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Wisconsin Health and Educational Facilities Authority
Notes to Financial Statements
June 30, 2019 and 2018

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources, and Net Position (continued)

6. Deferred inflows of resources
In addition to liabilities, the statement of net position will sometimes report a
separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of
net position that applies to a future period and so will not be recognized as an
inflow of resources (revenue) until that time. The Authority has one item that
qualifies for reporting in this category in the statements of net position. The
deferred inflow of resources relates to the Authority’s proportionate share of the
Wisconsin Retirement System pension plan and is deferred and amortized over
the expected remaining service lives of the pension plan participants.

7. Compensated absences
Vacation time and sick leave benefits are earned by employees of the Authority
based on time in service. Employees have the option to receive payment of a
portion of unused vacation time or can choose to use the accumulated vacation
time in the future. Employees also have the option to accumulate earned but
unused sick leave. An employee is eligible to receive payment of unused sick
leave upon eligible retirement. In both cases, the employee’s annual salary plus
any payment of accumulated leaves cannot exceed the maximum of the salary
range then-applicable to that employee as established by Wisconsin Statutes.

8. Pensions
For purposes of measuring the net pension liability (asset), deferred outflows of
resources and deferred inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of the Wisconsin Retirement
System (WRS) and additions to/deductions from WRS’ fiduciary net position
have been determined on the same basis as they are reported by the WRS. For
this purpose, 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.

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