NOTE TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY REPORTING

… in Note 1C, the State's budget system uses only a General Fund and a Special Fund, each of which uses the basis of accounting described below. Additionally, the activities of certain component units of the State, which are not substantially su …

… bly a State budget for the ensuing year. The State budgets and controls its financial activities on the cash basis of accounting. In compliance with State law, the State records its financial transactions in either of two major categories -- the …

… the compliance with the legal level of budgetary control is presented on the following pages. 109 Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders) outstanding at year-end do not constitute exp …

… orted as reservations of fund balances because the commitments will be honored during the subsequent year. While accounting principles generally accepted in the United States of America (GAAP) requires the use of the fund structure described …

… clude encumbrances and multi-year projects budgetary carry-forwards from the prior fiscal year. Generally accepted accounting principles (GAAP) require that the final legal budget be reflected in the “final budget” column, therefore updated re …

… ndGeneral Fund Special Funds Non-Budgeted Total Budgeted Amounts 113 Statutory/Budgetary Reconciliation Since accounting principles applied for purposes of developing data on a budgetary basis differ significantly from those used to prese …

… 1. The State’s budget system uses only a General Fund and a Special Fund, each of which uses the cash basis of accounting. The following data reflects the adjustments made to increase the Special Fund’s excess of revenues over expendi …