SFHSS reports $11M expected trust decline; auditors issue unmodified opinion

San Francisco — San Francisco Health Service System officials told the Health Service Board on Nov. 9 that early fiscal‑year results point to a planned drawdown of the trust and that independent auditors issued a clean opinion for the year ended June 30, 2023.

Iftikhar Hussain, SFHSS chief financial officer, said staff expect the trust to decrease by about $11,000,000 by year end based on first‑quarter experience. He said medical claims included some high claims (about $1.5 million) but dental claims were favorable and staff expect roughly $15,000,000 in pharmacy rebates over the year and about $3,000,000 in interest income tied to higher market interest rates.

Auditors from MGO, represented by partner Craig Harner and audit supervisor Yi Yang, presented results of the fiscal audit and reported an unmodified (clean) opinion on the financial statements, no significant internal‑control deficiencies rising to a material weakness, and no reportable noncompliance with laws or regulations affecting the statements. Harner said the auditor compared management’s incurred‑but‑not‑reported claims estimates (prepared by Aon) with the auditors’ own actuarial review and found no material differences.

Commissioners thanked staff for detailed reporting and moved to accept the audit; the board voted unanimously to approve the audit report.