⚠️ 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.
Findings and Recommendations 4 findings
F1
Page 6
The Library's pension fund appears to be stabilized and the Library is making current payments. However the unfunded liability is still excessive in relation to the Library's total revenue.
Related Recommendations (1)
R1
Page 6
Library management draft a business plan that projects future revenues and expenses and provides for liability reduction.
F2
Page 6
The Library's OPEB (health and absences) obligation is seriously underfunded. The Library fails to completely fund its costs for current benefits as well as costs for its future unfunded liabilities.
Related Recommendations (1)
R2
Page 6
The Library Commission review the current financial status at least quarterly to verify that the unfunded liability is decreasing, and annually report to the public on the progress being made towards solvency.
F3
Page 6
The $1.1 million fund for future OPEB costs, invested with CalPERS, does not appear in the Library's financial reports.
Related Recommendations (1)
R3
Page 6
The Library fund its current OPEB costs and not allow its unfunded liability to increase. Monies set aside for these benefits should be placed in a non-revocable trust fund similar to the one created for pension benefits.
F4
Page 6
New management is aware of the Library's financial difficulties and is developing new programs for revenue building. However, revenue for these programs will compete with Library operating needs as well as paying down unfunded liabilities.
Related Recommendations (1)
R4
Page 6
The Library allocate any new revenue to ensure that all the Library's current expenses are paid as they are incurred and that its pension and OPEB liabilities are not allowed to grow.