ANTONOVICH CALLS FOR INDEPENDENT AUDIT OF COUNTY'S PENSION FUND ACCOUNTING METHODOLOGY

 

 

 

       

 

PRESS RELEASE

Contact:  Tony Bell, Communications Deputy Office:     (213) 974-5555  Cell: (213) 215-5176 E-mail:     tbell@bos.lacounty.gov

      November 9, 2010                                                                                       For Immediate Release

 

ANTONOVICH CALLS FOR INDEPENDENT AUDIT OF COUNTY’S PENSION FUND ACCOUNTING METHODOLOGY

 

LOS ANGELES COUNTY – Supervisor Michael D. Antonovich introduced a motion directing the County’s Auditor-Controller to hire an expert independent firm to audit and provide recommendations to the Board of Supervisors on accounting and actuarial methodologies currently utilized by the Los Angeles County Employee Retirement Association, the county’s pension fund.

 

“In light of recent civil convictions being taken by the SEC against San Diego city officials, statements by Governmental Accounting Standards Board, and the increasing financial scrutiny placed on municipalities including Los Angeles County, it is prudent to double check the standards and practices that the County is adopting to arrive at the figures it is placing in its financial statements,” added Antonovich.  “This is especially true with respect to the pension liabilities and unfunded Retiree Health Insurance Benefit Program which will reach nearly $26 billion in the coming years.” 

 

In June 2010, the (GASB) took a position that the portion of the pension obligation that is not covered by assets, the unfunded obligation, is a liability of government and meets the criteria for being reported in the government's accrual-based financial statements.

 

Antonovich highlighted a recent decision by the Securities and Exchange Commission (SEC) to increase focus on transparency, reliability, and disclosure on employee pensions. 

 

Los Angeles County’s pension fund contribution increased by $200 million in fiscal year 2010/2011 bringing the total to $987 million. 

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