State of Connecticut

Notes to the Financial Statements

June 30, 2008

Note 22 Restatement of Fund Balance/Net Assets and Restricted Assets

As of June 30, 2008, the beginning fund balance/net assets for the following funds and other funds were restated as follows (amounts in thousands):

Balance Correction Balance
6-30-07 of 6-30-07
Previously Fund Reported as
Reported Reclassification Assets/Liabilities Restated
Governmental Funds
Restricted Grants and Accounts $ - $ 353,645 $ - $ 353,645
Other Funds $ 1,006,459 $ (353,645) $ - $ 652,814
Fiduciary Funds
RTHP $ 49,047 $ - $ (5,211) $ 43,836
Net Assts of Pension & Other Employees
Benefit Trust Funds $ 25,910,906 $ - $ (5,211) $ 25,905,695

As of June 30, 2008, the Restricted Grants and Accounts' Fund, a Special Revenue fund, was reported as a major fund in the governmental fund financial statements. In prior years, this fund was reported as a nonmajor fund.

During the year, the beginning net asset balance of the Retired Teacher Healthcare Plan, a fiduciary fund, was adjusted to correct a net misstatement in the assets and liability of the fund as of 6-30-07.

As of June 30, 2008, the government-wide statement of net assets reported $3,380 million of restricted net assets, of which $251 million was restricted by enabling legislation.