The Belt Harris Pechacek management team attended Texas Municipal Retirement System’s (TMRS) 2014 annual training seminar in Austin November 17 and 18. TMRS presented many insightful and timely topics, including additional information on what TMRS has completed, and will complete, with respect to GASB 67/68.  Effective implementation of this standard will require a coordinated effort and communication stream between TMRS, TMRS Actuary, TMRS External Auditor, TMRS Employer Cities, and Employer Cities’ External Auditors.

GASB 67 is applicable and effective for the TMRS plan itself as of their 12/31/14 fiscal year end. TMRS has engaged the firm of Gabriel Roeder Smith & Company (GRS) to perform its actuarial valuations. In addition, the TMRS auditor will be providing an audit opinion on TMRS fiscal year 2014 financial statements, an audit of the Schedule of Changes in Fiduciary Net Position by employer and an opinion on the “schedule as a whole”, and a SOC-1 Type 2 Audit Report.

TMRS will serve as the sole communication point for Employer Cities and their Auditors. In order for all member cities to have timely access to information necessary for their 2015 fiscal year audit, it is imperative that they sign up for access to the City Portal. More information on this can be found at http://www.tmrs.com/city_portal.php

TMRS will be providing Employer Cities with a GASB 68 reporting package addressed to each employer, including a certification letter signed by GRS actuaries. The reporting package is expected to include the following: executive summary; financial schedules including a Schedule of Pension Expense, Schedule of Outflows and Inflows (current and prior periods), schedule of changes in net pension liability and related ratios (current period); glossary of terms; and certification of census data used in the valuation.

The GASB 68 reporting package is expected to be available via the City Portal in June 2015. GASB 68 is effective for fiscal years beginning after June 15, 2014. For TMRS Employer Cities, this will be fiscal year ending in June 2015 and later. Please provide the reporting package to your auditor as soon as it becomes available.

More information on TMRS and its plans for GASB 67/68 can be found on their website at http://www.tmrs.com/eye_on_GASB.php . Access to materials provided during the conference can found at http://www.tmrs.com/events.php

In addition, TMRS has created a dedicated email address for GASB 68 inquiries, pensionaccounting@tmrs.com.

For more information on your employer responsibilities or general information, please don’t hesitate to contact us. Additional resources are available on our website, www.texasauditors.com