ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 71
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
■
Assets, Liabilities, and Fund Equity (Continued)
Net Pension Liability
In the government-wide and proprietary statements, net pension liability represents the
present value of projected benefit payments to be provided through the cost-sharing
and single-employer defined benefit pension plans to currently active and inactive
employees that is attributed to those employees' past periods of service (total pension
liability), less the amount of the pension plan's fiduciary net position. To measure the
net pension liability, deferred outflows of resources and deferred inflows of resources
related to pension plans, pension expense, information about the net fiduciary position,
and additions to/deductions from the net fiduciary position have been determined on
the same basis as the plans report them, for this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable by the benefit
terms. Investments are reported at fair value. The City allocated the net pension liability,
deferred outflows for pensions, deferred inflows for pensions, and pension expense to
funds and functions/activities based on their respective contributions made to the
pension plans during the measurement year.
■ Deferred Outflows and Inflows of Resources
In addition to assets, the statement of financial position reports a separate section for
deferred outflows of resources. This individual financial statement element, deferred
outflows of resources, represents a consumption of net position that applies to a future
period(s) and will not be recognized as an outflow of resources (expense/expenditure)
until then. The deferred outflows of resources reported in the City’s statement of the net
The position represents differences between expected and actual economic
experience, changes in actuarial assumptions, the net difference between projected
and actual earnings on investments, changes in the proportion and differences between
the City’s contributions and proportionate share of contributions, and the City’s
contributions after the measurement date, relating to the City’s defined benefit pension
plans. The city also has deferred outflows of resources due to the implementation of
GASB 75 related to the OPEB Plan. These amounts will be recognized as expenses in
future years.
In addition to liabilities, the statement of financial position reports a separate section for
deferred inflows of resources. This individual financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future
period(s) and will not be recognized as an inflow of resources (revenue) until that time
the deferred inflows of resources reported in the City’s statement of net position
represent the difference between expected and actual economic experience and
changes in the proportion and differences between the City’s contributions and
proportionate share of contributions relating to the City’s defined benefit pension plans.
The city also has deferred inflows of resources due to the implementation of GASB 75
related to the OPEB Plan. These amounts will be recognized as reductions in expenses
in future years.
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