Deferred Pension Liability Affects Financial Statement For The City Of Seneca

(Seneca, SC)—————-During their Work Session and Special Called Council Meeting Tuesday night, Seneca City Council was presented and later approved the city’s Audit Report from Mike Stancil of Stancil, Cooley, Estep and Stamey. 

Even with receiving good news in regards to the city’s financial health and liquidity, the audit revealed $54 million dollars in liabilities, the majority of which is the deferred pension liability in regards to state retirement which amounts of $20 million dollars. 

Scott Moulder, City Administrator for Seneca, said that they can have all the concern they want but the decision was made and things are not going to change in regards to local governments being required to count of that pension liability “on their books instead of having that at the state level.” 

Moulder says the requirement does have a significant negative impact on the financial statement for the city of Seneca when one sees a $19 million to $20 million dollar liability, which affects the net position, therefore looking like an expense to the city’s asset liability balance and making the city look like it has a much lower net worth. Moulder said it is important to make sure that the city’s audits are in good standard with that liability on the books.