Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
June 30, 2012
(Expressed in Thousands)
Net Change in Fund Balances - Total Governmental Funds $127,509
are different because:
Bond proceeds provide current financial resources to governmental funds. However,
issuing debt increases long term-liabilities in the Statement of Net Assets. Bond
proceeds were received this year from:
Bonds Issued (1,554,801)
Refunding Bonds Issued (1,219,815)
Premium on Bonds Issued (313,715) (3,088,331)
Repayment of long-term debt is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the Statement of Net Assets. Long-term debt
repayments this year consisted of:
Principal Retirement 1,473,894
Payments to Refunded Bond Escrow Agent ($15,174 reported in debt service) 1,403,332
Capital Lease Payments 6,320 2,883,546
Some capital assets acquired this year were financed with capital leases. The amount
financed by leases is reported in the governmental funds as a source of financing, but
lease obligations are reported as long-term liabilities on the Statement of activities (6,084)
Capital outlays are reported as expenditures in the governmental funds. However, in the
Statement of Activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. In the current period, these amounts and
other reductions were as follows:
Capital Outlays 959,374
Depreciation Expense (918,294)
Retirements (789) 40,291
Inventories are reported as expenditures in the governmental funds when purchased.
However, in the Statement of Activities the cost of these assets is recognized when those
assets are consumed. This is the amount by which purchases exceeded consumption of
inventories. 2,987
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental
funds. These activities consist of:
Decrease in Accrued Interest 17,012
Decrease in Interest Accreted on Capital Appreciation Debt 25,014
Amortization of Bond Premium 95,129
Amortization of Loss on Debt Refundings (26,685)
Decrease in Compensated Absences Liability 17,139
Increase in Workers Compensation Liability (48,133)
Decrease in Claims and Judgments Liability 11,285
Increase in Net Pension Obligation (49,106)
Increase in Net OPEB Obligation (795,784) (754,129)
Because some revenues will not be collected for several months after the state's fiscal
year ends, they are not considered "available" revenues and are deferred in the
governmental funds. Deferred revenues decreased by this amount this year. (98,471)
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and telecommunications, to individual funds. The net revenue
(expense) of internal service funds is reported with the governmental activities. 2,577
Debt issue costs are recorded as expenditures in the governmental funds. However,
these costs are amortized over the life of the bonds in the Statement of Activities.
In the current year, these amounts are:
Debt Issue Costs Payments 10,914
Amortization of Debt Issue Costs (5,964) 4,950
Change in Net Assets of Governmental Activities $(885,155)

The accompanying notes are an integral part of the financial statements.