Of the four recommendations we reviewed for this follow-up report, the Denver Employees Retirement Plan fully implemented two recommendations and it has yet to act on the other two.
For the two fully implemented recommendations, the plan’s managers clarified several assumptions.
However, regarding the two other recommendations, the Denver Employees Retirement Plan did not adopt an amortization policy for future benefit increases and it did not include a full development of the proposed budgeted contribution rate for the upcoming year in its valuation reports.
At the time of the original report, Bolton Partners recommended the plan’s actuary review any assumptions — such as unused sick and vacation leave — that were not reviewed in the 2018 experience study. Managers of the Denver Employees Retirement Plan reported at that time that the next experience study would take place in January 2023, consistent with the historic five-year schedule. As a result, we will review the status of this fifth recommendation at that time.
December 2, 2021
In keeping with generally accepted government auditing standards and Auditor’s Office policy, as authorized by city ordinance, the Audit Services Division has a responsibility to monitor and follow up on audit recommendations to ensure city agencies address audit findings through appropriate corrective action and to aid us in planning future audits.
In our follow-up effort for the “Denver Employees Retirement Plan Actuarial Valuation” audit report completed by Bolton Partners Inc. and issued in November 2019, we determined the Denver Employees Retirement Plan fully implemented two of the four recommendations we reviewed for this follow-up report. We cannot determine the implementation status of a fifth recommendation until after the regularly scheduled experience study is completed in 2023. Therefore, we did not review it in this report. The other two recommendations were not implemented, so the Audit Services Division may revisit these risk areas in future audits.
The Highlights page in this report provides background and summary information about the original audit and the completed follow-up effort. Following the Highlights page is a detailed implementation status update for each recommendation.
I would like to express our sincere appreciation to the personnel at the Denver Employees Retirement Plan who assisted us throughout the audit and the follow-up process. For any questions, please feel free to contact me at 720-913-5000.
Timothy O'Brien, CPA
AUDITOR TIMOTHY O'BRIEN, CPA
Denver Auditor´s Office
201 W. Colfax Ave. #705 Denver, CO 80202
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