State of Connecticut

Notes to the Financial Statements

June 30, 2011

Note 25 New Accounting Pronouncements

In fiscal year 2011, the State implemented the following Statement issued by the Governmental Accounting Standards Board: Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”. Statement No. 54 requires governments to report fund balance of governmental funds by using the following categories: nonexpendable, restricted, committed, assigned, and unassigned. The Statement also clarifies the definitions of governmental fund types.