FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Selection of Accounting Firms to Perform Agreed Upon Procedures for FY 2025-26
RECOMMENDATION:
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Recommend that the Board approve the engagement of Brown Armstrong Accountancy Corporation in the sum of $33,350 for two agreed upon procedures reports.
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BACKGROUND:
On April 3, 2025, the Board approved an FY 2025-26 Audit Workplan with two specific areas for Agreed Upon Procedures reports to be prepared by an independent accounting firm or firms. Those reports cover the following areas:
1. Retiree Benefit Payments (Refunds)
SBCERA processes ongoing monthly benefit payments to more than 17,000 members and their beneficiaries using Pension Gold as the pension administration system. Payments are made via direct deposit and physical check. For members who terminate employment, they may select to refund their contributions and terminate their membership. SBCERA processes approximately 150 refunds each month. These refund payments are made via direct deposit and check.
* Audit the process for Retiree Benefit Payments (and Refunds), specifically, that entries are made timely, accurately, and proper procedures are followed.
* Make recommendations for internal control and process improvements.
2. Investment Program
SBCERA Investment Policy No. 001 (Investment Plan, Policy, and Guidelines) is approved by the Board of Retirement with the purpose of establishing sufficient flexibility in the management oversight process while setting forth reasonable parameters to ensure prudence and care in the execution of the investment program. As part of this policy, the Board delegates specific authority to Staff to assist the Investment Committee and Board in implementing the investment program.
* Audit the process for the investment program and ensure that proper procedures are in place and followed to ensure that the program is followed. This may include, but not be limited to, ensuring that contracts a...
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