SUMMARY

We provided an unmodified opinion on the Fund’s financial statements as of and for the fiscal years ended June 30, 2018, June 30, 2017, and June 30, 2016. The Fund’s net position increased in each fiscal year and was $1.0 billion as of June 30, 2018. This amount exceeded the maximum of the target range for the Fund’s net position. Although assessment rates were reduced in each year of our audit period, the increase in the Fund’s net position was driven primarily by positive investment income and decreasing estimated loss liabilities. We recommend the Office of the Commissioner of Insurance (OCI) work with the Fund’s Board of Governors to develop a formal written plan to re-evaluate the target range for the Fund’s net position. We also recommend OCI take steps to improve its financial reporting process.