Institutional Federal Compliance Report 2021

22 • STATE OF NEW YORK ______________________________________________________________________________________________

USING THIS ANNUAL REPORT This annual report consists of a series of financial statements and supplementary information. The Statement of Net Position and the Statement of Activities (on pages 35 and 36, respectively) provide information about the activities of the State as a whole and present a longer-term view of the State’s finances. Fund financial statements start on page 38. For governmental activities, these statements show how services were financed in the short-term, as well as the amount of resources that remain available for future spending. Fund financial statements also report the State’s operations in more detail than the government-wide statements by providing information about the State’s most significant funds. The remaining statements provide financial information about activities for which the State acts solely as a trustee for the benefit of those outside the government and about public benefit corporations for which the State is accountable. The layout and relationship of the financial statements and supplementary information is visually illustrated as follows:

REQUIRED SUPPLEMENTARY INFORMATION

Management’s Discussion and Analysis (MD&A)

Government-Wide Financial Statements

Governmental Fund Financial Statements

Enterprise Fund Financial Statements

Mandatory Repor ting

BASIC FINANCIAL STATEMENTS

Fiduciary Fund Financial Statements

Component Unit Financial Statements

Notes to the Basic Financial Statements

Budgetary Basis Repor ting with Notes, Infrastructure Assets Using the Modified Approach, Schedule of Funding Progress (OPEB), and Pension Plans

REQUIRED SUPPLEMENTARY INFORMATION (Other than MD&A)

OTHER SUPPLEMENTARY INFORMATION (Not Required)

Non-Mandatory Repor ting

Combining Fund Financial Statements/Schedules

Reporting the State as a Whole The Statement of Net Position and the Statement of Activities

The analysis of the State, as a whole, begins on page 24. One of the most important questions asked about the State’s finances is: “Is the State, as a whole, better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the State, as a whole, and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources, using the accrual basis of accounting, which is similar to the accounting method used by most private sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash was received or paid. These two statements report the State’s net position and changes in it. One can think of the State’s net posi- tion—the difference between (a) assets and deferred outflows of resources, and (b) liabilities and deferred inflows of resources—as one way to measure the State’s financial health, or financial position. Over time, increases or decreases in the State’s net position are one indicator of whether its financial health is improving or deteriorating. One may need to consider other nonfinancial factors, such as changes in the State’s tax structure, population, employment, and the condition of the State’s roads, bridges and buildings, in order to assess the overall health of the State. In the Statement of Net Position and the Statement of Activities, operations of the State are divided into three kinds of activities: Governmental Activities — Most of the State’s basic services are reported here, including education, public health, public welfare, public safety, transportation, environment and recreation, support and regulation of business, general government, and interest on long-term debt. Federal grants, personal income taxes, consumption and use taxes, business and other taxes, transfer of lottery revenues, and bond proceeds finance most of these activities.