FY2014 CAFR

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  • COMPREHENSIVE ANNUAL

    FINANCIAL REPORT

    FOR THE YEAR ENDED JUNE 30, 2014

    DENNIS DAUGAARD, GOVERNOR

    MATT MICHELS, LT. GOVERNOR

    JASON C. DILGES, CHIEF FINANCIAL OFFICER BUREAU OF FINANCE AND MANAGEMENT

  • A C K N O W L E D G E M E N T S

    Report prepared by Bureau of Finance and Management South Dakota Capitol Building

    Pierre, South Dakota

    Jason C. Dilges, Chief Financial Officer Keith Senger, Director of Accounting and Financial Reporting

    Ronald D. Wire, Director of Internal Control Robert J. Norwick, Chief Accounting Analyst

    Allysen Boetel, Accounting Analyst David Goldammer, Accounting Analyst

    Seth Hipple, Accounting Analyst Tonya Johnson, Accounting Analyst David Knigge, Accounting Analyst

    Darcy McGuigan, Accounting Analyst Dominique Peters, Accounting Analyst

    Lori K. Sears, Accounting Analyst Amanda Werre, Accounting Analyst

    James A. Schaefer, Accounting Operations Manager Terry J. Laqua, Accounting Operations Assistant Manager

    Adam Hansen, Accounting Operations Specialist Alex Hanson, Chief Budget Analyst

    Jim Terwilliger, Economist

    SPECIAL THANKS TO: South Dakota Department of Legislative Audit, Pierre

    All State Finance Officers and Accountants Eric Feiler, Manager Central Duplicating

    Brian Hahn, Graphic Designer South Dakota Office of Tourism, Photographer, Front Cover

    Sincere thanks to all who contributed their time and effort to this publication.

    125 Copies printed by the Bureau of Finance and Management at $11.62 each at Central Duplicating Services.

  • STATE OF SOUTH DAKOTADENNIS DAUGAARD, GOVERNOR

    February 25, 2015

    TO THE MEMBERS OF THE LEGISLATURE AND CITIZENS OF SOUTH DAKOTA:

    It is my pleasure to present the Comprehensive Annual Financial Report covering operations for the fiscal year ending June 30, 2014. This is our 28th Comprehensive Annual Financial Report. The report is prepared in accordance with generally accepted accounting principles and includes all agencies of state government and reporting entities for which the state has oversight responsibilities. Like previous reports, this report presents to you and the financial community the sound financial condition of South Dakota.

    South Dakotas economy is expected to continue to grow. Our states favorable business climate and solid agriculture sector provide a diversified economy positioned for growth in the future. Recent economic data supports continued growth, as the states per capita personal income in 2013 was $46,039, 2.8% higher than the national average. In addition, South Dakota has expanded nonfarm employment by 2.3% since the national recession, while U.S. nonfarm employment has expanded by just 1.4% compared to the previous peak employment level as of December 2014. The unemployment rate in South Dakota was one of the lowest rates in the nation through fiscal year 2014, and remains that way today.

    As the Governor of this great state, I am committed to four financial priorities: Increasing job growth, economic development, and visitor spending, Taking care of those who cannot take care of themselves, Providing our children with a quality education, and Protecting our society from those who would do us harm.

    South Dakota continues to operate within our means and provide these basic services to our citizens, as we have since statehood in 1889.

    Sincerely,

    Dennis Daugaard

    STATE CAPITOL 500 EAST CAPITOL PIERRE, SOUTH DAKOTA 57501-5070 605-773-3212

  • Title Page Acknowledgements Governors Letter

    INTRODUCTORY SECTION: Letter of Transmittal............................................................................................................................................... 1 Principal State Officials ....................................................................................................................................... 10 Functions of State Government ........................................................................................................................... 11 State Organizational Chart .................................................................................................................................. 12

    FINANCIAL SECTION:

    Independent Auditors Report .............................................................................................................................. 13 Managements Discussion and Analysis ............................................................................................................. 17

    Basic Financial Statements ................................................................................................................................. 37

    Statement of Net Position .................................................................................................................................... 38 Statement of Activities ......................................................................................................................................... 40 Balance Sheet Governmental Funds ............................................................................................................... 42 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............................. 43 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ...................... 44 Reconciliation of the Change in Fund Balances of Governmental Funds to the

    Statement of Activities ...................................................................................................................................... 45 Statement of Net Position Proprietary Funds ................................................................................................... 46 Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds .................................... 47 Statement of Cash Flows Proprietary Funds ................................................................................................... 48 Statement of Fiduciary Net Position Fiduciary Funds ...................................................................................... 50 Statement of Changes in Fiduciary Net Position Fiduciary Funds ................................................................... 51

    Notes to the Financial Statements ...................................................................................................................... 53 Required Supplementary Information .............................................................................................................. 109

    Budgetary Comparison Schedule General Fund ........................................................................................... 110 Budgetary Comparison Schedule Transportation Fund.. ........................................... 122 Budgetary Comparison Schedule Social Services Federal Fund .................................................................. 123 Budgetary Comparison Schedule Budget-to-GAAP Reconciliation ............................................................... 124 Notes to Required Supplementary Information Budgetary Reporting ............................................................ 125

    Combining Financial Statements ...................................................................................................................... 127

    Combining Balance Sheet Nonmajor Governmental Funds By Type ......................................................... 128 Combining Statement of Revenues, Expenditures and Changes in

    Fund Balances Nonmajor Governmental Funds By Type ....................................................................... 129 Combining Balance Sheet Nonmajor Special Revenue Funds ...................................................................... 130 Combining Statement of Revenues, Expenditures and Changes in

    Fund Balances Nonmajor Special Revenue Funds .................................................................................... 134 Combining Balance Sheet Nonmajor Debt Service Funds. ......................................................... 138 Combining Statement of Revenues, Expenditures and Changes in Fund Balances

    Nonmajor Debt Service Funds ........................................................................... 139 Combining Statement of Net Position Nonmajor Enterprise Funds ............................................................... 140 Combining Statement of Revenues, Expenses and Changes in Net Position

    Nonmajor Enterprise Funds ........................................................................................................................... 142 Combining Statement of Cash Flows Nonmajor Enterprise Funds ................................................................ 144 Combining Statement of Net Position Internal Service Funds ....................................................................... 146

    TABLE OF CONTENTS

  • Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds ................................................................................................................................... 148

    Combining Statement of Cash Flows Internal Service Funds ........................................................................ 150 Combining Statement of Fiduciary Net Position Private Purpose Trust Funds ............................................. 152 Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds .......................... 153 Combining Statement of Fiduciary Assets and Liabilities Agency Funds .................