Institutional Federal Compliance Report 2021

60 • Notes to Basic Financial Statements __________________________________________________________________________ Fund Balances Fund balances at March 31, 2018 are as follows (amounts in millions): Major Funds Federal General Other General Special Debt Governmental Fund Revenue Service Funds Restricted for: Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —00000 $ —00000 $ —00000 $ 5 Public health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 11 —00000 46 Environment and recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 11 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 285 General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 106 Debt service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 737 507 Capital purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 106 Committed to: Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 —00000 —00000 77 Public health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 92 Mental hygiene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 —00000 —00000 —00000 Health care initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 1,220 Environment and recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 150 Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 290 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 358 Economic development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 16 General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 268 Debt service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 19 586 Capital purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 1,719 Fund reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,272 —00000 —00000 —00000 Assigned to: Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 —00000 —00000 311 Public health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 —00000 —00000 —00000 Mental hygiene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 —00000 —00000 —00000 Public welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 —00000 —00000 —00000 Environment and recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 18 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 49 Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 —00000 —00000 —00000 Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 2,250 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 746 General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 —00000 —00000 —00000 Debt service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —00000 —00000 —00000 3 Unassigned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,048 —00000 —00000 (893) Total fund balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,672 $ 11 $ 756 $ 8,326

p. Postemployment Benefits Other postemployment costs are measured and dis- closed using the accrual basis of accounting in the government-wide and enterprise funds financial state- ments (Note 13). In addition to providing pension benefits, the State is statutorily required to provide health insurance coverage and survivor benefits for retired employees and their survivors. Substantially all of the State’s employees may become eligible for these benefits if they reach normal retirement age while working for the State. Health care benefits are provided through plans whose premiums are based on the benefits paid during the year. The cost of pro- viding postemployment benefits is shared between the State and the retired employee. The State, includ- ing the Lottery, recognizes the cost of providing health insurance by recording its share of insurance premiums

as an expenditure in the respective fund in the year paid. Additionally, the survivor’s benefit program provides for a death benefit to be paid by the State to a retiree’s designated beneficiary. During the year, approximately $12 million was paid on behalf of 3,988 retirees for this benefit and recorded as an expenditure in the General Fund. q. Deficit Fund Balances As of March 31, 2018, fund deficits were reported in the following Capital Projects Funds: the Correctional Facilities Capital Improvement Fund ($221 million), the Housing Program Fund ($182 million), the Mental Hygiene Facilities Capital Improvement Fund ($135 million), the Hazardous Waste Remedial Fund ($83 million), and Miscellaneous Capital Projects Funds, in aggregate ($42 million). The deficits related to the