EXECUTIVE SUMMARY:
This final report provides the results of our review of Unfunded Pension Costs of AdminaStar Federal. AdminaStar Federal (Kentucky) did not make contributions to the pension trust fund for Plan Years 1988 through 1993 and 1995. Accordingly, Kentucky did not fund the pension costs identifiable with its Medicare segment during this period. As a result, Kentucky accumulated unfunded pension costs of $4,286,294 as of January 1, 1996. Kentucky must separately identify and eliminate this amount from the amortization components of future pension costs. The auditee did not provide a response to our report.