State of Missouri Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2019

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by  Missouri Office of Administration, Division of Accounting

STATE OF MISSOURI
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended June 30, 2019
Michael L. Parson
Governor
SARAH H. STEELMAN
Commissioner
Office of Administration
STACY NEAL
Director
Division of Accounting
Prepared by
Office of Administration, Division of Accounting
On the Cover:
Missouri State Capitol, Mayor Carrie Tergin, Photographer
This report can be viewed on the Internet at http://oa.mo.gov/accounting/reports
STATE OF MISSOURI
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal ............................................................................................................................................. I
Organizational Chart ........................................................................................................................................... VI
Principal State Officials ....................................................................................................................................... VII
FINANCIAL SECTION
Auditor's Opinion ................................................................................................................................................. i
Management's Discussion and Analysis ............................................................................................................. 1
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position .......................................................................................................................... 14
Statement of Activities ............................................................................................................................... 15
Fund Financial Statements
Governmental Funds
Balance Sheet ....................................................................................................................................... 18
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............ 19
Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................. 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances in
Governmental Funds to the Statement of Activities ............................................................................... 21
Proprietary Funds
Statement of Net Position ...................................................................................................................... 23
Statement of Revenues, Expenses, and Changes in Fund Net Position ............................................... 24
Statement of Cash Flows ...................................................................................................................... 25
Fiduciary Funds
Statement of Fiduciary Net Position ...................................................................................................... 27
Statement of Changes in Fiduciary Net Position ................................................................................... 28
Component Units
Statement of Net Position ...................................................................................................................... 30
Statement of Revenues, Expenses, and Changes in Net Position/Statements of Activities .................. 31
Notes to the Financial Statements .................................................................................................................. 34
Required Supplementary Information
Budgetary Comparison Schedule General Fund, Major Special Revenue Funds .......................................... 140
Notes to Required Supplementary Information Budgetary Reporting ............................................................ 142
Schedule of Changes in Net Pension Liability and Related Ratios ................................................................ 143
Schedule of Proportionate Share of the Net Pension Liability ........................................................................ 146
Schedule of State Contributions ..................................................................................................................... 147
Schedule of Changes in Total OPEB Liability and Related Ratios ................................................................. 148
Schedule of Changes in Net OPEB Liability and Related Ratios ................................................................... 149
Schedule of Proportionate Share of the Collective Net OPEB Liability .......................................................... 150
Supplementary Information
Budgetary Comparison Schedule Major Capital Projects Fund ...................................................................... 152
Combining Fund Statement - General Fund
Balance Sheet ....................................................................................................................................... 154
Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................ 155
Combining and Individual Fund Statements - Non-major Funds
Governmental Funds
Combining Balance Sheet Non-Major Governmental Funds - by Fund Type ............................................. 156
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major
Governmental Funds - by Fund Type ......................................................................................................... 157
Special Revenue Funds
Combining Balance Sheet ..................................................................................................................... 160
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................ 161
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget (Non-
GAAP Budgetary Basis) and Actual ...................................................................................................... 162
Debt Service Funds
Combining Balance Sheet ..................................................................................................................... 168
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................ 169
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget (Non-
GAAP Budgetary Basis) and Actual ...................................................................................................... 170
Capital Projects Funds
Combining Balance Sheet ..................................................................................................................... 175
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................ 176
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget (Non-
GAAP Budgetary Basis) and Actual ...................................................................................................... 177
Permanent Funds
Combining Balance Sheet ..................................................................................................................... 181
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................ 182
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget (Non-
GAAP Budgetary Basis) and Actual ...................................................................................................... 183
Proprietary Funds
Enterprise Funds
Combining Statement of Net Position .................................................................................................... 188
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ............................. 190
Combining Statement of Cash Flows .................................................................................................... 192
Internal Service Funds
Combining Statement of Net Position .................................................................................................... 196
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ............................. 198
Combining Statement of Cash Flows .................................................................................................... 200
Fiduciary Funds
Pension (and Other Employee Benefit) Trust Funds
Combining Statement of Fiduciary Net Position .................................................................................... 204
Combining Statement of Changes in Fiduciary Net Position ................................................................. 205
Private-Purpose Trust Funds
Combining Statement of Fiduciary Net Position .................................................................................... 206
Combining Statement of Changes in Fiduciary Net Position ................................................................. 207
Agency Funds
Combining Balance Sheet ..................................................................................................................... 208
Combining Statement of Changes in Assets and Liabilities .................................................................. 209
Component Units
Combining Statement of Net Position .................................................................................................... 212
Combining Statement of Revenues, Expenses, and Changes in Net Position ...................................... 213
Combining Statement of Cash Flows .................................................................................................... 214
STATISTICAL SECTION
Financial Trends
Net Position by Component ............................................................................................................................ 217
Changes in Net Position ................................................................................................................................. 218
Fund Balances - Governmental Funds ........................................................................................................... 220
Changes in Fund Balances - Governmental Funds ........................................................................................ 221
Revenue Capacity
Revenue Base - Taxable Sales by Industry .................................................................................................... 223
Revenue Base - Personal Income by Industry ............................................................................................... 224
Personal Income Tax Revenue ....................................................................................................................... 225
Personal Income Tax Rates ............................................................................................................................ 226
Revenue Payers by Industry ........................................................................................................................... 227
Personal Income Tax Filers/Liability ............................................................................................................... 228
Debt Capacity
Ratios of Outstanding Debt ............................................................................................................................ 229
Pledged Revenue Coverage ........................................................................................................................... 231
Demographic and Economic Information
Demographic Indicators ................................................................................................................................. 232
Economic Indicators ....................................................................................................................................... 233
Principal Employers ........................................................................................................................................ 234
Operating Information
State Employees by Function ......................................................................................................................... 235
Operating Indicators by Function .................................................................................................................... 236
Capital Asset Statistics by Function ................................................................................................................ 238
Acknowledgements ................................................................................................................................................. 240
The Introductory Section includes material to familiarize the
reader with the organizational structure of the State, the nature
and scope of services the State provides, and a summary of the
financial activities of the State and the factors that influence
these activities.
Michael L. Parson
Governor
State of Missouri
Sarah Steelman OFFICE OF ADMINISTRATION Stacy Neal
Commissioner Division of Accounting Director
570 Truman Building, 301 West High Street
Post Office Box 809
Jefferson City, Missouri 65102
573 751-2971
INTERNET: http://www.oa.mo.gov/acct
E-MAIL: [email protected]
January 9, 2020
The Honorable Michael L. Parson
The Honorable Members of the Legislature
Citizens of the State of Missouri
In accordance with generally accepted accounting principles, I submit to you the Comprehensive Annual Financial
Report (CAFR) of the State of Missouri for the fiscal year ended June 30, 2019. This report was prepared by the Office
of Administration, Division of Accounting, whose management is responsible for its contents.
The report is prepared to show the financial position and operating results of the State. The State’s internal
accounting controls provide reasonable assurance regarding the safeguarding of assets against loss from unauthorized
use or disposal and the reliability of financial records for preparing financial statements. The concept of reasonable
assurance recognizes that the cost of a control should not exceed the resulting benefit. We believe the data presented
is accurate in all material respects and that all disclosures necessary to enable the reader to gain a reasonable
understanding of the State’s financial activities have been included.
An annual audit of the basic financial statements is completed each year by the State Auditor’s Office. The State
Auditor conducts the audit in accordance with generally accepted government auditing standards, and her opinion
has been included in this report. The State Auditor conducts a "Single Audit" of all federal funds in accordance with
the Federal Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform guidance).
A narrative introduction, overview, and analysis of the basic financial statements is presented in the Management’s
Discussion and Analysis (MD&A) section of this report. This letter of transmittal is intended to complement MD&A
and should be read in conjunction with it. The MD&A can be found immediately following the Independent Auditor’s
Report.
PROFILE OF THE GOVERNMENT
Missouri was organized as a territory in 1812 and was the second state (after Louisiana) of the Louisiana Purchase
to be admitted to the Union. Statehood was granted on August 10, 1821, making Missouri the 24th state. The State
encompasses 68,945 square miles.
The State operates under three branches of government: executive, legislative, and judicial. The executive branch
consists of the Governor, Lieutenant Governor, Secretary of State, State Auditor, State Treasurer, and Attorney General.
The legislative branch consists of 34 members of the Senate and 163 members of the House of Representatives. The
judicial branch is a three-tier court system: the Supreme Court, the State’s highest court, has statewide jurisdiction;
a court of appeals that consists of districts established by the General Assembly; and a system of circuit courts that
has original jurisdiction over all cases and matters, civil and criminal.
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The State provides a range of services in the areas of agriculture, education, health and social services,
transportation systems, public safety, judicial systems, economic development, conservation and natural resources,
labor relations, and general administration.
The State operates on a legally adopted budget in order to ensure compliance with legal provisions embodied in
the annual appropriated budget passed by the General Assembly and approved by the Governor prior to the beginning
of the fiscal year. If appropriations are not sufficient for a fiscal year, supplemental amounts are requested during the
next legislative session by the same process that original appropriations are requested. Budgets are established at
the program level. Expenditures cannot exceed the individual appropriation amount. The Governor has the authority
to reduce the allotments of appropriations in any fund if it appears that the revenue estimate will not be met. Article
IV, Section 27 of the Missouri Constitution, amended in 2014, requires the Governor to notify the General Assembly
if the Governor reduces allotments when it appears revenues will be less than estimated. This Section then gives the
General Assembly the authority to overturn any of the Governor’s restrictions with a two-thirds vote, similar to the
procedure to overturn a veto. Unexpended appropriations lapse at the end of each fiscal year, unless reappropriated
to the following budget fiscal year.
The financial reporting entity of the State includes all of the funds of the primary government as well as component
units for which the State is financially accountable. The transmittal letter, MD&A, and the financial statements focus
on the primary government and its activities. Although information pertaining to the component units is provided, their
separately issued financial statements should be read to obtain a complete overview of their financial position.
ECONOMIC CONDITION AND OUTLOOK
State Economy
Missouri's economy saw its seventh consecutive year of Annual Real GDP growth in 2018. Missouri's GDP was
$282.2 billion in inflation-adjusted dollars; this is a 2.3% increase over 2017. Missouri's per capita personal income
was $46,635 in 2018, an increase of 3.6% from 2017. The national per capita income is $53,712. While the State's
per capita income is lower than the national average, so is the cost of living. In 2018, Missouri ranked 4th lowest in
cost of living for states.

Personal Income Annual Growth Rate
Source: MERIC 2019 Missouri Economic Report
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