Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Finance topic
No spam. Unsubscribe anytime.
SFHSS audit receives clean opinion; finance report notes claims uptick and settlement boost to trust
Summary
Independent auditors issued an unmodified opinion on the SFHSS employee benefit trust financials and reported no significant internal-control deficiencies; CFO reported a $14.7M settlement-driven increase to the net trust balance while noting rising claims and staffing vacancies.
Independent auditors from MGO told the San Francisco Health Service Board they issued an unmodified (clean) opinion on the FY 2021–22 employee benefit trust financial statements and reported no material internal control weaknesses or compliance exceptions.
Craig Harner, partner on the engagement, said the auditors issued their report on Oct. 26, 2022, and that audit procedures included review of significant accounting estimates such as the fair value of investments and incurred-but-not-reported (IBNR) claims reserves. Harner said the audit found no significant discrepancies between the plan actuary’s reserve calculations and the auditors’ independent actuarial specialist review.
Chief Financial Officer Iftikhar Hussain presented the SFHSS financial highlights for the period ending Sept. 30, 2022, saying the net trust balance increased by approximately $14.7 million largely due to a settlement payment and projecting a year-end health sustainability fund balance of about $2.7 million. He also reported that claims are running high across plans and noted recruitment and vacancy pressures across the city workforce.
The board moved to accept the audit report with thanks to the auditors and CFO; the motion passed unanimously on roll-call vote.
What happens next: staff will continue to monitor claims trends and report to the board; any implications of the settlement for rates will be addressed through actuarial work and discussed with the board.
