SNOW HILL – Higher than expected revenues and improvements in the county’s ability to provide retiree benefits highlighted an annual financial report.
The Worcester County Annual Comprehensive Financial Report showed an $11 million surplus and improvements in the county’s ability to fund retiree healthcare benefits. Chris Hall of UHY said the county’s financial statements presented fairly.
“That’s a clean, unmodified opinion, the highest level of assurance an independent accounting firm can give,” he said.
Finance Officer Phil Thompson told the Worcester County Commissioners this week the annual report, which is filed with federal, state and bond agencies, provided an overview of the county’s finances in fiscal year 2022. He said the biggest takeaway from this year’s document was the improvements related to OPEB—other post-employment benefits.
“OPEB equates to long-term retiree health care benefits,” Thompson said.
Because of recent benefits adjustments combined with an increased level of funding, the county’s OPEB liability has decreased. Thompson said the liability had decreased by more than $22 million and effectively became an asset of $13 million in fiscal year 2022.
Similarly, the board of education OPEB liability decreased from $448 million to $151 million. Staff attribute the positive changes Worcester County has seen to two things—the commissioners’ increased investment in OPEB accounts and benefit adjustments, primarily ensuring insurance bills Medicare for retirees over 65 before billing OPEB.
“In total our OPEB liability decreased by almost $300 million in fiscal year 22, making our long-term funding goals more realistic and more attainable than ever before,” Thompson said.
Hall praised county staff for working closely with his team throughout the audit. He said the county’s financial statements presented fairly and went on to refer officials to general fund figures.
In fiscal year 2022 revenues exceeded budgeted amounts, particularly in the area of taxes, as the county budgeted $195 million and actually took in $202 million.
“We all know what the last couple years have been like in the market,” he said. “That’s reflected here.”
Commissioner Chip Bertino, referencing Commissioner Joe Mitrecic’s focus on improving the OPEB liability a few years ago, said those efforts appeared to be bearing fruit and asked if that would continue.
Thompson said in the short term continued improvements would be seen but that the bottom line depended on “what happens out there in the benefits world.”
