Oklahoma 2004
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O k l a h o m a 2004 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 2004 OKLAHOMA 2004 Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2004 Brad Henry Governor Prepared by Office of State Finance Scott Meacham, Director Brenda Bolander, State Comptroller The Oklahoma Comprehensive Annual Financial been prepared and distributed at a cost of $5,700.00. Report is an annual publication of the Oklahoma Office The Office of State Finance would appreciate credit for of State Finance and is prepared by the Division of any reprint. Central Accounting & Reporting. Requests for additional copies, comments or questions This publication is issued under authority of the Office may be directed to Becky Wilson, Office of State of State Finance. Pursuant to 74 O.S. 1992, Section Finance, 2300 North Lincoln Blvd., Suite 122, 3105, 275 bound copies and 525 compact discs have Oklahoma City, Oklahoma 73105. TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal.............................................................................................................................................................. 7 Certificate of Achievement for Excellence in Financial Reporting..................................................................................... 18 Selected Oklahoma State Officials ...................................................................................................................................... 19 State Agencies (by cabinet) ................................................................................................................................................. 20 FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT........................................................................................................................... 23 MANAGEMENT’S DISCUSSION AND ANALYSIS...................................................................................................... 25 BASIC FINANCIAL STATEMENTS................................................................................................................................ 39 GOVERNMENT-WIDE FINANCIAL STATEMENTS............................................................................................ 41 Statement of Net Assets...................................................................................................................................... 44 Statement of Activities ....................................................................................................................................... 46 FUND FINANCIAL STATEMENTS......................................................................................................................... 47 Balance Sheet - Governmental Funds ................................................................................................................ 50 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................... 52 Statement of Net Assets - Proprietary Funds...................................................................................................... 54 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds .......................................... 55 Statement of Cash Flows - Proprietary Funds.................................................................................................... 56 Statement of Fiduciary Net Assets (Fiduciary Funds and Similar Component Units) ....................................... 58 Statement of Changes in Fiduciary Net Assets (Fiduciary Funds and Similar Component Units) .................... 59 Description of Major Component Units ............................................................................................................. 61 Combining Statement of Net Assets - Major Component Units ........................................................................ 62 Combining Statement of Activities - Major Component Units .......................................................................... 64 NOTES TO THE FINANCIAL STATEMENTS........................................................................................................ 65 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule - Budget to Actual (Non-GAAP Budgetary Basis) General Fund.................... 117 Note to Required Supplementary Information - Budgetary Reporting .................................................................. 118 OKLAHOMA ♦ 3 OTHER SUPPLEMENTARY INFORMATION-BUDGETARY DETAIL Schedule of Expenditures and Intra-Agency Transfers-Detail Budget to Actual Comparison (Non-GAAP Budgetary Basis) - General Fund .....................................................121 COMBINING FINANCIAL STATEMENTS Description of Fiduciary Funds and Similar Component Units.............................................................................139 Combining Statement of Fiduciary Net Assets - Pension Trust Funds (Including Similar Component Units) .............................................................................................................140 Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds (Including Similar Component Units) .............................................................................................................141 Combining Statement of Assets and Liabilities - Agency Funds ..........................................................................142 Combining Statement of Changes in Assets and Liabilities - Agency Funds .......................................................143 Description of Nonmajor Component Units..........................................................................................................145 Combining Statement of Net Assets - NonMajor Component Units.....................................................................146 Combining Statement of Activities - NonMajor Component Units ......................................................................147 STATISTICAL SECTION Cash Receipts and Disbursements......................................................................................................................................152 Tax Collections ..................................................................................................................................................................154 Gross Sales Tax by Industry ..............................................................................................................................................156 Bank Deposits ....................................................................................................................................................................157 Assessed Valuations...........................................................................................................................................................158 Non-Agricultural Wage and Salary Employment ..............................................................................................................158 State Colleges and Universities - Public ............................................................................................................................161 State Colleges and Universities - Private ...........................................................................................................................161 School Enrollments ............................................................................................................................................................162 Economic and Demographic Estimates..............................................................................................................................162 Major Employers by Size...................................................................................................................................................164 Net General Obligation Bonds and Notes Per Capita ........................................................................................................166 Ratio of Annual Debt Service Expenditures for General Obilgation Debt to Total General Governmental Expenditures.......................................................................................166 Revenue Bond Coverage - Enterprise Fund and Component Units...................................................................................167 4 ♦ OKLAHOMA Introductory Section Introductory Section supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and the significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the State of Oklahoma’s financial statements for the fiscal year ended June 30, 2004 are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is presented as the first component of the financial section of this report. Internal Controls Management of the State of Oklahoma is responsible for the establishment and maintenance of internal accounting controls that have been designed to ensure assets are safeguarded and financial transactions are properly recorded and adequately documented. Such internal controls require estimates and judgments from management so that, in attaining reasonable assurance as to the adequacy of such controls, the