Health Insurance Credit Program; and the additions to/deductions from the VRS Political Subdivision Health Insurance Credit Program’s net fiduciary position have been determined on the same basis as they were reported by VRS. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. (q) Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (r) New Accounting Pronouncements Adopted GASB Statement 95, Postponement of the Effective Dates of Certain Authoritative Guidance, (Statement 95), was intended to provide temporary relief to governments and other stakeholders in light of the coronavirus pandemic by postponing the effective dates of certain provisions in various Statements and Implementation Guides that first became effective, or are scheduled to be effective, for periods beginning after June 15, 2018, and later. (s) New Accounting Pronouncements Management has elected to disclose upcoming GASB pronouncements that may have an impact on the Authority. GASB Statement No. 84, Fiduciary Activities (Statement 84), will enhance consistency and comparability of financial statements among governments by establishing specific criteria for identifying activities that should be reported as fiduciary activities and clarifying whether and how business-type activities should report their fiduciary activities, and will enhance the value provided by the information reported in the financial statements for assessing government accountability and stewardship. Statement 84 will be effective for the Authority beginning with its fiscal year ending June 30, 2021. GASB Statement No. 87, Leases (Statement 87), will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model, and enhance the usefulness of the financial statements by requiring reporting of certain lease obligations. Statement 87 will be effective for the Authority beginning with its fiscal year ending June 30, 2022. GASB Statement No. 90, Majority Equity Interests (Statement 90), will improve financial reporting by providing essential information related to the presentation of majority equity interest in legally separate organizations and to improve the relevance of financial statement information for certain component units. Statement 90 will be effective for the Authority beginning with its fiscal year ending June 30, 2021. GASB Statement No. 91, Conduit Debt Obligations (Statement 91), will improve the consistency and comparability of reporting a government’s debt obligations and inform users of the potential impacts of any commitments issuers extend on the financial resources of issues and help users assess issuers’ roles in conduit debt obligations. Statement 91 will be effective for the Authority beginning with its fiscal year ending June 30, 2023. GASB Statement 96, Subscription-Based Information Technology Arrangements, (Statement 96), will improve financial reporting by establishing a definition for subscription-based information technology arrangements and providing uniform guidance for accounting and financial reporting for transactions that meet that definition, which will result in greater consistency and enhance the relevance and reliability of the financial statements. Statement 96 will be effective for the Authority beginning with its fiscal year ending June 30, 2023. The Authority has not yet determined the effect these GASB Statements will have on its financial statements. (t) Risks and Uncertainties On January 30, 2020, the World Health Organization declared the coronavirus pandemic a “Public Health Emergency of International Concern” and on March 11, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus pandemic include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus pandemic is expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Authority operates. While actions have been taken to mitigate its public health impact, it is unknown how long these conditions will last and many Authority activities have been impacted. NOTES TO FINANCIAL STATEMENTS FINANCIAL SECTION 41
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