Some Indiana school districts maybe springing a financial surprise on their taxpayers once this national rule
kicks in for 2016. The rules are in compliance with accounting methods that make local governments use more business accounting methods when dealing with pension plans and pension liabilities. These rules are from the Government Accounting Standards Board (GASB) Statement No. 68 and GASB Statement No. 71. Basically, no more utopian math can be used to look at long term bills.
Here’s an example of a school district out of Wyoming when they did their audit:
In other business, the board Skyped with the school district’s auditor, who said the audit went well. The biggest concern was with GASB 68, which is the Governmental Accounting Standards Board. The school district currently has a net pension liability of $24 million.
Although the school district does not have to pay this immediately, the audit brought it to the board’s attention.
To address this issue, the Wyoming pension rate is being increased to 16.62 percent, so the district will have to pay the unfunded portion through future contributions.