Deadline looms for GASB compensation

School districts and charter schools have until June 15 to apply for nearly $7.9 million in reimbursement funds for preparing Fiscal Solvency Plans to comply with tougher post-retirement benefit cost accounting requirements under Governmental Accounting Standards Board Statement 45.

However, time is already drawing short—district plans must first be reviewed by county offices of education and submitted to the California Department of Education. COEs are also eligible for a share of more then $887,000 in reimbursement if they choose to review the district plans.

Plans must be approved by the governing board of the district or charter school; districts plans then go to county superintendents, and charter school plans to the entity that granted the charter, according to CDE. All plans ultimately go to CDE. The state will reimburse up to $15,000 for costs that a district or charter school incurs if the plans are approved.

Issued in 2004, GASB 45 established standards for projecting costs and preparing to fund retirees’ benefits, including expenses incurred for medical care, prescription drugs, life insurance, long-term disability, long-term care and death benefits.

Related links:  
Find links to the application form and more information @ www.cde.ca.gov/fg/fo/r14/fsp07rfaltr.asp

Find out how CSBA’s GASB 45 Solutions program can help @ www.csba.org/Services/Services/DistrictServices/GASB45.aspx