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Item 4.b.
F--1-448�411C-S0
September 3, 2024
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RETIREE BILLING AUDIT FINDINGS
Please see attached memo detailing retiree billing audit findings. Staff will be available for questions.
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility
ATTACHMENTS:
1. Retiree Billing Audit Findings
September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 39 of 50
Page 2 of 2
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CENTRAL CONTRA COSTA
SANITARY DISTRICT
September 3, 2024
TO: ADMINISTRATION COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
FROM: TEJI O'MALLEY, HUMAN RESOURCES AND
ORGANIZATIONAL DEVELOPMENT MANAGER
SUBJECT: RETIREE BILLING AUDIT FINDINGS
Attachment 1
This memo is to provide the Administration Committee with information related to a
recent audit that was conducted related to medical premium billing for all District
retirees. The purpose of the audit was to ensure that the retirees that owe a portion of
their medical insurance is being billed correctly via our third -party administrator.
The audit has been completed and it was discovered that twelve retirees were not being
billed correctly. Specifically, these retirees were subject to the District's "Tier II" benefit
level at the time of retirement. Tier II retirees do not start paying a portion of their
medical premiums until they reach the age of 65 and become Medicare eligible. These
twelve retirees retired from the District when they were under the age of 65 and their
billing should have started when they enrolled in Medicare. Due to the transition of the
District's medical plans to CaIPERS and the transition to the new Oracle system, there
was no automatic initiation to ensure that the third -party administrator began the billing
process.
The missed medical premium billing for the twelve retirees amounts to $72,398.48. Staff
has consulted with labor counsel to understand options that might be available to the
District regarding these amounts owed to the District. Counsel stated that the District
has no option other than to recoup the money owed to the District but could provide
extended time frames for full repayment. Staff will reach out to each of the affected
retirees to discuss payment options.
Additionally, staff has developed and implemented standard operating procedures to
avoid any oversights in the future.
September 3, 2024 Regular ADMIN Committee Meeting Agenda Packet - Page 40 of 50