Note 1Note 2Note 3Note 4Note 5Note 6Note 6ANote 6BNote 7Note 8Note 9Note 10Note 11Note 12Summary <strong>of</strong> Significant Accounting PoliciesDeposits and InvestmentsAccounts Receivable and Accounts PayableInterfund Accounts and TransfersCapital AssetsEmployee Benefits – PensionsEmployee Benefits – Other Postemployment Benefits (OPEB)Employee Benefits – Termination BenefitsLeasesLong-Term ObligationsContingenciesFund Balance/Net Assets DisclosuresOther DisclosuresSubsequent Events2010-<strong>2011</strong> Comprehensive Annual Financial Report
State <strong>of</strong> <strong>Louisiana</strong>NOTES TO THE BASIC FINANCIALSTATEMENTSJune 30, <strong>2011</strong>NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIESThe accompanying basic financial statements <strong>of</strong> the State<strong>of</strong> <strong>Louisiana</strong> (State) have been prepared in conformity withgenerally accepted accounting principles as prescribed bythe Governmental Accounting Standards Board (GASB).The basic financial statements present the financialposition and results <strong>of</strong> operations <strong>of</strong> the various funds <strong>of</strong>the State and the cash flows <strong>of</strong> the proprietary funds as <strong>of</strong>and for the year ended June 30, <strong>2011</strong>.A. REPORTING ENTITYThe State reporting entity consists <strong>of</strong> the variousdepartments, agencies, activities, and organizational unitsthat are within the control and authority <strong>of</strong> the <strong>Louisiana</strong>Legislature and/or constitutional <strong>of</strong>ficers <strong>of</strong> the State. TheState, like that <strong>of</strong> the United States, has three branches <strong>of</strong>government – legislative (bicameral), executive, andjudicial.As required by GASB Statement No. 14, The FinancialReporting Entity, as amended by GASB Statement No. 39,Determining Whether Certain Organizations areComponent Units, a legally separate entity is considered acomponent unit <strong>of</strong> the State if at least one <strong>of</strong> the followingcriteria is met:• The State appoints a voting majority <strong>of</strong> theorganization’s governing body and is either able toimpose its will on the organization or there is apotential financial benefit/burden to the State.• The entity is fiscally dependent on the State.• The nature and significance <strong>of</strong> the relationshipbetween the State and the entity is such that exclusionwould cause the financial statements <strong>of</strong> the State to bemisleading or incomplete.Depending upon the closeness <strong>of</strong> their relationship withthe State, some component units are blended with theState reporting entity, while others are discretely reported.The following component units were evaluated to identifythose entities whose financial activities should be blendedwith the primary government, discretely reported, ordisclosed in the Notes to the Basic Financial Statementsas a related organization, a joint venture, or a jointlygoverned organization:Blended Component UnitsA component unit is considered blended and thereforewould be included in the reporting entity’s financialstatements if the component unit’s governing body issubstantively the same as the governing body <strong>of</strong> theprimary government, or if the component unit providesservices exclusively, or almost exclusively, to the primarygovernment or otherwise exclusively, or almostexclusively, benefits the primary government even thoughit does not provide services directly to it. The followingblended component units provide services almostexclusively to the primary government: TobaccoSettlement Financing Corporation, <strong>Louisiana</strong> CorrectionalFacilities Corporation, <strong>Louisiana</strong> Office BuildingCorporation, Office Facilities Corporation, <strong>Louisiana</strong>Coastal Protection and Restoration Financing Corporation,<strong>Louisiana</strong> Transportation Authority, and the variousretirement systems.Tobacco Settlement Financing Corporation, P.O. Box44154, Baton Rouge, LA 70804-4154, a special purpose,public corporate entity, is responsible for financing,purchasing, and managing 60% <strong>of</strong> the tobacco assets andrelated incidental activities for the State <strong>of</strong> <strong>Louisiana</strong>. Theboard <strong>of</strong> directors consists <strong>of</strong> thirteen members, sevenappointed by the Governor.<strong>Louisiana</strong> Correctional Facilities Corporation, P.O. Box94095, Baton Rouge, LA 70804-9095, a nonpr<strong>of</strong>itcorporation, acquires and finances correctional facilities forlease to the State and is authorized to issue revenuebonds for its purposes. The board <strong>of</strong> directors consists <strong>of</strong>five members appointed by the Governor.<strong>Louisiana</strong> Office Building Corporation, P.O. Box 94095,Baton Rouge, LA 70804-9095, a nonpr<strong>of</strong>it quasi-publiccorporation, was created to construct, acquire and leasebuildings and facilities on behalf <strong>of</strong> and for the benefit <strong>of</strong>the State and may finance such acquisitions by issuingrevenue bonds. The board <strong>of</strong> directors consists <strong>of</strong> adesignee <strong>of</strong> the Governor, the Commissioner <strong>of</strong><strong>Administration</strong>, and the director <strong>of</strong> the Office <strong>of</strong> FacilityPlanning and Control.Office Facilities Corporation, P.O. Box 94095, BatonRouge, LA 70804-9095, a nonpr<strong>of</strong>it corporation, financesthe acquisition or construction <strong>of</strong> public facilities for leaseto the State through the issuance <strong>of</strong> revenue bonds. Theboard <strong>of</strong> directors consists <strong>of</strong> five members appointed bythe Governor.<strong>Louisiana</strong> Transportation Authority, P.O. Box 94245, BatonRouge, LA 70804, a nonpr<strong>of</strong>it corporation established in2001 to promote, plan, finance, construct, operate, andmaintain specific tollways or transitways constructed within<strong>Louisiana</strong>. The board <strong>of</strong> directors consists <strong>of</strong> ninemembers, including the Governor, the Department <strong>of</strong>Transportation and the Department <strong>of</strong> EconomicDevelopment secretaries, President <strong>of</strong> the Senate andSpeaker <strong>of</strong> the House <strong>of</strong> Representatives.<strong>Louisiana</strong> School Employees’ Retirement System, P.O.Box 44516, Baton Rouge, LA 70804-4516, wasestablished in 1947 for the benefit <strong>of</strong> non-instructionalpersonnel <strong>of</strong> the <strong>Louisiana</strong> public school system.- 45 -
Change language