Institutional Federal Compliance Report 2021

u. Restatements The restatements of beginning net position in the governmental activities, business-type activities and discretely presented component units of the State were as follows (amounts in millions): 66 • Notes to Basic Financial Statements __________________________________________________________________________ Net Position at Net Position at March 31, 2018 Restatement April 1, 2018 Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,608 $ (31,928) $ (3,320) Business-Type Activities/Enterprise Funds: Lottery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350 $ (67) $ 283 Unemployment Insurance Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,100 —00000 3,100 SUNY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,991) (7,791) (10,782) CUNY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (390) (700) (1,090) Total Business-Type Activities/Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69 $ (8,558) $ (8,489) Discretely Presented Component Units: New York Power Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,739 $ (107) $ 4,632 New York State Housing Finance Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876 10 886 New York State Thruway Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,302 (508) 794 Metropolitan Transportation Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,224 (1,121) 4,103 Dormitory Authority of the State of New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 (46) 153 Long Island Power Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 472 —00000 472 Urban Development Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,677 (79) 2,598 State Insurance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,823 (635) 4,188 State of New York Mortgage Agency (SONYMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,428 10 2,438 New York State Environmental Facilities Corporation . . . . . . . . . . . . . . . . . . . . . . . 6,530 (13) 6,517 Non-Major Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,459 (732) 5,727 Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 —00000 144 Total Discretely Presented Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,873 $ (3,221) $ 32,652

The restatements were primarily related to the adoption of GASBS 75, Accounting and Financial Report- ing for Postemployment Benefits Other Than Pensions , which established accounting and financial reporting for OPEB plans including the immediate recognition of the full actuarial accrued liability upon adoption, as discussed in Note 1.t. A small portion of the SUNY

restatement was attributable to SUNY’s late adoption of GASBS 81, Irrevocable Split-Interest Agreements , which the State adopted during the fiscal year ended March 31, 2018. A restatement made by one of the non-major component units, the Aggregate Trust Fund, corrected for a $9 million overstatement of liabilities reported in its prior year financial statements.

Cash and Investments

Note 2

Governmental Activities, Private Purpose and Agency Funds Deposits

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. 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

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 investment pool (STIP) administered by the State Comptroller or by the fund custodian to maximize interest earnings. Cash is invested in repurchase agree- ments involving United States (U.S.) Treasury oblig- at ions, U.S. Treasury bi l ls, 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.