Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012

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by  LePage, Paul R.

Maine State Library
Maine State Documents
State Controller Documents Administrative and Financial Services
2012
Comprehensive Annual Financial Report for the
Fiscal Year Ended June 30, 2012
Paul R. LePage
H. Sawin Millett Jr.
Terry E. Brann CPA
Follow this and additional works at:http://statedocs.maine.gov/osc_docs
Recommended Citation
LePage, Paul R.; Millett, H. Sawin Jr.; and Brann, Terry E. CPA, "Comprehensive Annual Financial Report for the Fiscal Year Ended
June 30, 2012" (2012).State Controller Documents.Paper 1.
http://statedocs.maine.gov/osc_docs/1
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M
AINE
Comprehensive Annual Financial Report
For The Fiscal Year Ended June 30, 2012
C A
OMPREHENSIVE NNUAL
F R
INANCIAL EPORT

S MAINE
TATE OF

FOR THE FISCAL YEAR ENDED JUNE 30, 2012

PAUL R. LEPAGE
Governor

H. SAWIN MILLETT, JR.
Commissioner
Department of Administrative & Financial Services

TERRY E. BRANN, CPA
State Controller

Prepared by the Office of the State Controller
The State of Maine Comprehensive Annual Financial Report can be made available
in alternative formats upon request, to ensure that it is accessible to people with disabilities.
This notice is provided as required by Title II of the Americans with Disabilities Act of 1990.

If you wish to be deleted from our mailing list, or your address has changed, please contact the
Office of the State Controller at [phone] or write to:

State of Maine
Office of the State Controller
Financial Reporting and Analysis Division
14 State House Station
Augusta, ME 04333-0014

or e-mail us at:
[email protected]

Information relating to the State of Maine is available at the following web site:

http://www.maine.gov

This publication printed under Appropriation #010 18F 0056
STATE OF MAINE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2012

TABLE OF CONTENTS

INTRODUCTORY SECTION

Letter of Transmittal ii

Officials of State Government xi

Organization Chart xii

Certificate of Achievement xiii

FINANCIAL SECTION

Independent Auditor’s Report 2

Management’s Discussion and Analysis 4

Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Assets 18
Statement of Activities 20
Governmental Fund Financial Statements
Balance Sheet 24
Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Assets 25
Statement of Revenues, Expenditures and Changes in Fund Balances 26
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds to the Statement of Activities 27
Proprietary Fund Financial Statements
Statement of Net Assets 30
Statement of Revenues, Expenses and Changes in Fund Net Assets 31
Statement of Cash Flows 32
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Assets 34
Statement of Changes in Fiduciary Net Assets 35
Component Unit Financial Statements
Statement of Net Assets 38
Statement of Activities 40
Index for Notes to the Financial Statements 44
Notes to the Financial Statements 45

Required Supplementary Information:
Budgetary Comparison Schedule – Major Governmental Funds 108
Budgetary Comparison Schedule – Budget to GAAP Reconciliation 111
Notes to Required Supplementary Information – Budgetary Reporting 112
Required Supplementary Information – State Retirement Plan 114
Required Supplementary Information – Other Post-Employment Benefits Plans 115
Information About Infrastructure Assets Reported Using the Modified Approach 117
TABLE OF CONTENTS (CONTINUED)

Combining and Individual Fund Financial Statements and Schedules:
Non-Major Governmental Funds 121
Combining Balance Sheet 122
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 123
Other Governmental Funds 125
Combining Balance Sheet – Non-Major Special Revenue Funds 126
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Non-Major Special Revenue Funds 127
Balance Sheet – Non-Major Capital Projects Fund 128
Statement of Revenues, Expenditures and
Changes in Fund Balances – Non-Major Capital Projects Fund 129
Combining Balance Sheet – Non-Major Permanent Funds 130
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Non-Major Permanent Funds 131
Budgetary Comparison Schedule – General Fund by Agency 132
Budgetary Comparison Schedule – Highway Fund by Agency 135
Budgetary Comparison Schedule – Federal Fund by Agency 136
Budgetary Comparison Schedule – Other Special Revenue Fund by Agency 138
Enterprise Funds 141
Combining Statement of Net Assets 142
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 144
Combining Statement of Cash Flows 146
Internal Service Funds 149
Combining Statement of Net Assets 150
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 154
Combining Statement of Cash Flows 158
Fiduciary Funds 161
Combining Statement of Fiduciary Net Assets – Pension (and Other Employee Benefit) Trusts 162
Combining Statement of Changes in Fiduciary Net Assets – Pension
(and Other Employee Benefit) Trusts 163
Combining Statement of Fiduciary Net Assets – Private Purpose Trust Funds 164
Combining Statement of Changes in Fiduciary Net Assets – Private Purpose Trust Funds 165
Combining Statement of Fiduciary Net Assets – Agency Funds 167
Combining Statement of Changes in Assets and Liabilities – Agency Funds 168
Non-Major Component Units 171
Combining Statement of Net Assets – Non-Major Component Units 172
Combining Statement of Activities – Non-Major Component Units 174
TABLE OF CONTENTS (CONTINUED)

STATISTICAL SECTION

Statistical Section Narrative and Table of Contents 179
Schedule 1 – Net Assets by Activities, Last Ten Fiscal Years 180
Schedule 2 – Changes in Net Assets by Activities, Last Ten Fiscal Years 182
Schedule 3 – Fund Balances, Governmental Funds, Last Ten Fiscal Years 186
Schedule 4 – Revenues, Expenditures, and Other Financing Sources (Uses),
Governmental Funds, Last Ten Fiscal Years 188
Schedule 5 – Revenues, Expenditures, and Other Financing Sources (Uses),
General Fund, Last Ten Fiscal Years 190
Schedule 6 – Individual Income Tax and Tax Rates on Taxable Income, Last Ten Calendar Years 192
Schedule 7 – Individual Income Tax Filers and Tax Liability by Maine Adjusted Gross Income,
Tax Years 2011 and 2002 195
Schedule 8 – Taxable Sales and Sales Tax Rates, Last Ten Calendar Years 196
Schedule 9 – Calculation of Legal Debt Margin, Last Ten Fiscal Years 199
Schedule 10 – Ratios of Outstanding Debt by Type, Last Ten Fiscal Years 200
Schedule 11 – Pledged Future Revenue Coverage, Last Ten Fiscal Years 202
Schedule 12 – Demographic Information, Last Ten Fiscal Years 204
Schedule 13 – Principal Employers – Top 10, Current Year and Ten Years Ago 207
Schedule 14 – Schedule of State Government Full Time Equivalent Employees by Policy Area,
Last Ten Fiscal Years 208
Schedule 15 – Operating Indicators and Capital Information, Last Seven Fiscal Years 210
Schedule 16 – Capital Assets by Function, Last Seven Fiscal Years 211

I S
NTRODUCTORY ECTION

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STATE OF MAINE
DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
OFFICE OF THE STATE CONTROLLER
14 STATE HOUSE STATION AUGUSTA, ME 04333-0014

H. SAWIN MILLETT, JR. TERRY BRANN, CPA
COMMISSIONER STATE CONTROLLER

December 21, 2012

To the Honorable Paul R. LePage, Governor,
The Honorable Members of the Legislature, and
Citizens of the State of Maine

We are pleased to present the State of Maine’s Fiscal Year 2012 (FY2012) Comprehensive Annual Financial
Report (CAFR) prepared in accordance with Generally Accepted Accounting Principles (GAAP). The annual
CAFR, required by Title 5 MRSA § 1547, is compiled and published by the Office of the State Controller (OSC).
The report is the primary means of reporting the State’s financial activities. The objective of this report is to
provide a clear picture of our government as a single, unified entity, as well as providing traditional fund based
financial statements.

INTRODUCTION TO THE REPORT

Responsibility
The OSC is responsible for the accuracy, fairness and completeness of the financial statements presented in this
report. The statements have been prepared in accordance with GAAP. To the best of our knowledge and belief,
the information presented is accurate in all material respects and includes all disclosures necessary to enable the
reader to gain a reasonable understanding of Maine’s financial position and activities.

Adherence to Generally Accepted Accounting Principles
As required by State statute, we have prepared the CAFR in accordance with GAAP applicable to State and local
governments, as promulgated by the Governmental Accounting Standards Board (GASB). The State also
voluntarily follows the recommendations of the Government Finance Officers Association of the United States
and Canada (GFOA) for the contents of government financial reports.

Format of Report
This CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory Section
contains this letter including an overview of current initiatives, the list of principal elected and appointed officials,
and the State government organization chart. The Financial Section contains: the Independent Auditor’s Report
on the Basic Financial Statements; Management’s Discussion and Analysis (MD&A), which provides an
introduction, overview and analysis of the Basic Financial Statements; the Basic Financial Statements, which
present the government-wide financial statements and fund financial statements for governmental funds,
proprietary funds, fiduciary funds and similar component units, and component units, together with notes to the
financial statements; Required Supplementary Information other than MD&A, which presents budgetary
comparison schedules, schedules of pension funding progress, other post-employment benefit plans funding
progress, and information about infrastructure assets; and the supplemental financial data, which includes the
combining financial statements and schedules.
OFFICE LOCATED ON 4TH FLOOR, BURTON M. CROSS BUILDING
PHONE: [phone] FAX: [phone]
WWW.MAINE.GOV
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