The Governmental Accounting Standards Board (GASB) is an independent organization that establishes and improves standards of accounting and financial reporting for state and local governments. GASB Statement No.45 is the guidance from GASB relating to accounting and reporting of OPEB (Other Post-Employment Benefits).
Questar III’s GASB 45 service works with both school districts and BOCES to help manage the accounting for and financial statement presentation of postemployment benefits other than pensions, or OPEB. Currently, 21 of Questar III’s 22component school districts as well as dozens of districts across the state participate in the GASB 45 service. In total, Questar III provides GASB 45 services to over 130 districts and BOCES.
To ensure staff is always up to date with the latest changes or updates to GASB 45, Questar III’s Financial Services Department consistently monitors legislative activity as it relates to OPEB accounting. The GASB 45 team subscribes to the GASB mailing list and eNewsletter and also attends relevant conferences and workshops.
But what does the service actually do?
In a nutshell, Questar III’s GASB 45 service coordinates the valuation process for school districts and BOCES. This entails several things:
• The GASB 45 team will provide a list of items needed from a district or BOCES to begin the OPEB project. They can conduct an onsite meeting if desired with key individuals within the district. This meeting serves to ensure district staff understands the information that is required for the project.
• A Full Valuation report is required every other year (or triennial for districts with less than 200 members). A Disclosure report is provided in the interim years.
• The GASB 45 team will render analysis of the provided data to find potential anomalies and ensure the information is complete, as well as review union contracts and Summary Plan Descriptions and Premiums.
• Once the data has been sufficiently cleaned, the GASB 45 team works in actuarial software called, ProVal to create the valuation and ascertain the OPEB liability. A GASB 45 Report is created based on the valuation results.
• Every step of the GASB 45 report creation process goes through a quality control check by members of the GASB 45 team.
• A final report that has been certified by an actuary is then provided to the district or BOCES. This report can be used for the required financial statement disclosures included in the annual audited financial statements.
• The GASB 45 service is fully BOCES aidable and costs are very competitive as well as consistent from year to year.
For details, view the GASB 45 updated web pages: https://old.questar.org/services/gasb45/index.php
Questar III’s GASB 45 team can also assist clients with any required journal entries to reflect the GASB 45 obligation in the appropriate funds and offer additional benefit contribution scenarios during union negotiations if requested.
For more information, please contact Meghan Heimroth at (518) 479-6814 or mheimroth@questar.org
