Comprehensive Annual Financial Report
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State of Michigan Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2018 Governor Gretchen Whitmer Prepared by the State Budget Office State of Michigan Comprehensive Annual Financial Report Fiscal Year Ended September 30, 2018 GRETCHEN WHITMER Governor CHRIS KOLB State Budget Director MICHAEL J. MOODY, CPA Director Office of Financial Management 1 Michigan TABLE OF CONTENTS Page Title page ......................................................................................................................................................................... 1 Table of Contents ............................................................................................................................................................. 2 INTRODUCTORY SECTION Letter of Transmittal ......................................................................................................................................................... 6 Certificate of Achievement ............................................................................................................................................... 9 State Organizational Structure ......................................................................................................................................... 10 Principal State Officials .................................................................................................................................................... 11 FINANCIAL SECTION Independent Auditor’s Report .......................................................................................................................................... 14 Management's Discussion and Analysis .......................................................................................................................... 17 Basic Financial Statements Government-wide Financial Statements Statement of Net Position ....................................................................................................................................... 28 Statement of Activities ............................................................................................................................................. 30 Governmental Fund Financial Statements Balance Sheet ......................................................................................................................................................... 34 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position. .............................. 35 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................ 36 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities ........................................................................... 37 Proprietary Fund Financial Statements Statement of Net Position ....................................................................................................................................... 40 Statement of Revenues, Expenses, and Changes in Fund Net Position ................................................................. 41 Statement of Cash Flows ........................................................................................................................................ 42 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position ........................................................................................................................ 46 Statement of Changes in Fiduciary Net Position ..................................................................................................... 47 Component Unit Financial Statements Statement of Net Position ....................................................................................................................................... 50 Statement of Activities ............................................................................................................................................. 54 Index for Notes to Financial Statements ....................................................................................................................... 58 Notes to Financial Statements ...................................................................................................................................... 59 Required Supplementary Information Other Than Management’s Discussion and Analysis Budgetary Comparison Schedule - Major Governmental Funds .................................................................................. 142 Budgetary Comparison Schedule - Budget-to-GAAP Reconciliation ............................................................................ 144 Notes to Required Supplementary Information - Budgetary Reporting ......................................................................... 145 Information About Infrastructure Assets Reported Using the Modified Approach ......................................................... 146 Schedule of Changes in Net Pension Liability and Related Ratios Legislative Retirement System ............................. 148 Schedule of Changes in Net Other Postemployment Liability and Related Ratios Legislative Retirement System ...... 149 Schedule of Changes in Net Pension Liability and Related Ratios State Police Retirement System ........................... 150 Schedule of Changes in Net Other Postemployment Liability and Related Ratios State Police Retirement System .... 151 Schedule of Changes in Net Pension Liability and Related Ratios State Employees' Retirement System ................... 152 Schedule of Changes in Net Other Postemployment Liability and Related Ratios State Employees' Retirement System ...................................................................................................................... 153 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Judges' Retirement System .................... ..154 Schedule of Changes in Net Other Postemployment Liability (Asset) and Related Ratios Judges' Retirement System ............................................................................................................. 155 Schedule of Changes in Net Pension Liability and Related Ratios Military Retirement Provisions .............................. 156 2018 Comprehensive Annual Financial Report 2 Michigan Page Schedule of Changes in Net Other Postemployment Liability and Related Ratios Life Insurance ................................ 157 Schedule of Contributions Legislative Retirement System ........................................................................................... 158 Schedule of Contributions for Other Postemployment Benefits Legislative Retirement System ................................... 160 Schedule of Contributions State Police Retirement System ......................................................................................... 162 Schedule of Contributions for Other Postemployment Benefits State Police Retirement System ................................ 164 Schedule of Contributions State Employees' Retirement System ................................................................................ 166 Schedule of Contributions for Other Postemployment Benefits State Employees' Retirement System ........................ 168 Schedule of Contributions Judges' Retirement System ................................................................................................ 170 Schedule of Contributions for Other Postemployment Benefits Judges' Retirement System ....................................... 172 Schedule of Contributions Military Retirement Provisions ............................................................................................ 174 Combining and Individual Fund Statements and Schedules - Non-Major Funds Governmental Funds Balance Sheet - By Fund Type ............................................................................................................................... 178 Statement of Revenues, Expenditures, and Changes in Fund Balances - By Fund Type ....................................... 179 Special Revenue Funds – By Classification Balance Sheet ......................................................................................................................................................... 180 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................ 181 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ................................. 182 Special Revenue Funds - Transportation Related Combining Balance Sheet ....................................................................................................................................... 186 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 187 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual .............. 188 Special Revenue Funds - Conservation, Environment, and Recreation Related Combining Balance Sheet ....................................................................................................................................... 192 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 194 Combining Schedule of