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Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2006

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Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2006 Commonwealth of Pennsylvania Edward G. Rendell Governor Prepared By: Office of the Budget Michael J. Masch, Secretary Comptroller Operations Harvey C. Eckert, Commonwealth Comptroller The Comprehensive Annual Financial Report of the Commonwealth of Pennsylvania (CAFR) is provided on the World Wide Web in Adobe Acrobat (.PDF) format for the convenience of distribution. For availability of a copy, please contact: Harvey C. Eckert, Commonwealth Comptroller, Room 207, Finance Building, Harrisburg, Pennsylvania 17120 The CAFR contents can be accessed through this link: Table of Contents Commonwealth of Pennsylvania Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2006 TABLE OF CONTENTS Page INTRODUCTORY SECTION Title Page .................................................................................................................................................. 1 Table of Contents ...................................................................................................................................... 2 Letter of Transmittal ................................................................................................................................. 4 Certificate of Achievement ....................................................................................................................... 11 FINANCIAL SECTION REPORT OF INDEPENDENT AUDITORS ....................................................................................... 14 MANAGEMENT’S DISCUSSION AND ANALYSIS ......................................................................... 18 BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Assets ......................................................................................................................... 38 Statement of Activities........................................................................................................................... 40 Fund Financial Statements: Balance Sheet-Governmental Funds ...................................................................................................... 42 Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets................... 43 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds ............... 44 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds to the Statement of Activities............................................................................ 45 Statement of Net Assets-Proprietary Funds ........................................................................................... 46 Statement of Revenues, Expenses and Changes in Fund Net Assets-Proprietary Funds ....................... 47 Statement of Cash Flows-Proprietary Funds.......................................................................................... 48 Statement of Fiduciary Net Assets-Fiduciary Funds.............................................................................. 50 Statement of Changes in Fiduciary Net Assets-Fiduciary Funds........................................................... 51 Statement of Net Assets-Discretely Presented Component Units.......................................................... 52 Statement of Activities-Discretely Presented Component Units............................................................ 54 Notes to Financial Statements............................................................................................................... 55 REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule-Budgeted Major Funds-General Fund ............................................. 122 Budgetary Comparison Schedule-Budgeted Major Funds-Special Revenue Fund-Motor License ...... 123 Notes to Required Supplementary Information...................................................................................... 124 COMBINING FINANCIAL STATEMENTS (including Nonmajor Budgetary Comparison Schedules): Nonmajor Governmental Funds-Combining Financial Statements: Combining Balance Sheet-Nonmajor Governmental Funds .................................................................. 128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Governmental Funds........................................................................................................... 129 Nonmajor Special Revenue Funds-Combining Financial Statements (including Nonmajor Budgetary Comparison Schedules): Special Revenue Funds-Description-Nonmajor Funds .......................................................................... 132 Combining Balance Sheet-Nonmajor Governmental Funds-Special Revenue Funds............................ 133 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Governmental Funds-Special Revenue Funds .................................................................... 134 Budgetary Comparison Schedule-Budgeted Nonmajor Funds-Special Revenue Fund- Banking Department ........................................................................................................................... 135 Budgetary Comparison Schedule-Budgeted Nonmajor Funds-Special Revenue Fund- Milk Marketing .................................................................................................................................. 136 Budgetary Comparison Schedule-Budgeted Nonmajor Funds-Special Revenue Fund- Workmen’s Compensation Administration......................................................................................... 137 Nonmajor Debt Service Funds-Combining Financial Statements: Debt Service Funds-Description-Nonmajor Funds ................................................................................ 140 Combining Balance Sheet-Nonmajor Governmental Funds-Debt Service Funds.................................. 141 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Governmental Funds-Debt Service Funds .......................................................................... 142 Nonmajor Capital Projects Funds-Combining Financial Statements: Capital Projects Funds-Description-Nonmajor Funds ........................................................................... 144 Combining Balance Sheet-Nonmajor Governmental Funds-Capital Projects Funds............................. 145 Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Nonmajor Governmental Funds-Capital Projects Funds...................................................................... 146 Nonmajor Proprietary Funds-Combining Financial Statements-Enterprise Funds: Enterprise Funds-Description-Nonmajor Funds .................................................................................... 148 Combining Statement of Net Assets-Nonmajor Proprietary Funds-Enterprise Funds........................... 149 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets- Nonmajor Proprietary Funds-Enterprise Funds ................................................................................... 150 Combining Statement of Cash Flows-Nonmajor Proprietary Funds-Enterprise Funds ......................... 152 Nonmajor Proprietary Funds-Combining Financial Statements-Internal Service Funds: Internal Service Funds-Description........................................................................................................ 156 Combining Statement of Net Assets-Nonmajor Proprietary Funds-Internal Service Funds .................. 157 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets- Nonmajor Proprietary Funds-Internal Service Funds........................................................................... 158 Combining Statement of Cash Flows-Nonmajor Proprietary Funds-Internal Service Funds................. 159 Fiduciary Funds-Combining Financial Statements-Pension (and Other Employee Benefit) Trust Funds: Pension (and Other Employee Benefit) Trust Funds-Description.......................................................... 162 Combining Statement of Fiduciary Net Assets-Pension (and Other Employee Benefit) Trust Funds... 163 Combining Statement of Changes in Fiduciary Net Assets- Pension (and Other Employee Benefit) Trust Funds............................................................................ 164 Fiduciary Funds-Combining Financial Statements-Agency Funds: Agency Funds-Description .................................................................................................................... 166 Combining Statement of Fiduciary Net Assets-Agency Funds.............................................................. 167 Combining Statement of Changes in Fiduciary Net Assets-Agency Funds........................................... 168 Nonmajor Discretely Presented Component Units: Nonmajor Discretely Presented Component Units-Description............................................................. 173 Combining Statement of Net Assets-Nonmajor Discretely Presented Component Units ...................... 174 Combining Statement of Activities-Nonmajor Discretely Presented Component Units........................ 176 STATISTICAL SECTION Statistical Section Table of Contents ..................................................................................................... 180 COMMONWEALTH OF PENNSYLVANIA GOVERNOR'S OFFICE HARRISBURG December 22, 2006 MICHAEL
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