Act Now to Begin Preparing for "GASB 45"

By P. Joel Martin, CPA, Shareholder

The Governmental Accounting Standards Board recently issued "Statement 45" - a policy for which school districts and other governmental bodies need to begin preparing now. Better known as "GASB 45," IT helps these organizations implement new GASB standards regarding preparation and audits of financial statements. These standards govern the accounting and reporting for healthcare and other non-pension benefits provided to retirees. The benefits can range from dental, medical and vision care to life insurance and long-term care insurance.

School districts should explore the feasibility of utilizing an actuarial firm to perform the required analysis necessary to meet GASB 45 standards, because each school district has its own separate liability and effective date depending on annual revenue. For more information, click to see Accounting Bulletin #2005-02 on the website of the Pennsylvania Department of Education.

For more information, contact Mr. Martin via email at jmartin@cottrillarbutina.com or by telephone at 724.843.0165, x123.