2023d ABC Board Minutes - Laserfiche WebLink

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ORANGE COUNTY ALCOHOLIC BEVERAGE CONTROL BOARD (a component unit of Orange County Government) NOTES TO FINANCIAL STATEMENTS June 30,2023 and 2022 15. OTHER POST-EMPLOYMENT BENEFITS[cont'd] Amounts reported as deferred inflows of resources related to pensions will be recognized in OPEB expense as follows: Year Ending June 30: 2024 $ (34,392) 2025 2026 (70,443) (87,628) 2027 4,954 2028 1,831 Total $' (185,678) 16. RISI{MANAGEMENT The ABC Board,is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The ABC Board has property, general liability, auto liability,workmen's compensation, and employee health coverage. In addition,the ABC Board has liquor legal liability. In accordance with NC G.S. 1813-700(i), the ABC Board's insurance policies provide public official blanket bond coverage of$50,000 for each ABC Board member and blanket protection of$50,000 for employees designated as the general manager and finance officer. There have been no significant reductions in insurance coverage from coverage in the prior year and settled claims have not exceeded coverage in any of the past three(3)fiscal years. 17. ACCOUNTING PROVISION RECENTLY ADOPTED In June 2017, the Governmental Accounting Standards Board ("GASB") issued a new lease accounting standard, GASB 87, to more accurately portray lease obligations and increase the usefulness of governmental financial statements. Under this standard, the ABC Board is required to evaluate leases and recognize a lease asset and liability for each lease meeting certain criteria.The ABC Board adopted this standard on July 1,2021 using the modified retrospective approach. In May 2020,the GASB issued a new accounting standard,GASB 96,to more accurately portray subscription- based information technology arrangements("SBITAs")and increase the usefulness of governmental financial statements. Under this standard, the ABC Board is required to evaluate information technology software currently being used and recognize a subscription liability and an intangible asset representing the ABC Board's right to use the subscription asset. The standard provides an exception for short-term SBITAs with a maximum possible term of twelve(12)months or less. The ABC Board adopted this standard during the year- ended June 30,2023,and did not have any SBITAs requiring transition. I i -34-