FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Informational: Agreed Upon Procedures Reports: Death Benefits, Accounts Payable, and SBCERA Payroll
RECOMMENDATION:
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Agreed Upon Procedures Reports for Death Benefits, Accounts Payable, and SBCERA Payroll.
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BACKGROUND:
On July 2, 2020, the Board approved an Audit Workplan for FY 2023-24 to cover three key work activities. After the key work areas were approved by the Board, staff issued a Request for Proposals and the Board approved Brown Armstrong Accountancy Corporation to perform agreed upon procedures in the areas below to identify and mitigate any internal control deficiencies.
Death Notification and Benefit Process - This area was originally evaluated using Agreed Upon Procedures (AUP) in 2021. The 2021 report illustrated findings surrounding the process and delayed notification of deaths. In response to that initial report, staff created a new process. The Board approved this second AUP to evaluate the new process. The 2024 report illustrated a continued deficiency in timeliness of death notifications and payments. It also provided recommendations for improving timeliness and creating written procedures. In response to the continued findings, SBCERA has created a new position, Survivor Benefits Manager. This role’s primary function will be to evaluate the process, cure the deficiencies, and document the new process.
The agreed upon procedures applied to Accounts Payable and Payroll Process (SBCERA Employees) areas did not note any findings nor require any recommendations for improvements to internal controls or policies.
COMMITTEE REVIEW:
This item was reviewed by the Audit Committee at its November 21, 2024 meeting.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Attachment A: Agreed Upon Procedures Report - Brown Armstrong Accountancy Corporation