Page 60 - Yucaipa Valley Water District

Director Memorandum 18-099

Date: July 17, 2018

Prepared By: Allison M. Edmisten, Chief Financial Officer

Subject: Preparation of a GASB 75 Compliance – Actuarial Report

Recommendation: That the Board authorize District staff to coordinate the preparation of
the GASB 75 Compliance Report with Demsey, Filliger & Associates.

The Government Accounting Standards Board (GASB) issued its Statement 75, Accounting and
Financial Reporting for Postemployment Benefits Other than Pensions (OPEB). Many local
governments offer retiree medical benefits that will now be subject to new requirements through
this statement. The Net OPEB Liability will now be reported on the face of the Statement of Net
Position, similar to the Net Pension Liability recently added through GASB 68.

The primary objective of this Statement is to improve accounting and financial reporting by state
and local governments for postemployment benefits other than pensions (OPEB). This Statement
establishes standards for recognizing and measuring liabilities, deferred outflows of resources,
deferred inflows of resources, and expenses.

As a result of Yucaipa Valley Water District having fewer than 200 employees (active and
inactive), we are able to use an “alternative measurement method” for GASB 75. This is
essentially a simplified method of determining our liability. As a result of being a “small
district/entity” based on our employee count, we will be utilizing a program through the CA School
Board Association (CSBA) where we provide data to CSBA, they compile the report and then an
actuarial firm, Demsey, Filliger & Associates, LLC. reviews and confirms the report. This will meet
the GASB requirements and the actuarial report will be utilized by our auditors for the information
to be included in our financial statements.

Financial Consideration

The cost of this actuarial report is $1,875 and will be split between the water, sewer and recycled
divisions [G/L Account # 54108, Audit & Accounting].

Yucaipa Valley Water District - July 17, 2018 - Page 58 of 94