Office of OperationsOffice of Operations

2009 Fall Conference2009 Fall Conference

Navigating Uncertain TimesNavigating Uncertain Times

October 21-22, 2009

NYS Financial, Economic, and Demographic

ReportingSuzette Baker, CPA, CGFM Assistant DirectorJennifer Hallanan Associate AccountantMaria Moran, CPA Associate AccountantSandi Trzcinski, CGAP, APM Senior Accountant

Office of Operations 2009 Fall Conference

OverviewOverview

General BackgroundGeneral Background State’s GAAP Financial State’s GAAP Financial

StatementsStatements State’s Financial ConditionState’s Financial Condition Agency Financial Reporting Agency Financial Reporting

PackagePackage Current GASB StatementsCurrent GASB Statements Summary/Questions/CommentsSummary/Questions/Comments

Office of Operations 2009 Fall Conference

General BackgroundGeneral BackgroundFinancial ReportingFinancial Reporting

Comprehensive Annual Financial ReportComprehensive Annual Financial Report Financial Condition ReportFinancial Condition Report Interim GAAP Financial StatementsInterim GAAP Financial Statements Chapter 551 Functional ReportingChapter 551 Functional Reporting Five Year Comparative Financial Five Year Comparative Financial

StatementsStatements Schedule of Expenditures of Federal Schedule of Expenditures of Federal

AwardsAwards Citizens’ Guide and Citizen-Centric ReportCitizens’ Guide and Citizen-Centric Report Certification of Tax RevenuesCertification of Tax Revenues LGAC & Oil Spill Fund Financial StatementsLGAC & Oil Spill Fund Financial Statements Implementation of GASB StandardsImplementation of GASB Standards

Office of Operations 2009 Fall Conference

Financial ReportsFinancial Reports

Office of Operations 2009 Fall Conference

General BackgroundGeneral BackgroundWhat is GAAP Financial Reporting and What is GAAP Financial Reporting and

why is it important?why is it important?

Generally Accepted Accounting Generally Accepted Accounting Principles (GAAP)Principles (GAAP)

Chapter 405 of the Laws of 1981Chapter 405 of the Laws of 1981 Report to Legislature Report to Legislature MUSTMUST be be

completed by July 29completed by July 29thth

Accounting BasesAccounting Bases Cash Basis Reporting (pre-1982)Cash Basis Reporting (pre-1982) Modified Accrual (Fund Modified Accrual (Fund

Accounting)Accounting) Full Accrual (GASB 34)Full Accrual (GASB 34)

Office of Operations 2009 Fall Conference

CAFRCAFRComprehensive Annual Financial

Report

Office of Operations 2009 Fall Conference

CAFRCAFR

Statistics for 2009 CAFR:Statistics for 2009 CAFR:

1.1. $210 billion in entries$210 billion in entries

2.2. 171 entries171 entries

3.3. 7,634 entry lines7,634 entry lines

Office of Operations 2009 Fall Conference

CAFRCAFR

Three Major Sections:Three Major Sections:

1.1. IntroductoryIntroductory

2.2. FinancialFinancial

3.3. StatisticalStatistical

Office of Operations 2009 Fall Conference

CAFRCAFR

Introductory SectionIntroductory Section

1.1. Comptroller’s LetterComptroller’s Letter

2.2. Financial OverviewFinancial Overview

3.3. Certificate of AchievementCertificate of Achievement

4.4. Organization Chart and Organization Chart and State OfficialsState Officials

Office of Operations 2009 Fall Conference

CAFRCAFR

Financial SectionFinancial Section1.1. Management’s Discussion and Management’s Discussion and

AnalysisAnalysis2.2. Basic Financial StatementsBasic Financial Statements

Entity-wide Financial StatementsEntity-wide Financial Statements Governmental FundsGovernmental Funds Enterprise FundsEnterprise Funds Fiduciary FundsFiduciary Funds Discretely Presented Component UnitsDiscretely Presented Component Units

Office of Operations 2009 Fall Conference

CAFRCAFR

Financial SectionFinancial Section3.3. Required Supplementary Required Supplementary

Information (RSI)Information (RSI)

4.4. Other Supplementary InformationOther Supplementary Information Financial Statements by FundFinancial Statements by Fund Non-Major Discretely Presented Non-Major Discretely Presented

Component UnitsComponent Units

Office of Operations 2009 Fall Conference

CAFR CAFR

Statistical SectionStatistical Section

1.1. DemographicDemographic

2.2. EconomicEconomic

3.3. MiscellaneousMiscellaneous

4.4. Ten year presentation, Ten year presentation, when availablewhen available

Office of Operations 2009 Fall Conference

State’s Financial State’s Financial ConditionCondition

Office of Operations 2009 Fall Conference

Financial Condition Report:Financial Condition Report:

Provides citizens with an overview of the financial condition of the State.

Illustrates the future trends in the State.

Discusses the State’s ability to meet current and future financial and service obligations.

Office of Operations 2009 Fall Conference

General FundGeneral FundChange in Fund BalanceChange in Fund BalanceCash vs. GAAP ReportingCash vs. GAAP Reporting

(amounts in millions of dollars)

YEARYEAR CASHCASH GAAPGAAP

20092009 (805)(805) (6,895)(6,895)

20082008 (291)(291) 1,5671,567

20072007 (212)(212) 202202

20062006 711711 1,6361,636

20052005 245245 827827

Office of Operations 2009 Fall Conference

Total ReceiptsTotal Receipts

Office of Operations 2009 Fall Conference

Total ReceiptsTotal Receipts

$0

$20

$40

$60

$80

$100

$120

$140

2005 2006 2007 2008 2009 2010 * 2011 **

(amounts in billions)

Taxes Federal Miscellaneous Borrowings

*Estimated ** Projected

Office of Operations 2009 Fall Conference

Total ReceiptsTotal Receipts(amounts in billions)(amounts in billions)

$0

$10

$20

$30

$40

$50

Feder

al

Perso

nal In

com

e Ta

x

Consu

mer

Tax

es/F

ees

Busin

ess T

ax

Other

Tax

esM

isc.

Borro

wings

2008 2009

Office of Operations 2009 Fall Conference

Total SpendingTotal Spending

State Spending vs. Spending at the Rate of Inflation

(amounts in billions)

100.6104.3

112.8116.1

121.6

104.1107.1

110.7113.8

117.0

131.8

100.6

$90

$115

$140

2005 2006 2007 2008 2009 2010 **

spending inflation

** Projected

Office of Operations 2009 Fall Conference

Total SpendingTotal Spending2009 Spending

Per Person by Program 2,290

1,978

226492483 345 424

$0

$500

$1,000

$1,500

$2,000

$2,500

Office of Operations 2009 Fall Conference

Federal StimulusFederal Stimulus(amounts in millions)(amounts in millions)

* Total does not include approximately $90 billion in other federal spending items included in the Act which do not impact NY or cannot be quantified.

* Reflects revised figures March 2009.

Public Safety $124 0.5%

Other Government

Services $549 2.1%

Medicaid $11,100 41.5%

Health and Human

Services $5,982 22.4%

Infrastructure and Energy

$4,162 15.5%

Education $2,360 8.8%

Education Restoration

$2,469 9.2%

Office of Operations 2009 Fall Conference

Federal StimulusFederal Stimulus(amounts in millions)(amounts in millions)

Stimulus Spent To DateEducation

$50 0.9%

Other Governmental

Services $19 1%

Transportation $24 1%

Medicaid $3,634

64%

Labor $1,767 31.1%

Health and Social

Services $180 2%

Spending as of August 2009

Office of Operations 2009 Fall Conference

Public HealthPublic Health(amounts in billions)(amounts in billions)

12.6 13.3 13.7 13.3 11.1

19.0 20.2 21.7 19.5 20.2

$0$5

$10$15$20$25$30$35$40

2004-05 2005-06 2006-07 2007-08 2008-09State Federal

3 3 3 3

Medicaid Costs

3

Office of Operations 2009 Fall Conference

Public WelfarePublic Welfare(amounts in thousands)(amounts in thousands)

Recipients of Public Assistance and Food Stamps

520513543587613

1,8101,7961,783

2,295

1,950

$0

$500

$1,000

$1,500

$2,000

$2,500

2004-05 2005-06 2006-07 2007-08 2008-09

Public Assistance Recipients Food Stamp Recipients

Office of Operations 2009 Fall Conference

EducationEducation(amounts in billions)(amounts in billions)

Federal, State and Local Funding Elementary and Secondary Schools

2.1 2.6 2.7 2.8 2.7

17.2 17.5 18.7 19.8 21.6

18.0 19.9 21.7

23.5 25.0

$0

$10

$20

$30

$40

$50

2002-03 2003-04 2004-05 2005-06 2006-07

Federal State Local

Office of Operations 2009 Fall Conference

Local GovernmentLocal Government(amounts in millions)(amounts in millions)

Major Sources of Revenue for Counties, Cities, Towns and Villages, 2007 (excluding New York City)

Other Local Revenues

8%

Federal Aid8% Real Property

Taxes and Other Related

Items30%

State Aid13%

Charges16%

Sales and Use Tax and Other Non-Property

Taxes25%

Office of Operations 2009 Fall Conference

CapitalCapital(amounts in billions)(amounts in billions)

New York Capital Spending

4.75.1

5.66.1

6.8

$0

$1

$2

$3

$4

$5

$6

$7

2005 2006 2007 2008 2009

Office of Operations 2009 Fall Conference

DebtDebt

New York's Debt(amounts in billions)

$0

$10

$20

$30

$40

$50

$60

2001 2002 2003 2004 2005 2006 2007 2008 2009Voter-approved debt Non-voter approved debt

Office of Operations 2009 Fall Conference

DebtDebtProjected State Funded Debt Service

(amount in billons)

$0

$2

$4

$6

$8

1998 2000 2002 2004 2006 2008 * 2010 ** 2012 **

State-Supported State-Funded

* Actual ** Projected

Office of Operations 2009 Fall Conference

Wall Street Profits(amounts in billions)

-$60-$50

-$40-$30-$20

-$10$0

$10

$20$30

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008Economic and Economic and

Demographic TrendsDemographic Trends

Office of Operations 2009 Fall Conference

Economic and Economic and Demographic TrendsDemographic Trends

Wall Street Bonuses(amounts in billions)

$0

$10

$20

$30

$40

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

Office of Operations 2009 Fall Conference

All Government Funds Projected All Government Funds Projected GrowthGrowth

(amounts in billions)(amounts in billions)

119.2

129.8134.9

130.8 130.7

121.6

133.5

140.0144.4

149.1

$100

$110

$120

$130

$140

$150

2008-09Actual

2009-10Enacted

2010-11Projected

2011-12Projected

2012-13Projected

All Funds Receipts All Funds Disbursements

Office of Operations 2009 Fall Conference

Agency Financial Reporting Agency Financial Reporting Package On-Line SystemPackage On-Line System

Agency Financial Reporting PackageAgency Financial Reporting Package Collects information from Collects information from

approximately 215 State agenciesapproximately 215 State agencies Used for annual and interim Used for annual and interim

reportingreporting

Office of Operations 2009 Fall Conference

Agency Financial Agency Financial Reporting PackageReporting Package

Gross Accounts ReceivableGross Accounts Receivable Approximately 50 agencies and $590 Approximately 50 agencies and $590

million million

Gross Miscellaneous LiabilitiesGross Miscellaneous Liabilities Approximately 20 agencies and $90 Approximately 20 agencies and $90

millionmillion

Compensated AbsencesCompensated Absences Over 4,000 employees and $2.4 billionOver 4,000 employees and $2.4 billion

Office of Operations 2009 Fall Conference

Current GASB StatementsCurrent GASB Statements

GASB 51-GASB 51- Accounting and Financial Accounting and Financial Reporting for Intangible AssetsReporting for Intangible Assets

GASB 53-GASB 53- Accounting and Financial Accounting and Financial Reporting for Derivative InstrumentsReporting for Derivative Instruments

GASB 54-GASB 54- Fund Balance Reporting and Fund Balance Reporting and Governmental Fund Type DefinitionsGovernmental Fund Type Definitions

Office of Operations 2009 Fall Conference

SummarySummary

Financial Reporting is required to:Financial Reporting is required to: Recognize the true financial position and

condition of the State, and reports the condition to the taxpayers.

Prepare GAAP financial statements presenting timely modified accrual and full accrual-based financial statements to the public, bond rating agencies, investment banks, etc.

Enable comparability with other states, and over a period of time.

Office of Operations 2009 Fall Conference

Questions/Comments?Questions/Comments?

Suzette Baker (518) 486-1234Suzette Baker (518) 486-1234

sbaker@osc.state.ny.ussbaker@osc.state.ny.us

Jennifer Hallanan (518) 486-3048Jennifer Hallanan (518) 486-3048

jhallanan@osc.state.ny.usjhallanan@osc.state.ny.us

Maria Moran (518) 474-3691Maria Moran (518) 474-3691

mmoran@osc.state.ny.usmmoran@osc.state.ny.us

Sandi Trzcinski (518) 473-8990Sandi Trzcinski (518) 473-8990

sttrzcinski@osc.state.ny.ussttrzcinski@osc.state.ny.us