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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 tl1C first fiscal year ending after June 15, 1999: . Governments that were phase I governments for the purpose of implementation of Statement No. 34 - those with annual revenues of $] 00 million or more - are required to implement this Statement in financial statements for periods beginning after December 15~ 2006. . Governments that were phase 2 govc111ments for the purpose ofimplcmentation of Statement No. 34 - those with total annual revenues of $10 million or more but less than $100 million - are required to implement this Statement in financial ~tatements for periods heginning after December 15, 2007. . Governments that were phase 3 govemments for the purpose ofimplementatlon of Statement No. 34 - those with total annual revenues of1e~s than $10 million - are required to implement this Statement in financial statements for periods beginning after December 15, 2008. . Statement No. 45 gives the followmg summary, "-]n addition to pensions, many state and local governmental employers provide other post employment benefits (OPEB) as part ofthe total compensation offered to attract and retain the services of quallfied employees. OPEB includes post employment healthcare, as well as other forms of post employment benefits (for example, life insurance) when provlded separately from a pension plan. This Statement establishes standards for the measurement,recognition, and dispfay ofOPEB expense/expenditures and related 11abihties (assets), note disclosures, and, if applicable, required supplementary information (RSI) in the financial reports of state and local governmental employers." GASE Statement No. 46 - Net Assets Restricted by Legislation an amendment oIGASE Statement No. 34 This statement lS effective for periods beginning after June 15,2005. Statement No. 46 gives the followlng summary '""GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, requires that limitations on the llse 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 requirement 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 ifany of the resources raised by the enabling legislation are used for a purpose not specified by the enabling legislation or if a govemment 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, 1t 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 enabling legislation replaces existing enabling legislation or iflegaJ enforceability is reevaluated. Finally, this Statement requires governments to disclose the p0/1JOn of total net assets that is restricted by enabling legislation:' . 952.83.').9U9U . Fe" (152.H:lS.J261 WWW.ilenwp,L~.("OJl)