Notes to the Financial Statements

June 30, 2012

Note 23 Restatement of Fund Balances/Net Assets, Fund Balance Classifications, and Restricted Assets

Restatement of Fund Balance/Net Assets

As of June 30, 2012, the beginning fund balances/net assets for the following activities were restated as follows (amounts in thousands):

Balance Balance
6-30-11 Correction 6-30-11
Previously of Reported as
Reported Assets/Liabilities Restated
Governmental Funds and Activities
Major Funds
General Fund $(1,297,309) $172,704 $(1,124,605)
Total Governmental Funds $1,387,689 $172,704 $1,560,393
Proprietary Funds
Nonmajor Funds
Internal Service Funds
Administrative Services Fund $(61,339) $88,485 $27,146
Total Internal Service Funds $(51,052) $88,485 $37,433
Governmental Activities:
Net OPEB Obligation $(4,602,759) $(357,188) $(4,959,947)
Net Assets of Governmental Activities $(14,049,710) $(95,999) $(14,145,709)

The beginning fund balance of the General Fund was adjusted to correct an understatement in the balance of taxes receivable reported last year.

The beginning net asset balance of the Administrative Services Fund was adjusted to correct an understatement in the balance of cash reported in prior years.

The beginning balance of the net OPEB obligation was adjusted to correct an understatement in the SEOPEBP obligation reported last year, resulting from not receiving required actuarial information on time.

During the year, the State changed the method used to calculate the escheat liability to be in compliance with the calculation method described in GASB Statement No. 21, "Accounting for Escheat Property." Because of this change, escheat revenue reported in the General fund increased by $336 million this year.

Fund Balance - Restricted and Assigned
As of June 30, 2012 restricted and assigned fund balances of nonmajor governmental funds were comprised as follows:

Restricted Assigned
Purposes Purposes
Grant and Loan Programs $630,657 $9,405
Capital Projects 238,520 -
Environmental Programs 97,672 -
Housing Programs 109,955 -
Employment Security Administration 31,531 -
Banking 26,002 -
Other 44,807 13,365
Total $1,179,144 $22,770

Restricted Assets
As of June 30, 2012, the government-wide statement of net assets reported $2,753 of restricted net assets, of which $192 million was restricted by enabling legislation.