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GASB 68 for Mississippi Entities

GASB 68 & 71, PERS and the Impact on Mississippi Entities

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorFinancial statements prepared using the economic resources measurement focus and accrual basis of accounting are required to recognize a liability for the proportionate share of the net pension liabilityPension expense and deferred outflows of resources and deferred inflows of resources related to pensions must also be recordedPlan amounts along with proportionate share percentages will be provided by PERS All other amounts will have to be calculatedAdditional disclosures and supplemental schedules are requiredSummaryStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorStatement No. 68 and Statement No. 71 are effective for employers and governmental nonemployer contributing entities in fiscal years beginning after June 15, 2014 (that is, for years ended June 30, 2015 or later)Measurement Date can be no earlier than the end of the employers prior fiscal year, consistently applied from period to period (GASB 68, Paragraph 48)Employers with a June 30, 2015 (Public School Districts and Community Colleges), year-end will use 2014 PERS GASB 68 Resources for Employers ReportsEmployers with a fiscal year-end reporting date after July 1, 2015 (Counties), will use 2015 PERS GASB 68 Resources for Employers Reports (Will be available by December 31, 2015)Reporting DateStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State Auditorhttp://www.pers.ms.gov/Pages/Home.aspx

Where to Find the Data for the Calculation

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorResources

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorAuditors 2013/2014 Report (Schedule of Employer Allocations and Schedule of Collective Pension Amounts)Total Plan Net Pension LiabilityTotal Plan Deferred Inflows and OutflowsTotal Plan Pension ExpenseAverage Remaining Service LifeSensitivity Analysis Disclosure InformationTotal Plan Net Pension LiabilityTotal Plan Deferred Inflows and OutflowsTotal Plan Pension ExpenseAverage Remaining Service LifeSensitivity Analysis Disclosure Information

Proportionate ShareActuarys 2014 Report(Report of the Annual GASB Statement No. 68Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorPERS calculated the employer allocation percentage so that each entity would have a portion This resulted in the percentages going out 6 decimal placesManagement may round the proportionate share to fewer decimal places, at their discretion The advantage to rounding is that it should help reduce changes in proportionate share in future yearsProportionate ShareStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorRemove the net position obligation (asset) balance determined in accordance with Statement 27, as amended, if any, and any payables to the pension plan, associated with formal commitmentsAdd the balance of the net pension liability (or proportionate share of the collective net pension liability), if any, as of the beginning of the initial period of implementation Add a deferred outflows of resources balance for the governments contributions to the pension plan made between the measurement date and the beginning net pension liability and the beginning of the entitys fiscal year, if anyAdd balances associated with all other deferred outflows of resources and deferred inflows of resources, if applicableComponents of Prior Period AdjustmentStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorThis spreadsheet is a tool originally prepared for internal use by the Office of the State Auditor and now provided as a template to assist in the pension calculations relating to GASB 68. It is applicable only in the year of implementation for entities with a year end of 6/30/15 or prior. Subsequent years will require additional calculations not addressed in the spreadsheet. The Office of the State Auditor assumes no responsibility for the content of this spreadsheet or for any errors or omissions related to its use. Each entity will have unique and different circumstances that may require revisions and/or additions to this template. The understanding and implementation of GASB 68, accuracy of the calculations, and recording of the applicable journal entries are the responsibility of management of the entity.

DisclaimerStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample InformationMeasurement DateJune 30, 2014Employer Fiscal Year End June 30, 2015Proportionate Share from PERS0.461324%2014 Proportionate Share Rounded 0.46%2013 Proportionate Share Rounded0.46%Employer contributions subsequent to the measurement date (Contributions from July 1, 2014-June 30, 2015)$5,000,000Employer contributions during fiscal year 2014 (Contributions from July 1, 2013 June 30, 2014)$4,460,501Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample Template - Summary

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample Template Deferred Outflows

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample Template Deferred Inflows

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample Template Pension Expense

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample Template Sensitivity Analysis

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorExample Template - Journal Entries

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State Auditor

Example Template Journal Entries*The entry should be a debit to deferred outflows - pensions and a credit to cash/payable. The way that the contributions subsequent to the measurement date were initially recorded during the year will dictate the credit side of the entry. The initial debit entry will need to be reversed to properly reflect the amount of deferred outflows. This entry will vary by entity. (Will be closed out to net pension liability in the subsequent year.)

Stacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorRecognition on the Statement of Net Position and Statement of ActivitiesAdditional note disclosuresSupplementary SchedulesSchedule of the Districts Proportionate Share of the Net Pension LiabilitySchedule of District ContributionsChanges to ReportStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State AuditorGASB 68, Accounting and Financial Reporting for PensionsGASB 71, Pension Transition for Contributions Made Subsequent to the Measurement DateGASB 68 Implementation GuideAICPA Whitepaper Governmental Employer Participation in Cost-Sharing Multiple-Employer Plans: Issues Relating to Information for Employer ReportingOther Implementation ResourcesStacey E. Pickering

Mississippi State AuditorStacey E. Pickering

Mississippi State Auditor

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