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Audit Objective

Determine whether District officials and personnel ensured that health insurance contributions from eligible retirees were properly billed, collected and deposited..

Key Findings

District officials did not provide sufficient oversight to ensure that retirees’ health insurance contributions were properly billed, collected and deposited. Officials did not:

• Adequately segregate duties related to billing, collecting and depositing retirees’ health insurance contributions.
• Ensure that sufficient documentation was maintained to verify the calculations of certain retirees’ contributions.

Key Recommendations

• Adequately segregate duties relating to billing, collecting and depositing retirees’ health insurance contributions or implement sufficient compensating controls.
• Ensure that documentation necessary to verify calculations of all retirees’ health insurance contributions is maintained.

District officials generally agreed with our recommendations and indicated that they planned to initiate corrective action. Appendix B includes our comment on an issue raised in the District’s response.