Health service board accepts fiscal 2020 audit; auditors issue unmodified opinion

The San Francisco Health Service System Board voted to accept the audited financial statements for the fiscal year ending June 30, 2020, after auditors reported an unmodified opinion and management confirmed the statements are reliable.

MTO engagement partner Annie Louie told commissioners the firm issued an unmodified opinion — the highest level of assurance — and found no control deficiencies that required board reporting. Louie highlighted that the actuarial estimate for claims reserves is a significant judgment in the statements and said her firm’s independent actuary reviewed the assumptions and found them reasonable. “We were able to provide an unmodified opinion,” Louie said.

Chief Financial Officer Larry (as introduced by staff during the meeting) recommended acceptance of the audit memo as presented. Commissioners asked clarifying questions about Note 4 (reserve estimates); the auditors replied that the note was highlighted for users’ awareness and did not represent an unresolved misstatement or control deficiency.

The board opened the item for public comment; one caller asked where to obtain the full audited financial statements and was told the documents are available on the HSS website or can be emailed on request. Commissioner Scott moved to accept the audit report; the motion was seconded and approved by voice vote.

Next steps: staff will post the full audited financial statements and follow up on any questions about the actuarial assumptions when requested by board members or members of the public.

Sources: Presentation and Q&A during the board meeting; auditor presentation and board vote.