5.1. ERMUSR 05-14-2013 - Laserfiche WebLink

Home Browse Search

Elk River Municipal Utilities May 6,2013 Page 9 Future Accounting Standard Changes -Continued GASB Statement No.68 - The Accounting and Financial Reporting of Pensions-an Amendment of GASB Statement No. 27 The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity,and creating additional transparency. This Statement replaces the requirements of Statement No.27, Accounting for Pensions by State and Local Governmental Employers,as well as the requirements of Statement No. 50,Pension Disclosures,as they relate to pensions that are provided through pension plans administered as trusts or equivalent arrangements(hereafter jointly referred to as trusts)that meet certain criteria.The requirements of Statements 27 and 50 remain applicable for pensions that are not covered by the scope of this Statement. This Statement is effective for fiscal years beginning after June 15,2014. Earlier application is encouraged. How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve the decision-usefulness of information in employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense. Decision- usefulness and accountability also will be enhanced through new note disclosures and required supplementary information. * * * * * This communication is intended solely for the information and use of the Public Utilities Commission, City Council, management,and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. The comments and recommendations in this report are purely constructive in nature, and should be read in this context. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter,please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff 0146 fitk May 6,2013 ABDO,EICK&MEYERS, LLP Minneapolis,Minnesota Certified Public Accountants 952.835.9090 • Fax 952.835.3261 www.aemcpas.com