FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Informational: Agreed Upon Procedures Reports: Cash Management, Member Data Accuracy, and Death Benefits
RECOMMENDATION:
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Agreed Upon Procedures Reports for Cash Management, Member Data Accuracy, and Death Benefits.
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BACKGROUND:
On July 2, 2020, the Board approved an Audit Workplan for FY 2020-21 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 two firms to perform agreed upon procedures in the following areas to identify and mitigate any internal control deficiencies:
|
Key Work Area(s) |
Firm Selected to perform AUP |
|
Accuracy of Member Information |
Brown Armstrong Accountancy Corporation |
|
Death Benefit Processes, Member Death Verification |
Brown Armstrong Accountancy Corporation |
|
Cash Management, Wire Transfer Process |
Davis Farr LLP |
The agreed upon procedures applied to Accuracy of Member Information, Death Benefit Processes, and Member Death Verification, performed by Brown Armstrong Accountancy Corporation, revealed areas needing improvement. SBCERA is currently working with a consultant to create revised procedures and the pension software developer to improve system resources. The findings mostly surrounded the process for tracking payments after the member has passed away. Incorporated within the Brown Armstrong report are management’s responses to the noted deficiencies.
The agreed upon procedures applied to Cash Management and Wire Transfer Process, performed by Davis Farr LLP, did not require any recommendations for improvements to internal controls or policies.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
Colin Bishop
Barbara Hannah
ATTACHMENTS:
Attachment A: Agreed Upon Procedures Report - Brown Armstrong Accountancy Corporation
Attachment B: Agreed Upon Procedures Report - Davis Farr LLP