2019 Annual Financial Report INCLUDING ANNUAL REPORT OF NONFINANCIAL DATA Texas Parks and Wildlife Department Annual Financial Report For the Fiscal Year Ended August 31, 2019 For accessibility assistance with this document, contact TPWD by email at [email protected], on a Text Telephone (TTY) at (512) 389-8915, or by Relay Texas at 7-1-1 or (800) 735-2989. November 20, 2019 Life's • better outside: The Honorable Greg Abbott, Governor Commissioners The Honorable Glenn Hegar, Texas Comptroller S. Reed Morlan Sarah Keyton, Assistant Director, Legislative Budget Board Chairman John McGeady, Assistant Director, Legislative Budget Board Houston Lisa Collier, CPA, CFE, CIDA, First Assistant State Auditor Afd1 "Beaver" Aplin, Ill Vice-Chairman Lake Jackson Dear Governor Abbott, Comptroller Hegar, Ms. Keyton, Mr. McGeady and James E. Abell Ms. Collier: Kiigore Oliver J. Bell We are pleased to submit the annual financial report of the Texas Parks and Cleveland Wildlife Department for the year ended August 31, 2019, in compliance with Anna B. Galo Laredo Texas Government Code Annotated, Section 2101.011, and in accordance with the requirements established by the Comptroller of Public Accounts. Jeffery O. Hildebrand Houston Jeanne W. Latimer Due to the statewide requirements embedded in Governmental Accounting San Antonio Standards Board (GASS) Statement No. 34, Basic Financial Statements - and Robert L. "Bobby" Patton, Jr. Management's Discussion and Analysis - for State and Local Governments, Fort Worth the Comptroller of Public Accounts does not require the accompanying annual Dick Scott Wimberley financial report to comply with all the requirements in this statement. The financial report will be considered for audit by the state auditor as part of the Lee M. Bass Chairman-Emeritus audit of the State of Texas Comprehensive Annual Financial Report (CAFR); Fort Worth therefore, an opinion has not been expressed on the financial statements and T. Dan f'rledkln related information contained in this report. Chairman-Emeritus Houston If you have any questions, please contact Ms. Sylvette L. Ford, at (512) 389­ 4719. Mr. Brock Talley may be contacted at (512) 389-8679 for questions Carter P. Smith related to the Schedule of Expenditures of Federal Awards. Executive Director Sincerely, 4200 SMITH SCHOOL ROAD AUSTIN, TEXAS 78744·3291 512.389.4800 To manage and conserve the natural and cultural resources or Texas and to provide hunting, fishing www.tpwd.texas.qov and outdoor recreation opportunities for the use and enjoyment of present and future generations. Texas Parks and Wildlife Commission S. Reed Morian Arch “Beaver” Aplin, III James E. Abell Chairman Vice-Chairman Kilgore Houston � Lake Jackson � Oliver J. Bell Anna B. Galo Jeffery D. Hildebrand Cleveland Laredo Houston Jeanne W. Latimer Robert L. “Bobby” Patton, Jr. Dick Scott San Antonio Fort Worth Wimberley Lee M. Bass T. Dan Friedkin Chairman-Emeritus � Chairman-Emeritus Fort Worth � Houston � © 2019 TPWD CS LF H0800-2010A (8/19) Table of Contents Letter of Transmittal Page Government-wide Financial Statements: I Combined Balance Sheet/Statement of Net Position - Governmental Funds............................................................................................................... 1 II Combined Statement of Revenues, Expenditures and Changes in Fund Balances/Statement of Activities - Governmental Funds.......................... 3 VI Combined Statement of Fiduciary Net Position.............................................................................................................................................................. 5 Fund Financial Statements: A-1 Combining Balance Sheet - All General and Consolidated Funds................................................................................................................................ 6 A-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All General and Consolidated Funds...................................... 9 C-1 Combining Balance Sheet - Debt Service Funds........................................................................................................................................................... 12 C-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds................................................................. 13 D-1 Combining Balance Sheet - Capital Projects Funds....................................................................................................................................................... 14 D-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Capital Projects Funds............................................................ 16 E-1 Combining Balance Sheet - Permanent Funds.............................................................................................................................................................. 18 E-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Permanent Funds.................................................................... 19 J-1 Combining Statement of Changes in Assets and Liabilities - Agency Funds................................................................................................................ 20 Notes to the Financial Statements: 1 Summary of Significant Accounting Policies................................................................................................................................................................... 23 2 Capital Assets.................................................................................................................................................................................................................. 32 3 Deposits, Investments and Repurchase Agreements.................................................................................................................................................... 34 4 Short-Term Debt - Not Applicable................................................................................................................................................................................... 35 5 Long-Term Liabilities....................................................................................................................................................................................................... 36 6 Bonded Indebtedness - Not Applicable........................................................................................................................................................................... 38 7 Derivatives - Not Applicable............................................................................................................................................................................................ 39 8 Leases.............................................................................................................................................................................................................................. 40 9 Defined Benefit Pension Plans and Defined Contribution Plan - Not Applicable........................................................................................................... 41 10 Deferred Compensation - Not Applicable....................................................................................................................................................................... 42 11 Postemployment Benefits Other than Pensions - Not Applicable.................................................................................................................................. 43 12 Interfund Activity and Transactions................................................................................................................................................................................. 44 13 Continuance Subject to Review...................................................................................................................................................................................... 45 14 Adjustments to Fund Balances and Net Position............................................................................................................................................................ 46 15 Contingencies and Commitments................................................................................................................................................................................... 47 16 Subsequent Events - Not Applicable............................................................................................................................................................................... 49 17 Risk Management............................................................................................................................................................................................................ 50 18 Management's Discussion and Analysis (MD&A) - Not Applicable ............................................................................................................................... 53 19 The Financial Reporting Entity........................................................................................................................................................................................ 54 20 Stewardship, Compliance and Accountability................................................................................................................................................................