We have completed a limited review of pension costs charged to Federal programs
in Ohio for the period July 1, 1993 through September 30, 1994. The purpose
of the review was to determine whether pension costs charged to grants and contracts
were in compliance with Federal regulations, generally accepted accounting principles
(GAAP), and actuarial standards.
We determined that excessive charges to Federal programs have resulted from delayed transfers of pension contributions to the Public Employees Retirement System (PERS). The financial impact was determined to be approximately $380,000 annually on Federal programs administered by the State of Ohio.