Accounting firm pays Jackson County millions over failed Singing River pension plan
KPMG accounting firm will pay a $20 million settlement to Jackson County over the failed pension plan at county-owned Singing River Health System, a news release says.
The county netted $16 million after attorney’s fees from the settlement. The money has been placed in an interest-bearing account, Chancery Clerk Josh Eldridge said. The Jackson County Board of Supervisors has not yet decided what the funds will be used for, he said.
The settlement funds belong to the county, not the county-owned health system or pension plan. The settlement will compensate the county for expenses related to fallout from the failed pension.
KPMG audited health system pension plan
The plan’s 3,200 members settled a case with SRHS that continues pension payments, although about 200 plan members objected to the agreement. The settlement provides reduced pension payments to retirees.
KPMG audited the pension plan from 2008-2012. Plan members with the health system, which operates Singing River Hospital in Pascagoula and Ocean Springs Hospital, were taken aback when they learned the pension fund was going broke in late 2014.
The pension fund failure resulted in multiple lawsuits, including others still pending against KPMG. SRHS stopped contributing to the pension fund in 2009 without telling employees.
Financial problems in the health system first came to light in early 2014.
An independent auditor later told the county that SRHS had counted $88 million in uncollectible patient debt as revenue — an error KPMG failed to note in health system audits. The settlement covered KPMG’s audits of the health system but not the pension.
Accounting firm stands by its work
In the settlement, KPMG has not admitted liability.
Instead, a statement from the accounting firm said: “KPMG stands by the quality of our audits of both the Singing River Health System and its associated retirement plan. This settlement allows us to move forward and removes ongoing litigation costs.”
The Ocean Springs law firm Rushing & Guice represented the county in the case. Attorney Billy Guice said he could not comment on the settlement beyond what was included in the news release.
“The Jackson County Board of Supervisors is pleased to have reached a settlement which fully compensates the citizens of Jackson County for all funds expended in relation to the claims referenced above and Singing River Health System issues,” the release said. “The settlement allows the Board of Supervisors to direct their attention and resources to other projects for the betterment of Jackson County.”
This story was originally published December 15, 2021 at 3:08 PM.
