Institutional Federal Compliance Report 2021

t. Restatements A number of the entities included in the State report- ing entity made restatements of beginning net position as follows (amounts in millions): 62 • Notes to Basic Financial Statements __________________________________________________________________________ Net Position at Net Position at March 31, 2017 Restatement April 1, 2017 Business-Type Activities/Enterprise Funds: SUNY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2,423) $ 1 $ (2,422) Discretely Presented Component Units: New York Power Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,081 $ 539 $ 4,620 New York State Thruway Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,799 (539) 1,260 Metropolitan Transportation Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,607 153 5,760 State Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,349 375 3,724 New York Convention Center Operating Corporation . . . . . . . . . . . . . . . . . . . . . . . . 42 4 46 SUNY Foundations and Auxiliary Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,515 (8) 2,507 $ 17,393 $ 524 $ 17,917

The SUNY restatement is related to the imple- mentation of GASBS 80 as noted in Note 1.s. The respective restatements of the New York Power Author- ity (NYPA) and the New York State Thruway Authority (NYSTA) relate to the transfer of the New York State Canal Corporation, formerly a subsidiary of NYSTA, to NYPA in accordance with enacted legislation (see Note 14). The Metropolitan Transportation Authority (MTA) restatement is related to a change made by an MTA subsidiary in the method used to amortize bond premiums and discounts. The State Insurance Fund

(SIF) restatement resulted from a change in accounting principle to measure its share of the State’s other postemployment benefits (OPEB) and compensated absences liability. The New York Convention Center Operating Corporation restatement is the result of early implementation of GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions . The SUNY Foundations and Auxiliary Corporations restatement is related to the implementation of GASBS 80 by SUNY and the correction of an error. For demand accounts, checking accounts and cer- tificates of deposit, the State requires that its depository banks pledge collateral or provide a surety bond based on actual and average daily available bank balances. All securities pledged as collateral are held by the State’s fiscal agent in the name of the State and are valued on a monthly basis. Surety bonds will be accepted only from companies with the highest ratings issued by nationally recognized statistical rating orga- nizations (NRSROs). The use of average daily available balances to determine collateral requirements may result in the available balances being undercollater- alized at various times during the fiscal year. The State’s cash management policy is to invest all major revenues as soon as the monies are available within the banking system, which limits undercollateralization. The State’s cash deposits with financial institutions had a book and bank balance of $9.9 billion and were fully collateralized at the end of the 2018 fiscal year. Included in these balances were certificates of deposit held in the STIP with a book and bank balance of $3.2 billion. Also included are deposits with a book and bank balance of $502 million that were held by the State’s fiscal agent and were exposed to custodial

Cash and Investments

Note 2

Governmental Activities, Private Purpose and Agency Funds Deposits

The State maintains approximately 3,000 bank accounts for various purposes at locations throughout the State. Cash deposits in the State Treasury are under the joint custody of the State Comptroller and the Commissioner of Taxation and Finance. Cash balances not required for immediate use are invested in a short-term invest- ment pool (STIP) administered by the State Comp- troller or by the fund custodian to maximize interest earnings. Cash is invested in repurchase agreements involving United States (U.S.) Treasury obligations, U.S. Treasury bills, commercial paper, government- sponsored agency bonds, and certificates of deposit. Cash deposits not held in the State Treasury are under the sole custody of a specified State official and are generally held in interest-bearing accounts. Both the State Comptroller and the Commissioner of Taxation and Finance are sole custodians of certain accounts. The custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the State will not be able to recover deposits or collateral securities that are in the possession of an outside party.