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Indian River County, Florida <br />Board of County Commissioners <br />Notes To Financial Statements <br />Year Ended September 30, 2017 <br />NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued <br />K. Pensions/Net Pension Liability <br />In the Statement of Fund Net Position for Proprietary Funds, net pension liability represents the Board's <br />proportionate share of the net pension liability of the cost-sharing pension plans in which it participates. <br />This proportionate amount represents a share of the present value of projected benefit payments to be <br />provided through the cost-sharing pension plan to current active and inactive employees. The benefit <br />payments are attributable to those employees past periods of service, less the amount of the cost-sharing <br />pension plans' fiduciary net position. <br />The Board participates in both the Florida Retirement System (FRS), which operates a defined benefit <br />and compensation plan, and the Health Insurance Subsidy Program (HIS Program), which is a defined <br />benefit plan. For purposes of measuring the net pension liability, deferred outflows and inflows of <br />resources related to pensions, pension expense, and fiduciary net position are determined on the same <br />basis as the FRS. Benefit payments (including refunds of employee contributions) are recognized when <br />due and payable in accordance with the benefit terms. Investments are reported at fair value. <br />L. New Accounting Pronouncement <br />The Board implemented Governmental Accounting Standards Board (GASB) Statement No. 74, <br />Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This statement's <br />objective was to improve the usefulness of information about postemployment benefits other than <br />pensions (OPEB). <br />M. Unamortized Bond Discounts and Premiums <br />Bond discounts and premiums associated with the issuance of Proprietary Fund revenue bonds are <br />amortized over the life of the bonds according to the straight-line method. For financial reporting, <br />unamortized bond discounts and premiums are netted against the applicable long-term debt. Refer to <br />Note 9B for further information. <br />269 <br />