STATE OF IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDING JUNE 30, 1999 Idahos second territorial seal, designed by Caleb Lyon (Idahos 2nd territorial Governor). The seal was used (with minor modifications) from 1886 - 1890. The cover photo is an architects rendering of the capitol building with the new wings added, drawing dated 1909. IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1999 DIRK KEMPTHORNE GOVERNOR J.D. WILLIAMS STATE CONTROLLER PREPARED BY THE OFFICE OF THE STATE CONTROLLER STATE OF IDAHO Office of the State Controller J.D. Williams, CGFM State Controller Hal W. Turner, CGFM Keith L. Johnson Chief Deputy State Controller Chief Deputy State Controller Retired October 29, 1999 ACKNOWLEDGMENTS: Steve Allison, CPA, CGFM Administrator Division of Statewide Accounting Bureau of Reporting and Review Darla Rankin, CPA, CGFM, Bureau Chief Teresa Schmaljohn, CPA Ruth Ard Kristi Kelly Rebecca Valentine Tim Wendland Thanks and appreciation to the outsource contractors, the Bureaus of Accounting Operations, System Administration, and Application Development in the Office of the State Controller. Special appreciation to all fiscal and accounting personnel throughout the State whose efforts to contribute accurate, timely financial data for their agencies made this report possible. This years Comprehensive Annual Financial Report (CAFR) is dedicated to Hal W. Turner who served as Idahos Chief Deputy State Controller from 1981 to 1999. He was employed in Idaho State government first by Governors Cecil Andrus and John Evans, and then by State Auditor Joe R. Williams and State Controller J.D. Williams. Hal, while in the State Controllers Office, was a key player in the development of the statewide financial management structure by helping to determine the vision required to produce Idahos financial statements as we know them today. He significantly assisted in identifying the critical need for a new accounting and financial reporting system in the late 1980s and guided various projects since then that were necessary to produce these financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Also, during his tenure with the State Controllers Office, Hal oversaw a major modernization of the statewide payroll system during the early 1990s. Throughout the years he helped to oversee and guide the States Computer Service Center through various technological upgrades that brought the State from the time of mechanized punched cards all the way into todays electronic commerce technology. Prior to his service with the State Controllers Office, Hal was the States Director of Information Systems and Management Analysis; Administrator, Division of Budget, Policy Planning, and Coordination; and Director, Executive Office of the Governor during the years from 1971 to 1977. He also served on boards of various public organizations including the Student Loan Fund of Idaho, Inc., Boise Samaritan Village Health Care Facility, Department of Defenses Employer Support for the Guard and Reserve (ESGR) program, Boise State Universitys Community and Government Professional Training Development, and the States Deferred Compensation Board (PEBSCO). Hal Turner retired from professional life on October 29, 1999. Governor Cecil Andrus and Boise Mayor Dick Eardley joined Hals many friends, family, and associates at a banquet to give him a royal send-off. Hal should not just be celebrated for his professional accomplishments, but for the outstanding personal characteristics he brings to his work and his life. He has shown his ability to work with all people on a non-partisan basis, no matter who or what they represented. He gained much respect and loyalty from his co-workers through his interest, pride, compassion, and support for them by sharing his time and talents. It is with great honor and appreciation that we dedicate this CAFR to Hal, a true professional and gentleman who has always outwardly shown a sincere interest and dedication to the citizens of the State of Idaho. STATE OF IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1999 TABLE OF CONTENTS INTRODUCTORY SECTION State Controller’s Letter of Transmittal.................................................................................................... viii Certificate of Achievement for Excellence in Financial Reporting...........................................................xvi Idaho State Government Organization Chart............................................................................................xvii Elected Officials of the State of Idaho.................................................................................................... xviii FINANCIAL SECTION Independent Auditor’s Report.......................................................................................................................2 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types, Account Groups, and Discretely Presented Component Units ......................................................................................................6 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Fund.....................................................9 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - General Fund and Special Revenue Funds...............10 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Balances - All Proprietary Fund Types, Similar Trust Funds, and Discretely Presented Component Units ....................................................................................................12 Combined Statement of Cash Flows - All Proprietary Fund Types, Similar Trust Funds, and Discretely Presented Component Units ................................................................14 Statement of Changes in Net Assets - Pension Trust Funds and Investment Trust Fund ..............................................................................................................................18 Combined Statement of Changes in Fund Balances - All College and University Funds ..........................................................................................20 ii State of Idaho TABLE OF CONTENTS Combined Statement of Current Funds Revenues, Expenditures, and Other Changes - All College and University Funds ...........................................................................................22 Notes to the Financial Statements 1. Summary of Significant Accounting Policies ............................................................23 2. Supplemental Appropriations ....................................................................................37 3. Cash, Cash Equivalents, and Cash Equity with Treasurer .........................................38 4. Investments.................................................................................................................39 5. External Investment Pool ...........................................................................................42 6. Accounts Receivable ..................................................................................................45 7. Due From/Due To Other Funds..................................................................................46 8. Fixed Assets................................................................................................................46 9. Retirement Plans ........................................................................................................49 10. Postemployment Benefits...........................................................................................57 11. Tax Anticipation Notes ..............................................................................................59 12. Risk Financing............................................................................................................60 13. Interfund Transactions................................................................................................61 14. Leases .........................................................................................................................62 15. Bonds, Notes, and Contracts Payable.........................................................................64 16. Grand Prizes Payable..................................................................................................71 17. Changes in General Long-Term Debt.........................................................................71 18. Fund Equity ................................................................................................................71 19. Segment Information for Enterprise Funds ................................................................74 20. Litigation ....................................................................................................................75 21. Contingencies .............................................................................................................76 22. Commitments..............................................................................................................76 23. Adjusted Beginning Balances.....................................................................................77 24. Segment Information for Discretely Presented Component Units .............................78