CAFR FY2017 South Dakota
Total Page:16
File Type:pdf, Size:1020Kb
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 DENNIS DAUGAARD, GOVERNOR MATT MICHELS, LT. GOVERNOR LIZA CLARK, CHIEF FINANCIAL OFFICER BUREAU OF FINANCE AND MANAGEMENT A C K N O W L E D G E M E N T S Report prepared by Bureau of Finance and Management South Dakota Capitol Building Pierre, South Dakota Liza Clark, Chief Financial Officer Jim Terwilliger, Deputy Commissioner Keith Senger, Director of Accounting and Financial Reporting Darcy McGuigan, Deputy Director Amanda Werre, Chief Accounting Analyst Robert J. Norwick, Principal Accounting Analyst Lori K. Sears, Principal Accounting Analyst David Goldammer, Senior Accounting Analyst David Knigge, Senior Accounting Analyst Mark Edwardson, Accounting Analyst Brian Englund, Accounting Analyst Amy Juso, Accounting Analyst Dominique Ruppelt, Accounting Analyst Lacey Walz, Accounting Analyst James A. Schaefer, Accounting Operations Manager (Retired) Adam Hansen, Accounting Operations Specialist Derek Johnson, Chief Budget Analyst SPECIAL THANKS TO: South Dakota Department of Legislative Audit, Pierre All State Finance Officers and Accountants Eric Feiler, Manager Central Duplicating Keith Albertson, Graphic Designer Photographs provided by South Dakota Office of Tourism Sincere thanks to all who contributed their time and effort to this publication. 125 Copies printed by the Bureau of Finance and Management at $9.85 each at Central Duplicating Services. STATE OF SOUTH DAKOTA DENNIS DAUGAARD, GOVERNOR December 29, 2017 To The Members of the Legislature and Citizens of South Dakota, As Governor of the great state of South Dakota, I take very seriously our obligation and responsibility to provide timely and accurate financial reporting. Therefore, it gives me great pleasure to present the State’s 31st Comprehensive Annual Financial Report covering operations for the fiscal year ending June 30, 2017. This report is prepared in accordance with generally accepted accounting principles and includes all agencies of state government and reporting entities for which the state has oversight responsibilities. Like previous reports, this report presents to you, and the financial community, the sound financial condition of South Dakota. South Dakota’s economy continues to diversify and grow at a steady pace due to a low tax burden and favorable business climate. In fiscal year 2017, the state’s nonfarm employment expanded by more than 5,300 jobs, or an increase of 1.3 percent. Employment sectors that contributed to this growth included construction, healthcare, education, leisure, hospitality, and business services. In addition to the growth in nonfarm employment, the unemployment rate remained among the lowest in the nation and nonfarm income grew at a rate higher than the national average. As Governor of this great state, I am committed to four financial priorities: Increasing job growth, economic development, and visitor spending, Taking care of those who cannot take care of themselves, Providing our children with a quality education, and Protecting our society from those who would do us harm. South Dakota continues to operate within our means and provide these basic services to our citizens, as we have since statehood in 1889. Sincerely, Dennis Daugaard STATE CAPITOL 500 EAST CAPITOL PIERRE, SOUTH DAKOTA 57501-5070 605-773-3212 TABLE OF CONTENTS Title Page Acknowledgements Governor’s Letter INTRODUCTORY SECTION: Letter of Transmittal............................................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting ......................................................................... 9 Principal State Officials ....................................................................................................................................... 10 Functions of State Government ........................................................................................................................... 11 State Organizational Chart .................................................................................................................................. 12 FINANCIAL SECTION: Independent Auditor’s Report .............................................................................................................................. 13 Management’s Discussion and Analysis ............................................................................................................. 17 Basic Financial Statements ................................................................................................................................. 33 Statement of Net Position .................................................................................................................................... 34 Statement of Activities ......................................................................................................................................... 36 Balance Sheet – Governmental Funds ............................................................................................................... 38 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................. 39 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ..................... 40 Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities ...................................................................................................................................... 41 Statement of Net Position – Proprietary Funds ................................................................................................... 42 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds .................................... 43 Statement of Cash Flows – Proprietary Funds ................................................................................................... 44 Statement of Fiduciary Net Position – Fiduciary Funds ...................................................................................... 46 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................................................... 47 Notes to the Financial Statements ...................................................................................................................... 49 Required Supplementary Information .............................................................................................................. 117 Budgetary Comparison Schedule – General Fund ........................................................................................... 118 Budgetary Comparison Schedule – Transportation Fund………………………….. ........................................... 130 Budgetary Comparison Schedule – Social Services Federal Fund .................................................................. 131 Budgetary Comparison Schedule – Budget-to-GAAP Reconciliation ............................................................... 132 Notes to Required Supplementary Information – Budgetary Reporting ............................................................ 133 Schedule of Net Pension Liability (Asset) ........................................................................................................ 134 Schedule of Contributions ................................................................................................................................. 134 Combining Financial Statements ...................................................................................................................... 135 Combining Balance Sheet – Nonmajor Governmental Funds – By Type ......................................................... 136 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds – By Type ....................................................................... 137 Combining Balance Sheet – Nonmajor Special Revenue Funds ...................................................................... 138 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .................................................................................... 142 Combining Balance Sheet – Nonmajor Debt Service Funds……………. ......................................................... 146 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Debt Service Funds……………………………… ........................................................................... 147 Combining Statement of Net Position – Nonmajor Enterprise Funds ............................................................... 148 Combining Statement of Revenues, Expenses, and Changes in Net Position – Nonmajor Enterprise Funds ........................................................................................................................... 150 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ................................................................ 152 Combining Statement of Net Position – Internal Service Funds ....................................................................... 154 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds ..................................................................................................................................