Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 61

trusts meeting the specified criteria should be reported. Additionally, the Statement describes note disclosure requirements for defined contri- bution OPEB plans that are administered through trusts that meet the specified criteria. Refer to Note 13 for additional information on the State’s OPEB plan, which is not administered through a trust or equivalent arrangement. The implemen- tation of this statement did not have a significant impact on the State’s financial statements. GASB Statement No. 80, Blending Requirements for Certain Component Units (GASBS 80), amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorpo- rated as a not-for-profit corporation in which the primary government is the sole corporate member. Implementation of GASBS 80 resulted in a restate- ment of beginning net position in the State’s busi- ness-type activities and discretely presented component units. A component unit of SUNY previously included in the State’s discretely pre- sented component units under SUNY Foundations and Auxiliary Corporations is now included in the SUNY Enterprise Fund, as it meets the new criteria for blended presentation. GASB Statement No. 81, Irrevocable Split-Interest Agreements (GASBS 81), provides recognition and measurement guidance for situations in which a government is a beneficiary of a split-interest agreement, a type of giving agreement used by donors to provide resources to two or more ben- eficiaries, including governments. This Statement requires a government that has received resources pursuant to an irrevocable split-interest agreement to recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. It also requires a government to recognize assets representing its beneficial interests in irrevocable split-interest agreements administered by a third party, if the government controls the present service capacity of the beneficial interests, and requires a government to recognize revenue when the resources become applicable to the reporting period. The implementation of GASBS 81 did not have a significant impact on the State’s finan- cial statements.

Capital Projects Funds are the result of differences in cash flow timing relating to the reimbursement of capital project costs and contractual commitments from bond proceeds, and are routinely resolved during subsequent fiscal years. The Mass Transportation Operating Assistance Fund ($49 million) and the ENCON (Department of Environmental Conservation) Special Revenue Fund ($10 million), both of which are Special Revenue Funds, also had fund deficits. The deficits are the result of timing differences between the receipt of cash and the transfer of funds to finance operating expenditures. r. Estimates The preparation of the basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, lia- bilities and deferred inflows of resources, and disclo- sure of contingent assets and liabilities at the date of the basic financial statements. Estimates also affect the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. s. Adoption of New Accounting Pronouncements During the fiscal year ended March 31, 2018, the State adopted the following new accounting standards as issued by GASB: GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pensions (GASBS 74), replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans , as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multi- ple-Employer Plans . It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in State- ment No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Con- tribution Plans , as amended, Statement No. 43, and Statement No. 50, Pension Disclosures . GASBS 74 addresses separate financial reporting by defined benefit OPEB plans that are administered through trusts that meet specified criteria. GASBS 74 also addresses how assets accumulated for pur- poses of providing OPEB through defined benefit OPEB plans that are not administered through