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San Francisco Health Service System Board accepts clean audit, authorizes election and approves reserve calculations
Summary
The HSS Board accepted a clean audit for fiscal year 2019, authorized the 2020 board election, and approved actuarial reserves for claims runout and contingency. Board members also reviewed budget instructions and operational updates; votes were unanimous by voice vote.
The San Francisco Health Service System Board on Jan. 9 accepted an unqualified audit opinion for the fiscal year that ended June 30, 2019, authorized staff to begin a 2020 board election and approved incurred-but-not-reported (IBNR) and contingency reserve calculations for its plans.
KPMG’s audit presentation reported an unqualified, or clean, opinion with no internal-control deficiencies. Following the audit presentation a board member moved to accept the audit “as presented,” a motion that was seconded and approved by unanimous voice vote.
Executive Director Abby Yant presented a resolution directing staff to initiate the Health Service System’s election process for a board seat that will be vacated in May; the board approved the resolution by voice vote. The resolution formalizes a nomination window beginning Jan. 10 and closing Feb. 14, with elections to follow if multiple qualified candidates come forward.
Tom Ricks of Aon presented the actuarial analysis of IBNR and contingency reserves as of June 30, 2019. He described total reserves of roughly $27.9 million and noted a 2.5% overall increase in contingency reserves driven primarily by volatility in the UnitedHealthcare retiree population, which raised that plan’s contingency by about $600,000. A motion to approve the reserves carried by unanimous voice vote.
Routine housekeeping items included unanimous approval of the Dec. 12, 2019 meeting minutes and a motion to adjourn the meeting.
What happens next: The board will present the proposed fiscal-year budgets to the Budget and Finance Committee on Feb. 13 and submit final materials to the mayor’s office per the city’s two-year budget timetable.
Votes at a glance
- Approval of Dec. 12, 2019 minutes — Motion moved and seconded; approved by voice vote (unanimous). - Acceptance of KPMG audited financial statements (year ended 06/30/2019) — Motion moved and seconded; approved by voice vote (unanimous). - Resolution to order the 2020 HSS board election (nominations Jan. 10–Feb. 14) — Motion moved and seconded; approved by voice vote (unanimous). - Approval of IBNR and contingency reserves (06/30/2019 amounts) — Motion moved and seconded; approved by voice vote (unanimous).
