audits

PERAC announces a revised audit approach approved by the Commission on April 10, 2019, targeting high-risk areas and avoiding duplication with private audits. Following national trends, PERAC will tailor audits based on each system's risk level and will increasingly accept private audit work in lieu of segments of the PERAC audit — a practice authorized by law and regulation but previously underutilized. Risk factors include staff stability, prior audit findings, asset management practices, ongoing compliance, and timely filing of accounting information. Retirement boards are encouraged to retain private auditors for annual reviews. PERAC anticipates the revised approach will produce more frequent, targeted evaluations with less burden on boards.