Notes to the Financial Statements

June 30, 2012

Note 25 New Accounting Pronouncements

In fiscal year 2012, the State implemented the Governmental Accounting Standard Board Statement No. 64, "Derivative Instruments: Application of Hedge Accounting Termination Provisions." The objective of this statement is to clarify whether an effective hedging relationship continues after replacement of a swap-counterparty or a swap-counterparty's credit support provider and sets forth criteria that establish when hedge accounting should continue to be applied.