2005 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 Compensated Absences Employees earn vacation credit at the rate of one and three-quarter working days for each month of service. Up to ninety days of vacation leave credits can be accumulated per employee. In addition,employees who work overtime can elect to take compensatory time off instead of overtime pay. The time off is earned at the rate of one and a half hours for each hour of overtime worked. There is no statutory limit to the amount of compensatory time off an employee can accumulate. Both compensatory time off and vacation credits are converted to pay upon termination of employment. The amounts expected to be liquidated with expendable available resources are accrued in the appropriate funds and the amounts payable from future resources are recorded in the government-wide statement of net assets along with the estimated liability for FICA taxes and employers' retirement contributions on those amounts. All accumulated unpaid vacation and compensatory time off at June 30,2005 are expected to be liquidated with future expendable resources. In prior years,the following funds have been used to liquidate this liability for compensated absences: General Fund,Highway Fund,Sewer Fund,Solid Waste Fund, Vehicle Disposal Fund,Golf Course Fund and the Housing Agency. Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and is not convertible to pay upon termination of employment. Accumulated sick leave at June 30,2005 totaled$53,682,000 for the primary government. Leases Leases transferring substantially all of the risks and benefits of ownership are recorded as capital leases;other leases are operating leases(see Note 8). Capital leases are recorded as capital asset additions at their estimated fair market value at the inception of the lease and the related 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. Retirement Plan Contributions The County's contribution to the Employees'Retirement System of the State of Hawaii is based upon an actuarial computation and includes the normal cost plus the level annual payment required to amortize the unfunded actuarial accrued liability over a remaining period of twenty-six years from July 1,2003.The County's policy is to fund its actuarially determined required contribution annually(see Note 13). -52 -