Sunday, December 09, 2012
The City of San Angelo stuck to their original 2011-2012 budget for health insurance, long after City Council approved an exclusive provider arrangement with Aetna - San Angelo Community Medical Center. Finance staff surprised City Council with a last minute budget amendment in September. The amendment had been prepared by staff in early July.
However, the amendment wasn't sticky enough to make the 2012-2013 budget, reflected by the UT burnt orange colored notes in the image below. Red lines lead to numbers in Council's approved budget amendment. Green boxes and lines show the savings promised relative to the prior year. Blue boxes are where the city has told a number of stories. On September 18th Human Resources Manager Lisa Marley presented a fund balance of nearly $1.6 million.The image below shows virtually no change in fund balance from the prior year.
I see $1.7 million unaccounted for in the year ended 9-30-12. Of that, nearly $700,000 made it into fund balance. Another $200,000 went to higher reinsurance costs. That leaves roughly $800,000 in premiums, paid by the city, employees and retirees, unaccounted for by my estimation. That doesn't mean anyone absconded with it.
Add this to the list of things needing audit at City Hall. Employees and retirees should know how their premium contributions are being spent or saved.
For better viewing, click on an image to make it larger.
by PEU Report/State of the Division at 3:48 PM