June 15 is deadline to seek reimbursement for GASB 45 planning costs
Published: April 10, 2008
School districts and charter schools have until June 15 to apply for nearly $7.9 million in reimbursement funds for preparing comprehensive plans to comply with tougher post-retirement benefit costs 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 for reviewing the district plans.
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. All local education agencies with annual revenues of $100 million or more are required to comply with the accounting rule now; those with $10 million to $100 million in revenues will need to comply in the 2008-09 school year, and all other LEAs must comply beginning in 2009-10.
Plans must be approved by the governing board of the district or charter school; districts must then submit their plans to their county superintendents for review, and charter school plans must be submitted to the entity that granted the charter, according to a Feb. 22 CDE letter. Authorizing entities are encouraged, but not required, to review charter plans, the letter states. All plans ultimately are to be forwarded to CDE.
To help LEAs prepare the required Fiscal Solvency Plans under GASB 45, the state Legislature authorized reimbursement of up to $15,000 for costs that a district or charter school incurs—if those plans are approved. In addition, COEs can receive an amount equal to 10 percent of a district’s requested reimbursable costs for reviewing the district plan.
“Districts seeking funding for the 2007-08 fiscal year must have their applications approved by the county office and submitted to CDE by June 15, 2008,” according to the letter. “Districts that were required to implement GASB 45 in 2007-08 but did not submit an application for Fiscal Solvency Plan funding in 2006-07 can still apply.”
Funds will be allocated to COEs once a district application that they reviewed is submitted to the CDE.
Related links:
* Read the CDE letter and find links to the application form and more information @ http://www.cde.ca.gov/fg/fo/r14/fsp07rfaltr.asp
* Find out how CSBA’s GASB 45 Solutions program can help @ http://www.csba.org/Services/Services/DistrictServices/GASB45.aspx