Report 2017-113 Recommendation 5 Responses

Report 2017-113: South Orange County Wastewater Authority: It Should Continue to Improve Its Accounting of Member Agencies' Funds and Determine Whether Members Are Responsible for Its Unfunded Liabilities (Release Date: March 2018)

Recommendation #5 To: South Orange County Wastewater Authority

SOCWA and its members should amend the current JPA agreement to expressly state whether members will be responsible for SOCWA's retirement benefits liabilities in the event it is not able to meet those obligations and then it should inform plan participants of that provision.

Annual Follow-Up Agency Response From October 2019

Please reference the letter provided to miket@auditor.ca.gov with additional references to support compliance with this recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented


1-Year Agency Response

Distribution of obligations for Unfunded Liabilities based on Actuary recommended methodology were included in the SOCWA Year Ended June 30, 2018 Financial Statements and Supplemental Financial Schedules received and filed by the SOCWA Board of Directors. See attached pages showing Board Approved Allocations. Meetings to consider revision to the JPA Agreement are planned in the coming period up to September 2019.

California State Auditor's Assessment of 1-Year Status: Partially Implemented


6-Month Agency Response

SOCWA has hired new general counsel who are actively reviewing the SOCWA JPA and associated project committee agreements. SOCWA has embarked on the consideration of revision and amendment of the SOCWA JPA as per the recommendation complete by September 2019.

California State Auditor's Assessment of 6-Month Status: Pending


60-Day Agency Response

We will begin consideration of revision and amendment of the SOCWA JPA as per the recommendation by July 2018 and complete by September 2019.

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2017-113

Agency responses received are posted verbatim.