Exhibit A.3 - CAFR'16.pdf

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 43

BASIC FINANCIAL STATEMENTS

44 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 45

STATEMENT OF NET POSITIONJUNE 30, 2016

PRIMARY GOVERNMENT

(DOLLARS IN THOUSANDS) GOVERNMENTAL BUSINESS-TYPE COMPONENT

ACTIVITIES ACTIVITIES TOTAL UNITS

ASSETS:

Current Assets:

Cash and Pooled Cash 2,703,416$ 2,525,453$ 5,228,869$ 278,268$ Investments - 392,188 392,188 7,795 Taxes Receivable, net 1,251,185 123,638 1,374,823 - Contributions Receivable, net - - - 56,681 Other Receivables, net 572,655 640,664 1,213,319 81,857 Due From Other Governments 440,053 94,860 534,913 3,411 Internal Balances 28,967 (28,967) - - Due From Component Units 347 18,188 18,535 - Inventories 53,261 54,748 108,009 - Prepaids, Advances and Deposits 67,468 28,756 96,224 5,534 Total Current Assets 5,117,352 3,849,528 8,966,880 433,546 Noncurrent Assets:

Restricted Assets:

Restricted Cash and Pooled Cash 1,923,920 457,926 2,381,846 123,726 Restricted Investments 732,662 167,540 900,202 158,737 Restricted Receivables 510,028 40,009 550,037 2,532 Investments 219,369 1,941,040 2,160,409 2,366,357 Contributions Receivable, net - - - 139,051 Other Long-Term Assets 675,809 129,425 805,234 900,600 Depreciable Capital Assets and Infrastructure, net 9,976,023 7,050,226 17,026,249 206,324 Land and Nondepreciable Capital Assets 1,851,910 1,652,441 3,504,351 58,360 Depreciable Capital Assets for Investment 33,055 - 33,055 - Total Noncurrent Assets 15,922,776 11,438,607 27,361,383 3,955,687

TOTAL ASSETS 21,040,128 15,288,135 36,328,263 4,389,233

DEFERRED OUTFLOW OF RESOURCES: 818,761 649,853 1,468,614 3,715

LIABILITIES:

Current Liabilities:

Tax Refunds Payable 856,076 - 856,076 - Accounts Payable and Accrued Liabilities 1,166,681 771,248 1,937,929 30,056 TABOR Refund Liability (Note 8B) 31,358 - 31,358 - Due To Other Governments 232,724 38,615 271,339 200 Due To Component Units - 645 645 - Unearned Revenue 123,769 306,222 429,991 - Accrued Compensated Absences 11,522 22,761 34,283 - Claims and Judgments Payable 46,343 - 46,343 - Leases Payable 28,261 9,132 37,393 - Notes, Bonds, and COPs Payable 171,835 267,134 438,969 53,150 Other Current Liabilities 29,525 139,765 169,290 169,339 Total Current Liabilities 2,698,094 1,555,522 4,253,616 252,745 Noncurrent Liabilities:

Deposits Held In Custody For Others 90 20 110 376,818 Accrued Compensated Absences 154,510 293,365 447,875 - Claims and Judgments Payable 276,010 39,657 315,667 - Capital Lease Payable 122,404 47,994 170,398 - Derivative Instrument Liability - 13,222 13,222 - Notes, Bonds, and COPs Payable 1,174,467 4,480,091 5,654,558 664,796 Due to Component Units - 1,631 1,631 - Net Pension Liability 6,295,004 3,957,073 10,252,077 3,333 Other Postemployment Benefits - 289,133 289,133 - Other Long-Term Liabilities 415,669 28,569 444,238 76,143 Total Noncurrent Liabilities 8,438,154 9,150,755 17,588,909 1,121,090

TOTAL LIABILITIES 11,136,248 10,706,277 21,842,525 1,373,835

DEFERRED INFLOW OF RESOURCES: 133,375 250,058 383,433 405

NET POSITION:

Net investment in Capital Assets: 11,330,474 5,051,345 16,381,819 216,840 Restricted for:

Construction and Highway Maintenance 966,743 - 966,743 - Education 309,957 462,636 772,593 - Unemployment Insurance - 740,049 740,049 - Debt Service 68,105 85,617 153,722 - Emergencies 217,328 34,000 251,328 - Permanent Funds and Endowments:

Expendable 5,801 157,611 163,412 1,107,777 Nonexpendable 950,976 83,274 1,034,250 911,004 Other Purposes 717,185 101,209 818,394 633,718 Unrestricted (3,977,303) (1,734,088) (5,711,391) 149,369

TOTAL NET POSITION 10,589,266$ 4,981,653$ 15,570,919$ 3,018,708$

The notes to the financial statements are an integral part of this statement.

46 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2016

Expenses Program Revenues (DOLLARS IN THOUSANDS) Indirect Operating Capital

Cost Charges for Grants and Grants and Functions/Programs Expenses Allocation Services Contributions Contributions Primary Government:

Governmental Activities:

General Government 507,827$ (22,216)$ 151,844$ 198,343$ 3,050$ Business, Community, and Consumer Affairs 775,342 2,116 145,016 308,908 - Education 5,858,569 1,395 22,594 644,027 - Health and Rehabilitation 2,896,123 2,718 102,441 1,764,254 - Justice 2,203,272 5,886 240,524 114,740 56 Natural Resources 134,323 1,168 146,495 79,107 - Social Assistance 8,823,596 2,003 912,678 5,330,406 - Transportation 1,828,499 1,869 451,784 138,361 816,215 Interest on Debt 62,021 - - - - Total Governmental Activities 23,089,572 (5,061) 2,173,376 8,578,146 819,321 Business-Type Activities:

Higher Education 6,444,072 2,830 4,305,427 1,835,957 43,183 Unemployment Insurance 531,607 - 607,520 41,644 - Lottery 517,200 647 596,052 813 - Parks and Wildlife 202,866 928 154,071 35,069 (187) College Assist 320,660 114 8 346,633 - Other Business-Type Activities 281,929 542 274,376 189,047 - Total Business-Type Activities 8,298,334 5,061 5,937,454 2,449,163 42,996 Total Primary Government 31,387,906 - 8,110,830 11,027,309 862,317 Component Units:

Colorado Water Resources and Power Development Authority 47,017 33,610 50,899 University of Colorado Foundation 131,258 143,111 Colorado State University Foundation 52,693 101,629 Colorado School of Mines Foundation 28,420 1,900 4,905 University of Northern Colorado Foundation 11,656 5,773 Other Component Units 27,139 21,499 161 2,088 Total Component Units 298,183$ -$ 57,009$ 306,478$ 2,088$

General Revenues:

Taxes:

Sales and Use Taxes

Excise Taxes Individual Income Tax Corporate Income Tax Other Taxes Restricted for Education:

Individual Income Tax Corporate and Fiduciary Income Tax Restricted for Transportation:

Fuel Taxes Other Taxes Unrestricted Investment Earnings (Losses) Other General Revenues

Special Items (See Note 41) (Transfers-Out) / Transfers-In Internal Capital Contributions Permanent Fund Additions Total General Revenues, Special Items, and Transfers Change in Net Position Net Position - Fiscal Year Beginning

Prior Period Adjustment (See Note 29A) Accounting Changes (Note 29B)

Net Position - Fiscal Year Ending

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 47

Governmental Business-Type Component Activities Activities Total Units

(132,374)$ -$ (132,374)$ (323,534) - (323,534)

(5,193,343) - (5,193,343) (1,032,146) - (1,032,146) (1,853,838) - (1,853,838)

90,111 - 90,111 (2,582,515) - (2,582,515)

(424,008) - (424,008) (62,021) - (62,021)

(11,513,668) - (11,513,668)

- (262,335) (262,335)

- 117,557 117,557

- 79,018 79,018

- (14,841) (14,841)

- 25,867 25,867

- 180,952 180,952

- 126,218 126,218 (11,513,668) 126,218 (11,387,450)

- - - 37,492

- - - 11,853

- - - 48,936

- - - (21,615)

- - - (5,883)

- - - (3,391)

- - - 67,392

2,940,839 - 2,940,839 - 290,276 - 290,276 -

6,061,679 - 6,061,679 - 643,761 - 643,761 - 410,277 - 410,277 - 474,623 - 474,623 - 47,977 - 47,977 -

609,678 - 609,678 - 409 - 409 -

15,705 - 15,705 17,082 107,005 - 107,005 8,263

- - - (1,721) (352,733) 352,733 - -

(1,583) 10,183 8,600 - 80 - 80 -

11,247,993 362,916 11,610,909 23,624 (265,675) 489,134 223,459 91,016

10,796,794 4,497,828 15,294,622 2,930,718 58,147 (5,309) 52,838 -

- - - (3,026) 10,589,266$ 4,981,653$ 15,570,919$ 3,018,708$

Primary Government Changes in Net Position

Net (Expense) Revenue and

48 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

BALANCE SHEETGOVERNMENTAL FUNDSJUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHWAY

RESOURCE USERS

GENERAL EXTRACTION TAX

ASSETS:

Cash and Pooled Cash 272,814$ 756,012$ 56,696$ Taxes Receivable, net 1,435,618 - - Other Receivables, net 427,768 23,582 3,271 Due From Other Governments 397,482 2,551 - Due From Other Funds 88,688 18,899 5,033 Due From Component Units 347 - - Inventories 7,522 35,868 8,860 Prepaids, Advances and Deposits 38,089 18,546 1,252 Restricted Assets:

Restricted Cash and Pooled Cash 427,861 109,772 752,176 Restricted Investments - - - Restricted Receivables 56,851 - 453,177 Investments 22,176 - - Other Long-Term Assets - 417,554 12,150 Depreciable Capital Assets and Infrastructure, net - - 30 Land and Nondepreciable Capital Assets - - - Capital Assets Held as Investments - - -

TOTAL ASSETS 3,175,216$ 1,382,784$ 1,292,645$

LIABILITIES:

Tax Refunds Payable 849,726$ - 4,860$ Accounts Payable and Accrued Liabilities 761,054 16,404 203,740 TABOR Refund Liability (Note 8B) 31,358 - - Due To Other Governments 128,481 42,306 34,195 Due To Other Funds 64,177 3,911 634 Unearned Revenue 26,347 9,222 16,834 Compensated Absences Payable 27 1 - Claims and Judgments Payable 248 - - Other Current Liabilities 17,904 - 28 Deposits Held In Custody For Others 2 - -

TOTAL LIABILITIES 1,879,324 71,844 260,291

DEFERRED INFLOW OF RESOURCES: 219,310 - 933

FUND BALANCES:

Nonspendable:

Long-term Portion of Interfund Loans Receivable - - 30 Inventories 7,522 35,868 8,860 Permanent Fund Principal - - - Prepaids 37,977 18,546 1,252 Restricted 497,814 66,000 975,001 Committed 513,986 1,190,526 46,278 Assigned 19,283 - -

TOTAL FUND BALANCES 1,076,582 1,310,940 1,031,421

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES $ 3,175,216 $ 1,382,784 $ 1,292,645

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 49

OTHER

CAPITAL STATE GOVERNMENTAL

PROJECTS EDUCATION FUNDS TOTAL

389,655$ -$ 1,182,074$ 2,657,251$

- - 36,428 1,472,046

164 - 114,358 569,143 1,741 - 38,015 439,789

786 - 11,743 125,149

- - - 347

- - 299 52,549

34 113 5,354 63,388

- 311,476 322,635 1,923,920

- - 732,662 732,662

- - - 510,028

4,290 - 192,903 219,369 49 - 24,294 454,047

- - - 30

- - 69,160 69,160

- - 33,055 33,055

396,719$ 311,589$ 2,762,980$ 9,321,933$

-$ -$ 1,490$ 856,076$ 9,324 7,149 130,779 1,128,450

- - - 31,358

- - 27,742 232,724

1,195 - 35,721 105,638 6 - 59,420 111,829

- - 6 34

- - 140 388

- - 6,879 24,811

- - 88 90

10,525 7,149 262,265 2,491,398

- - 867 221,110

- - 19,141 19,171

- - 298 52,548

- - 1,043,619 1,043,619

32 114 5,354 63,275 5 304,326 237,287 2,080,433

386,157 - 1,194,149 3,331,096

- - - 19,283

386,194 304,440 2,499,848 6,609,425

$ 396,719 $ 311,589 $ 2,762,980 $ 9,321,933

50 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

GOVERNMENTAL FUNDS BALANCE SHEET RECONCILED TOSTATEMENT OF NET POSITIONJUNE 30, 2016

(A) (B) (C) (D) (E) (F)

(DOLLARS IN THOUSANDS) CENTRALIZED OTHER

TOTAL INTERNAL CAPITAL DEBT RISK MEASUREMENT INTERNAL STATEMENT OF

GOVERNMENTAL SERVICE ASSET RELATED MANAGEMENT FOCUS BALANCES NET POSITION

FUNDS FUNDS BALANCES BALANCES LIABILITIES ADJUSTMENTS ELIMINATION TOTALS

ASSETS:

Current Assets:

Cash and Pooled Cash 2,657,251$ 46,165$ -$ -$ -$ -$ -$ 2,703,416$ Taxes Receivable, net 1,472,046 - - - - (220,861) - 1,251,185 Other Receivables, net 569,143 3,512 - - - - - 572,655 Due From Other Governments 439,789 264 - - - - - 440,053 Due From Other Funds 125,149 14,499 - - - - (110,681) 28,967 Due From Component Units 347 - - - - - - 347 Inventories 52,549 712 - - - - - 53,261 Prepaids, Advances and Deposits 63,388 4,080 - - - - - 67,468

Total Current Assets 5,379,662 69,232 - - - (220,861) (110,681) 5,117,352

Noncurrent Assets:

Restricted Cash and Pooled Cash 1,923,920 - - - - - - 1,923,920 Restricted Investments 732,662 - - - - - - 732,662 Restricted Receivables 510,028 - - - - - - 510,028 Investments 219,369 - - - - - - 219,369 Other Long-Term Assets 454,047 - - - - 221,762 - 675,809 Depreciable Capital Assets and Infrastructure, net 30 131,145 9,844,848 - - - - 9,976,023 Land and Nondepreciable Capital Assets 69,160 1,287 1,781,463 - - - - 1,851,910

Depreciable Capital Assets for Investment 33,055 - - - - - - 33,055 Total Noncurrent Assets 3,942,271 132,432 11,626,311 - - 221,762 - 15,922,776

TOTAL ASSETS 9,321,933 201,664 11,626,311 - - 901 (110,681) 21,040,128

DEFERRED OUTFLOW OF RESOURCES: - 55,602 - 763,159 - - - 818,761

LIABILITIES:

Current Liabilities:

Tax Refunds Payable 856,076 - - - - - - 856,076 Accounts Payable and Accrued Liabilities 1,128,450 31,085 - 7,146 - - - 1,166,681 TABOR Refund Liability (Note 8B) 31,358 - - - - - - 31,358 Due To Other Governments 232,724 - - - - - - 232,724 Due To Other Funds 105,638 5,043 - - - - (110,681) - Unearned Revenue 111,829 12,113 - - - (173) - 123,769 Compensated Absences Payable 34 427 - - - 11,061 - 11,522 Claims and Judgments Payable 388 - - - 37,453 8,502 - 46,343 Leases Payable - 20,214 - 8,047 - - - 28,261 Notes, Bonds, and COPs Payable - - - 171,835 - - - 171,835 Other Current Liabilities 24,811 270 - - - 4,444 - 29,525

Total Current Liabilities 2,491,308 69,152 - 187,028 37,453 23,834 (110,681) 2,698,094

Noncurrent Liabilities:

Deposits Held In Custody For Others 90 - - - - - - 90 Accrued Compensated Absences - 9,792 - - - 144,718 - 154,510 Claims and Judgments Payable - - - - 121,146 154,864 - 276,010 Capital Lease Payable - 85,338 - 37,066 - - - 122,404 Notes, Bonds, and COPs Payable - - - 1,174,467 - - - 1,174,467

Net Pension Liability - 364,655 - - - 5,930,349 - 6,295,004 Other Long-Term Liabilities - - - - - 415,669 - 415,669

Total Noncurrent Liabilities 90 459,785 - 1,211,533 121,146 6,645,600 - 8,438,154 TOTAL LIABILITIES 2,491,398 528,937 - 1,398,561 158,599 6,669,434 (110,681) 11,136,248

DEFERRED INFLOW OF RESOURCES: 221,110 6,414 - - - (94,149) - 133,375

NET POSITION:

Net investment in Capital Assets: 102,236 26,880 11,626,311 (424,953) - - - 11,330,474 Restricted for:

Construction and Highway Maintenance 966,411 - - 332 - - - 966,743 Education 309,957 - - - - - - 309,957 Debt Service 68,105 - - - - - - 68,105 Emergencies 217,328 - - - - - - 217,328 Permanent Funds and Endowments:

Expendable 5,801 - - - - - - 5,801 Nonexpendable 950,976 - - - - - - 950,976 Other Purposes 717,185 - - - - - - 717,185

Unrestricted 3,271,426 (304,965) - (210,781) (158,599) (6,574,384) - (3,977,303) TOTAL NET POSITION 6,609,425$ (278,085)$ 11,626,311$ (635,402)$ (158,599)$ (6,574,384)$ -$ 10,589,266$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 51

Differences Between the Balance Sheet – Governmental Funds and Governmental Activities on the Government-Wide Statement of Net Position

(A) Management uses Internal Services Funds to report the charges for and the costs of goods and services sold by state agencies solely within the state. Because the sales are primarily to governmental funds, the assets and liabilities of the Internal Service Funds are included in the governmental activities on the government-wide Statement of Net Position.

Internal Service Funds are reported using proprietary fund-type accounting in the fund-level financial statements. In addition to minor training services provided by the Department of Personnel & Administration, and internal sales within the Department of Transportation and the Department of Public Safety, the State’s Internal Service Funds provide the following goods and services to nearly all state agencies:

Fleet management, Printing and mail services, Information technology and telecommunication services, Building maintenance and management in the capitol complex, Administrative court services, Legal services, and Others including debt collection.

(B) Capital assets used in governmental activities are not current financial resources, and therefore, they are not included in the fund-level financial statements. However, capital assets are economic resources and are reported in the government-wide Statement of Net Position.

(C) Long-term liabilities such as leases, bonds, notes, mortgages, and Certificates of Participation (including accrued interest) are not due and payable in the current period, and therefore, they are not included in the fund-level financial statements. However, from an economic perspective these liabilities reduce net position and are reported in the Statement of Net Position. The portion reported as current in the reconciliation is payable within the following fiscal year. Deferred outflows related to debt refunding losses require a similar adjustment. The largest single portion of the long-term balance is related to Transportation Revenue Anticipation Notes issued by the Department of Transportation.

(D) Risk management liabilities are actuarially determined claims and consist of a current and long-term portion. Generally accepted accounting principles (GAAP) list claims and judgments as an exception to the full accrual basis of accounting that constitutes the modified accrual basis of accounting. The current portion (payable within one year) is excluded from the fund-level statements because it is not payable with expendable available financial resources. In this instance, “payable with expendable available financial resources” means the amounts are not accrued as fund liabilities because they are not budgeted in the current year. The long-term portion of the risk management liability is excluded from the fund-level statements because it is not due and payable in the current period.

(E) Other measurement focus adjustments include:

Interfund balances receivable from or payable to fiduciary funds are reported on the fund-level Balance Sheet –

Governmental Funds as due from/to other funds. On the government-wide Statement of Net Position, these amounts are considered external receivables and payables.

Long-term assets and long-term taxes receivable are not available to pay for current period expenditures;

therefore, the related revenue is reported as a deferred inflow of resources on the fund-level Balance Sheet – Governmental Funds. From an economic perspective, this revenue is earned and the related deferred inflow of resources is removed from the government-wide Statement of Net Position when the revenue is recognized on the government-wide Statement of Activities.

Compensated absences are a GAAP modification of the full accrual basis of accounting similar to claims and judgments discussed above. Therefore, both the current and long-term portions of the liability are shown on the government-wide Statement of Net Position, but they are not reported on the fund-level Balance Sheet – Governmental Funds.

Claims and Judgments Payable and other long-term liabilities including pension liabilities are not reported on the fund-level Balance Sheet – Governmental Funds because the amounts are not due and payable from current financial resources. However, from an economic perspective, these liabilities reduce net position, and they are therefore reported on the government-wide Statement of Net Position.

(F) All interfund payable balances shown on the fund-level Balance Sheet – Governmental Funds are reported in the internal balances line on the government-wide Statement of Net Position along with all governmental-activities interfund receivables.

52 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS

FOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHWAY

RESOURCE USERS

GENERAL EXTRACTION TAX

REVENUES:

Taxes:

Individual and Fiduciary Income 5,993,003$ -$ -$ Corporate Income 606,441 - - Sales and Use 2,893,838 - - Excise 101,874 - 609,680 Other Taxes 280,974 67,072 409 Licenses, Permits, and Fines 20,601 3,533 376,963 Charges for Goods and Services 73,268 6,632 134,185 Rents 223 3 3,318 Investment Income (Loss) 26,524 23,570 11,052 Federal Grants and Contracts 7,892,141 101,526 842,408 Additions to Permanent Funds - - - Unclaimed Property Receipts - - - Other 175,925 4,932 102,032

TOTAL REVENUES 18,064,812 207,268 2,080,047

EXPENDITURES:

Current:

General Government 222,176 - 57,685 Business, Community, and Consumer Affairs 163,743 14,402 - Education 780,238 - - Health and Rehabilitation 1,649,933 453 11,277 Justice 1,404,791 - 123,635 Natural Resources 38,329 51,538 - Social Assistance 7,752,117 - - Transportation - - 1,328,083 Capital Outlay 79,511 2,923 42,837 Intergovernmental:

Cities 66,715 57,168 236,675 Counties 1,297,886 43,656 212,937 School Districts 4,107,412 2,495 - Special Districts 65,186 20,430 46,917 Federal 2,298 1,697 - Other 25,656 2,209 582 Debt Service 58,754 7 -

TOTAL EXPENDITURES 17,714,745 196,978 2,060,628

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 350,067 10,290 19,419

OTHER FINANCING SOURCES (USES):

Transfers-In 3,913,450 4,488 204,713 Transfers-Out (4,434,190) (71,044) (181,703) Face Amount of Bond/COP Issuance - - - Bond/COP Premium/Discount - - - Sale of Capital Assets 10,264 - - Insurance Recoveries 3,455 - 432 Bond/COP Premium Refunding Proceeds 1 - -

TOTAL OTHER FINANCING SOURCES (USES) (507,020) (66,556) 23,442

NET CHANGE IN FUND BALANCES (156,953) (56,266) 42,861

FUND BALANCE, FISCAL YEAR BEGINNING 1,175,388 1,367,206 988,560

Prior Period Adjustment (See Note 29A) 58,147 - -

FUND BALANCE, FISCAL YEAR END 1,076,582$ 1,310,940$ 1,031,421$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 53

OTHER

CAPITAL STATE GOVERNMENTAL

PROJECTS EDUCATION FUNDS TOTAL

-$ 476,703$ -$ 6,469,706$

- 45,897 - 652,338

- - 45,223 2,939,061

- - 188,980 900,534

1,543 - 158,600 508,598 3 - 408,709 809,809

- - 930,320 1,144,405

- - 139,206 142,750

4,023 5,791 67,885 138,845 7,878 - 203,545 9,047,498

- - 80 80

- - 65,110 65,110

175 238 37,632 320,934 13,622 528,629 2,245,290 23,139,668

21,009 - 23,133 324,003 1,583 - 294,148 473,876 2,362 44,742 25,101 852,443

193 - 121,771 1,783,627 5,082 - 207,441 1,740,949

- - 17,131 106,998 7 - 972,766 8,724,890

- - 3,035 1,331,118

57,265 34 8,571 191,141

- - 64,676 425,234

- - 101,670 1,656,149

- 841,125 43,843 4,994,875

- - 12,418 144,951

- - 380 4,375

- 204 49,796 78,447

4,396 - 216,962 280,119 91,897 886,105 2,162,842 23,113,195

(78,275) (357,476) 82,448 26,473

301,537 25,615 465,120 4,914,923 (185,809) (49,957) (336,891) (5,259,594)

11,000 - - 11,000 314 - - 314

- - (3,527) 6,737 747 - - 4,634

- - - 1 127,789 (24,342) 124,702 (321,985) 49,514 (381,818) 207,150 (295,512)

336,680 686,258 2,292,698 6,846,790

- - - 58,147

386,194$ 304,440$ 2,499,848$ 6,609,425$

54 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES RECONCILED TOSTATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2016

(A) (B) (C) (D)

(DOLLARS IN THOUSANDS) OTHER

TOTAL INTERNAL CAPITAL LONG-TERM MEASUREMENT STATEMENT OF

GOVERNMENTAL SERVICE RELATED DEBT FOCUS ACTIVITIES

FUNDS FUNDS ITEMS TRANSACTIONS ADJUSTMENTS TOTALS

REVENUES:

Taxes:

Individual and Fiduciary Income 6,469,706$ -$ -$ -$ 11,876$ 6,481,582$ Corporate Income 652,338 - - - 37,319 689,657 Sales and Use 2,939,061 - - - 1,779 2,940,840 Excise 900,534 - - - (578) 899,956 Other Taxes 508,598 - - - (10,342) 498,256 Licenses, Permits, and Fines 809,809 - - - 299 810,108 Charges for Goods and Services 1,144,405 - - - 9 1,144,414 Rents 142,750 - - - - 142,750 Investment Income (Loss) 138,845 220 - - (105) 138,960 Federal Grants and Contracts 9,047,498 - - - - 9,047,498 Additions to Permanent Funds 80 - - - - 80 Unclaimed Property Receipts 65,110 - - - - 65,110 Other 320,934 - - - (4,764) 316,170

TOTAL REVENUES 23,139,668 220 - - 35,493 23,175,381

EXPENDITURES:

Current:

General Government 324,003 2,080 42,352 - 1,701 370,136 Business, Community, and Consumer Affairs 473,876 6,322 16,737 - (26,096) 470,839 Education 852,443 142 42,959 - (106) 895,438 Health and Rehabilitation 1,783,627 1,333 56,027 - 2,606 1,843,593 Justice 1,740,949 1,666 224,730 - 3,039 1,970,384 Natural Resources 106,998 1,531 8,141 - 693 117,363 Social Assistance 8,724,890 9,078 15,133 - (2,864) 8,746,237 Transportation 1,331,118 1,184 419,784 - (138) 1,751,948 Capital Outlay 191,141 - (627,770) - - (436,629) Intergovernmental:

Cities 425,234 - - - - 425,234 Counties 1,656,149 - 60 - - 1,656,209 School Districts 4,994,875 - - - - 4,994,875 Special Districts 144,951 - - - - 144,951 Federal 4,375 - - - - 4,375 Other 78,447 - - - - 78,447 Debt Service 280,119 2,612 - (211,516) - 71,215

TOTAL EXPENDITURES 23,113,195 25,948 198,153 (211,516) (21,165) 23,104,615

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 26,473 (25,728) (198,153) 211,516 56,658 70,766

OTHER FINANCING SOURCES (USES):

Transfers-In 4,914,923 4,502 - - - 4,919,425 Transfers-Out (5,259,594) (7,007) - - - (5,266,601) Face Amount of Bond/COP Issuance 11,000 - - (11,000) - - Bond/COP Premium/Discount 314 - - 1,069 - 1,383 Sale of Capital Assets 6,737 - (2,279) - - 4,458 Insurance Recoveries 4,634 - - - - 4,634 Bond/COP Premium Refunding Proceeds 1 - - - - 1 TOTAL OTHER FINANCING SOURCES (USES) (321,985) (2,505) (2,279) (9,931) - (336,700) Internal Service Fund Charges to BTAs - 259 - - - 259

NET CHANGE FOR THE YEAR (295,512) (27,974) (200,432) 201,585 56,658 (265,675)

Prior Period Adjustment (See Note 29A) 58,147 - - - - 58,147

TOTAL CHANGE FOR THE CURRENT YEAR

WITH PRIOR PERIOD ADJUSTMENT

$ (237,365) $ (27,974) $ (200,432) $ 201,585 $ 56,658 $ (207,528)

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 55

Differences Between the Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds and Governmental Activities on the Government-Wide Statement of Activities

(A) Management uses Internal Services Funds to report charges for and the costs of goods and services sold by state agencies solely within the state. Internal Service Funds are intended to operate on the cost reimbursement basis and should break even each period. If an Internal Service Fund makes a profit, the other funds of the State have been overcharged. If an Internal Service Fund has an operating loss, the other funds of the State have been undercharged. In order to show the true cost of services purchased from Internal Service Funds, an adjustment is made that allocates the net revenue/expense of each Internal Service Fund to the programs that purchased the service. Investment income, debt service, and transfers of the Internal Service Fund are not allocated. In addition to minor training services provided by the Department of Personnel & Administration, and internal sales within the Department of Transportation and the Department of Public Safety, the State’s Internal Service Funds provide the following goods and services to nearly all state agencies:

Fleet management, Printing and mail services, Information technology services and telecommunication services, Building maintenance and management in the capitol complex, Administrative court services, Legal services, and Others including debt collection.

(B) The following adjustments relate to capital assets:

Capital assets, received as donations, are not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds because they are not current financial resources. However, such donations increase net position and are reported on both the government-wide Statement of Net Position and Statement of Activities.

Depreciation is not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, but it is reported for the economic perspective on which the government-wide Statement of Activities is presented.

Expenditures reported for capital outlay on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds are generally reported as a conversion of cash to a capital asset on the government-wide Statement of Net Position. They are not reported as expenses on the government-wide Statement of Activities.

On the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds all cash received on disposal of capital assets is reported as a gain on sale of capital assets. On the government-wide Statement of Activities the reported gain or loss on sale is based on the carrying value of the asset as well as the cash received.

(C) The following adjustments relate to debt issuance and debt service including leases:

Payments on principal and debt refunding payments are reported as expenditures and other financing uses, respectively, on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. These payments are reported as reductions of lease, bond, and other debt liability balances on the government-wide Statement of Net Position and are not reported on the government-wide Statement of Activities.

Amortization of debt premium/discount and gain/loss on refunding are not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds, but are reported on the government-wide Statement of Activities.

Lease proceeds, issuance of debt, and debt refunding proceeds are all reported as other financing sources on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. From an economic perspective lease proceeds, debt issuances, and debt refunding proceeds are reported as liabilities on the government-wide Statement of Net Position and are not reported on the government-wide Statement of Activities.

(D) Other measurement focus adjustments include:

Long-term taxes receivable and certain other long-term assets are offset by deferred inflows or unearned revenue and are not part of fund balance on the fund-level Balance Sheet – Governmental Funds; however, from a full accrual perspective, changes in the fund-level unearned revenue balances result in adjustments to revenue that are recognized and reported on the government-wide Statement of Activities. Compensated absences accruals, pension liabilities, and claims and judgments are not normally expected to be liquidated from expendable available financial resources; and therefore, they are not reported on the fund-level Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds. However, from a full accrual perspective, these are expenses that are reported on the government-wide Statement of Activities.

56 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF NET POSITIONPROPRIETARY FUNDSJUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

ASSETS:

Current Assets:

Cash and Pooled Cash 1,236,180$ 757,411$ Investments 391,521 - Premiums Receivable, net - 123,638 Student and Other Receivables, net 575,921 4,100 Due From Other Governments 64,304 5,133 Due From Other Funds 15,807 - Due From Component Units 18,188 - Inventories 38,274 - Prepaids, Advances and Deposits 17,925 - Total Current Assets 2,358,120 890,282

Noncurrent Assets:

Restricted Cash and Pooled Cash 385,552 - Restricted Investments 167,540 - Restricted Receivables - - Investments 1,908,039 - Other Long-Term Assets 127,593 - Depreciable Capital Assets and Infrastructure, net 6,051,702 9,897 Land and Nondepreciable Capital Assets 1,064,819 - Total Noncurrent Assets 9,705,245 9,897

TOTAL ASSETS 12,063,365 900,179

DEFERRED OUTFLOW OF RESOURCES: 586,713 5,246

LIABILITIES:

Current Liabilities:

Accounts Payable and Accrued Liabilities 700,365 3,905 Due To Other Governments - 1 Due To Other Funds 2,798 614 Due To Component Units 645 - Unearned Revenue 255,408 908 Compensated Absences Payable 21,604 - Leases Payable 8,681 - Notes, Bonds, and COPs Payable 141,174 124,965 Other Current Liabilities 87,260 13,228 Total Current Liabilities 1,217,935 143,621

Noncurrent Liabilities:

Due to Other Funds - - Deposits Held In Custody For Others - - Accrued Compensated Absences 281,135 - Claims and Judgments Payable 39,657 - Capital Lease Payable 44,182 - Derivative Instrument Liability 13,222 - Notes, Bonds, and COPs Payable 4,127,739 399 Due to Component Units 1,631 - Net Pension Liability 3,496,484 11,026 Other Postemployment Benefits 289,133 - Other Long-Term Liabilities 28,534 - Total Noncurrent Liabilities 8,321,717 11,425

TOTAL LIABILITIES 9,539,652 155,046

DEFERRED INFLOW OF RESOURCES: 88,480 433

NET POSITION:

Net investment in Capital Assets: 3,773,792 9,897 Restricted for:

Education 462,636 - Unemployment Insurance - 740,049 Debt Service 67,358 - Emergencies - - Permanent Funds and Endowments:

Expendable 157,611 - Nonexpendable 83,274 - Other Purposes - - Unrestricted (1,522,725) -

TOTAL NET POSITION 3,021,946$ 749,946$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 57

BUSINESS-TYPE ACTIVITIES GOVERNMENTAL

ENTERPRISE FUNDS ACTIVITIES

INTERNAL

STATE OTHER SERVICE

LOTTERY ENTERPRISES TOTAL FUNDS

50,088$ 481,774$ 2,525,453$ 46,165$

- 667 392,188 -

- - 123,638 -

21,081 39,562 640,664 3,512

- 25,423 94,860 264

- 4,487 20,294 14,499

- - 18,188 -

1,472 15,002 54,748 712 4,613 6,218 28,756 4,080

77,254 573,133 3,898,789 69,232

- 72,374 457,926 -

- - 167,540 -

- 40,009 40,009 -

- 33,001 1,941,040 -

- 1,832 129,425 -

438 988,189 7,050,226 131,145

- 587,622 1,652,441 1,287

438 1,723,027 11,438,607 132,432 77,692 2,296,160 15,337,396 201,664

2,866 55,028 649,853 55,602

3,537 54,546 762,353 31,085 18 38,596 38,615 -

31,915 1,807 37,134 5,043

- - 645 -

- 49,906 306,222 12,113

- 1,157 22,761 427

- 451 9,132 20,214

- 995 267,134 -

38,540 737 139,765 270 74,010 148,195 1,583,761 69,152

- 21,022 21,022 -

- 20 20 -

748 11,482 293,365 9,792

- - 39,657 -

- 3,812 47,994 85,338

- - 13,222 -

- 351,953 4,480,091 -

- - 1,631 -

25,257 424,306 3,957,073 364,655

- - 289,133 -

35 - 28,569 - 26,040 812,595 9,171,777 459,785

100,050 960,790 10,755,538 528,937

1,066 160,079 250,058 6,414

439 1,267,217 5,051,345 26,880

- - 462,636 -

- - 740,049 -

- 18,259 85,617 -

- 34,000 34,000 -

- - 157,611 -

- - 83,274 -

- 101,209 101,209 -

(20,997) (190,366) (1,734,088) (304,965) (20,558)$ 1,230,319$ 4,981,653$ (278,085)$

58 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITIONPROPRIETARY FUNDSFOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

OPERATING REVENUES:

Unemployment Insurance Premiums -$ 603,707$ License and Permits - 102 Tuition and Fees 2,765,443 - Scholarship Allowance for Tuition and Fees (613,735) - Sales of Goods and Services 2,026,876 - Scholarship Allowance for Sales of Goods & Services (22,981) - Investment Income (Loss) 1,532 - Rental Income 14,688 - Gifts and Donations 49,788 - Federal Grants and Contracts 1,014,391 24,148 Intergovernmental Revenue 8,121 - Other 359,917 -

TOTAL OPERATING REVENUES 5,604,040 627,957

OPERATING EXPENSES:

Salaries and Fringe Benefits 4,303,860 12,187 Operating and Travel 1,384,884 513,842 Cost of Goods Sold 140,258 - Depreciation and Amortization 402,691 1,913 Intergovernmental Distributions 34,008 2 Debt Service - - Prizes and Awards 282 -

TOTAL OPERATING EXPENSES 6,265,983 527,944

OPERATING INCOME (LOSS) (661,943) 100,013

NONOPERATING REVENUES AND (EXPENSES):

Taxes - - Fines and Settlements 12 3,709 Investment Income (Loss) 48,041 17,497 Rental Income 12,235 1 Gifts and Donations 207,762 - Intergovernmental Distributions (25,561) - Federal Grants and Contracts 265,969 - Gain/(Loss) on Sale or Impairment of Capital Assets (5,496) - Insurance Recoveries from Prior Year Impairments 261 - Debt Service (143,788) (3,662) Other Expenses (3,587) - Other Revenues 3,713 -

TOTAL NONOPERATING REVENUES (EXPENSES) 359,561 17,545

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (302,382) 117,558

CONTRIBUTIONS, TRANSFERS, AND OTHER ITEMS:

Capital Contributions 43,738 10,130 Additions to Permanent Endowments 20 - Transfers-In 418,916 - Transfers-Out (7,851) -

TOTAL CONTRIBUTIONS AND TRANSFERS 454,823 10,130

CHANGE IN NET POSITION 152,441 127,688

NET POSITION - FISCAL YEAR BEGINNING 2,874,814 622,258

Prior Period Adjustments (See Note 29A) (5,309) -

NET POSITION - FISCAL YEAR ENDING 3,021,946$ 749,946$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 59

INTERNAL

STATE OTHER SERVICE

LOTTERY ENTERPRISES TOTAL FUNDS

-$ -$ 603,707$ -$ 64 120,137 120,303 -

- 1,686 2,767,129 -

- - (613,735) -

594,414 212,922 2,834,212 348,485

- - (22,981) -

- 10,332 11,864 -

- 2,024 16,712 15,372

- - 49,788 -

- 409,651 1,448,190 -

- 174,897 183,018 -

1,576 8,849 370,342 204 596,054 940,498 7,768,549 364,061

10,365 231,440 4,557,852 220,609 58,897 442,304 2,399,927 132,032 13,251 41,642 195,151 7,459

443 26,999 432,046 29,167

- 11,403 45,413 1,592

- 12,223 12,223 -

370,514 1,064 371,860 13 453,470 767,075 8,014,472 390,872 142,584 173,423 (245,923) (26,811)

- 39,401 39,401 -

- 380 4,101 -

813 6,463 72,814 220

- 11,129 23,365 -

- 1,327 209,089 -

(63,715) - (89,276) -

- - 265,969 -

(4) (28,009) (33,509) 1,824

- (187) 74 -

- (10,400) (157,850) (2,610)

- (309) (3,896) -

- 6 3,719 4

(62,906) 19,801 334,001 (562) 79,678 193,224 88,078 (27,373)

- 880 54,748 1,908

- - 20 -

- 45,969 464,885 4,502

(80,290) (30,456) (118,597) (7,007) (80,290) 16,393 401,056 (597)

(612) 209,617 489,134 (27,970) (19,946) 1,020,702 4,497,828 (250,115)

- - (5,309) - (20,558)$ 1,230,319$ 4,981,653$ (278,085)$

60 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF CASH FLOWSPROPRIETARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash Received from:

Tuition, Fees, and Student Loans 2,179,595$ -$ Fees for Service 1,774,156 - Receipts for Interfund Services - - Sales of Products 39,836 - Gifts, Grants, and Contracts 1,579,948 22,294 Loan and Note Repayments 448,725 - Unemployment Insurance Premiums - 625,922 Income from Property 26,923 - Other Sources 135,107 1,103 Cash Payments to or for:

Employees (4,224,683) (11,918) Suppliers (1,266,106) (1,339) Payments for Interfund Services - - Sales Commissions and Lottery Prizes - - Unemployment Benefits - (504,848) Scholarships (100,815) - Others for Student Loans and Loan Losses (461,674) - Other Governments (34,008) - Other (94,369) -

NET CASH PROVIDED BY OPERATING ACTIVITIES 2,635 131,214

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers-In 2,476,082 - Transfers-Out (2,221,176) - Receipt of Deposits Held in Custody 502,191 - Release of Deposits Held in Custody (503,543) - Gifts and Grants for Other Than Capital Purposes 207,782 - Intergovernmental Distributions (25,561) - NonCapital Debt Proceeds 651 - NonCapital Debt Service Payments (109,192) (125,364)

NET CASH FROM NONCAPITAL FINANCING ACTIVITIES 327,234 (125,364)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of Capital Assets (592,667) (26) Capital Contributions 11,184 - Capital Gifts, Grants, and Contracts 15,388 - Proceeds from Sale of Capital Assets 5,414 3,526 Capital Debt Proceeds 535,031 124,970 Capital Debt Service Payments (389,803) (128,877) Capital Lease Payments (11,576) -

NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (427,029) (407)

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 61

STATE OTHER INTERNAL

LOTTERY ENTERPRISE TOTALS SERVICE FUNDS

-$ 1,649$ 2,181,244$ -$

- 245,516 2,019,672 9,482

- 12,609 12,609 322,443

594,412 60,234 694,482 1,592

- 423,305 2,025,547 70

- 420 449,145 -

- - 625,922 -

- 13,106 40,029 15,407

1,640 106,434 244,284 12,235 (10,424) (218,780) (4,465,805) (215,469) (27,546) (212,259) (1,507,250) (106,120)

(188) (6,052) (6,240) (38,086) (403,063) (7,168) (410,231) (639)

- - (504,848) -

- - (100,815) -

- (280,887) (742,561) -

- (11,612) (45,620) (1,592)

(438) (37,275) (132,082) (134) 154,393 89,240 377,482 (811)

434 54,725 2,531,241 7,663 (80,724) (38,384) (2,340,284) (8,223)

- 760 502,951 267

- (727) (504,270) (70)

- 1,027 208,809 -

(63,715) - (89,276) -

- 23,660 24,311 -

- (515) (235,071) -

(144,005) 40,546 98,411 (363)

40 (405,371) (998,024) (20,962)

- - 11,184 -

- - 15,388 -

391 140,512 149,843 52,216

- 451 660,452 176

- (14,747) (533,427) (84)

- (230) (11,806) (29,752)

431 (279,385) (706,390) 1,594

(Continued)

62 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF CASH FLOWSPROPRIETARY FUNDS

FOR THE YEAR ENDED JUNE 30, 2016 (Continued)

BUSINESS-TYPE ACTIVITIES

(DOLLARS IN THOUSANDS) HIGHER

EDUCATION UNEMPLOYMENT

INSTITUTIONS INSURANCE

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and Dividends on Investments 118,779 17,495 Proceeds from Sale/Maturity of Investments 2,386,561 - Purchases of Investments (2,310,376) - Increase(Decrease) from Unrealized Gain(Loss) on Investments (72,406) 2

NET CASH FROM INVESTING ACTIVITIES 122,558 17,497

NET INCREASE (DECREASE) IN CASH AND POOLED CASH 25,398 22,940

CASH AND POOLED CASH , FISCAL YEAR BEGINNING 1,601,643 734,471

Prior Period Adjustment (See Note 29) (5,309) -

CASH AND POOLED CASH, FISCAL YEAR END 1,621,732$ 757,411$

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED BY OPERATING ACTIVITIES

Operating Income (Loss) (661,943)$ 100,013$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities:

Depreciation 402,691 1,913 Investment/Rental Income and Other Revenue in Operating Income - - Net Periodic Pension Cost - - Rents, Fines, Donations, and Grants and Contracts in NonOperating 283,296 3,710 (Gain)/Loss on Disposal of Capital and Other Assets 371 - Compensated Absences 26,461 - Insurance Premiums and State Subsidy - - Claims and General Insurance Expenses Paid - - Interest and Other Expense in Operating Income 10,618 10 Provision for Bad Debts - - Net Changes in Assets, Deferred Outflows, Liabilities, and Deferred Inflows Related to Operating Activities:

(Increase) Decrease in Operating Receivables (178,737) 18,793 (Increase) Decrease in Inventories 1,640 - (Increase) Decrease in Other Operating Assets and Deferred Outflows 800 - Increase (Decrease) in Accounts Payable 55,264 2,014 Increase (Decrease) in Other Operating Liabilities and Deferred Inflows 62,174 4,761

NET CASH PROVIDED BY OPERATING ACTIVITIES 2,635$ 131,214$

SUPPLEMENTARY INFORMATION - NONCASH TRANSACTIONS:

Capital Assets Funded by the Capital Projects Fund 815 10,130 Capital Assets Acquired by Grants or Donations and Payable Increases 90,470 - Unrealized Gain/Loss on Investments and Interest Receivable Accruals 22,213 - Loss on Disposal of Capital and Other Assets 4,112 - Disposal of Capital Assets 12,746 - Amortization of Debt Valuation Accounts and Interest Payable Accruals 39,975 239 Assumption of Capital Lease Obligation or Mortgage 12,789 - Financed Debt Issuance Costs 1,015 - Fair Value Change in Derivative Instrument 3,708 -

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 63

STATE OTHER INTERNAL

LOTTERY ENTERPRISE TOTALS SERVICE FUNDS

605 14,665 151,544 113

- 142,282 2,528,843 -

- (35,211) (2,345,587) -

208 2,155 (70,041) 107 813 123,891 264,759 220

11,632 (25,708) 34,262 640

38,456 579,856 2,954,426 45,525

- - (5,309) - 50,088$ 554,148$ 2,983,379$ 46,165$

142,584$ 173,423 (245,923)$ (26,811)$

443 26,999 432,046 29,167

- (10,397) (10,397) -

- 51,088 338,094 4

- 31 402 52

(9) 554 27,006 143

- 3,890 14,518 3,063

(671) (17,187) (177,802) (10,294)

(347) 1,909 3,202 152

44 (909) (65) (3,636)

(174) (42,866) 14,238 (4,187)

12,523 (97,295) (17,837) 11,536 154,393$ 89,240$ 377,482$ (811)$

- 880 11,825 1,870

- - 90,470 -

- - 22,213 - 4 28,102 32,218 9

- - 12,746 -

- 2,461 42,675 172

- - 12,789 20,230

- - 1,015 -

- - 3,708 -

64 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF FIDUCIARY NET POSITIONFIDUCIARY FUNDSJUNE 30, 2016

(DOLLARS IN THOUSANDS) PENSION AND PRIVATE

BENEFIT PURPOSE

TRUST TRUST AGENCY

ASSETS:

Current Assets:

Cash and Pooled Cash 84,486$ 199,443$ 495,848$ Investments - 633 - Taxes Receivable, net - - 167,950 Other Receivables, net 2,174 18,369 333 Intrafund Receivables 8 - - Due From Other Funds 1,008 - 7,887 Inventories - - 5 Noncurrent Assets:

Investments:

Government Securities - 14,221 - Repurchase Agreements - 686 - Mutual Funds - 5,751,132 - Other Investments - 762,241 - Other Long-Term Assets - - 12,130

TOTAL ASSETS 87,676 6,746,725 684,153$

LIABILITIES:

Current Liabilities:

Tax Refunds Payable - - 8,649 Accounts Payable and Accrued Liabilities 17,166 15,357 1,001 Due To Other Governments - - 293,873 Unearned Revenue - 7,816 - Claims and Judgments Payable 15,766 - 107 Other Current Liabilities 516 - 322,690 Noncurrent Liabilities:

Deposits Held In Custody For Others - 3,713 57,120 Accrued Compensated Absences 38 - - Other Long-Term Liabilities - - 713

TOTAL LIABILITIES 33,486 26,886 684,153$

NET POSITION:

Held in Trust for:

Pension/Benefit Plan Participants 54,190 - Individuals, Organizations, and Other Entities - 6,719,839

TOTAL NET POSITION 54,190$ 6,719,839$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 65

STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFIDUCIARY FUNDSFOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) PENSION AND PRIVATE

BENEFIT PURPOSE

TRUST TRUST

ADDITIONS:

Additions By Participants -$ 1,129,100$ Member Contributions 89,076 - Employer Contributions 289,096 - Investment Income/(Loss) 346 29,606 Unclaimed Property Receipts - 32,598 Other Additions 3,623 3,234 Transfers-In 8,173 -

TOTAL ADDITIONS 390,314 1,194,538

DEDUCTIONS:

Distributions to Participants - 285,095 Health Insurance Premiums Paid 156,849 - Health Insurance Claims Paid 170,156 - Other Benefits Plan Expense 26,175 - Payments in Accordance with Trust Agreements - 660,225 Other Deductions 21,964 - Transfers-Out 7,199 86

TOTAL DEDUCTIONS 382,343 945,406

CHANGE IN NET POSITION 7,971 249,132

NET POSITION - FISCAL YEAR BEGINNING 46,219 6,482,550

Prior Period Adjustments (Note 29) - (11,843)

NET POSITION - FISCAL YEAR ENDING 54,190$ 6,719,839$

66 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF NET POSITION

COMPONENT UNITSJUNE 30, 2016

(DOLLARS IN THOUSANDS) COLORADO

WATER RESOURCES UNIVERSITY

AND POWER OF

DEVELOPMENT COLORADO

AUTHORITY FOUNDATION

ASSETS:

Current Assets:

Cash and Pooled Cash 211,598$ 34,693$ Investments - - Contributions Receivable, net - 33,943 Other Receivables, net 79,422 24 Due From Other Governments 3,081 - Prepaids, Advances and Deposits - 554 Total Current Assets 294,101 69,214 Noncurrent Assets:

Restricted Cash and Pooled Cash 109,778 - Restricted Investments 158,737 - Restricted Receivables 2,532 - Investments - 1,496,421 Contributions Receivable, net - 77,591 Other Long-Term Assets 898,355 - Depreciable Capital Assets and Infrastructure, net 21 434 Land and Nondepreciable Capital Assets - - Total Noncurrent Assets 1,169,423 1,574,446

TOTAL ASSETS 1,463,524 1,643,660

DEFERRED OUTFLOW OF RESOURCES: 3,715 -

LIABILITIES:

Current Liabilities:

Accounts Payable and Accrued Liabilities 13,192 9,290 Due To Other Governments 200 - Notes, Bonds, and COPs Payable 46,395 - Other Current Liabilities 152,142 15,845 Total Current Liabilities 211,929 25,135 Noncurrent Liabilities:

Deposits Held In Custody For Others - 331,283 Notes, Bonds, and COPs Payable 548,350 - Net Pension Liability 3,333 - Other Long-Term Liabilities 30,946 15,314 Total Noncurrent Liabilities 582,629 346,597

TOTAL LIABILITIES 794,558 371,732

DEFERRED INFLOW OF RESOURCES: 405 -

NET POSITION:

Net investment in Capital Assets: 21 434 Restricted for:

Expendable - 721,412 Nonexpendable - 495,077 Other Purposes 628,589 - Unrestricted 43,666 55,005

TOTAL NET POSITION 672,276$ 1,271,928$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 67

COLORADO COLORADO UNIVERSITY

STATE SCHOOL OF OF NORTHERN OTHER

UNIVERSITY MINES COLORADO COMPONENT

FOUNDATION FOUNDATION FOUNDATION UNITS TOTAL

1,023$ 11,503$ 2,128$ 17,323$ 278,268$

- - - 7,795 7,795

13,211 6,871 2,656 - 56,681

- 1,631 135 645 81,857

- - - 330 3,411

365 - - 4,615 5,534 14,599 20,005 4,919 30,708 433,546

- 59 - 13,889 123,726

- - - - 158,737

- - - - 2,532

425,163 282,718 104,368 57,687 2,366,357 31,416 25,591 4,453 - 139,051

644 284 92 1,225 900,600 21 - 965 200,451 201,892

- - - 62,792 62,792 457,244 308,652 109,878 336,044 3,955,687 471,843 328,657 114,797 366,752 4,389,233

- - - - 3,715

1,436 3,287 670 2,181 30,056

- - - - 200

- - - 6,755 53,150

- - - 1,352 169,339

1,436 3,287 670 10,288 252,745

13,009 31,923 603 - 376,818

- - - 116,446 664,796

- - - - 3,333

807 9,803 131 19,142 76,143 13,816 41,726 734 135,588 1,121,090 15,252 45,013 1,404 145,876 1,373,835

- - - - 405

21 - 965 215,399 216,840 254,394 107,987 23,984 - 1,107,777 181,194 155,903 78,830 - 911,004

- - - 5,129 633,718 20,982 19,754 9,614 348 149,369

456,591$ 283,644$ 113,393$ 220,876$ 3,018,708$

68 COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT

STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITIONCOMPONENT UNITSFOR THE YEAR ENDED JUNE 30, 2016

(DOLLARS IN THOUSANDS) COLORADO

WATER RESOURCES UNIVERSITY

AND POWER OF

DEVELOPMENT COLORADO

AUTHORITY FOUNDATION

OPERATING REVENUES:

Fees 33,586$ -$ Sales of Goods and Services - - Investment Income (Loss) 7,261 - Rental Income - - Gifts and Donations - 177,591 Federal Grants and Contracts 6,688 - Other 24 1,969

TOTAL OPERATING REVENUES 47,559 179,560

OPERATING EXPENSES:

Salaries and Fringe Benefits 1,478 - Operating and Travel 14,639 24,940 Depreciation and Amortization 12 91 Debt Service 30,888 - Foundation Program Distributions - 106,214

TOTAL OPERATING EXPENSES 47,017 131,245

OPERATING INCOME (LOSS) 542 48,315

NONOPERATING REVENUES AND (EXPENSES):

Investment Income (Loss) - (21,084) Gifts and Donations - - Federal Grants and Contracts - - Debt Service - - Other Expenses - (13) Other Revenues - -

TOTAL NONOPERATING REVENUES (EXPENSES) - (21,097)

INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 542 27,218

CONTRIBUTIONS, TRANSFERS, AND OTHER ITEMS:

Capital Contributions 44,211 - Special Items (See Note 41) - -

TOTAL CONTRIBUTIONS AND TRANSFERS 44,211 -

CHANGE IN NET POSITION 44,753 27,218

NET POSITION - FISCAL YEAR BEGINNING 630,549 1,244,710

Accounting Changes (See Note 29B) (3,026) -

NET POSITION - FISCAL YEAR ENDING 672,276$ 1,271,928$

COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT 69

COLORADO COLORADO UNIVERSITY

STATE SCHOOL OF OF NORTHERN OTHER

UNIVERSITY MINES COLORADO COMPONENT

FOUNDATION FOUNDATION FOUNDATION UNITS TOTAL

-$ 1,900$ -$ -$ 35,486$

- - - 9,853 9,853

- - - (1,648) 5,613

- - - 1,465 1,465

97,395 14,592 7,049 44 296,671

- - - - 6,688

12,521 716 437 18,474 34,141 109,916 17,208 7,486 28,188 389,917

- - - - 1,478 5,089 6,774 974 11,896 64,312

9 3 50 8,163 8,328

- - - - 30,888

47,595 21,643 10,632 - 186,084 52,693 28,420 11,656 20,059 291,090 57,223 (11,212) (4,170) 8,129 98,827

(9,409) (12,914) (2,351) 408 (45,350)

- - - 53 53

- - - 991 991

- - - (7,073) (7,073)

- - - (6) (19)

- - - 1,