Of course as a colleague of mine correctly pointed out on Facebook, this is not a shocker since no one accused anyone of stealing from the pension trust that I am aware. Problems at the County Owned Hospital System itself involving possible conflicts of interest? Check. Related party transactions? Check–Check–Check.
You gotta wonder at this point if the taxpayers are getting any return on their time and billing investment in Mr. Guice and the bean-counters cross checking every transaction in the pension trust, which SRHS stopped contributing to years ago despite sending account statements to plan participants indicating the hospital was funding the plan.
All that said Guice did impart one piece of very useful information in the last paragraph of the release and this information actually should have been released when the question was first brought up, but instead it was saved for when the litigation really heated up:
Currently, the cost of defense of various parties, which does not include Jackson County, in the number of pending lawsuits is being paid by SRHS’s Officer and Director Liability insurance carrier and is not being charged to the Pension Trust. The policy in question is a “wasting” policy, thus the cost of defense reduces the policy limits of one million dollars.
That “wasting” term holds great meaning for the uninitiated. First things first though. An enterprise buys D&O insurance for the same reason smart CPAs and lawyers buy Professional Liability insurance and it is not to pay a third party claim in case we mess up big. Rather, you buy the policy to pay for the legal defense when you get sued.
All these types of insurance policies come in two flavors, one has a combined limit for the payment of legal fees, claims expenses and judgments. The other, which would be considered more of a Cadillac policy that has separate limits for legal fees and the costs of claims expenses and judgments. SRHS has the former meaning every dollar that is spent on lawyers reduces the policy limits available to pay claims.
It is at this point I feel compelled to point out that a Hospital with over $300,000,000 a year in revenues needs a D&O insurance policy with much higher policy limits than a measly million dollars. What that should tell everyone is management at the hospital system never intended the policy to be anything other than a way to pay the lawyers if they fouled up. I would argue it also represents a massive failure of risk management at the Hospital.
I understand D&O insurance is pricey, especially in situations where there is also a related pension trust involved, but like all the other failures surrounding the SRHS disaster, going cheap on the D&O insurance exhibits another corner that was cut by an overpriced management team that was only fooling themselves, beginning with cooking the Allowance for Bad Debts.
In any event this is what you folks in Jackson County are paying for via Gulf Live:
The Jackson County Board of Supervisors continues to work to find a solution to the needs of the Singing River Health System Employee Pension Trust beneficiaries while acting within the confines of state law and while protecting all citizens of Jackson County from a tax increase. The Jackson County Board of Supervisors, through its special counsel and the engaged experts, continues to study the profitability and productivity of Singing River Health System. The second phase of the LaPorte Profitability and Productivity (accounting firm) study of the operations of Singing River Health Systems should be available to the Board of Supervisors this month.
While certain nonmaterial expenses are still under review, the examination of the Singing River Health Systems Employee Pension Trust to date (not to be confused with the review of Singing River Health Systems) reveals no evidence of theft, embezzlement or pilfering from the Trust Assets. The examination of the Trust Assets reflect that commencing mid 2009 Singing River Health Systems ceased making employer contributions to the trust, thus leaving the trust underfunded. It appears that neither the beneficiaries of the trust, nor the public, nor the Board of Supervisors were advised that Singing River Health Systems had stopped making employer contributions. Singing River Health Systems was required by the Plan to make such additional contributions as was necessary to provide the benefits of the Plan in addition to those made by the plan members.
There remain questions as to the investment of Trust Assets, particularly in 2008 and 2009. However, the value of the trust Assets was certainly negatively affected by the economic failures of late September and October 2008. The Employers Retirement Plan and Trust suffered a 25% investment loss in 2008 according to FiduciaryVest, the investment advisor for the Trust hired by Singing River Health Systems. (in December 31, 2007 the trust value was $150,844,693 and at the end of calendar year 2008 the Trust value was $107,179,850 that value increased to $124,768,309 by December 31, 2009). The Singing River Health System Board of Trustees appoints Pension Trustees to oversee the management and investment of the Pension Trust. FiduciaryVest provided advice and quarterly reports to the Pension Trustees. These reports were not made available to third parties.
Additionally, there is no evidence that any senior officer of Singing River Health Systems withdrew their individual contributions to the pension trust in anticipation of or consistent with the failure of SRHS to make employer contributions to the Pension Trust.
Currently, the cost of defense of various parties, which does not include Jackson County, in the number of pending lawsuits is being paid by SRHS’s Officer and Director Liability insurance carrier and is not being charged to the Pension Trust. The policy in question is a “wasting” policy, thus the cost of defense reduces the policy limits of one million dollars.
This report is really no surprise. I thought it was unlikely that actual “theft” or “embezzlement” from the Pension Fund occurred. Probably a waste of money to have this group spending so much time looking for that. The problem is SRHS has been in such a dire financial condition, it cannot afford to fund the plan. That’s a big difference.
This statement in the report “It appears that neither the beneficiaries of the trust, nor the public, nor the Board of Supervisors were advised that Singing River Health Systems had stopped making employer contributions. ” looks like a classic defer the blame comment to try and distance the BOS. The BOS is presented the annual audited Financial Statements for SRHS every year. In these Financial Statements going back to 2009, there are detailed “notes” in the later part of the report that describe various accounting matters – one of which is pension plan funding (I think around Note 9 or 10). In there it shows no contributions where made my SRHS. So technically the BOS and anyone who choose to look through the Financial Statements could see (these are made publically available). I said “technically” because most people who aren’t financially savvy (which I assume would include the BOS) would not necessarily know to look there or understand what these notes are saying. But at the end of the day, the BOS is presented with the FS’s and should be able to understand what they mean – if not, hire someone who can interpret it for them.
Now Guice and his group have kicked the can further down the road to deliver the real bad news of the continuing financial viability of SRHS itself. Interesting he said within the next month. Maybe they are hoping for a rabit out of the hat and announce something positive before the August election. Of course this is taking way longer than it should for any competent CPA. There are only so many scenarios that can play out. I guess we shall see what comes next.
Hard to make a pig look hot like Christine Jenner, but that’s what you do when a bunch of important people are forced to admit their lemonade stand help has been caught pissing in the lemonade.
Statement sez in part:
The examination of the Trust Assets reflect that commencing mid 2009 Singing River Health Systems ceased making employer contributions to the trust, thus leaving the trust underfunded. It appears that neither the beneficiaries of the trust, nor the public, nor the Board of Supervisors were advised that Singing River Health Systems had stopped making employer contributions. Singing River Health Systems was required by the Plan to make such additional contributions as was necessary to provide the benefits of the Plan in addition to those made by the plan members.
Statement does not address a number of issues, including:
1. Whether any of the Jackson County Supervisors (or anyone employed by them) knew that the evidence of non funding of the plan by SRHS was documented in publicly available audit documents (EMMA).
2. Whether there was any discussion/notification of the Jackson County Supervisors (and their employees) of the SRHS decision to end the participation of new employees in the existing defined benefit plan and move to a defined contribution plan. It seems like one would want to see a study and projections on this from qualified consultants to understand the impacts and costs associated with such a decision.
Like the song says “I got some ueeless but important information”. Guice is trying his best to prove McKay’s claim of ignorance for use by all of the board members. The county has a CFO or comptroller who is a CPA and once worked for the Ms.Office of the State Office as an auditor. Why did he not look at the SRHS financials on behalf of the JCBOS? In the end the SRHS retirees will pay into the pension funds again due to an increase in property taxes along with all other owners of real estate in Jackson County. They should consider selling the SRHS to a private operator before all of the remaining doctors leave. One thing we have learned that is useful and important information is the fact that all that currently who hold office on the JCBOS are not capable of performing the duties they were elected to complete. Sad but true but in the end John McKay was correct.
That song is a Mac McAnally masterpiece. The comptroller you mention, Josh Eldridge, is running for Chancery Clerk. He was aboard the Silver Dollar that day with McKay and current Chancery Clerk Terry Miller. http://www.sunherald.com/2012/12/22/4373641_dmr-charters-fishing-trips-in.html?rh=1
Jimmy Buffett does a good version on his new album. http://www.youtube.com/watch?v=AIqSlnGzHpE.
As for the “report”, obviously embezzlement etc should be looked at with everything else that’s going on, but to present it as some momentous update is just more delay and dog wagging. What we want to hear about is self-dealing, poor investments, fraud, books-cooking and all of the other things that have actually been alleged. Guarantee we won’t hear about any of that until after primaries, if at all.
Prescient as that’s tomorrow’s music post.
I find it interesting that at same time of the “economic downturn” that cost my pension plan $50,000,000 that Chris Anderson was building, spending, and making acquisitions like he had the key to Fort Knox. Very interesting
The fact remains that SRHS had a fiduciary duty to make contributions to the plan and good ole Chris and fellow brothers FAILED to do so. It is easy to understand.
If, and this is the big If, Kevin Holland and the others had had their way last November, the plan would have been terminated and SRHS would be free of that debt. Thanks to my friend Cindy and her attorney , Earl, SRHS was prevented from doing that.
And it is not just the retirees who are upset. Employees are very upset. I have heard rumors that some have been threatened with termination if they dare file suit! Oh my!
Well, Judge Hilburn will be back in town next week on the 12th. Sure to be interesting! Yall keep up the great reporting!
>>”Additionally, there is no evidence that any senior officer of Singing River Health Systems withdrew their individual contributions to the pension trust in anticipation of or consistent with the failure of SRHS to make employer contributions to the Pension Trust.”<<
Note this is not saying Anderson, Taylor or anyone else did not cash out of the pension plan when they left SRHS; only they did not cash when SRHS stopped paying into it.
Thanks SRHS Watch for the insight. Josh Eldridge will certainly not get my vote come August 4th for Chancery Clerk. It appears he’s in bed with the crony crowd of John McKay.
I think if McKay were to be a female I would swear “her” maiden last name would have been Walker.
http://srhswatch.org/
Holy Hotair Balloons Batman,
These hot air elephant balloons with Pinocchio trunks launched by the bafoons will not stay airborne long but will either wildly be blown off course and strike some power lines or suffer loss of fuel/hot air and crash.
As these big ass elephants continuously and arrogantly deflect, deny and damn the torpedoes but big game democratic ivory hunters will eventually bring these mothers down.
They can keep the ivory as I’m more interested in a public roast /barbecue /Tony Chachere fryin’ of elephant mountain oysters in Cumbest Park. Hmmmm , finger lickin’ good!
Let’s go back to October 2014… Holland and Bond try to terminate the plan quietly till one of their own finds out and in full conscious blows the friggin whistle
The questions then, as it still remains. 1. Why did you stop contributing to the pension while buying physician practices, building big unnecessary clinics and health plex , and creating sr level leadership jobs for some many undeserving people. 2. Who authorized the budgets approved to engage in such wild spending 3. Why did Sr Leadership along with BOT decide it was in the émployees and retirees best interest to lie to them about pension contributions and thought it was ok to send out notices in the US Mail stating lies. And lastly when will Chris and Kevin be pitted against each other in a court of law so we can get to the real truth?
Mo Money…For months I have been asking basically the same thing. Why is it so hard to get these simple answers!! I’m sure any of us would have found the answers long ago…for free! As for “Slabbed”..keep shaking it all up..I love you!!
Re read the Sun Herald article on the DMR free tax paid fishing trips. Mice Wiggins claiming he had no knowledge and did nothing wrong receiving free benefits at tax payers expense. McKay denying wrong doing by having his grandkids benefit at taxpayers expense. Now McKay is hiding behind the skirts of the SRHS report like a frightened little girl because the taxpayers are about to hold a public audit of his ethics. See you in August.
While the article is good the individual comments on those Sunherald articles were much better. I think the newspaper felt people were not reading the articles but instead going straight to comments so the disallowed all comments except thru Facebook. Now all is dull. Still a good reminder of arrogance.
Holy Freakin’ Phony Baloney Batman,
Comparatively speaking, the SRHS Investigational Committee and especially Mr. “Juicy’s” ( i.e Justice Earl Warren) “supreme” BS asinine investigation and phony search for ” blind” and total impartial truth makes the Warren Commission’s Report on the Kennedy assassination appear gospel and biblical.
Slabbers keep knocking and da’ door will be opened or come August and da’ trap door will open and they will drop into the polluted waters of the politically unemployed.
Monday afternoon on WLOX TV, JCBOS announces they may be looking at funding the pension fund 90%. BS! I don’t believe a thing these lying sacks of crap deliver.
If this is really true, what took them so long?
Maybe they were looking at election time just around the corner and things do not look real well for any of them. I know I will not be voting for my current supervisor and would be willing to bet, not a single SRHS retiree will be voting for their District Supervisor. What about current workers at SRHS?
But next to getting the pension funded 100% is finding out where the pension money went, by whose orders, get rid of the current lawyers of SRHS and for sure fine tooth comb who is receiving all these hospital contracts. I’m sure there are other parts of SRHS that need to be scrutinized.
This is far worse than DMR and they are no Sunday School entity!
From the slabbed twitter feed minutes ago this from Miss Press:
Jackson County opposes SRHS pension solution, plans to tell all about system’s financial dilemma
This statement within kind of jumps out as noteworthy imo:
PASCAGOULA, Mississippi — Jackson County supervisors are ready to tell all in the Singing River Health System failed pension case that has left hundreds of retirees and employees in fear for their financial futures.
In response to SRHS’ refusal to sign another memorandum of agreement with the county and the system’s recently unveiled proposal to fix the plan, the county announced it will soon release “everything which it can legally explain” to the public.
The information will be released solely through The Mississippi Press and GulfLive.com, the board said in a statement.
The reasons for this “exclusive” opportunity apparently are missing from the story at Miss Press. There also isn’t an accessible link to the actual press release at the Miss Press either (maybe I missed it.) Perhaps a followup question or two by someone with Miss Press could help clarify this?
Meantime, the Sun Herald speaks on this:
Jackson County supervisors promise full story on SRHS to one media outlet
PASCAGOULA — Jackson County supervisors announced Monday they will release “a full story” explaining everything they can “legally reveal” about what happened to the county’s hospital system financially and what caused the pension plan to fail.
They plan to do this within the next few weeks through one media outlet, not the Sun Herald.
The link to the full press release is provided by the Sun Herald, and not by the Miss Press. The explanation of the reason for the exclusion of the Sun Herald (and presumably others such as Slabbed and some of our notorious “fictions names” such as Eye Spy) from the linked Jackson County Board of Supervisor’s Press release:
“This explanation will be substantive and will be released through print media, solely through the Mississippi Press, due to the paper’s fair, accurate and responsible reporting of these matters.
Words fail right now.
link to the press release:
http://media.sunherald.com/smedia/2015/06/22/12/31/1pXEAh.So.77.pdf
I know, the Sun Herald and Slabbed, along with WLOX and WVVX have been very bad media outlets for not toting the official party line.
I personally liked the fact the MP has served the role of state sponsored media in the SRHS disaster and I don’t begrudge them the document release. We’ll have fun either way.
Also evident today is the fact the snakes have turned on each other.
Yeah between the end to the truce between the supervisors and SRHS and Guice’s statement today about the 88% plan reported by the Sun Herald the fat is in the fire so to speak.
” Then Ocean Springs attorney Billy Guice, hired by the Board of Supervisors to handle the county hospital issue, told retirees that once they do a thorough calculation of the proposal, they’ll see that by freezing the cost of living increase, the offer is really less than 88 percent of their current benefit.
“It’s 12 percent of your base income,” Guice said. “I don’t want anyone walking away thinking that this is a straight 88 percent plan … don’t think that you’re only taking a 12 percent hit.”
Yeah. I was wondering when someone was going to bring that up. The actuaries probably supplied SRHS with the real number for various age cohorts taking into account the absence of COLA. (Hint- the younger you are the worse this little detail is for you.)
I don’t know what’s worse. Living under a “fictions names” or living in the Land of Make-Believe where the politicians goal is to make you believe what they say is the truth.
I can’t help it but when John McKay starts flapping his lips the first thing I think of is him sailing the high seas with Walker reeling in red snapper, then I think of the poor SHRS retirees, then I say to myself:
NO-WAY-MCKAY!!
The Sun Herald speaks on this.
SUN HERALD | Editorial: Don’t blame them, they’re only the supervisors
RFP
I have come to realize that I am just a “Fictions Names” nobody way out in cyberland.
I think the SH hit the nail on the head when they mentioned how this was “an election year.” I also find it funny how the supervisors are avoiding the SH. For being in a public position of trust, I personally beleive it’s unethical to pick and choose media outlets when they are making a public statement. It should be a formal press release to the local media– all outlets.
Without a doubt I think the statement will be nothing more than a blame game to simply protect votes. I beleive they made a statement in regards to “poor management” in one article. My take on that comment is:
No Shit Sherlock
and
NO-WAY-MCKAY
I am thankful the SH is reporting the goods to the public. After election night I am hoping to see a big caption on the front page of the SH that says:
Jackson County Spreaks–NO-WAY-MCKAY
I wonder if they still have a beef with Pickering? 😉
Slabbed headline contest for after the election action report!
Fictions Names and Voters Use Infamous Excuse “Ignorance isn’t an excuse but in this case it is a reason” As Reason To Send Incumbent Stupidvisors Packing
Top Ten Reasons Not to Believe Anything in Miss Press Tent:
10. SRHS closed door meetings without sunshine
9. No documents can be subpoenaed by media or public
8. Getting close to the election squeeze and here come
7. The fat elephants all in line parading by holding their trunks to tails advertising the BS political big top, circus tent coming to town to entertain with
6. High wire daredevil artist Decay promising to amaze with his arrogance and confidence up high with
5. Trapeze Supervisors attempting the blind quadruple summersault with blindfolded Trustees being their sure handed BS catchers
4. TV cameras, media and reporters barred from all the circus fun
3. BigTop tent being ominously supported solely by giant outside professional hot air blowers
2. Big fat cats voluntarily jumping through flaming hoops without one hair burned
and TOP # ONE reason one should not attend this circus tent is:
1. Master of Ceremony inside is da’ Juice pouring out free Kool-Aid refills to da’ Miss Press
Locke,
I will admit I have never been a fan of the Mississippi Press and personally thought they should have folded 10 years ago.
Perhaps the Cumbest Family Dynasty and MP have what it takes to swing the pendulum back in favor of the JC Supervisors.
Eye Spy
Almost forgot, but you reminded me:
The Number # 1(a) reason not to believe and attend the Circus coming to town is:
It’s going to be one hellava Pachyderm Cumfest* raining down inside so attendees should bring/wear yo’ finest rubbers, yo’ heavy raincoats, safety glasses with windshield wipers and Rain-X umbrellas especially for the All-Political , red-white and blue closing ceremony.
*WARNING: Waiver against slip and fall accidents due to Elephant BS or their Cumfest excretions must be signed before entering.
I hope you good people saw District 4 Supervisor Troy Ross on WLOX Sunday night. It was a trip!
Then District 1 Supervisor Barry Cumbest had his say in the Sun Herald. Another blow-hard!
I wonder if these two yoyos have a license to practice law since they appear to know so much on this subject.
Where in the hell had they been while Anderson, Inc. were screwing the retirees at SRHS?
John McKay in a comment in The Dark Angel thread at scotttaylortrustee.wordpress.com. :
Another reason I support the current leadership is because it was Kevin Holland and Lee Bond (CFO) that saw fit to change auditors to the Horne Group, which uncovered the $88 million error. Many think Kevin should have known since he was Chris Andersons “right hand man”, but I find it hard to believe he would hire a new auditor and approach the BOS if he knew anything going on. .
Now maybe I misunderstand what fish John Mckay is attempting to reel in here: ” I find it hard to believe he would hire a new auditor and approach the BOS if he knew anything going on”, but at the very least it would probably be described as inarticulate words of praise.
Perhaps someone should ask Supervisor McKay a hypothetical followup question to help clarify his thoughts for the voters on this important issue. Perhaps something like:
Another reason you claim to support the current leadership is because you say that it was Kevin Holland and Lee Bond (CFO) that saw fit to change auditors to the Horne Group, which uncovered the $88 million error.
Since many think Kevin should have known since he was Chris Andersons “right hand man”, do you find it hard to believe he would hire a new auditor and approach the BOS if he knew anything was going on AND he thought either the pension deceptions and/or the $88 million accounting so called error was about to be discovered?
This version of events and timeline is inaccurate. Holland and Bond didn’t hire Horne. This was done as part of FTI Consulting’s review of SRHS. It was Horne’s preliminary preparation for the audit that the overstated A/R was discovered. It was FTI/Horne’s discovery that cast the die.
It was Holland and Bond who kept quiet until they were solid in their new positions and the old bosses were happily out of harms way. (Meet the new boss, same as the old boss.)
Only after the exit of Chris Anderson did Holland and Bond approach the JCBOS, though this problem was known of for some interval.
McKay is certainly entitled to his own opinion, but not his own facts.
Read the timeline in their own words
Thanks for the followup.
My recollection was that the timeline McKay used was also questionable.
No need for part two of my comment where I would have probably ended up referring to the post you linked to.
If I read this correctly
Breaking good news and much bigger bad news that JCBOS and SRHS failed to tell the public.
Good News: SRHS pension shortfall reduced by $37,500,000 in FY 2015.
Bad News: One time fixes left a net SRHS pension shortfall of $304,500,000 as of September 30, 2015.
Date of report: March 2, 2016.
http://www.singingriverhealthsystem.com/wp-content/themes/education-pro/pdf/retirement-audited-financial-statement_2015.PDF