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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2015 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES—Continued D. Assets, Liabilities,Deferred Outflows/Inflows of Resources and Net Position or Fund Balances - Continued 11. Pensions/Net Pension Liability The County participates in both the Florida Retirement System (FRS), which operates a defined benefit and compensation plan, and the Health Insurance Subsidy Program (HIS), which is a defined benefit plan. For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, pension expense, and fiduciary net position are determined on the same basis as the FRS. Benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability represents the County's proportionate share of the net pension liability of the cost-sharing pension plans in which it participates. This proportionate amount represents a share of the present value of projected benefit payments to be provided through the cost-sharing pension plan to current active and inactive employees. The benefit payments are attributable to those employees past periods of service, less the amount of the cost-sharing pension plans' fiduciary net position. See Note 15 for additional information. 12. Change in Accounting Principles/New Accounting Pronouncement As a participating employer in the FRS, the County implemented Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. This statement requires employers participating in cost-sharing, multiple-employer defined benefit pension plans to report the employers' proportionate share of the net pension liabilities of the pension plans. The requirements of this Statement are being implemented prospectively, with the County reporting at October 1, 2014 its proportionate share of the actuarially determined liabilities for governmental activities of$36,285,228, deferred outflows of resources related to pensions of$6,763,726 and deferred inflows of resources related to pensions of$35,754,203. The net adjustment to beginning net position of the governmental activities was $65,275,705. For business-type activities, the County reported its proportionate share of the actuarially determined liabilities at October 1, 2014 of$2,572,977 deferred outflows of resources related to pensions of $391,891, and deferred inflows of resources related to pensions of$2,307,185. The net adjustment to beginning net position of the business-type activities was $4,488,271. See Note 20B for further explanation. 13. Unearned Revenues Unearned revenues represent revenues, which are available but unearned. At September 30, 2015, the total amount of unearned revenues reported on the statement of net position for the governmental activities is $505,172 and for the business-type activities is $29,673. 60