State of North Carolina BALANCE SHEET GOVERNMENTAL FUNDS 54
State of North Carolina BALANCE SHEET GOVERNMENTAL FUNDS Exhibit B-1
June 30, 2016 (Dollars in Thousands) General Fund
Highway Trust Fund
Highway Fund
Other Governmental Funds
Total Governmental Funds
$
$
Assets Cash and cash equivalents (Note 3)................................... Investments (Note 3).......................................................... Securities lending collateral (Note 3)................................... Receivables, net: (Note 4) Taxes receivable.............................................................. Accounts receivable......................................................... Intergovernmental receivable............................................ Interest receivable............................................................ Contributions receivable................................................... Other receivables............................................................. Due from other funds (Note 10)........................................... Due from component units (Note 18)................................... Inventories........................................................................... Advances to other funds (Note 10)...................................... Advances to component units.............................................. Notes receivable, net : (Note 4)........................................... Securities held in trust......................................................... Restricted/designated cash and cash equivalents (Note 3).. Restricted investments (Note 3)..........................................
$
Total Assets........................................................................
3,897,238 5,820 334,923
$
388,307 — 23,305
$
1,432,521 — 80,094
856,363 247,462 54,777
6,574,429 253,282 493,099
1,987,485 193,249 839,791 6,424 76 — 69,529 8 78,886 — — 25,504 389 153,120 2,009
125,935 15,800 59,474 325 — 2,831 11,450 — 86,654 — 3,645 801 491 — 110,107
53,284 224 159 926 — — 12,964 — — 26,118 — 42 — — —
7,181 24,269 1,385 1,107 — — 12,127 — 21,719 — — 43,381 43,569 306,964 409,127
2,173,885 233,542 900,809 8,782 76 2,831 106,070 8 187,259 26,118 3,645 69,728 44,449 460,084 521,243
7,594,451
829,125
1,606,332
2,029,431
12,059,339
37,287 2,066,718
120,448 $ 12,179,787
Deferred Outflows of Resources Forward funded state aid..................................................... Total Assets and Deferred Outflows....................................
$
83,161 7,677,612
$
— 829,125
$
— 1,606,332
$
Liabilities Accounts payable and accrued liabilities: Accounts payable............................................................. Accrued payroll................................................................. Intergovernmental payable............................................... Claims payable................................................................. Medical claims payable....................................................... Tax refunds payable............................................................ Obligations under securities lending.................................... Due to fiduciary funds (Note 10).......................................... Due to other funds (Note 10)............................................... Due to component units (Note 18)....................................... Unearned revenue............................................................... Deposits payable................................................................. Funds held for others...........................................................
$
Total Liabilities.....................................................................
182,933 1,706 692,087 — 948,950 989,470 334,923 89,776 42,952 38,812 408,704 2,719 11,454
$
279,589 14,749 160,612 — — 4,184 23,305 6,766 5,342 — 16,799 — 27,802
$
53,276 — 4,549 — — 1,709 80,094 — 11,233 — — — —
$
33,982 46 7,338 62,795 125 — 54,777 — 402 14,430 1,052 4 43,660
$
549,780 16,501 864,586 62,795 949,075 995,363 493,099 96,542 59,929 53,242 426,555 2,723 82,916
3,744,486
539,148
150,861
218,611
4,653,106
Unavailable revenue............................................................
171,363
2,323
—
8,395
182,081
Fund Balances (Note 11) Nonspendable..................................................................... Restricted............................................................................ Committed........................................................................... Assigned............................................................................. Unassigned.........................................................................
84,122 162,418 1,518,439 376,677 1,620,107
86,654 113,331 87,669 — —
— — 1,455,471 — —
131,921 954,203 752,422 1,166 —
302,697 1,229,952 3,814,001 377,843 1,620,107
1,839,712 2,066,718
7,344,600 $ 12,179,787
Deferred Inflows of Resources
Total Fund Balances............................................................ Total Liabilities, Deferred Inflows and Fund Balances..........
$
3,761,763 7,677,612
$
287,654 829,125
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
54
1,455,471 1,606,332
$
State of North Carolina RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION Exhibit B-1a
June 30, 2016 (Dollars in Thousands)
Total fund balances - governmental funds (see Exhibit B-1)
$
7,344,600
Amounts reported for governmental activities in the Statement of Net Position are different because:
–
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds (see Note 5). These consist of: Cost of capital assets (excluding internal service funds)........................................................... Less: Accumulated depreciation (excluding internal service funds).......................................... Net capital assets...............................................................................................................
$ 47,975,709 (695,384) 47,280,325
– Some assets, such as receivables, are not available soon enough to pay for current period expenditures and thus, are offset by unavailable revenue in the governmental funds.
182,081
– Equity interest in component unit is not a financial resource and, therefore, is not reported in the funds.
148,751
– Net pension asset, resulting from contributions in excess of the annual required contribution are not financial resources and, therefore, are not reported in the funds (see Note 12).
4,504
– Deferred losses on refundings are reported in the Statement of Net Position (to be amortized as interest expense) but are not reported in the funds.
112,080
– Deferred outflows for pensions (excluding internal service funds) are reported in the Statement of Net Position but are not reported in the funds (see Note 12).
357,392
–
–
Long-term debt instruments, such as bonds and notes payable, are not due and payable in the current period and, therefore, the outstanding balances are not reported in the funds (see Note 8). Also, unamortized debt premiums are reported in the Statement of Net Position but are not reported in the funds. These balances consist of: General obligation bonds payable............................................................................................. Certificates of participation payable........................................................................................... Limited obligation bonds payable.............................................................................................. GARVEE bonds payable........................................................................................................... Unamortized debt premiums (to be amortized as interest expense)......................................... Notes payable............................................................................................................................ Capital leases payable (excluding internal service funds)......................................................... Net long-term debt............................................................................................................. Other liabilities not due and payable in the current period and, therefore, not reported in the funds (see Note 8 as applicable) consist of: Accrued interest payable........................................................................................................... Compensated absences (excluding internal service funds)...................................................... Obligations for workers' compensation...................................................................................... Death benefit payable................................................................................................................ Pollution remediation payable.................................................................................................... Claims and judgments payable................................................................................................. Net pension liability (excluding internal service funds).............................................................. Total other liabilities...........................................................................................................
– Deferred inflows for pensions (excluding internal service funds) are reported in the Statement of Net Position but are not reported in the funds (see Note 12).
–
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position (see Exhibit B-3).
Total net position - governmental activities (see Exhibit A-1)
(3,038,665) (124,820) (1,997,070) (529,755) (505,737) (27,198) (19,646) (6,242,891)
(44,661) (439,484) (201,906) (40) (6,748) (734,003) (927,978) (2,354,820)
(221,541)
277,905 $ 46,888,386
The accompanying Notes to the Financial Statements are an integral part of this statement.
55
State of North Carolina STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Exhibit B-2
For the Fiscal Year Ended June 30, 2016 (Dollars in Thousands) General Fund
Revenues Taxes: Individual income tax................................................... Corporate income tax.................................................. Sales and use tax....................................................... Gasoline tax................................................................ Franchise tax.............................................................. Highway use tax.......................................................... Insurance tax.............................................................. Beverage tax............................................................... Tobacco products tax.................................................. Other taxes................................................................. Federal funds................................................................. Local funds.................................................................... Investment earnings....................................................... Interest earnings on loans.............................................. Sales and services......................................................... Rental and lease of property.......................................... Fees, licenses, and fines............................................... Tobacco settlement........................................................ Contributions, gifts, and grants....................................... Funds escheated........................................................... Federal recovery funds.................................................. Miscellaneous................................................................ Total revenues.........................................................
$ 11,980,791 1,117,999 7,177,819 — 524,967 — 503,413 379,986 286,968 181,993 15,138,975 155,486 45,833 442 171,427 11,212 762,078 137,230 39,755 — 45,220 157,489 38,819,083
Expenditures Current: General government................................................... Primary and secondary education............................... Higher education......................................................... Health and human services......................................... Economic development............................................... Environment and natural resources............................. Public safety, corrections, and regulation.................... Transportation............................................................. Agriculture................................................................... Capital outlay................................................................. Debt service: Principal retirement..................................................... Interest and fees......................................................... Debt issuance costs.................................................... Total expenditures.................................................... Excess revenues over (under) expenditures................... Other Financing Sources (Uses) Refunding bonds issued................................................. Other debt issued........................................................... Premium on debt issued................................................ Payment to refunded bond escrow agent....................... Sale of capital assets..................................................... Insurance recoveries...................................................... Transfers in (Note 10).................................................... Transfers out (Note 10).................................................. Total other financing sources (uses)........................ Net change in fund balances.......................................... Fund balances — July 1, as restated (Note 22)............. Fund balances — June 30.............................................
Highway Fund
$
$
— — — 1,345,677 — — — — — — 1,094,379 25,763 6,267 — 3,835 5,105 734,275 — 16,284 — 151,532 6,853 3,389,970
$
Highway Trust Fund
Other Governmental Funds
— — — 565,864 — 728,580 — — — — — 606 9,298 153 9 1,713 124,668 — 874 — — 3,894 1,435,659
$
— — 7,929 27,098 — — — — — 113,203 92,490 7,931 26,716 499 150,612 2,876 192,381 — 45,304 75,105 — 8,461 750,605
Total Governmental Funds
$
11,980,791 1,117,999 7,185,748 1,938,639 524,967 728,580 503,413 379,986 286,968 295,196 16,325,844 189,786 88,114 1,094 325,883 20,906 1,813,402 137,230 102,217 75,105 196,752 176,697 44,395,317
1,096,432 10,381,474 3,896,229 18,421,703 394,053 379,539 2,760,015 — 166,187 —
— — — — — — — 3,351,026 — —
— — — — — — — 962,199 — —
40,349 — 105,938 79,673 13,522 147,909 255,145 — 17,202 144,674
1,136,781 10,381,474 4,002,167 18,501,376 407,575 527,448 3,015,160 4,313,225 183,389 144,674
478,045 255,909 833 38,230,419 588,664
69,544 26,203 466 3,447,239 (57,269)
37,583 11,340 96 1,011,218 424,441
2,456 51 3 806,922 (56,317)
587,628 293,503 1,398 43,495,798 899,519
329,360 1,875 88,066 (416,509) 55,738 1,062 804,754 (198,070) 666,276 1,254,940 2,506,823 3,761,763
— — — — 11,577 7,602 31,044 (79,076) (28,853) (86,122) 373,776 287,654
— — — — 597 — — (90,915) (90,318) 334,123 1,121,348 $ 1,455,471
— — — — 2,351 217 200,363 (147,904) 55,027 (1,290) 1,841,002 1,839,712
329,360 1,875 88,066 (416,509) 70,263 8,881 1,036,161 (515,965) 602,132 1,501,651 5,842,949 7,344,600
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
56
$
$
State of North Carolina RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Exhibit B-2a
For the Fiscal Year Ended June 30, 2016 (Dollars in Thousands) Net change in fund balances - total governmental funds (see Exhibit B-2)
$
1,501,651
Amounts reported for governmental activities in the Statement of Activities are different because:
–
–
Capital outlays are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: Capital outlays (including construction-in-progress) ............................................................. Less: Depreciation expense (excluding internal service funds) ............................................ Net capital outlay adjustment ........................................................................................
$
2,580,825 (880,212) 1,700,613
Proceeds from the sale of capital assets increase financial resources in the funds, whereas in the Statement of Activities only the gain or loss on the sale is reported. This adjustment reduces the proceeds by the book value of the capital assets sold.
(104,133)
– Donations of capital assets do not appear in the governmental funds because they are not financial resources, but increase net position in the Statement of Activities.
9,878
– Retirement Contributions (excluding internal service funds) to defined benefit pension plans in the current fiscal year are not included on the Statement of Activities.
–
–
Long-term debt proceeds provide current financial resources to governmental funds, while the repayment of the related debt principal consumes those financial resources. These transactions, however, have no effect on net position. Also, governmental funds report the effect of premiums and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. In the current period, these amounts consist of: Debt issued or incurred: Capital leases issued ........................................................................................................ Refunding bonds issued ................................................................................................... Premiums on debt issued ................................................................................................. Principal repayments: Bonds, notes, and similar debt ......................................................................................... Capital leases (excluding internal service funds) .............................................................. Payments to escrow agent for refundings ........................................................................ Net debt adjustments ....................................................................................................
329,474
(1,875) (329,360) (88,066) 584,852 2,776 416,509 584,836
Some revenues in the Statement of Activities do not provide current financial resources and, therefore, are deferred inflows of resources in the funds. Also, revenues related to prior periods that became available during the current period are reported in the funds but are eliminated in the Statement of Activities. This amount is the net adjustment.
(2,107)
– Change in equity interest of component unit resulting from changes in stockholder's equity are not current financial resources, and therefore, are not recognized in the funds. – Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not recognized in the funds. Also, some payments related to prior periods are recognized in the funds but are eliminated in the Statement of Activities. In the current period, the net adjustments consist of: Accrued interest ................................................................................................................... Compensated absences (excluding internal service funds) ................................................. Workers' compensation ........................................................................................................ Death benefit ........................................................................................................................ Pension expense (excluding internal service funds) ............................................................. Pollution remediation ............................................................................................................ Claims and judgments .......................................................................................................... Amortization of deferred amounts ........................................................................................ Net expense accruals ...................................................................................................
–
(344)
6,920 10,893 257 380 (102,804) (327) 3,300 87,069 5,688
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenues of internal service funds are included with governmental activities in the Statement of Activities (see Exhibit B-4).
Change in net position - governmental activities (see Exhibit A-2)
40,733 $
The accompanying Notes to the Financial Statements are an integral part of this statement.
57
4,066,289
June 30, 2016 (Dollars in Thousands) General Fund
Highway Trust Fund
Highway Fund
Other Governmental Funds
Total Governmental Funds
$
$
Assets Cash and cash equivalents (Note 3)................................... Investments (Note 3).......................................................... Securities lending collateral (Note 3)................................... Receivables, net: (Note 4) Taxes receivable.............................................................. Accounts receivable......................................................... Intergovernmental receivable............................................ Interest receivable............................................................ Contributions receivable................................................... Other receivables............................................................. Due from other funds (Note 10)........................................... Due from component units (Note 18)................................... Inventories........................................................................... Advances to other funds (Note 10)...................................... Advances to component units.............................................. Notes receivable, net : (Note 4)........................................... Securities held in trust......................................................... Restricted/designated cash and cash equivalents (Note 3).. Restricted investments (Note 3)..........................................
$
Total Assets........................................................................
3,897,238 5,820 334,923
$
388,307 — 23,305
$
1,432,521 — 80,094
856,363 247,462 54,777
6,574,429 253,282 493,099
1,987,485 193,249 839,791 6,424 76 — 69,529 8 78,886 — — 25,504 389 153,120 2,009
125,935 15,800 59,474 325 — 2,831 11,450 — 86,654 — 3,645 801 491 — 110,107
53,284 224 159 926 — — 12,964 — — 26,118 — 42 — — —
7,181 24,269 1,385 1,107 — — 12,127 — 21,719 — — 43,381 43,569 306,964 409,127
2,173,885 233,542 900,809 8,782 76 2,831 106,070 8 187,259 26,118 3,645 69,728 44,449 460,084 521,243
7,594,451
829,125
1,606,332
2,029,431
12,059,339
37,287 2,066,718
120,448 $ 12,179,787
Deferred Outflows of Resources Forward funded state aid..................................................... Total Assets and Deferred Outflows....................................
$
83,161 7,677,612
$
— 829,125
$
— 1,606,332
$
Liabilities Accounts payable and accrued liabilities: Accounts payable............................................................. Accrued payroll................................................................. Intergovernmental payable............................................... Claims payable................................................................. Medical claims payable....................................................... Tax refunds payable............................................................ Obligations under securities lending.................................... Due to fiduciary funds (Note 10).......................................... Due to other funds (Note 10)............................................... Due to component units (Note 18)....................................... Unearned revenue............................................................... Deposits payable................................................................. Funds held for others...........................................................
$
Total Liabilities.....................................................................
182,933 1,706 692,087 — 948,950 989,470 334,923 89,776 42,952 38,812 408,704 2,719 11,454
$
279,589 14,749 160,612 — — 4,184 23,305 6,766 5,342 — 16,799 — 27,802
$
53,276 — 4,549 — — 1,709 80,094 — 11,233 — — — —
$
33,982 46 7,338 62,795 125 — 54,777 — 402 14,430 1,052 4 43,660
$
549,780 16,501 864,586 62,795 949,075 995,363 493,099 96,542 59,929 53,242 426,555 2,723 82,916
3,744,486
539,148
150,861
218,611
4,653,106
Unavailable revenue............................................................
171,363
2,323
—
8,395
182,081
Fund Balances (Note 11) Nonspendable..................................................................... Restricted............................................................................ Committed........................................................................... Assigned............................................................................. Unassigned.........................................................................
84,122 162,418 1,518,439 376,677 1,620,107
86,654 113,331 87,669 — —
— — 1,455,471 — —
131,921 954,203 752,422 1,166 —
302,697 1,229,952 3,814,001 377,843 1,620,107
1,839,712 2,066,718
7,344,600 $ 12,179,787
Deferred Inflows of Resources
Total Fund Balances............................................................ Total Liabilities, Deferred Inflows and Fund Balances..........
$
3,761,763 7,677,612
$
287,654 829,125
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
54
1,455,471 1,606,332
$
State of North Carolina RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION Exhibit B-1a
June 30, 2016 (Dollars in Thousands)
Total fund balances - governmental funds (see Exhibit B-1)
$
7,344,600
Amounts reported for governmental activities in the Statement of Net Position are different because:
–
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds (see Note 5). These consist of: Cost of capital assets (excluding internal service funds)........................................................... Less: Accumulated depreciation (excluding internal service funds).......................................... Net capital assets...............................................................................................................
$ 47,975,709 (695,384) 47,280,325
– Some assets, such as receivables, are not available soon enough to pay for current period expenditures and thus, are offset by unavailable revenue in the governmental funds.
182,081
– Equity interest in component unit is not a financial resource and, therefore, is not reported in the funds.
148,751
– Net pension asset, resulting from contributions in excess of the annual required contribution are not financial resources and, therefore, are not reported in the funds (see Note 12).
4,504
– Deferred losses on refundings are reported in the Statement of Net Position (to be amortized as interest expense) but are not reported in the funds.
112,080
– Deferred outflows for pensions (excluding internal service funds) are reported in the Statement of Net Position but are not reported in the funds (see Note 12).
357,392
–
–
Long-term debt instruments, such as bonds and notes payable, are not due and payable in the current period and, therefore, the outstanding balances are not reported in the funds (see Note 8). Also, unamortized debt premiums are reported in the Statement of Net Position but are not reported in the funds. These balances consist of: General obligation bonds payable............................................................................................. Certificates of participation payable........................................................................................... Limited obligation bonds payable.............................................................................................. GARVEE bonds payable........................................................................................................... Unamortized debt premiums (to be amortized as interest expense)......................................... Notes payable............................................................................................................................ Capital leases payable (excluding internal service funds)......................................................... Net long-term debt............................................................................................................. Other liabilities not due and payable in the current period and, therefore, not reported in the funds (see Note 8 as applicable) consist of: Accrued interest payable........................................................................................................... Compensated absences (excluding internal service funds)...................................................... Obligations for workers' compensation...................................................................................... Death benefit payable................................................................................................................ Pollution remediation payable.................................................................................................... Claims and judgments payable................................................................................................. Net pension liability (excluding internal service funds).............................................................. Total other liabilities...........................................................................................................
– Deferred inflows for pensions (excluding internal service funds) are reported in the Statement of Net Position but are not reported in the funds (see Note 12).
–
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position (see Exhibit B-3).
Total net position - governmental activities (see Exhibit A-1)
(3,038,665) (124,820) (1,997,070) (529,755) (505,737) (27,198) (19,646) (6,242,891)
(44,661) (439,484) (201,906) (40) (6,748) (734,003) (927,978) (2,354,820)
(221,541)
277,905 $ 46,888,386
The accompanying Notes to the Financial Statements are an integral part of this statement.
55
State of North Carolina STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Exhibit B-2
For the Fiscal Year Ended June 30, 2016 (Dollars in Thousands) General Fund
Revenues Taxes: Individual income tax................................................... Corporate income tax.................................................. Sales and use tax....................................................... Gasoline tax................................................................ Franchise tax.............................................................. Highway use tax.......................................................... Insurance tax.............................................................. Beverage tax............................................................... Tobacco products tax.................................................. Other taxes................................................................. Federal funds................................................................. Local funds.................................................................... Investment earnings....................................................... Interest earnings on loans.............................................. Sales and services......................................................... Rental and lease of property.......................................... Fees, licenses, and fines............................................... Tobacco settlement........................................................ Contributions, gifts, and grants....................................... Funds escheated........................................................... Federal recovery funds.................................................. Miscellaneous................................................................ Total revenues.........................................................
$ 11,980,791 1,117,999 7,177,819 — 524,967 — 503,413 379,986 286,968 181,993 15,138,975 155,486 45,833 442 171,427 11,212 762,078 137,230 39,755 — 45,220 157,489 38,819,083
Expenditures Current: General government................................................... Primary and secondary education............................... Higher education......................................................... Health and human services......................................... Economic development............................................... Environment and natural resources............................. Public safety, corrections, and regulation.................... Transportation............................................................. Agriculture................................................................... Capital outlay................................................................. Debt service: Principal retirement..................................................... Interest and fees......................................................... Debt issuance costs.................................................... Total expenditures.................................................... Excess revenues over (under) expenditures................... Other Financing Sources (Uses) Refunding bonds issued................................................. Other debt issued........................................................... Premium on debt issued................................................ Payment to refunded bond escrow agent....................... Sale of capital assets..................................................... Insurance recoveries...................................................... Transfers in (Note 10).................................................... Transfers out (Note 10).................................................. Total other financing sources (uses)........................ Net change in fund balances.......................................... Fund balances — July 1, as restated (Note 22)............. Fund balances — June 30.............................................
Highway Fund
$
$
— — — 1,345,677 — — — — — — 1,094,379 25,763 6,267 — 3,835 5,105 734,275 — 16,284 — 151,532 6,853 3,389,970
$
Highway Trust Fund
Other Governmental Funds
— — — 565,864 — 728,580 — — — — — 606 9,298 153 9 1,713 124,668 — 874 — — 3,894 1,435,659
$
— — 7,929 27,098 — — — — — 113,203 92,490 7,931 26,716 499 150,612 2,876 192,381 — 45,304 75,105 — 8,461 750,605
Total Governmental Funds
$
11,980,791 1,117,999 7,185,748 1,938,639 524,967 728,580 503,413 379,986 286,968 295,196 16,325,844 189,786 88,114 1,094 325,883 20,906 1,813,402 137,230 102,217 75,105 196,752 176,697 44,395,317
1,096,432 10,381,474 3,896,229 18,421,703 394,053 379,539 2,760,015 — 166,187 —
— — — — — — — 3,351,026 — —
— — — — — — — 962,199 — —
40,349 — 105,938 79,673 13,522 147,909 255,145 — 17,202 144,674
1,136,781 10,381,474 4,002,167 18,501,376 407,575 527,448 3,015,160 4,313,225 183,389 144,674
478,045 255,909 833 38,230,419 588,664
69,544 26,203 466 3,447,239 (57,269)
37,583 11,340 96 1,011,218 424,441
2,456 51 3 806,922 (56,317)
587,628 293,503 1,398 43,495,798 899,519
329,360 1,875 88,066 (416,509) 55,738 1,062 804,754 (198,070) 666,276 1,254,940 2,506,823 3,761,763
— — — — 11,577 7,602 31,044 (79,076) (28,853) (86,122) 373,776 287,654
— — — — 597 — — (90,915) (90,318) 334,123 1,121,348 $ 1,455,471
— — — — 2,351 217 200,363 (147,904) 55,027 (1,290) 1,841,002 1,839,712
329,360 1,875 88,066 (416,509) 70,263 8,881 1,036,161 (515,965) 602,132 1,501,651 5,842,949 7,344,600
$
The accompanying Notes to the Financial Statements are an integral part of this statement.
56
$
$
State of North Carolina RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Exhibit B-2a
For the Fiscal Year Ended June 30, 2016 (Dollars in Thousands) Net change in fund balances - total governmental funds (see Exhibit B-2)
$
1,501,651
Amounts reported for governmental activities in the Statement of Activities are different because:
–
–
Capital outlays are reported as expenditures in governmental funds. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: Capital outlays (including construction-in-progress) ............................................................. Less: Depreciation expense (excluding internal service funds) ............................................ Net capital outlay adjustment ........................................................................................
$
2,580,825 (880,212) 1,700,613
Proceeds from the sale of capital assets increase financial resources in the funds, whereas in the Statement of Activities only the gain or loss on the sale is reported. This adjustment reduces the proceeds by the book value of the capital assets sold.
(104,133)
– Donations of capital assets do not appear in the governmental funds because they are not financial resources, but increase net position in the Statement of Activities.
9,878
– Retirement Contributions (excluding internal service funds) to defined benefit pension plans in the current fiscal year are not included on the Statement of Activities.
–
–
Long-term debt proceeds provide current financial resources to governmental funds, while the repayment of the related debt principal consumes those financial resources. These transactions, however, have no effect on net position. Also, governmental funds report the effect of premiums and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. In the current period, these amounts consist of: Debt issued or incurred: Capital leases issued ........................................................................................................ Refunding bonds issued ................................................................................................... Premiums on debt issued ................................................................................................. Principal repayments: Bonds, notes, and similar debt ......................................................................................... Capital leases (excluding internal service funds) .............................................................. Payments to escrow agent for refundings ........................................................................ Net debt adjustments ....................................................................................................
329,474
(1,875) (329,360) (88,066) 584,852 2,776 416,509 584,836
Some revenues in the Statement of Activities do not provide current financial resources and, therefore, are deferred inflows of resources in the funds. Also, revenues related to prior periods that became available during the current period are reported in the funds but are eliminated in the Statement of Activities. This amount is the net adjustment.
(2,107)
– Change in equity interest of component unit resulting from changes in stockholder's equity are not current financial resources, and therefore, are not recognized in the funds. – Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not recognized in the funds. Also, some payments related to prior periods are recognized in the funds but are eliminated in the Statement of Activities. In the current period, the net adjustments consist of: Accrued interest ................................................................................................................... Compensated absences (excluding internal service funds) ................................................. Workers' compensation ........................................................................................................ Death benefit ........................................................................................................................ Pension expense (excluding internal service funds) ............................................................. Pollution remediation ............................................................................................................ Claims and judgments .......................................................................................................... Amortization of deferred amounts ........................................................................................ Net expense accruals ...................................................................................................
–
(344)
6,920 10,893 257 380 (102,804) (327) 3,300 87,069 5,688
Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenues of internal service funds are included with governmental activities in the Statement of Activities (see Exhibit B-4).
Change in net position - governmental activities (see Exhibit A-2)
40,733 $
The accompanying Notes to the Financial Statements are an integral part of this statement.
57
4,066,289
