For/On Behalf Payments Made to CPRB for Unfunded Liability
GASB 24 establishes standards of accounting and financial reporting for on behalf payments for fringe
benefits and salaries. GASB 24 states, in part:
On behalf payments for fringe benefits and salaries are direct payments made by one entity (the
paying government) to a third-party recipient for the employees of another legally separate
entity (the employer government). On behalf payments include pension plan contributions,
employee health and life insurance premiums, and salary supplements or stipends. For example,
a state government may make contributions directly to a pension plan for elementary and
secondary school teachers employed in public school districts within the state.
An employer government should recognize revenue and expenditures for on behalf payments for
fringe benefits and salaries. The employer government should recognize revenue equal to the
amounts that third-party recipients of the payments received and that are receivable at year end
for the current fiscal year.
If the employer government is not legally responsible for the payment, it should recognize
expenditures equal to the amount recognized as revenue.
An employer government is not required to allocate on behalf payments to individual funds.
However, the employer government may choose to allocate a portion of the revenue and
expenditures to one or more funds based on the related salaries charged in those funds. If an
employer government reports using more than one fund and a single fund is used to report on
behalf payments, that fund usually should be the general fund.
Employer governments should disclose in the notes to financial statements the amounts
recognized for on behalf payments for fringe benefits and salaries.
The Office of School Finance will provide to each district and MCVC the amount of for/on behalf
payments made by the State for retirement benefits for both the estimated current cost and the
unfunded liability portion.
An adjusting entry will be needed to record the for/on behalf payments for the unfunded liability
portion as follows:
Dr.
11..XXXXX.235
Cr.
11..03917.009
Retirement Contributions – Unfunded Liability
For/On Behalf of LEA Retirement Allocation
for Unfunded Liability
(use Fund 13 for MCVCs)
Alert! These are
NEW account codes!
$6,500
$6,500
Where do the numbers come from?
The total amount of the revenue to be recognized as a for/on behalf payment for retirement unfunded
liability will be provided by The Office of School Finance each year based on the total amount
appropriated for retirement under the Public School Support Program.
The total amount recorded for the retirement contribution expenditure for unfunded liability will equal
the revenue amount. However, the expenditures must be broken down into the functions that are
reported on the financial statements. You can accomplish that by applying the percentage of current
retirement contributions by function to the total current retirement cost and multiply by the total of the
for/on behalf payments for the unfunded liability.
Retirement in
objects 231
and 233
Instruction
Support - Students
Support - Instructional staff
District administration
School administration
Business services
Operation & Maintenance
Student Transportation
Food services
Community services
Total
For or on behalf payments for unfunded liability
July 2011
500
300
250
200
180
150
120
170
140
20
2,030
Percent to Total
24.6%
14.8%
12.3%
9.9%
8.9%
7.4%
5.9%
8.4%
6.9%
0.9%
Allocation of
Unfunded
Liability
1,599
962
800
644
579
481
384
546
449
56
6,500
COUNTY BOARDS OF EDUCATION
RETIREMENT ALLOCATION FOR BUDGETING PURPOSES INCLUDING ON BEHALF PAYMENTS FOR UNFUNDED LIABILITY
(BASED ON FINAL COMPUTATIONS - HB4588 WITH 60% PHASE-IN)
FOR THE 2010-11 YEAR
County
Employer's
Average
Contribution
Rate
Retirement
Allocation
For Budgeting
Estimated.
Current Cost
MCVC
Retirement
Allocation
for
Current Cost
Retirement
Allocation
For Budgeting
Remainder for
Unfunded Liability
Barbour
Berkeley
Boone
Braxton
Brooke
Cabell
Calhoun
Clay
Doddridge
Fayette
Gilmer
Grant
Greenbrier
Hampshire
Hancock
Hardy
Harrison
Jackson
Jefferson
Kanawha
Lewis
Lincoln
Logan
Marion
Marshall
Mason
McDowell
Mercer
Mineral
Mingo
Monongalia
Monroe
Morgan
Nicholas
Ohio
Pendleton
Pleasants
Pocahontas
Preston
Putnam
Raleigh
Randolph
Ritchie
Roane
Summers
Taylor
Tucker
Tyler
Upshur
Wayne
Webster
Wetzel
Wirt
Wood
Wyoming
10.38%
9.39%
10.34%
9.48%
10.85%
10.17%
10.03%
9.64%
10.66%
9.90%
9.50%
10.28%
10.12%
9.81%
10.50%
10.04%
10.45%
10.10%
9.43%
10.14%
9.80%
11.11%
10.60%
10.47%
10.77%
9.58%
11.19%
10.55%
10.85%
10.02%
10.06%
9.65%
9.49%
10.48%
10.24%
10.94%
10.65%
10.67%
10.65%
10.02%
10.23%
10.96%
9.66%
10.19%
11.33%
10.94%
10.26%
11.11%
10.50%
9.65%
10.16%
11.06%
9.43%
10.66%
11.57%
1,119,527
6,522,464
2,062,542
933,212
1,651,049
5,397,135
452,675
838,572
563,782
2,847,442
403,694
818,122
2,343,700
1,473,131
1,985,657
966,223
5,059,773
2,174,271
3,172,232
12,273,194
1,125,008
1,753,300
2,833,506
3,663,303
2,326,129
1,758,864
1,824,432
4,262,227
2,133,153
1,915,632
4,489,649
766,411
972,461
1,854,820
2,346,121
594,371
598,222
616,988
2,131,834
4,105,077
5,302,215
2,129,937
661,559
1,080,424
756,957
1,174,215
531,332
718,112
1,734,129
3,010,613
668,752
1,418,261
401,980
6,180,815
2,137,596
128,379
63,607
58,218
116,895
93,576
These are the
amounts already being recognized inthe financial
statements as the
retirement allocation
in revenue source code 03911.
52,176
46,709
-
3,144,661
18,321,073
5,793,513
2,621,317
4,637,663
15,160,115
1,271,527
2,355,481
1,583,618
7,998,234
1,133,944
2,298,038
6,583,263
4,137,906
5,577,550
2,714,042
14,212,492
6,107,351
8,910,543
34,474,407
3,160,056
4,924,878
7,959,089
10,289,921
6,533,908
4,940,506
5,124,682
11,972,250
5,991,854
5,380,855
12,611,060
2,152,786
2,731,564
5,210,039
6,590,064
1,669,540
1,680,357
1,733,069
5,988,149
11,530,829
14,893,492
5,982,820
1,858,266
3,034,823
2,126,231
3,298,275
1,492,469
2,017,118
4,871,028
8,456,568
1,878,470
3,983,780
1,129,129
17,361,408
6,004,336
Total
10.24%
123,036,802
559,560
345,600,407
OSF
7/06/11
Ret Allocation-Final Comps With Unfunded 11 (HB4588 W 60% Phase-in)
MCVC
Retire Allocation
For Budgeting
Remainder for
Unfunded Liability
358,420
177,584
162,538
326,358
261,254
These are the- amounts
that will be recognized
as additional for/ on
behalf payments made
by the State to- CPRB
on behalf of each
BOE
and MCVC for- the
- of the
unfunded liability
TRS. Use revenue
source code 03917
for
the revenue and
- object
code 235 for the
expenditure.
145,670
130,407
1,562,231