,177,715 23,329,867 Investments Authorized by the California Government Code and the Investment Policy The QSA JPA uses the investment policy of the SDCWA for purposes of investments. The following table identifies the investment types that are authorized for the QSA JPA by the California Government Code (Gov’t Code), Sections 53600 et seq, and the QSA JPA’s Investment Policy (Inv. Policy). The table also identifies certain provisions of the California Government Code (or the QSA JPA’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maturity Notes to the Basic Financial Statements (Continued) Fiscal Years Ended June 30, 2018 and 2017 Note 2: Cash and Investments (Continued) Investments Authorized by the California Government Code and the Investment Policy (Continued) Maximum Percentage of Portfolio Maximum Investment in Maximum Maturity of Portfolio One Issuer Minimum Rating Investment Types Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Municipal Securities Local agency bonds U.S. Treasury securities Federal agency securities 5 years 5 years 5 years 5 years 5 years 5 years None None None 3020% None 5% None "A" U.S. Treasury securities None None None None None None None None Federal agency securities 5% None None None None None None A None None Bankers' acceptances 180 days 180 days 40% 40% 30% 5% None "A-1" A1/P1/F1 Commercial paper 270 days 270 days 4025% (6) 3025% 10% (7) 5% "A-1" "A-1" Non-Negotiable A1/P1/F1 A1/P1/F1 Certificates of Deposit deposit 5 years 5 years None 30% (1) 20% None None None None Placement service deposits 5 years 5 years 50% 30% (14) 30% (5) None None None None Negotiable Certificates certificates of Deposit deposit 5 years 5 years 30% (4) 30% (15) None 5% (6) None "A-1" or "A" A (7) Repurchase agreements 1 year 1 year None 20% None None None "A" A 20% of portfolio 20% of portfolio Reverse repurchase agreements 92 days 92 days base value base value None None None None Medium-term notes 5 years 5 years 30% 30% None 5% "A" "A" A A (7) Mutual funds n/a n/a 20% 20% 10% 10% AAA (2) AAA (2) Money market mutual funds n/a n/a 20% 20% None 20% AAA (2) AAA (2) Mortgage pass-through and asset backed securities (3) 5 years 5 years 20% 20% None 5% "AA" "AA" AA AA County pooled investment funds (1) n/a (43) None (43) None (43) None (43) JPA pools (other investment pools) n/a n/a None 25% None 25% None None AAA Supranationals (8) 5 years 5 years 30% 1510% None 5% "AA" "AA" AA AA Local agency investment fund (LAIF) (2) n/a n/a None (59) None None None None Notes:

Cash and Investments. The carrying value of cash and investments held by the QSA JPA as of June 30 consisted of the following: 2021 2020 2019 Deposits $ 10,300 10,327 $ 10,327 4,164 Investments 32,113,637 45,167,388 40,949,447 Total cash and investments $ 32,123,937 45,177,715 $ 45,177,715 40,953,611 Investments Authorized by the California Government Code and the Investment Policy The QSA JPA uses the investment policy of the SDCWA for purposes of investments. The following table identifies the investment types that are authorized for the QSA JPA by the California Government Code (Gov’t Code), Sections 53600 et seq, and the QSA JPA’s Investment Policy (Inv. Policy). The table also identifies certain provisions of the California Government Code (or the QSA JPA’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. Notes to the Basic Financial Statements (Continued) Fiscal Years Ended June 30, 2020 and 2019 Note 2: Cash and Investments (Continued) Investments Authorized by the California Government Code and the Investment Policy (Continued) Maximum Percentage Maximum Investment Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer Minimum Rating Investment Types Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Gov't. Code Inv. Policy Municipal Securities None None None 30% None 5% None "A" U.S. Treasury securities Federal agency securities None None None None None None None None Federal agency securities None 30% None None None None None 5% None None None None None "A" None None Bankers' acceptances 180 days 180 days 40% 40% 30% 5% None "A-1" Commercial paper 270 days 270 days 4025% (6) 3025% 10% (7) None 5% "A-1" "A-1" Non-Negotiable Certificates of Deposit 5 years 5 years None 30% (1) None None None None Placement service deposits 5 years 5 years 50% 30% (1) None None None None Negotiable Certificates of Deposit 5 years 5 years 30% 30% (1) None 5% None "A-1" or "A" Repurchase agreements 1 year 1 year None 20% None None None "A" Medium-term notes 5 years 5 years 30% 30% None 5% "A" "A" Mutual funds n/a n/a 20% 20% 10% 10% AAA (2) AAA (2) Money market mutual funds n/a n/a 20% 20% None 20% AAA (2) AAA (2) Mortgage pass-through and asset backed securities (3) 5 years 5 years 20% 20% None 5% "AA" "AA" County pooled investment funds n/a (4) None (4) None (4) None (4) JPA pools (other investment pools) n/a n/a None 25% None 25% None AAA Supranationals 5 years 5 years 30% 15% None 5% "AA" "AA" Local agency investment fund (LAIF) n/a n/a None (5) None None None None Notes: