Sonoma County Grand Jury
• 2015-2016
• Agency Response
Library Commission's Response*
⚠️ 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
F2
Page 2
The Library's OPEB (health and absences) obligation is seriously underfunded. The Library fails to completely fund its cost for current benefits as well as costs for its future unfunded liabilities.
Related Recommendations (1)
R2
Page 1
The Library agrees with this recommendation. Library staff will provide an estimate of the accrued liability, based on information from the actuarial report, to the Library Commission on a quarterly basis. The Commission will report annually to the public on its long-term obligations based on the information received in the annual audit. The quarterly reports will begin in February of 2017 with the annual report being made in approximately December of 2017 when the final audit is received.
F3
Page 2
The $1.1 million fund for the future OPEB costs, invested with CALPERS, does not appear in the Library's financial reports.
Related Recommendations (1)
R3
Page 2
The Library agrees with this recommendation. Through its budget cycle each year the Library will evaluate the annual OPEB costs, its operating expenditures and determine the amount that can be paid toward the unfunded liability. The expected revenues and operating expenses will be a determining factor in deciding what amount to deposit into the OPEB trust that was set up in 2014.
F4
Page 2
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. Library's Response to the Grand Jury's Findings The Library agrees with this finding.
Related Recommendations (1)
R4
Page 2
The Library partially agrees with the recommendation. The Library cannot commit to allocating any new revenue source to the pension and OPEB liabilities. New revenues may be designated for specific purposes and therefore would not be allowed to be used for the pension and OPEB liabilities. The Library will continue to use the increase in property tax revenue, if any, for current operating expenses of the system and to keep the growth of the liabilities to a minimum. The Library reviews the operating expenses for the system and its contribution to the OPEB trust during the annual budget cycle.
F5
Page 3
The Library include a summary of its pension reform progress in the Management and Discussion Analysis section of its annual financial report. This summary should discuss the identification of the OPEB, past and future contributions to the Health and Compensated Absences trust funds, and their status and change in value. Library's Response to the Grand Jury's Recommendations 1. The Library agrees with the recommendation. The Library management currently produces a business plan that projects revenues and expenses. Management will need to modify the plan to include a summary of the unfunded portion of the retiree benefits and make every effort to reduce the liability within the limits of its operating budget. This change will be implemented into the business plan by December 1st, 2016. 1.0 2. The Library agrees with this recommendation. Library staff will provide an estimate of the accrued liability, based on information from the actuarial report, to the Library Commission on a quarterly basis. The Commission will report annually to the public on its long-term obligations based on the information received in the annual audit. The quarterly reports will begin in February of 2017 with the annual report being made in approximately December of 2017 when the final audit is received.
Related Recommendations (1)
R5
Page 2
The Library agrees with the recommendation. The Library will implement the recommendation and include this summary in the Management and Discussion Analysis section of the annual audit every year. This will be implemented beginning with the audit for the year ending June 30,
* 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.