A Financial Audit
An Audit of the Employees Retirement System’s Employer Pension and Other Post-employment Benefit Schedules for Fiscal Year 2019
June 2020
Summary Analysis
Pension Liability Schedules
We have issued two audit reports dated June 12, 2020, related to the Employees Retirement System’s (System) pension and other post-employment benefits (OPEB) liability schedules for fiscal year 2019.
The System published our audit report as part of its Schedules, which it intends on posting on its Web site at https://ers.texas.gov/About-ERS/GASB-Requirements.
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Pension Liability Schedules
We concluded that the System’s Schedule of Employer Allocations and the columns titled net pension liability, total deferred outflows of resources excluding employer specific amounts, total deferred inflows of resources excluding employer specific amounts, and pension expense (specified column totals) included in the Schedule of Collective Pension Amounts and the related notes as of August 31, 2019, were materially correct and presented in accordance with accounting principles generally accepted in the United States of America. The Schedule of Employer Allocations and Schedule of Collective Pension Amounts are for the following defined benefit pension plans: Employees Retirement System Plan, Law Enforcement and Custodial Officer Supplemental Retirement Plan, and Judicial Retirement System of Texas Plan 2.
OPEB Liability Schedules
We concluded that the System’s Schedule of Employer Allocations for Other Post-employment Benefits (OPEB) and the columns titled net OPEB liability, total deferred outflows of resources excluding employer specific amounts, total deferred inflows of resources excluding employer specific amounts, and OPEB expense included in the Schedule of Collective OPEB Amounts and the related notes as of August 31, 2019, were materially correct and presented in accordance with accounting principles generally accepted in the United States of America.
We also issued a report on internal control over financial reporting and on compliance and other matters of the pension liability schedules and OPEB liability schedules as required by auditing standards. Our procedures did not identify any material weaknesses in internal control over financial reporting or any noncompliance with laws or regulations that materially affected the pension liability schedules and OPEB liability schedules. In addition, the major internal controls that we tested for the purpose of forming our opinions on the pension liability schedules and OPEB liability schedules were operating effectively.