This is trial version www.adultpdf.com 54 Chapter 3: Financial Audit Exhibit 3.2 Assets Cash and short-term investments held in State Treasury 3,646,951$ Capital assets, net 5,488,443 Total assets 9,135,394 Liabilities Vouc h ers paya bl e 501,776 Accrue d payro ll an d emp l oyee b ene fi ts paya bl e 316,891 Due to ot h er agenc i es 677,480 Due to State Genera l Fun d 6,000 Long-term li a bili t i es Due w i t hi n one yea r Wor k ers' compensat i on li a bili ty 6,500,000 Accrued vacation 582,000 Capital lease obligations 24,800 Due in more than one yea r Workers' compensation liability 22,725,000 Accrue d vacat i on 852,702 Cap i ta l l ease o bli gat i ons 24,512 Total liabilities 32,211,161 Net assets Investe d i n cap i ta l assets, net o f re l ate d d e b t 5,439,131 Unrestr i cte d ( 28,514,898 ) Total net assets (23,075,767)$ T h e accompany i ng notes are an i ntegra l part o f t h e fi nanc i a l statements. Department of Human Resources Development State of Hawaii Statement of Net Assets June 30, 2006 This is trial version www.adultpdf.com 55 Chapter 3: Financial Audit Exhibit 3.3 Program Revenue Net Expense Program Charges for and Changes Functions/Programs Expenses Services in Net Assets General administration 1,395,670$ -$ (1,395,670)$ Employee claims 1,623,426 118,818 (1,504,608) Employee classification and compensation 1,096,666 - (1,096,666) Employee relations 2,025,389 226,083 (1,799,306) Employee staffing 1,648,299 - (1,648,299) Merit appeals board 7,026 - (7,026) Unemployment insurance claim payments 1,299,177 1,142,924 (156,253) Workers' compensation claims and benefits 7,221,978 1,535,577 (5,686,401) Total governmental activities 16,317,631$ 3,023,402$ (13,294,229) General revenues State allotted appropriations, net of lapsed appropriations 14,539,215 Change in net assets 1,244,986 Net assets at July 1, 2005 (24,320,753) Net assets at June 30, 2006 (23,075,767)$ The accompanying notes are an integral part of the financial statements. Department of Human Resources Development State of Hawaii Statement of Activities Year Ended June 30, 2006 This is trial version www.adultpdf.com 56 Chapter 3: Financial Audit Human Workers’ Unem p lo y ment Resources Com p ensation Insurance Develo p ment Inter- Inter- Total General S p ecial de p artmental de p artmental Governmental Fund Fund Account Account Other Funds Assets Cash and short-term investments held in State Treasury 1,005,898$ 282,645$ 1,493,879$ 860,846$ 3,683$ 3,646,951$ Total assets 1,005,898$ 282,645$ 1,493,879$ 860,846$ 3,683$ 3,646,951$ Liabilities and Fund Balances Liabilities Vouchers payable 497,445$ 4,331$ -$ -$ -$ 501,776$ Accrued payroll and employee benefits payable 316,891 - - - - 316,891 Due to other agencies 677,480 - - - - 677,480 Due to State General Fun d 6,000 - - - - 6,000 Total liabilities 1,497,816 4,331 - - - 1,502,147 Fund balances Reserved for encumbrances 485,960 - - - - 485,960 Unreserved (977,878) 278,314 1,493,879 860,846 3,683 1,658,844 Total fund balances (491,918) 278,314 1,493,879 860,846 3,683 2,144,804 Total liabilities and fund balances 1,005,898$ 282,645$ 1,493,879$ 860,846$ 3,683$ 3,646,951$ The accompanying notes are an integral part of the financial statements. June 30, 2006 Exhibit 3.4 De p artment of Human Resources Develo p ment State of Hawaii Balance Sheet - Governmental Funds This is trial version www.adultpdf.com 57 Chapter 3: Financial Audit Human Workers’ Unemployment Resources Compensation Insurance Development Inter- Inter- Total General Special departmental departmental Governmental Fund Fund Account Account Other Funds Revenues State allotted appropriations 16,124,858$ -$ -$ -$ -$ 16,124,858$ Intergovernmental revenues - - 1,535,577 1,142,924 - 2,678,501 Othe r - 344,901 - - - 344,901 Total revenues 16,124,858 344,901 1,535,577 1,142,924 - 19,148,260 Expenditures General administration 1,376,362 - - - - 1,376,362 Employee claims 1,435,250 40,245 - - - 1,475,495 Employee classification and compensation 1,008,917 - - - - 1,008,917 Employee relations 1,608,637 267,285 - - - 1,875,922 Employee staffing 1,477,487 - - - - 1,477,487 Merit appeals board 7,026 - - - - 7,026 Unemployment insurance claim payments Workers’ compensation claims and 1,017,099 - - 282,078 - 1,299,177 benefits 6,508,280 - 41,698 - - 6,549,978 Total expenditures 14,439,058 307,530 41,698 282,078 - 15,070,364 Excess of revenues over expenditures 1,685,800 37,371 1,493,879 860,846 - 4,077,896 Lapsed appropriations (1,585,643) - - - - (1,585,643) Excess of revenues over expenditures and lapsed appropriations 100,157 37,371 1,493,879 860,846 - 2,492,253 Fund balances at July 1, 2005 (592,075) 240,943 - - 3,683 (347,449) Fund balances at June 30, 2006 (491,918)$ 278,314$ 1,493,879$ 860,846$ 3,683$ 2,144,804$ The accompanying notes are an integral part of the financial statements. Year Ended June 30, 2006 Exhibit 3.5 Department of Human Resources Development State of Hawaii Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds This is trial version www.adultpdf.com 58 Chapter 3: Financial Audit Exhibit 3.6 Total fund balance ― governmental funds 2,144,804$ Amounts reported in the statement of net assets are different because Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds 5,488,443 Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds Workers’ compensation liability (29,225,000) Accrued vacation (1,434,702) Capital lease obligations (49,312) Net assets of governmental activities (23,075,767)$ The accompanying notes are an integral part of the financial statements. Department of Human Resources Development State of Hawaii Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets June 30, 2006 This is trial version www.adultpdf.com 59 Chapter 3: Financial Audit Exhibit 3.7 Total net change in fund balances – governmental funds 2,492,253$ Amounts reported in the statement of net assets are different because Capital outlays are reported as expenditures in governmental funds. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives and reported as depreciation expense. In the current period, these amounts are: Capital outlays 50,183 Depreciation expense (615,176) (564,993) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds. Change in workers' compensation liabilit y (672,000) Change in accrued vacation (19,172) (691,172) Capital lease principal payments of $21,198 are expenditures in the governmental funds, but the payments reduced the long-term liabilities in the statement of net assets. This was offset by a capital addition of $12,300. 8,898 Change in net assets of governmental activities 1,244,986$ The accompanying notes are an integral part of the financial statements. Department of Human Resources Development State of Hawaii Reconciliation of the Governmental Funds Statement of Revenues, Expenditures Year Ended June 30, 2006 and Changes in Fund Balances to the Statement of Activities This is trial version www.adultpdf.com 60 Chapter 3: Financial Audit Exhibit 3.8 Actual Variance Original Final Budgetary Positive Budget Budget Basis (Negative) Revenue State allotted appropriations 15,963,323$ 16,124,858$ 16,124,858$ -$ Expenditures General administration 1,339,742 1,464,742 1,461,655 3,087 Employee claims 1,443,273 1,449,691 1,440,214 9,477 Employee classification and compensation 1,032,382 1,042,383 1,019,775 22,608 Employee relations 1,629,070 1,643,912 1,631,473 12,439 Employee staffing 1,500,545 1,505,819 1,455,897 49,922 Merit appeals board 7,069 7,069 6,973 96 Unemployment insurance claim payments 1,021,620 1,021,620 1,017,099 4,521 Workers’ compensation claims and benefits 7,989,622 7,989,622 6,549,579 1,440,043 Total expenditures 15,963,323 16,124,858 14,582,665 1,542,193 Excess of revenues over expenditures -$ -$ 1,542,193$ 1,542,193$ The accompanying notes are an integral part of the financial statements. Department of Human Resources Development State of Hawaii Statement of Revenues and Expenditures - Budget and Actual (Budgetary Basis) Year Ended June 30, 2006 General Fund This is trial version www.adultpdf.com 61 Chapter 3: Financial Audit Exhibit 3.9 Actual Variance Original Final Budgetary Positive Budget Budget Basis (Negative) Human Resources Development Special Fund Revenue 700,000$ 700,000$ 344,901$ (355,099)$ Expenditures Employee claims 200,000 200,000 38,136 161,864 Employee relations 500,000 500,000 290,092 209,908 700,000 700,000 328,228 371,772 Excess of revenues over expenditures -$ -$ 16,673$ 16,673$ Workers' Compensation Interdepartmental Account Revenue 1,886,281$ 1,886,281$ 1,535,577$ (350,704)$ Expenditures Workers’ compensation claims and benefits 1,886,281 1,886,281 41,698 1,844,583 Excess of revenues over expenditures -$ -$ 1,493,879$ 1,493,879$ Unemployment Insurance Interdepartmental Account Revenue 3,000,000$ 3,000,000$ 1,142,924$ (1,857,076)$ Expenditures Unemployment insurance claim payments 3,000,000 3,000,000 282,078 2,717,922 Excess of revenues over expenditures -$ -$ 860,846$ 860,846$ The accompanying notes are an integral part of the financial statements. Department of Human Resources Development State of Hawaii Statement of Revenues and Expenditures - Budget and Actual - Other Major Funds Year Ended June 30, 2006 This is trial version www.adultpdf.com 62 Chapter 3: Financial Audit This page intentionally left blank. This is trial version www.adultpdf.com . This is trial version www.adultpdf.com 54 Chapter 3: Financial Audit Exhibit 3.2 Assets Cash and short-term investments held in State Treasury. Development State of Hawaii Statement of Net Assets June 30, 2006 This is trial version www.adultpdf.com 55 Chapter 3: Financial Audit Exhibit 3.3 Program Revenue Net Expense Program Charges for and Changes Functions/Programs. Hawaii Statement of Activities Year Ended June 30, 2006 This is trial version www.adultpdf.com 56 Chapter 3: Financial Audit Human Workers’ Unem p lo y ment Resources Com p ensation Insurance Develo p ment