Notes to the Financial Statements

June 30, 2014

Note 25 New Accounting Pronouncements

In 2014, The State implemented the following statements issued by the Governmental Accounting Standards Board (“GASB”).

Items Previously Reported as Assets and Liabilities (Statement No. 65) - This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. As a result of implementing this Statement, presentation and terminology changes were made to the fund financial statements and government-wide statements as necessary in addition to the immediate recognition of certain elements.

Financial Reporting for Pension Plans an amendment of GASB Statement No. 25 (Statement No. 67) - This Statement establishes a definition of a pension plan that reflects the primary activities associated with the pension arrangement – determining pensions, accumulating and managing assets dedicated for pensions, and paying benefits to plan members as they come due. The scope of this statement addresses accounting and financial reporting for the activities of pension plans that are administered through trusts. The adoption of the Statement resulted in the modification of note disclosures related to the State Retirement Systems (Note 11 and 12).