DRS Email 15-001, GASB Census Data Testing

  • Notice No.: 15-001
  • Date: January 7, 2015
  • Applies to: All Employers
  • Subject: GASB Census Data Testing

Statements 67 and 68 issued by the Governmental Accounting Standards Board (GASB) change the requirements of accounting and financial reporting for pension plans and for state and local governments that participate in the pension plans. In response to these standards, the American Institute of Certified Public Accountants (AICPA) has issued guidance recommending auditors increase testing of the census data used by the plans. The testing supports the calculation of the total liability for each pension plan and the allocation of those liabilities to the participating employers.

DRS will follow the AICPA’s recommendations by increasing testing of census data in 2015. Since most of DRS’ census data originates in employer records, a representative sample of participating employers will be chosen for testing. The tests will consist of validating certain information in the payroll and human resource records of retirement system members. Generally, data to be tested may include date of birth, date of hire, reportable compensation, gender, and date of termination.

To ease the impact to employers, DRS has contracted with the State Auditor’s Office to perform this testing. If your organization is selected for testing, the State Auditor’s Office will notify you prior to the auditor’s visit. This will be an on-going process. While your organization may not be selected for testing this year, it may be selected in a future year.

The DRS website includes a GASB informational resource section for employers. This section includes links to the GASB statements as well as details about the information DRS will provide to help employers implement the requirements of GASB 68. To receive notification when the page is updated, please sign up here and check the “GASB Standards” box under the “Employer Information” subscription category. 

If you have questions about this notice, please reply to this email or call (360) 664-7865.