2015 BAW Conference GASB 68 Implementation: Are we there yet? Ashley Brindle.
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Transcript of 2015 BAW Conference GASB 68 Implementation: Are we there yet? Ashley Brindle.
2015 BAW Conference
GASB 68 Implementation: Are we there yet?
Ashley Brindle
GASB 68
Governmental Accounting Standards Board (GASB) timeline:•Exposure Draft issued July 2011•Statement approved in June 2012•Statement issued in August 2012•Effective for fiscal periods beginning after June 15, 2014
For many of our participating employers, we are there!
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Learning objectives
• Resources available from PEBA• Detailed resource review• Frequently asked questions• Additional important details• Employer checklist• Contact information• Questions
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What is available from PEBA?
• June 30, 2014, Accounting Actuarial Valuation• June 30, 2014, Audit Report on the Schedules of
Employer Allocations, Schedules of Pension Amounts by Employer, and Related Notes• Pension Disclosure Memorandum for the June 30,
2014, measurement date• PEBA’s GASB 67/68 Educational Series• Employer Contribution Reconciliation Template
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What is available from PEBA?
• NPL Roll Forward for SCRS and PORS• Q&A document• Links to • Governmental Accounting Standards Board (GASB) website• GASB 67 and GASB 67 Implementation Guide• GASB 68 and GASB 68 Implementation Guide• GASB 71• GASB Pension Implementation Toolkit• AICPA GASB Pensions: Issues and Resources website
• PEBA’s GASB Inquiry
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What is available from PEBA?
• All of the items are available at http://www.retirement.sc.gov/gasb/employers.htm
• Also available online is the South Carolina Retirement Systems’ June 30, 2014, Comprehensive Annual Financial Report, located at http://www.retirement.sc.gov/financial/CAFR_2014.pdf
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• Actuary’s certification of GASB 67 information• Schedules necessary for
GASB 67 reporting• Information as of June
30, 2014• May be requested by
external audit firms during annual audit
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Accounting actuarial valuation
June 30, 2014, Audit Report on the Schedules of Employer Allocations, Schedules of Pension Amounts by Employer and Related Notes•For use by participating employers reporting in compliance with GASB 68 at June 30, 2015
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Audit report
• June 30, 2014, measurement date• Language that may be
used in the development of the employer’s GASB 68 notes to the financial statements
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Pension disclosure memorandum
• General overview of GASB 67 • Detailed overview of
requirements of GASB 68
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PEBA’s educational series
• To assist in reconciling contributions with those reflected in the Schedule of Employer Allocations in the audit report
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Employer contribution reconciliation template
• Provides components of the change in the NPL from June 30, 2013, to June 30, 2014• Provides details
regarding amortization of Deferred Inflows and Outflows of Resources
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NPL Roll Forward for SCRS and PORS
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Schedule of employer allocations
Schedule of employer allocations
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Q&A document
• How are pension costs determined? • How is each employer’s proportionate share
determined? • What is the difference between the actuarial
valuation performed annually for funding purposes and the valuation work performed by the actuary for pension accounting purposes?
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Q&A document
• How will the implementation of GASB 68 impact contribution rates?• What is the meaning of the NPL that will be reflected
in participating employers’ financial statements under GASB 68?• Why doesn’t pension expense calculated under GASB
68 agree with contributions remitted to the plans?
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Q&A document
• Is PEBA planning to provide schedules that show an employer’s proportionate share of the net pension liability at any period other than June 30? • I am an employer with a fiscal year end other than
June 30 (September 30, for example). What should I expect as it relates to obtaining pension cost information that can be utilized in our initial implementation period?
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Additional questions
• Did PEBA include the differences during the measurement period between the employer’s contributions and its proportionate share of all employer contributions in the calculations of pension expense and deferred outflows for plan year ending June 30, 2014?• Will PEBA provide schedules to show changes, if any,
in the employer’s proportion of the collective NPL between 2014 and 2015?
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GASB 71
• GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, paragraph 3, clarifies that, at transition to GASB No. 68, governmental employers should recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability but before the start of the governmental employer’s fiscal year.
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Covered-employee payroll
• Reported in Required Supplementary Information (See paragraphs 32 in GASB 67 and 81 in GASB 68)• GASB 67 and 68 define Covered-Employee Payroll as
“the payroll of employees that are provided with pensions through the pension plan.”• Not likely the same as earnable compensation from the
Systems’ perspective• GASB is aware of the difference and has it on their
agenda for upcoming consideration
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Allocation to funds
• Question 36 of GASB 68 Implementation Guide states “For proprietary and fiduciary funds, consideration should be given to National Council on Governmental Accounting (NCGA) Statement 1, Governmental Accounting and Financial Reporting Principles, paragraph 42, as amended, which requires that long-term liabilities that are directly related to, and expected to be paid from, those funds be reported in the statement of net position or statement of fiduciary net position, respectively”
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Employer checklist
• Read GASB 68, GASB 71, & GASB 68 Implementation Guide to determine their impact on your entity• Visit PEBA’s Employer GASB Resource Center to become
familiar with information provided by PEBA• Determine the appropriate measurement date for your
entity (June 30, 20XX)• Reconcile contributions per the Schedules of Employer
Allocations (in the audit report) to contributions per your general ledger• Talk with your external audit firm
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Employer financial reporting contact
• In EES, please ensure we have a “Fin Reporting/GASB” Contact listed under your employer contacts. If one is not listed, please add one.
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PEBA pension GASB [email protected]
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Questions
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Disclaimer
This presentation does not constitute a comprehensive or binding representation regarding the employee benefits offered by the South Carolina Public Employee Benefit Authority (PEBA). The terms and conditions of the retirement and insurance benefit plans offered by PEBA are set out in the applicable statutes and plan documents and are subject to change. Please contact PEBA for the most current information. The language used in this presentation does not create any contractual rights or entitlements for any person.
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