Fiscal Year Ended June 30, 2013 This Public Document Was Published at a Total Cost of $4,049.00
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LOUISIANA COMPREHENSIVE ANNUAL FINANCIAL REPORT For The Fiscal Year Ended June 30, 2013 This public document was published at a total cost of $4,049.00. Two-hundred and fifty (250) copies of this public document were published in the first printing at a cost of $4,049.00. The total cost of all printings of this document, including reprints was $4,049. This document was published for the Division of Administration, Office of Statewide Reporting and Accounting Policy, P.O. Box 94095, Baton Rouge, LA 70804-9095 by Moran Printing, Inc. to report the financial condition of the State for the fiscal year ended June 30, 2013, under authority of LRS 39:92. This material was printed in accordance with the standards for printing by state agencies established pursuant to LRS 43:31. State of Louisiana Comprehensive Annual Financial Report for the Year Ended June 30, 2013 BOBBY JINDAL Governor Prepared By DIVISION OF ADMINISTRATION KRISTY H. NICHOLS Commissioner On the Cover Exploring Louisiana’s Key Industries. Louisiana is home to strong traditional industries, such as petrochemicals and shipbuilding, as well as newer growth industries with strong foundations in technology and research. Our state continues to work aggressively to strengthen our business environment, diversify our economy, and promote business investment opportunities. Louisiana’s key industries include: Aerospace—Unrivaled infrastructure, highly-skilled workforce, and competitive incentives are fueling Louisiana’s thriving aerospace industry. Agribusiness—Innovative research centers and a wealth of raw materials aid a billion-dollar agriculture industry. Energy—Strong infrastructure, workforce, logistics, and regulations present an ideal situation for energy companies. Entertainment—Incentives in digital media, live performance, motion picture, and sound propel a billion-dollar industry. Manufacturing—A favorable income tax environment and strong infrastructure provide the resources companies need to thrive in Louisiana. Process Industries—Highly skilled talent and an abundance of natural resources make Louisiana a smart choice for the process industries. Software Development—Software companies are taking notice of Louisiana courtesy of the strongest incentives in the U.S. Water Management—Expertise in water management combined with geography make Louisiana a thriving market for exploration. Photo Credits Front Cover: Top-left: Louisiana is one of America’s emerging technology hubs. Gameloft is just one of many technology companies setting up shop in the state. Photo courtesy of Louisiana Economic Development. Top-right: Louisiana’s State Capitol. Photo provided by Louisiana Division of Administration. Center-left: Agribusiness reaps many benefits for Louisiana companies. Photo courtesy of Louisiana Economic Development. Bottom-left: Unrivaled infrastructure, a highly skilled workforce, and competitive incentives are fueling Louisiana's thriving aerospace industry. Photo courtesy of Louisiana Economic Development. Bottom-right: Sasol Ltd. chose Louisiana for a $16 billion to $21 billion investment in a new integrated GTL and ethane-cracker complex in Southwest Louisiana. Photo courtesy of Louisiana Economic Development. Back Cover: Top-left: Louisiana manufacturers benefit from the state's skilled workforce. Photo courtesy of Louisiana Economic Development. Top-right: Louisiana’s port system provides access via the Mississippi River to 35 interior states and the Gulf of Mexico. Photo courtesy of the Port of New Orleans. Bottom-left: Headquartered in Baton Rouge, La., PreSonus Audio Electronics is a leading manufacturer of digital and analog hardware and software systems for the professional audio market. Photo courtesy of Louisiana Economic Development. Bottom-right: Louisiana is home to companies in legacy sectors like chemicals and refining as well as emerging prospects such as biofuels. Photo courtesy of Louisiana Economic Development. Bobby Jindal Governor State of Louisiana State of Louisiana CONTENTS Page I. INTRODUCTORY SECTION Letter of Transmittal ...................................................................................................................................... 1 Certificate of Achievement ............................................................................................................................ 9 Principal State Officials ............................................................................................................................... 10 State Organizational Chart.......................................................................................................................... 11 II. FINANCIAL SECTION Independent Auditor's Report ................................................................................................................. 13 Management’s Discussion and Analysis................................................................................................ 17 Basic Financial Statements Government-wide Financial Statements Statement of Net Position.................................................................................................................. 30 Statement of Activities....................................................................................................................... 32 Governmental Fund Financial Statements Balance Sheet ................................................................................................................................... 33 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .......... 34 Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................... 35 Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities ......................................................................................................... 36 Proprietary Fund Financial Statements Statement of Net Position.................................................................................................................. 37 Statement of Revenues, Expenses, and Changes in Net Position................................................... 38 Statement of Cash Flows .................................................................................................................. 39 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position.................................................................................................. 41 Statement of Changes in Fiduciary Net Position............................................................................... 42 Component Unit Financial Statements Combining Statement of Net Position ............................................................................................... 44 Combining Statement of Activities .................................................................................................... 46 -v- State of Louisiana Notes to the Basic Financial Statements Note 1 – Summary of Significant Accounting Policies .................................................................... 47 Note 2 – Deposits and Investments ................................................................................................59 Note 3 – Accounts Receivable and Accounts Payable ................................................................... 70 Note 4 – Interfund Accounts and Transfers .................................................................................... 72 Note 5 – Capital Assets................................................................................................................... 74 Note 6 – Employee Benefits – Pensions......................................................................................... 76 Note 6A – Employee Benefits – Other Postemployment Benefits (OPEB)....................................... 80 Note 6B – Employee Benefits – Termination Benefits ...................................................................... 83 Note 7 – Leases .............................................................................................................................. 84 Note 8 – Long-term Obligations ...................................................................................................... 86 Note 9 – Contingencies ................................................................................................................... 93 Note 10 – Fund Balance/Net Position Disclosures ........................................................................... 98 Note 11 – Other Disclosures ........................................................................................................... 101 Note 12 – Subsequent Events......................................................................................................... 103 Required Supplementary Information Other Than Management’s Discussion and Analysis Budgetary Comparison Schedule – General Fund ............................................................................ 105 Note to Required Supplementary Information – Budgetary Reporting............................................... 106 Other Postemployment Benefits Plans............................................................................................... 107 Budgetary Comparison Schedule – Major Debt Service Fund Budgetary Comparison Schedule – Bond Security and Redemption Fund - Budget to Actual (Non-GAAP Budgetary Basis) ............................................................................