Page 69 - Hudson CAFR Report 2018

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

NOTE 2 - ACCOUNTABILITY AND COMPLIANCE - (Continued)

GASB Statement No. 81 improves the accounting and financial reporting for irrevocable split-interest
agreements by providing recognition and measurement guidance for situations in which a government
is a beneficiary of the agreement. The implementation of GASB Statement No. 81 did not have an
effect on the financial statements of the District.

GASB Statement No. 85 addresses practice issues that have been identified during implementation and
application of certain GASB Statements. This Statement addresses a variety of topics including issues
related to blending component units, goodwill, fair value measurement and application, and OPEB.
The implementation of GASB Statement No. 85 did not have an effect on the financial statements of
the District.

GASB Statement No. 86 improves consistency in accounting and financial reporting for in-substance
defeasance of debt by providing guidance for transactions in which cash and other monetary assets
acquired with only existing resources - resources other than the proceeds of refunding debt - are placed
in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves
accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to
financial statements for debt that is defeased in substance. The implementation of GASB Statement
No. 86 did not have an effect on the financial statements of the District.

A net position restatement is required in order to implement GASB Statement No 75. Net position at
July 1, 2017 has been restated as follows:

Net position as previously reported Governmental Business-Type
Deferred outflows - payments Activities Activities
subsequent to measurement date
Net OPEB liability $ (19,724,343) $ 146,799

Restated net position at July 1, 2017 156,992 7,057
(22,117,747) (424,206)

$ (41,685,098) $ (270,350)

Other than employer contributions subsequent to the measurement date, the District made no
restatement for deferred inflows/outflows of resources as the information needed to generate these
restatements was not available. The restatement had no effect on fund balances.

B. Deficit Fund Balances

Fund balances at June 30, 2018 included the following individual fund deficits:

Nonmajor funds Deficit
Title VI-B $ 73,978
Title I
EHA preschool grant 20,679
1,479
Classroom reduction
1,702

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.

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