Reporting forms for relief associations with assets or liabilities of at least $500,000 are required to be submitted to the Office of the State Auditor (OSA) by June 30. Relief associations with assets or liabilities above this statutory threshold must also submit an annual audit to the OSA.
Whether a relief association has exceeded the statutory threshold is determined using end of year asset and liability amounts, and is based on Special Fund amounts, only. After a relief association exceeds the threshold in either assets or liabilities, an audit is required beginning with the next reporting year’s reports.
For example, if a relief association exceeds the threshold during 2020, an audit is first required with the 2021 reports that are submitted to the OSA during 2022. After a relief association exceeds the $500,000 threshold, an audit continues to be required even if the relief association’s assets and liabilities subsequently drop below the threshold.
Auditors are required to follow the Legal Compliance Audit Guide for Relief Associations, which prescribes the minimum procedures and audit scope for legal compliance audits. Click here to access the Guide.
Relief associations with assets and liabilities that are both less than $500,000 have a March 31 reporting deadline and must submit an agreed-upon procedures report with the reporting forms.
The OSA has developed minimum procedures and a reporting format for agreed-upon procedures engagements for relief associations. A sample client representation letter is also provided. Click here to access these agreed-upon procedures documents.
Published last in the May 2020 Pension Newsletter