Government and Not-for-Profit Accounting

The Westmont School District provides postemployment health care benefits through a cost-sharing plan administered through the State Teachers OPEB Plan (STOP). In its financial statements for its fiscal year ending June 30, 2018, STOP reported that the collective net liability of all member districts was $20,000,000 and the collective expense was $1,800,000 (all dollar amounts are in thousands). The district's share of contributions to the plan is 2 percent. 1.) In its financial statements for its fiscal year-ending June 30, 2017, a year before it had to implement the "new" GASB standard relating to OPEB, the district's required contribution to the plan was $30,000. As it had in prior years, the distric made its contribution in full and thereby did not have to report an OPEB liability. Suppose that in fiscal year ending 2018, when it had to implement the new standard, the district's percentage share of the required contributions remained th same. a. How much of an OPEB liability would the district now have to report? b. How much of an OPEB expense would it have to report