Edward Fama Associate Program Auditor Michelle OConnor CPA Staff Program Auditor Chris Wall MBA Senior Program Auditor Office of Audit Services Session Agenda Purpose of a Review Review Process ID: 693268
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CalPERS Public Agency Reviews
Edward Fama, Associate Program Auditor
Michelle O’Connor, CPA, Staff Program Auditor
Chris Wall, MBA, Senior Program Auditor
Office of Audit ServicesSlide2
Session Agenda
Purpose of a Review
Review Process
Common FindingsQ & A
2Slide3
Benefits of a ReviewSlide4
Authority to Review
CalPERS Contract
Audits-Employer Information
California Government Code Section 20222.5
Confidentiality of Information
California Government Code Section 20230
4Slide5
Benefits of a Review
Ensure compliance with PERL
Provide training opportunity
Improve processes
Provide updates on business rules
Provide assurance
5Slide6
Benefits of a Review
6Slide7
Review ProcessSlide8
Review Process
Purpose of Reviews
Process
Approach
8Slide9
Review Process
Purpose of Reviews
Process
Approach
9Slide10
Review Process
10Slide11
Review Process
11Slide12
Review Process
12Slide13
Review Process
Purpose of Reviews
Process
Approach
13Slide14
Review Process
14Slide15
Common Audit
FindingsSlide16
Common Findings
Criteria/Resources
Government Code (GC)
California Code of Regulations (CCR)
Public Agency and Schools Reference Guide
Computer Based Training (CBTs)
Student Guides
16Slide17
Common Findings
Pay Schedule must meet the definition in CCR 570.5
Approved by the governing body
Include all employee positions and
Includes
payrate
(s) for employee position(s)
Include time base
Immediately accessible and available for review
Indicates effective date and any revision dates
Doesn’t reference another document when disclosing
payrate
17Slide18
Common Findings
Pay Schedule Resources
CCR 570.5
Common misreported items of compensation circular letter was issued October 27, 2014. https://www.calpers.ca.gov/docs/circular-letters/2014/
200-064-14
.pdf
18Slide19
Common Findings
CCR 571(b)(1) for Written labor policy or agreements
Approved in a public meeting
Specifies condition for payment
Immediately accessible
Effective date and revision date
Retained for at least 5 years
Does not reference another document
19Slide20
Previous Cycle – Census
Data Validation
Agencies reviewed
32 Public Agencies
28 Schools
4 Judges Retirement System
Performed as part of our financial statement audit.
Sample selection performed by external auditors.
Other Matters
20Slide21
Results of the 28 Schools tested
21Slide22
Common Findings
Permanent separations
Retroactive adjustmentsSlide23
Permanent Separations
Agency’s are responsible to report permanent separations
No longer working for the Agency
Retired
Substitute teachers
23Slide24
Permanent Separations
Resources
Computer Based Training
Permanent Separation
Student Guides
Course 103
Scenario 5
https://www.calpers.ca.gov/docs/course-103.pdf
Circular Letter No: 200-015-16
https://www.calpers.ca.gov/docs/circular-letters/2016/200-015-16.pdf
24Slide25
Common Findings
Permanent separations
Retroactive adjustmentsSlide26
Retroactive Adjustments
Retroactive salary adjustments
Retroactive special compensation adjustments
Reported using the correct transaction types
Reported as earnedSlide27
Retroactive Adjustments
Computer Based Training
Making Adjustments to Posted Records in
my|CalPERS
Reporting & Adjusting Special Compensation
Student Guides
Course 204
Units 3 & 4
https://www.calpers.ca.gov/docs/course-204.pdf
Resources
Slide28
Common Findings
28
Special Compensation Categories – CCR 571Slide29
Common Findings
Special Compensation Resources
CCR 571
Public Agency and Schools Reference Guide
Common audit findings circular letter: https://www.calpers.ca.gov/docs/circular-letters/2014/200-064-14.pdf
29Slide30
Previous Cycle – Special
Compensation Items
Off-Salary Schedule Pay
Bonus Pay
Lump sum payments
Not Reportable
30Slide31
Previous Cycle – Special
Compensation Items
Off-Salary Schedule Pay
Bonus Pay
Lump sum payments
Not Reportable
31Slide32
Previous Cycle – Special
Compensation Items
Off-Salary Schedule Pay
Bonus Pay
Lump sum payments
Not Reportable
32Slide33
Previous Cycle – Special
Compensation Items
Off-Salary Schedule Pay
Bonus Pay
Lump sum payments
Not Reportable
33Slide34
General Resources
Employer education
https://www.calpers.ca.gov/page/education-center/employer-education
Public Agency and Schools Reference Guide
Computer based training (CBTs)
Student Guides
888
CalPERS
(or 888-225-7377)
34Slide35
Questions?