b'2007 The election period for sworn Port Police Officers to transfer to Tier 5 closed on January 5, 2007, with 40 Port Police Officers electing membership in Tier 5.On February 1, 2007, the Board of Fire and Police Pension Commis-sioners (Board) created an Audit Committee, followed by the creation of an Internal Audit function within the System.On March 6, 2007, voters passed a Charter amendment giving the City Council authority to establish, by ordinance, a voluntary Public Service Purchase Program. The City Council approved an extension of DROP, commencing May 1, 2007 and ending April 30, 2012, and excluded participation by the Chief Engineer of the Fire Department and the Chief of the Police Department.In July 2007, the System began audits of the retiree medical and dental plans offered by the Los Angeles Firemens Relief Associa-tion, the Los Angeles Police Protective League, the Los Angeles Police Relief Association, and the United Firefighters of Los Angeles City. The scope of the audits included eligibility, benefits, administration, and financial analysis.On September 6, 2007, the Board voted to revise its proxy voting guidelines to vote FOR shareholder proposals that request manage-ment to report on climate change. This change was in light of survey results released by an advocacy group known as theCarbon Disclosure Project (CDP). The study determined that 80% of U.S. companies believe that climate change poses commercial risks for their businesses. As a result, investors are encouraging more environmental disclosure from companies. The Supreme Court had ruled in April 2007 that greenhouse gases are a pollutant that may be regulated by the Environmental Protection Agency.ThefirstmanagementauditoftheSystemwasconductedby Independent Fiduciary Services with the results released on Decem-ber 3, 2007. Charter Section 1112 requires the City Controller, the Office of the Mayor, and the Los Angeles City Council to complete a management audit once every five years to be conducted by an independent, qualified management auditing firm. The purpose of the audit was to examine whether the System operates in the most efficient and economical manner. The audit found that the System was generally operating efficiently and in accordance with industry best practices, providing good investment returns overall, utilizing reasonableactuarialassumptionsandmethods,andpre-funding health insurance premium subsidy benefits.176 LAFPP ANNUAL REPORT 2025Jim Donaway Photo'