Relief associations with assets or liabilities of at least $500,000 must submit audited financial statements to the OSA by June 30. Trustees of relief associations that have the audit requirement should confer with their auditors to ensure that the association’s audited financial statements comply with generally accepted accounting principles (GAAP).
GAAP requires that a Management’s Discussion and Analysis (MD&A) be included with a relief association’s audited financial statements. If the MD&A is not included with the audited financial statements, the omission should be noted in the Independent Auditor’s Report.
In addition, there are three options for presenting the relief association’s General Fund for audit purposes: 1) consolidate the General Fund with the Special Fund depending upon its materiality (the physical funds must remain separate); 2) show the General Fund separately with the adjustments from modified to full accrual basis financial statements; or 3) separately show the General Fund as a fiduciary fund in the same manner as the Special Fund.
Published last in the May 2014 Pension Newsletter