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KPMG issues clean opinion; board approves FY2015–16 audited financial statements
Summary
KPMG presented an unmodified (clean) audit opinion for FY2015–16. HSS reported a June 30, 2016 net position of about $68.8 million, identified roughly $54 million in future obligations and reserves, and the board approved the audited financial statements by voice vote.
KPMG audit staff told the Health Service Board that the fiscal‑year 2015–2016 financial statements received an unmodified opinion and that auditors found no corrected or uncorrected misstatements and no internal‑control deficiencies.
"There were no corrected or uncorrected misstatements. There were no internal control deficiencies," KPMG Audit Manager Ji Wa Li reported during the presentation.
Pamela Levin, Chief Financial Officer, summarized audited results: the trust ended FY2016 with about $68.8 million in net assets, a decline of approximately $12.9 million from the prior year. Levin said the change largely reflected movements in the City Health Plan and the Blue Shield flex‑funded plan and pointed to $54 million in identified future obligations and reserves, including contingency and stabilization reserves and performance guarantees through 2020.
Board members questioned details in the MD&A and noted a minor typo that management corrected; Levin confirmed chart values were correct. Following discussion, a motion to approve the fiscal 2015–2016 audited financial statements was made and approved by the board.
Levin said trust balances and reserves will be reevaluated in the 2017 rates and benefits process and that the board had previously authorized $10 million in reserve use during the 2017 rate process.
The board received the audit presentation and approved the audited financial statements as Item 5 on the agenda.
