Joint Labor Management Benefits Committee

Transcription

1 Joint Labor-Management Benefits Committee COMMITTEE REPORT Date: January 5, 2017 To: From: Subject: Joint Labor Management Benefits Committee Staff Employee Benefits Trust Fund External Auditor Review JOINT LABOR-MANAGEMENT BENEFITS COMMITTEE MEMBERS: Employee Organizations Cheryl Parisi, Chairperson Paul Bechely Chris Hannan David Sanders Marleen Fonseca (alternate) Management Wendy G. Macy, Vice-Chairperson June Gibson Tony Royster Matthew Rudnick Miguel Santana RECOMMENDATION: That the Joint Labor-Management Benefits Committee (JLMBC) receive and file this report regarding an external audit review of the Employee Benefits Trust Fund. DISCUSSION: At its August 6, 2015 meeting, the JLMBC reviewed a report regarding the Civilian Benefits Program s Employee Benefits Trust Fund ( Trust Fund ), contained in Los Angeles Administrative Code (LAAC) Chapter 95 (Section 5.495), and approved certain recommendations from staff relative to Trust Fund activity, employee refunds, and securing an external auditor to review and validate Trust Fund activity. At its December 6, 2016 meeting, the JLMBC approved proposed modifications to Los Angeles Administrative Code, Chapter 95 (Chapter 95) to clarify that the Trust Fund is to operate in a manner similar to other City-administered trust funds, as well as with the authority to provide benefit overpayment refunds to City employees. The JLMBC further requested that the Personnel Department prepare a report to City Council with a recommendation to enact the changes by requesting the City Attorney to prepare and transmit the necessary ordinance. Staff is presently drafting this report. This report addresses the results of the external auditor review of the Employee Benefits Trust Fund initiated by the JLMBC August 2015 action. Working with the City Controller s Internal Audit Section, the firm of Turner, Warren, Hwang & Conrad (TWHC) was secured to provide a review of the Trust Fund for the purpose of validating its assets, liabilities and net surplus; and for making any necessary recommendations as to Trust Fund accounting practices. TWHC has completed its analysis and their report is provided as Attachment A to this report. TWHC s lead auditor, Dan Shea, will be present to assist with presenting the findings of the review. A. Background On January 7, 1997, the City established an Employee Benefits Trust Fund in LAAC Division 5 ( Finance ), Chapter 95. The purpose of the Trust Fund is for the receipt and retention of City and participant contributions for the Civilian Benefits Program. pg. 1

2 Amounts deposited into the Trust Fund may be used to pay for service provider premiums (medical, dental, life, disability, vision, and AD&D), cash-in-lieu benefits, and administrative/recordkeeping costs (contracted third-party-administration, staffing reimbursements, consulting services, participant reimbursements, education/travel, and other administrative expenses). General Fund amounts approved through the City s budget process, proprietary department payments, as well as employee contributions for their share of premium costs and supplemental coverage, are deposited into the Trust Fund. In addition, other potential Trust Fund revenue sources (which may have occurred in the past, are ongoing, and/or may recur in the future) include excess premium amounts returned from medical carriers with participating contracts, legal settlements, insurance Company demutualizations, employee direct payments for benefits when ineligible for subsidies, and interest earnings. The Personnel Department s Administrative Services Division (ASD) is responsible for administering the Trust Fund, including processing all payments in and out of the Fund. B. External Auditor for Review of Employee Benefits Trust Fund Activity TWHC s review resulted in a range of specific findings and recommendations, to be reviewed in detail at the meeting, and summarized as follows: 1) Tax Exempt Status TWHC noted that clarification of the City's intent regarding creating a Section 501(c)9 organization had been separately addressed by the City, as described earlier in this report. 2) Cash Flow TWHC observed that the Trust Fund s cash flow was sound relative to incoming transfers and its capacity to make timely payments to benefit service providers; TWHC further noted that the Trust Fund s current reserve target of 12.5% of monthly expenditures was a prudent amount for helping to manage cash flow on an ongoing basis. 3) Net Assets Validation - As of June 30, 2016, the auditor identified net assets in the Trust Fund of $14,832,119; this amount is net of all amounts due to the Trust Fund but not yet received, as well as all benefit payment obligations not yet made, as of the fiscal year ending date of June 30, In terms of reporting, TWHC observed that reporting was performed within Governmental Accounting Standards Board (GASB) generally accepted accounting principles (GAAP), with only one reporting exception noted (for the June 30, 2015 report). Going forward, TWHC recommends that ASD s ongoing reporting be prepared consistently on a GAAP-accrual basis (whereby revenues and expenses are reported in the period earned/incurred, respectively), and provided a monthly reporting template to help more effectively track accrual and net assets on a monthly basis. 4) Accrual Reporting On a related basis, TWHC recommended that ongoing reporting to the City Controller be done on an accrual basis so that these reports match the annual reporting prepared for the Trust Fund. 2

3 5) Chart of Accounts TWHC noted that the chart of sub-accounts used within the Trust Fund was limited and recommended that additional accounts be added for significant account items to assist in the ongoing transparency and reporting capabilities of Trust Fund activity. 6) Type of Fiduciary Fund TWHC noted that on the City s Comprehensive Annual Financial Report (CAFR), the Trust Fund is reported as an agency fund, which would suggest that it is custodial only without any net assets, but in fact is administered on an accrual basis with reporting of net asset amounts (though TWHC noted that this is not a material reporting item). 7) Format of Review of Activity Report TWHC provided sample reporting statements for the Trust Fund to use that better align with financial reporting used in other similar plans. 8) Service Center Controls TWHC observed that the City has not been obtaining Standards for Attestation Engagements (SSAE) reports from its Third-Party- Administration, Mercer Benefits Administration; they recommend that the City obtain and review these reports on an annual basis. 9) Trust Purpose TWHC observed that the stated purpose of the Trust Fund is for the receipt and retention of City/member contributions to the City s Civilian Benefit Program, but employee contributions to the tax-savings accounts do not flow through the Trust Fund, and thus the City may wish to modify the purpose of the Trust Fund to reflect that these contributions are not included. 10) Reporting Background for a Government Benefit Plan TWHC noted, for information purposes only, that the Trust Fund is exempt from filing IRS Form 990 and is not an Employment Retirement Income Security Act (ERISA) plan. C. Conclusion The external audit review of the Employee Benefits Trust Fund achieved its objective of validating the Fiscal Year ending net balance in the Trust Fund as well as identifying several improvements and best practices relative to the City s Trust Fund reporting practices. With this review now complete, Personnel Department staff will now work to incorporate these into ongoing reporting to the JLMBC. Submitted by: Steven Montagna 3

4 AGREED-UPON PROCEDURES EMPLOYEE BENEFITS TRUST FUND REVIEW FOR THE CITY OF LOS ANGELES CIVILIAN FLEX BENEFITS PROGRAM AUGUST 2016

5 CITY OF LOS ANGELES (CITY) PERSONNEL DEPARTMENT AGREED-UPON PROCEDURES EMPLOYEE BENEFITS TRUST FUND REVIEW FOR THE CITY OF LOS ANGELES CIVILIAN FLEX BENEFITS PROGRAM August 31, 2016 City of Los Angeles, Personnel Department Los Angeles, California Dear Personnel Department: We have performed the procedures enumerated in our following report as agreed upon in Task Order regarding the Employee Benefits Trust Fund Review for the Civilian Flex Benefits Program (Trust Fund). This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the City s Joint Labor-Management Benefits Committee (JLMBC) and the Personnel Department management. Consequently, we make no representation regarding the sufficiency of the procedures described in our report either for the purpose for which this report has been requested or any other purpose. The procedures and the associated findings are in our report that follows. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion on the financial records of the Trust Fund. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the JLMBC and Personnel Department management and is not intended to be and should not be used by anyone other than this specified party. Respectfully submitted,

6 TABLE OF CONTENTS SECTION PAGE Executive Summary... 1 Comments and Recommendations... 2 Agreed-upon Procedures and Testing Coverage... 6 Appendix A... 7 Appendices B & C... 8 Accrual Accounting Aids Exhibit Exhibit

7 EXECUTIVE SUMMARY We were engaged to validate the net assets of the trust fund from June 30, 2011 to June 30, 2015; evaluate procedures, practices and Internal Revenue Service (IRS) compliance; and recommend improvements as more fully described in the Agreed-upon Procedures Section. Details of our findings are discussed in the Comments and Recommendations section of this report. At the end of our engagement, we were also able to analyze net assets of the trust fund at June 30, 2016, included in the table of trust fund trial balances from June 30, 2011 to 2016 at Appendix A. Summary The City of Los Angeles Administrative Code (Administrative Code) provides for the creation, in the City s Treasury, of a special trust fund known as the Internal Revenue Code Section 501(c)9 Employee Benefits Trust Fund. Clarification of the City s intent regarding creating a Section 501(c)9 organization has been separately addressed by the City. We found the Review of Trust Activity reports prepared by the Administrative Services Division (ASD) of the Personnel Department to accurately calculate net assets of the Trust Fund except for one exception at June 30, 2015 as described at Comment 3. As discussed in our report, we provided some recommendations and accounting spreadsheets to improve accrual reporting and management monitoring. The other comments and recommendations in this report assist with improving trust fund understanding, accounting, financial reporting and management monitoring. We would like to extend our appreciation to the management and employees of the City of Los Angeles for their assistance during the completion of this project. 1

8 COMMENTS AND RECOMMENDATIONS COMMENTS TRUST STATUS 1. The Administrative Code provides for the creation, in the Treasury of the City, of a special trust fund to be known as the Internal Revenue Code Section 501(c)(9) Employee Benefits Trust Fund for receiving and expending the City s and Plan participants contributions to the Civilian Modified Flex Plan. CASH FLOW 2. We reviewed the current cash flow of the Trust Fund and noted it was very good. ASD is able to transfer in the monthly benefits subsidy from the city at the start of each month. Over half of the prior month s medical costs to the carriers is not paid until the following month. We were advised that the annual benefit subsidy appropriation on a fiscal year ending in June factors the estimated benefits cost increase at the start of a calendar year. RECOMMENDATIONS Per the Executive Summary, the City is considering clarification language to the Administrative Code. Based on current Trust cash flows, we find the policy of JLMBC targeting retention of a 12.5% of monthly carrier claims payments as a net assets reserve to be prudent and adequate. While fiscal year-end receivables were generally low, we were advised that sometimes a fund s approval process could slow collection. Currently, extra Trust Fund cash from the City covers the delay. If this becomes a cash flow concern, the Trust Fund could request a deposit from a fund if amounts are commonly unpaid in excess of a month. NET ASSETS VALIDATION 3. We validated the net assets restricted for trust purposes of the Trust Fund according to generally accepted accounting principles (GAAP) and governmental accounting standards board (GASB) as agreeing with the sum of the 12.5% designated reserve and available balance on ASD s annual Review of Trust Activity Report, with the following exception: On the June 30, 2015 report, an accrued carrier liability amount of $5,441,301 labeled as July 2015 benefit coverage (earmarked for cash flow management purposes) was deducted from Trust Fund available balance. We recommend that ASD s Review of Trust Activity Report be prepared on a GAAP-accrual basis appropriate for a fiduciary employee benefit fund. Any notable subsequent cash flow items can be separately noted. At Appendix A, we provide a summary schedule of the fiduciary net assets of the Trust Fund from June 30, 2011 to ($5,441,301 has been deducted from liabilities, increasing net assets restricted for trust purposes for year ended June 30, 2015). 2

9 COMMENTS This item was not a liability (incurred expense) of the Trust Fund at June 30, Source of and Restriction on Net Assets: Proprietary funds, pension funds and employees contribute to the Trust Fund based on their allocated cost of coverage (at breakeven). The City has contributed to the fund based on actuarial and service provider estimates which have been overall in excess of needed benefit payments and administrative costs, net of interest earnings. The City also provides administrative services to the Trust Fund outside of Trust Fund costs. The net assets of the Trust Fund are restricted to trust purposes per the creation of the trust in the City Administrative Code. The net assets restricted for trust purposes balance as of June 30, 2015 represented the accumulated difference between the estimated and actual amount of revenues and expenditures from prior years. A portion of the net assets is required for working capital. ACCRUAL REPORTING 4. At the time of our review, all accrual adjustments at end of year had not been reported to the GAAP Section of Financial Reporting in the Controller s Office. (Accrual accounting is recording revenue in the year earned rather than when received and recording expenses in the year incurred rather than when paid.) At June 30, 2015, payroll withholding receivable, accrued personnel costs, and employee premiums refundable were not submitted. RECOMMENDATIONS At Exhibit 1 is a sample Accrual and Financial Position template we provided as an Excel spreadsheet to help ASD track accrual and net assets monthly. The spreadsheet also improves management monitoring to ensure completeness and accuracy and allows for regular accrual reporting to Personnel Dept. management and the Joint Labor-Management Benefits Committee (JLMBC). (Actual for June 2015; illustrative for July.) We recommend the Exhibit 1 reporting procedure be added to the Trust Fund s written procedures and that the preparer and reviewer sign the form (or similar purpose form) on a monthly basis. We recommend that ASD report all accrual adjustments to the GAAP Section (for all receivables, payables and other noncash assets and liabilities) at end of year so Financial Reporting has full balances for the Trust Fund. The GAAP Section will then have Trust Fund account balances that agree with the annual Review of Trust Activity Report. At Exhibit 2 is a sample Reconciliation of Accruals Reported to GAAP Section spreadsheet provided to ASD in Excel form to assist with its accurate certification of accruals to the Financial Reporting GAAP section of the Controller s Office. We recommend the Exhibit 2 procedure be added to the Trust Fund s written procedures and that the preparer and reviewer sign the reconciliation annually. CHART OF ACCOUNTS 5. The chart of accounts utilized by the Trust Fund was very limited. The City s FMS general ledger system that the Trust Fund utilized had flexible capabilities for setting up customized accounts using department object codes. We recommend that ASD add accounts for all significant balance sheet, revenue and expense accounts. Items to add include an account for payroll expense transfer and any other large special expenses such as special enrollment. 3

10 COMMENTS RECOMMENDATIONS We recommend that expense accounts by carrier and revenue accounts for each proprietary fund be separately set up for management analysis and audit value. We recommend no postings that display as NOT ENTERED. accounts. We recommend that payments directly from an employee be posted separately from payroll system payments for improved audit trail and management analysis. Custom account names can be set up also for the City benefit subsidy and employee trust withholding. As an objective, ASD should customize a general ledger and trial balance report within FMS that is easily readable. TYPE OF FIDUCIARY FUND 6. On the City s Comprehensive Annual Financial Report (CAFR), the Trust Fund is reported as an Agency Fund (custodial type, assets equal liabilities; no net assets). Informational only. This difference is not important. At Appendix B, we provide the definitions for a fiduciary employee benefit trust fund and an agency (custodial) fund. The Trust Fund maintains accounting information on a full accrual basis that allows reporting of net assets restricted for trust purposes. FORMAT OF REVIEW OF ACTIVITY REPORT 7. A financial reporting format closer to financial reporting seen by other flexible benefit plans may be helpful to management. SERVICE CENTER CONTROLS 8. The department has not been obtaining service provider Mercer s Statement on Standards for Attestation Engagements (SSAE) 16 report. SSAE 16 is a pronouncement by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) defining the testing of and reporting on service company compliance controls. Mercer as a service company to the City is responsible for the correct allocation of over $300 million in Trust Fund contributions received each year to the Flex Program participants benefits coverage. At Appendix C, we provide sample financial reporting statements for the Trust Fund that can help guide reporting format. We recommend the department obtain and review this report annually to determine if there has been any deterioration in Mercer s internal control. We also recommend obtaining WageWorks report. We recommend sharing these reports with the Controller s Office for its responsibility over controls. During our engagement, the October 2015 Mercer SSAE 16 report was obtained. The auditor s report was unqualified. 4

11 COMMENTS TRUST PURPOSE 9. The purpose of the Trust Fund per the Los Angeles Charter and Administrative Code (Chapter 95, Section 5.495) shall be the receipt and retention of the City's and Plan participants' contributions charged to the Civilian Modified Flex Plan participants and the City for the funding of the Civilian Modified Flex Plan. RECOMMENDATIONS The City may wish to modify the purpose of the Trust Fund to reflect the exclusion in practice of the tax savings accounts. We noted that receipts and disbursements of the tax savings accounts of the Plan (for flexible spending for healthcare, child care and commuter expenses) are handled by a third-party benefits administrator (WageWorks) and do not go through the Trust Fund. REPORTING BACKGROUND FOR A GOVERNMENT BENEFIT PLAN 10. We provide the following information related to a government benefit plan: The Trust Fund, as a government benefit plan, would generally be exempt from IRS tax exempt organization filing (Form 990) by IRS Revenue Procedure 95-48, Exercise Of Commissioner's Discretionary Authority Under Section 6033, published November 20, 1995 Also, the Employment Retirement Income Security Act of 1974 (ERISA) (Department of Labor, Form 5500 filing) generally does not cover government plans. Informational only. 5

12 AGREED-UPON PROCEDURES As summarized in Personnel Department Task Order : 1. Validate the historical net surplus/deficit of the Trust Fund on a fiscal-year ending basis, after all assets and liabilities are realized, including revenues/receipts and expenditure/expenses for fiscal years ending June 30, 2011 through June 30, Review operational procedures and practices and specify any necessary recommendations for improvements. 3. Assess Trust Fund compliance with accounting and administrative practices as they relate to Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards Board (GASB), and the Internal Revenue Code (IRC). 4. Issue a report identifying any deficiencies, limitations, and weaknesses in internal controls and recommendations for improvement. The report will also outline any risk assessment measures and responsibilities with respect for reconciling the Trust Fund account on a fiscal year basis. TESTING COVERAGE The areas of coverage on this project were as follows: Testing and analysis of Trust Fund assets and liabilities to validate net assets restricted for trust purposes. Testing and analysis of Trust Fund contributions, earnings and expenses and administrator and payroll system reporting and City budgeting and appropriations as judged important to this validation. Review of trust, plan and management documents relevant to the Trust Fund including review of JLMBC actions. Review of and discussion on the City s financial reporting of the Trust Fund and research on financial reporting trends for similar funds. Documentation and analysis of Trust Fund general ledger, receipts, disbursements and reporting procedures. Research on IRS compliance. Judgmental analysis of internal controls regarding fraud risk and financial reporting. Review of ASD accrual certifications to the GAAP section. Assembly of Appendices information and creation of the accrual aids at the Exhibits. Related inquiries, interviews and findings meetings on above. 6

13 APPENDIX A COMMENT 3: TRUST FUND ADJUSTED TRIAL BALANCES AND VALIDATION OF NET ASSETS Trust Fund for Civilian Flex Benefits Program FMS 899 Fund Validation of Net Assets - Adjusted Trial Balance Groupings June 30, 2011 to June 30, 2016 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 DEBITS Cash and pooled investments - FMS 30,576,770 33,512,080 27,696,006 26,835,170 21,344,678 30,651,967 Payroll and employee receivables 1,518,052 1,306,762 1,253,336 1,214,173 - Proprietary funds receivable 7,867,029 2,228,735 4,469,130 2,658,981 3,688,239 1,688,314 Assets 38,443,799 37,258,867 33,471,898 30,747,487 26,247,090 32,340,281 CREDITS Medical premiums payable to carriers 14,937,450 14,949,114 14,332,760 14,247,649 14,186,109 14,362,676 Accrued staffing costs 611, , , , , ,584 Accrued contractual services 510,663 55,337 96, , , ,000 Premiums refundable to employees 7,551,600 6,644,018 6,649,739 6,649,739 5,029,466 5,029,466 Liabilities 23,611,680 22,118,958 21,897,529 21,338,738 19,661,189 19,821,726 Net Assets Restricted for Trust Purposes 14,832,119 15,139,909 11,574,369 9,408,749 6,585,901 12,518,555 7

14 APPENDIX B COMMENT 6: TRUST FUND AS A NON-AGENCY FIDUCIARY EMPLOYEE BENEFIT FUND From Government Accounting Standards Board (GASB) Statement #34, Basic Financial Statements -- and Management s Discussion and Analysis -- for State and Local Governments : 70. Pension (and other employee benefit) trust funds should be used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans. 73. Agency funds should be used to report resources held by the reporting government in a purely custodial capacity (assets equal liabilities). Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. APPENDIX C COMMENT 7: SAMPLE GAAP REPORTING FOR TRUST FUND FINANCIAL STATEMENTS Memo: For additions and subtractions, statement, column(s) can be added to show conversion from cash basis receipts and expenditures from FMS to accrual basis. Amounts due from proprietary funds and due to carriers, etc. can be shown with expanded detail. Please see next page. 8

15 ASSETS Cash and investment pool Receivable from proprietary funds Employee withholdings receivable Other receivables Total Assets LIABILITIES Payable to carriers Accrued personnel costs Employee premiums refundable Total Liabilities NET ASSETS Restricted for Trust Purposes ADDITIONS City benefit subsidy Proprietary funds benefit subsidy Employee paid premiums Other adjustments Interest Income Total Additions DEDUCTIONS Benefits premiums Contractual services Personnel cost Office and Miscellaneous Change in Net Assets Net Assets beginning of fiscal year Net Assets end of fiscal year or period STATEMENT OF TRUST FUND NET ASSETS FOR CIVILIAN FLEX PLAN STATEMENT OF CHANGES IN TRUST FUND NET ASSETS FOR CIVILIAN FLEX PLAN 9

16 EXHIBIT 1 COMMENT 3: 899 Fund Employee Benefits Trust Fund Accrual and Financial Position Tracking June 30, 2015 Balance Accrual Current Current Balance period 6/30/2015 Paid Accrued Paid Adjustments 7/31/2016 Comments Trust Net Assets Restricted 15,139,909 16,192,977 1,053,068 Increase (decrease) FMS Cash & Pool Investments 33,512,080 31,500,000 Receivables Employee contributions 6/13/2015 1,518,052 (1,518,052) 0 Airport 04 7/11/2015 1,800,000 1,800,000 6/27/2015 1,800,000 1,800,000 6/13/2015 1,721,915 1,721,915 5/16/ /2/ Harbor 42 7/11/ , ,000 6/27/ ,000 (450,000) 0 6/13/ , , ,498 P&F Pension 64 7/11/ , ,000 6/27/ ,000 (100,000) 0 6/13/ ,071 48,071 City Pension 16 7/11/ ,000 6/27/ ,000 (50,000) 6/13/2015 Total Assets 37,258,867 38,337,484 memo due from funds 2,228,735 6,837,484 Continued next page 10

17 Carrier Payments Jun 2015 Permanente Kaiser first pay 10,000,000 (10,000,000) 0 Permanente Kaiser balance 1,592,658 (1,592,658) 1,600,000 1,600,000 CA Physicians (Blue Shield) 9,804,633 (9,804,633) 9,800,000 9,800,000 Delta Dental 1,421,790 (1,421,790) 1,400,000 1,400,000 Delta Dental 189,899 (189,899) 200, ,000 Standard Insurance 961,149 (961,149) 950, ,000 Standard Insurance 879,120 (879,120) 880, ,000 Standard Insurance 99,865 (99,865) 100, ,000 Contractual Mercer 55,337 (55,337) 60,000 60,000 Other 0 Staffing FY 2016 est. 40,000 40,000 accrue 40k / mo estimate FY , ,489 Employee Refunds Prudential 5,459,847 5,459,847 Anthem 419, ,348 Delta Dental 723, ,977 WageWorks 40,846 40,846 Total Liabilities 22,118,958 22,144,507 memo due to carriers 14,949,114 14,930,000 memo employee refunds 6,644,018 6,644,018 Preparer Date Reviewer Date 11

18 EXHIBIT 2 COMMENT 4: RECONCILIATION OF REVIEW OF TRUST ACTIVITY REPORT TO GAAP SECTION ACCRUALS CERTIFICATION 899 Fund Employee Benefits Trust Fund Reconciliation of Accruals Reported to GAAP Section to Review of Fund Activity Report Annual Annual GAAP Section Reported Not Excess June 30, 2015 Activity Report Auto Manual Reported to Certified/ period Report Adjustment Accruals Accruals GAAP Section Other Unreconciled Comments Receivables Employee contributions 6/13/2015 1,518,052 0 (1,518,052) 0 Airport 04 various 1,721,915 0 (3,514,925) 1,793,010 0 PPE Jun 27 for July Harbor 42 6/13/ ,749 (458,749) 0 5/30/ (457,401) 457,401 0 PPE Jun 27 for July other 0 (12,141) 12,141 0 did not trace P&F Pension 64 6/13/ ,071 (47,600) (471) 0 trivial other 0 (52,662) 52,662 0 appears to be 6/27 PPE City Pension (70,660) 70,660 0 appears to be 6/27 PPE 3,746,787 0 (4,614,138) 0 (1,518,052) 2,385,403 0 Liabilities Current payables 15,004,451 0 (15,006,043) 1,592 0 trivial Staffing FY ,489 (470,489) 0 other 0 Employee Refunds Prudential 5,459,847 (5,459,847) 0 Anthem 419,348 (419,348) 0 Delta Dental 723,977 (723,977) 0 WageWorks 40,846 (40,846) 0 22,118,958 0 (15,006,043) 0 (7,114,507) 1,592 0 Preparer Date Reviewer Date 12