1. Taccbo June 18-21, 2019 – San Antonio, TX Concurrent session (3) Wednesday, June 19th 2:30-3:20 pm GASB 68 & 75 Journal Entry Analysis $Bill Dickerson, Director of accounting and financial services san jacinto college Patrick F. Vrba, ControLLer – Alamo Colleges District

2. Biographies
Bill Dickerson is the Director of Accounting and Financial Services at San Jacinto College, a position he has held since 1997, initially hiring in with the college in 1990 as a Special Projects Accountant. He serves as the Team Leader for Banner Finance since implementation in Bill and his team prepare the annual CAFR. He is the current Chair of the Annual Financial Reporting committee for TACCBO.

3. Biographies
Patrick F. Vrba, Jr., CPA is the Controller for the Alamo Colleges District. His duties include planning, directing, administering and organizing financial management services and reporting for the financial accounting, analysis and business support functions of the District. Mr. Vrba began his accounting career in public accounting as a financial auditor, with a concentration in governmental clients. He moved to Alamo Colleges in September of 2013 as a Senior Financial Analyst. Prior to coming to Alamo Colleges, he worked for BKD, LLP in San Antonio as an auditor for nearly 3 years. Mr. Vrba is a Texas CPA and holds a Bachelor’s of Science in Public Relations from the University of Texas at Austin and a Bachelor’s of Administration in Accounting from the University of Texas at San Antonio.

4. AGENDA Review of the various Journal Vouchers The why behind them
Impact on the CAFR
Review of the massive TRS and ERS spreadsheets as source documents
Should we indicate that we will be reviewing the entries that SJC made last year, in FY18 for FY18 CAFR? Just to be clear.
Do we need to address the fact that not everyone has the Cameron Gulley spreadsheet?

5. GASB 68 – Net Pension Liability
Adjusting Entry #1 – Recap of Prior Year Balances 2017 SJCD
Deferred outflow related to pension ,924,946
Net Pension Liability (31,890,143)
Deferred inflow related to pensions ( 3,795,258)
Net effect on Unrestricted Net Position (28,760,455)
What #1 are you referring to? Is this an actual entry? I don’t believe everyone has purchased Cameron’s spreadsheet.
Did you obtain permission to use/discuss? Do you need to?
Consider adding dollar sign to top and bottom figure.
NPL figure – off by $2 from G68 & G75 adjustments tab.

6. GASB 68 – Net Pension Liability
Adjusting Entry # 2 – Reverse prior year deferred outflow of resources for contributions made after the prior year measurement date of 08/31/16 and before the end of the prior fiscal year This is the total of the TexNet ERS manual data inputs for 08/31/17.
This is to reduce the Deferred Outflow for actual payments during the TRS reporting period
Source: TexNet_ERS manual data inputs Column P
Debit Pension expense ,731,707
Credit Deferred outflow related to pension (2,731,707)
Consider changing tab title to “…_TRS-ERS manual data inputs” ?? Also includes TRS manual entries
Consider changing reference to Cell P21
Bullet #2: Consider changing reduce to reverse.
Consider adding dollar sign ($) to first figure
Consider consistency for Debit/ Credit format throughout the document
Equivalent to Entry #1 on Vrba spreadsheet
Agree with debit and credit

7. GASB 68 – Net Pension Liability
Adjusting Entry #3 – Record current year deferred outflow of resources for contributions made after the current year measurement date of 08/31/2017 and before the end of the current fiscal year This is the total of the TexNet ERS manual data inputs for 08/31/2018. This is to increase the Deferred Outflow for actual payments during the TRS reporting period
Source: TexNet_ERS manual data inputs Col P
Debit Deferred outflow related to pension ,030,938
Credit Pension expense (3,030,938)
Remove comma before period In 2nd sentence
Consider changing reference to Cell P44
Where are you getting the data to manually input into the schedule? Do we have a uniform source amongst CC’s that we can all refer to to obtain these figures?
Consider adding dollar sign ($) to first figure
Equivalent to Entry #3 on Vrba spreadsheet
Agree with debit and credit

8. GASB 68 – Net Pension Liability
Adjusting Entry #4 – District contributions must be de-expensed for FY 2017 TRS TRAQS records
Source: TRS_ERS data summary schedule
Column U FY 2017 Contributions per TRAQS
Debit Net pension liability ,726,409
Credit Pension expense (2,726,409)
Consider changing reference to Cell U1311

9. GASB 68 – Net Pension Liability
Adjusting Entry #5 – FY 2017 TRS TRAQS additional adjustments must be de-expensed (if any)
Source: TRS_ERS data summary schedule
Column V – Contribution Adjustments
Debit Pension expense ,262
Credit Net pension liability (5,262)
Consider changing cell reference to V1311
Equivalent to Entry #5b per Vrba spreadsheet
Agree with debit & credit

10. GASB 68 – Net Pension Liability
Adjusting Entry #6 – Record District’s proportionate share of TRS plan-wide pension expense
Source: TRS_ERS data summary schedule
Column W Plan Level Pension Expense
Debit Pension expense ,570,035
Credit Net pension liability (2, )
Correct comma in NPL credit amount
Since this example relates to payroll, there is not a lot that we can display publicly. However, Bill is here to speak about a fraud attempt our payroll department encountered.
Take it away Bill.

11. GASB 68 – Net Pension Liability
Adjusting Entry #7 – Reverse prior year deferred resource inflow/outflows (excluding TRS post measurement date contributions)
Source: Pension expense calculated difference
(4,193,239) + 3,795,2585 = 397,981
Deferred Inflow – FY 17 Beginning Balance 3,795,258
Deferred Outflow – Beginning Balance less AJE #2
6,924,946 – 2,731,707 = 3,795,258
Debit Pension expense ,981
Debit Deferred inflow related to pension ,795,258
Credit Deferred outflow related to pension (4,193,239)
Equivalent to Entries#2A & 2B on Vrba schedule, net pensions expense is recorded

12. GASB 68 – Net Pension Liability
Adjusting Entry #8 – Record current year deferred resource inflow/outflows (excluding TRS post measurement date contributions)
Source: TRS_ERS data summary schedule
Pension Expense Calculated - Colum AD – AJ
Outflow – Column AD
Inflow – Column AJ
Debit Pension expense ,406,440
Debit Deferred outflow related to pension ,691,391
Credit Deferred inflow related to pension (10,097,831)
Correct spelling of “Colum” for Pension Expense
Consider changing reference to Cell AD1311
Consider changing reference to Cell AJ1311
Equivalent to Entries #7-14 on PFV spreadsheet
Since this example relates to payroll, there is not a lot that we can display publicly. However, Bill is here to speak about a fraud attempt our payroll department encountered.
Take it away Bill.

13. GASB 68 – Net Pension Liability
Adjusting Entry #9 – Record NECE’s total proportionate share of collective pension expense that is associated with the District
Source: 68 TRS allocated NECE on-behalf pmts Col G
GASB 68 Footnotes
Debit Pension expense – State on-behalf expense 1,650,492
Credit State on-behalf revenue (1,650,492)
Equivalent to entry #15 on PFV spreadsheet

14. GASB 68 – Net Pension Liability
Adjusting Entry #10 – Re-characterize prior year deferred resource inflow for net difference in projected and actual investment earnings as net offset to current year deferred resource outflow per GASB paragraph 71.
Source: TRS_ERS data summary schedule Column AB
Debit Deferred inflow related to pension ,090,611
Credit Deferred outflow related to pension (4,090,611)
Equivalent to net of entries #7-14 on PFV spreadsheet

15. GASB 68 – Net Pension Liability
Deferred outflow related to pensions
Beginning Balance 08/31/ ,924,946
AJE #2 Reverse PY Outflow (2,731,707)
AJE #3 Record CY Outflow ,030,938
AJE #7 Reverse PY Inflow (4,193,239)
AJE #8 Record CY Inflow ,691,391
AJE #10 Net Diff Investments (4,090,611)
Ending Balance 08/31/ ,631,718
I don’t understand JE#10

16. GASB 68 – Net Pension Liability
Beginning Balance 08/31/ (31,890,143)
AJE #4 Reverse FY 17 Actual Expense ,726,409
AJE #5 Reverse FY 17 TRS ADJ (5,262)
AJE #6 Record Proportionate TRS ,570,035
Ending Balance 08/31/ (26,598,961) .

17. GASB 68 – Net Pension Liability
Deferred Inflow Related to Pensions
Beginning Balance 08/31/ (3,795,258)
AJE #7 Reverse PY Inflow ,795,258
AJE #8 Record CY Inflow (10,097,831) AJE #10 Record Net Diff Investments ,090,611
Ending Balance 08/31/ (6,007,220)

18. GASB 68 – Net Pension Liability
GASB 68 Expense
AJE #2 Reverse PY Outflow ,731,707
AJE #3 Record CY Outflow (3,030,938)
AJE #4 Reverse FY 17 Actual Expense (2,726,409)
AJE #5 Reverse FY 17 TRS ADJ ,262
AJE #6 Record Proportionate TRS (2,570,035)
AJE #7 Reverse PY Inflow ,981
AJE #8 Record CY Inflow ,406,440
AJE #9 Record NECE on-behalf expense ,650,492*
Ending Adjustment 08/31/ ,500

19. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #11 – Restate the proportionate share of the collective beginning net position as of the beginning measurement period (09/01/16) pursuant to GASB 75 Par 24
Source: TRS_ERS data summary schedule Column BB
Debit Unrestricted net position ,875,042
Net OPEB liability (108,875,042)

20. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #12 – To record contributions made after the measurement date of the beginning net OPEB liability and the beginning of the fiscal year pursuant to GASB 75 Par 244
Source: TRS_ERS manual data inputs Column AH
Deferred outflow related to OPEB ,511,161
Unrestricted Net Position (2,511,161)
AJE #11 + #12 equals cumulative effect of change in accounting principle
108,875,042 + (2,511,161) = 106,363,881 Debit

21. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #13 – Liquidate prior year post-measurement date contributions to current year expense
Source: TRS_ERS data summary schedule Column BC
FY 2017 Contributions per ERS
OPEB expense ,511,161
Deferred outflow related to OPEB (2,511,161)

22. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #14 – Record employer contributions for the current measurement year – FY 17
Source: TRS_ERS data summary schedule Column BC
FY 2017 Contributions per ERS
Net OPEB liability ,506,560
OPEB expense (2,506,560)

23. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #15 – Record contribution adjustments for the current measurement year 2017
Source: TRS_ERS data summary schedule Column BCD
Contribution Adjustments – Amount necessary to balance ERS to Actuarial Report contributions
OPEB expense ,104
Net OPEB liability (1,104)

24. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #16 – Record OPEB expense for measurement year 2017
Source: TRS_ERS data summary schedule Column BD
Contribution Adjustments – Amount necessary to balance ERS to Actuarial Report contributions
Debit Net OPEB liability ,876,654 Credit OPEB expense (4,876,654)

25. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #17 – Record aggregate ending net deferred resource outflows and inflows
Source: TRS_ERS data summary schedule Column BS
Difference between expected and actual actuarial experience plus
Changes in actuarial assumptions – Column BT = Deferred Inflow
Deferred Outflow – Column BQ
Debit Net OPEB liability (Calculated) ,121,204
Debit Deferred outflow related to OPEB ,979
Credit Deferred inflow related to OPEB (20,148,183)

26. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #18 – Record contributions made after the measurement date and before the end of the current fiscal year in conformity with GASB 75 Par 68.
Source: TexNet ERS manual data inputs Column AN
FY Contributions
Debit Deferred outflow related to OPEB ,554,275
Credit OPEB expense (2,554,275)

27. GASB 75 – OPEB – Other Post Employment Benefit
Adjusting Entry #19 – Record OPEB expense and revenue for NECE support in conformity with GASB 75 Par 111 and 113
Source: TRS_ERS data summary schedule Column AY
2017 NECE Pension Expense
Debit OPEB expense State on-behalf ,302,121
Credit OPEB revenue State on-behalf (4,302,121)

28. GAS GASB 75 – OPEB – Other Post Employment Benefit
Deferred outflow related to OPEB
Beginning Balance 08/31/
AJE #12 Record Contributions after MD ,511,161
AJE #13 Reverse PY PMD outflow (2,511,161)
AJE #17 Record deferred outflow CY ,979
AJE #18 Record deferred inflow CY ,554,275
Ending Balance 08/31/ ,581,254

29. GAS GASB 75 – OPEB – Other Post Employment Benefit
Net OPEB Liability
Beginning Balance 08/31/
AJE #11 Restate PY Net OPEB Liability (108,875,042)
AJE #14 Reverse CMY OPEB Liability ,506,560
AJE #15 Record Contribution ADJ (1,104)
AJE #16 Record OPEB MY (4,876,654)
AJE #17 Record Net deferred IF and OF ,121,204
Ending Balance 08/31/ (91,125,036)*
*This was split between Current 5% and Non-Current 95%

30. GAS GASB 75 – OPEB – Other Post Employment Benefit
OPEB Expense Adjustments
Beginning Balance 08/31/
AJE #13 Reverse PY PMD outflow ,511,161
AJE #14 Reverse CMY OPEB Liability (2,506,560)
AJE #15 Record Contribution ADJ ,104
AJE #16 Record OPEB MY ,876,654
AJE #18 Record deferred inflow CY (2,554,275)
AJE #19 Record NECE State on-behalf ,302,121*
Ending Balance 08/31/ ,630,205

31. Schedule D – State On-Behalf Payments
State group insurance
Beginning Balance 08/31/
GASB 75 OPEB – Retirees ,302,121*
Active Employees ,102,888**
Ending Balance 08/31/ ,405,009
* AJE #19
** Matches ERS Health Insurance Report

32. Schedule D – State On-Behalf Payments
State retirement
Beginning Balance 08/31/
GASB 68 – TRS ,650,492*
ORP – Optional Retirement Plan Reimbursed ,807**
Ending Balance 08/31/ ,164,299
* AJE #9
** Matches ORP Reimbursements for FY18

33. Thank you.