Mendocino County Grand Jury
• 2011-2012
• Agency Response
Response Form Grand Jury Report Title: Mcera Evaluation Report Dated : April 18, 2012 Response Form Submitted By:*
⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 1 findings
F21
In part this recognizes the resources of larger systems and plan sponsors to test implementation of such a significant change in financial reporting. Smaller systems, like MCERA, can benefit from the lessons learned by larger systems. The benefit of learning from larger systems will likely result in a more effective and efficient implementation of the GASB 67 and, thereby, a cost savings to both the plan sponsor and the retirement system.
Related Recommendations (1)
R21
The revised GASB reporting standards, to be implemented in 2013, will reflect a current financial market value of pension assets and liabilities. Partially disagree. The revised reporting standards (GASB 67 for plan reporting and GASB 68 for employer reporting) will become effective in 2013/2014 for the plan and in 2014/2015 for the employer. Even though the new standards mandate reporting based on market value of pension assets, plan liabilities continue to be valued using long term actuarial assumptions (i.e., no market value of liabilities). While the new GASB statements are intended to bring financial reporting standards for the plan sponsors more in line with Generally Accepted Accounting Principles (GAAP), recognizing changes in assets and liabilities more closely to the year in which they are incurred, MCERA believes that the Grand Jury's statement reflects only one of many reporting requirements proposed by the GASB. In addition, the new GASB statements allow some changes to be recognized over a specified time period of more than one year.
* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.