Report 2017-116 Recommendation 14 Responses
Report 2017-116: Community Child Care Council of Santa Clara County: Because It Disadvantaged Some Families and Misused State Funds, It Could Benefit From Increased Monitoring by the California Department of Education (Release Date: April 2018)
Recommendation #14 To: Community Child Care Council of Santa Clara County
To ensure that its retirement plan participants can make appropriate financial planning decisions, 4Cs should provide the required disclosures in its retirement benefit statements, summary plan description, and annual report, and it should maintain documentation that it did so.
Annual Follow-Up Agency Response From November 2020
The State Auditor did not receive an updated response to this recommendation from 4Cs since the previous annual follow up in 2019. According to Education, 4Cs ceased operations in June 2020.
- Estimated Completion Date: Not Applicable
California State Auditor's Assessment of Annual Follow-Up Status: Resolved
Although it is unclear whether 4Cs took additional action to address this recommendation, we are classifying the recommendation as having been resolved based on 4Cs' inactive status.
Annual Follow-Up Agency Response From October 2019
The agency fully implemented a defined contribution retirement plan for all its eligible plan participants. This plan became effective July 1, 2019. The plan is in full compliance with the recommendations as set forth in the JLAC report and most importantly, is in full compliance with the Employee Retirement Income Security Act (ERISA).
Retirement plan participants were provided with the following documents on May 31, 2019:
- Plan Participant Notification - Account Access
- Letter to Retirement Plan Participants with Mutual of Omaha packet
- Summary Plan Description
Documents Submitted:
- Email sent to eligible plan participants containing the required disclosures and summary plan description as attachments
- Plan Participant Notification - Account Access
- Letter to eligible Retirement Plan Participants with Mutual of Omaha packet
- Summary Plan Description (SPD)
- QDIA Notice
- Mutual of Omaha Blackout Notice
- Mutual of Omaha - Information Regarding Retirement Account
- Mutual of Omaha - Retirement Plan Fee Disclosure Notice
- Mutual of Omaha - Account Access - Anywhere , Anytime sheet
The above referenced "Mutual of Omaha - Account Access - Anywhere, Anytime" sheet completely fulfills the referenced JLAC's recommendation # 14 which provides plan participants with access to information which will help them make informed financial decisions about their retirement accounts and savings, to include those outlined in the referenced sheet (account balance, in a safe and secure manner - anywhere and anytime).
- Completion Date: July 2019
California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented
4Cs provided documentation of the required disclosures in its summary plan description, but it did not provide evidence of such disclosures in the other items cited in our recommendation. Although 4Cs subsequently informed us that it intends to include the required disclosures in its annual report, it is not required to submit that report until 2020.
- Auditee did not address all aspects of the recommendation
1-Year Agency Response
The agency is moving forward with setting up a new retirement plan for employees that is in full compliance with the recommendations as set forth in the JLAC report. The target date for full implementation is from June to July 2019 after the required notifications have been sent to all appropriate parties.
Attachment: Letter dated April 4, 2019 from Tad Devlin of Kaufman Dolowich & Voluck, LLP
- Estimated Completion Date: June 30, 2019
- Response Date: April 2019
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
We will begin transitioning to a new plan once resolution and approval of the settlement by the Court of the federal lawsuit. (See response to Recommendation 13).
- Estimated Completion Date: May 2019
- Response Date: October 2018
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
This will be completed once 4C Council has chosen a plan option.
- Estimated Completion Date: October 2018
- Response Date: June 2018
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2017-116
Agency responses received are posted verbatim.