Pension liabilities problematic for BCDA

Certified Public Accountant Don Wallace goes over the results of the most recent audit with members of the Bear Creek Development Authority at their recent quarterly meeting.

HODGES     -  The Bear Creek Development Authority is facing an indebtedness of $785,000 related to its pension liabilities paid to the state for retirees, a problem faced by other entities and governmental agencies, and a problem without a solid solution.
Certified Public Account Don Wallace visited the Aug. 18, BCDA board meeting to present his findings of the system’s audit report ending for fiscal year Sept. 30, 2022.
When discussing the statement of net position with the board, Wallace stated that cash balances are good, showing about $540,000 between cash and CDs.
“The only area that would be of interest, if someone was digging into it,  is our pension liability,” Wallace informed the board.
“You had a negative pension liability of $785,000,” Wallace pointed out. The statement of net position showed RSA (Retirement Systems of Alabama) pension non-current liabilities at exactly $785,845.
“That is something you really can’t do anything about,” responded BCDA Administrator Shannon McKinney.



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