COM 0770.000 2020-2022 - Laserfiche WebLink

Home

COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 present value of the future minimum lease obligations is recorded as long-term debt. Operating lease expenditures and expenses are recognized when the lease obligation is paid. Pensions For purposes of measuring the net pension liability,deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense,information about the fiduciary net position of the Employees' Retirement System of the State of Hawaii (ERS) and additions to and deductions from ERS's fiduciary net position have been determined on the same basis as they are reported by ERS. 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. Other Postemployment Benefits(OPEB) For the purposes of measuring the net OPEB liability,deferred outflows or resources and deferred inflows of resources related to OPEB, and OPEB expense,information about the fiduciary net position of the Hawaii Employer-Union Health Benefits Trust Fund("EUTF") and additions to/deductions from EUTF's fiduciary net position have been determined on the same basis as they are reported for EUTF. For this purpose,EUTF recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value,except for investments in commingled and money market funds,which are reported at net asset value (NAV). The NAV is based on the fair value of the underlying assets held by the respective fund less its liabilities. Operating Revenues and Expenses Revenues and expenses are distinguished between operating and nonoperating items for the proprietary funds. Operating revenues generally result from providing services in connection with the proprietary funds' principal ongoing operations. The principal operating revenues of the proprietary funds are fees charged to residents for rent and rental subsidies received from the federal government. Operating expenses include the costs associated with providing housing for tenants, such as utilities,lease rent, and maintenance and repairs; administrative expenses; and depreciation on capital assets. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses. Use of Estimates The preparation of the basic financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources,liabilities, and deferred inflows of resources, as well as disclosure of contingent assets and liabilities at the date of the financial statements, and the - 58 -