Page 9 - Yucaipa Valley Water District - Board Workshop
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Workshop Memorandum 18-246
Date: November 13, 2018
Prepared By: Allison M. Edmisten, Chief Financial Officer
Subject: Overview of the GASB 75 Compliance – Actuarial Report
On July 17, 2018 [DM 18-099], the Board authorized District staff to coordinate the preparation of
the Government Accounting Standards Board (GASB) 75 Compliance Report (“Statement”) with
Dempsey, Filliger & Associates. Many local governments offer retiree medical benefits that are
now subject to new requirements through this statement. If material, the Net OPEB Liability will
be reported on the face of the Statement of Net Position, similar to the Net Pension Liability
recently added through GASB 68. If the liability is immaterial, it will not be included on the financial
statements.
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.
District staff received the completed actuarial report on October 22, 2018 (attached). The Net
OPEB Liability is $789,019. Due to the fact this amount is only 2.9% of our annual operating
budget, it is immaterial and will not be stated on the audited financial statements. This liability will
be calculated and reviewed annually at the time of the audit. Every 3 to 5 years, the District will
have an actuarial firm compile a formal report to ensure there are no significant changes to the
liability and to validate the District staff calculations. If the OPEB liability becomes material in the
future, it will be stated on the audited financial statements and the appropriate note disclosures
will be included. This meets the requirements as stated in GASB 75.
Financial Consideration
The cost of the actuarial report was $1,875 and was approved by the Board on July 17, 2018.
Yucaipa Valley Water District - November 13, 2018 - Page 9 of 166
