FY2016 CCDOA Financial Report as of 6302016.pdf - page 28

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GASB Statement No. 68,
Accounting and Financial Reporting for Pensions
("GASB 68") and GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date
("GASB 71"), are effective for fiscal
years beginning after June 15, 2014. Under GASB 68, an employer in a cost-sharing, multiple-employer defined
benefit pension plan is required to record its proportionate sharing of the net pension liability of the pension plan as
determined at the measurement date. The net pension liability of the pension plan is determined by actuarial
valuation of the total pension liability less the amount of the pension plan’s fiduciary net position. The measurement
date must be no more than 30 months and 1 day prior to the employer’s most recent fiscal year end. Based on
assumptions in computing the total pension liability, certain items that qualify as deferred outflows of resources or
deferred inflows of resources are ascertained and determined to be recorded. These include differences between
expected and actual experiences, net differences between projected and actual investment earnings on pension
plan investments, and changes in assumptions. The amounts are to be amortized using a systematic and rational
method over a closed period starting at the measurement date. Also, in determining the net pension liability under
a cost-sharing, multiple-employer defined benefit pension plan, there may be a deferred outflow of resources or a
deferred inflow of resources related to certain changes in proportions. These amounts are also to be amortized
using a systematic and rational method over a closed period starting at the measurement date. Contributions to
the pension plan by employers after the measurement date are recorded as a deferred outflow of resources until
the next measurement date. Under GASBs 68 and 71, an entity’s net position is to be restated as a cumulative
effect of change in accounting principle. With the implementation of GASBs 68 and 71, the Department, as of July
1, 2014, reduced its unrestricted net position by $144.7 million as a cumulative effect of change in accounting
principle. GASB 68 information is not available for FY 2014; therefore, the Department’s salaries and benefits
expense and, correspondingly, its net position as of June 30, 2014, have not been restated for the implementation
of GASBs 68 and 71. All financial information included in the MD&A for FY 2014, does not reflect this implementation.
Refer to Note 5, "Retirement Plans," for further details.
Financial Highlights
Net Position Summary
Net position serves as an indicator of the Department’s financial position. As of June 30, 2016, the Department’s
assets and deferred outflows of resources exceed its liabilities and deferred inflows of resources by $1,223.4 million,
$23.5 million more than in FY 2015. As of June 30, 2015, assets and deferred outflows of resources exceeded liabilities
and deferred inflows of resources by $1,199.9 million, a decrease of $107.8 million from FY 2014.
A summary of the Department’s net position for fiscal years 2016, 2015, and 2014 is shown below.
1...,18,19,20,21,22,23,24,25,26,27 29,30,31,32,33,34,35,36,37,38,...169
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