News

Update on the Michigan Public School Employees Retirement System 3% Healthcare Contribution

April 5, 2016 by Yeo & Yeo

The Office of Retirement Services (ORS) recently issued a 14-page document to update school districts (including academies and intermediate school districts) on the federal tax treatment of certain contributions made to the Michigan Public School Employees Retirement System (MPSERS) Healthcare Trust. This document was in response to the recent rulings made by the Internal Revenue Service (IRS) against certain protective claims for refunds filed by districts related to such contributions. However, be aware that the IRS has not issued an inclusive determination as to the federal tax treatment of the retiree healthcare contributions provided under the Michigan Public Act 300 of 2012.

The...

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Three Common Mistakes Found During School District Audits

March 7, 2016 by Yeo & Yeo

It has been a few months since the audit deadline and hopefully everyone has had a chance to breathe a sigh of relief after surviving the implementation of GASB 68. However, it is always important to identify ways that the district can continue to streamline the accuracy and efficiency of its financial records. In hopes of helping Michigan school districts in this process, we have identified the three audit issues that arose most frequently during the 2015 audit season. Don't worry, we left GASB 68 out of it!

Proper Recording of a Lease Agreement

School districts may enter into two different types of leasing transactions. It...

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Has Your Organization Done Everything It Needs to for Compliance with the Uniform Grant Guidance?

February 17, 2016 by Yeo & Yeo

If your organization receives federal funds, whether from a pass-through entity, such as the State of Michigan, or directly from the federal government, you need to be aware that the Uniform Grant Guidance 2 CFR 200 is now applicable. Watch our video to learn about those things you need to verify are in place now, before your auditor comes asking questions. Even if federal funds are below the threshold requiring an audit, the compliance requirements of the Uniform Grant Guidance, including many required policies and procedures, still apply.

We encourage you to watch Yeo & Yeo's Uniform Grant Guidance Webinar to stay informed. Our webinar will provide you with answers you have been searching for about Uniform Grant...

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FASB Revenue Recognition Training Webinar

February 3, 2016 by Yeo & Yeo

In 2015, FASB finalized the long-awaited revenue recognition project. This impacts GAAP financial statements for all for-profits and any not-for-profit entities that have exchange transaction revenues (non-contribution revenues.) Non-public companies must adopt the revenue recognition standard for years beginning after December 15, 2018. FASB is still working through implementation questions that have come up and additional guidance is still being issued.

Why the long implementation period? It's simple; many entities will need to make changes in their accounting and other computer systems to properly track and aggregate the data needed to implement these changes.

What should...

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First Pensions, Now OPEB: What School Districts Need to Know About GASB 74 & 75

February 2, 2016 by Yeo & Yeo

The Governmental Accounting Standards Board (GASB) issued two new statements that are very similar to the pension standards GASB 67 and 68. The two new statements are GASB 74 and 75.

GASB 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans

  • Establishes new accounting and financial reporting requirements for school districts whose employees are provided with other postemployment benefits (OPEB).
  • Includes defined benefit and defined contribution plans administered through trusts.
  • Effective for financial statements for fiscal...

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Update on 3% Contribution to Education Retiree Healthcare Fund

January 14, 2016 by Yeo & Yeo

Action required if your district filed claims with the IRS regarding Michigan Public Act 300 of 2012

At the end of December, the Office of Retirement Services (ORS) sent notification that the Internal Revenue Service (IRS) will soon issue determinations on certain protective claims (Form 941-X*) filed by individual districts in regard to the federal tax treatment of the retiree healthcare contributions (HCC) remitted under Public Act 300 of 2012. While no official determinations have been issued, the IRS has informally indicated that it will be considering the retiree HCC under both Public Act 75 of 2010 and Public Act 300 of 2012 as exempt from federal income taxes. Furthermore, ORS announced that...

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