A school district accounts for its pension costs in a governmental fund. In a particular year, the district\'s actuary recommends that it contribute $18 million for the year, The district, however, had only budgeted $15 million and chooses to contribute only what was budgeted. The district is not legally or contractually required to follow the actuary\'s recommendation. What should the district report as its expenditure for the year? Please explain. Solution In the given Instance, The school district can report $ 15 million as its expenditure for the year and the difference of $3 million(18-15) to be provided as provisional expenditure for the corresponding Pension liability..

1. A school district accounts for its pension costs in a governmental fund. In a particular year, the
district's actuary recommends that it contribute $18 million for the year, The district, however,
had only budgeted $15 million and chooses to contribute only what was budgeted. The district is
not legally or contractually required to follow the actuary's recommendation. What should the
district report as its expenditure for the year? Please explain.
Solution
In the given Instance,
The school district can report $ 15 million as its expenditure for the year and the
difference of
$3 million(18-15) to be provided as provisional expenditure for the corresponding Pension
liability.