Commentary
A look at audited financial statements for the 80 school districts in Los Angeles County shows less movement in the rankings for the year ending June 30, 2019, compared to the previous year.
The Government Accounting Standards Board (GASB) had recently required the unfunded portion of promises to provide medical reimbursement plans for retirees, based on their actuarial costs, on the balance sheet as a liability, and municipal reporting started to reveal growing unrestricted net deficits (negative owner’s equity/retained earnings on for-profit financial statements) for school districts.
Known as Other Post-Employment Benefits (OPEB), reporting the unfunded actuarial accrued liability (UAAL) for retiree medical on the books was to occur in 2017. These obligations are now being reflected in the audited financial statements as a result of implementing GASB No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.”…