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m . I~t ~lL~ City of Arden Hills April 14, 2006 Page Nineteen GASB Statement No. 45 - Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions This statement is effective in three phases based on a government's total annual revenues in the first fiscal year ending after June 15, ] 999: . Governments that were phase 1 governments for the purpose ofimplementation of Statement No. 34 - those with annual revenues of $] 00 minion or more - arc required to implement this Statement in financial statements for periods beginning aftt.T December 15, 2006. . Governments that were phase 2 governments for the purpose of implementation of Statement No. 34 ~ those with total annual revenues of$1 0 million or more but less than $100 milIlon - are required to implement this Statement in financial statements forpenods beginning after December 15,2007. . Governments that were phase 3 governments for the purpose of implementation of Statement No. 34 - those with total annual revenues of less than $10 mllJion - are required to implement this Statement in financial statements for periods beginning after December 15,2008. . Statement No. 45 gives the feHewing summary, "In addition to pensions, many state and local governmental employers provide other post employment benefits (OPEB) as part of the total compensation offered to attract and retain the services of qualified employees. OPEB includes post employment hcalthcare, as well as other forms of post employment benefits (for example, hfe insurance) when provided separately from a pension plan. This Statement establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local gove111mental employers." GASB Statement No. 46 - Net Assets Restricted by Legislation an amendment ofCASB Statement No. 34 This statement is effective for periods beginning after June 15,2005. Statement No. 46 gives the folJowing summary "'GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Gove111ments, requires that limitations on the use of net assets imposed by enabling legislation be reported as restricted net assets. In the process of applying this provision, some governments have had difficulty interpreting the n.:quirement that those restrictions be "legally enforceable." The confusion over this phrase has resulted in a diversity of practice that has diminished comparability. This Statement clarifies that a legally enforceable enabling legislation restriction is one that a party external to a government - such as citizens, public interest groups, or the judiciary - can compel a government to honor. The Statement states that the legal enforceability of an enabling legislation restriction should be reevaluated if any of the resources raised by the enabling legislation are used for a purpose not specified by the enabling legislation or if a government has other cause for reconsideration. Although the determination that a particular restriction is not legally enforceable may cause a government to review the enforceability of other restrictions, it should not necessarily lead a government to the same conclusion for all enabling legislation restrictions. This Statement also specifies the accounting and financial reporting requirements ifnew enabhng legislation replaces existing enabling legislation or ifIegal enforceability is reevaluated. Finally, this Statement requires governments to disclose the portion of total net assets that is restricted by enabling legislation." . 952.835.9090 . fax 952.835.3261 www.atcl[ICpa~.<:O/l1