ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 62
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 1 - Description of Funds and Summary of Significant Accounting Policies (Continued)
Assets, Liabilities and Fund Equity (Continued)
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Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation
and sick pay benefits. Upon termination in good standing, the employee can receive
a cash benefit for the number of days accrued at the employee’s current wage rate.
The City records compensated absences in governmental funds, only if they have
matured, as expenditures for the amount accrued during the year that would normally
be liquidated with expendable, available financial resources. The City accrues
compensated absences in the period that they are earned in the government-wide
and enterprise fund financial statements.
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On-Behalf Payments for Fringe Benefits
The City receives on-behalf payments from the State of Florida to be used for the Police
Officers’ and Firefighters’ Retirement Plan Contributions. On-behalf payments to the
City total $279,562 for the fiscal year ended September 30, 2020. These payments are
currently recorded as revenue in the Pension Trust Fund.
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Other Postemployment Benefits
It is the City’s policy to allow retirees to participate in its employee health and life
insurance programs. The City accrues other postemployment benefit liability for the
cost of providing those benefits in the government-wide and enterprise fund financial
statements based on actuarial measurement annually.
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Net Pension Liability
In the government-wide and proprietary statements, net pension liability represents the
present value of projected benefit payments to be provided through the cost-sharing
and single employer defined benefit pension plans to current active and inactive
employees that is attributed to those employees' past periods of service (total pension
liability), less the amount of the pension plan's fiduciary net position. For purposes of
measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pension plans, pension expense, information about the fiduciary
net position, and additions to/deductions from fiduciary net position have been
determined on the same basis as they are reported by the plans. 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. The City allocated the net pension liability, deferred outflows for pensions,
deferred inflows for pensions, and pension expense to funds and functions/activities
based on their respective contributions made to the pension plans during the
measurement year.
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