San Diego County Grand Jury
• 2011-2012
Accounting for Self-insurance Funds in School District Audits
⚠️ 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 4 findings
F01
As of June 30, 2011 these JPAs had 37 school districts and community college members, and over $100 million in the county treasury. Fact: The two Self-Insurance Joint Power Authorities operate as a banking pool, as defined by the Governmental Accounting Standards Board. Fact: The two Self-Insurance Joint Power Authorities’ audits report each district’s equity and/or liability balances by insurance program.
F02
The two JPA’s annual audits show equity balances of over $30 million and liability balances of over $1 million. Fact: School districts are public entities and their audits must follow Governmental Accounting Standards Board rules. Fact: The Governmental Accounting Standards Board, Statement 10 and Interpretation 4 say each district should report their JPA balance as an asset or liability. Fact: None of the district audits examined by the Grand Jury reported self-insurance JPA funds in their asset or liability balances.
F03
District equity or liability balances were over-or under-reported in school district audits.
F04
School district stakeholders cannot discern a district’s true financial position from its audit. 3
Recommendations 1
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12-26Page 4Ensure that the Independent Auditors who do the annual school
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.