Pension Audit, Women's Empowerment Day at the Capitol and more... 

April 20, 2014
CR Crop
Office of the City Auditor
1 Frank H. Ogawa Plaza, 4th Floor
Oakland, California 94612
(510) 238-3378

Dear Oaklanders,

 

Today my Office released the Pension Audit Report, which examines Oakland's $1.5 billion unfunded pension liability and cautions City leadership on the need for a comprehensive stakeholder driven solution. The report chronicles a likely future where the City is unable to meet both critical service delivery levels and pension obligations but more importantly, I hope it initiates immediate action. To read the report, please click here.

 

WOMEN'S EMPOWERMENT DAY AT THE CAPITOL

Join me on Monday, May 12 in Sacramento for California Women Lead's 4th annual Women's Empowerment Day at the Capitol, a one-day event designed to empower women interested in gaining the skills and tools needed to be leaders in their communities. The lunch keynote speaker is Karen Skelton, CEO and Editor-in-Chief of The Shriver Report, and session topics include empowering your leadership network and empowering your voice - being effective in the social media world. Immediately following the day's session, guests will be joined by members of the capitol community, including members of the state legislature, at the Empowered Women Leaders Reception. For more information, please click here.

 

A BUSY SPRING

In the next three months, look for the release of these audits and follow-up reports from the City Auditor's Office:

  • Limited Public Financing Act: November 6, 2012 Election
  • Measure D Baseline Spending for Children & Youth Services: FY 2010-2011 & 2011-2012
  • Measure D Baseline Spending for Children & Youth Service: FY 2009-2010
  • CEDA Loans Receivables Follow-Up Report
  • Non-Interference in Administrative Affairs Follow-Up Report
 
Committed to serving you with the utmost integrity,


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COURTNEY A. RUBY, CPA, CFE
City Auditor

 
NEWS RELEASE Tree Red
Office of the City Auditor  
City of Oakland 
____________________________________________________________________________________
FOR IMMEDIATE RELEASE:
April 20, 2014

 

                                                                                     

Audit Warns City Leaders of Pension Insolvency
Pension audit examines Oakland's $1.5 billion unfunded pension liability and cautions City leadership on the need for a comprehensive stakeholder driven solution.

 

OAKLAND, Calif. (April 20, 2014): Today, Oakland City Auditor Courtney Ruby released the Pension Audit Report, which examines Oakland's $1.5 billion unfunded pension liability and chronicles a likely future where the City is unable to meet both critical service delivery levels and pension obligations.

"Oakland has done what it can to improve management of its pension obligations - but these actions fall far short of what is needed," said Auditor Ruby. "While we are just one story of a greater statewide problem, Oakland is both 100 percent responsible for solving this financial dilemma and 100 percent accountable if it does not."

"This is not merely a cash flow problem - it's a solvency issue. There is simply not enough money going in to pay what's going to go out," said Ruby. "Unfortunately, there is no prefabricated solution to pension reform. It will require Oakland to lead on an issue that requires all parties to come to the table and be willing to find a long term solution."

The audit identified many contributors to Oakland's current predicament. Expansive and generous pension promises during the dot-com boom, such as lowering the retirement age and retroactive benefit increases, as well as other economic factors, like changes to actuarial models projections and an aging workforce, are just a number of factors adversely affecting Oakland's plight. The audit also noted that Oakland's hands are tied by current state law and CalPERS policies.

"To move forward, Oakland's leaders, in collaboration with stakeholders, must plot a path to a fair and predictable pension system," said Auditor Ruby. "If not, Oakland will not likely be able to meet its future obligations without radically changing the manner, means, and breadth of City services." 

The report can be found at: http://www.OaklandAuditor.com

ABOUT OAKLAND CITY AUDITOR RUBY
City Auditor Courtney A. Ruby, CPA, CFE, took office in January 2007 and was re-elected November 2, 2010. Performance audits of Measure D and a recommendation follow-up for CEDA Loans Receivables are in progress. Earlier audits reviewed Councilmember Interference in Administrative Affairs, the City's Parking Ticket Management, Oakland Police Department's technology management, the City's hiring practices, funding for children and youth services, library services, the CEDA and PWA receivable series, the Public Works Agency, and the grant management for the Measure Y Violence Prevention Programs. In July 2013, an Association of Local Government Auditors peer review team found the Office of the City Auditor met the highest government standards in performance auditing. Visit: www.OaklandAuditor.com to learn more about Oakland's Office of the City Auditor.  
 

 

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