For most California public agencies funding Other Post-Employment Benefits (OPEB) through CERBT, there is a small difference between the 6/30/2017 assets originally reported and the final audited assets (Fiduciary Net Position, or FNP). Our clients have been asking what to do about it.
Even the State of California has the same issue. We’ve discussed it with the State Controller’s Office, and they’ve chosen to go with the amount originally reported by CERBT for the State’s CAFR.
Many of our clients have chosen the State’s approach, because their OPEB actuarial valuations were completed before the audited assets were announced by CalPERS in a 3/27/2018 circular letter.
Most of the differences in audited vs. reported assets are quite small. Your options include:
- using the CERBT assets originally reported, or
- waiting to finalize your OPEB actuarial valuation until audited CERBT assets are available.
If you ever want to change from option 1 to option 2 (or vice versa), you’ll need a one-time adjustment to your FNP reconciliation. Either way, you’ll want to check with your auditor.