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PEBB board accepts FY2024 audit despite audit‑timing and internal control findings
Summary
The Public Employees Benefits Program Board accepted the FY2024 audited financial statements after auditors issued an unmodified opinion but reported delayed trial balances, correcting journal‑entry errors, and an internal‑control finding; board members pressed staff on corrective actions and timing.
The Public Employees Benefits Program Board voted May 21 to accept the audited financial statements for the self‑insurance internal service fund for fiscal year 2024, after a presentation from auditors who raised concerns about timing and internal control weaknesses.
Curt Schlicker, partner with ID Bailey, told the board the audit resulted in an unmodified opinion — the highest standard auditors grant — but that the fund’s net position fell from about $72 million to $28 million year‑over‑year, largely because of higher claims costs. Schlicker said the audit identified adjusting entries that corrected overstated revenues and expenses totaling roughly $2.5 million and $2.3 million and cited an internal‑control matter (2024‑001) related to auditors preparing financial statements on behalf of management.
“We did issue an unmodified opinion,” Schlicker said, explaining that while that opinion means reasonable assurance the statements are materially accurate, it does not eliminate all risk. He told the board delays in receiving a complete trial balance from the State Controller’s Office have prolonged PEBB’s audits: “The primary cause of the delays here were delays in receiving a complete trial balance,” he said.
Board members asked whether responsibility for the late reporting lay with the Controller’s Office or with PEBB. Schlicker said auditors must work from a complete trial balance and recommended PEBB bring more of its accounting in‑house so it can control timing and reduce dependency on the Controller’s Office. Several board members pressed for a corrective‑action plan and better documentation of steps PEBB will take to prevent repeated audit delays.
The board voted to accept the audited statements. Jennifer McClendon moved to accept the audit; the motion passed by voice vote.
What happens next: auditors noted the timing problems are likely to affect the 2025 audit as well unless PEBB and the Controller’s Office coordinate to produce trial balances earlier. Board members warned they will seek documentation of steps to shorten audit delays and improve management reporting.
