Page 68 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017

NOTE 2 - ACCOUNTABILITY AND COMPLIANCE - (Continued)

GASB Statement No. 78 establishes accounting and financial reporting standards for defined benefit
pensions provided to the employees of state or local governmental employers through a cost-sharing
multiple-employer defined benefit pension plan (cost-sharing pension plan) that meets the criteria in
paragraph 4 of Statement 68 and that (a) is not a state or local governmental pension plan, (b) is used
to provide defined benefit pensions both to employees of state or local governmental employers and to
employees of employers that are not state or local governmental employers, and (c) has no
predominant state or local governmental employer (either individually or collectively with other state
or local governmental employers that provide pensions through the pension plan). The implementation
of GASB Statement No. 78 did not have an effect on the financial statements of the District.

GASB Statement No. 80 improves the financial reporting by clarifying the financial statement
presentation requirements for certain component units. This Statement applies to component units that
are organized as not-for-profit corporations in which the primary government is the sole corporate
member. The implementation of GASB Statement No. 80 did not have an effect on the financial
statements of the District.

GASB Statement No. 82 addresses issues regarding (1) the presentation of payroll-related measures in
required supplementary information, (2) the selection of assumptions and the treatment of deviations
from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the
classification of payments made by employers to satisfy employee (plan member) contribution
requirements. The implementation of GASB Statement No. 82 did not have an effect on the financial
statements of the District.

B. Deficit Fund Balances

Fund balances at June 30, 2017 included the following individual fund deficits:

Nonmajor funds Deficit
Title VI-B $ 66,214
Title I 20,626
EHA preschool grant 2,496
Classroom reduction 206
Debt service 1,500

The general fund is liable for any deficit in these funds and provides transfers when cash is required,
not when accruals occur. The deficit fund balances resulted from adjustments for accrued liabilities.

NOTE 3 - DEPOSITS AND INVESTMENTS

State statutes classify monies held by the District into three categories.

Active deposits are public deposits necessary to meet current demands on the treasury. Such monies must
be maintained either as cash in the District treasury, in commercial accounts payable or withdrawable on
demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.

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