Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2006 BASIC FINANCIAL STATEMENTS - Notes To Financial Statements - Note 21 Restatement of Net Assets/Fund Balances

State of Connecticut

Notes to the Financial Statements

June 30, 2006

Note 21 Restatement of Net Assets/Fund Balances

As of June 30, 2006, the beginning net assets/fund balances for the following funds and activities were restated as follows (amounts in thousands):

Correction
Balance of Balance
6-30-05 Reported 6-30-05
Previously Assets/ as
Reported Liabilities Restated
Governmental Activities
Non-Major Funds:
Restricted Grants & Accounts $232,510 $18,470 $250,980
Total Governmental Funds $2,474,604 $18,470 $2,493,074
Net Assets of Governmental Activities $(5,390,623) $18,470 $(5,372,153)

During the year, the state adjusted the beginning fund balance of the Restricted Grants and Accounts fund, a special revenue fund, to correct an understatement of federal revenue reported in prior years.