Accounting Post-GASB 68 Implementation

By now you have likely completed implementation of GASB 68 “Accounting and Financial Reporting for Pensions”. Congratulations! Hopefully, you did not find it to be as challenging of a task as initially anticipated.

In this GASB 68 post-implementation world, here are a few related topics to note:

1. Continue to educate the readers of your financial statements on the required contributions of your college or university to reduce your proportionate share of the pension liability.
 
2. For Michigan institutions, the ACS (Activity Classification Structure) reporting process for 2014-2015 will not be impacted by GASB 68. Report all expenses resulting from GASB 68 in the various ACS expense categories. The activity recorded in a separate pension liability fund, if applicable, would be included in ACS 3. However, we suggest working with the ACS Steering Committee to determine possible changes in the ACS reporting requirements in the future.

3. Similarly, the IPEDS (Integrated Postsecondary Education Data System) reporting process currently does not have specific questions that address the impact of implementing GASB 68. The Department of Education is requesting an urgent change to the related data collection process. The intent is to collect and properly calculate the cost per full-time enrolled student both with and without additional pension costs. This may result in an impact to your fiscal 2015 reporting, however, more information to come.

4. Your institution’s management should establish and implement internal control procedures to account for the contributions during the year to allow for ease of reporting activity at year end and to calculate the adjustment to the pension liability each year based on information obtained from the Office of Retirement Services.

Published in Higher Education

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