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Audit Objective

Determine whether District payments for health insurance buyouts were cost-effective, supported by collective bargaining agreements and correctly calculated.

Key Findings

• Health insurance buyouts may have saved taxpayers approximately $100,066 during our audit period.
• Three employees received $34,738 in health insurance buyouts that they may not have been entitled to during our audit period.
• The health insurance buyout calculations are not reviewed before payment.

Key Recommendations

• Consult with District legal counsel about the intent of the health insurance buyouts outlined in the CBAs and determine whether changes should be made to the buyout calculations.
• Review and approve the health insurance buyout calculations before payment.

District officials generally agreed with our recommendations and indicated they planned to initiate corrective action. Appendix B includes our comments on issues raised in the District’s response letter.