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Recommendations 3

• R2

  Page 35
  Public Agencies ond public employee unions should explore how increasing employee pension contributions con reduce non-funded liobilities. This recommendation is not applicable to Local Educational Agencies (LEA) in Nevada County and will not be implemented because CaIPERS and CaISTRS are the responsible entities regarding public employee pensions. Anyfunds reserved atthe LEA, Union oremployee levelswould not impactthe unfunded liability as this liability is legally that of the pension systems. The LEA and employee offset this 32 unfunded liability indirectly through the increased contributions imposed by decisions made by CaIPERS and CaISTRS in their efforts to fund the long term liabilities.
• R3

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  For the purpose of tronsporency ond eosy occess, each ogency should provide links to three yeors of oudited financiol statements ond summory pension doto for the some period on the financial page of its public website. We agree with this as a great tool to provide transparent information to the public. Along with the two years of audited financial statements that were already posted we have added three more years. Suinmarizecj pensiori ciata is irrciucjecl with the audited financial statements.
• R4

  Page 36
  Public ogencies should consider implementing the suggestions form the Leogue of California Cities. As mentioned in the response to Recommendation #R2 above, this report is not applicable to the LEA's in Nevada County. LEA's are however, planning for many years of increased contributions to CaIPERS and CaISTRS. Each agency, including the NCSoS will decrease other areas of spending to incorporate these additional costs into the budget as there are no increases to revenue anticipated to fund these cost increases. Once again, I would like to thank the Grand Jury for looking into this issue that has the potential for dire consequences to our local schools. My office, alongside the professional organizations we belong to, will continue to voice our concern and lobby our elected officials to pay down this unfunded liability at the state level where it originated. The Governor and the Legislature need to look at the budget surplus as one potential source to help pay off the debt. is, s tendent District 33 /Niil€L Nevror frrv sciis,ry ^ I t. l)l 7 (.i (1ry I ( September 9,2018 The Honorable Thomas Anderson Supervising Judge of the Grand Jury 201 Church Street Nevada City, CA 95959 RE: Grand Jury Report: "Will the Public Suffer Because of Unfunded Pension Liabilities?" To the Honorable Thomas Anderson: The Nevada County Grand Jury has requested that the Nevada City School of the Arts respond to recommendations 2,3,4, and 7 of the report, "Will the Public Suffer Because of Unfunded Pension Liabilities?" We appreciate the opportunity to comment on relevant portions of the report pursuant to Penal Code section 933.05(b). RE,COMMENDATIONS: 2. Public agencies and public employee unions should explore how increasing employee pension contributions can reduce non-funded pension liabilities. The recommendation requires further analysis. Nevada City School of the Arts properly audits its financial statements as a non- profit organization and not as a governmental agency. Because Governmental Accounting Standards Board (GASB) rules do not apply to the School and because non-funded pension liabilities are not relevant to a non-profit audit report, the School is not aware of the amount, if any, of a net pension liability. Although not legally required, to cooperate with the Grand Jury the School's next audit report will include an added disclosure footnote that will contain the calculated amount of any net pension liability. The amount of any such liability will determine whether the School will agree to explore how to reduce it. 3. For the purposes oftransparency and easy access, each agency should provide links to three years of audited financial statements and summary pension data for the same period on the financial page of its public website. The recommendation will not be implemented at the present time but will be implemented in the future. Nevada City School of the Arts will provide links to three years of audited financial statements on its public website by September 30, 2018. However, the School will not have summary pension data available, as mentioned above, until 2019. 13032 Bitney Springs Road, Nevada City, CA 95959 . 530.273.7736. Fax:530.2-13.1378 . www.ncsota.org . Tax ID: 45-3591730