Completing the Net Pension Liability Worksheetsfsd.mt.gov/Portals/24/LGSB/Webinars and...
Transcript of Completing the Net Pension Liability Worksheetsfsd.mt.gov/Portals/24/LGSB/Webinars and...
Completing the Net Pension
Liability Worksheet
for FY2017
Training presented by:Local Government Services Bureau
State Financial Services DivisionMT Department of Administration
Steps to complete the NPL/GASB68 Worksheet• Step 1: Download necessary reports & worksheets
• NPL - GASB 68 Worksheet from LGSB website • Review the revised instructions
• Employer reports from MPERA and/or TRS• Step 2: Complete the Deferred Schedules Tab for the current and
prior years for each applicable plan • Step 3: Complete the applicable Pension Plan Sample JV Input tab of
the GASB 68 Worksheet• Step 4: Complete the Payroll Allocation Page• Step 5: Complete the Prior Year’s Balances on Recap Tab • Step 6: Governmental Fund Adjustments (Fund 9500 if applicable)• Step 7: Proprietary Fund Adjustments (Each Proprietary Fund)• Step 8: Complete the RSI & RSI notes provided within the Bureau’s
Annual Financial Report• Optional: Complete & Move the Note Disclosures to the AFR
NPL-GASB 68 Worksheet ~
Step 1:• The worksheet is on
the LGSB website:http://sfsd.mt.gov/LGSB
• Accounting and Annual Financial Report Resources
• Open the Excel Spreadsheet
• Rename the file• Save the file to your
computer
NPL Worksheet Instructions Tab:
Review the steps of the instructions page (or tab) of the NPL Workbook
MPERA Website:
MPERA reports necessary to complete the form can be found on their website:http://mpera.mt.gov/EMPLOYERS
• Click on Updated GASB Information found in the Employers Box
The MPERA Website:• Information is
available for multiple years
• Click on the “ER Specific Data” link for the fiscal year you are completing
• Select your local government information by scrolling until you find your local government
MPERA Employer Reports by PlanDownload the pension plan reports necessary to complete the worksheet
MPERA reports include:PERSFURSMPORSSRS
Step 2: Input the Deferred Schedules Tab Prior Year & Current Year Deferred Outflows and Inflows of Resources:
Prior Year: Transfer information from the prior year’s GASB68 Worksheet or prior year’s MPERA report to complete the prior year deferred outflows and inflows in the yellow-shaded cells.Current Year: Transfer the information from the current year’s MPERA Note Disclosure Schedule titled Recognition of Deferred Inflows & Outflows
Prior Yr. Current Yr.
MPERA Note Disclosure:Example of Worksheet – Deferred Input Tab:
Step 3: The Sample Journal Entries:
Using MPERA’s PERS Plan Report locate the Sample Journal Entries page
Input in yellow cells
Salmon cells are formulas
Step 3: Sample JV Input Tab ~ Prior Year’s Contributions Subsequent to the Measurement Date
You will not enter the Deferred Outflows of Resources – Employer Contributions Subsequent to the Measurement Date for the Prior Year from the MPERA Sample Journal Entries
The correct adjusted amount will auto-fill from the Deferred Schedules Tab; If it is different than MPERA’s amount – an adjustment will be auto-calculated and made to pension expense
Step 3: Sample JV Tab ~ On-Behalf Revenue:Input the Sample JV Tab using the MPERA report
Locate the PERS Grant Revenue from the Coal Taxin PERS Note Disclosure -Schedule 80g, 80j
Input the coal grant revenue in the Sample Journal Entries – Part #2
Step 3: Sample JV Tab – Current Year Contributions Subsequent to the Measurement Date:
Use the MPERA ERIC System to determine the Current Fiscal Year’s Contributions Subsequent to the Measurement Date
Input the Defined Benefit Contributions into Sample JV Tab - Section #3
Example of MPERA ERIC Report:
Other Plans:Repeat Steps #2 and #3: Input the information for other applicable MPERA pension plans
MPERA Employer Specific Reports:• PERS• FURS• MPORS• SRS
The TRS report is separate from MPERA
Teachers Retirement System – TRS:
Teachers Retirement System (TRS) information is located:
https://trs.mt.gov/
Click on the link for GASB 68 Employer Reports
Find your local government on the drop-down menu
TRS Information for NPL-GASB 68 Report• Input the information from the Sample Journal Entries page of the
report provided by TRS
TRS Input:The Teacher Retirement Worksheet entry page is different than the MPERA pension plan input pages
Reason: Journal Voucher Format of the information provided by TRS differs from MPERA
Step 4: Allocation by Fund TypePayroll Allocation for PERS & Other Pension Plans
• The Payroll Allocation should be consistent with the Funds and Major Functions (account type) the participating employees’ salary and deductions are paid from
• The payroll report used for the allocation should be the gross wages of employees that participate in the PERS plan only(or the PERS contributions can be used)
Run a gross payroll or contribution history
report by fund type for only employees
participating in PERS
Allocation for PERS & Other Pension Plans cont.
1a) Input the amount of payroll or contributions for governmental funds as one total in the yellow cell
1b) Input the amount for each proprietary fund individually in the yellow cells
Allocation for PERS by Major Purpose:
Payroll Allocation for Governmental Funds:
2) Further allocate the payroll by Major Purpose (account type)
75,000
75,000
Total of all Governmental Funds
Report the Gov. Funds Total by Major Purpose
Payroll Allocation for Pension Plans other than PERS
Payroll Allocation of Pension Plans other than PERS for Governmental Funds :3) Enter the percentages for pension plans other than PERS
• For FURS, MPORS & SRS - The default will be 100% to Public Safety;
• TRS default is 100% General Government• Update to reflect your actual payroll allocation if different
Example below shows SRS manually changed to reflect 90% Public Safety & 10% General Government
SRS
Step 5: The Recap Tab
Input the Prior Fiscal Year’s Ending Balances for the total of the Governmental Funds and individually for each Proprietary Fund for:
Net Pension Liability
Deferred Outflows of Resources
Deferred Inflows of Resources
Step 5: The Recap Tab cont.
The information from the Payroll Allocation will be used to calculate the adjustments by fund type and plan type on the Recap Tab
The Recap Page contains:
Prior Year Ending Balances
Current Year Ending Balances Required Year-end Adjustments
Step 6: NPL Worksheet ~ Governmental Funds Adjustments: #1 - #3:
#2 – BS Conversion
#3 - OP Conversion
#1 – GLTDAG
Answer:
Governmental Funds’ Adjustments: Frequently asked question:
Do you keep Fund 9500 Up-to-date in your Accounting Software?
If yes, Enter Adjustment #1
If not, you will only adjust on your AFR
#1 - Fund 9500 & GLTDAG
Do I make the adjustments in my accounting software?
#3 – OP Conversion –Revenue Analysis
Net Pension Liability on the GLTDAG of AFR:
#1 – Use to complete the GLTDAG of AFR
Input the Change in Net Pension Liability and offset to Amount to be provided -other
Deferred Outflows & Inflows Adjustments on AFR –BS Conversion Worksheet :
Deferred Inflow balance is a debit balance
The resulting debit balance of Deferred Inflows of Resources will be input on the AFR as a negative amount.
Debit Credit
Deferred Outflows & Inflows Adjustments on AFR –BS Conversion Worksheet:
Input the prior year’s ending balance of Deferred Outflows & Inflows from prior AFR and current yearDeferred Outflow of Resources & Deferred Inflow of Resources in the AFR BS Conversion Page
#2 Input on the BS Conversion Sheet of the AFR
BS Conversion Page of AFR: Column D Column E
Debit Credit
Governmental Funds Adjustments #3 B and CDetail information for Pension Expense & On-Behalf Payment:
#3 C - OP Conversion –Pension Expense Breakdown
#3 B - Op Conversion (total) and Revenue Analysis (detail)
On-Behalf Revenue Adjustments #3 B on AFR:
#3 B - Transfer to OP Conversion
Insert #3 B in Column F under Intergovern-mental Revenues on the OP Conversion Page of AFR
OP Conversion of AFR:
Breakdown of Intergovernmental Revenue by Function:
Input the breakdown of On-behalf Rev. on the Revenue Analysis Page of AFR
Input the revenue by major purpose/function on the Revenue Analysis Page –under Program Revenues – State & Federal Shared Revenues Column
Revenue Analysis of AFR:
Governmental Funds Pension Expense:
Transfer Pension Expense to OP Conversion
Insert the Pension Expense by Function in Column F under Expenditures on the OP Conversion
OP Conversion of AFR:
Step 7: Proprietary Fund Adjustments
Proprietary Fund adjustments are calculated by the payroll allocation
The Proprietary Fund Adjustments will auto-calculate. They are located on the Proprietary Fund Journal Adjustment Tab (Lavender tab)
Proprietary Fund Adjustments – Step 7
The necessary journal voucher adjustments for each Proprietary Fund will populate.
Review the Deferred Outflow & Inflow balances
The journal adjustments will be input in the accounting software
Proprietary Fund Adjustments – Step 7
The Pension Expense Account Number
should be the same as used
for your payroll in the
fund.
Example #1:Water payroll:5210-430500
Pension expense Acct # 430500Object Code #195 - #199
5210-430500-195 – Pension Expense
Proprietary Fund Adjustments – Step 7
Proprietary Fund
Adjustments will be entered
in the Accounting Software
The entries will be made on the
Statement of Net Position and the
Statement of Revenues, Expenses and Changes in Fund
Net Position.
Proprietary Fund Cash Flow Statements:Adjustments will be
necessary on the Cash Flow Statements
The pension expense adjustments are non-
cash items – Adjust the Cash paid to employees
The On-Behalf Payment is also a non-cash item –decrease the Subsidies
from taxes & governments by the On-
behalf payment
Adjust using a line on the Reconciliation of
operating income to net cash provided that you
aren’t using
Annual Financial Report Note Disclosures
GASB 68 requires additional Note Disclosures
• The format and note disclosures are provided by MPERA and TRS in PDF format. They can be inserted into your annual financial report
Optional MPERA Plan Note Disclosures are included in the NPL GASB 68 Worksheet
• Follow the instructions in this presentation and in the Worksheet instructions to Copy & Move the optional note disclosures to your AFR
OR
Instructions to Copy & Move the Note Disclosures:
Moving the “Optional” Note Disclosures:Step 1: Right click with your mouse on the tab at the bottom of the worksheet of the pension plan you want to copy and move to the AFR
Step 2: Select the Move or Copy Sheet
Moving the Note Disclosures to your AFR:A Move or Copy Pop-up Menu will appear:
Step 3: Find your AFR name in the To book: menu
Step 4: Find the location in the AFR you want to place the pages(Note section 36-40)
Step 5: Check the Create a
Copy box
Click on the OK Box and the worksheet will be copied to your AFR
Pop-up Menu to Move and Copy:
Step 3
Step 4
Step 5
Final step
Step 8: Required Supplementary Information
The RSI Schedules & Notes to the RSI• Complete the RSI Schedules for each
applicable plan type. The can be located in the LGS Bureau’s Annual Financial Report
The 10-Year Schedules are:• Schedule of Proportionate Share of Net
Pension Liability• Schedule of Contributions10-year Schedules are not required in the first years of implementation until a full 10-year trend is compiled. Governments should present information for years which information is available
RSI and Notes to the RSI:
Schedule of Proportionate Share of Net
Pension Liability
Schedule of Contributions
Recap:• Local Governments will use the reports supplied by MPERA and TRS
• Net Pension Liability Worksheet will assist with adjustments and reporting requirements to comply with GASB 68
• Employer’s Statement of Net Position will include:• Net Pension Liability added for Pension Plans• Deferred Inflows of Resources• Deferred Outflows of Resources
• Additional Requirements: • Recognition of On-behalf Revenues paid directly to the Pension Plans• Pension Expense• Notes to the Financial Statements • Required Supplementary Information & Notes
Resources:• LGSB Website: http://sfsd.mt.gov/LGSB
• Net Pension Liability - GASB 68 Worksheet• Annual Financial Report
• GASB Website: www.gasb.org• GASB 68 Statements• GASB 68 Implementation Guide• GASB Q&A’s• GASB Toolkit
• MPERA Website: www.mpera.mt.gov• Employer Specific Data • MPERA CAFR
• TRS Website: www.trs.mt.gov• GASB 68 Reports
Local Government Services BureauContact Information:
Address: 125 N Roberts St, Room 270 ~ Mitchell BuildingPO Box 200547, Helena, MT 59620Website: http://sfsd.mt.gov/LGSB
Phone number: Helena Office: (406) 444-9101
Regional Accountants:
Magda [email protected]
Darla [email protected]
VACANT444-9101