a. The annual District financial audit completed by JWT & Associates. The audit had no adverse findings and concluded “In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the District an June 30, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America”. The Committee recommended accepting the report and moving the item to the full District Board for acceptance.
b. The annual 2020-21 Successor Retirement Plan audit completed by JWT & Associates. The audit noted “The accompanying financial statements have been prepared assuming the Plan will continue as a going concern. As discussed in Notes 1, 3 and 6 to the financial statements, the Plan’s funded status is at 36% of the actuarial present value of future benefits at June 30, 2021. The Plan’s sponsor, West Contra Costa Healthcare District (the District), ceased operations of Doctors Medical Center in April 2015 and filed for bankruptcy protection in October 2016. The District has reached an agreement with the bankruptcy court whereby they will make minimum annual contributions of $1,000,000 to the Plan starting in fiscal year ending June 30, 2018 and ending when the District’s financial obligation is satisfied. Based on current actuarially determined Plan liabilities and anticipated estimated earnings, distributions and expenses, the Plan is expected to be able to fund all participant liabilities.” The audit concluded “In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of June 30, 2021 and 2020, and the changes in net assets available for plan benefits for the year then ended, in conformity with generally accepted accounting principles.” The Committee recommended accepting the report and moving the item to the full District Board for acceptance.