237-15 STATE OF NEVADA Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 Kim R. Wallin, CMA, CFM, CPA State Controller KIM R. WALLIN, CMA, CFM, CPA STATE CONTROLLER Kim Wallin is a native Nevadan and is the fi rst CPA to be elected to the offi ce of Nevada State Controller in 50 years. She is the fi rst CMA (Certifi ed Manage- ment Accountant) to hold this offi ce. Kim is currently a member of the AGA Partnership for Intergovernmental Management and Account- ability Steering Committee, and past President of NASC and is a member of the NASACT Executive Committee. In addition she is a member of the Insti- tute of Management Accountants, AICPA, NSCPA, NASACT and AGA. Kim has been recognized by her peers prior to becoming Controller and has continued to be recog- nized by her peers in her position as Controller. Kim most recently has been awarded the 2013 National Association of State Auditors, Comptrol- lers and Treasurers President’s Award for her work in improving disclosure of fi nancial information for investors who invest in municipal bonds. Also in 2013 she was given the Excellence in Government Award by the Association of Government Accoun- tants for her advocacy of improved government accountability, for the use of technology to improve govern- ment performance and for clear, concise reporting to the public. As Controller she has also received the AGA’s Presidents Award and the National Association of Comptrol- lers President Award for her work in improving transparency in Government with the use of technology. In 2011 she received NASACT’s Presidents Award for her work on various U.S. Presidential work groups and her continued efforts to improve effi ciency and accountability. Prior to becoming Controller, in September 2003, Accounting Today recognized Wallin as one of the 100 most infl uential people in accounting in the country. In September 2006 she was named “Woman CPA of the Year” of the entire country by the American Women’s Society of CPA’s. Kim is the former Global Chair of the Institute of Management Accountants (IMA) for 2003-2004 and she served as Chair of the Board of Regents of the ICMA. She served for two years on the Ethics Committee of the Nevada Society of CPA’s (NSCPA). Kim is a graduate of the University of Nevada, Las Vegas with a degree in Business Administration with a major in accounting. TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal.................................................................................................................................................................. 1 Constitutional Offi cers............................................................................................................................................................... 6 Organizational Chart.................................................................................................................................................................. 7 GFOA Certifi cate of Achievement............................................................................................................................................. 8 FINANCIAL SECTION Independent Auditor’s Report......................................................................................................................................................... 10 Management’s Discussion and Analysis........................................................................................................................................... 14 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position................................................................................................................................................... 26 Statement of Activities........................................................................................................................................................ 28 Fund Financial Statements Balance Sheet - Governmental Funds............................................................................................................................. 30 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position.......................... 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds......................... 34 Reconciliation of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.................................................................................................................................................. 37 Statement of Net Position - Proprietary Funds............................................................................................................ 38 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds............................... 41 Statement of Cash Flows - Proprietary Funds............................................................................................................... 42 Statement of Fiduciary Net Position - Fiduciary Funds............................................................................................... 44 Statement of Changes in Fiduciary Net Position - Fiduciary Funds.......................................................................... 45 Combining Statement of Net Position - Discretely Presented Component Units................................................ 46 Combining Statement of Activities - Discretely Presented Component Units...................................................... 47 Notes to the Financial Statements............................................................................................................................................. 49 . Required Supplementary Information Budgetary Comparison Schedule - General Fund and Major Special Revenue Funds.............................................. 92 Notes to Required Supplementary Information - Budgetary Reporting.................................................................... 94 Schedule of Funding Progress - Pension Plans.............................................................................................................. 95 Schedule of Infrastructure Condition and Maintenance Data.................................................................................... 96 Combining Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet.................................................................................................................................................. 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................... 101 Nonmajor Special Revenue Funds Combining Balance Sheet.............................................................................................................................................. 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.......................................... 106 Other Nonmajor Governmental Funds Combining Balance Sheet...............................................................................................................................................110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances...........................................112 NEVADA TABLE OF CONTENTS (continued) F INANCIAL SECTION (continued) Schedule of Total Uses - Budget and Actual, Non-GAAP Budgetary Basis - All General Fund Budgets................... 114 Schedule of Total Uses - Budget and Actual, Non-GAAP Budgetary Basis - All Special Revenue Fund Budgets... 123 Schedule of Sources - Budget and Actual, Non-GAAP Budgetary Basis - All Nonmajor Special Revenue Fund Budgets... 126 Nonmajor Enterprise Funds Combining Statement of Net Position.................................................................................................................................... 130 Combining Statement of Revenues, Expenses and Changes in Fund Net Position...................................................... 132 Combining Statement of Cash Flows...................................................................................................................................... 134 Internal Service Funds Combining Statement of Net Position.................................................................................................................................... 138 Combining Statement of Revenues, Expenses and Changes in Fund Net Position....................................................... 140 Combining Statement of Cash Flows...................................................................................................................................... 142 Fiduciary Funds Combining Statement of Fiduciary Net Position–Pension and Other Employee Benefit Trust, Investment Trust and Private–Purpose Trust Funds................................................................................................................................... 146 Combining Statement of Changes in Fiduciary Net Position–Pension and Other Employee Benefit Trust, Investment Trust and Private–Purpose Trust Funds......................................................................................................................... 148 Combining Statement of Fiduciary Assets and Liabilites–Agency Funds........................................................................ 150 Combining Statement of Changes in Assets and Liabilities -