OPEB Implementation Guidelines for Local Governments in Virginia
Learn about the upcoming OPEB implementation guidelines for local governments in Virginia, including the GASB statements, funding and accounting details, and participation in Commonwealth-sponsored OPEBs. Stay informed to ensure compliance with financial reporting requirements.
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Auditor of Public Accounts Local Government Update 2017 APA Local Government Update _____________________________________ May 19, 2017 Rachel Reamy, Local Government Audit Manager Auditor of Public Accounts
Preparing for Upcoming OPEB Implementation GASB Statement 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans Applicable to VRS and other independent OPEB s financial statements Effective FY2017 GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions Applicable to Local Government s financial statements Effective FY2018 WWW.APA.VIRGINIA.GOV Page 2
Preparing for Upcoming OPEB Implementation OPEB standards closely mirror GASB 67/68 pension accounting Funding and accounting are separated Liability discount rate will be based on a projection of how long dedicated assets (plus future contributions) will cover current plan members future benefit payments Unfunded OPEB liability will now be reported on face of the financial statements Expanded note disclosures and RSI WWW.APA.VIRGINIA.GOV Page 3
Preparing for Upcoming OPEB Implementation Local Governments may participate in following Commonwealth sponsored OPEBs Other Postemployment Retiree Health Insurance Credit (RHIC) Other Employment Group Life (GLI) 4 Single Employer Plans- Social Service Employees, Registrars, Constitutional Officers, and State 1 Cost sharing Plan- Teachers Approximately 90 Multi- Agent Plans- Political Subdivisions Cost Sharing plan includes Teachers, Localities and State WWW.APA.VIRGINIA.GOV Page 4
Preparing for Upcoming OPEB Implementation Local Governments may participate in following Commonwealth sponsored OPEBs Other Postemployment Line of Duty Death and Disability (LODA) Virginia Local Disability Program (VLDP) Cost Sharing plan for Participating Employers, includes Local Governments and State Cost Sharing plan includes Teachers and Political Subdivisions, treated separately for allocation purposes WWW.APA.VIRGINIA.GOV Page 5
Preparing for Upcoming OPEB Implementation Audit process and financial reporting information for Commonwealth sponsored OPEBs APA audit assurance provided similar to audit work for GASB 68 VRS to publish OPEB schedules and templates for journal entries, disclosures/RSI APA to issue multiple opinions for OPEB plans Potential in future for VRS to contract for service organization controls (SOC-1 Type 2) report instead of opining at the employer level WWW.APA.VIRGINIA.GOV Page 6
Preparing for Upcoming OPEB Implementation APA opinions for Commonwealth sponsored OPEB plans Opinions over allocation of Net OPEB Liability Cost sharing plans under LODA, GLI and RHIC Certain single employer plans with multiple employer participants for RHIC Separate opinions for allocation of the statement of changes in fiduciary net position for each of the RHIC agent plans WWW.APA.VIRGINIA.GOV Page 7
Preparing for Upcoming OPEB Implementation Non-Commonwealth sponsored OPEB plans Local Governments participate in other OPEB plans I.E.: VACo/VML Pooled OPEB Trust APA will not be involved in providing audit assurance or financial reporting information for non-Commonwealth OPEBs Have discussions nowwith OPEB s Plan Administer and the Plan s auditors Audit assurance/opinions that will be provided? Timing and how financial reporting information will be provided for local government financial statements? WWW.APA.VIRGINIA.GOV Page 8
APA Local Government Contact Information Rachel Reamy, Local Government Audit Manager, Auditor of Public Accounts 804.225.3350, ext. 360 localgovernment@apa.virginia.gov rachel.reamy@apa.virginia.gov APA website, Local Government page http://www.apa.state.va.us/Local Government.aspx WWW.APA.VIRGINIA.GOV Page 9
