HomeMy WebLinkAbout2008-07-08 - Finance-Accounting Committee Meeting Agenda PacketML
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YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Tuesday, July 08, 2008, 4:00 p.m.
1717 E. Miraloma Avenue, Placentia - Tel: (714) 701 - 3020
AGENDA
COMMITTEE:
Director Michael J. Beverage, Chair
Director John W. Summerfield
Alternate: Director William R. Mills
STAFF:
Michael A. Payne, General Manager
Ken Vecchiarelli, Asst. Gen Mgr.
Sandi Van Etten, Senior Accountant
INTRODUCTION OF VISITORS AND PUBLIC COMMENTS:
Any individual wishing to address the Committee is requested to identify themselves and state the matter on which
they wish to comment. If the matter is on this agenda, the Committee Chair will recognize the individual for their
comment when the item is considered. No action will be taken on matters not listed on this agenda. Comments are
limited to matters of public interest and matters within the jurisdiction of the Water District. Comments are limited to
five minutes.
Mr. Nitin Patel, CPA and Ms. Daphnie Fuertez, CPA of Diehl, Evans & Company, LLP.
ACTION ITEMS:
This portion of the agenda is for items where staff presentations and committee discussions are needed
prior to formal committee actions.
Monthly Financial Statements for the eleventh month ending May 31, 2008.
Recommendation: That the Finance-Accounting Committee review and
recommend to the Board of Directors that the Monthly Financial Statements
for May 2008 be received and filed.
DISCUSSION ITEMS:
This portion of the agenda is for matters such as technical presentations, drafts of proposed policies, or similar items
for which staff is seeking the advice and counsel of the Committee Members. This portion of the agenda may also
include items for information only.
2. Fiscal Year 2007-2008 Audit - Presentation by Diehl, Evans & Company, LLP.
3. Investment Report Ending May 31, 2008.
4. Monthly Portfolio Reports Ending June 30, 2008. Report by Keith Khorey, Wells
Capital Management.
ADJOURNMENT:
The next Finance-Accounting Committee meeting is scheduled for August 12, 2008 at
4:00 p. m.
Accommodations for the Disabled.
Any person may make a request for a disability-related modification or accommodation needed for that person to be
able to participate in the public meeting by telephoning Michael A. Payne, District Secretary, at 714-701-3020, or
writing to Yorba Linda Water District, P.O. Box 309, Yorba Linda, CA 92885-0309. Requests must specify the
nature of the disability and the type of accommodation requested. A telephone number or other contact information
should be included so the District staff may discuss appropriate arrangements. Persons requesting a disability-
related accommodation should make the request with adequate time before the meeting for the District to provide
the requested accommodation.
-2-
ITEM NO.
AGENDA REPORT
Committee Meeting Date: July 08, 2008
To: Finance-Accounting Committee
From: Michael A. Payne, General Manager
Staff Contact: Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
Reviewed by General Counsel: N/A Budgeted:
Funding Source:
CEQA Account No:
Compliance: N/A Estimated Costs:
N/A Total Budget:
All Funds
Job No:
Dept: Bus
Subject: Financial Statements for the eleventh month of fiscal year 2007-2008 ending May
31, 2008.
SUMMARY:
A presentation will be made of the Financial Statements for the eleventh month of fiscal year
2007-2008 ending May 31, 2008.
I
DISCUSSION:
The Water Operating Fund had a Net Loss for the eleventh month of fiscal year 2007-2008
ending May 31, 2008 of $2,634,287. The key factors are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Water Operating Fund
For the Month Ending May 31, 2008
May,
Y-T-D
Y-T-D
Budget
2008
Budget
Budget
Description
FY 2007/08
Actual Y-T-D
Remaining
Remaining
Total Water Sales
$
17,217,870
$
16,644,877
$
(572,993)
-3%
Total Variable Water Costs
$
10,520,000
$
9,467,227
$
1,052,773
10%
Personnel Costs
$
6,992,970
$
4,580,256
$
2,412,714
35%
Supplies & Services
$
3,740,200
$
2,735,113
$
1,005,087
27%
The Water Operating Fund is showing water sales greater than what we had anticipated due to
the drier weather conditions as well as the water rate increase that was not included in the
budget. The variable water costs are within 1% of the budget at this point in time. Personnel
costs are under budget by 26% as of May 2008 because of the vacancy of positions. Supplies &
Services are 18% below budget as of May 2008; however, the fiscal year-end is fast
approaching and more invoices are anticipated to be received to cover the costs of products
ordered and delivered. The lion's share of the increase in the net loss is because of the transfer
of $634,856 from operating to non-operating to account for the $.22 per unit of water to cover
the debt service on the certificates of participation (COP's). Also, there were 10 water projects
closed in April 2008 and thus depreciation began in May 2008.
The Sewer Fund had a Net Loss for the eleventh month of fiscal year 2007-2008 ending May
31, 2008 of $152,818. The key factors are outlined below:
Yorba Linda Water District
Monthly Financial Statement Analysis - Sewer Operating Fund
For the Month Ending May 31, 2008
May,
Y-T-D
Y-T-D
Budget 2008
Budget
Budget
Description FY 2007/08 Actual Y-T-D
Remaining
Remaining_
Sewer Maintenance Charges $ 1,243,700 $ 1,090,275
$ (153,425)
-12%
Personnel Costs $ 694,130 $ 526,349
$ 167,781
24%
Supplies & Services $ 336,600 $ 249,215
$ 87,385
26%
The Sewer Maintenance Charges are 3% lower than the budget. The Personnel Costs are 15%
under budget due to unfilled positions. The Supplies & Services are slightly lower than
anticipated by 17% at this point in time; however, the fiscal year-end is fast approaching and
more invoices are anticipated to be received to cover the costs. However, there aren't any
significant material variances to report. The Sewer Fund closed 6 projects in April 2008 and
thus depreciation began in May 2008 adding to the operating expenses for the month.
PRIOR RELEVANT BOARD ACTION(S):
The Board of Directors reviews each quarter's financial statements. The financial statements for
the quarter ending December 31, 2007 were reviewed on April 24, 2008.
STAFF RECOMMENDATION:
That the Committee recommend the Board of Directors receive and file the financial statements
for the eleventh month of fiscal year 2007-2008 ending May 31, 2008.
Operating Revenues:
Metered water sales
Sewer maintenance charges
Construction water sales
Irrigation sales
Other
Customer service fees
Rents and royalties
Outside District water sales
Unmetered water sales
To: "Restricted for Debt Serv"
Total Operating Revenues
Operating Expenses:
Variable water costs
Personnel services
Depreciation
Supplies and services
Total Operating Expenses
Operating (Loss)
Schedule of Revenue & Expense
05 -31 -08
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D %
16,789,370.00
0.00
335,000.00
42,500.00
12,830.00
123,400.00
102,100.00
45,000.00
6,000.00
0.00
17,456,200.00
16,899,217.28
0.00
272,774.44
69,694.23
102,141.28
149,544.04
49,605.40
29,007.19
9,039.46
<634,855.54>
16,946,167.78
<109,847.28>
-1
0.00
-100
62,225.56
19
<27,194.23>
-64
<89,311.28>
-696
<26,144.04>
-21
52,494.60
51
15,992.81
36
<3,039.46>
-51
634,855.54
-100
510,032.22 3
10,520,000.00
9,467,226.84
1,052,773.16
10
6,992,970.00
4,580,256.12
2,412,713.88
35
2,933,300.00
2,797,858.08
135,441.92
5
3,740,200.00
2,735,113.37
1,005,086.63
27
24,186,470.00
19,580,454.41
4,606,015.59
19
<6,730,270.00>
<2,634,286.63>
<4,095,983.37>
61
FUND
Schedule of Revenue & Expense
05 -31 -08
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
$
Nonoperating Revenues:
Property taxes - debt service
0.00
0.00
0.00
-100
Property taxes - operations
1,187,300.00
1,221,294.98
<33,994.98>
-3
Interest income
65,000.00
753,524.66
<688,524.66>
-1059
Other revenue
440,500.00
539,395.11
<98,895.11>
-22
Rev Restricted for Debt Sery
0.00
634,855.54
<634,855.54>
-100
Total Nonoperating Revenues
1,692,800.00
3,149,070.29
<1,456,270.29>
-86
Nonoperating expenses:
Interest expense
0.00
727,705.49
<727,705.49>
-100
Security Vulnerability Exp
0.00
0.00
0.00
-100
Other expense
0.00
113,225.52
<113,225.52>
-100
Total Nonoperating Expenses
0.00
840,931.01
<840,931.01>
-100
Income (Loss) before
Capital Contributions
<5,037,470.00>
<326,147.35>
<4,711,322.65>
94
Capital Contributions
586,000.00
3,646,834.17
<3,060,834.17>
-522
Change in Net Assets:
<4,451,470.00>
3,320,686.82
<3,060,834.17>
174
RUN DATE /TIME: 17:00:38 26 Jun 2008
REPORT ID: revexp07
FUND
Schedule of Revenue & Expense
05 -31 -08
ANNUAL CURR YR VARIANCE VAR
BUDGET Y -T -D Y -T -D
Operating Revenues:
Metered water sales
0.00
0.00
0.00
-100
Sewer maintenance charges
1,240,600.00
1,087,291.58
153,308.42
12
Construction water sales
0.00
0.00
0.00
-100
Irrigation sales
0.00
0.00
0.00
-100
Other
3,100.00
2,983.45
116.55
4
Customer service fees
0.00
0.00
0.00
-100
Rents and royalties
0.00
0.00
0.00
-100
Outside District water sales
0.00
0.00
0.00
-100
Unmetered water sales
0.00
0.00
0.00
-100
To: "Restricted for Debt Serv"
0.00
0.00
0.00
-100
Total Operating Revenues
1,243,700.00
1,090,275.03
153,424.97
12
Operating Expenses:
Variable water costs
0.00
0.00
0.00
-100
Personnel services
694,130.00
526,349.12
167,780.88
24
Depreciation
444,500.00
467,528.30
<23,028.30>
-5
Supplies and services
336,600.00
249,215.18
87,384.82
26
Total Operating Expenses
1,475,230.00
1,243,092.60
232,137.40
16
Operating (Loss)
<231,530.00>
<152,817.57>
<78,712.43>
34
FUND
Schedule of Revenue & Expense
05 -31 -08
ANNUAL
CURR YR
VARIANCE
VAR
BUDGET
Y -T -D
Y -T -D
$
Nonoperating Revenues:
Property taxes - debt service
0.00
0.00
0.00
-100
Property taxes - operations
65,100.00
0.00
65,100.00
100
Interest income
17,000.00
11,995.17
5,004.83
29
Other revenue
5,000.00
1,999.88
3,000.12
60
Rev Restricted for Debt Sery
0.00
0.00
0.00
-100
Total Nonoperating Revenues
87,100.00
13,995.05
73,104.95
84
Nonoperating expenses:
Interest expense
0.00
0.00
0.00
-100
Security Vulnerability Exp
0.00
0.00
0.00
-100
Other expense
0.00
362.89
<362.89>
-100
Total Nonoperating Expenses
0.00
362.89
<362.89>
-100
Income (Loss) before
Capital Contributions
<144,430.00>
<139,185.41>
<5,244.59>
4
Capital Contributions
249,500.00
1,528,992.15
<1,279,492.15>
-513
Change in Net Assets:
105,070.00
1,389,806.74
<1,279,492.15>
-1223
RUN DATE /TIME: 17:00:38 26 Jun 2008
REPORT ID: revexp07
ITEM NO. 3
AGENDA REPORT
Committee Meeting Date: July 8, 2008
To: Finance-Accounting Committee
From: Michael A. Payne, General Manager
Staff Contact: Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
Reviewed by General Counsel: N/A Budgeted:
Funding Source:
CEQA Account No:
Compliance: N/A Estimated Costs:
Subject: Investment Report for May 2008
N/A Total Budget: N/A
N/A
Job No:
N/A Dept: Bus
SUMMARY:
Government Code Section 53607, et, seq., requires the person delegated to invest funds to
make a quarterly report of the investments to the legislative body.
DISCUSSION:
I am submitting the May 2008 monthly investment report for your information. I will submit a
formal report of the investments for Board action for the quarter ending June 30, 2008 upon
approval of the Investment Report.
Below is a chart summarizing the yields as well as terms and maturities for the month of May
2008:
Avg.
Avg. Portfolio
Portfolio
# of
Avg. Term
Month Yield Without
Yield With
Days to
of
Portfolio in
of 2008 Wells Capital
Wells Capital
Maturity
Days
May 2.02%
2.27%
36
10
Below is a chart comparing operating fund interest for current and prior fiscal years:
Actual Interest 05/31/07 05/31/08
Monthly, Operating Fund $ 12,558 $ 692
Year-to-Date, Operating Fund $183,865 $28,209
Budget 2006/2007 2007/2008
Interest Budget, Operating Fund, May YTD $305.681 $78,833
Interest Budget, Operating Fund, annual $333,470 $86,000
Interest earned on investments is recorded in the Fund that owns the investment.
Investment Summary Comparison
The distribution of investments in the portfolio both in dollars and as a percentage of the total
portfolio by funds is as follows:
Fund Description
05/31/08
Annexation Fund
$ 9,671,162
17.02%
Water Fund
-2,603,483
-4.58%
Water R&R Operating Reserve
2,005,035
3.53%
Restricted for 2008 Debt Service
634,856
1.12%
2003 Bond Fund
6
0.00%
2008 Bond Fund
32,291,818
56.84%
Sewer Fund
1,220,130
2.15%
Sewer R&R Operating Reserve
134,410
0.24%
Imp. Dist. No. 1
4,101,672
7.22%
Imp. Dist. No. 2
9.351.331
16.46%
$56.806.937
100.00%
PRIOR RELEVANT BOARD ACTION(S):
These reports are presented to the Finance-Accounting Committee on a regular basis. Quarterly
Investment Reports are presented to the Board of Directors.
STAFF RECOMMENDATION:
That the Finance-Accounting Committee receive and file the report.
Yorba Linda Water District
Investment Portfolio Report
May 31, 2008
Market
Value Cost
Cash & Checking Accounts:
$ 470,212 $ 470,212
1,200 1,200
$ 471,412 $ 471,412
Money Market Accounts:
$ 519,929 $ 519,929
183,807 183,807
$ 703,736 $ 703,736
$ 1,175,148 $ 1,175,148
of Total Institution
Wells Fargo Bank
Imprest Cash
0.83% Total
Wells Fargo Money Market
Wells Fargo MM/Annexation
1.24% Total
2.07% Sub-total
California Asset Mgmt. Program:
$ 6,569,980 $ 6,569,980 11.57%
Money Market Account:
$ 32,291,818 $ 32,291,818
6 6
$ 32,291,824 $ 32,291,824 56.87%
Percent Investment Maturity
Yield Date Date
N/A
0.00%
0.66% N/A
0.66%
0.66%
0.40%
California Asset Mgmt. Program 2.78% N/A
US Bank 2008 Revenue Bond
US Bank 2003 Revenue Bond
$ 40,036,952 $ 40,036,952 70.51% Sub Total Investments
1.93%
0.00% N/A
1.93%
2.02%
Individual Management Account.
$ 16,741,764 $ 16,746,237 29.49% Wells Capital Management
$ 56,778,716 $ 56,783,189 100% Total Investments
2.87%
2.27%
N/A
Per Government Code requirements, the Investment Report is in compliance with the Yorba Linda Water District's
Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next
six months.
A vow 64tp_~
Sandi Van Etten, Senior Accountant
5/31/2008
ITEM NO. f-
Account Overview
Yorba Linda Water District
Account #18611500
Funding Date: 10/25/2005
Portfolio Statistics as of: 6/30/2008
Account Characteristics:
Portfolio Yield to Maturity 2.72%
Total Unrealized Gains/(Losses) - Current: (22,459)
Total Net Realized Gains/(Losses) - Since Inception: 496
Total Long-Term Investments: -
Total Short Duration Investments/Money Market Secs: 16,756,854
Total Market Value: 16,756,854
Total Number of Issues in the Portfolio: 13
MARKET DATA
Overnight Fed Funds Rate: 2.00%
6-Month T-Bill Yield: 2.16%
12-Month T-Note Yield: 2.38%
WELLS CAPITAL MANAGEMENT
Portfolio Summary Report Yorba Linda water District
For the period : 06/01/08 to 06/30/08 18611500
Portfolio Characteristics
Market Value:
16,756,853.71
Unrealized G /L:
(22,459.43)
Yield To Maturity:
2.72%
Portfolio Duration:
0.04 Years
Avg. Days to Maturity:
25
Avg. Portfolio Credit Quality:
Aa1
Market Data
Yields:
6 Month Treasury Bill
2 Year Treasury Note
5 Year Treasury Note
Fed Funds Target:
06/30/08
2.15%
2.62%
3.33%
2.00%
05/31/08
2.01%
2.64%
3.42%
2.00%
Portfolio Breakdown
Agency Discount Note
Commercial Paper
Floating Rate
Money Market Fund
Pending_Cash
Total
Credit Qualitv* Effective Maturity Distribution
Market Value % of Account
995,900.00
5.94%
2,495,461.67
14.89%
3,578,259.35
21.35%
9,687,232.65
57.81%
0.04
0.00%
16, 756, 853.71 100.00%
0.70
P1 /MIG1/VMIG1 /A -1
14.9%
0.60
- -
Aaa /AAA
5.9%
Aa /AA
14.5%
0.50
A/A
6.8%
Baa /BBB
0.0%
0.40
Other
0.0%
Cash /Overnights
57.8%
0.30
Not Rated
0.0%
100.0%
0.20
Moody's Ratings - Primary
0.10
S &P Ratings - Secondary
Fitch Ratings - Tertiary
0.00
o/n 2 to 90 91 to 180 181 to 1 year 1 to 2 years > 2 years
The above information is an estimate of certain investment calculations and does not represent your audited statement of record.
YORBA LINDA WATER DISTRICT
Statement of Cash Flows/Earnings for June 2008
I - Beginning Period Balances
Total Original Cost
+ Net Amort/Accr to Date
=Adjusted Book Value:
+ Accrued Interest Receivable
+ Unrealized Gain/(Loss)
= Total Market Value Plus Accrued Interest
I1: Period Income Earned
+ Ending Accrual
- Begininning Accrual
+ Interest Received
- Interest Paid at Purchase
+ Interest Received at Sale
= Interest Earned in Period
+ (Amort)/Accr This Period
= Monthly Portfolio Income
+ Contributions
- Withdrawals
+ Realized Gain/(Loss)
- Fees Paid This Period
- Prior Period Unrealized Gain/Loss
+ End Of Period Unrealized Gain/Loss
+ Net Receipts/Deliveries in Kind
+ Adjustments
= Net Change to the Portfolio
=Total Market Value Plus Accrued
Interest
111: End of Period Balances
Total Original Cost
+ Net Amort/Accr to Date
= Adjusted Book Value
+ Accrued Interest Receivable
+ Unrealized Gain/(Loss)
= Total Market Value Plus Accrued
Interest
Reconciliation D fference:
As of 5/31/2008
16,678,747
67,490
16,746,237
28,222
(4,474)
16,769,986
30,329
(28,222)
24,546
26,6531
11,462
1 $ 38,1151
(2,932)
(4,474)
(22,459)
0.00
0.00
(9,456)
16,787,183
As of 6/30/2008
16,771,652
7,661
16,779,313
30,329
(22,459)
16,787,183
Wells Capital Management
Holdings Report
Securities Held as of 6/30/08 on a Trade Date Basis
Identifier Credit Ratings
Par Value Security Description
Coupon
Final
Effective
Market Value Holdings as YTM at
to Eff Value
+Accrued Percentage of Purchase
Maturity
Interest Account or Reset
Maturity
Maturity
Moody's
S &P
Fitch
0.17
99.590
995,900
995,900
I. Cash & Cash Equivalents (Original maturity
of 90 days or less)
1
0.00
100.000
Cash
500,000
2.98%
2.94%
81
0.22
99.362
U.S. DOLLARS
496,811
2.96%
(0) PENDING CASH
9
0.02
99.936
499,680
499.680
2.98%
(0)
35
0.09
99.794
Money Mkt Securities
498,971
2.98%
2.44%
1
0.00
100.000
Agency Discount Note
500.000
2.98%
3.01%
1
0.00
100.000
313396E41 AGY
AGY
AGY
1,000.000 FHLMC
0.000
09/02/08
09/02/08
Commercial Paper
13,196,777
78.65
2.69%
1247P2G16 P1
A -1+
NR
500,000 CAFCO LLC
0.000
07/01/08
07/01/08
29372BJK1 P1
A -1+
NR
500,000 ENTERPRISE FUNDING LLC
0.000
09/19/08
09/19/08
29865LG91 P1
A -1+
NR
500,000 EUREKA SECURITIZATION CPDN
0.000
07/09/08
07/09/08
36959HH42 P1
A -1+
NR
500.000 GENERAL ELEC CAP CORP CPDI
0.000
08/04/08
08/04/08
82124LG14 P1
A -1+
NR
500,000 SHEFFIELD RECEIABLES CPDN
0.000
07/01/08
07/01/08
Money Market Fund
VP7000038 NR
NR
NR
9,687,233 WF ADV MONEY MKT TR #645
2.688
07/01/08
Cash & Cash Equivalents Total
13.187,233
II. Marketable Securities
(Original maturity greater than 90 days)
IIA: Short Term Securities
(Remaining
maturity of less than 365 days)
Corporate Securities
Corporate Obligation
Floating Rate
38141EKG3 Aa3
AA-
AA-
700.000 GOLDMAN SACHS GROUP INC
3.013
07/29/08
07/29/08
40429CCU4 Aa3
AA-
AA-
400,000 HSBC FINANCE CORPORATION
2.906
09/15/08
09/15/08
59018YVZ1 Al
A
A+
700,000 MERRILL LYNCH & CO
2.748
08/22/08
08/22/08
617446A82 Aa3
A+
AA-
650.000 MORGAN STANLEY
2.521
11/21/08
11/21/08
7591EPAB6 A2
A
A+
450,000 REGIONS FINANCIAL CORPORA-
2.838
08/08/08
08/08/08
929903AQ5 Aa3
AA-
AA-
700,000 WACHOVIA CORP
2.949
10/28/08
10/28/08
3.600.000
Govt Securities
Gov Agncy Obligation
Short Term Securities Total 3,600,000
IIB: Long -Term Securities (Remaining maturity greater than 365 days)
Corporate Securities
Long Term Securities Total 0
Marketable Securities Total 3,600,000
16,787,233
29
Yorba Linda Water District
99.965
18611500
Days Duration Market Price Market
Market Value Holdings as YTM at
to Eff Value
+Accrued Percentage of Purchase
Maturity
Interest Account or Reset
29
0.08
99.965
(0)
(0)
0.00%
0.00%
0
0.00
0.21
0
0
0.00%
0.00%
64
0.17
99.590
995,900
995,900
5.94%
2.25%
1
0.00
100.000
500,000
500,000
2.98%
2.94%
81
0.22
99.362
496,811
496,811
2.96%
2.89%
9
0.02
99.936
499,680
499.680
2.98%
3.01%
35
0.09
99.794
498,971
498,971
2.98%
2.44%
1
0.00
100.000
500,000
500.000
2.98%
3.01%
1
0.00
100.000
9,687,233
9,705,415
57.81%
2.69%
1
0.00
13,178,594
13,196,777
78.65
2.69%
29
0.08
99.965
2.83%
699,758
703,448
4.18%
3.01%
77
0.21
99.946
2.83%
399,786
400,270
2.39%
2.91%
53
0.11
99.733
698,128
700,264
4.17%
2.75%
144
0.06
99.552
647,088
647,452
3.86%
2.52%
39
0.11
99.546
447,955
449.870
2.67%
2.84%
120
0.07
97.935
685,546
689,101
4.09%
2.95%
79
0.10
3.578,259
3.590,406
21.35%
2.83%
79 0.10
3,578,259 3,590,406
21.35
2.83%
0 0.00
0 0
0.00%
0.00%
79 0.10
3,578,259 3,590,406
21.35%
2.83%
25 0.04
16,756,854 16,787,183 100.00% 2.72%
The above information is an estimate of certain investment calculations and does not represent your audited statement of record. Page- 1 of 1