FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Annual Comprehensive Financial Report, Independent Auditor's Report, and Other Required Communications
RECOMMENDATION:
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Annual Comprehensive Financial Report, Independent Auditor's Report, and other Required Communications for the years ended June 30, 2021 and 2020.
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BACKGROUND:
SBCERA's management is responsible for the accurate preparation of the financial statements in accordance with generally accepted accounting principles (GAAP), and presents the Annual Comprehensive Financial Report for approval. The Board's independent financial statement auditor, Brown Armstrong is responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are presented fairly in all material respects.
The role of the external auditor is to provide an opinion on the basic financial statements based on the results of their audit. Brown Armstrong issued an unmodified opinion that the Basic Financial Statements are free from material misstatements and presented fairly in accordance with GAAP. Staff and Brown Armstrong will provide an overview of the audit and present the Comprehensive Annual Financial Report (Exhibit A) and other Required Communications (Exhibit B) on SBCERA's Basic Financial Statements.
Brown Armstrong has noted one condition that relates to the payment of death benefits. The current process of notifying a beneficiary after the death of a member is lacking a method of tracking and follow up. SBCERA is currently working with Linea Solutions (as part of the Pension Gold refresh project) to create a new process that will include a solution to this identified condition.
In past years, the Audit Committee has reviewed only the Basic Financial Statements. Staff worked with the actuaries and auditors to advance the timing of the production of the Annual Comprehensive Financial Report and is bringing it to the Board on a substantially compressed...
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