School Finance Hot Topics
FY13 State Aid OPEB ARC Credits:
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The draft FY13 State Aid OPEB ARC credits were emailed to the listserv on June 18,
2013. A copy of the schedule is attached as Attachment 1.
These credits apply to county boards of education and MCVCs only – the RESAs do not
receive any portion of the credits.
The amounts shown on Attachment 1 for MCVC fiscal agent counties include both the
county and MCVC portion of the credits. It is the responsibility of the fiscal agent county
to appropriately split the amount of the credit between the two entities.
 The accounting entry to record the FY13 State Aid OPEB ARC credits will be the same as
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FY12. There is no revenue recorded – the credits are simply a reduction of the OPEB
liability and OPEB ARC accrual (object 217).
In order to compare the credits in Attachment 1 with the PEIA RHBT online system, you
will need to click on the small excel icon in the get details column to download the detail
transactions for the month of June. The amount of the credit in the schedule will not
agree to the June total in the summary monthly view in the PEIA RHBT online system.
When reviewing the detail transactions for the month of June, you may see other
credits being applied to your county by PEIA. The following explanation was provided by
April Taylor of PEIA:
If you are an employee of a State agency or a BOE (or an eligible employee of a
local agency) with coverage through a PEIA plan and have accrued sick and/or
annual leave when you retire, you may use that accrued leave to extend your
employer-paid insurance coverage. You must be enrolled in a PEIA plan or a
PEIA-sponsored managed care plan or a group life insurance plan offered by PEIA
prior to your retirement to qualify. This extended coverage must be for full
months. Employees hired on or after July 1, 2001, are not eligible for this benefit.
GASB Statement Number 45: Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions
Conversion of a terminating employee’s unused sick leave credits to an
individual account to be used for payment of postemployment benefits on the
person’s behalf is a termination payment. When a terminating employee’s
unused sick leave credits are converted to provide or to enhance a defined
benefit OPEB, such as postemployment healthcare benefits, the resulting benefit
or increase in benefits should be accounted for in the calculation.
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As a result of GASB 45 determining the leave conversion used to enhance OPEB
benefits is included in the calculation for the total OPEB liability valuation and
PEIA’s policy to bill the employer the value of extended employer paid insurance
coverage for leave conversion, PEIA has determined employers are eligible to
have the value of retiree health leave conversion billed credited off their annual
OPEB liability.
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LEAs should review the coding for PEIA and OPEB expenses for FY13 to ensure that the
proper object codes were used. Please make any necessary corrections to the coding,
as proper coding is critical for indirect cost calculations, MOE calculations, and federal
reports prepared by the Office of School Finance.
 Object 211 – Regular Health/Accident/Life PEIA Premiums
 Object 217 – OPEB ARC
 Object 218 – OPEB Paid (the pay-as-you-go amount)
CPRB Change – HB 2800:
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HB 2800, as passed during the 2013 legislative session, specifies that “gross salary” is to be
allocated and reported in the fiscal year in which the work is done as it pertains to the Teacher’s
retirement system.
Per discussion with Darden Greene, CFO of CPRB, the annual retirement reports are officially
due on July 15th each year. Given that this new requirement will cause manual adjustment of
the retirement reports for virtually all counties, Darden said that counties unofficially have until
July 30th to submit the reports to CPRB. As long as the report is submitted by July 30th, county
boards should be “okay.”
The programmers in the Office of Information Systems are working to make a change to assist
counties in reporting gross salary on an accrual basis. The system will prompt counties for
additional payroll run numbers that need to be included or excluded from the standard program
build. Kim Harvey will notify counties when the programming changes are complete.
Pay for work performed in June but paid during July should be made on its own separate payroll
run. It should not be comingled with contract pay for services after July 1. Having its own
payroll run number will allow counties to utilize the new prompts to add that payroll run to the
FY13 report.
Payroll runs that are added to the FY13 annual report will need to be subtracted from the FY14
annual report so the wages are not reported twice.
Kim Harvey sent an email recommending that LEAs indicate on the retirement report coversheet
which payroll runs were being added. This should assist in preparation of the report for the
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subsequent year as it will be easy to identify the payroll run numbers that need to be subtracted
from the standard report build.
CPRB Change – Submission of Retirement File:
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Effective July 1, 2014, county boards of education no longer need to send paper copies
of the retirement file to CPRB in addition to the electronic submission.
Because the paper reports are no longer required, county boards must ensure that ALL
changes are made in the WVEIS maintenance file before submitting the electronic
retirement file to CPRB. Some counties have been making the changes on the paper
copies only – that will no longer be acceptable.
PEIA Change - New Field on Retirement Maintenance Screen:
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Per request from PEIA, WVDE has modified the retirement maintenance screen to
include an annual salary field. This field is calculated in the same manner as the annual
salary reported on the certified list of personnel.
As a result of this change, other fields were slightly rearranged.
This additional information that will be sent to PEIA with each report will assist PEIA in
tracking whether employees with annual salary increases have been moved into the
proper tier for PEIA premium purposes.
Proper Coding for Services Purchased from a RESA:
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As it is becoming more common for county boards of education to purchase services
from a RESA, proper coding of those expenditures is becoming more critical. The
proper object codes per the LEA Chart of Accounts is as follows:
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Object 511 is for Student Transportation purchased from another LEA in
the state, including RESAs.
 Object 564 is for Tuition paid to an LEA within the state, which would
include a RESA.
 Object 591 is for any other purchased service from an LEA within the state
(including RESAs).
Please review the coding of such transactions in your county and ensure that the proper
object codes are utilized.
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COUNTY BOARDS OF EDUCATION
OPEB CREDIT AMOUNTS FOR STATE-AID FUNDED EMPLOYEES
DUE TO SENATE BILL 469
FOR FY 2013
County
Barbour
Berkeley
Boone
Braxton
Brooke
2013
$
16,230.27
1,224,350.47
212,923.75
68,716.42
151,701.04
Cabell
Calhoun
Clay
Doddridge
Fayette
623,900.22
33,747.49
77,962.19
39,304.92
206,924.72
Gilmer
Grant
Greenbrier
Hampshire
Hancock
(16,902.99)
36,009.26
240,184.80
201,726.47
219,604.10
Hardy
Harrison
Jackson
Jefferson
Kanawha
92,870.95
538,798.18
273,725.03
489,288.99
1,529,824.05
Lewis
Lincoln
Logan
Marion
Marshall
86,361.77
159,453.21
264,579.12
466,736.95
164,982.81
Mason
McDowell
Mercer
Mineral
Mingo
219,815.83
(32,554.04)
451,311.98
235,048.81
222,779.04
Monongalia
Monroe
Morgan
Nicholas
Ohio
506,107.74
50,827.90
150,170.02
198,391.13
158,170.10
Pendleton
Pleasants
Pocahontas
Preston
Putnam
34,281.48
76,949.22
44,534.59
223,279.63
553,764.27
Raleigh
Randolph
Ritchie
Roane
Summers
613,806.59
181,326.24
36,159.98
94,119.19
38,576.66
Taylor
Tucker
Tyler
Upshur
Wayne
99,135.78
43,491.93
15,478.12
134,871.08
389,305.78
Webster
Wetzel
Wirt
Wood
Wyoming
2,682.76
35,134.79
36,985.64
801,847.78
159,663.62
Total
$
13,178,467.83
Notes: (1) These are the draft allocations that will be reviewed by PEIA's auditors. (2) The credit amounts presented
above are for counties and MCVCs only. The credit calculations take RESAs into account so none of the credit should
be allocated to a RESA by the fiscal agent.
OSF
6/18/2013
OPEB ARC Credits 13
ATTACHMENT #1