Orange County Grand Jury
• 2014-2015
• Agency Response
Unfunded David J. Shawver Retiree Health Care Obligations - a Problem for Public Agencies?*
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Recommendations 1
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R4Page 1All agencies surveyed should recognize retiree health care benefits in employee compensation in conformity with GAAP. (F.4.) City Response: The recommendation will not be implemented because it is not warranted or is not reasonable. The City of Stanton already accounts for retiree healthcare costs in its budget and associated reporting of expenditures as part of salary and wages. The City already recognizes health care benefits in employee compensation and is properly reporting Other Postemployment Benefits (OPEB) in the City's Comprehensive Annual Financial Report (CAFR) as required by GASB Statement No. 45. The City's OPEB disclosures are properly reported in Note 12 to the Basic Financial Statements (See FY 2013/14 CAFR pages 71-72) and required disclosures are included in the CAFR's Required Supplemental Information Section (FY 2013/14 CAFR ). The City's reporting is consistent with GAAP standards. This is supported by the City's CAFR being audited each year for compliance with GASB Statement No. 45 by external auditors and Government Finance Officers Association (GFOA) reviewers. The City has received no
* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.