For Immediate Release: Monday, December 29, 2014
Contact: Caleb Hunter – 515-725-2017
Iowa Issues Fiscal Year 2014 Comprehensive Annual Financial Report
Des Moines – The State of Iowa issued its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2014, reporting a $2,784.3 million General Fund Total Fund Balance. The CAFR was audited by the Auditor of State and received an unqualified audit opinion. The CAFR reported a General Fund budgetary balance of $706.8 million.
The total fund balance of the General Fund, the State’s principal operating fund, decreased $265.9 million, or 8.72 percent, from the fiscal year 2013 balance.
The fund balances of governmental funds, including the General Fund, are reported in categories which describe the extent to which certain resources may be spent. Resources are categorized as spendable or nonspendable.
Nonspendable fund balance includes inventory, prepaid items, noncurrent receivables and the principal of an endowment. Spendable fund balance includes resources that are in spendable form (e.g. cash) and are available for spending, and is further classified as restricted, committed, assigned or unassigned. The following describes the different levels of constraint, if any, on fund balance classifications, and the fiscal year (FY) 2014 balances of each classification for the General Fund:
Nonspendable – $41.2 million for FY 2014, includes amounts that cannot be spent because they are either not in spendable form or are legally required to remain intact. When the proceeds from noncurrent receivables are restricted, committed or assigned, the fund balances for those amounts will be reported in the appropriate spendable fund balance classification.
Restricted – $1,045.2 million for FY 2014, includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers (e.g. creditors, grantors and contributors) or enabling legislation.
Committed – $1,912.5 million for FY 2014, includes amounts that can be used only for the specific purposes determined by a formal action of the Iowa Legislature and Governor which represent the State’s highest level of decision-making authority. Formal action consists of legislation passed by both the House and Senate and signed by the Governor and is required to establish, modify or rescind a limitation. A portion of the FY 2014 committed fund balance is comprised of $669.9 million in reserve (rainy day) funds.
Assigned – includes amounts intended to be used by the State for a specific purpose but do not meet the criteria to be classified as restricted or committed. Currently, the State does not have a policy which authorizes the establishment of assigned fund balances.
Unassigned – negative $214.7 million for FY 2014, includes the residual amount of the General Fund not included in the categories above, which is available for any purpose.
The government-wide financial statements are prepared on an accrual basis of accounting and are intended to provide a broad view of the State’s financial activity. The Government-wide Statement of Net Position reported that total net position of the primary government increased by $775.8 million, or 5.12 percent, to $15,939.2 million at June 30, 2014.
The CAFR can be viewed here. It was prepared by the State Accounting Enterprise of the Department of Administrative Services in accordance with generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB).