Comptroller's Seal
STATE OF CONNECTICUT
NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER
 

LETTER OF TRANSMITTAL

October 31, 1997

The Honorable John G. Rowland
Governor of the State of Connecticut
State Capitol
Hartford, Connecticut 06106

Dear Governor Rowland:

In accordance with Section 3-115 of the General Statutes, I am submitting the Annual Report of the State Comptroller for the fiscal year ended June 30, 1997.

Under modified cash basis of accounting currently used by the State, the General Fund ended the year with a surplus of $262,638,956. In accordance with Special Act 97-21, Section 59, this office has reserved $166,700,000 of the surplus for the payment of principal and interest on the Economic Recovery Notes over the current biennium, thereby retiring this debt. The remaining $95,938,956 of the surplus, in accordance with Section 4-30a of the General Statutes, has been reserved by this office for transfer to the Budget Reserve Fund.

As detailed in the enclosed statements, revenues exceeded expenditures by $382,100,907; however, this balance was reduced by a net carry forward of $110,973,741, which will be used to cover future State budget obligations, and miscellaneous adjustments totaling $8,488,210. The largest components of the carry forward are for debt service payments (40 million) and payments associated with the early retirement program ($51.4 million).

The Transportation Fund ended the year with a surplus of $114,620,950, an increase of $42,908,518 from the surplus carried forward from the prior year. This increase occurred through a combination of actual revenues exceeding budgeted projections along with expenditures falling below the budget plan. Pursuant to Section 3 of Public Act 97-309, only $20,000,000 of the $114,620,950 surplus will be available for fiscal year 1997-98. The remaining balance of $94,620,950 will be appropriated to the State Treasurer to defease bonds.

This report is prepared on the modified cash basis of accounting for appropriated funds, in compliance with the budget laws of the State, and the cash basis of accounting for other funds. My office also publishes a Comprehensive Annual Financial Report in conformance with Generally Accepted Accounting Principles (GAAP), which will be issued in January.

As a result of our efforts to promote the discipline that GAAP accounting and reporting brings to the State's fiscal management, the Legislature enacted PA 93-402, "An Act Concerning the Use of Generally Accepted Accounting Principles." This act, subsequently modified by PA 97-305, requires that, effective with the 1999-00 fiscal year, the State's budget be converted to a GAAP basis, replacing the modified cash basis currently used. The act provides for the amortization of any deficits in appropriated funds resulting from GAAP accruals as of July 1, 1999, over a fifteen year period beginning with fiscal year 2000-01.

Sincerely,

Nancy Wyman
State Comptroller

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