Guam – The GovGuam Retirement funds unfunded liability continues to grow according to the latest audit released by the Office of Public Accountability [OPA].
The independent audit conducted by Burger and Comer P.C., found that the un-funded liability is now $1.64 billion dollars.
As a result, the government’s retirement contribution rate is 28.30% for FY 2012, 30.09% for FY 2013, and is expected to increase to 31.02% for FY 2014.
The auditors point out that the unfunded liability and the increasing contribution rate are due in part to the amortizing period set in the next 20 years. Given the expected members’ mortality, rate the amortization period may be too short and should be lengthened.
The auditors gave the retirement fund an unqualified or “clean” opinion on their financial statements. There were no “findings” identified.
The auditors note that this is the 7th consecutive year that no “findings” have been cited which they says “is a credit to the management and staff of the Fund.”
A Management leter was issued which discussedstwo prior year comments:
(1) The Fund’s preparation of the Management Discussion and Analysis, Financial Statements, footnotes to the financial statements, and all supporting schedules
(2) the DB’s funded status and unfunded liability concern the auditors, in that the annuity payments exceed contributions, resulting in the liquidation of plan net assets.