Pension Standards Implementation Work Group
GASB 68 Attestation Costs
Massachusetts Office of the State Comptroller
March 31, 2015
The Commonwealth of Massachusetts is looking for responses from other states regarding estimated costs for attestation services related to the GASB 68 Allocation Schedules
required for cost sharing multiple employer pension plans. Massachusetts has two cost sharing multiple employer pension plans (Teachers Retirement System and State Employees
Retirement System). The purpose is to determine if quoted costs of this attestation service are in line with other states.
If your state is comfortable providing
How many cost
such information, how much (ballpark)
sharing multiple
For each pension plan,
Are there any
are firms charging to opine and
employer pension
approximately how
special funding
prepare the attestation report for the
What is their estimate
plans does the
many participating
situations related to
Who is opining on the allocation schedules, the state’s
allocation schedules? Please indicate
of the time required to
state report in its
entities are in the plan,
any of the pension
independent auditor, another auditor, each participating
if the cost is either in total or per each
complete the
State
CAFR?
excluding the state?
plans?
entity’s auditor, or other? If other, please explain.
pension plan.
attestation reports?
Georgia
Georgia will be
The participating
All of the plans
ERS and TRS will have their allocation schedules audited by
This information isn’t known at this
In early conversations,
reporting on 6 cost
employers in each plan
being reported in
in external auditor. We are still working through the details of
time. This being the first year in
our external auditor for
sharing multiple
range from 91 to 833.
our CAFR have
our small plan schedules.
addition to not knowing 100% of the
our largest plans
employer pension
The total for all plans
special funding
necessary audit procedures makes it
indicated that it would
plans (3-ERS, 1reported is around
situations.
difficult to provide an accurate
take about a month
TRS, and two
2,250 employers.
estimate.
after they received the
additional small
allocation schedules.
plans) in the state
That was with some
CAFR.
additional prep work
ahead of time such as
mailing confirmations,
etc. Plus we do not
believe that the
external auditor would
be working exclusively
on our engagement
during that time period.
With the anticipated
issuance of the AICPA
Audit Guide, additional
procedures may be
necessary.
Idaho
Two. We report
We have approximately No
Our PERS contracts with an independent, non-state entity to
$25,000 for the PERS Base Plan;
quite extensively on 666 employers
audit their financials. The same entity audited a ‘Schedule of
$5,000 for the Firefighters’ Retirement
our PERS Base
discounting state
Allocations and Net Pension Amounts by Employer’ report
Fund
Plan; however, we
employers for the
which contained contribution and liability allocations for each
simply report that
PERS Base Plan.
employer in the system. The schedule also includes notes to
we have a
the schedules.
Firefighters’
Retirement Fund
and refer the reader
to the Plan financial
report (the state
does not employ
any firefighters).
Pension Standards Implementation Work Group
GASB 68 Attestation Costs
Massachusetts Office of the State Comptroller
March 31, 2015
The Commonwealth of Massachusetts is looking for responses from other states regarding estimated costs for attestation services related to the GASB 68 Allocation Schedules
required for cost sharing multiple employer pension plans. Massachusetts has two cost sharing multiple employer pension plans (Teachers Retirement System and State Employees
Retirement System). The purpose is to determine if quoted costs of this attestation service are in line with other states.
If your state is comfortable providing
How many cost
such information, how much (ballpark)
sharing multiple
For each pension plan,
Are there any
are firms charging to opine and
employer pension
approximately how
special funding
prepare the attestation report for the
What is their estimate
plans does the
many participating
situations related to
Who is opining on the allocation schedules, the state’s
allocation schedules? Please indicate
of the time required to
state report in its
entities are in the plan,
any of the pension
independent auditor, another auditor, each participating
if the cost is either in total or per each
complete the
State
CAFR?
excluding the state?
plans?
entity’s auditor, or other? If other, please explain.
pension plan.
attestation reports?
Iowa
One
Our cost sharing
No
Auditor of State
Our office does not have access to this Our office does not
multiple employer plan
information.
have access to this
reported approximately
information.
2,000 employers in their
2014 comprehensive
annual financial report.
Montana
Seven. Montana
The number varies
Several plans have
The Legislative Audit Division will opine on the allocation
The cost associated with opining on
N/A
has seven cost
significantly between
special funding
schedules.
the allocation schedules is unknown.
sharing multiple
plans and depends on
situations.
Our work will conform to AU-C 805,
employer plans:
membership provisions.
The state’s independent auditor, the Legislative Audit Division
Special Considerations – Audits of
Public Employee
At June 30, 2013, the
PERS-DB;
(LAD), will perform reviews of the allocation schedules.
Single Financial Statements and
Retirement System
number ranged from 25 MPORS; FURS;
However, I have not been made aware of whether a formal
Specific Elements, Accounts, or Items
– Defined Benefit
to 506.
TRS; and VFCA all
opinion or related attestation report over this specific data was
of a Financial Statement, and the
(PERS-DB);
have a special
or is intended to be provided; rather, as the lead auditor over
Auditing Interpretation at AU-C 9805.
Sheriffs Retirement
funding situation.
the plans, LAD performs this work in relation to the various
We do not plan to prepare an
System (SRS);
However, the VFCA pension plan’s financial statement amounts and disclosures
attestation report; it is our
Game Wardens
does not receive
and will tender an opinion for the same. Therefore, it is
understanding a service organization
and Peace Officers
any employer or
unclear, to me individually, what form other non-state
report is required only for agent
Retirement System
employee
employer auditors will obtain their assurance from in relation to multiple employer plans.
(GWPORS);
contributions;
the allocated items.
Municipal Police
rather, it only
Officers Retirement
receives nonSystem (MPORS);
employer
Firefighters Unified
contributions from
Retirement System
the state based on
(FURS); Teachers
fire insurance
Retirement System
premium tax. We
(TRS); and
have a PERSVolunteer
Defined
Firefighters
Contribution plan
Compensation Act
with a special
(VFCA).
funding as well.
Nevada
One
190
No
PERS Independent Auditor
$52,000
6 to 8 weeks
Pension Standards Implementation Work Group
GASB 68 Attestation Costs
Massachusetts Office of the State Comptroller
March 31, 2015
The Commonwealth of Massachusetts is looking for responses from other states regarding estimated costs for attestation services related to the GASB 68 Allocation Schedules
required for cost sharing multiple employer pension plans. Massachusetts has two cost sharing multiple employer pension plans (Teachers Retirement System and State Employees
Retirement System). The purpose is to determine if quoted costs of this attestation service are in line with other states.
If your state is comfortable providing
How many cost
such information, how much (ballpark)
sharing multiple
For each pension plan,
Are there any
are firms charging to opine and
employer pension
approximately how
special funding
prepare the attestation report for the
What is their estimate
plans does the
many participating
situations related to
Who is opining on the allocation schedules, the state’s
allocation schedules? Please indicate
of the time required to
state report in its
entities are in the plan,
any of the pension
independent auditor, another auditor, each participating
if the cost is either in total or per each
complete the
State
CAFR?
excluding the state?
plans?
entity’s auditor, or other? If other, please explain.
pension plan.
attestation reports?
New Mexico
Two
ERB 230 Participating
ERB funded by
ERB IPA
Unknown at this time
Unknown at this time
Employers
investment growth
PERA 580 Participating & contributions.
Employers
North
We have 4 cost
Teachers’ and State
Yes, we have 2
The Office of the State Auditor (OSA) audits pension plans
OSA cannot confirm how much time or However, OSA can
Carolina
sharing, multiple
Employees’ Retirement
pension plans with
included in the state’s CAFR and will also be opining on the
how much the cost was with the local
speak to the work that
employer pensions
System – 258
special funding
schedules. There will be three plans: Teachers’ and State
employer auditors on the census data.
was performed on the
plans:
situations:
Employees’ Retirement System (TSERS), the Local
TSERS plan, which
Local Governmental
Government Employees’ Retirement System (LGERS), and
has taken
1) Teachers’ and
Employees’ Retirement
1) Firefighter’s and the Register of Deeds Supplemental Pension Plan where OSA
approximately 1,600
State Employees’
System – 886
Rescue Squad
will audit and opine on schedules for each. The OSA has
hours to date for OSA
Retirement System
Workers’ Pension
contracted with an actuary to gain assurance on the actuarial
to audit that data.
2) Local
Firefighters’ and
Fund
assumptions used to prepare the schedules.
Governmental
Rescue Squad
2) North Carolina
Employees’
Workers’ Pension Plan
National Guard
To prepare for the audit of the plan in the CAFR and the audit
Retirement System
– 1,811
Pension Fund
of the schedules under GASB No. 68, OSA performed audit
3) Firefighters’ and
(Single Employer
procedures related to the underlying census data at the
Rescue Squad
Register of Deeds
Defined Benefit
employer level used to support the net pension liability
Workers’ Pension
Supplemental Pension
Pension Plan)
disclosed and allocated in the schedules. OSA performed
Plan
Plan – 100
procedures on both the 2013 liability (beginning balance) and
4) Register of
the 2014 liability. The OSA selected a sample of employer
Deeds
participants in both the TSERS and the LGERS plans based
Supplemental
on the guidance in the Whitepaper Series. (NOTE: the
Pension Plan
Register of Deeds plan is a supplemental retirement plan and
all members are also a part of LGERS). For the TSERS plan,
the OSA performed the required procedures on the census
data. For the LGERS plan, the employers are local
governments and as such, OSA instructed each employer
auditor to conduct an examination engagement in accordance
with AT section 101. NC’s local governments’ financial
statements are audited annually by independent CPAs. The
results were provided to OSA in the form of an attestation
opinion that was used as substantive evidence to support the
audit opinion on the pension plans and to support the net
pension liability that was utilized in the allocation schedules.
Pension Standards Implementation Work Group
GASB 68 Attestation Costs
Massachusetts Office of the State Comptroller
March 31, 2015
The Commonwealth of Massachusetts is looking for responses from other states regarding estimated costs for attestation services related to the GASB 68 Allocation Schedules
required for cost sharing multiple employer pension plans. Massachusetts has two cost sharing multiple employer pension plans (Teachers Retirement System and State Employees
Retirement System). The purpose is to determine if quoted costs of this attestation service are in line with other states.
If your state is comfortable providing
How many cost
such information, how much (ballpark)
sharing multiple
For each pension plan,
Are there any
are firms charging to opine and
employer pension
approximately how
special funding
prepare the attestation report for the
What is their estimate
plans does the
many participating
situations related to
Who is opining on the allocation schedules, the state’s
allocation schedules? Please indicate
of the time required to
state report in its
entities are in the plan,
any of the pension
independent auditor, another auditor, each participating
if the cost is either in total or per each
complete the
State
CAFR?
excluding the state?
plans?
entity’s auditor, or other? If other, please explain.
pension plan.
attestation reports?
North
Two
250 & 300
No
We contract for the audits of these two plans (PERS and
We amended the prior contract to do
Dakota
TFFR). The auditors of the financial statements will be also
the first audit of the allocation
opining on the GASB 68 schedules (following the AICPA
schedules. Each firm’s 2015 contract
PERS CLA RFP
whitepaper guidance).
was amended in the amount of
Number 117-14-11.pdf
$75,000. This includes auditing the
census data. We competitively bid
these for the 2015, 16 and 17 audits
(last year was the last year of the
RIO CLA RFP Number
contract). Both contracts were
117-14-10.docx
awarded to CLA. Proposals attached,
you can see the hours and dollars.
Oklahoma
4
State – 287
No
Each pension plan’s auditor
Unknown – each pension plan
Unknown
Police – 137
handles.
Firefighters – 615
Teachers – 607
Pension Standards Implementation Work Group
GASB 68 Attestation Costs
Massachusetts Office of the State Comptroller
March 31, 2015
The Commonwealth of Massachusetts is looking for responses from other states regarding estimated costs for attestation services related to the GASB 68 Allocation Schedules
required for cost sharing multiple employer pension plans. Massachusetts has two cost sharing multiple employer pension plans (Teachers Retirement System and State Employees
Retirement System). The purpose is to determine if quoted costs of this attestation service are in line with other states.
If your state is comfortable providing
How many cost
such information, how much (ballpark)
sharing multiple
For each pension plan,
Are there any
are firms charging to opine and
employer pension
approximately how
special funding
prepare the attestation report for the
What is their estimate
plans does the
many participating
situations related to
Who is opining on the allocation schedules, the state’s
allocation schedules? Please indicate
of the time required to
state report in its
entities are in the plan,
any of the pension
independent auditor, another auditor, each participating
if the cost is either in total or per each
complete the
State
CAFR?
excluding the state?
plans?
entity’s auditor, or other? If other, please explain.
pension plan.
attestation reports?
Pennsylvania Pennsylvania
For SERS, there are
For the SERS plan
The SERS plan auditors are opining on the SERS allocation
The Attestation Report the
The Commonwealth’s
reports two cost
103 participating
there are no special schedules, and the PSERS plan auditors are opining on the
Commonwealth has received is not
independent audit firm
sharing multiple
employers, of which 54
funding situations.
PSERS allocation schedules.
specifically related to the allocation
prepared an estimate
employer pension
are considered part of
For the PSERS
The Commonwealth’s independent auditors are performing
schedules that will be provided by the
of 190 total hours to
plans in its CAFR.
the primary government plan, the
attestation engagement and opining on the completeness and
Plans; as discussed in Question 4
complete the
One plan, the State of the Commonwealth,
Commonwealth
accuracy of the pension related census data the
above, the allocation schedules
Commonwealth’s
Employees’
and the 54 primary
pays 50% of
Commonwealth provides to SERS, and the amount of
provided by the Plans will be covered
attestation engagement
Retirement System
government employers
various non-school
contributions the Commonwealth sends to the SERS plan on a in the opinion issued by the Plan’s
and issue the
(SERS) is
total approximately 83% entities’
weekly basis.
auditors.
associated report.
established for
of the total contributions contributions, which
Please note that our
Commonwealth
coming into the plan.
is considered a
attestation engagement
employees; the
For PSERS, there are
special funding
was not related to
other, the Public
789 participating
situation.
opining on the
School Employees’
employers.
allocation schedules,
Retirement System
as noted in question 4.
(PSERS), the
Commonwealth
contributes to as a
non-employer.
Attestation
procedures were
performed only for
the SERS related
census data.
Pension Standards Implementation Work Group
GASB 68 Attestation Costs
Massachusetts Office of the State Comptroller
March 31, 2015
The Commonwealth of Massachusetts is looking for responses from other states regarding estimated costs for attestation services related to the GASB 68 Allocation Schedules
required for cost sharing multiple employer pension plans. Massachusetts has two cost sharing multiple employer pension plans (Teachers Retirement System and State Employees
Retirement System). The purpose is to determine if quoted costs of this attestation service are in line with other states.
If your state is comfortable providing
How many cost
such information, how much (ballpark)
sharing multiple
For each pension plan,
Are there any
are firms charging to opine and
employer pension
approximately how
special funding
prepare the attestation report for the
What is their estimate
plans does the
many participating
situations related to
Who is opining on the allocation schedules, the state’s
allocation schedules? Please indicate
of the time required to
state report in its
entities are in the plan,
any of the pension
independent auditor, another auditor, each participating
if the cost is either in total or per each
complete the
State
CAFR?
excluding the state?
plans?
entity’s auditor, or other? If other, please explain.
pension plan.
attestation reports?
Washington
1. Washington has
Excluding the state,
I believe there is
The State Department of Retirement System’s (DRS)
Please contact DRS directly with
Our time budget per
14 cost-sharing,
there are 1,148
one special funding independent auditor is opining on the allocation schedules.
questions about its contract with its
employer (site visit and
multiple-employer
participating employers. situation.
DRS has contracted with the State Auditor’s Office to conduct
independent auditor.
attestation report
pension plans
Employers may
census data testing at state agencies and local governments.
preparation) is
reported in its state
participate in multiple
The testing sample was provided by DRS’s independent
approximately 40
CAFR.
plans. Participation per
auditor.
hours. This is an
plan ranges from
average based on
approximately 45 to
consultation with
765.
DRS’s independent
auditor. Depending on
the size of the
employer, actual
ranges from 30 to 80
hours.
Wisconsin
1
1,400+
No
The state’s auditor is opining on the allocation schedule. The
Our office does not have that
Our office does not
Wisconsin Legislative Audit Bureau is the state’s auditor.
information.
have that information.