State of Alabama

Comprehensive Annual Financial Report

For the Fiscal Year Ended September 30, 2010

Front cover: A female monarch butterfly, danaus plexippus. The monarch butterfly was designated as the official insect of the State of Alabama by the state legislature in 1989.

Comments concerning this report should be addressed to: Office of the State Comptroller Financial Reporting Section RSA Union, Suite 206 Montgomery, AL 36130-2602

STATE OF ALABAMA

COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended September 30, 2010

Bob Riley
Governor

Kay Ivey
State Treasurer

Bill Newton
Acting Director of Finance

Samantha Shaw
State Auditor

Prepared by the Department of Finance, Office of the State Comptroller Thomas L. White, Jr. • State Comptroller

STATE OF ALABAMA TABLE OF CONTENTS (Page 1 of 3)

Page

INTRODUCTORY SECTION
Letter of Transmittal ...................................................................... 2 Certificate of Achievement for Excellence in Financial Reporting for the September 30, 2009 CAFR................... 8 Principal State Officials ..................................................................... 9 Organization Chart.........................................................................10

FINANCIAL SECTION
Independent Auditor's Report..................................................................12 Management's Discussion and Analysis ...........................................................16

BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets ...................................................................30 Statement of Activities ....................................................................32 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet – Governmental Funds .........................................................34 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets .....................36 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................38 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ..............................................40 Proprietary Fund Financial Statements Statement of Net Assets – Proprietary Funds ....................................................42 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds ...........................44 Statement of Cash Flows – Proprietary Funds....................................................46 Fiduciary Fund Financial Statements Statement of Fiduciary Net Assets – Fiduciary Funds...............................................50 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds .......................................51 Component Unit Financial Statements Statement of Net Assets – Component Units.....................................................52 Statement of Activities – Component Units .....................................................54 Notes to the Financial Statements ..............................................................56

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STATE OF ALABAMA TABLE OF CONTENTS
(Page 2 of 3)

Page REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule – All Budgeted Funds............................................. 136 Budgetary Comparison Schedule – Budget-to-GAAP Reconciliation .................................... 138 Notes on Budgetary Accounting and Reporting .................................................. 140 State Insurance Fund Ten Year Loss Development Information ....................................... 143 Schedule of Funding Progress for Employees’ Retirement System ...................................... 144 Schedule of Funding Progress for Retired State Employees’ Health Care Trust ............................. 145 Notes to Schedule of Funding Progress for Retired State Employees’ Health Care Trust........................ 146 Information about Infrastructure Assets Reported Using the Modified Approach ............................ 147 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds by Fund Type ................................ 152 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds by Fund Type .......................................... 153 Combining Balance Sheet – Nonmajor Special Revenue Funds ........................................ 156 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds .......................................................... 158 Combining Balance Sheet – Other Nonmajor Special Revenue Funds.................................... 160 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other Nonmajor Special Revenue Funds.......................................................... 162 Combining Balance Sheet – Nonmajor Debt Service Funds .......................................... 166 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Debt Service Funds...... 168 Combining Balance Sheet – Nonmajor Capital Projects Funds ........................................ 172 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Capital Projects Funds ... 174 Combining Balance Sheet – Nonmajor Permanent Funds ............................................ 178 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Permanent Funds ....... 179 Detail Schedule of Budget and Actual Expenditures – All Agencies and Appropriations, Non-GAAP, Budget Basis ........................................ 182 Schedule of Revenues by Principal Sources – Governmental Funds in State Treasury – Cash Basis, Transfers Excluded ................................ 220 Schedule of Revenues by Principal Sources and Distributions of Revenues – Governmental Funds in State Treasury – Cash Basis, Transfers Excluded ................................ 222 Proprietary Funds Combining Statement of Net Assets – Nonmajor Enterprise Funds...................................... 226 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Nonmajor Enterprise Funds............. 228 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ..................................... 230 Combining Statement of Net Assets – Internal Service Funds ......................................... 236 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Internal Service Funds ................ 238 Combining Statement of Cash Flows – Internal Service Funds ........................................ 240 Fiduciary Funds Combining Statement of Plan Net Assets – Pension (and Other Employee Benefit) Trust Funds .................. 246 Combining Statement of Changes in Plan Net Assets – Pension (and Other Employee Benefit) Trust Funds........... 248 Combining Statement of Fiduciary Net Assets – Private-Purpose Trust Funds .............................. 252 Combining Statement of Changes in Fiduciary Net Assets – Private-Purpose Trust Funds ...................... 253 Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ................................ 256 Combining Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds......................... 258

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STATE OF ALABAMA TABLE OF CONTENTS
(Page 3 of 3)

Page Component Units Combining Statement of Net Assets – Nonmajor Component Units ..................................... 262 Combining Statement of Activities – Nonmajor Component Units ...................................... 264 Combining Statement of Net Assets – Other Nonmajor Component Units ................................. 266 Combining Statement of Activities – Other Nonmajor Component Units .................................. 268 Supplemental Statements and Schedules Schedule of Federal Revenues by Agency – All Funds and Component Units Except Higher Education ............. 272

STATISTICAL SECTION
Financial Trends – Net Assets by Component ................................................... 274 Changes in Net Assets ................................................................ 276 Fund Balances of Governmental Funds ...................................................... 280 Changes in Fund Balances of Governmental Funds .............................................. 282 Revenue Capacity – Major Revenue Base: Personal Income by Industry – Last Ten Years...................... 284 Revenue Rates: Individual and Corporate Income Tax Rates – Last Ten Years ............................ 286 Principal Revenue Payers: Individual Income Tax Filers and Liability by Taxable Income – Last Four Years ........ 287 Principal Revenue Payers: Corporate Income Tax Filers and Liability by Taxable Income – Last Four Years ........ 288 Debt Capacity – Ratios of Outstanding Debt – Last Nine Fiscal Years ................................... 290 Ratios of General Bonded Debt Outstanding – Last Nine Fiscal Years.................................. 292 Debt Limitations..................................................................... 292 Pledged Revenue Coverage – Last Seven Fiscal Years ............................................ 294 Demographic and Economic Information – Labor Force Statistics – Last Ten Years .......................... 296 Population/Per Capita Personal Income Statistics – Last Ten Years.................................... 297 Top Ten Employers in Alabama – Last Ten Years ............................................... 298 Operating Information – State Government Employment by Function – Last Nine Years ....................... 300 Indicators of Demand or Level of Service – Last Five Fiscal Years .................................... 302 Indicators of Volume, Usage, and Nature of Capital Assets – Last Seven Fiscal Years ....................... 303

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STATE OF ALABAMA INTRODUCTORY SECTION 1 .

and on deposit in the State Treasury before any warrant is issued. The Examiners' unqualified opinion appears at the beginning of the financial section of this report. Members of the State Legislature. The internal controls include manual pre-audit and automated system edits. Section 72 of the Constitution of Alabama of 1901 and Section 41-4-3(4) of the Code of Alabama 1975. including all disclosures. allotted. Suite 220 Montgomery. is issued in a separate report and will be available at a later date from the Department of Examiners of Public Accounts. assurance regarding the safeguarding of assets against loss or unauthorized disposition and the reliability of the financial records from which the financial reports are prepared. and audit findings and recommendations. and State Comptroller. the determination of legality and correctness of each claim and expenditure. The State will also undergo an audit of federal programs to conform to the requirements of the Single Audit Act Amendments of 1996 and the U.gov Robert Bentley Governor David A.STATE OF ALABAMA Department of Finance Office of the State Comptroller 100 North Union Street. I believe the information as presented is accurate in all material respects and complies with Article IV. as amended. and the Citizens of Alabama: I am pleased to submit to you the Comprehensive Annual Financial Report (CAFR) for the State of Alabama for the year ended September 30. The Examiners conducted their audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. State Comptroller Janice A. Introduction to the Report Internal Controls The internal controls in the State's accounting system have been designed to comply with Alabama statutes requiring the audit of receipts and receivables. Hamm Deputy State Comptroller March 31. but not absolute.S. Alabama 36130-2620 Telephone (334) 242-7050 Fax (334) 242-7466 www. Section 137 of the Constitution of Alabama of 1901 and Section 36-16-1(6) of the Code of Alabama 1975. Audits of States. Office of Management and Budget Circular A-133. rests with the State’s management. Local Governments. and Non-Profit Organizations. State Treasurer. The concept of reasonable assurance recognizes that the cost of a control should not exceed the resulting benefits. the State Auditor's Office is responsible for a post-audit of the accounts and records of the Department of Finance and the State Treasurer's Office. and that funds are appropriated. Information relating to the single audit. The completeness and fairness of the presentation. As an additional control. White. including the schedule of expenditures of federal awards. 2011 To the Honorable Governor. as amended. This report complies with Article V. These internal accounting controls provide reasonable. Audit This CAFR has been audited by the Department of Examiners of Public Accounts. 2 . Jr.comptroller.alabama. 2010. Perry Director of Finance Thomas L. as the financial report for the State Auditor.

the Alabama Housing Finance Authority. Education Trust Fund. Auburn University. such as the General Fund. The Appropriation Acts identify the source of funding and the programmatic (functional) areas for which expenditures are authorized. boards. and State Treasurer. A component unit is defined as a legally separate corporate entity for which the State is considered to be financially accountable. Encumbrance accounting is utilized as purchase orders are issued to insure that purchase orders plus expenditures do not exceed allotment balances. the ability of the State to impose its will on the organization. Budgetary Controls Budgetary control is exercised through the Executive Budget Office of the Department of Finance based on the Appropriation Acts of the State Legislature. 34 requires that management provide a narrative introduction. and the University of South Alabama. 3 . The State is also considered financially accountable for any organization having an independently appointed board if that organization is fiscally dependent on the State. The MD&A can be found immediately following the Independent Auditor’s Report. These standards make a distinction between organizations which are considered to be part of the primary government of the State and those which are component units. the State Employees’ Health Insurance Board. Profile of the Government Reporting Entity This report presents financial information on all of State government as a single reporting entity. The major discretely presented component units are the Alabama Public School and College Authority. The Public Education Employees’ Health Insurance Board. and the Building Renovation Finance Authority. An organization is fiscally dependent if it is unable to adopt a budget. Both the Constitution of Alabama of 1901 and the statutes require a balanced budget for annual financial operations. the Alabama Water Pollution Control Authority. The numerous departments. In addition. and the potential for the organization to be a financial benefit or financial burden to the State. The criteria used to determine financial accountability include the appointment of a majority of the governing board. This letter of transmittal is intended to complement MD&A and should be read in conjunction with it. the Department of Mental Health.STATE OF ALABAMA Management’s Discussion and Analysis Governmental Accounting Standards Board (GASB) Statement No. While state law allows many state organizations to operate largely independent of the daily central control and scrutiny of the Department of Finance. universities. In the event that revenue collections do not meet budget projections. These appropriations and allotments are enforced by automated edits that prevent allotments in excess of appropriations and expenditures in excess of allotments. Component units can be reported as if they are a part of the primary government (“blended presentation”) if they provide services solely to the government. elected officials. State Parks Improvement Corporation. authorities. this report combines the financial data of all state organizations in order to present a comprehensive picture of state finances. Alabama's annual Appropriation Acts include legally adopted budgets for the General Fund. Controls are further tightened at fiscal year-end by verifying that the total of purchase orders plus expenditures plus any obligations (accounts payable) incurred against fiscal year appropriations do not exceed allotments. the Education Trust Fund. and other organizational units of the State are included in this report in accordance with standards established by the Governmental Accounting Standards Board. agencies. the University of Alabama. and Unemployment Compensation Trust Fund. Alabama Trust Fund. or issue bonded debt without the approval of the State. set rates or charges. colleges. commissions. overview and analysis to accompany the Basic Financial Statements in the form of Management’s Discussion and Analysis (MD&A). the Governor is required to prorate appropriations and restrict allotments to prevent an overdraft in any fiscal year for which appropriations are made. The largest of the blended component units includes the Federal Aid Highway Finance Authority. Allotments of appropriations are made quarterly based on plans of operations submitted by the departments and agencies. but most of the State’s component units do not and are therefore presented separately (“discrete presentation”) in these financial statements. Note 1 to the financial statements provides a more complete description of the State’s reporting entity. The MD&A provides an overview of the State’s financial activities addressing both governmental and business-type activities reported in the government-wide financial statements. the MD&A focuses on the State’s major funds. and remaining allotments do not exceed cash in the Treasury. and other budgeted funds. State Auditor.

670 46.759 11.003 5.424 $ 220.451 1.479.634.967 6.122 60.702 (51.122 1. This is more restrictive at the end of the fiscal year when obligations (encumbrances and accounts payable) cannot exceed the available cash balance (cash less warrants payable). and Cash Balances Education Trust Fund Last Five Fiscal Years . September 30 $ $ 187.310 2008 $ 286. September 30 $ $ 51.114 5.217.943) 264.675.572 1.414. Disbursements.STATE OF ALABAMA Cash Controls The State's controls on cash are fiscally very conservative.679.120 5.602.089 1.277 51.188.694 2009 $ 264.335 $ $ 2006 214.789 152.018 (77. This control is enforced by automated edits and tends to result in positive fund balances.303 $ $ 2007 325. October 1 Receipts Disbursements Net Increase (Decrease) in Cash Balance Ending Cash Balance.446) 187.581 1.498.686 264. October 1 Receipts Disbursements Net Increase (Decrease) in Cash Balance Ending Cash Balance.727 1.027 6. Constitutional Amendment 26 prohibits the State Comptroller from drawing warrants on the State Treasury unless there is money on hand to cover those warrants.974 94.652 1.670 1.281 1.470 325.055 4 .003 48.281 46.922 $ 280.964) 48.967 35.727 44.632 695.452) 286.033 (38.280 5.362 5. Summary of Receipts.680. even when generally accepted accounting principles (GAAP) basis accruals are made in the financial statements. Compliance with Amendment 26 is demonstrated in the following exhibits for the General Fund and the Education Trust Fund.814.277.345.656. September 30 Cash Balance Reserved for Obligations Unobligated Cash Balance.773 $ $ 2009 48.545.218 29.045 $ $ 2006 587.981 110. Disbursements.256 (21.673.Cash Basis (Treasury Cash Only) (Amounts in Thousands) 2010 Beginning Cash Balance.436 Summary of Receipts. and Cash Balances General Fund Last Five Fiscal Years .Cash Basis (Treasury Cash Only) (Amounts in Thousands) 2010 Beginning Cash Balance.720) 315.335 240.003 2007 $ 739.252 80. September 30 Cash Balance Reserved for Obligations Unobligated Cash Balance.682.843 3.595 (267.573 739.747 (423.428.854.280 51.313 1.280 $ 2008 $ 315.613) 135.470 5.687 44.836.631 6.532 68.687 5.668 40.971 $ 140.

9 (244.4 million from the Alabama Trust Fund in order to avoid deeper cuts from proration.S. FUND BALANCES .4 $ 2006 404.8 528. Interest earnings during the 2010 fiscal year were as follows: Bank Deposits US Treasury and Agency Securities $ 8. In cooperation with state agencies.029. U. Treasury securities and Agency securities. The fiscally conservative nature of Amendment 26 tends to produce positive fund balances every year. the State Treasurer initiates investments for several state agencies. the receiving of funds into the State Treasury is expedited. In addition to the management of the investment of these funds. treasury cash may be invested in time deposit open accounts. with all excess funds earning interest. leaving the Education Trust Fund with a deficit fund balance the past two years. or repurchase agreements.5 Cash Management The State Treasurer has the responsibility for the investment of cash balances.1 (221.7 1.9 million $ 14. in 2009 the Education Trust Fund used the provisions of Amendment 803 to the Constitution of Alabama of 1901 to borrow $437.8 $ 2007 404.7 186. The full amount of the loan remains outstanding in 2010. 5 .5) $ 2008 381.GAAP Basis (Amounts in Millions) 2010 General Fund Education Trust Fund $ 82. In accordance with statutory requirements. or demand accounts held in Alabama banks.STATE OF ALABAMA General Fund and Education Trust Fund Balances The fund balances for the General Fund and the Education Trust Fund for the last five fiscal years are presented in the following table.4 million Interest income is deposited in the State's General Fund to be appropriated by the State Legislature for government operations. The State Treasurer has placed considerable emphasis on cash management.5) $ 2009 222. However. with interest earnings being credited to those agencies.

construction. financial activities. Auburn University Montgomery 6 . however. University of Alabama University Outreach.9 percent increase for the fiscal year ended September 30.2 percent during 2010. respectively. Department of Commerce’s International Trade Administration. and the state’s major universities. utilities. however. and Brazil. automotive. The construction sector’s output grew by 2. There was a 1.S. -4% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Center for Business and Economic Research. Alabama’s economy is expected to improve considerably in 2011 with a 3.4 percent increase from the same period in 2009. slipped from $2. Alabama lost 86. Wholesale trade and retail trade outputs rose 1. For the first three quarters of 2010.5 percent. sales tax receipts have been gradually improving and registered a 0.2 percent jump in Alabama exports to $11.5 percent and other transportation equipment by 7. The average unemployment rate for 2010 was 9. Alabama’s largest trade partner. minerals and ores.7 percent. Other major exports during the first three quarters of 2010 were chemicals. primary metals. China. the unemployment rate will still remain fairly high. steel. and computers and electronic products. the United Kingdom. These include firms in industries such as aerospace and defense (both private and the major government facilities). paper products. Mexico. and information. Other major export destinations for Alabama products included Germany.2 billion for the first nine months of 2010 compared to the same period in 2009. but were up 34. and government.S. Other contributors to the increase in the manufacturing sector output include computer and electronic products which grew by 9.S.6 billion in 2009.2 percent.5 percent increase in output. Non-agricultural employment will experience a slight gain of 0. Tax revenues are projected to rise 1. The State’s unemployment was slightly lower than the national average in contrast to Alabama exceeding the national average in 2009.1 percent. This is attributable to gains in exports as well as net positive job creation.8 billion in 2008 to $2. The lower tax revenues resulted in proration in both the General Fund and the Education Trust Fund budgets. machinery.2 percent in 2010. 2010. Manufacturing sector output rose by 4. Sectors that shed the most jobs during the year include manufacturing. as sales strengthened in the latter part of 2010. leisure and hospitality. According to data from the U.2 percent in fiscal year 2011 if the state continues to improve at the pace expected. Exports to Canada. Annual Growth of Gross Product Last Ten Years Alabama U. a 30.9 percent for the first three quarters of 2010. Annual Growth in Personal Income Last Ten Years 10% 8% 6% 4% 2% 0% -2% -4% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Alabama U. All industries lost jobs except for educational and healthcare services.8 percent in motor vehicles and parts. with a significant increase of 10.7 billion. Japan. professional and business services.7 percent decline in the State’s tax revenues. Alabama’s gross domestic product (ALGDP) rose by 2. the end of the global recession in 2009 contributed to a 27.300 jobs during the 12-month period ending in October 2010. Several major commercial projects previously in the pipeline cushioned the slowdown in residential and commercial construction. Large manufacturing and services employers will be the major economic drivers in 2011.STATE OF ALABAMA Economic Condition and Outlook Alabama’s economy exhibited signs of recovery in 2010. wholesale and retail trade.8 percent.5 percent and 3. transportation equipment exports amounted to $3.

Acknowledgements Production of this report would not have been possible without the assistance of all state organizations which supplied financial information vital to the accuracy of this report. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In order to be awarded a Certificate of Achievement. whose daily efforts to improve the accountability of state government make the quality of this report possible. I also wish to express my appreciation to the entire staff in the Division of Control and Accounts. This was the twelfth consecutive year that the State has achieved this prestigious award. the continued support and cooperation of all agencies remain essential.STATE OF ALABAMA Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the State of Alabama for its Comprehensive Annual Financial Report for the fiscal year ended September 30. This report must satisfy both generally accepted accounting principles and applicable legal requirements. Respectfully submitted. A Certificate of Achievement is valid for a period of one year only. a government must publish an easily readable and efficiently organized comprehensive annual financial report. As we strive to produce this report in future years and to further enhance its quality. 2009. 7 .

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Bolin Champ Lyons. 2010 EXECUTIVE BRANCH Bob Riley Governor Jim Folsom. Harrison State Banking Department Barnett Lawley Department of Conservation and Natural Resources Col. Jr. Lyons Alabama State Port Authority Cynthia S. Ridling Department of Insurance Jim Walker Office of Homeland Security . Blalock State Military Department Nancy Buckner Department of Human Resources Jim Bennett Department of Labor John Houston Department of Mental Health Lee Sentell Tourism Department Dr. Steckel Alabama Medicaid Agency Cynthia Underwood Department of Revenue Jim L. Dillard Board of Pardons and Paroles Doni Ingram ADECA Adjutant General Abner C. Smith Michael F.STATE OF ALABAMA PRINCIPAL STATE OFFICIALS September 30. Jones Examiners of Public Accounts Joyce Bigbee Legislative Fiscal Office LEGISLATIVE BRANCH Rodger M. Jr. Greg Shaw Lyn Stuart Thomas A. Governor Kay Ivey State Treasurer Beth Chapman Secretary of State Ron Sparks Commissioner of Agriculture and Industries Troy King Attorney General Samantha Shaw State Auditor JUDICIAL BRANCH Sue Bell Cobb Chief Justice of the Supreme Court Justices of the Supreme Court Glenn Murdock Patricia M. Marquita Davis Department of Children’s Affairs 9 Richard Allen Department of Corrections Brock Long Emergency Management Agency Joe McInnes Department of Transportation Tom Surtees Department of Industrial Relations Carol H. Woodall Tom Parker Jerry Bassett Legislative Reference Service Ronald L. J. Pro Tempore Seth Hammett Speaker of the House EXECUTIVE BRANCH DEPARTMENTS Bill Newton Department of Finance Emory Folmar ABC Board Neal Wade Alabama Development Office Irene Collins Department of Senior Services John D. Lt. Smitherman Senate President. Christopher Murphy Department of Public Safety James K.

STATE OF ALABAMA ORGANIZATION CHART Voters of Alabama A LEGISLATIVE BRANCH House of The Representatives Senate eE Legislative Fiscal Office Legislative Reference Service EXECUTIVE BRANCH JUDICIAL BRANCH Supreme Court Court of Civil Appeals Court of Criminal Appeals Circuit and District Courts Administrative Office of Courts Examiners of Public Accounts Independent Agencies and Institutions Archives and History Building Commission Commission on Higher Education Criminal Justice Information Center Education Ethics Commission Forensic Sciences Forestry Commission Geological Survey Institutions of Higher Education Oil & Gas Board Office of Prosecution Services Personnel Department Postsecondary Education Public Health Public Library Services Retirement Systems of Alabama Securities Commission Veterans Affairs Youth Services Other Boards & Commissions Governor Alcoholic Beverage Control Board Alabama Development Office Banking Children’s Affairs Conservation and Natural Resources Corrections Economic and Community Affairs Emergency Management Environmental Management Finance Homeland Security Human Resources Industrial Relations Insurance Labor Medicaid Mental Health Military Pardons and Paroles Public Safety Revenue Senior Services State Port Authority Tourism Transportation Other Elected Officials Lieutenant Governor Secretary of State Attorney General State Treasurer State Auditor State Board of Education Agriculture & Industries Commissioner Public Service Commission 10 .

STATE OF ALABAMA FINANCIAL SECTION 11 .

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1 billion. and $3. The assets of the State exceeded its liabilities at the close of the fiscal year by $23. Of this amount. 2010. an increase of $375 million from last year. and the State’s financial statements. uncollected taxes and earned but unused vacation leave). General Fund expenditures and other uses exceeded revenues and other sources by $139 million. While federal programs swelled from federal stimulus money. $19. and losses are measured and reported using the economic resources measurement focus and accrual basis of accounting.5 billion of the fund balance is unreserved.7 billion (net assets). The difference between the State’s assets and its liabilities is its net assets. As of the close of the current fiscal year. The Statement of Net Assets presents information on all of the State’s assets and liabilities at the end of the fiscal year.1 billion as federal stimulus money flowed into the State Tax receipts were down for the second year . Increases or decreases in net assets from year to year may serve as a useful indicator of whether the financial position of the State is improving or not. regardless of the timing of related cash flows. On a budgetary basis. gains. revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. undesignated fund balance. Thus.4 billion was invested in capital assets (net of related debt). The government-wide financial statements exclude fiduciary activities. on a GAAP (Generally Accepted Accounting Principles) basis. $2. which immediately follow this discussion and analysis. 2) fund financial statements. This decrease was primarily from rising unemployment benefit payments. During the year the State issued $110 million in new general obligation bonds and $112 million in general obligation refunding bonds. Please consider the information presented here in conjunction with the letter of transmittal. revenues. Governmental activities have $3. liabilities.1 billion. The State issued $34 million in new revenue bonds and $27 million in refunding revenue bonds. Investment earnings were $318 million. The business-type activities reported net assets at year-end of $1.STATE OF ALABAMA MANAGEMENT’S DISCUSSION AND ANALYSIS The following is a narrative overview and analysis of the financial activities of the State of Alabama for the fiscal year ended September 30.68 billion. Grant revenues increased $2. a decrease of $72 million for the fiscal year. and 3) notes to the financial statements.1 billion was in the Alabama Trust Fund Capital. Financial Highlights             The State’s net assets increased by $462 million during fiscal year 2010. The State’s total bond debt at the end of the fiscal year was $1.g. Government-wide Financial Statements The government-wide financial statements provide a broad overview of the State’s financial position and activities measured in a manner similar to a private-sector business. expenses. However. the low tax receipts resulted in General Fund and Education Trust Fund proration. Assets..7 percent as the economy remained in a downturn.2 billion in investments. The State made payments on general obligation bonds of $26 million during the year. The State’s basic financial statements comprise three components: 1) government-wide financial statements. this time by $123 million. which represents the net difference between new issuances and payments and refundings of outstanding debt. which is located in the Introductory Section of this report. The Statement of Activities presents information showing how the State’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs. The Change in Net Assets in governmental activities was $534 million. an improvement over last year’s $259 million earnings. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. Overview of the Financial Statements This discussion and analysis is an introduction to the State of Alabama’s basic financial statements. Both of the government-wide financial statements distinguish functions of the State that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of 16 . or 1. the State’s governmental funds reported combined ending fund balances of $5.5 billion of which is held in the Alabama Trust Fund. The Budgetary Comparison Schedule in Required Supplementary Information reconciles these amounts and lists the accounting basis differences. General Fund expenditures and other uses exceeded revenues and other sources by $44 million. an increase of $76 million. Approximately $1.

health. capital projects funds. social services. These funds. Alabama College System. Alabama Trust Fund. Water Pollution Control Authority. all of which are considered to be major funds. Internal service funds report activities that provide supplies and services to other state agencies on a cost-reimbursement basis. University of Alabama. Fiduciary funds The State acts as a trustee or fiduciary for its employee pension plans. and Alabama Medicaid Fund. janitorial services. Like the government-wide statements. and University of South Alabama. because of a trust arrangement. and fiduciary funds. The governmental activities of the State include general government. By doing so. Fund accounting is used to ensure and demonstrate compliance with finance-related legal requirements. readers may better understand the long-term impact of the government’s near-term financing decisions. and liability protection. can be used only for the trust beneficiaries. and permanent funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Expenditures. Auburn University. but also legally separate component units for which the State is financially accountable. Housing Finance Authority. Public Road and Bridge Fund. Data from the nonmajor governmental funds are combined into a single aggregated column on the basic financial statements. manufacturing activities. and Changes in Fund Balances are followed by a reconciliation to the government–wide statements. State Employees’ Insurance Board. which include pension and other employee benefits. private17 . and services for shippers at the Port of Mobile.physical and mental. Governmental funds Most of the State’s basic services are reported in governmental funds. These funds are measured and reported using the current financial resources measurement focus and the modified accrual basis of accounting. it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. operation of facilities for the distribution and sale of alcoholic beverages. Proprietary funds Services for which the State charges customers a fee are generally reported in proprietary funds. The major enterprise funds are the Unemployment Compensation Trust. proprietary funds. debt service funds. and Changes in Fund Balances for the General Fund. The government-wide financial statements can be found immediately following this discussion and analysis. The State maintains two different types of proprietary funds: enterprise funds and internal service funds.STATE OF ALABAMA their costs through user fees and charges (business-type activities). Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues. These funds provide computer services. The governmental fund financial statements focus on near-term inflows and outflows of resources of these funds and the balances of those resources available at year-end. and the Alcoholic Beverage Control Board. Financial information for the component units is reported in a separate column from the financial information presented for the primary government. All of the funds of the State can be divided into three categories: governmental funds. The State’s fiduciary activities are reported in separate Statements of Fiduciary Net Assets and Changes in Fiduciary Net Assets. Public Welfare Trust Fund. Fund Financial Statements A fund is a fiscal and accounting entity with a self-balancing set of accounts that the State uses to keep track of specific sources of funding and spending for a particular purpose. natural resources and recreation. The major component units include the Public School and College Authority. State Port Authority. Individual fund data for each of the nonmajor governmental funds can be found in the combining and individual fund statements and schedules section of this report. unemployment compensation services. The types of funds which are categorized as governmental funds are the General Fund. These funds report activities that provide supplies and services to the general public in a manner similar to private business enterprises. Individual fund data for each of the nonmajor enterprise funds can be found in the combining and individual fund statements and schedules section of this report. telecommunications. proprietary funds use the accrual basis of accounting. The internal service funds are aggregated in a single column on the proprietary fund statements. and transportation. building maintenance. economic development and regulation. It is also responsible for other assets that. Department of Mental Health. Public Education Employees’ Health Insurance Board. protection of persons and property. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues. education and cultural resources. The government-wide financial statements include not only the State of Alabama itself (known as the primary government). special revenue funds. Expenditures. Examples of business-type activities of the State are operation of the State’s system of community and technical colleges. Because the focus of governmental funds is narrower than that of the government-wide financial statements. Education Trust Fund. information technology. These funds are reported as governmental activities on the government-wide financial statements. rental of office buildings.

buildings. They explain amounts shown in the financial statements and provide additional information that is essential to the fair presentation of the government-wide and fund financial statements. roads.g. bridges. while business-type activities have a positive balance in unrestricted net assets of $144 million. The government-wide financial statements exclude fiduciary fund activities and balances because the resources of those funds are not available to support the State’s own programs. nonmajor enterprise funds. 18 . Included in that amount was an increase in cash and cash equivalents of $428 million and an increase in investments of $137 million. primarily because of Federal Unemployment Trust Fund advances reported in Due to Other Governments. and agency funds are reported using accrual accounting. Current and Other Assets increased $714 million. consequently. and $100 million for post-employment health care benefits.. The largest components of this increase were $82 million in general obligation bonds. fiduciary funds. or legislative restrictions on how they may be used. The State uses these capital assets to provide services to its citizens. Unrestricted net assets for governmental activities are a deficit of $821 million. 2010. Of that amount $314 million was infrastructure and infrastructure construction in progress. $67 million in capital leases and notes payable.5%. The State’s combined assets exceeded liabilities by $23. (3) a schedule of funding progress for the Employees’ Retirement System. Other Supplementary Information Other supplementary information includes combining financial statements for nonmajor governmental funds. these assets are not available for future spending. equipment. such as land. and infrastructure (e. Other Liabilities for business-type activities increased by $263 million. constitutional provisions. and nonmajor discretely presented component units. (2) ten year loss development information for the State Insurance Fund. and (5) information about infrastructure assets reported using the modified approach. The largest component (82 percent) of the State’s net assets reflects its investment in capital assets. this report also presents certain required supplementary information which includes (1) budgetary comparison schedule reconciling the budgetary fund balances and generally accepted accounting principles fund balances at fiscal year-end. These funds are added together by fund type and presented in single columns in the basic financial statements.STATE OF ALABAMA purpose. $57 million of the investment increase was an increase in funds required by law to be set aside and invested for capital grants to cities and counties. Internally imposed designations of resources are not presented as restricted net assets. or 109. The State’s net assets that are unrelated to capital assets include $5. Government-wide Financial Analysis Net assets may serve over time as a useful indicator of a government’s financial position. tunnels). Unrestricted net assets represent the remaining amount of net assets that may be used to meet the State’s ongoing obligations that are not funded by resources that are restricted. Capital Assets increased $395 million. Notes to the Financial Statements The notes to the financial statements are an integral part of the financial statements.0 billion in restricted net assets. (4) a schedule of funding progress for the Retired State Employees’ Health Care Trust. Required Supplementary Information In addition to the basic financial statements and accompanying notes. or $238 million.5 percent. internal service funds. The State has a deficit in unrestricted net assets of $677 million. Restricted net assets represent resources that are subject to external restrictions. less any related debt used to acquire those assets that is still outstanding.5 percent. it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. or 9. Long-term liabilities increased 10. Although the State’s investment in its capital assets is reported net of related debt.7 billion as of September 30.

as expenses for Medicaid surged $504 million.283 904.598.4 billion.756) 22.1%. Education and Cultural Resources spending totaled $6. as discussed earlier.979. Tax revenues decreased $123 million.6 percent.521 4.1 billion.973.358 $ 881.199.1 million federal bonus award for outstanding performance in the State’s Medicaid program.101 4.476. as high unemployment increased expenses for food assistance by $272. was spent on Health. or 12.3 percent savings in operating expenses primarily because of furloughs for the hourly workforce and attrition.291 25.2 percent.337 3. Transportation increased $136 million.154 2. overall revenue increased $2. however.252 2.681 102. or 19.4 billion.433. was fairly flat at a mere 0.599 1.066.305 (555.975 $ 18. high unemployment rates and extended benefits drove spending for Unemployment Compensation up by $317 million.653 503. down from 32.329 $ 19.104.846 1.975 28.355 2. compared to the previous year as the economy was in recession for the early part of the fiscal year. which included $5 billion spent in Medicaid programs.0 billion.815.653 143.887 18.448. Grants and contributions not restricted to specific programs rose from $785. The State Port Authority recognized a 3.462.876) 23.3 million primarily as a result of a $39.504. or 10.959 26.240 1.277.775 (315.102 2. or 30 percent.059 1.6 percent.2 percent because the prior year included major industrial recruit grant payments to ThyssenKrupp and Goodyear.809 4.256 687. Social Services was up $386. or approximately 33 percent.967 4.288 1.3 percent. A total of $6.7 percent.216 2.331.9 million.906. The expenses for the Alabama College System increased by 8.982. or 12. Operating Grants and Contributions revenue increased $2. Charges for Services revenue increased $92 million. Education spending is funded primarily by tax revenues.470 240.821 $ 19. or 4.427. Taxes provided $7.067.5 percent increase.128.6 percent increase.600.000 to $40.1 percent in 2010.179 The table on the following page was derived from the government-wide Statement of Activities.826. of the State’s total expenses.507 27.6 million and the temporary assistance to needy families program increased $49.719.2% primarily because of increases in student aid and scholarships. or 24.647 20.315 $ 867.052.552. Education spending. The increase in federal dollars enabled total expenses to increase by $1.2 percent in 2009. Total Social Services spending was nearly $2.STATE OF ALABAMA Net Assets as of September 30 (Amounts in Thousands) Governmental Activities 2010 2009 Current and Other Assets Capital Assets Total Assets Long-term Liabilities Other Liabilities Total Liabilities Net Assets Invested in Capital Assets.936 $ Total Primary Government 2010 2009 8. because of the increase in federal grant receipts from the federal stimulus programs.773 $ 7. of the State’s total revenue.9 million. .958.3 percent.739. Investment earnings were $318 million. Net of Related Debt Restricted Unrestricted Total Net Assets $ 7. Spending increased significantly in most areas.399.941 $ 635.7 percent. Despite the drop in tax revenues.788.504.106 18.609.256.697) 23. or 1.265.981 1. rose only 1. Health increased $588 million.653 240.184. an improvement over last year’s $259 million.879.585 (820. As a result of the excess of expenses over revenues.702 1.541.857) 22. or 25. 19 .233 3.469.4 billion.7 percent. or 11.503.832 $ 6.440.014 $ 18.540.6 billion.039 $ Business-type Activities 2010 2009 815.077.620 4.541 1. General Government was up $84 million.2 billion.292 92.611. a 31. or 29 percent of all expenses.016 2. or 8. or 11 percent of total expenses. which.286 4. In business-type activities. the State’s net assets increased by $462 million during fiscal year 2010.397 1. or 8.238 (676. Economic Development and Regulation spending was down $77 million.757 664.319.127 20.6 percent.190.

621 5.094 1.147) 335.551 897.146.077.821 $ 1.364.005 423.184 $ 1.058 123.058 123.253 2.195 102 (9.134 254.769 18.339 2.039 253.011.944) 71 0 (300.531 $ 22.558 2.839.391 10.555.129.520 879.339 19.533 6.601 711.806 (335.039 253.221.253 2.829 $ 1.312 149.184 1.277.257.451 51.005.821 20 .977.536.572 11.573.809 10.829 1.954.931 49.312 45.192 829.827 22.708.745 6.521 $ 1.623 (366.578.621 5.450 (357.312 149.147) 462.873) 23.566.150 (71.393.370 229.315 1.723 306.170 6.067.199.323 315.179 $ 23.874.364.092 891.285 21.148.356 40.623) 65.780 127.Interest and Other Charges Unemployment Compensation State Port Authority Alabama College System Alcoholic Beverage Control Board Nonmajor Proprietary Funds Total Expenses Increase (Decrease) in Net Assets Before Contributions and Transfers Contributions to Permanent Funds & Endowments Special Items Transfers Change in Net Assets Net Assets.639 2.324.390 1.Ending Business-type Activities 2010 2009 Total Primary Government 2010 2009 $ 1.268 $ 2.014 17.435 1.227 7.329 $ 2.393.120.312 45.739.564 868.323.176.561 2.067.170 6.208.323 318.245.434.345.037.455 306.188.274 1.956 9.930 13.Beginning Net Assets.977.639 21.383 (397.172 12.150 23.885 959.261 1.077.902 983.573 113.313 1.358 1.052 $ 23.143.143.773 724.667 (300.700) 1.358 $ 22.323.551 897.443 7.506) 1.611) 102 (9.277.043 19.198.609.724 19.094 1.649 862.146.STATE OF ALABAMA Changes in Net Assets For the Fiscal Year Ended September 30 (Amounts in Thousands) Governmental Activities 2010 2009 Revenues: Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Taxes Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Total Revenues Expenses: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Debt Service .662 (724.192 829.745 6.001 45.120.112.307 666.005.150) 533.213 1.261 1.252 7.012.257.611.138 1.276.134 254.555.656 22.573 113.199.048 927.587 47.482.837 31.321.772 $ 784.587 47.179 18.451 51.001 45.213 1.135 7.434.481 7.614.313 1.902 983.874 785 245.804 785 258.533 6.718 812.390 1.142 229.780 127.138 1.112.654 9.311.128.914 40.534 8.260.394) 71 357.643.947 471.

operating grants and contributions. up from $9. or 20 percent compared to the previous year. or 10. the largest taxes were income taxes of almost $3. while $38 million is attributable to a decrease in revenues from oil and gas leases. of governmental activities were $8. About 92 percent of operating grants and 97 percent of the capital grants were received from the Federal government.5 billion.8 billion the previous year.1 percent.4 percent.8 was due to one time court settlements received in 2009.3 billion.3 billion the previous year. due to the influx of federal stimulus funds. General revenues. almost all of it being federal support for road and bridge construction. Revenue is categorized as either program revenue.9 percent.1 billion. Operating grants and contributions along with taxes together accounted for 83 percent of governmental activities revenue.2 billion. Of the $7. largely from stimulus programs. Of that $136 million. Program revenues totaled $11. Sales and use taxes were up 1. an increase of 1.STATE OF ALABAMA Governmental Activities Total revenues for governmental activities in fiscal year 2010 were $19. down from $7. or 14 percent. Revenues . 2010 Op erat ing Grant s an d Con tribut ions 46 % Ca pital Gra nt s an d Con tribut io ns 5% Cha rges for Se rvice s 6% O the r 6% Ta xe s 3 7% 21 . while income taxes decreased 4. Operating grants and contributions are the largest program revenues. Program revenues include charges for services. compared to the previous year. Operating grants and contributions grew $1.Governmen tal Activities Fiscal Year Ended September 30. which include taxes. make up 46 percent of total governmental revenues. and capital grants and contributions.7 billion. or general revenue. Taxes were $7. Grants for food assistance increased $273 million while Medicaid assistance was up $385 million. Revenue from all tax types represents 37 percent of total governmental revenues earned during fiscal year 2010.0 billion and sales and use taxes of $2. which is generated by the program itself or is received from another government.2 billion in tax revenues. Charges for services decreased $136 million. Operating grants and contributions were up $397 million to the Education Department.1 billion. Oil and gas lease revenues often fluctuate greatly from year to year as the commodity markets go up and down. and at $9.4 percent. Capital grants and contributions increased $115 million.4 billion. reflecting the downturn in the economy. $81.

Education spending increased 0. or 7 percent. Health accounted for 33 percent of governmental activity spending. Expenses .5 percent of the budget in the Education Trust Fund.STATE OF ALABAMA Total operating expenses for governmental activities in fiscal year 2010 were $18. Education and Cultural Resources now makes up 34 percent of governmental activity expenses. Support for local school systems increased $136 million.7 million.2 billion. 2010 General Government 6% Transportation 7% Education and Cultural Resources 34% Health 33% Other 2% Social Services 12% Protection of Persons and Property 6% 22 . up slightly from 32 percent last year. 90 percent is support for local school systems and state universities. The Medicaid program accounts for 82 percent of Health spending and the Department of Public Health accounts for 11 percent.4 percent. and support for most other programs decreased slightly as well. Within Education and Cultural. Social Services accounted for 12 percent of the governmental activities expenses. These two areas together accounted for 67 percent of the governmental activities expenses for fiscal year 2010. as the decrease in income tax revenue forced constitutionally mandated proration of 9. or 1.Governmental Activities Fiscal Year Ended September 30. down from 36 percent last year.8 billion. or $40.6 percent. The two largest functional areas were (1) Education and Cultural Resources and (2) Health. Overall expenses increased by $1. or 3. support for universities decreased $15 million.0 percent. Expenses for governmental activities are grouped by functional area.

The money was borrowed to alleviate revenue shortages in accordance with Amendment 803 to the Constitution of Alabama of 1901. In particular. as taxes decreased $49 million. The Alabama Trust Fund originally was a permanent fund. The largest change occurred in the Unemployment Compensation Trust fund.1 billion is for Alabama Trust Capital. court settlements. 23 . The high unemployment rates and federal extended benefits increased unemployment benefit payments by $314 million. Revenues for the General Fund decreased $151 million.0 billion of charges for services. $162 million. and investment income decreased $11 million. and the Unemployment Compensation Trust. unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. only $24.2 billion of operating grants and contributions.2 billion. The second largest change occurred in the Alabama College System. the Alabama College System receives most of the Transfers In that are reported in the business-type activities. Medicaid hospital care program grants decreased $63 million. Spending in most general government departments was relatively unchanged from the previous year.1 percent increase. a 76. The largest decrease was in spending for grant payments which was down 21%. Financial Analysis of the State’s Funds Governmental Funds The focus of the State’s governmental funds is to provide information on near-term inflows. Across all functional categories General Fund spending for supplies and materials was up 8 percent while all other categories were down. At the end of the current fiscal year. but is now a special revenue fund because of Amendment 666 to the Constitution of Alabama of 1901 which allows spending of principal equal to the previous year’s unrealized gains. and reserved fund balance was $5 million. and federal stimulus funds for the colleges. A portion of the Medicaid decrease in hospital care program and nursing home care program grant payments was the result of payments being made from stimulus funds in the Medicaid Fund and the Alabama Health Care Trust Fund. leaving $1. and other purposes. is a loan owed to the Alabama Trust Fund. This large increase was primarily due to increased rates charged to employers for unemployment compensation.6 billion. Health expenditures decreased $88 million. Protection of Persons and Property expenditures decreased $122 million. where the decrease in net assets was $131 million.9 percent. most of the decline was in employee salaries and benefits of $9 million and professional services of $3 million. The total expenses for business-type activities were $2. other revenue decreased $40 million. The largest reserved amount of $3. At the end of fiscal year 2010. Most of these transfers are from the Education Trust Fund as mandated by the legislature in the appropriation acts. Such information is useful in assessing the State’s financing requirements.5 percent increase was primarily federal stimulus funds. as overall grant payments related to Medicaid programs decreased $103 million. The General Fund is the primary operating fund of the State. Of this total amount. up 16. Also. The Medicaid nursing home care program grants decreased $82 million. The program revenues consisted of $1. where the increase in net assets was $72 million. A large portion.5 billion is reserved and is not available for spending because it has already been legally dedicated for various contractual commitments. In fiscal year 2010 the net assets of business-type activities decreased by $72 million. and $1. One time revenues were the cause of the decrease in both court settlements and other revenues as the State benefitted in 2009 from a $52 million drug settlement and a $40 million receipt from a component unit.2 billion revenues came from general revenues. unreserved fund balance of the General Fund was $77 million. Due to Other Funds increased $158 million to a balance of $168 million. with $101 million of decrease being spent with stimulus funds in nonmajor governmental funds for correctional facility operations. the governmental funds reported combined ending fund balances of $5. Spending for employee salaries and benefits was down 16% as departments shifted payroll costs to other funds. an increase of 46. Spending on General Government decreased $13 million. court settlements decreased $53 million.6 percent of business-type net assets. or 15 percent. The Alabama College System received $391 million in operating grants and contributions including federal stimulus funds. The Medicaid Pharmaceutical program was up $30 million. Revenues of business-type activities totaled $2.5 percent increase. primarily because of unemployment benefit payments. a 29. Most of this revenue was self-generated program revenues.STATE OF ALABAMA Business-type Activities The largest business-type activity is the Alabama College System. The Unemployment Compensation Trust Fund was in a borrowing status from the Federal Bureau of Public Debt. which accounts for 85. or 11 percent.2 percent. constitutional restrictions. Expenditures for the General Fund decreased $219 million. outflows.1 billion. $3. The 76. a nonmajor governmental fund. and balances of spendable resources.7 million of the $2. and the State did not receive any interest income during fiscal year 2010. The other major business-type activities are the Alabama Port Authority. the Alcoholic Beverage Control Board.5 billion as unreserved and undesignated. An additional $394 million of governmental fund balance has been reserved for a variety of purposes while $154 million of governmental funds have been designated for various capital projects and debt service.

Amendment No. and other functions related to educating the State’s citizens. Various tax sources are allocated to the ETF. a 7 percent increase. the cost of highway rights-of-way. including the arts. and the expense of enforcing state traffic and motor vehicle laws. or $406 million. Medicaid accounts for a portion of the Medicaid program that is funded by Federal revenues and other non-state revenue sources. and financial assistance programs for citizens. Expenditures increased 10 percent or $394 million with the largest increase being a $306 million increase in hospital care program. In compliance with constitutional requirements. the payment of highway obligations. and beer tax. The net change in fund balance for Medicaid was $46 million. Various amendments to the Constitution of Alabama of 1901 require that Alabama Trust income be used to support the General Fund. protective. This is the major operating fund of the Department of Human Resources. excise or license taxes levied by the State on motor fuels shall be expended for the cost of construction. utility tax. Investment income increased from a $170 million gain to a $256 million gain. The Alabama College System received $339 million in transfers as mandated by the legislature in the appropriations acts. The Public Welfare Trust Fund is used to account for a broad range of social. as spending increased $274 million. Alternative care programs declined $79 million or 18 percent. performing and fine arts. 24 . scholarship programs. Forever Wild Land Trust.STATE OF ALABAMA The Education Trust Fund (ETF) is the largest governmental fund of the State. but were shifted to the Medicaid fund this year. the State’s education regulatory departments. 93 (as amended by Amendment No. Accounts Receivable increased $23 million due to a one time final reimbursement due from the Alabama Hospital Association to settle the old hospital reimbursement plan (Prepaid Health Plan). Due to Other Funds in the ETF of $444 million includes $437 million owed to the Education Rainy Day account in the Alabama Trust Fund. A large portion of the decrease.35 million in the prior year. $26 million is in inventory of materials on hand. Spending on various children’s programs rose $26 million. primarily due to a reduction in cash of $17 million. Nursing Home Care increased $104 million with most of the increase being due to payments being made in the General Fund last year. and two and fouryear colleges and universities. The asset account Due From Other Funds increased by $162 million as an interfund loan was made to the General Fund under the authority of Amendment 803 to the Constitution Alabama of 1901. maintenance and repair of public highways and bridges. Cash balance rose from $318 million to $425 million. the cost of traffic regulations. franchise tax. public library services. Funding from the ETF is also provided to non-state organizations that provide educational services to the people of Alabama. sales and use tax revenues were up by $72 million. since the Federal Cash Management Improvement Act does not allow the State to draw money and hold it for more than a few days. Revenues from royalties and other payments related to the production of oil and gas decreased by $40 million in 2010. or $429 million. but is supplemented by whiskey tax and a portion of the Alabama Alcoholic Beverage Control Board profits. or $124 million over 2009. a decrease of $1 million. disease counseling and education. Expenditures declined $19 million. or 1 percent. and $46 million is reserved by statute for replacement of equipment. Overall spending rose $371 million. The ETF fund balance decreased $23 million to a deficit of $245 million. The fund balance increased by $54 million to a total fund balance of $473 million. or 2 percent as compared to fiscal year 2009. or 23 percent. Individual income tax revenues were down by $425 million. Federal revenues increased by 16 percent. Expenses for the Temporary Assistance to Needy Families program rose $49 million. 354) to the Constitution of Alabama of 1901 provides that monies derived from any fee. reconstruction. revenues were up 9 percent. or 7 percent. During the 2010 fiscal year. sales tax. The Public Road and Bridge Fund is the general operating fund of the Department of Transportation (DOT) and receives all state revenues for that department. sales tax. Programs and agencies supported by the ETF include K-12 education. an increase of 76 percent. debt service and capital improvements related to educational facilities. $203 million was transferred out to support these other funds. and use tax. The Alabama Trust Fund consists of income from the sale or lease of rights for offshore exploration and drilling for oil and gas off the Alabama coast. as well as investment income earned on the accumulated capital. Overall. and development of public education in Alabama. increasing the total fund balance to $38 million from a deficit of $8. and a variety of state and local capital projects and debt service. $282 million. with the largest of these transfers going to supplement operations of the Alabama College System. Revenues credited to the ETF are used for the support. The remaining $322 million is unreserved but the management of the DOT plans to use the money to cover commitments already made for construction and maintenance contracts. and support for state universities decreased $108 million. an increase of $86 million. $79 million of that fund balance is committed in the form of encumbrances for various contracts and purchase orders. Federal revenues increased 11 percent. An increase in hospital care program expenditures was due to a shift in payments from the General Fund to stimulus funds and due to a change in hospital reimbursement methodology in accordance with Act 2009-549. the amount constitutionally reserved for Trust Capital increased by $191 million. maintenance. including all federal aid reimbursements. Expenditures. or $373 million. the largest of which are income tax. a major Proprietary fund. Tax revenues in the ETF for fiscal year 2010 were down $90 million. a 27 percent increase. and the fund balance at year end is $83 million. The ETF transferred out $381 million. The small fund balance is normal for this fund. were down 8 percent. and youth development. was in financial assistance to local school systems. 89 percent of the revenue is from federal funds. The economic downturn created a huge increase in demand for food assistance. $2 billion was spent in the fund in 2010. and corporate income tax revenues were up by $279 million. as limited by the budget.

The interest paid during fiscal year 2010 was $13 million. 2010. In fiscal year 2010. Then in September 2010 the budget was increased by $31 million as a result of a 2 percent reduction in proration because of the remaining cash close to year-end. due to elevated unemployment compensation claims and the extension of unemployment benefits.STATE OF ALABAMA The Education Trust Fund had a negative fund balance at September 30. Grants increased from $296 million in fiscal year 2009 to $391 million in fiscal year 2010. the Legislature. the net assets of the Unemployment Compensation Trust Fund were $152. and medical care for prisoners. the State Port Authority has $364 million in revenue bonds payable. and the increases and decreases are reflected in the final budget on the Budgetary Comparison Schedule.8 million in deficit. $5 million. The Public Road and Bridge Fund retains enough cash to cover their outstanding construction contracts and commitments so that fund historically has a large fund balance. In 2010. The Medicaid Agency uses these funds to match the federal grants for Medicaid programs. The net assets of the State Port Authority decreased by $8 million to $318 million. per employee per year. $162 million of this debt has variable interest rates indexed to LIBOR. The Board is required by law to distribute all of its profits and cannot own real property. Operating revenues have shown a modest increase. a 31. the rates increased to $172 to $664. 12 percent proration was declared in April 2010 because cash collections were not meeting budget projections. many agencies did not spend all of their appropriations during fiscal year 2010. the unemployment benefit payments were $1. The accrual of taxes receivable in the General Fund and Education Trust Fund almost always assures a positive fund balance. a decreased of $130. This is not typical for the State’s major governmental funds because the fiscally conservative nature of the State’s controls generally results in positive fund balances. The State Unemployment Insurance tax rate was raised effective January 1. Expenditures were decreased by $23 million and Transfers Out decreased by $33 million.9 million revenues comparing to the year before. The State borrowed funds from the Federal Government to pay benefits and still owed the Federal Government $283 million for advances at year-end. and $3 million.3 billion dollars in 2010.5 million. The Education Trust Fund had a negative fund balance at September 30 resulting from the interfund loan owed to the Alabama Trust Fund. The Alabama College System’s net assets increased $72 million in 2010. Department of Economic and Community Affairs. 2010. 25 . There were significant budgetary variances between the final budget and actual results. The Department of Corrections was cut by $37 million and the Medicaid Agency was cut by $42 million. net assets generally will remain negative. a 3 percent increase. resulting from a number of factors. and the Department of Finance have $7 million. The current principal portion of this debt is $8 million. $5 million. total net assets for all enterprise funds declined by $72 million.4 percent increase. The largest expenditures for correctional facilities are correctional officer salaries and benefits. a 32 percent increase. Department of Corrections. The Medicaid Agency has the largest carryover of $35 million to fiscal year 2011. These funds will be needed in the future because federal stimulus funds will have been expended and projections for State revenues are not improving. The economy has a significant effect on the State Port Authority’s interest expense as well as its operating revenues. This decreased the budget by $184 million. However. therefore. The Department of Corrections received $52 million of this supplemental appropriation for correctional facility operations. $6 million. The Department of Public Safety. Proprietary Funds The State’s proprietary fund financial statements provide the same type of information found in the government-wide financial statements. a 90. The net assets of the Alcoholic Beverage Control Board declined by $3 million in fiscal year 2010. primarily because of an increase in federal grants including stimulus funds. respectively. to $106 million from $103 million the prior year. therefore. an increase of $314 million. Average tax rates per employee per year ranged from $64 to $512 in 2009.4 percent increase. Budgetary Highlights General Fund The original budget for the General Fund was decreased by a net of $56 million during fiscal year 2010. but in more detail. The McDuffie Coal Terminal experienced increased revenues because of the strong market for metallurgical coal and the Terminal Railway benefited from significant volumes of grain shipped through the leased grain facility. There were budget increases to various agencies as a result of supplemental appropriations which totaled $101 million. The increase in Unemployment Insurance tax rate brought in additional $190. The Medicaid Agency received $42 million of this supplemental appropriation. resulting in a $13 million deficit. During the fiscal year. However. Unexpended and reverted appropriations from fiscal year 2010 were reappropriated to fiscal year 2011. Constitutional Amendment 26 requires the State to have on hand at year end in each budgeted fund enough cash to cover all outstanding warrants and any remaining unspent obligations (encumbrances and accounts payable).

702 $ 18.728 1.859 7.958 1.743 533.411 20.324 4.658 122.959 1.053 1.718 485.948. General Fund expenditures and other uses exceeded revenues and other sources by $44 million.564 $ 325.257.761 $ 18. Depreciation charges for the fiscal year totaled $146 million. Net Capital Assets. Emergency appropriations cannot exceed two percent of the total amount appropriated. Projects that meet the cost and documentation criteria are closed.008 347.879 3.059 1.350 114. 34.302 As allowed by GASB Statement No.948 12.160. Preservation costs are expensed and reported in lieu of a charge for depreciation expense. net of accumulated depreciation. Capital Assets as of September 30 (Amounts in Thousands) Governmental Activities 2010 2009 Capital Assets Not Being Depreciated: Land Historical Exhibits Construction In Progress Construction In Progress .819 944.462.465 605.977 10 309. Conditional amounts are not included in the budget until the conditions have been met. General Fund expenditures and other uses exceeded revenues and other sources by $139 million. 26 .295 5. Extensive project documentation is required to meet various federal and state guidelines concerning the construction of infrastructure. Capital Asset and Debt Administration Capital Assets At the end of fiscal year 2010 the State had invested $20. The annual budget was decreased by $6 million as a result of capital project appropriations for the Department of Corrections. and appropriate entries are made to adjust the Infrastructure Construction in Progress and Infrastructure asset accounts annually.655. there can be substantial time lags between the date a project is put into service on the State’s roadway network and the date the project is capitalized. and accepted with the appropriate entities.437 786.845 726.975 2.Infrastructure Infrastructure Inexhausible Intangible Assets Total Capital Assets Not Being Depreciated Capital Assets Being Depreciated: Buildings Equipment Software and Other Intangible Assets Total Capital Assets Being Depreciated Less Accumulated Depreciation Total Capital Assets Being Depreciated.211 5.530 $ Business-type Activities 2010 2009 82.622 12.822.547 2. Costs that allow the infrastructure network to be used efficiently over the expected useful life of the assets are expensed as general maintenance costs.470.091.540.304. Infrastructure costs that result in an increase in the capacity or an improvement in the efficiency of the infrastructure network are capitalized and added to the historical cost of the assets.958 $ Total Primary Government 2010 2009 364.011 $ 2.638.916. Under the modified approach.016 $ 1.902 18.694 959.347 4.622 12.504.119.248 2.632.257 $ 242.993.590 2.008 259.902 10 18.354.STATE OF ALABAMA Conditional and other appropriations were approximately $3 million to various agencies.792 1.068. the State has adopted the modified approach for reporting roadway and bridge infrastructure assets.488 1. Due to the documentation requirements.814 $ 20.313 17. The Budgetary Comparison Schedule in Required Supplementary Information reconciles these amounts and lists the accounting basis differences. filed.5 billion. However.257 10 199.091.446 3.350 224. in a broad range of capital assets (see the table below).658 1.709 1.486 2.248 1.906 3.332 2.744.594 3.354.014. On a budgetary basis.540. Some expenditures are required by law to be fully funded.401 5.316 627.752.902. A significant portion of Infrastructure Construction in Progress consists of projects that have been put into service and maintenance costs could have been incurred.305 10. Emergency appropriations of $2 million are included in the original budget and are included in the budgeted amounts as Other on the Budgetary Comparison Schedule.183 1.213.267. Certain maintenance costs that extend the useful life of the assets but do not increase capacity or efficiency are classified as preservation costs.313 10 17.455 905.554.711 2. depreciation is not recorded.211 5. and estimated amounts are approved in the General Fund appropriation bill.621 2. on a GAAP (Generally Accepted Accounting Principles) basis. Net $ 281.249.300 1.958.916. The State capitalizes infrastructure when all costs for a project are incurred and all project documentation is satisfactorily completed.658 145.043.043.038 5.521 957.346 1.307 $ 82. Increases to these estimated amounts do not require a new bill and are included as other appropriations.598.865.291 $ 1.886.397.948 12. The completeness of this documentation affects the timing of project capitalization.161.690 2.

2008. 27 . The Alabama Building Renovation Authority issued $26.360 $ $ To tal Primary Government 20 10 2 009 76 9. Fitch Ratings Ltd and Standard and Poor’s Corporation lowered the bond ratings for the State Port Authority to BBB+ in September 2009.68 1.24. More detailed information about the State’s capital assets is presented in Note 3 to the financial statements and in the Required Supplementary Information section.000 to preserve all bridge assets at or above the “Established Condition Levels” presented above. usually earmarked taxes or revenues generated from the project financed. in the upper end of the satisfactory range. respectively.10 9 619 . and the full faith and credit of the State is not pledged for their repayment. and $247.” meaning the structural elements are sound but have minor deterioration.1 million. condition levels are expected to continue to meet or exceed the “Established Condition Levels”.3 36 9 18.6.STATE OF ALABAMA The State uses the International Roughness Index (IRI) to measure and monitor pavement conditions. The State maintains 5. which exceeds the State’s goal.2 83 $ 1.000 in new bonds.793.082.020. Some of these corporations are blended with the primary government and some are reported discretely. 2007. Alabama has traditionally received high bond ratings from both Standard and Poor’s Corporation and Moody’s Investors Service. The weighted average rating of Alabama’s roads was 79. 2009.6 05. are pledged for the payment of the debt.0 43.6 13 $ $ 687 . The IRI is a standard representing the perceived smoothness of pavements while traveling in passenger cars. In fiscal years 2010. The State Port Authority issued $15.000 in refunding general obligation bonds. The United States Department of Transportation developed suggested values for IRI of <60 inches/mile to >220 inches/mile to grade the smoothness condition of the roadway. In the next fiscal year.336 298 .033.60. the State estimated it would need to spend $306. a component unit of the State. requiring routine maintenance such as pavement patching. Certain revenues. $277.7. The Alabama College System issued $19. Ou tstanding B ond ed Debt as of Septemb er 3 0 (Amo unts in T hou sand s) Gov ernm en tal Activities 2 010 200 9 General Obligation Bond s Reven ue B ond s To tal $ 7 69.048 $ Business-typ e Activ ities 201 0 20 09 63 8. Also.0. Moody’s withdrew their rating for the State Port Authority in June 2009.0 72 $ 1.030. More detailed information regarding the State’s long-term debt is presented in Note 4 to the financial statements.000 to preserve all roadway assets and approximately $10. $310. and a range of 95-119 for Interstate Highways or 95-170 for non-interstate highways is considered “Fair”.457.712 986 . $320. which is considered “satisfactory.360 $ 619 . with negligible maintenance required.000 for roadway preservation and $47.330 91 2. an exception is the upper medium bond ratings for the Tobacco Settlement Revenue Bonds issued by the Alabama Twenty-first Century Authority.0. The debt prohibition does not apply to debts incurred by separate public corporations functioning as State instrumentalities. not general obligations of the State. The revenue bonds issued by these corporations are limited obligations of the corporation.0. A lower IRI measurement represents a smoother condition of pavement. Currently.000. to preserve and maintain all roadway assets and $10.000 for bridge preservation in fiscal year 2010. the Alabama Department of Transportation estimates that it will need to spend approximately $319. Long-term Debt The only method under which general obligation debt can be incurred is by amendment to the Constitution of Alabama of 1901.368 bridges and culverts.3 30 2 74.10 9 $ 63 8.0 million in each year to preserve all bridge assets at or above the “Established Condition Levels” presented above.99. The State rates the major structural components and deck area of the bridge or culvert on a scale of one to ten and assigns a weighted rating to the bridge or culvert. The State expects those bridges and culverts to be maintained at a rating within the range of 5 .000 in new bonds.100.000 in new general obligation bonds and $112.722 6 87.568. the State spent $316.990. The State spent $387.000. A range of 60 to 94 is considered “Good” condition.000 in refunding bonds.4 08 $ The State issued $110. Even though actual spending for bridge preservation fell below estimated.000 for bridge preservation. and 2006.000 for roadway preservation and $34. The State and its component units issue serial and term bonds and capital appreciation bonds. In fiscal year 2009. The actual weighted average rating for the most recent condition assessment was 6.392 $ 1.

3 percent in January 2011.STATE OF ALABAMA Economic Factors and Next Year’s Budgets and Rates On February 28. RSA Union. 2011 the new governor declared 3 percent proration for the fiscal year 2011 Education Trust Fund budget because of revenue shortfalls. This economic recession will continue to impact Alabama. he announced plans to declare 15 percent proration in the State General Fund. therefore. The State’s seasonally adjusted unemployment rate. Suite 206. Requests for Information This financial report is designed to provide a general overview of the State of Alabama’s finances for all those with an interest in the government’s finances. after first working with the Legislature for supplemental appropriations to protect priority agencies that provide necessary and critical services. was above December 2010’s rate of 9. The Education Trust Fund budget has a $165 million shortfall while the General Fund budget has a $110 million shortfall. Tax collections are down and the future economic condition is uncertain for the nation. State agencies normally receive allotments of 25 percent each quarter. 28 .1 percent but was below the year-ago rate of 10. Montgomery. at 9. Financial Reporting Section. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Office of the State Comptroller. all of the shortfall will be in the last half of the fiscal year. With one time federal stimulus money now depleted. Furthermore. Agencies will have to revise their operating plans including plans for employee layoffs.3 percent. AL 36130-2602. The first two quarters were not cut. Alabama is left with the loss of hundreds of millions of dollars in both state budgets.

STATE OF ALABAMA FINANCIAL SECTION Basic Financial Statements 29 .

307 2.333 231.357 103.102 $ Component Units 2.452 76.906 76.228 13.941 49.399 511.526 109.795 632.742 676.712 730 117.765 39.691 77.618 23.319.793 263.578 196.979.040 284.465 510.656 6.862 792.228 40.773 1.758. 30 .049.561 61.230 718.823 126.060.857) 22.433.795 35.765 14.957 64.552.014.066 3.STATE OF ALABAMA STATEMENT OF NET ASSETS September 30.602 145.993 93.141) 116.742 71.697 758.185 72. Notes.967 73. and Loans Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets Capital Assets.934 931 1.798 3.234.943 6.788.329 19.899 (19.993 80.781 13.621 6.594 61 263.619 172.777 683.582 (676.678 84.257 26.693.494 3.777 683.432 46.569 8.270 2.325 544.691 77.Non-expendable Forever Wild Stewardship Account Alabama Trust Capital Local Government Education Natural Resources and Recreation Social Services Protection of Persons and Property Transportation General Government Debt Service Capital Projects Other Purposes Unrestricted TOTAL NET ASSETS $ 2.702 18.427.970 46.304.428 192.073 2.260 225.333 516.085 944.141 13.936 125.564 28.185 1.559 8.293 688.859.917 64.698.624 264.256 $ Total Primary Government 2.823 126.097 15.653 1.420 $ $ $ $ The Notes to the Financial Statements are an integral part of this statement.599 3.594 61 264.261 1.503.561 1.347 385.216 180.075.156.375 291.249.611.719.379 9.374 45.981 1.014 881.290 599.069 175.128.620 32. Net of Accumulated Depreciation Capital Assets Not Depreciated Deferred Outflows TOTAL ASSETS LIABILITIES Warrants Payable Investment Purchases Payable Salaries Payable Due to Primary Government Due to Component Units Accounts Payable Interest Payable Tax Refunds Payable Due to Other Governments Securities Lending Obligation Unearned Revenue Amounts Held in Custody for Others Noncurrent Liabilities: Due Within One Year Due In More Than One Year TOTAL LIABILITIES NET ASSETS Invested in Capital Assets.022 196.754 24.832 69 7.337 61.512 687.709 199.973 900.228 79.637 71.470 117.432 46.061.815.450 5.069 58.798 3. Net of Related Debt Restricted for: Permanent .748 41.429 814.515 2.602 145.510 23.876) 23.301 18.357 103.603.Expendable Permanent .831 1.302 1.681 48.315 19.171 15.602 71.721 49.528 7.213.286 24. 2010 (Amounts in Thousands) Governmental Activities ASSETS Cash and Cash Equivalents Investments Internal Balances Due from Primary Government Due from Component Units Investment Sales Receivable Accounts Receivable Due from Other Governments Taxes Receivable Interest and Dividends Receivable Mortgages.317 52.712 47.191 225.559 8.252 4.239.411 18.493 11.739.507 194.740 143.815.190.748 14.111 4.293 491.061.776 27.846 $ Business-type Activities 454.347 385.399.582 (820.216 172.516 211.696.619 172.360 814.784 24.215 31.329 2.760 4.033 14.219 23.696 24.010 498.972 26.972 26.

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261 1.261 4.313 1.252 380.Interest and Other Charges Total Governmental Activities Charges for Services PROGRAM REVENUES Operating Grants and Contributions Capital Grants and Contributions $ 229.677 252.885 5.253 2.149 7.211 31.666 37.467 827.839.727.639 2.760 5 3 917.207 38.492 29.675 927.087 204.587 47.148. October 1. 2010 (Amounts in Thousands) Expenses FUNCTIONS/PROGRAMS Primary Government: Governmental Activities: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Debt Service .956 $ 22.319 414.067.482.004 186.745 6.372.659 608.598 20.012.132 48.460 179.269 439.486 1.837 10.323.026.391 784.947 411.196 774.255 460.324.320 3.457.146.440 337.170 6.312 149.176.147 120.094 1.134 254.551 897.504 1.774 62.001 45.702 83. September 30.016 2.347 249.383 21.829 18.292 23.298.956.564 $ 92.826 45.538 General Revenues: Taxes: Sales and Use Taxes Income Taxes Motor Fuels Taxes Utility Taxes Insurance Premium Tax Property Tax Liquor Taxes Tobacco and Cigarette Taxes Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Contributions to Permanent Funds and Endowments Payments from State of Alabama Special Items Extraordinary Items Transfers Total General Revenues.769 502.225 5 8 270.981 102 391.272 308 28.364.162 1.420 174.809 959.STATE OF ALABAMA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30.208.277 5.395 369.134 42.389 74.433 411.136. 2010 The Notes to the Financial Statements are an integral part of this statement.622 231.713 19. 32 .079.023 1.286 9.229 1.360.058 123. and Transfers Change in Net Assets Net Assets.131 8.143.221. Special Items.217 33.435 2.196 789.643.048 $ 0 9. as Restated Net Assets.385 250 119 1.695 49. 2009.405 865.443 Business-type Activities Unemployment Compensation State Port Authority Alabama College System Alcoholic Beverage Control Board Nonmajor Proprietary Funds Total Business-type Activities Total Primary Government Component Units: Public School and College Authority Mental Health Housing Finance Authority Water Pollution Control Authority University of Alabama Auburn University University of South Alabama Public Education Employees' Health Insurance State Employees' Health Insurance Board Nonmajor Component Units Total Component Units 1.549 318.647 48.434.257.467 1.598 26.620 763.228 47.

009.179 23.098 136.302) (422.569) (5.558 2.128.009) 21.739.942) (400.329 7.150 23.555.973.656 22.246 551.088.494) 9.104 454.040) (119.089 2.765) (25.092 891.749 6.277.609 (299.210 684.315 2.955 612.834 2.147) 8.829) (7.150 350.243 314.194.199.892 (361.437 263.967 2.311 40.116) (867.Net (Expense) Reve nue and Cha nges in Ne t Assets Total Governmental Business-type Primary Activities Activities Government Component Units $ (114.555.569) (5.014 10.420 $ $ $ $ 33 .430) (411.833) (160.548 (340.569 462.150) 8.555.671 6.218.311 40.698.116) (867.609 (299.210 684.977.821 1.083) (38.358 22.077.572 11.815) (47.419) 0 0 0 0 0 (380.085.427) (2.520 879.506) 1.977 156.117) $ 0 0 0 (7.323 318.302) (7.930) 2.962) (139.430 27.930) 2.285 102 (9.806.611.009.206) 2.104) 2.973.834 2.117) $ 0 0 $ (114.942) (400.561 102 (9.861) (1.323 315.437 263.154 3.108.829) (7.984 (422.977 166.117) (126.040) (119.104) 2.243 314.815) (47.861) (1.796 (71.724 (335.147) 335.293) (546.059) (26.293) (546.430) (411.439.246 551.083) (38.211 96.097) (791.656 136.302) (126.984 (422.773 533.108.

701 10 3.338 2.106 192 13.526) 337.413 6.864 $ Medicaid Fund 81.694 The Notes to the Financial Statements are an integral part of this statement.358 12.129.187 25.217 $ 79.964 359.220 5.793 1 103 581.522. 34 . Designated for Debt Service Unreserved.652 655.317 446.515 4.033 (247.782 3.758 8.800 655.559) (244.278 599.729 22.278 $ 469 2.879 446.793 337.694 $ $ 201.405 82.310 37.532.090 31.484 144.894 2. 2010 (Amounts in Thousands) General Fund ASSETS Cash and Cash Equivalents Investments Due from Other Funds Due from Component Units Investment Sales Receivable Accounts Receivable Due from Other Governments Taxes Receivable Interest and Dividends Receivable Mortgages.515 3.224 16.604 108.535 172 174.458 18 321.STATE OF ALABAMA BALANCE SHEET Governmental Funds September 30.981 7.652 45.604 3.816 5.792 8.532.312 $ 3.458 359.333 8.194 174.687 236 182.376 472.816 39.151 388 1 4.798 3.864 $ 10.875 10 121.027 $ Alabama Trust 52.654 27.616 55.061.751 44 8.424 444.556 2 92 26 194.477 3.028 3.466 5 458 3 218.217 $ Public Road and Bridge Fund 424.042 168.154 17.559 8.253 $ 2. Notes.494 117.039 64.735 37.404 17.905 233.585 322.619 34.191 $ 3.772 245.157 3.191 $ $ $ $ $ 1.680 26.710 2. Designated for Capital Projects Unreserved.553 $ 0 224. and Loans Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Warrants Payable Investment Purchases Payable Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Tax Refunds Payable Due to Other Governments Securities Lending Obligation Deferred Revenue Amounts Held in Custody for Others Compensated Absences Total Liabilities Fund Balances Reserved for: Encumbrances Inventory Restricted Assets Long-term Receivables Highway Equipment Replacement Forever Wild Stewardship Account Alabama Trust Capital Local Government Capital Improvement Trust Permanent Trust Principal Unreserved.317 77.073 7.567 2.241 24.459 23.358 25.027 $ 133 24. Reported in: General Fund Special Revenue Funds Permanent Funds Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ Education Trust Fund $ 134.428 315 804 363. Undesignated.586 3.056 403.044 19 47.543 13.

129 $ $ $ $ 795 21.870 3.392 $ 39.824 57.732 326.Public Welfare Trust Fund $ 132.725 719 855.091.072 $ 142.191.070.898.751 2.752 262.296 203.988 30.431 24.522 24.318 806 1.756 64.784 153.556 120.166 61.865 381 43.798 3.206 49.803 4.429 814.116 1.326 7.256 46.216 169.242 1.333 231.827.559 8.242 122.672 $ 203.488 6.869 225.748 208 45.964 82.477 45.704 145.585 24.064 $ 43.470 149.909 845 9.374 1.069 56.736 529.748 37 7.135 2.274 47.135 61.364.748 37 2.867 700.266 270.983 157.784 153.678 72.508.410 546 1.930 591.972 26.808 2.164.178 255 120.374 5.064 $ Nonmajor Governmental Funds 1.279 681 61.324 56.061.266 30.748 208 45.358.456 5.214 61 47.583 14.023 5.296 35.253 695.391 510.898.824 3.318 806 77.799 3.405 1.072 $ Total Governmental Funds 2.595 210.708 77.166 61.813 11.135 61.121 $ 48.095 187.906 2.619 34.951 2.178.129 35 .364.452 61 262.

154) Long-term bonded debt is not due and payable in the current period and therefore is not reported in the funds.043. therefore.117.540. 2010 (Amounts in Thousands) Total Fund Balances for Governmental Funds Capital assets used in governmental activities are not financial resources and. Capital Leases. deferred debt financing costs. (741. and interest payable are not reported in the funds.167) 422 7.625) (781.177 Some of the State's revenues will be collected after year-end. but are not available soon enough to pay for the current period's expenditures. General Obligation Bonds Payable Revenue Bonds Payable Unamortized Premiums Unamortized Discounts Unamortized Loss Deferred Debt Financing Costs Accrued Interest Payable Net Assets of Governmental Activities The Notes to the Financial Statements are an integral part of this statement.342 36 . to individual funds.Infrastructure Infrastructure Buildings Equipment Intangibles Accumulated Depreciation .STATE OF ALABAMA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS September 30.561 5.427) (15. Unamortized discounts.611.771) (281.902 1.625 (8. these amounts are included in the Statement of Net Assets. unamortized loss. such as insurance and information technology.299) (6.916) (976. This is the total effect of these balances on the statement. unamortized premiums.127 589.170) $22.Buildings Accumulated Depreciation .Intangibles 280. However.884 4. are not reported in the funds.014 $5.493 157.955 2. and Mortgages Compensated Absences Claims and Judgments Due to Component Units Other Post-Employment Benefits (115.657 115.032) (362.326 256. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets.Equipment Amortization .359) (399) 18.948 12.761 2.070. Land Historical Exhibits Construction in progress Construction in progress . and therefore are deferred in the funds. Notes.250) (199.884. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.645) (37.437 (466. Internal service funds are used by management to charge the costs of certain activities.536) (344.

37 .

985) (221.170 2.879 $ 382 (381.541) (244.876) (22.951.449 46 275 240 5.142 69 82.132 381.689.968.189 Alabama Trust 0 256.598 4. October 1.995 13.177 25.850 19 (224. AND CHANGES IN FUND BALANCES Governmental Funds For the Fiscal Year Ended September 30.608 $ Medicaid Fund 0 3.476 125.326 24.770 4.Principal Retirement Debt Service . Permits. EXPENDITURES.179.222 (23. and Fees Fines.177 1.878 633.352 457.677) (186. as Restated Increase (Decrease) in Inventory Fund Balances.923) (139.964 $ 945 1.034 418.814 8.258) (380.462 441.372. September 30.305 2.493 233.549 2.322.431.452 2.STATE OF ALABAMA STATEMENT OF REVENUES. 2009.429 2.104 (203.597 17.817) (56.178.291 2 313.127 49.023.233.770 1.386 5.494 4.526) 6.715 6.725) 46.792) (115.133 1.115 4.256. Forfeits.319 (8.416 $ 3.129.605.032) 52.409) 357.119 400 5.332) 222. 2010 (Amounts in Thousands) Education Trust Fund $ 5.891 375.586 $ 113.088 157. and Court Settlements Investment Income Federal Grants and Reimbursements Other Revenues Total Revenues EXPENDITURES Current: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Capital Outlay Debt Service .840 (58.752 39.010 $ Public Road and Bridge Fund $ 348.411 31 3.427) (197.858 1.952 (300.036 30.731 153 1.314 472.821.372.800 The Notes to the Financial Statements are an integral part of this statement.044 108.323.787 337 98 1.Interest and Other Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Bonds Issued Refunding Bonds Issued Capital Leases Other Debt Issued Debt Issuance Premiums Insurance Recovery Proceeds Transfers Out Payments to Refunded Bond Escrow Agent Current Refunding to Bondholders Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances.743 144. 38 .288 General Fund REVENUES Taxes Licenses.797 13.355) 37.336 80 50 4.191 24. 2010 $ $ 1.066 108.323) 178.071 906.

415) (52.121 1.963 150.259.861.420 5.200) 83.700 346.692.780.070.121 204.724.707.461 195.127 (350.415) (52.989 2.672 1.322 62.872 $ 82.422) 106.350.236 38.074.644 177.592.327 1.575 Total Governmental Funds $ 8.260 19.906 237.114.672 840.794 1.610) (161.667 1.764 30.033 362.635 1.638) 375.508.170.453 717.055 42.746 1.054.368 (1.407 $ 5.971 176.525 50.421.136 20.322 479 (73.Public Welfare Trust Fund $ 173.672 19.246.983 1.129.546) 536.873 262.195 479 1.465 50.256 110.328 1.351.493 52.367 542 1.746 3.649.014.077 42.465 (1.306.247.000 112.478 110.406 (107.586 2.880 1.030 2.464 6.198.030 62.159 9.404 2.965.600 24 $ 1.893 Nonmajor Governmental Funds $ 1.333 4.642 2.807 122.372 623.326 39 .560.525 45.377 1.951 1.000 112.610) 668.242 1.790) (74.568) (406.508 664.427.397) (74.969.387 6.147 367.136 20.366 313.782 183.699 5.

a capital lease arrangement is considered a source of financing. the change in the balance of inventories is expensed. Long-term debt principal repayment is an expenditure in the governmental funds. In the Statement of Activities.606 3.746) 44.407 (10. Capital lease payments Compensated absences payments Other post-employment benefit payments Claims and judgments Other debt payments Change in Net Assets of Governmental Activities The Notes to the Financial Statements are an integral part of this statement. 2010 (Amounts in Thousands) Net Change in Fund Balances for Governmental Funds Governmental funds report capital outlay as expenditures. whereas in the governmental funds.610 74.656 (10. but in the Statement of Activities such interfund activity is eliminated. AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30. they either increase or decrease long-term liabilities reported on the Statement of Net Assets and have been eliminated from the Statement of Activities. only the gain (loss) on the sale of assets is reported. such as insurance and information technology. Internal service funds are used by management to charge the costs of certain activities.231 (126.798) 12. In the governmental funds.248 1. whereas in the governmental funds. the lease obligation is reported as a liability.894) $375. EXPENDITURES. the cost of those assets is allocated over their estimated useful lives as depreciation expense.885 52. but the repayment reduces long-term debt in the Statement of Net Assets. This is the amount by which capital outlays exceeded depreciation in the current period.508 (94. 5. Bond proceeds Bond premium Repayment of bond principal Current refunding to bondholders Payments to Refunded Bond Escrow Agent Other debt proceeds Repayment of other debt principal Accrued interest (222. Capital Outlay Depreciation Expense 446.490) 371. However. Some capital additions were financed through capital leases. The net revenue (expense) of the internal service funds is reported with governmental activities. Capital assets reassigned to internal service funds from the general government are reported in internal service funds as transfers in.570 (75. the change in the balance of inventories is adjusted to reserved fund balance.418) 6. but in the statement of net assets. in the Statement of Activities. the proceeds from the sale increase financial resources. the change in net assets differs from the change in fund balance by the cost of the assets sold.333 (2. Thus.112) $533.579 (12) 40 .605) Certain expenditures are reported in the funds. However.STATE OF ALABAMA RECONCILIATION OF THE STATEMENT OF REVENUES.322) 2.030) (20.415 (62.080 In the Statement of Activities.136) 166 6.944 (77. to individual funds. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.

41 .

052 $ 28.141 60.077 965.337 73.816 48.329 20.098 258.864 1. 42 .265 386.995 7.157 58 1.Expendable Permanent .641 32.254 56.308 2.706 2.051 4.Non-expendable Debt Service Capital Projects Unrestricted TOTAL NET ASSETS Business-type Activities – Ente rprise Funds Alcoholic State Alabama Beverage Port College Control Authority System Board Nonmajor Enterprise Funds $ 131.767 16. Net of Related Debt Restricted for: Permanent .300 90 4.596 2.935 744.825 (152.510) (13.806) (152.040 681 7.970 305.780 178 283.303 46.806) 3.091 114.019 0 136.392. Net of Accumulated Depreciation Capital Assets Not Depreciated Total Noncurrent Assets TOTAL ASSETS LIABILITIES Current Liabilities Warrants Payable Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Interest Payable Due to Other Governments Claims Payable Unearned Revenue Funds Held in Escrow Compensated Absences Securities Lending Obligation Notes and Capital Leases Payable Revenue Bonds Payable Total Current Liabilities Noncurrent Liabilities Claims Payable Unearned Revenue.861 82.STATE OF ALABAMA STATEMENT OF NET ASSETS Proprietary Funds September 30.441 $ 11.316 269.475 142.740 1.411 414.559 14.220 1.570 9.630 5.244 553.688 2.426 30.905 2.671 75 3 288.689 731.268 25.076 283. Short-term Due from Other Funds Due from Component Units Accounts Receivable Due from Other Governments Interest and Dividends Receivable Securities Lending Collateral Inventory Other Current Assets Total Current Assets Noncurrent Assets Investments.700 401 11 4.188 17.664 8.943 6.404 104 47 11 822 300 12.975 504.872 931 4.246 604.957 $ 275.740 17.900 4.083 666.891 3.860 49 4. 2010 (Amounts in Thousands) Unemployment Compensation Trust ASSETS Current Assets Cash and Cash Equivalents Investments.563 6.095 78.594 887.133 $ $ $ $ $ The Notes to the Financial Statements are an integral part of this statement.823 18.244 11.024 5.939 6.616 65.214 26. Long-term Due From Other Funds.079 540 7.725 9.459) 28 641 26 142 3 3.825 0 288.383 8.501 5.214 57.825 1. Noncurrent Compensated Absences Other Post-employment Benefits Notes and Capital Leases Payable Revenue Bonds Payable Other Long-term Liabilities Total Noncurent Liabilities TOTAL LIABILITIES NET ASSETS Invested in Capital Assets.345 135.506 426.107 3 136.511 7.552 11.198 356.765 15.952 19 95 1.565 27.336 18.019 $ 7.525 27.260 47 525 1.598 317.485 84.622 11.051 (17.450 7. Noncurrent Due From Component Unit.806 69 3. Noncurrent Other Noncurrent Assets Capital Assets.545 2.

953 11.267 57.178 881.943 6.484 48.655 32.338.249 9.228 40.463 42.237 2.060 8.745 17.420 158.703 5.315 322 2.831 4.286 1.528 7.423 316.428 150.827 15.640 1.246 69 7.342 $ $ 43 .443 688.499 9.079 540 24.493 $ 47.040 284.381 78.629 144.923 615.228 2.669 4.776 9.234 171.970 46.681 48.740 143.499 326 7.452 76.193 1.307 1.154 96 116.304.613 9 1.390 586 2.269 1.366 1.039 17.981 1.904 6.000 521.620 2.426 10.128.030 2.881 157.210.684 41 10.924 143.367 328 7.017 66.515 19.709 199.312 794 44.564.109 20.916 774.079 779 126.765 23.985 2.548 30.537 6.Governmental Ac tivities Total Enterprise Funds Internal Service Funds $ 454.823 85.057 142 1.934 931 1.173 1.

542 26.749) 13.938 (9. Wages.226 317.562) 1.414 15.845 $ Nonmajor Enterprise Funds 33. EXPENSES.987 27.641 16.677 $ Alcoholic Beverage Control Board 248.043 (17.806 $ 10.930) 5.827 254.366 893.008 402.641 $ 391.001 (5.755 (9.598 (9.845 248.541) (22.147) 53 (54) (7.570 (914.000 (12.156) 484 200 372 22.265) (152.471 621 48.157 880.677 179.619 2.441) (2.035) 5.441 59.328) 48.635 825 487.173 6.570 1.570 7.585) 325.045) 14.385 3.882 11.STATE OF ALABAMA STATEMENT OF REVENUES.458) 26.211 102 361.393 33.632 (126.981 9.806) $ 102 (1. and Operating Expenses Interest Depreciation Claims and Benefits Operations and Maintenance General and Administrative Other Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Taxes Grants Investment Income Other Nonoperating Revenues Interest Expense Other Nonoperating Expenses Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers Capital Contributions Contributions to Endowments Special Items Transfers In Transfers Out Increase (Decrease) in Net Assets Total Net Assets.316. AND CHANGES IN NET ASSETS Proprietary Funds For the Fiscal Year Ended September 30.005 (700.316.488) 787. 2010 (Amounts in Thousands) Unemployment Compensation Trust OPERATING REVENUES Charges for Goods and Services Premiums and Contributions Rents and Leases Total Operating Revenues OPERATING EXPENSES Salaries.459) $ 3.852 264 21.460 106.463) (13.128) 384.066 379 (13.949 143.901 119 47 197 (91) 4.440 965.558 250 4.288 11.366) (130.983 176.996) (10. 2009. and Benefits Utilities and Communications Professional Services Supplies.133 The Notes to the Financial Statements are an integral part of this statement.860) (4. 44 .874 4.008 $ Business-type Activities – Ente rprise Funds State Port Authority 106. September 30. 2010 $ $ 0 402.222 10.566 105. Materials.277) (4.981 11. as Restated Total Net Assets.765 784.870 (315.687) (2.446 182.947 3.549 2.222 14.640) (5.460 $ Alabama College System 179.368 9 45.314 1.139 (6.511 72. October 1.

346 139.337.162 536.456) 33.231 5.844 17.993 2.767 11.716 40.479 621 985.947) 14.763 157.342 45 .199.505) 1.390 (164) 12.204 416.572 34.618 22.393 64.579 144.938 59.304 $ Internal Service Funds 68.Governmental Ac tivities Total Enterprise Funds $ 568.942 1.641 16.051 412 (102) (145) 5.913 142.057 4.616.601.820 $ 1.048 18.037 (429.128.459 1.109 (2.645 30.353 10.419) 31.698 (32.176.760 (1.674 6.731) (28.566 154.818 384.793 (12.147) 367.809 102 (9.315 $ 84 5.893) 1.548) (71.187.768 52.120 11.300 2.837 2.993 3.

916 27.398) 132.033 27.006 28.860 $ 131. 46 .865 1.028 (203. Fines.404 The Notes to the Financial Statements are an integral part of this statement. Construct.441) (1.041.198) (9.501 246.770) 19.423) 101 (490) (71) (91) (551) 608 608 123. October 1.436) 5.416 (164.646) (510. & Improve Capital Assets Principal Paid on Revenue Bonds & Other Capital Debt Interest Paid on Revenue Bonds & Other Capital Debt Bond Issuance Cost Net Cash Provided by (Used in) Capital and Related Financing Activities Cash Flows From Investing Activities Receipts from Sales & Maturities of Investments Receipts from Interest & Dividends on Investments & Loans Purchase of Investments Collateral on interest rate swap Net Cash Provided By (Used In) Investing Activities Net Increase (Decrease) In Cash and Cash Equivalents Cash Balance as Restated.781 340.472 (57.361) (253) (62.678 8.495) 0 254.044) (1.689) (9.860 $ 7.052 9.537) (465) (5) 7.345 275.666) (20.STATE OF ALABAMA STATEMENT OF CASH FLOWS Proprietary Funds For the Fiscal Year Ended September 30.689) 0 15.036) 18 (1.890) (10.937) 26.742 $ 148.191 69 28.328) (487.735) (30.185 14.100 5.779) (46. as Reported on Balance Sheet Business-type Activities – Ente rprise Funds Alcoholic State Alabama Beverage Port College Control Authority System Board $ 105.220) 2.105) $ 245.841 7.450) (12.052) (9.565 5.758 (30.049) (1.844 275. 2009 Cash Balance.419 $ 401.327 7.907 (181) 595.559 $ 61.099 1.755 (6.345 $ 0 14.325.768) (1.238 8 309 (23. September 30.139 (1.480) (7.053 $ Nonmajor Enterprise Funds 52.468 148.813 23 15.260 $ 47 (104) (57) (2.336) (16.746 718 6.489 1.089 242 (79.809) (25.182 131.445) (9.282 11.507 445 (10.804) 23.165) (14. Penalties.878) 14. 2010 Add: Warrants Payable Cash and Cash Equivalents.281 (50. & Similar Fees Payments for Interfund Services Payments for Other Operating Activities Payments for Claims Net Cash Provided by (Used In) Operating Activities Cash Flows from Noncapital Financing Activities: Receipts from Noncapital Financing Grants & Donations Transfers from Other Funds for Noncapital Financing Payments for Noncapital Financing Grants & Donations Transfers to Other Funds for Noncapital Financing Net Cash Provided By (Used In) Noncapital Financing Activities Cash Flows From Capital & Related Financing Activities: Proceeds from Revenue Bonds & Other Capital Debt Receipts from Capital Grants & Contributions Receipts from Sale of Capital Assets & Insurance Proceeds Payments to Acquire.559 7. 2010 (Amounts in Thousands) Unemployment Compensation Trust Cash Flows from Operating Activities: Receipts from Customer & User Charges Receipts from Interfund Services Receipts from Operating Grants Receipts from Interfund Reimbursements Receipts from Other Operating Activities Payments for Goods Held for Resale Payments for Other Goods & Services Payments for Employees Services Payments for Taxes.404 11.826 5.129) (21.543) (143.111 (10) (6.135 28.

359 69 $ 454.963) (62.289 31 1.125 315 (4.Governmental Ac tivities Total Enterprise Funds $ 953.253) (13.439) (168) (5.325.630) 6.432 164.307 (13.718 (148) 9.140) (31.780) 29.233) (29.043) (32.861) (1.777) 565.204 290.238 (57.044) (1.379) (564.009 46.428 $ 176.752 106.872) (20..468 4.119 (111.149) 68.261) (253) (89.052 51.892 (187.220) 8.155 454.773) (145.915 6.570 34.550) (6.326) $ Internal Service Funds 35.964 3.190.686) (27.703 2.888 (214.795) (296.443) (4.196) (7.. 47 .064) 79.558 260.747) (23.267 Continued on next page.454) (32.945 322 47.398) (320.352 (6.583) (1.536 341.243 7.133 32.634) (35.878 9.

and Financing Activities Increase (Decrease): Transfers and Donations of Capital Assets Capital Assets Acquired by Capital Lease or Other Debt Disposals. and Other Reductions to Capital Asset Revenue Bond Amortizations and Other Debt Adjustments Interest Accruals and Other Adjustments Unrealized Gains (Losses) in Investment Fair Value Transfers In (Out) 608 - 2.742 $ (14.567 (101) - The Notes to the Financial Statements are an integral part of this statement.288 15.562) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Due from Other Funds Accounts Receivable (1.380) 2.047.051 Nonoperating Expenses Total Adjustments 1.737) 12.463 22.223 (510.127 Net Cash Provided (Used) by Operating Activities $ 132.546 31. Write-offs.224 11. Capital.209 26.105) $ 1 (323) (513) (63) (2.085) (1. 48 .288) (746) 27.STATE OF ALABAMA STATEMENT OF CASH FLOWS (Continued from Previous Page) Proprietary Funds For the Fiscal Year Ended September 30.576 Due to Other Governments Claims Payable Amounts Held Pending Distribution Unearned Revenue Funds Held in Escrow Compensated Absences Other Post-employment Benefits Other Liabilities Investment Income Operating Interest Expense Depreciation Amortization Expense Nonoperating Revenues 794.446 (874) (750) 33.628) (715) (2.994) (810) 13.128) 785 111 (7.419 Noncash Investing.674) - 303 (1.654 7.765 (1.542 3.441 279 3.949 153.156 - 700 (29.565 Business-type Activities – Ente rprise Funds State Port Authority Alabama College System Alcoholic Beverage Control Board Nonmajor Enterprise Funds $ 825 $ (700.500) Inventory Other Assets Capital Assets Salaries Payable Due to Other Funds Due to Component Units Accounts Payable 254. 2010 (Amounts in Thousands) Unemployment Compensation Trust Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ (914.053 $ 8 9 (15) (8) (95) 48 197 12 (1) 24 264 4.328) $ (5.211 4.156) $ 2.799 802 6 (72) 2.393 190.917 $ 23.

398 802 197 12.906 1.091) (524) (1.306 56 3.942 279 967.001) (613) (167) (126) 349 (381) 192 (144) 1.458 (868) (73) 2.Governmental Ac tivities Total Enterprise Funds Internal Service Funds $ (1.297) 1.605) (656) 49 .155) 608 2.558 303 700 (31.505 6.570) (458) (1.496) 64.844 117 (20) 9.856 1.343 (5.032 14.456) $ (2.947) 9 (17.296.240 5.130 $ (320.567 5.974) (71) (3.326) $ (1.566 (1.089) (810) 259.248) (1.175 (296) 116 (66) (1.221 1.616.156 2.

981 2.687 3.117 245.STATE OF ALABAMA STATEMENT OF FIDUCIARY NET ASSETS Fiduciary Funds September 30.342 758.924 $ 27.369 $ 0 The Notes to the Financial Statements are an integral part of this statement.312 2.109 1. Treasury Securities U.924 $ 1.535 $ PrivatePurpose Trust Funds 5.742 202 68.369 1.939.462 79.239 85.S.123.420 41.431 3.729.390 6.539 619 4.863 5 49.570 2.912 999 1.023 2.190 710.079 840 540 28.738 96.393.591 27. 2010 (Amounts in Thousands) Pension and Other Employee Benefit Trust Funds ASSETS Cash and Cash Equivalents Investments Time Deposits U.677 267 999 50 51 38.117 216.301 890.860 606.611 $ 302 22 34 36.384.288 4.438 3.620 32.810 103 129 26 2.771 $ Agency Funds 180.663 1.112 2. 50 .327 331.556 95.819.441 15.402 $ 22.737.792 4.203.554 11.736 2.160 2 3.651.563 7.S.699 3.740 8.142.313 1.144 7.348.158 4.312 3.094. Agency Securities State and Local Government Securities Mortgage Backed Securities Corporate Stocks Corporate Bonds Real Estate Commercial Paper International Stocks International Bonds Mutual and Money Market Funds Commingled Funds Receivables Due from Other Funds Employer Contributions Receivable Member Contributions Receivable Investment Sales Receivable Accounts Receivable Interest and Dividends Receivable Securities Lending Collateral Other Assets Capital Assets.231 151.180.729.578 132 157.368 29.207 41.142.203.567 21 356 2. Net of Accumulated Depreciation Capital Assets Not Depreciated TOTAL ASSETS LIABILITIES Warrants Payable Investment Purchases Payable Salaries Payable Due to Other Funds Accounts Payable Due to Other Governments Claims Payable Securities Lending Obligation Deferred Revenue Amounts Held in Custody for Others Compensated Absences Other Post-employment Benefits TOTAL LIABILITIES NET ASSETS Held in Trust for Beneficiaries Held in Trust for Pension and Other Employee Benefits TOTAL NET ASSETS $ 41.120 3.204 245.591 $ 30.

STATE OF ALABAMA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS Fiduciary Funds For the Fiscal Year Ended September 30.257 $ 231.697 1.164 7. PrivatePurpose Trust Funds $ 755.048.744.601.345.142.357 4.070 26.387 320.540 53 104.147 1. as Restated Net Assets Held in Trust for Beneficiaries.834 3.810 35. 2010 The Notes to the Financial Statements are an integral part of this statement.667 167 104.362.069.134.088 909.966 $ 27.753 2.392.082 8.729.053 8.477 19.431 7.706 77.684 259 259 335. 2009.403 1. October 1.336 1 3.383 7.807 34.088 231.924 $ 1. September 30. 2010 (Amounts in Thousands) Pension and Other Employee Benefit Trust Funds ADDITIONS Contributions: Plan members Employer Medicare Part D Retiree Drug Subsidy Total Contributions Investment Earnings Investment Interest and Dividends Net Increase (Decrease) in Fair Value of Investments Securities Lending Income Total Investment Earnings Less: Investment Expense Securities Lending Interest and Fees Net Investment Income Other Additions Licenses and Fees Miscellaneous Total Other Additions Total Additions DEDUCTIONS Benefit Payments and Refunds Administrative Expense Transfers Out Total Deductions Changes in Net Assets Net Assets Held in Trust for Beneficiaries.369 51 .997 51 328.193 4.487 3.432.084.862 2.743 1.959 2.660.537 26.

972) 16.988 $ Housing Finance Authority $ 3.684 10.794 2.377 36.383 18.662 62.543 $ 4.104 15.625 25. Notes.180 2.582.509 55.018 3.997 781.788 (1.272 109 18.111 652 608 100 27.230 2.774 15.444.057 15 321.590 372.097 70.881 89.482 216.STATE OF ALABAMA STATEMENT OF NET ASSETS Component Units September 30.393.891 553.520 337.076 78 3.006 754. and Loans Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets Capital Assets.032 217 510.262 652 18.545 295.248 277.093 109 22.Non-expendable Debt Service Other Purposes Unrestricted TOTAL NET ASSETS $ 631.851 406 7 1.889 436 70.410 1. 2010 (Amounts in Thousands) Public School and College Authority ASSETS Cash and Cash Equivalents Investments Due from Primary Government Due from Component Units Accounts Receivable Due from Other Governments Interest and Dividends Receivable Mortgages.661 458.391 10.679.975.415 232.069 15 709.329 58.007 285.986. Net of Accumulated Depreciation Capital Assets Not Depreciated Deferred Outflows TOTAL ASSETS LIABILITIES Warrants Payable Salaries Payable Due to Primary Government Due to Component Units Accounts Payable Interest Payable Due to Other Governments Securities Lending Obligation Unearned Revenue Amounts Held in Custody for Others Noncurrent Liabilities: Due Within One Year Due In More Than One Year TOTAL LIABILITIES NET ASSETS Invested in Capital Assets.600 71.491 3 38.651 230.599.908 $ Water Pollution Control Authority 84.238.541.800 $ University of Alabama 371.636.857 6.284 6.897 232.289 2 2.168 1.012 9.523.055 1.084.823 Mental Health 96.432 $ $ $ The Notes to the Financial Statements are an integral part of this statement.530 13.527 87.958 20.524 230.626 7.788 703.002 1 173. Net of Related Debt Restricted for: Permanent .960 747 13.153 321.155.960 303.555 1.632 71.481 1.392 574.192 288.812 436 6.169 563 22.236 2.053 3.Expendable Permanent .760) $ (1.889 2.829 24. 52 .541 388.219 413 107.410 2.207 38.335 3 53.169 2.049 139.606 1.

403 202.812 310.618 23.815.342 28.463 18 194 420 223 213 76.746 55.450 1.603.739 114.375 291.860 573 2.468 18.795 35.768 180.658 871 224.081 71.637 71.215 31.018 2.112 46.742 71.820 52.645 $ 1.783 14.181 19.856 4.723 7.887 531.656 40.697 758.609 2.850 28.293 491.602 71.600 565.293 688.760 4.103 113.860 9.519 120.173 198.205.749 2.096 748 4 1.235 4.249 593.215 $ State Employees' Health Insurance 7.697 4.510 23.931 $ Public Education Employees' Health Insur 4.500 14.578 196.872 2.948 13 213 3.816 90.990 2.261 237.930 164.959 566.441 46.069 16.159 2.699 $ 1.225 3 385 550 41 5.171 15.010 498.795 632.696 24.224 8.937 290.060.171 1.411 97.552 432.862 792.124 140.301 616.656 6.033 14.634 269.111 4.277 1.041 809 16.610 679.701 26.296 108.379 9.240 81.253 $ University of South Alabama 177.593 241.621 $ 6.325 544.907 80.296 1.405 4.859.035.696.505 822.075.821 157.006 5.066 358.698.Auburn University $ 70.440 118.210.758.224 146.420 $ $ $ 53 .637.141.380 287 4.516 211.334 453.302 1.460.310.356 4.721 5.324 101.936 125.156.703 9.973 900.370 2.515.216 1.306 23.295 Total Component Units $ 2.296 36.049.339 $ Nonmajor Component Units 627.078 119.990 18.445 197.483 2.860 21.450 5.230 718.276 89.781 13.261 1.554 667.891 1 57.219 23.747 1.502 6.522 919.440 210.742 34.374 783 78.

September 30.212 9.848 Miscellaneous Contributions to Permanent Funds and Endowments Payments from State of Alabama 171.097) 28.047 10.822 Extraordinary Items Total General Revenues.765) 48.207 Water Pollution Control Authority $ 38.883 303.320 University of Alabama $ 3.331 $ 4.548 3.468 849. 54 .497 20.668 37.815 58.298.389 308 308 (380.228 2. 2010 (164.427) (1.779 321.784. and Transfers 215.405 Housing Finance Authority $ 74.713 48.975.624 (791.713 (25.196 48.132 45.389 3. 2009.389 300.934 371.467 Expenses Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues Net (Expense) Revenue Mental Health $ 865.811.057 6.168 219.103 17 52. as Restated Net Assets.972) 7.413 695 10.174 265.319 774.892 2.087 83.833) General Revenues: Grants and Contributions Not Restricted to Specific Programs Investment Earnings 43.101 3.668 62.494) 19.432 $ $ $ The Notes to the Financial Statements are an integral part of this statement.016 29.155.079. October 1.897 62.634 (361.936.545) $ (1.670 Change in Net Assets Net Assets.492 73.227 790.362 22.847 232.089 732.888 477. Special Items. 2010 (Amounts in Thousands) Public School and College Authority $ 380.STATE OF ALABAMA STATEMENT OF ACTIVITIES Component Units For the Fiscal Year Ended September 30.050 174.

218.727.548 502.360.598 666.229 Nonmajor Component Units $ 1.907 29.697 (160.263.023 23.620 37.666 47.967 2.194.403 35.131 Total Component Units $ 8.225 20.959 1 27.704 18.267 34.427) 4.059) 763.089 2.467 4 412.173 147.269 State Employees' Health Insurance $ 439.714) 44.659 University of South Alabama $ 608.430 27.208 645.009) 460.455 91.196 Public Education Employees' Health Insur $ 789.260 (26.211 96.136.698.909 107.729 105.490.018 7.637.433 204.696 5.826 1.457.261 270.066 (2.210 308.292 469.192 $ 1.302 1.561 445.538 6.704 (340.272 414.Auburn University $ 827.777 21.702 174.797 166 257.205.099.137 (139.850 173.716 $ 1.905 2 7.749 6.959 4.549 24.260 679.671 $ 6.206) 50.504 120.955 612.104 454.420 795.990 7.420 $ $ $ 55 .468 295 295 (25.962) 411.085.154 3.255 5 763.806.211 1.769 8 460.

............................ 86 G.................................... 71 C....... 118 D.................DEFERRED COMPENSATION ................ Mortgage-Backed Securities.............................................................. 67 F....................................................................................................................................................... 57 B............................................... 131 B................... and Financial Statement Presentation ........... Public Education Employees' Health Insurance ...................................................................... Fiscal Year ................................................ Funding Policy ............ Derivatives .............................................................................................................................................................................................................................................................................. 71 NOTE 3 ......................................... 95 D........................................... 127 B............................. 117 C.................... 126 NOTE 8 ...... State Employee Injury Compensation Trust Fund......... State Employees' Insurance Plan..........SUBSEQUENT EVENTS .... 126 NOTE 9 ................. Summary of Significant Accounting Policies.................... Interfund Balances .......................................................... Restatements.................. Litigation .......... Alabama State Port Authority ....................................................... Liabilities........ Conduit Debt ............................................................................................................................................................RELATED PARTY TRANSACTIONS.........................................................................................ASSETS ................................................................................................................................................................................................................... 115 A.................................................................................................................................................. 112 C.............. 128 NOTE 10 .................... 94 B.......................................................................................................................................................STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30..................................................................................................................................................................................................................................................................................................................................................................................... 131 NOTE 12 ............................................ 132 NOTE 14 ............................................................................................................... 82 E....................................................................................................................................................................................................... 70 NOTE 2 ...... 134 56 ..................................................................... Plan Descriptions ......................... Investment Risks ................................................................................................................................................................................................................................ 73 C.............. Cash Deposits.............................................................................................................................................. 72 B......................................................................... Basis of Accounting............. 113 D............. Measurement Focus............................................................................................ 67 E....................................................................................... Securities Lending...................... 70 G........FUND BALANCES/NET ASSETS .................. General Liability Trust Fund .................................................................................................................................................................................................................................................................................................... Proprietary Fund Operating Revenues and Expenses ........................................................................ 72 A................................. 65 D....................................................................................... Balances with Component Units ................................ 71 A................................. Alabama Health Insurance Plan........................... The State Insurance Fund........CONTINGENCIES ................................................................................................................ 2010 NOTE 1 ... 114 NOTE 6 ......... 131 NOTE 11 ....................................... 121 G....................... Fund Balance/Net Assets Deficits ............................. Capital Assets ............................................................................................................................................................................................................................. 119 E..........................LIABILITIES .............. 122 A................................................................................... Long-term Debt................................. Restricted Net Assets ................................................................................................................ 132 C.. 131 A................................................................................................................... 57 A.................... Government-Wide and Fund Financial Statements ........................................................... 111 A................... 95 NOTE 5 ..................... 89 NOTE 4 ................. 94 A.............. Jointly Governed Organizations ....................................................................................................................................................RETIREMENT PLANS..................................................................................... 122 B............................................ Tobacco Settlement .......................JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS...................................... 85 F................. 111 B..POSTEMPLOYMENT HEALTH BENEFITS........................DONOR-RESTRICTED ENDOWMENTS ........................................................INTERFUND ACTIVITY AND INTRA-ENTITY BALANCES.........................................................................................................................................................................................................................................................................................RISK MANAGEMENT ................................................................................................................................................................................................................................................ 131 NOTE 13 .......................................... 132 B...................................... 134 NOTE 15 ............................................................................................................................................ Assets...................... and Net Assets and Fund Balances..........................................................................................................................................................................................................................................................................................RELATED ORGANIZATIONS.. 127 A... Investments........................................ 76 D....... 116 B..................................................................................................................................................................................................................... 122 NOTE 7 ........................................................................... Balances Between Component Units ..................................................... Reporting Entity .......................................... 64 C............................................................................................................................................................................................................................................. Other Pension Plans......................................................................................................... 128 C.................................................................................................................. Joint Ventures ........................................................ 120 F....................................................... Commitments ............................................................ Interfund Transfers......................................................................................................................................................................................... New Accounting Pronouncements ............................................................................................................................................... Claims and Judgments........................................................................................... 71 B...................................................... Retirement Systems of Alabama .. Grants ........................................ 132 A.............................................................................SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ......................................................................................................... 95 C...

but lack the corporate powers to make them legally separate and are therefore part of the primary government:  Alabama College System Alabama Fire College Alabama Technology Network Athens State University Aviation Hall of Fame Cahawba Advisory Committee Commercial Mobile Radio Service Board Dental Examiners Board Dental Scholarships Awards Board Gorgas Memorial Board Alabama Industrial Development and Training Institute  Marion Military Institute Medical Examiners and Licensure Commission Motor Sports Hall of Fame Optometric Scholarships Awards Board Optometry Board Pharmacy Board Pilotage Commission Podiatry Board School of Fine Arts St. Those marked with a † are currently inactive and had no financial balances or activity in the past fiscal year. Organizations making up the primary government and its component units are summarized in the following paragraphs. educational institutions. 57 . Their boards consist of state officials and specific state revenues are pledged for bond repayment. part of the primary government. Component units are legally separate organizations ("public corporations") for which the primary government is financially accountable. they are blended with and reported as though they are a part of the primary government. Each issues revenue bonds that are limited obligations of the component unit. Generally. Primary Government All state departments. or 2) there is a financial benefit/burden relationship. agencies. State Auditor. The following non-Treasury agencies operate largely independent of the control of the State Comptroller. All references in the financial statements or elsewhere in these notes to the term "primary government" will encompass both the primary government and the blended component units. and State Treasurer. boards. authorities. commissions.NOTE 1 . If the primary government does not control the board. these financial statements present the State of Alabama (the primary government) and its component units. Because of this close relationship.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. the primary government is financially accountable if it appoints a voting majority of the organization's board and it can either 1) impose its will on the organization. The following blended component units were created for the purpose of financing capital expenditures for the State. halls of fame. committees. are part of the primary government. except those listed later as component units. Blended Component Units Blended component units are legally separate but they exist solely to provide services (usually financing) exclusively to the State. 1. elected officials. it may be financially accountable if the organization is fiscally dependent on the State. All agencies and funds that operate from within the State Treasury. Reporting Entity As required by generally accepted accounting principles. Stephens Historical Commission State Port Authority Women's Hall of Fame 2. for financial reporting purposes. and other state organizations (hereafter referred to as "agencies") which are not legally separate are.

STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. but has the added responsibility of operating. fiscal dependency exists at a minimum in the State’s ability to modify the component unit’s budget. complete financial statements may be obtained from the State of Alabama. AL 36130-2602. Discretely Presented Component Units Discretely presented component units are organizations. Montgomery. A five-member board of directors made up of ex officio members governs the Authority. Unless otherwise noted. which are legally separate and do not exist to provide services exclusively to the primary government. Unless otherwise noted. The four members of the Authority are state officials. 2010 Agriculture Markets and Coliseum Authority † Corrections Institution Finance Authority Federal Aid Highway Finance Authority Highway Authority † Industrial Access Road and Bridge Authority † Toll Road. For all other discretely presented component units. Bridge and Tunnel Authority † Judicial Building Authority Alabama Trade School and Junior College Authority † Public Health Care Authority Gulf State Park Authority† The Building Renovation Finance Authority has the same characteristics as those in the previous paragraph. The State has been determined to be financially accountable for each organization because it can impose its will on each organization. Other manifestations of financial accountability may also exist. construct. and renting buildings in the capitol complex that are occupied by state departments. financial accountability for each organization described below exists at least in the ability of the State to modify the component unit's budget. Montgomery. The Alabama State Parking Deck Authority has the authority to sell bonds. improves. operate. and equip laboratories and other facilities for the State Department of Forensic Sciences. the address at which such financial statements can be obtained is included in the following paragraphs describing each component unit. Most of the discretely presented component units have boards that are controlled by the primary government through the appointment of a majority of the board members. Audited financial statements of the Authority may be obtained from the Alabama Department of Environmental Management. The six members of the Corporation are state officials. The Educational Television Foundation Authority exists to receive. RSA Union Building. as part of the primary government. AL 36130. maintaining. the organization has been determined to be fiscally dependent on the State. the Authority provides financing flexibility that the Commission. The Authority has remained inactive since the enabling legislation was passed. would not otherwise have. The Forensic Science Bond Authority has the power to acquire. 1400 Coliseum Boulevard. The Water Pollution Control Authority operates a revolving loan fund to aid municipalities in financing the construction of wastewater treatment facilities. Suite 206. The Authority had no financial activity in the past fiscal year. invest. When audited financial statements for a discretely presented component unit exist. For discretely presented component units whose boards are not controlled by the State. 3. 58 . and expend donated moneys for the purpose of promoting the growth and development of educational television. The State Parks System Improvement Corporation renovates. The Authority consists of thirteen members who are appointed by the Alabama Public Television Commission. maintains. Financial information for discretely presented component units is segregated on the financial statements and the notes in the "Component Unit" columns in order to emphasize that they are legally separate. and rent space in a parking deck on a block in the capitol complex. Providing services to the citizens of the state is not considered the same as providing services to the primary government institution. As a non-profit public corporation. maintain. and constructs assets belonging to the State Parks System. Office of State Comptroller. Other manifestations of fiscal dependency may also exist.

A five-member board of directors made up of ex officio members governs the Authority. The Public Education Employees’ Health Insurance Board operates a health insurance plan for employees of public school systems. except for the University of Alabama. there are other legally separate. and The University of Alabama Huntsville Foundation. These organizations generally exist to raise funds to benefit a specific university. and is included in all amounts reported for Mental Health. Audited financial statements of the Authority may be obtained from the Alabama Department of Environmental Management. the Alabama State University Trust for Educational Excellence is a component unit. Although the university may not control the timing or amount of receipts from these foundations. The State Industrial Development Authority issues bonds and uses the proceeds to make grants to local industrial development boards. Montgomery. UAB Research Foundation. The Alabama Shakespeare Festival. The State does not appoint a majority of the Board but the Board is fiscally dependent on the State. The Governor of the State and the commissioner of the Department constitute a public corporation and are advised by a sixteen-member board of trustees. and Triton Health Systems.L. Those colleges are: Alabama A&M University. are appointed by the State. The Alabama Education Foundation encourages donations of money for local school systems and invests the money for the benefit of each local system. AL 36130. tax exempt organizations that are discretely presented component units of the universities. the University’s component units are The Auburn University Foundation. The Foundation is governed by a twelve-member board that is made up of state officials and other individuals appointed by state authorities. The University of Alabama board of trustees is not controlled by the State. universities. The Tennessee Valley Exhibit Commission was created to operate a public exhibit based primarily on the history of and ongoing activities of the Tennessee Valley Authority and various other public entities involved in energy research and development. Audited financial statements of the board may be obtained at 201 South Union Street. 1400 Coliseum Boulevard.C.The Alabama Drinking Water Finance Authority operates a revolving loan fund to aid local governments in financing the construction of sanitary drinking water facilities. the majority of resources that the foundations hold and invest are restricted to benefit the activities of the universities by the donors. University of North Alabama. For the University of Alabama. but the University is subject to budgetary control by the State. The State does not appoint a majority of the Board but the Board is fiscally dependent on the State. The boards of the four-year colleges of the State. state junior colleges. AL 36104-0001. Auburn University. AL 36104. The commissioner and ten of the board members are appointed at the discretion of the Governor. Montgomery. The 1831 Foundation. University of Montevallo. Montgomery. therefore. The Tigers Unlimited Foundation. The University of Alabama Law School Foundation. All members of the Authority are elected or appointed state officials. The Commission consists of three members who are appointed by the Governor. the University’s discretely presented component units are The National Alumni Association of The University of Alabama. the Southern Research Institute. Because the resources are held for the benefit of the universities. Alabama State University. 201 South Union Street. Audited financial statements of the board may be obtained at Suite 200. University of West Alabama. The Department of Mental Health provides mental health services to the people of Alabama. The Crime Victims Compensation Commission awards compensation for economic losses arising from criminal conduct and works to change laws to benefit crime victims. and related education administrative employees. University of South Alabama. colleges. are included in all amounts reported for the University. The building which housed the exhibit has been sold and the board is no longer actively operating but it has not been legally dissolved by the legislature. The State Employees’ Insurance Board operates health insurance plans for state employees and for employees of local governments. The Supercomputer Authority operates a supercomputer for the use of educational and governmental research institutions. For Auburn University. Inc. For Alabama State University. the foundations are considered the discretely presented component units of the universities and are included in each of the universities’ financial statements. is therefore a blended component unit of the Department. and individuals. and Troy University. The Capstone Foundation. are blended component units of the University of Alabama.. L. The sixteen-member Commission is appointed by the Governor. The Mental Health Finance Authority exists to provide financing services to the Department. the Crimson Tide Foundation. private businesses. In addition to the blended component units. The eleven directors of the Authority are appointed by state officials. and 59 . Jacksonville State University.

is a component unit of the University of Montevallo and is included in the amount reported for Montevallo. The Authority sells bonds and uses the proceeds to make it possible for lenders to make low interest rate mortgages available to low income home buyers. but the legislature has historically limited the Authority's ability to issue bonds. Box 369. The Governor. For the University of North Alabama. Vice President for Financial Affairs and Administration. Audited financial statements may be obtained from the Commission at the Alabama Space and Rocket Center. The Space Science Exhibit Commission operates the Alabama Space and Rocket Center along with the Space Camp. Montgomery. Director of Financial Reporting. Fourteen of the eighteen members of the commission are appointed by the Governor. The Higher Education Loan Corporation provides Alabama lending institutions with a secondary market for student loans made under the federal guaranteed student loan program. Office of the Vice President for Business and Finance.O. Complete financial statements for the universities which are audited by other auditors may be obtained at the following addresses: Chief Fiscal Officer. The board of directors is composed of the chief executive officers of the member institutions. is a component unit of AIDB and is included in the amount reported. Mobile. The Commission operates a memorial park centered near the historic battleship. The fourteen-member board of directors of the Housing Finance Authority is appointed by various state officials. AL 36104. The Alabama Institute for the Deaf and Blind (AIDB) is an educational institution governed by a fourteen-member board.O. AL 36849-5161.O. University of South Alabama. Auburn University. Alabama A&M University. Suite 408. The primary government does not affect the Authority's budget.S. O. the University of South Alabama Health Services Foundation. P. The Alabama Institute of Deaf and Blind Foundation. P. Huntsville. Alabama Battleship Commission consists of eighteen members appointed by the Governor. the finance director. Comptroller. 60 . The Marine Environmental Sciences Consortium provides educational programs in marine sciences for the graduate and undergraduate level and conducts research in marine sciences. Box 870136. the University of North Alabama Foundation is a component unit and is included in the amount reported for North Alabama. Business Office AD 380. Montgomery. The University of South Alabama has three component units. Jackson Street. Vice-President for Financial Affairs. University of Alabama at Birmingham. P. The University of Montevallo Foundation. The Troy University Foundation is a component unit of Troy University. and the state superintendent of education constitute the Authority. Birmingham. Audited financial statements may be obtained from the Authority. Box 302000. Six of the seven members of the Authority are state officials. AB 1030. Box 230909. Vice President for Fiscal Affairs. 915 S. AL 36688-0002. 1530 3rd Avenue South. 301 Sparkman Drive. and the USA Research and Technology Corporation. AL 35762. The Alabama Public School and College Authority issues bonds and uses the proceeds to fund capital construction projects in the local school systems. The University of Alabama in Huntsville. University of Alabama at Tuscaloosa. Office of Accounting and Financial Reporting. Montevallo. Tuscaloosa. Normal. Alabama State University. Inc. 321 Ingram Hall. AL 36130-2000. University of Montevallo. Auburn University. Box 070015. Jacksonville State University’s component unit is Jacksonville State University Foundation.O. Inc. P. The U. the University of South Alabama Foundation. AL 35115-6000. Part of the Commission's budget is subject to State control. 2000 Interstate Park Drive. The Alabama Historic Ironworks Commission operates an historic park based on one of the State's early ironworks.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. Inc. Audited financial statements may be obtained from the Alabama Commission on Higher Education. twelve of whom are appointed by the Governor. P. AL 35899. AL 35487-0136. The Tombigbee Valley Development Authority consists of six state officials who oversee the development of improvements along the Tombigbee River. Huntsville. AL 352940110.S. 2010 Auburn Alumni Association. Station 6061. All eighteen members of the Commission are appointed by the Governor and part of the Commission's budget is subject to State approval. AL 36123-0909. Montgomery. AL 35807-7015. The Coosa Valley Development Authority oversees developments and improvements along the Coosa River.

and objects. The Authority can issue revenue bonds and pledge part of the proceeds of the settlement of the tobacco industry litigation to finance the bonds. flood control and prevention. The seven-member board is made up of three state officials and four other persons appointed by the State. restoring. The Authority is included in the reporting entity because the State has some limited budgetary influence and the State provides the majority of the Authority's funding. Four of the six members of the Authority are state officials. The Public Historical Sites and Parks Improvement Corporation renovates. and constructs State owned public historical sites and parks not under the jurisdiction of the Department of Conservation and Natural Resources as well as non-State owned public historical sites and parks. The Choctawhatchee Pea and Yellow Rivers Watershed Management Authority develops and executes plans for water conservation and usage. The Authority is made up of three state officials and is authorized to issue bonds to fulfill the State's financial commitments. The Red Mountain Greenway and Recreational Area Commission is responsible for preserving. The Historic Blakeley Authority preserves the historic site of the town of Blakeley and operates a park on the site. The directors of the Authority are elected by local residents. maintains. The Music Hall of Fame operates a public exhibit displaying music memorabilia in honor of Alabamians who have made a lasting contribution to music. improves. The Employees’ Retirement System (ERS). so the Authority is subject to full budgetary control. Fiduciary Component Units Fiduciary component units are required by GAAP to be reported as fiduciary funds of the primary government rather than as discretely presented component units. but the Commission's budget is subject to State control. operates several pension (and other employee benefit) trust funds for the benefit of state and local governmental employees. The Hall has both an independent board and is fiscally independent of the State. 4. The Board is not controlled by the State. but the Commission is fiscally dependent on the State. a discretely presented component unit. The Authority has both an independent board and is fiscally independent of the State. recreational area. or historic site certain land in Birmingham which played an important role in the steel industry of the State.The Alabama International Airport Authority was created to develop an international airport in the State. The Alabama Twenty-first Century Authority was created to promote economic development and industrial recruitment. The twenty-member Commission is not controlled by the State. The Authority is made up of three state officials. water pollution control. The State controls the appointment of only five of the ten members. The Authority has received no funding for a number of years so is currently inactive. but the Authority is subject to State budgetary control. and erosion control within the boundaries of the Authority. The Alabama Incentives Financing Authority was created to fulfill the State's financial commitments made to industries locating and expanding in the State under the terms of legislation granting certain financial incentives. buildings. The Agricultural Development Authority promotes development of agriculture in the State by making low interest loans available to persons engaged in agricultural operations. The ERS is governed by a thirteen-member board of control. but it is subject to State budgetary control. All funding for the Authority was historically through the General Fund. The six members of the Corporation are state officials. The State has some limited budgetary influence and the State funded the construction of the Hall's facilities with a general obligation bond issue. The fifteen member Commission is not controlled by the State. The Revolving Loan Fund Authority was created to make grants to twelve regional planning commissions for the purpose of financing local economic development projects. In accordance with GAAP. and promoting as a greenway. fiduciary funds and component units that are fiduciary in nature are excluded from the government-wide financial statements. 61 . The Historical Commission is responsible for the preservation of historic sites. The Agricultural Museum Board exists to preserve and exhibit agricultural artifacts. The Hall is included in these financial statements because it would be misleading to exclude. wildlife habitat protection. seven of whom are either primary government officials or appointees of the Governor.

or State Auditor.O. These non-Treasury agencies are included in the financial statements based on information provided to the State Comptroller once a year by the agency or the agency's auditors. and State Auditor. The administrative budget of TRS is subject to approval by the State. They are fiscally dependent on both the State and local government. warrants payable. Whenever possible. most investments. Audited financial statements for the TRS and ERS may be obtained from the RSA at 201 South Union Street. independent of the direct daily control of the State Comptroller. Smith Trust Fund  Cahawba Advisory Committee  Charlotte Thorn Endowment Fund  Commercial Mobile Radio Service Board  Corrections Bank Accounts and Agency Funds  Corrections Canteen Funds 62 . The many local soil and water conservation districts are legally separate organizations which have independent boards and are fiscally independent. The source of information on these agencies is the State's central accounting system.C. the non-Treasury agencies are reported as they appeared in the information submitted to the State Comptroller. Sources of Information The majority of state organizations. such as depreciation. the recording of cash. AL 36130-2150. inventories. Primary Government  Alabama College Education Savings Trust Fund  Alabama College System  Alabama Health Insurance Plan  Alabama Industrial Development Training Institute  Alabama School of Fine Arts  Alabama State Port Authority  Alabama Fire College  Alabama Technology Network  Athens State University  Attorney General Outside Accounts  Aviation Hall of Fame  Blind Vendors Fund  C. Accruals of revenues. 6. generally are based on data provided by the individual agencies. ten of whom are elected from among the member employees. compensated absences. In keeping with their independence. and capital leases. City and county boards of education are legally separate organizations whose boards are not controlled by the State. encumbrances. Excluded Organizations Other entities have been examined but failed to meet the criteria for inclusion in the State's reporting entity. and most expenditures/expenses are controlled by the State Comptroller and/or the State Treasurer and are therefore subject to extensive scrutiny. It is more appropriate that they be included in a local government's reporting entity. corrections or modifications have been made whenever required to comply with generally accepted accounting principles or wherever necessary to ensure consistent statewide report presentation. and all other accounts. The Elk River Development Agency. Montgomery. It is governed by a fourteen-member board. However. State Treasurer. Box 302150. 2010 The Teachers’ Retirement System (TRS). salaries payable. Bear Creek Development Authority. most revenues. whether primary government or component unit.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. For these agencies. conduct their financial operations from the State Treasury through the State's central accounting system under the supervision and review of the State Comptroller. a few accruals of expenditures/expenses. a discretely presented component unit. capital assets. There are some organizations and funds which meet the criteria for inclusion as part of the reporting entity even though they have the authority to conduct their financial operations through bank accounts and accounting systems outside the State Treasury. most short-term payables. State Treasurer. operates a pension plan for the benefit of all employees of public education institutions throughout the State. P. The following non-Treasury agencies and funds are included in this report: a. and Cahaba Trace Commission are legally separate organizations whose boards are not controlled by the State nor are they fiscally dependent on the State. All three of these organizations are excluded. State Treasurer. and State Auditor. 5. The data provided by the agencies are reviewed and recorded once a year and are believed to be materially correct even though they are not generally subject to extensive scrutiny by the State Comptroller. they are excluded from this report.

V. Chambliss Trust Fund  Women's Hall of Fame  Youth Service Student Accounts and Local Funds b. Stephens Historical Commission  State Bar Checking Account  State Bar Client Security  State Bar Foundation  State Port Authority Hourly Pension Plan  State Port Authority Railway Pension Plan  Stonewall Jackson Memorial Fund  Student Assistance Initiated Loan Servicing Account  Supreme Court Checking Account  Supreme Court Law Library Checking Account  Unemployment Compensation Funds  Victims Services Fund  W. Court System Local Accounts  Dental Examiners Board  Dental Scholarships Awards Board  Department of Human Resources Local Funds and Child Support Funds  Educational Television Foundation Authority  Geological Survey Library Revolving Fund  Gorgas Memorial Board  Hicks Memorial Endowment Fund  High School of Math and Science  Insurance Department Statutory Deposits  Insurance Department Receivership  Juror Certificate Fund  Marion Military Institute  Mary May Eliot Memorial Fund  Medicaid Agency Lien Account  Medical Scholarships Awards Account  Medical Examiners and Licensure Commission  Men’s Hall of Fame Outside Account  Military Department Unit Funds  Motor Sports Hall of Fame  National Guard Canteen Funds  Non-Emergency Transportation  Optometry Board  Optometric Scholarships Awards Board  Peace Officers' Annuity and Benefit Investment Account  Pharmacy Board  Pilotage Commission  Podiatry Board  Public Health Care Authority  Public Health Local Funds  Public Safety Narcotics Funds  Sports Hall of Fame Checking Account  St. Discretely Presented Component Units  Alabama Agricultural & Mechanical University  Alabama Drinking Water Finance Authority  Alabama Higher Education Loan Corporation  Alabama Historic Ironworks Commission 63 .

with the difference reported as net assets. or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. The Statement of Net Assets presents the reporting entity’s non-fiduciary assets and liabilities. notes. Unrestricted net assets often are designated.Bank Account  Music Hall of Fame  Red Mountain Greenway and Recreational Area Commission  Space Science Exhibit Commission and Space Science Exhibit Finance Authority  Troy University  U. or improvement of those assets. 64 .STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. Unrestricted Net Assets consist of net assets that do not meet the definition of the two preceding categories. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Net Assets are reported in three categories: Invested in Capital Assets. Governmental activities generally are financed through taxes. Fiduciary funds and fiduciary-type component units are excluded from the government-wide financial statements. and other debt that are attributed to the acquisition. Taxes and other items not meeting the definition of program revenues are reported as general revenue. contributors. to indicate that management does not consider them available for general operations. The two statements report the State’s governmental activities separately from its business-type activities. and other nonexchange revenues. intergovernmental revenues. grantors. or directly benefit from goods. Restricted Net Assets result when constraints placed on net asset use are either externally imposed by creditors. 2010  Alabama Housing Finance Authority  Alabama Incentives Financing Authority  Alabama Institute for Deaf and Blind  Alabama State University  Auburn University  Historic Blakeley Authority  Crime Victims’ Compensation Fund  Jacksonville State University Marine Environmental Sciences Consortium  Mental Health Capital Projects . Net of Related Debt consists of capital assets.S. net of accumulated depreciation and reduced by outstanding balances for bonds.S. use. or imposed by law through constitutional provisions or enabling legislation. Direct expenses are those that are clearly identifiable within a specific function. Government-Wide Financial Statements Government-wide financial statements include two basic financial statements: the Statement of Net Assets and the Statement of Activities. Alabama Battleship Commission  University of Alabama in Birmingham  University of Alabama in Huntsville  University of Alabama System Office  University of Alabama in Tuscaloosa  University of Montevallo  University of North Alabama  University of South Alabama  University of West Alabama  Water Pollution Control Authority B. Government-Wide and Fund Financial Statements 1. services. Program revenues include 1) charges to customers or applicants who purchase. and the like. construction.

Basis of Accounting. Under the modified accrual basis of accounting. "Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. as under accrual accounting. GAAP basis reporting differs considerably in some ways from the budgetary and cash basis accounting under which the State budgets and operates. do not recognize revenues and expenditures. proprietary funds. unless such FASB. FASB pronouncements issued after November 30. Agency funds. Therefore. For imposed nonexchange transactions. as are the proprietary and fiduciary fund financial statements. are not applicable unless adopted by a GASB pronouncement. only current assets and current liabilities generally are included on the balance sheet. revenues and the resulting assets are accrued at year-end only if the revenues are earned and the receivables are expected to be collected in time to pay for liabilities in existence at the end of the period. requires that all proprietary activities should apply all applicable GASB pronouncements as well as any Financial Accounting Standards Board (FASB) Statements and Interpretations. or CAP pronouncement. the State generally considers tax revenues and court settlements to be available if they are collected within sixty days of the end of the fiscal period. and fiduciary funds. Major individual governmental funds and major individual proprietary funds are reported as separate columns in the fund financial statements. expenditures related to debt service. except for items that are not expected to be liquidated with expendable available resources. 20. even though the latter are excluded from the government-wide statements. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. Accrual Basis Under GAAP. however. do not have a measurement focus. Under this focus. APB. 20. For government mandated nonexchange revenues such as grants. paragraph 6. and expenditures when all eligibility requirements have been met and (for revenues) resources are available. 1989." Statement No. However. and CAP pronouncements conflict with or contradict GASB pronouncements. a. The State considers revenues earned by incurring obligations to be available if they are collected within sixty days of the end of the fiscal period. Revenues are recognized as they become susceptible to accrual. compensated absences. in governmental fund financial statements. Modified Accrual Basis Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. receivables are recognized when an enforceable legal claim has arisen. recognition criteria are different for exchange and nonexchange transactions.2. For exchange and exchange-like transactions. Property taxes are recognized as revenues in the year for which they are levied. revenues. and Financial Statement Presentation 1. with nonmajor funds being combined into a single column. Accounting Principles Board (APB) Opinions. regardless of the timing of cash flows. The State has elected to exercise paragraph 6 of GASB Statement No. fiduciary in nature. receivables and revenues are recognized when the underlying exchange has occurred. Fund Financial Statements Separate fund financial statements are provided for governmental funds. C. Measurement Focus and Basis of Accounting These financial statements are reported in conformity with generally accepted accounting principles (GAAP) unless otherwise noted on the face of the statement or in the Notes to the Financial Statements. Revenues are recognized when resources are required to be used or the first period that use is permitted. generally when they are both measurable and available. APB. such as the long-term portion of compensated absences payable and capital lease obligations. Expenditures are recognized when the related fund liability is incurred. liabilities. expenditures and the related liabilities are accrued at year-end only when they are normally payable from current expendable 65 . 1989. revenues and related current assets are recognized when measurable and available to finance operations during the year or if available to liquidate liabilities existing at the end of the year. the government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting. even if they modify an applicable FASB. 33. and claims and judgments are recorded only when payment is due and payable. and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedure (CAP) issued on or before November 30. revenues and expenditures and related assets and liabilities are recognized as required by GASB Statement No. Agency funds. For this purpose. Revenues that the State earns by incurring obligations are recognized in the period when all applicable eligibility requirements have been met and the resources are available. Therefore. Revenues are recognized and recorded when earned and expenses are recorded when a liability is incurred for exchange and exchange-like transactions. GAAP require the recognition of assets. For derived nonexchange transactions. Expenditures generally are recorded when a liability is incurred. For nonexchange transactions. b. Measurement Focus.

business privilege tax. motor fuels tax. maintenance. The Alabama College System accounts for the revenues and expenses of the State’s Community and Technical Colleges. The General Fund is the State’s primary operating fund. Debt Service Funds account for the accumulation of resources for. receivables are recognized when an enforceable legal claim has arisen. revenues are recognized if received within sixty days. and operating harbors. oil and gas royalties. developing. pharmaceutical services tax. b. Athens State University. The Alabama Trust Fund consists of income from the sale or lease of rights for offshore exploration and drilling for oil and gas off the Alabama coast. For nonexchange transactions. For reimbursement-type federal grants. and expenditures are recognized when all eligibility requirements have been met and (for revenues) resources are available. seaports. Major Funds The State reports six major governmental funds. and river ports within the State of Alabama. deferred revenue is recognized. the Alabama Industrial Development and Training Institute. utility taxes. motor fuels tax. Forever Wild Land Trust. For property taxes. may be used for purposes that benefit the government or its citizenry. construction. not when those costs are submitted for reimbursement. and development of public education in Alabama. federal grants. The Education Trust Fund accounts for the revenues collected for the support. gasoline taxes. governmental long-term debt principal and interest. insurance premium taxes. The State uses sixty days after fiscal year end as the time limit for the accrual of revenues. Proprietary Fund Types: Enterprise Funds report the activities for which fees are charged to external users for goods or services such as health insurance. 66 . liabilities. revenues and expenditures and related assets and liabilities are recognized as required by GASB Statement No. Federal Unemployment Trust advances. Permanent Funds report resources that are legally restricted to the extent that only earnings. assets. receivables and revenues are recognized when the underlying exchange has occurred and the resources are available. The Public Welfare Trust Fund accounts for the administration of a broad range of social and protective services programs that provide financial assistance to individuals. and interest. Revenues are recognized when resources are required to be used or the first period that use is permitted and the resources are available.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. utility taxes. gasoline taxes. and economic and community affairs. Governmental Fund Types: Special Revenue Funds include operating fund activities financed by specific revenue sources that are legally restricted for specific purposes. licensing. electric public utilities tax. Capital Projects Funds account for the acquisition. Medicaid accounts for the portion of the Medicaid program that is funded by Federal revenues and other non-State revenue sources. the Alabama Technology Network. insurance premium taxes. Revenues are recognized when measurable and available. eligibility requirements are met when recipients incur allowable costs. The Public Road and Bridge Fund accounts for highway construction. For federal grants and other government mandated nonexchange revenues. It accounts for all financial resources except those required to be accounted for in another fund. general use taxes. nursing facility tax. The Alcoholic Beverage Control Board was created to control alcoholic beverages through distribution. business privilege tax. Also. general use taxes. and not principal. The State Port Authority was created to engage in promoting. For property taxes. general sales taxes. For income taxes. 2. Investment income is used to support the General Fund. Examples include public health. and Marion Military Institute. property taxes. and other imposed nonexchange transactions. electric public utility tax. 33. education. otherwise. investment sales receivables. and benefit claims to the unemployed. 2010 funds. and a variety of capital projects and debt service. and improvement of major general governmental capital assets financed principally by bond proceeds. and fiduciary funds. constructing. hospital assessment fees. the Alabama Fire College. The State reports four major enterprise funds. and enforcement. and other derived nonexchange transactions. maintenance. an arbitrary time limit is established. general sales taxes. and operations. maintaining. Material accruals are for income taxes. a one time receivable for Medicaid reimbursements from the Alabama Hospital Association is accrued. revenues. and the payment of. Nonmajor Funds The State reports a number of nonmajor governmental funds. Financial Statement Presentation a. proprietary funds. In order to determine which revenues should be accrued. The Unemployment Compensation Trust accounts for the activities of the federal unemployment insurance program including employer contributions.

In the government-wide statements. telecommunications. Eliminations have been made to minimize the double counting of internal activity. 2. utility taxes. There are five endowment funds established by private citizens that the State manages as trustee for local school systems and reports as Local Education Endowments. Cash and Cash Equivalents Cash and Cash Equivalents. cash bonds. and circuit clerks of the courts. The cash in all funds operating from the State Treasury is pooled as treasury cash and invested by the State Treasurer. and other purposes. Commercial paper is reported as an investment regardless of the original maturity date. teachers. as reported on the financial statements (the government-wide and the fund financial statements). state police. One component unit. cash and cash equivalents generally include demand deposit accounts. rather than to the general public. For funds operating outside the State Treasury. Assets. E. no allowance for uncollectible accounts has been established. Agency Funds report assets and liabilities for deposits and investments entrusted to the State as an agent for others. The Commission has set its fiscal year to end on the last Sunday in September in order to coordinate its accounting period with the weekly cycle of campers. The difference in fiscal years had no material effect on the financial statements. and Net Assets and Fund Balances 1. insurance premium taxes. petty cash accounts. The State Treasurer can also invest up to twenty percent of treasury cash in securities and obligations of the U.Internal Service Funds provide goods or services primarily to other agencies or funds of the State. internal service funds are included with governmental activities. and short-term.S. general sales taxes. the largest receivables are amounts accrued for income taxes. The State Treasurer has statutory authority to invest treasury cash in demand accounts or time deposit-open accounts with any qualified public depository. postemployment health care plans. or other governments. The Commission's fiscal year for 2010 ended on September 26. are under the control of the State Treasurer or other administrative bodies as determined by law. Fiduciary Fund Types: Pension and Other Employee Benefit Trust Funds account for resources that are required to be held in trust for the members and beneficiaries of the State’s defined benefit pension plans. consisting almost entirely of grants and reimbursements due from the federal government where collectability is reasonably assured. 33. individual retirement accounts. D. judges. Fiscal Year The State fiscal year ends on September 30. Examples include information technology. Section 41-10-307. The defined benefit pension plans include plans for state employees. Amounts due from local governments are not a significant portion of amounts due from other governments. general use taxes. payroll withholdings. Accordingly. some city and county employees. and the State Motor Pool. and flexible employees’ benefit plans. private organizations. deferred compensation plan. The second largest receivables are amounts due from other governments. state dock employees. including internal service fund type activity on the government-wide financial statements. The State has agency funds that account for some taxes collected. as amended). child support payments. peace officers. the Alabama Space Science Exhibit Commission. 67 . Receivables In the government-wide and governmental fund financial statements. All of the cash and investments in the State Treasury cash management pool are reported as cash and cash equivalents because the pool is used essentially as a demand deposit account. Liabilities. office building rentals. Treasury or federal agencies for a period of time that may exceed one year. and property taxes as required by GASB Statement No. The Foundation for Local Schools was established so that the Retirement Systems of Alabama can use its investing expertise to get maximum return on investments for numerous small local school foundations and trusts. highly liquid investments with a maturity date of three months or less when purchased. has the power to set its own fiscal year (Code of Alabama 1975. The State’s largest private purpose funds are education related for either college tuition benefits or local public schools. Private Purpose Trust Funds account for resources of all other trust arrangements in which principal and income benefit individuals.

Inventories Inventories of supplies in governmental fund financial statements are reported at cost using the purchases method. Valuation methods used on the proprietary and governmental fund financial statements include first-in first-out. In the fund financial statements. Short-term investments are reported at cost. The mortgage loans of the Authority are carried at their unpaid principal balances less an allowance for loan losses. 3. Notes. most investments are recorded at fair value. Investment Sales Receivable consists of amounts receivable for investments sold but the transaction was not settled before year-end. the State has a lien (a legal claim) against the property. provided and used between different functions. The primary government has minimal amounts of Notes and Loans Receivable. Due From Other Governments as reported for the component units consists almost entirely of amounts owed by local governments. about half of Mortgages. Inventories of materials and supplies on proprietary fund financial statements are determined by both physical counts and through perpetual inventory systems and are valued at the lower of cost or market. the assessed value of all property is multiplied by the applicable rates to levy the property tax. No investments are recorded at amortized cost. However. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as Internal Balances. Also included in this category are student loans owed to various Universities and the Alabama Higher Education Loan Corporation. which approximates fair value. and retail inventory method. Transfers represent flows of assets between funds of the primary government without equivalent flows of assets in return and without a requirement for payment. The fair value of real estate investments is based on independent appraisals. and Loans Receivable consist of loans made by the Alabama Housing Finance Authority. On that date. The loans are reported net of an allowance for uncollectible loans. as such agreements would constitute an illegal extension of credit by the State for any fund operating from the State Treasury. average cost. 2010 The property tax calendar for the State is simple. 5. and loans receivable. mortgages. After December 31. Eliminations have been made to minimize the double-counting of internal activity. and the lien date are all the same date – October 1. Investments Investments as reported on the Statement of Net Assets include long-term investments. including internal service fund type activity on the government-wide financial statements. Most of the amount consists of loans made by the Alabama Water Pollution Control Authority and the Drinking Water Finance Authority. have not been eliminated in order to avoid distorting the direct costs and program revenues of the applicable functions. notes. For component units. Reimbursements of expenditures/expenses made by one fund for another are recorded as expenditures/expenses in the reimbursing fund and as a reduction of expenditures/expenses in the reimbursed fund. The property tax is paid in arrears between October 1 and December 31. On October 1. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. transactions for services rendered by one fund to another are treated as revenues of the recipient fund and expenditures/expenses of the disbursing fund. Interfund Activity and Balances Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported as either Due To Other Funds or Due From Other Funds. interfund services. Operating transfers between governmental and business-type activities are reported at the net amount on the government-wide financial statements. “Accounting and Financial Reporting for Certain Investments and for External Investment Pools”. The Medicaid receivable was for a one-time reimbursement from the Alabama Hospital Association for the Prepaid Hospital Plan which will be replaced by a new program in fiscal year 2011. An inventory asset account is reported on the balance sheet with an offset to Reserved for Inventory. The levy date. 31. Accounts Receivable as reported for the component units are comprised primarily of amounts owed to colleges. As required by GASB Statement No.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. The most significant Accounts Receivable is recorded in Medicaid. it is delinquent. The property tax is not due until October 1 the following year. 4. weighted average. Interest and Dividends Receivable includes amounts earned on investments. the assessment date. Mortgage-backed securities are reported based on future principal and interest payments discounted at the current interest rate for similar instruments. 68 . Receivables and payables involving fiduciary funds are presented as accounts payable or receivable on the government-wide Statement of Net Assets. The second most significant Accounts Receivable is recorded in the Alabama Trust Fund for oil and gas royalties earned on natural gas produced in Alabama’s offshore waters.

Projects that meet the cost and documentation criteria are closed and appropriate entries are made to adjust the Infrastructure Construction in Progress and Infrastructure asset accounts annually. other debt agreements. an eligible employee is paid for the actual number of annual leave days he has earned. If a state employee in the classified service dies while in active service to the State. A significant portion of Infrastructure Construction in Progress consists of projects that have been put into service and maintenance costs could have been incurred. The State capitalizes road and bridge infrastructure annually when all costs for a project are incurred and all project documentation is satisfactorily completed. ALDOT also makes an annual estimate of the cost necessary to maintain and preserve those infrastructure assets at the target condition level. amounts reported are for unused. bridges. 8. filed and accepted with the appropriate entities. State Troopers must have twenty-five years of service or have attained the age of 52 and have ten years of service to be eligible to retire. roadways. Additions and improvements are capitalized. The State has elected to apply the modified approach to accounting for infrastructure (e. Sick leave is accrued at a rate of four hours and 20 minutes semi-monthly. which include buildings.000 and have initial useful lives extending beyond a single reporting period. Employees may be compensated for one-half of the maximum accrued sick leave only upon retirement from state service. 34 as well as historical costs preceding 1980. Under this approach. U. and fiduciary fund financial statements. and court settlements have been recorded as "Restricted Assets. The cost of infrastructure reported includes historical costs from 1980 to the present as required by GASB Statement No.. construction in progress and historical artifacts are not depreciated. Employees may accumulate up to a maximum of 150 days sick leave. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. and tunnels). roads and bridges). Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Buildings Improvements Other than Buildings Equipment Software Years 40 25 5-12 10 Land. the estate of the deceased employee receives a payment of fifty percent of the accrued and unused sick leave. which the employee was credited with at the time of his or her death. Extensive project documentation is required to meet various Federal and State guidelines concerning the construction of infrastructure. are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The ALDOT maintains an inventory of all infrastructure assets and performs regular condition assessments of those assets to establish that they are in fact being maintained at or above the condition level established. equipment. Capital Assets Capital assets.S. 7. Most capital assets are defined by the State as assets with an initial cost of at least $5. Donated capital assets are recorded at estimated fair market value at the date of donation. up to a maximum of sixty days. Due to the documentation requirements. Treasury obligations and certificates of deposit." These assets consist primarily of cash and cash equivalents. Upon separation from service. the infrastructure assets are not depreciated because the State is committed to maintaining the assets at a minimum condition level that the Department of Transportation (ALDOT) has determined to be adequate to meet the needs of the citizens.g. Costs for maintenance and preservation are expensed in the period incurred. not to exceed 600 hours. proprietary fund financial statements. donor specifications.6. The completeness of this documentation affects the timing of project capitalization.000. infrastructure. matured leave amounts payable to employees whose employment was 69 . and infrastructure (e.. In the governmental fund financial statements. Major outlays for capital assets and improvements are capitalized as projects are constructed.g. depending upon their length of service. Restricted Assets Assets required to be held and/or used as specified in bond covenants. land. there can be substantial time lags between the date a project is put into service on the State’s roadway network and the date the project is capitalized. Capitalized assets are recorded at historical cost or estimated historical cost if purchased or constructed. with the amount being computed on the basis of his daily pay rate at time of separation multiplied by the number of days leave due. intangibles. Software and other intangibles must have an initial cost of at least $100. The monetary value of accumulated annual and sick leave payable upon termination or retirement is included in the governmentwide statement of net assets. Compensated Absences Employees in permanent positions accrue annual leave at a rate of four hours and 20 minutes to nine hours and 45 minutes semimonthly. The employee must have twenty-five years of service or have attained the age of 60 and have ten years of service to be eligible to retire.

58: Accounting and Financial Reporting for Chapter 9 Bankruptcies 70 . Fund balance designations are established to indicate tentative plans for financial resource utilization in a future period. 2010 terminated by September 30.84 0. and (3) unrestricted net assets.46 0.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. only that portion expected to be financed from expendable available financial resources is reported as a liability in governmental fund financial statements. Amounts not payable from expendable available resources (long-term liabilities) are reported in the government-wide Statement of Net Assets. Such designations reflect managerial plans or intent as distinguished from legally required reserves. net assets on the government-wide financial statements and the proprietary fund financial statements are reported in three categories: (1) invested in capital assets. administrative expenses and depreciation on capital assets. New Accounting Pronouncements During the current fiscal year. Net Assets and Fund Balances As discussed previously. F. Long-Term Obligations Long-term debt is recognized as a liability in governmental fund financial statements when due. Reservations of fund balance on the governmental fund financial statements indicate that a portion of the fund balance is not available for appropriation and expenditure or is legally segregated for a specific future use. 51: Accounting and Financial Reporting for Intangible Assets  GASB Statement No. For other long-term obligations. Revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The liability for compensated absences was computed using salary rates effective at fiscal year end including the employer's share of social security and Medicare taxes payable and represents annual and sick leave earned up to the allowable ceilings. net of related debt. These amounts are paid to the employees during the first month after the end of the fiscal year so those actual payments were used to compute the amount payable. G. 10.77 Non-vested 0. The remaining portion of such obligations is reported in the government-wide financial statements.34 9. The sick leave is calculated separately for vested and non-vested employees. Proprietary Fund Operating Revenues and Expenses Proprietary funds report operating revenues and expenses separately from non-operating items. The probability multipliers are as follows: Public Education Employees State Employees Vested 0. 53: Accounting and Financial Reporting for Derivative Instruments  GASB Statement No. (2) restricted net assets. Sick leave is subjected to an actuarially determined probability multiplier that the employee will remain to retire and collect sick leave. the State implemented the following new accounting pronouncements:  GASB Statement No. Operating expenses for enterprise funds and internal service funds include the cost of sales and services. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds in the proprietary fund financial statements. or when resources have been accumulated in the debt service fund for payment early in the following year. Operating items generally result from producing and delivering goods and services that are a normal part of the primary business of the fund.

Net assets for the Port Authority were restated by $13.560.4 million that was borrowed from the Rainy Day Trust Account in fiscal year 2009 under the provisions of Amendment 803 of the Constitution of Alabama of 1901.NOTE 2 .932.077.000. operates on a cash basis and is required to distribute 100 percent of its profits. was restated by $317.5 percent proration in 2010. Governmental capital assets were restated in total by $5. with a total net asset deficit of $13.000.000 to a deficit of 1.000 from $307. had a deficit in unrestricted net assets of $17.000. was restated down by $64.000. and a total deficit in fund balance of $244.000.000 advance from the Federal Government which is included in “Due to Other Governments. a major component unit.000. Net assets for the Alabama College System were restated by $3. Restatements Fund Balances and Net Assets as of October 1.379. The Unemployment Compensation Trust.000.806.000 while internal service funds increased by the same amount because a fund was reclassified when it ceased to do business with external users. Net Assets for nonmajor enterprise funds decreased $1.912. The deficit is the result of a $283. Fund Balance/Net Assets Deficits 1. B. nor were any fiduciary funds restated. of which $296 million is restricted by enabling legislation. Restricted Net Assets The Government-wide Statement of Net Assets reports $5 billion of restricted net assets for the primary government.000.000 from a deficit of 1.559. a Nonmajor Debt Service Fund. was restated by $75. of which $777. other post-employment benefits.000) in governmental long-term debt restatements for capital leases which were not reported in the previous year.000 as part of the implementation of GASB Statement 53 on accounting for derivatives. C. was restated down by $8.000 resulting from the implementation of GASB Statement 53 on accounting for derivatives.083.735.307.417.318 to $22. However.358. Primary Government The Education Trust Fund. The deficits are largely due to the accrual of liabilities for compensated absences. 2009 have been restated for certain accounting changes necessary to conform to GAAP.000 to $624.671.” The Alcoholic Beverage Control Board. Included in this restatement was ($13. by law. the largest portion of which was $2. The Alabama Public School and College Authority. a major proprietary fund. The Board. Nonmajor Component Units were restated up $781. a decrease of $5.000. salaries payable. had a deficit in unrestricted net assets of $152.097.985.015. The University of South Alabama. Tax shortfalls caused the budget of the fund to undergo 9. and profits currently due to other funds.352.811.000.000 for a receivable not reported in 2009. fund balance for The Public Health Care Authority.510.960.000 was associated with the implementation of GASB Statement 51.000 increase in capital assets. Internal Service Funds were restated by $2.459. a major component unit.526. The University of Alabama. beginning net assets for governmental activities were restated down from $22. primarily because receivables and capital assets were understated. 71 .000 because the University of Alabama Birmingham Hospital incorporated in 2010 the operations of an entity previously considered to be an affiliated organization. On the government-wide financial statements. No major primary government governmental funds were restated.405.FUND BALANCES/NET ASSETS A. a major proprietary fund.545.000 to book a derivative in conjunction with the implementation of GASB Statement 53. had a deficit in unreserved. a major governmental fund. The fund still owes the Alabama Trust Fund $437. undesignated fund balance of $247. a major component unit.

including component units. all other public funds not managed by the State Treasurer are required to be deposited in a qualified public depository or placed through a qualified public depository which arranges for the funds to be deposited in federally insured banks or savings associations so that the funds and accrued interest earned on them are fully insured by the 72 .000 causing a deficit in total net assets of $1. The Authority issues bonds for making grants to Regional Planning and Development Commissions to be utilized as revolving loans by the grantees.986. requires all State organizations. Funds may also be invested in obligations of the United States or its agencies under a repurchase agreement for a shorter period of time than the maturity date of the security. The fund’s major assets are buildings. had a deficit balance of $5. had a deficit in unrestricted net assets of $6. the Code of Alabama 1975.417. The Code of Alabama 1975. Cash Deposits The State Treasurer has statutory authority to deposit treasury cash in demand accounts or time deposit .000 because of liabilities to employees for health care and dependent care reimbursements.000.994. which have depreciated values that are less than the principal remaining on the long-term debt associated with them. Nearly all of the Commission’s assets are either restricted or capital assets. a nonmajor component unit.000 and positive overall net assets of $35. In the event that a qualified public depository defaults or becomes insolvent and the pledged collateral is insufficient to satisfy the claims of public depositors. Component Units The Public School and College Authority. had a deficit in unrestricted net assets and in total net assets of $8.042.000.open accounts with any qualified public depository. The Authority issues bonds to raise money to fund commitments for economic development grants to industries relocating to Alabama and therefore the Authority accumulates few assets. net of related debt.000 with an overall deficit in total net assets of $92.S.000. Alabama Agricultural & Mechanical University.387. with positive total net assets of $3. The Space Science Exhibit Commission. had a deficit in unrestricted net assets of $1.000.811. Section 41-14A-9(3) authorizes the State Treasurer to make assessments against the other qualified public depositories in the pool so that there will be no loss of public funds. 2. had a deficit in unrestricted net assets of $21. The fund had overall positive net assets of $8. The resources to repay the debt will come from future tax revenues pledged by the primary government.000. as amended.000. The fund does not break even until the end of December because it operates on a calendar year basis. had a deficit in unrestricted net assets of $101.000 in net assets invested in capital assets. The Revolving Loan Fund Authority. an internal service fund. an Other Employee Benefit Trust Fund. a nonmajor component unit. Also.754.510. a major component unit.000. a nonmajor component unit. NOTE 3 . The Incentives Finance Authority. The bonds will be repaid with future tax revenues pledged by the primary government. The Authority issues bonds to raise money for grants which are made primarily to local school systems for the construction and improvement of educational buildings owned by those systems. but overall net assets are a positive $79. to participate in the SAFE Program.529.ASSETS A. The State Treasurer may also invest up to twenty percent of treasury cash in securities and obligations of the U.972. The SAFE Program requires State treasury cash to be deposited in a financial institution designated by the State Treasurer as a qualified public depository. The SAFE Program is a multiple financial institution collateral pool.760.000. Each qualified public depository is required to pledge collateral in accordance with the rules established by the SAFE Board of Directors. has a deficit of $7. Deposits of both the primary government and its component units are entirely insured by Federal depository insurance or protected under the Security for Alabama Funds Enhancement (SAFE) Program. The Flexible Employees’ Benefits Board. Treasury or federal agencies for a period of time that may exceed one year.167. The Historic Ironworks Commission.000 in unrestricted net assets.173.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.611. 2010 The Building Renovation Finance Authority. had deficit net assets of $1. a nonmajor component unit.975. The resources to pay the debt will come from future tax revenues pledged by the primary government. a nonmajor component unit.

government or U. of such broker/dealer subject to the Securities Investors' Protection Corporation jurisdiction or any commercial bank. security or property that constitutes legal investments for investment of public funds in the State. skill. The State Treasurer may also invest in money market mutual funds which invest solely in U. and debentures or obligations guaranteed by the U. The investments authorized for the Retirement Systems are described later in this section. The asset allocations for each portfolio are in consultation with the Program Manager. government agency securities.Federal Deposit Insurance Corporation and.S. at the same time. Fiduciary Funds Retirement Systems of Alabama (RSA) . S. the qualified public depository receives or is credited with deposits from other banks or savings associations in an amount equal to or greater than the amount it arranged to be deposited in other banks and savings associations. The investment alternatives are made available through investment portfolios each of which represents a separate. Treasury. 2.. any agreement to repurchase any of the foregoing. regulations.The State is responsible for the management of the investments of the PACT program..S. or any agency thereof.The RSA administers the Teachers’ Retirement System (TRS). although the investments are not property of the State. Primary Government State Treasurer . The plan is named the Public Employees' Individual Retirement Account/Deferred Compensation Plan.The State Treasurer may legally invest state funds in obligations of the U. S. government. and diligence under the prevailing circumstances that a prudent man acting in a like capacity and familiar with such matters would use in investing. or any combination thereof. Each Board is limited only by the "Prudent Man Rule" which requires it to use due care. The funds may be invested in any instrument. obligation. segregated portfolio of investments in mutual funds. and Judicial Retirement Fund (JRF). Employees’ Retirement System (ERS). 3. Alabama Trust Fund – Investments are limited to those authorized by law for the Retirement Systems of Alabama. Component Units Alabama Water Pollution Control Authority .. Federal National Mortgage Association notes. or the State of Alabama.The Authority is authorized to invest in bonds or other obligations issued or guaranteed by the U. Federal Home Loan Bank notes and bonds. The Board of Trustees has entered into a contract with UBT 529 Services (Union Bank). and "A-1" or "A-" or better by Standard & Poor's Corporation. Union Bank. including legal investments of the State Treasurer and the Alabama Trust Fund that are deemed most appropriate by the PACT Board and may be pooled for investment purposes with any other investment of the State which is eligible for asset pooling. Inc. Prepaid Affordable College Tuition (PACT) Program .S.The Authority is authorized to invest in (a) any debt securities that are direct or general obligations of the U. RSA-1 investments are made under the same rules. and is commonly referred to as RSA-1. conditions. prudence. and unguaranteed obligation rated "Prime-1" or "A3" or better by Moody's Investor Service. RSA may invest in any types of investments that the Board of Control of each individual system approves. Federal Land Bank bonds. Investments Investments are made in accordance with the statutes creating the various agencies of the State of Alabama. and (c) repurchase agreements collateralized by securities of the type described in (a) and (b) above with any commercial bank.S. and day-to-day administration has been delegated to the State Treasurer. Alabama Housing Finance Authority . the Authority may invest in interest-bearing bank and savings and loan association deposits. a division of Union Bank and Trust Company.S. The following describes the investments made by the major investing agencies of the State: 1. B. and guidelines governing the RSA. Investments in obligations of the United States or its agencies under a repurchase agreement are allowed. any obligations in which a State-chartered savings and loan association may invest its funds. Each of the trust indentures established 73 . By law. if such broker/dealer or bank has an uninsured. unsecured. (b) any debt security unconditionally guaranteed (principal and interest) by the U. In addition. Deferred Compensation Plan (RSA-1) – A deferred compensation plan is administered by the Retirement Systems of Alabama (RSA). Alabama College Education Savings (ACES) Plan – The Board of Trustees administers the program. Government.

The colleges and universities invest funds in accordance with the applicable limits set forth in the gift instruments. Certain bond indentures require that the bond funds invest all amounts in federal securities or eligible certificates. however. 74 . is always at least equal to the repurchase prices specified in the agreement. and (7) any other investments or obligations consented to by the bond insurance provider. The Authority's program investments consist of Government National Mortgage Association (GNMA) or Federal National Mortgage Association (FNMA) pass-through certificates. (2) bank demand deposits and certificates of deposit insured by the Federal Deposit Insurance Corporation or fully secured by obligations with the same characteristics as those described in items (1) above or (3) below. most investments are stated at fair value. all of which are pledged as security for the mortgage revenue bonds. In accordance with GASB Statement No. 2010 under the Authority's mortgage revenue bond programs contain further restrictions on the investment of non-expended bond proceeds. (4) obligations with the same characteristics as those described in items (1) and (3) above held by the Trustee under written agreement whereby a bank or trust company agrees to repurchase the obligations. or other applicable laws. or obligations unconditionally guaranteed by. (5) money market funds consisting solely of securities similar to those described in items (1). Investments Made by Colleges and Universities .S. Government. Higher Education Loan Corporation . as determined monthly. 31. each trust indenture must be consistent with the Authority's authorizing legislation with respect to the definition of eligible investments. (3). but not limited to: (1) direct obligations of. Other investments include temporary and debt service reserve funds established under the provisions of various trust indentures. S. Government. and (4) above. the U. and investments of the Authority's general and housing assistance funds.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. (6) guaranteed investment contracts.The bond trust indentures authorize the Corporation to invest bond proceeds only in certain types of investments including. Board of Trustees guidelines. providing that the market value of such obligations. (3) obligations of or guaranteed by any agency or instrumentality of the U.

580.146) 5.385 404.076 640. For this reason some of the investment information is not available.587.961 $ $ Business-Type Activities 5.088.349 15.190 515.879 $ 28.151 429.219 2.526 Other Cash Equivalents † (291.823 339.669 2.915 709.050 614.343.770 681.254 241.820.016 264 6.961 $ 23.897 11.935 2.744 198.488 209.721 148 1. The investment information that is available is being disclosed.880) (85.049 34.899 $ 28.067 214 23.298) (3.578 $ Investment types not required to be presented in the investment credit note.201 Certificates of Deposit † 17.441 679 1.821 86.355 3.345. however these investments are subject to investment risk disclosures.201 $ Discretely Presented Component Units $ 17.440 1.938 (381.879 $ Fiduciary Funds (including Fiduciary Component Units) $ 321 1.160) 82.214 23.525 3.329 $ 192.913 99.447.573 42. 75 .360 794.533 8.577 11.353.031 3.385 630.178 6.669) Investments Classified as Restricted Assets 5 Foundations and pooled investments § Investments per Statements † $ 3.443 1.323 596.343.114 135. investments of affiliated entities are included in an investment pool.475 94.The State’s investments at September 30.482 973. †† Short-term repurchase agreements are included as cash equivalents.656 6.533 Investment Types U S Treasury Strips Other U S Government Guaranteed Securities U S Agency Securities State and Local Government Securities Mortgage Backed Securities Commercial Paper Corporate Bonds Private Placements Repurchase Agreements International Bonds Bond Mutual Funds Domestic Equities International Equities Other Mutual Funds Real Estate Commingled Funds Guaranteed Investment Contracts Reconciliation to the Government-wide Statement of Net Assets and Statement of Fiduciary Net Assets Investments Per Investment Note $ 3.603. are as follows: Investment Types and Fair Value (Amounts in Thousands) Governmental Activities $ 16. 2010.587.731. § University foundations follow the investment reporting requirements of the FASB and are not subject to GASB disclosure requirements.137 890.946 787.023 424.298 160 2.567 28.889 6.867) (55.088.593.163 Repurchase Agreements †† (80.988 269 80.971 2.161 11.141 7.443 2.751 $ 3. Also.343 523.221 $ 6.533 37.307 496.788 27.234.766.

which provide investors with some idea of the issuer’s ability to meet its obligations.673 65 9 5.320 20.079 74 552.079 2.761.803 6.519 $ Other Fiduciary Funds 55 2.269 1 3.465 $ BusinessType Activities 10.438 350 2.462 7 5.522 1 6.070 8.261 137 22 7.177 627 8 6.795 2.102 2.692 Moody's Aaa $ $ $ $ † Consists primarily of private placements and bond mutual fu nds that are not rated.867 318 .178 929 2.575.868 25 5. Investment Risks 1.345 6. 2010 are presented below.682 45 1 0.240 9.086 9 8.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.759 106 4.302 36.417 $ Component Units 1 .194 7 2.426 44 .263 .247 34 .402 126 .459 158 .584 15.780.231 752 9.901 659 299 665 246 247 443.945 7.224 580 .469 47.415 3.809 98.533 2 8.776 444 44.374 7.25 8.645 63.027 2.365 1. Nationally recognized statistical rating organizations provide ratings of debt securities quality based on a variety of factors.403 7.415 26 664 383 11. such as the financial condition of the issuers.470 6.415 427 .103 267 .290 8 .895 26.663 638 2.285 .149 150.017 493 247 41 1.729 $ RSA Fiduciary Component Units 934 .981 31 0. 2010 C. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.093 40 36 58 9 16 3.465 607.340 402 27 34 124 72 5.817 297 5.580 11.323 53.788 1.113 20.778 81.980 8.110 . The ratings of the State’s investments as of September 30.435 2 9.265 241 .734 63 .192 5.523 6.345 17 2.791 117.937 3.043 3 .909 2.617 730 20.475 222 .526 3.493 28 .993 4.016 10 7.288 27 60.121 4. Ratings of Fixed Maturities (Amounts in Thousands) Standa rd & Poor's $ AAA Aa1 AA+ Aa2 AA Aa3 AAAa A1 A+ A2 A A3 AA P1 P2 Baa1 BBB+ Baa2 BBB Baa3 BBBBaa Ba1 BB+ Ba2 BB Ba3 BBB1 B+ B2 B B3 BCaa1 CCC+ Caa2 CCC Caa3 Ca C U S Govt Guaranteed Securities Withdrawn Rating Not Rated † $ Governmental Activities 695.415 6.097 221 826.435 29 . 76 .679 55 .636 3 9.853 419 993 1.124 64.008 31.604 59.057 5 1.995 2.834 21.995 57.142 244 .982 2.638 3.145 81 .920 22.132 13 1.730 153.960 29.469 132 1.

Average effective duration should be plus or minus 30% of the index duration.713 180. Short-term investments may consist of commercial paper rated at least A-2 and/or P-2.692 $ More Than 10 70.432 100.S. The U. Certain fixed maturity investments have call provisions that could result in shorter maturity periods. Market accepted average life at time of purchase shall be used in lieu of final maturity for the purpose of maturity acceptability of mortgage-backed securities. 2.076 2. The investments allowed are U. Domestic fixed-maturity investments may consist of rated or non-rated securities. except that up to 2% of the fair value of each System’s total portfolio may be invested in obligations of sovereign countries with a rating of BBB or BAA at the time of purchase. As mentioned earlier the investments of the Alabama Trust Fund are limited to those authorized for the Retirement Systems of Alabama.385 630. and other general market conditions.213 676 75. government agency securities are rated Aaa or AAA. The fair value of interest sensitive instruments may also be affected by the creditworthiness of the issuer.788 27.S government or U.758 $ $ $ 77 .242 126. The Systems may hedge against the possible adverse effects of currency fluctuations on each System’s portfolio of international fixed income obligations when it is considered appropriate.839 $ Total Fair Value 16. However. The investment policy of the Alabama Trust Fund states that the portfolio’s average duration is not to exceed 1. repurchase agreements. The fair value of fixed-maturity investments fluctuate in response to changes in market interest rates. government and U.784 7.S.444 220.S. government or agency securities. International fixed-maturity investments may consist of securities with a rating of at least A by one of the principal rating agencies at the time of purchase or acquisition. relative values of alternative investments.388 7.612 632 $ 6-10 1.977 27.5 times that of the benchmark index. and other money market investments. Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of those investments. Increases in prevailing interest rates generally translate into decreases in fair value of those instruments. the Retirement System of Alabama’s intent is to hold all fixed maturity investments until maturity.191 269 160 509. repurchase agreements backed by U.298 1.242 405. the System’s fixed maturity investments are classified in the table as if they will be held to maturity.298 160 2. As of September 30. The Treasurer’s Office policy states that the maximum effective maturity of any purchase will be five years.533 8.899 219. government agency securities.993 30. prepayment options.988 269 80.670 247.885 113.566 960.023 424.148 512 61.789 $ $ 883.The investment policy for the State Treasurer was mentioned earlier. Bond mutual funds may or may not be rated.S. The portfolio is benchmarked against the Barclays Capital 1 .S. and as such.S government or U.500 $ 1-5 15.758 642. 2010 the State had the following investments and maturities: Governmental Activities (Amounts in Thousands) Maturity in Years at Fair Value Investment Type U S Treasury Strips Other U S Government Guaranteed Securities U S Agency Securities State and Local Government Securities Mortgage Backed Securities Commercial Paper Corporate Bonds Private Placements Repurchase Agreements International Bonds Bond Mutual Funds Total $ Less Than 1 34.323 596.081 84. securities.S. government agency securities.574. or mutual funds investing in U.619 80.385 37. short-term U.3 Year Government Index.946 787.

135.729 $ $ $ $ Retirement Systems of Alabama (Fiduciary Component Units) (Amounts in Thousands) Maturity in Years at Fair Value Investment Type U S Government Guaranteed Securities U S Agency Securities Mortgage Backed Securities Commercial Paper Corporate Bonds Private Placements Bond Mutual Funds Total $ Less Than 1 564 53.390 145.643.807.627 580.952 1.235 23.840 2.016 264 6.224 7.277 466.683 $ 6-10 33 2.746 1.263.676.356 $ More Than 10 56.440 20.984.522 $ 78 .555 392 115 7 6.870 222.740 360.179 222.455 $ 6-10 440.889 6.342 $ 2.235 71.133 $ 1-5 3.468 30 126 90 2.627 4.415 141. 2010 Business-Type Activities (Amounts in Thousands) Maturity in Years at Fair Value Investment Type U S Government Guaranteed Securities U S Agency Securities State and Local Government Securities Mortgage Backed Securities Corporate Bonds Bond Mutual Funds Total $ Less Than 1 1.290 231.868 218.036.166 $ Total Fair Value 5.747 $ More Than 10 877 135 86 26 42 1.880.957 574.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.027 2.983 $ 1.104 234.441 679 1.303 438.498 $ Total Fair Value 1.398.519 $ 1.618 646.283 287 785 105 196 6.224 $ 1-5 539.112 10.415 1.672 $ 1.071 836.112 198 580.600 137.

935 10.649 92.458 20.258.913 34.078 30 161.669 2.117 276.451 216.866 87.355 1.Other Fiduciary Funds (Amounts in Thousands) Maturity in Years at Fair Value Investment Type U S Treasury Strips U S Government Guaranteed Securities U S Agency Securities State and Local Government Securities Mortgage Backed Securities Commercial Paper Corporate Bonds Private Placements Repurchase Agreements International Bonds Bond Mutual Funds Total $ Less Than 1 243 13.346 3.821 653.656 155.240 1.403 219.871 28.170 2.400 820 310.424 2.856 1.105 $ 693.032 192.723 4.824 72.283 $ 424.592 217.669 103.233 252.556 596.591 503.228 990 8.048 10.986 31.765 $ More Than 10 27.350 $ 1-5 78 296.213 645.583 $ 1-5 2.095 49.765 $ 6-10 217.190 293.089 1.673 $ $ $ $ $ 2.421 3.270 2.728 214.884 8.556 35.292 17.436 94.688 310.693 9.244 $ Total Fair Value 17.944 23.869 750.184 92.331 18.990 167.942 28.175 3.896 961.837 3.933 $ 337.922 1.987 66.041 92.979 $ More Than 10 1.011 13.417 Discretely Presented Component Units (excluding University of Alabama) (Amounts in Thousands) Maturity in Years at Fair Value Investment Type U S Treasury Strips Other U S Government Guaranteed Securities U S Agency Securities State and Local Government Securities Mortgage Backed Securities Commercial Paper Corporate Bonds Private Placements Repurchase Agreements Guaranteed Investment Contracts Bond Mutual Funds Total $ Less Than 1 8.174 1.645 $ $ 79 .293 94.135 614.044 10.343 277.455 34.614 281.417.712 $ 6-10 6.633 2.656 477.723 30.991 218 358.292 777 612.544 98.225 14.537 $ Total Fair Value 321 556.589 23.155 303 86.607 214.

0 2.0 2.3 2. more volatile than those with shorter durations.6 6.0 5. In order for an international security to be eligible for purchase by the Retirement Systems of Alabama (RSA). and the fair value of the aggregate outstanding equity of the issuing company must be at least $100 million. Not more than 5% of the outstanding shares of any one company may be held by the portfolio. The University does not have a specific policy relative to interest rate risk. measured by effective duration. therefore.160 986.787 911 1. Foreign Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.6 2. Effective duration is the approximate change in price of a security resulting from a 100 basis point (1 percentage point) change in the level of interest rates.878 108.2 6.610 Effective Duration 3.4 3.889 125. Not more than 5% of the total stock portfolio may be invested in the common stock of any one corporation at the time of purchase and no more than 7% in any one corporation at market.3 2.011 192. 80 . 2010 The University of Alabama discloses the interest rate risk for the System Pool using the effective duration method.237 19. The investment policy of the Alabama Trust Fund states that the exposure to emerging market securities shall be limited to 20% of the market value of the international portfolio.979 265.4 5. the issuing company must be incorporated in a country whose debt securities are eligible for purchase as discussed earlier.534 566 1.568 132.2 3.9 1.764 30.4 2. It is not a measure of time. University of Alabama System Pool (Amounts in Thousands) Investment Type Endowment Fund: U S Government Guaranteed Securities Mortgage Backed Securities Collateralized Mortgage Obligations Corporate Bonds Commingled Bond Funds Prime Fund: U S Government Guaranteed Securities Mortgage Backed Securities Collateralized Mortgage Obligations Corporate Bonds Commingled Bond Funds Intermediate Fund: U S Government Guaranteed Securities Mortgage Backed Securities Collateralized Mortgage Obligations Corporate Bonds Bond Mutual Funds Total $ Fair Value $ 33. The prices of fixed income securities with a longer time to maturity.899 19. tend to be more sensitive to changes in interest rates and.526 31.2 1.901 21.8 3.

427 199 594 31.190 $ $ $ $ $ $ $ 4.879 294.430 6 198.190 2.287 8. administers a portion of the program for the ATF.457 3.062 92.260 129 570 1.The State’s exposure to foreign currency risk at September 30.256 4. Bank of New York Mellon (BNYM).118 26.161 564 4. 2010 was as follows: Deposits and Investments Exposed to Foreign Currency Risk (Amounts in Thousands) BusinessGovernmental-Type Activities Cash Australian Dollar Bermudian Dollar Brazilian Real British Pound Sterling Canadian Dollar Cayman Dollar Chinese Yuan Danish Krone Emerging Markets Euro Hong Kong Dollar Hungarian Forint Indonesian Rupiah Israeli New Shekel Japanese Yen Mexican Peso Neth Antilles Guilder New Turkish Lira New Zealand Dollar Norwegian Krone Russian Rouble Singapore Dollar South African Rand South Korean Won Swedish Krona Swiss Franc Taiwan New Dollar Thai Baht Currency Index Funds Totals $ 39 150 16 10 83 9 9 148 12 8 16 19 149 32 191 4 895 International Equities $ 6.227 3.248 263.936 2.408 24. Alabama Trust Fund (ATF) – The ATF’s custodian.026 2.120 26.623.484 155 55.058 629 1.322 2. in the name of the State.727 2.849 1.159 679.991 5.098 1.535 53.082 32.449 28.955 7.101 3.107 International Bonds $ 2.702 52.985 106.580 2.744 39.606 12.614 940 18 1.672 2.114 $ International Bond 160 160 $ Type Activities International Equities 21 9 18 100 148 RSA (Fiduciary Component Units) International Equities $ 281. Custodial Credit Risk For an investment.055.396 709. 81 .873 6.516 10. The ATF’s custodial credit risk policy authorizes BNYM to hold securities in registered form in the name of its nominee. custodial credit risk is the risk that an entity will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party if the counterparty fails. The policy requires BNYM to establish and maintain one or more securities accounts (book entry system) in which BNYM will hold the securities. These accounts are in the name of the ATF.722 75 1.157 143.863 1.200 Other Fiduciary Funds International Equities $ 10. State Treasurer – The State Treasurer’s policy with respect to repurchase agreements requires that the underlying securities be held in the counterparty’s safekeeping department.

for the account of the RSA all securities and other non-cash property other than securities in the Federal Reserve book-entry system. ERS. 10%.867 1. JRF. and non U. All security loans are open loans and can be terminated on demand by the TRS.466 $ Discretely Presented Component Units 203 1. As of September 30. For fixed income investments.134 $ $ $ 5. The range for real estate may not exceed 15% of the book value of each System’s portfolio. ERS. Certain securities are loaned to borrowers approved by the RSA.835 25. and the Judicial Retirement Fund (JRF) are authorized by the Boards of Control to participate in a securities lending program.461 85. For equity investments. domestic equity.15% and 6. The investment policy of the Alabama Trust Fund states that the investment portfolio shall be diversified by both asset class and within asset classes. Domestic fixed income. the aggregate investment in equity securities of any one issuing corporation shall not exceed 1% of the outstanding capital of such corporation. in a clearing agency which acts as a securities depository. respectively. Also. equities and such other collateral as the parties may agree to in writing from time to time.120 3. or in another book-entry system. The Retirement Systems of Alabama’s (RSA) custodian. and 20%.63% of the TRS investments and 6. respectively. 25%.768 115. 10%. of the TRS and the ERS investments and Goldman Sachs which represented approximately 6. any other assets permissible under Rule 15c3-3 under the Exchange Act of 1934. by economic sector and industry.86%.S. there were no investments that exceeded the 5% of the total fixed income portfolio limit in any one corporation.153 50.S. The initial collateral received shall have (depending on the nature of the loaned securities and the collateral received). 2010. alternative investments. As of September 30.S.486 480 8. D. of each System’s aggregate portfolio. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributable to the magnitude of a government’s investments with a single issuer.390 6.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. and no more than 5% of the total fixed income portfolio may be invested in securities of any one corporation. international fixed income. a portion of the program for the ATF. The Alabama Trust Fund (ATF) investment managers are authorized by the Board of Trustees to engage in securities lending under guidelines established by the ATF Investment Committee. The investment policies of the Retirement Systems of Alabama limit the aggregate amount that can be invested in each class of investments.773 80. Approved borrowers of securities provide acceptable collateral in the form of cash (U. the portfolio is to be diversified so that no more than 15% is invested in one industry. and short-term investments are limited to 50%.06% of the ERS investments. The RSA’s safekeeping agent holds all investments of the RSA in the RSA’s name with the exception of securities purchased with securities lending collateral.862 1.298 140. and foreign currency).298 $ Fiduciary Funds Other Than RSA 321 25. the Employees’ Retirement System (ERS). and some other funds of the State. 2010 Retirement Systems of Alabama (RSA) – The RSA’s custodial credit risk policy requires the custodial agent to hold or direct its agents or subcustodians to hold. administers the program for the TRS. the Teachers’ Retirement System (TRS) and Employees’ Retirement System (ERS) owned debt and equity securities of Raycom Media Corporation which represented approximately 6. Securities Lending The Teachers’ Retirement System (TRS). U. each System may not purchase or hold more than 5% of any class of the outstanding stock of a foreign company. a value of 102% or 105% of the fair value of the 82 . or borrower.212 6. Investments Exposed to Custodial Credit Risk (Amounts in Thousands) GovernmentalType Activities U S Treasury Strips Other U S Government Guaranteed Securities U S Agency Securities State and Local Government Securities Mortgage Backed Securities Corporate Bonds Bond Mutual Funds Repurchase Agreements Other Mutual Funds $ 1. JRF. international equity. 65%.669 44. 2010. State Street Bank and Trust Company (State Street).

mark loaned securities and collateral to their fair value each business day based upon the fair value of the collateral and the loaned securities at the close of the business employing the most recently available pricing information and shall receive and deliver collateral in order to maintain the value of the collateral at no less than 100% of the fair value of the loaned securities. Cash collateral investments in the QDF are matured as needed to fulfill loan obligations. the average term of the loans secured by QDF was 8. Cash collateral investments are matured as needed to fulfill loan obligations. or the borrower. The following describes the QDF’s guidelines. Cash collateral administered by State Street for ATF is invested in the State Street Global Securities Lending Trust (SSGSLT). or. all securities with maturities of 13 months or less must qualify as first tier securities and all securities with maturities in excess of 13 months will be rated A or better by at least two nationally recognized statistical rating organizations (NRSROs). employing the most recently available pricing information. All fixed rate instruments must have an option-adjusted duration not to exceed 18 months. As of September 30. State Street shall. in accordance with BNYM’s reasonable and customary practices. The following describes the SSGSLT’s investment policy guidelines. ERS. The Bank of New York Mellon (BNYM) administers a portion of the securities lending program for the ATF. The lender cannot pledge or sell collateral securities received unless the borrower defaults. cash collateral in the amount of 102% of the fair value of the loaned securities or (ii) in the case of loaned securities which are not denominated in United States Dollars. To the extent any loss arising out of approved investments results in a deficiency in the amount of collateral available for return to a borrower. the average term of the loans was 52 days. and JRF. 8. There is no direct matching of the maturities of the loans with the investments made with cash collateral.loaned securities. Cash collateral investments in the SSGSLT are matured as needed to fulfill loan obligations. Pursuant to the terms of the applicable securities loan agreement. As of September 30. if not rated. ATF agrees to pay BNYM on demand cash in an amount equal to such deficiency. mark loaned securities to their fair value each business day based upon the fair value of the loaned securities as of the close of the preceding business day.5 years or less. 83 . but not less than 102% of the fair value of the loaned securities. be of comparable quality. BNYM shall. At the time of purchase. as may be applicable in the jurisdiction in which such loaned securities are customarily traded. and 9 days. Approved borrowers of securities provide acceptable cash collateral in the form of Federal funds or New York Clearing House funds as applicable for a particular loan. The QDF’s average effective duration is restricted to 90 days or less. Cash collateral for TRS. in accordance with State Street’s reasonable and customary practices. the average term of the loans secured by SSGSLT was 10 days. and receive and deliver collateral in order to maintain the value of cash collateral at no less than the collateral requirement. cash collateral in the amount of 105% of the fair value of the loaned securities. The initial collateral received shall have (i) in the case of loaned securities denominated in United States Dollars. 2010. respectively for the TRS. or such other value. 2010. There is no direct matching of the maturities of the loans with the investments made with cash collateral. and JRF is invested in the State Street Quality D Short-term Investments Fund (QDF). provided that (i) in no event shall any security be acquired with a remaining maturity of greater than 397 calendar days and (ii) the dollar-weighted average maturity of SSGSLT shall in no event exceed 90 days. BNYM. Certain securities from ATF are loaned to borrowers approved by the ATF Board of Trustees. The investment manager shall maintain the dollar-weighted average maturity of SSGSLT in a manner that the investment manager believes is appropriate to the objective of maintaining a stable net asset value per share. The maximum option-adjusted duration of any variable rate security investment of the QDF shall be 2. ERS. Pursuant to the terms of the applicable securities loan agreement. The QDF may invest in other State Street managed investment vehicles provided they conform to QDF guidelines. The ATF cannot pledge or sell collateral securities received unless the borrower defaults. All security loans are open loans and can be terminated on demand by the ATF. SSGSLT will endeavor to maintain sufficient liquidity to support collateral return obligations under securities loan transactions. As of September 30. 2010. All approved investments shall be for the account and risk of ATF.

 Certificates of deposit.  Asset-backed securities which carry the highest credit rating by Standard and Poor’s or Moody’s. and other debt obligations including promissory notes. Fixed rate instruments shall have a maturity of no greater than 13 months. or variable rate interest payment provisions.  Repurchase and reverse repurchase agreements collateralized by approved investments. Floating rate instruments rated “AAA” shall have maturities no greater than five years with resets no less frequent than three months.  Securities issued or fully guaranteed by the United States Government and any agency. 84 .  Securities. The Prepaid Affordable College Tuition Program’s (PACT) investment policy approved by the Board of Trustees permits the PACT Program to enter into securities lending transactions defined as loans of securities to broker-dealers and other entities for collateral with a simultaneous agreement to return the collateral for the same securities in the future. notes. time deposits and other bank obligations of U.S.  Government securities have no maturity limit. units. The PACT Program’s custodian. bonds. banks. The BNYM has provided loss indemnification to the PACT Program in the event that the borrower does not return the market value of the securities loaned. or establishment of the United States Government (“Government Securities”). unregistered short-term investment funds. and guaranteed investment contracts whether or not registered under the Securities Act of 1933. shares and other participations in money market funds. funding agreements. The PACT program exited this program in June 2010. There are no restrictions on the amount of loans that can be made for the PACT Program.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. as amended.  High-grade commercial paper. administers the program and acts as an agent for the PACT Program. instrumentality. Certain securities of the ATF and the PACT Program are loaned to borrowers approved by the ATF Board of Trustees and the PACT Program. floating. BNYM. pools or trusts. Such obligations may have fixed. Floating rate instruments rated “A” or “AA” shall have maturities no greater than three years with resets no less frequent than three months. 2010 The following describes the manner in which BNYM is authorized to invest and reinvest cash collateral for the ATF. Approved borrowers of securities provide acceptable cash collateral in the form of federal funds or New York Clearing House funds as applicable for a particular loan. their branches and subsidiaries.

496 21.597 172.039 $ 570.602 2.826 $ 23. when interest rates fall.Invested in State Street Quality D Fund State Street Global Securities Lending Trust BNYM Investments Total Cash Collateral Non-Cash Collateral For Lent Domestic Fixed Maturities Securities Collateral . Included in investment purchases payable on the Statement of 85 .331 2.813 41.948 $ 584.265 45.602 258.276 - 972 - 607.253 $ 378.007 423.Securities Lending . Generally.084 Other Fiduciary Funds 287.200 $ $ 449.679 85.204 951 951 2.327 17.454 $ $ 972 2.795 23. Embedded prepayment options cause these investments to be highly sensitive to changes in interest rates. The resulting reduction in cash flow diminishes the fair value of the mortgage-backed securities.265 - $ $ 9.709 199.639 16.137 44.000.080 1.228 $ 2.761. the ATF had investments in TBA mortgage-backed securities in the amounts of $58. pursuant to which it agrees to purchase mortgage-backed securities.086 263.244. The lender.965 129.573 120. The TBA market is essentially a forward or delayed delivery market.084 12.813 17.465 12.749 $ 370.224 BusinessType Activities 1.765 $ 1.297. At September 30.Investments Lent and Collateral Received (Fair Value in Thousands) GovernmentalType Activities 207.101 1.530.930 240.609 8.327 23.006 177. will enter into a forward contract to sell mortgage-backed securities in the TBA market.902 1. or other market participant.037 4.060 E.204 1.774 $ $ 21. promising to deliver mortgage-backed securities on the settlement date sometime in the future. The TBA market developed in response to the demands of market participants for more liquidity in trading mortgage-backed securities.795 123.636 Discretely Presented Component Units 23.239 74.827.689 396.413 132.564 8.124.140 Type of Investment Lent For Cash Collateral Domestic Fixed Maturities Domestic Equity International Equity Total Lent for Cash Collateral For Non-cash Collateral Domestic Fixed Maturities Domestic Equity International Equity Total Lent for Non-Cash Collateral Total Securities Lent Type of Collateral Received Cash Collateral Cash Collateral .US Dollars For Lent International Equity Securities Securities Collateral US Dollar Total Non-Cash Collateral Total Collateral Received $ $ $ $ $ $ $ $ $ $ $ $ $ 178.686 4.068 15.US Dollars For Lent Domestic Equity Securities Securities Collateral . The Alabama Trust Fund (ATF) invests in TBA (to be announced) purchase commitments. 2010.506 $ 200. Mortgage-Backed Securities The State of Alabama invests in mortgage-backed securities to improve yield and adjust the duration of the State’s fixed income portfolio.296. Prepayments of the underlying assets reduce the total interest payments to be received.006.368 $ 205.872 256.529 386.695 120.055 231.120 590.228 1.265.155 RSA Fiduciary Component Units 1.964 4. obligors tend to prepay the mortgages thus eliminating the stream of interest payments that would have been received under the original amortization schedule.827.

647 Social Services 5.948 12. A significant portion of Infrastructure Construction in Progress consists of projects that have been put into service and maintenance costs could have been incurred but the project documentation is not complete. 2010.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.708 Education and Cultural Resources 3.598.958. Generally.887 957.865.819 944.316 186. these securities are closed with a gain or loss prior to settlement.455 550.881 905. Due to the documentation requirements.622 12.849 Transportation 23.316 627.040 1.346 1.658 122.761 $ 18.354.902.767 11.267.315 1.127 29. the ATF would be obligated for those amounts should the securities be delivered. there can be substantial time lags between the date a project is put into service and the date the project is capitalized.066 Health 8. The State elected to include the historical costs of all infrastructure assets.711 2.313 17.530 1.521 578.242 Decreases $ 135 60. net $ 242.105 353.257.347 4.589 247.694 959.742 1.208 12.333 (2.133 81.389 5.092 26. The State capitalizes infrastructure when all costs for a project are incurred and all project documentation is completed and filed with the appropriate entities.753 38.014. not just assets capitalized since 1980.534 $ 259.604 61.333 86 .808 29.898 377.294 Natural Resources and Recreation 7.291 Ending Balance $ 281.885 50.815 78.658 1.959 Increases $ 39.256 83.467 Protection of Persons & Property 21.127 41. the capital assets for the Primary Government and the Component Units are presented in the following tables: GOVERNMENTAL-TYPE ACTIVITIES (Amounts in Thousands) Beginning Balance as Restated Capital assets not being depreciated: Land Historical Exhibits Construction in progress Construction in progress .332 2.801 Total Depreciation Expense $ 81.574 Depreciation Expense for the current year is charged as follows: Economic Development and Regulation 2.540.915 186. net Governmental-type activities capital assets.638.043.658 145.589 622.007 313.708 1.525) $ 620.501 General Government 8.590 2.034 1. F.902 18.Infrastructure Infrastructure Total capital assets not being depreciated Capital assets being depreciated: Buildings Equipment Software and Other Intangible Assets Total capital assets being depreciated Less accumulated depreciation: Buildings Equipment Software and Other Intangible Assets Total accumulated depreciation Total capital assets being depreciated.989 1.702 $ 18. However.465 605.862 1. 2010 Net Assets is a liability related to the cost of acquiring these securities.916.038 5. As of September 30. 34. as required by GASB Statement No. Capital Assets Historical costs for infrastructure assets are included in this report.859 7.257 1.

977 10 309.350 224.618 1.464 786.248 1.174 5.304.886.383 726.879 3.690 2.287 Other Nonmajor Enterprise Funds 263 Total Depreciation Expense $ 64.BUSINESS-TYPE ACTIVITIES: (Amounts in Thousands) Beginning Balance as Restated Capital assets not being depreciated: Land Historical Exhibits Construction in progress Inexhaustible Intangible Assets Total capital assets not being depreciated Capital assets being depreciated: Buildings Equipment Software and Other Intangible Assets Total capital assets being depreciated Less accumulated depreciation Buildings Equipment Software and Other Intangible Assets Total accumulated depreciation Total capital assets being depreciated.046 275. net Business-type activities capital assets.998 3.665 39.380 5.798 4.307 1.091.791 Depreciation Expense for the current year is charged as follows: State Port Authority 27.693 81 64.649 187.792 1.709 $ 1.796 $ $ Decreases 2.845 470.397.446 3.011 $ $ Ending Balance $ 82.941 87 .482 42.350 114.718 485.710 253.947 210.437 509.831 1.554.218 2. net $ $ 82.005 993 153.728 1.257 10 199.743 533.202 152.590 42.441 Alabama College System 33.160.699 2.958 1.167 22.950 Alcoholic Beverage Control Board 3.248 2.016 Increases 2.504.470.941 145.147 161.053 1.596 150.621 2.643 48.

330 299.283 Increases $ 9.653 166.306 713.339 $ 880.374 Water Pollution Control Authority 21 University of Alabama 178.718.345 92.609 104 512.124 130.406.905 1.012 $ 551.479 117.557 2.215 34.819.617 514.415.330 $ Ending Balance 206.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. net $ 198.209 1.342 2.310.068 37. 2010 COMPONENT UNITS (Amounts in Thousands) Beginning Balance as Restated Capital assets not being depreciated: Land Historical Exhibits Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings Equipment Software and Other Intangibles Total capital assets being depreciated Less accumulated depreciation Buildings Equipment Software and Other Intangible Assets Total accumulated depreciation Total capital assets being depreciated.807 Decreases $ 1.319.900 4.089 8.582 448.304.853.438 1.844 516.327 596.971 465.118 1.889 Auburn University 49.957 4.853 80.126.455.943.499.842 444.730 103.080 6.441 21.601 43.139 115.011 88 .466. net Component Units capital assets.994 10.385 6.350 73.146 45.457 Depreciation Expense for the current year is charged as follows: Alabama Public School and College Authority 369 Mental Health 1.472 University of South Alabama 29.363 3.760 5.986 7.697 $ 5.011 414.094 807.900 1.370 $ 5.448 758.696.597 2.867 23.693 3.376 Total Depreciation Expense $ 299.183.925.292 8.329 State Employee Insurance Board 181 Other Nonmajor Component Units 39.

respectively.000 for 2006 bonds and borrowings of $1. or the probability weighted. The transactions resulted in an up-front payment to the University totaling $9. The interest rate swap value is calculated using an industry accepted option pricing model that uses market interest rates and volatility assumptions on the valuation date. A swaption is considered a hybrid instrument and as such the payment by the counterparty to the University must be bifurcated into two components.000 and is recorded in the accompanying financial statements in accordance with GASB Statement No. respectively. As the interest rate swap is a liability at September 30. expenses and changes in net assets. The University is also subject to interest rate risk. The values of the borrowings are included in long-tem debt on the University’s 2010 and 2009 statements of net assets. The objective of this transaction is to realize debt service savings currently from future debt refunding and create an economic benefit to the University. If the counterparty exercises its options in 2016 and 2016. For the year ended September 30. 2010. is effectively hedged by the University’s fixed rate bonds.000 and $100. If the option is exercised. the Authority issued variable-rate refunding bonds in an amount sufficient to refund the fixed rate Series 1996 revenue bonds.950. the interest rate swap had a negative fair value of approximately $16. Interest is being accreted on. discounted values of a range of future possible outcomes. although it is not anticipated that this option would be to the University’s advantage. at the counterparty’s option.In December 2002. and each component treated separately.997. Simultaneously. the swaptions would be canceled and the University would have no further obligation under this agreement.000 for the 2004 bonds and 2006 bonds. The change in the fair market values of the derivatives is reported as a component of investment income in the statements of revenues. a borrowing component and an embedded derivative component.069.38%) and the Authority receiving a variable interest rate (67% of the one-month LIBOR). the University of South Alabama entered into a synthetic advance refunding of the outstanding Series 2004 and 2006 bonds with a counterparty. the borrowing through the expiration date of the option. be forced into an underlying swap. 2021. The initial value of the borrowing is the difference between the upfront payment and the fair value of the embedded derivative and represents the time value to the counterparty for holding the option. Interest Rate Risk. The fair values of the embedded derivatives were estimated using the zero-coupon method. Alternatively. 53 as an investment derivative instrument.327.327.070. If the interest rate environment is such that the counterparty chooses to not exercise its option. in exchange for selling the counterparty the option to enter into an interest rate swap with respect to the Series 2004 and 2006 bonds in 2014 and 2016.000. 2010.G. which may cause the value of fixed rate bonds or interest rate derivatives to 89 . This transaction was effected through the sale of two swaptions by the University to the counterparty. as a result of changes in long term interest rates. Interest rate risk. 2010. Upon exercising of the option by the counterparty. The interest rate and volatility data is used to calculate the present value of the potential future cash flows of the swap. of the underlying swap contract. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement. and added to. the impact of credit risk is minimized. 2010. The embedded derivative value of the swaptions represents the fair value resulting from the fact that the fixed rate stated in the swaptions is greater that the at-the-market rate. with the Authority paying a fixed interest rate (5.000 for 2004 bonds and $3. the University would call outstanding 2004 and 2006 bonds and issue variable rate demand notes (VRDNs) in their place. the Alabama State Port Authority entered into a swaption contract with an investment company in order to monetize potential debt service savings on the Authority’s callable 1996 Series bond. The Authority may be exposed to various risks such as credit risk and interest rate risk through the interest rate swap. as a result of rising short-term interest rates causing higher interest rate payments.9753% on the 2004 bonds and 5.000 for 2006 bonds. Derivatives Alabama State Port Authority .0% on the 2006 bonds to the counterparty and would receive payments based on 68% of the one-month LIBOR index. At September 30. If the counterparty exercises its options. the University would pay a fixed rate of 4. which was recorded as a liability.000 at September 30.125. currently $41. Under the swap contract.000). the University could. at its option. valued at $59. Fair Value. This method calculates the future net settlement payments required by the instruments.328.000). 2006. the University would begin to make payments on the notional amount. The fair values of the embedded investment derivatives are reported as noncurrent liabilities. The values of the derivative and borrowings at the date of execution of this transaction are embedded derivatives $918. assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. the changes in the fair value of the derivatives were $(3.343. and expires on October 1.344. the embedded derivatives had fair values of $(13. As of September 30.In January 2008.000. University of South Alabama . At September 30. 2010 and 2009. The swap agreement is based on an original notional amount of $60.000 for 2004 bonds and $3.125. The swaption gave the counterparty the option to enter into a variable-to-fixed interest rate swap at a specified future date. cash settle the swap and retain its right to refund the 2004 and 2006 bonds. the underlying swaps are expected to effectively hedge the potentially higher payments on VRDNs as well.000) and are included in other long-term liabilities in the accompanying statements of net assets. 2010. 2006 and the interest rate swap commenced on October 1. the fair values of the derivatives are approximately $(13.000. the University would. The counterparty exercised its option on July 18.

if the fair value of the swap is positive. 90 . The valuations were calculated on a mid-market basis and do not include bid/offer spread that would be reflected in an actual price quotation. If the counterparty exercises its option. the University would still be required to begin making periodic payments on the swaps. In that situation. $18. 2008. The RSA uses these derivative instruments to make an investment.000 with respect to the Series 1999-C Bonds and $153. If long term interest rates fall subsequent to the execution of this transaction.152).C. The valuations were calculated mathematical approximations of market values derived from proprietary models as of September 30. these investments were used exclusively within the RSA’s domestic and international equity portfolios and are presented in the financial statements in their respective equity classifications. Basis Risk. The Swap Option Agreement is currently in litigation and no payments have been made and accepted. 2010. If the University is unable to issue variable rate bonds after the counterparty exercises its right under the swaptions. Market Access Risk. the Swap Option Agreement had a value of approximately $(32. Termination Risk. $254. effective November 1. which may create a substantial cash outlay. Under the terms of the Swap Option Agreement. with respect to the Authority's Series 1998 Bonds.000 with respect to the Series 1999-D Bonds. no events of termination have occurred.125. 2010. Series 1999-C Bonds. and on August 1 in the years 2009 through 2011 for the Series 1999-D Bonds.700. there is a risk that the floating payments received under the swaps will not fully offset the variable rate payments due on the assumed VRDNs. Although the underlying swap exposes the University to credit risk should the swap be executed. or as a yield enhancement strategy. the swaption itself does not expose the University to credit risk. control risk with certain investment positions.000 from JPMorgan in return for an option to enter into fixed payer interest rate swaps with respect to each of the Swap Bonds in the notional amounts of $283.715. During the fiscal year. the swap counterparty was rated Aa2 by Moody’s Investors Services and AA by Standard and Poors Rating Services. the University could choose to liquidate the swaps. 2002 (the "Swap Option Agreement"). The Swap Option Agreement was subsequently amended on January 16.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. The change in the fair market values of the derivative of $43. The University may be required to terminate the swaptions or swaps under certain circumstances. 2009. The fair value is reported in other noncurrent liabilities on the Statement of Net Assets.000 with respect to the Series 1998 Bonds. July 1 in the years 2009 through 2011 for the Series 1999-C Bonds. Alabama Public School and College Authority (Authority) . JPMorgan notified the Authority that it was seeking $122. the value of the swaptions will change. The Retirement Systems of Alabama (RSA) .The RSA enters into call and put options. the University may owe a substantial amount of money to terminate the contracts.804 in termination payments allegedly due under the Swap Option Agreement. This transaction assumes that VRDNs will be issued as a replacement of the 2004 and 2006 bonds.587. As of September 30. 2009. with negative consequences for the University. Investment risks related to investment derivatives have been considered and included in the respective investment risks notes above in Note 3. even thought there are no related bonds.. (See Litigation Note) By letter dated May 14. The fair value of the investment derivatives are based on market prices.The Authority and JPMorgan Chase Bank (JPMorgan) entered into a Master Agreement dated March 13. Such option is exercisable by JPMorgan upon 150 days prior written notice on November 1 in the years 2008 through 2011 for the Series 1998 Bonds. the University would be exposed to credit risk on the swap in the amount of its fair value. the effect of which under the Swap Option Agreement would have been to require the Authority to issue variable rate bonds for the purpose of refunding the Series 1998 Bonds. such as credit downgrades or other events specified in the contracts.000 with respect to the Series 1999-A Bonds. September 1 in the years 2009 and 2010 for the Series 1999-A Bonds. If the option is exercised on one or both issues.008.412. 2010 change. 2010. the University would begin to make payments on the appropriate notional amount of the underlying swap contract. These derivative instruments are either listed options or executed in the over-the-counter (OTC) market using only credit worthy counterparties. 2003. the "Swap Bonds"). As of September 30. JPMorgan notified the Authority of its intention to exercise its option with respect to the Series 1998 Bonds. Series 1999-A Bonds. and Series 1999-D Bonds (collectively. Alternatively.147. At September 30. In the event that a position needs to be terminated. the Authority received certain lump sum payments in the amount of $12.675.714 gain is reported on the Statement of Activities as investment earnings. Credit Risk.

271 1.. 53 requires that the fair value of the financial arrangements called “derivatives” or “derivative instruments” be reported in the financial statements of state and local governments. All of the ATF’s derivative exposures as of September 30. 53 are not applicable. ATF’s custodian Bank of New York Mellon (BNYM) uses market prices when available.C.The following table presents the investment derivative instruments outstanding as of September 30.973 40. The two vendors used by BNYM are Markit. ATF Investment Policy allows derivative instruments to be used provided that the collateral is held in highly liquid securities and that they do not create the effect of leverage in the portfolio. and SuperDerivatives.271 Alabama Trust Fund (ATF) .Derivatives can be used by the ATF’s investment managers to manage cash positions. are categorized as investment derivatives and therefore the hedge accounting provisions of GASB Statement No. All derivative instruments are presented in the financial statements and are reported at fair value. 91 . GASB Statement No. 2010 (in thousands).385 Investment Income Investment Income $ $ 86 Domestic Equity 99 International Equity 185 Totals $ $ (27) (109) (136) $ 4. as reported in the Statement of Plan Net Assets and Statement of Changes in Plan Net Assets: Investment Derivative Instruments Changes in Fair Value Classification Amount TRS Domestic Options Written International Options Written Total Options Written ERS Domestic Options Written International Options Written Total Options Written JRF International Options Written Total Options Written Investment Income Investment Income $ $ Fair Value Amount $ $ (50) (228) (278) Classification Notional $ 9.157 160 Domestic Equity 207 International Equity 367 Totals $ 94.645 Investment Income $ 3 International Equity 3 Totals $ (3) (3) $ 1. Both vendors consider their valuation process to be proprietary and not available for disclosure.228 85. The statement further requires that derivatives be categorized as either an investment derivative or a hedge derivative. BNYM used two vendors to value derivatives when market values are not available.672 $ 45. 2010. gain broad stock or bond market exposure and to manage risks with certain investment positions. Investment risks related to investment derivatives have been considered and included in the respective investment risks notes above in Note 3.

2010 The following table presents the derivatives instruments outstanding as of September 30.105 (2.848.188.427 $ 3.186.335 $ 56.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.131.848.714.190.335 78.562 Forwards Total Forwards Investment Income $ (611.499) $ $ Fair Value as of September 30.991) Futures Total Futures Investment Income $ 78.921.562 3.748) (611.039) 92 .025 (2.000) (30. 2010 for ATF: Investment Derivative Instruments Changes in Fair Value Classification Credit Default Swaps Interest Rate Swaps Total Swaps Investment Income Investment Income $ Amount 2.427 56.507.748) $ (611.039) (20.921.991) (23.801) $ $ Notional (6.221.748) $ (20. 2010 Amount 55.748) (611.524) $ (2.906) (2.

000) (3.790. Presented below are all applicable derivative instruments.000) $ (23.000) (2. based on the fair value of the instrument at the end of the fiscal year.021) (248.GASB Statement No.000) (2.000) (2.000) (810.000) (1.25% Receive US 3 Month rate Pay 3.514) (229.533.000) (2. Type Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Totals $ $ Fair Value (214.330. The maximum amount of loss associated with all derivatives held by the ATF is $987.000) (830. 53 also requires additional interest rate risk disclosures for investment derivatives that are highly sensitive to interest rate fluctuations.140.6% Receive LIBOR 3 Month rate Zero Coupon US 3 Month rate Zero Coupon LIBOR 3 Month rate Zero Coupon LIBOR 3 Month rate Zero Coupon LIBOR 3 Month rate Zero Coupon LIBOR 3 Month rate Zero Coupon LIBOR 3 Month rate Pay 3. GASB Statement No.646) (101. 53 requires the disclosure of the maximum amount of loss due to credit risk.843) (132.885.400.32.973) (128.142.938) (2.25% Receive US 3 Month rate Pay 3.936) (227.060.25% Receive US 3 Month rate Pay 3.942) (211.831) (99.584) (256.906) Notional Amount $ (3.090.186.678) (334.507.000) (3.69% Receive LIBOR 3 Month rate 93 .000) (1.030.000) Maturity Date 9/16/2019 9/17/2019 9/18/2019 3/17/2020 2/15/2025 2/15/2025 2/15/2025 2/15/2025 2/15/2025 11/15/2027 7/26/2040 Reference Rate Pay 3.

leaving an outstanding balance of $352. grants.291. c.997. It is expected that in fiscal year 2011. 2010. a. a component unit.917.030. bond proceeds.000. which is expected to be financed from private gifts. 2010.000 from fiscal year 2011.000 for fiscal year 2011 and $17.000. The amount already performed was $2.000 for fiscal year 2011. therefore disclosure of minimum future lease payments is not provided. a component unit.000. 2010 NOTE 4 .000 in economic development grant commitments to meet for which the funding source has not yet been decided.549. 2010. has committed $4. 2. bond proceeds and University funds.000 million which is expected to be financed from private gifts. The estimated remaining costs to complete the facilities was approximately $68. Component Units The University of Alabama at Birmingham had construction and renovation commitments remaining at September 30.000 payable from University funds and bond proceeds.000 is expected to be paid in fiscal year 2012 or later from appropriations.046. Component Units The Alabama Incentives Finance Authority.000.752. All of these grant commitments will be paid in 2012 or beyond. therefore they are not included above as either primary government or component unit. b. a component unit. The remaining $140.343.000 of commitments will be paid from appropriations.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.383. the Department of Transportation had construction and maintenance contracts of $2. These leases do not represent material commitments by the State.000 from fiscal year 2012 and beyond. The Twenty-first Century Authority. The funding sources for this amount are 83 percent Federal funds and 17 percent state and local funds. Jacksonville State University had commitments on construction projects of $1.805.000.000 from prior year carry forward dollars. The University of Alabama at Tuscaloosa had construction and renovation contract commitments for several facilities at September 30. Construction Projects a.000.060. $23. The State Port Authority has contracts for several projects with estimated costs to complete of approximately $52 million.621.000. Operating Leases The State and its component units have entered into various lease agreements for real property. Commitments 1. State Entity The State as a whole has an additional $161. 3.028. and University of Alabama at Birmingham reserves. The Public Health Care Authority had total contracts for construction and repair of county health department buildings of $1.125.000 will be paid from existing general obligation bond proceeds. The Alabama Public School and College Authority. as well as the training costs of employees. 2010. Economic Development The State and its component units have made a variety of economic development grant commitments to the private sector to finance the cost of industries locating and expanding in the State. has committed to economic development grants of $3.LIABILITIES A. $17. b. has committed to economic development grants of $110. 2010 of approximately $68.448. Primary Government At September 30. Auburn University had construction and renovation contracts for various facilities that are estimated to cost approximately $703. At September 30. and $126. 2010. At September 30. grants. Primary Government The State has committed to economic development grants totaling $308.478.000 as of September 30. 94 .000 at September 30.645.400.000. 2010. the estimated remaining cost to complete the projects was approximately $317.

000 this year. The amount outstanding is $4. surety bonds and guarantees provided by third parties. Lieutenant Governor. C. usually earmarked taxes or revenues generated from the project financed. economic development grants. regarding Alabama’s unconstitutional foreign franchise tax. Depending on the GASB criteria discussed in Note 1. to support its single-family mortgage loan origination and warehousing operations. State Treasurer.000 of its unrestricted net assets for fiscal year September 30. Certain revenues. The State has followed the practice of financing certain capital improvements by issuing debt through such public corporations. and the Director of Finance serve as board members of these corporations. not general obligations of the State. Although conventions proposed by the legislature and approved by the electorate may be called for the purpose of amending the Constitution. Revenue bonds were issued by Alabama Housing Financing Authority. student loans. In most instances. the State is constitutionally prohibited from incurring debt except to repel invasion or suppress insurrection. a component unit. public educational facilities. 2010 is $4. and accordingly. The State paid each University the final payment of $1. letters of credit. The legislature (through enabling legislation) and the Governor (by executive order) have created public corporations and authorities of the State for the purpose of financing projects and programs such as public highways.767. Conduit Debt Troy University. Therefore. as modified by Amendment 26. and to cover its operating expense budget for the following fiscal year. A settlement agreement was made between the State and BellSouth Telecommunications. Multifamily mortgage loans are collateralized by varying methods. 2010 for funding of future single-family mortgage revenue bond programs. The total amount of outstanding conduit debt as of September 30.767. judicial buildings. a component unit. Attorney General. some of these corporations are reported by blending them with the primary government and some are reported discretely. which constituted conduit debt outstanding at year-end totaling $201.000. The bonds do not constitute a debt or pledge of faith and credit of the University or the State of Alabama. The State must pay BellSouth $4. issued Special Limited Obligation Revenue Bonds Series 1997 to provide athletic facility improvements for Sartain Hall and Memorial Stadium. the only method under which general obligation debt can be incurred is by amendment to the Constitution. historically all amendments have been adopted by a procedure which requires them to be proposed by a three-fifths majority of each house of the legislature and thereafter ratified by a majority of the electorate. and the full faith and credit of the State is not pledged for their repayment. The Education Trust Fund was used to liquidate this debt. The State also enters into lease purchase agreements which are reported in accordance with generally accepted accounting principles as capital lease debt or notes payable. The Authority does not actively monitor the operating performance or financial condition of the multifamily properties financed by the bonds. so the total amount outstanding is $0. Other Commitments The Alabama Housing Finance Authority.4. B. state officials such as the Governor. Long-term Debt 1. a component unit. are pledged for the payment of the debt.000. The bonds are limited obligations of the City of Troy and are payable entirely from the amounts received under the indenture. 95 . The revenue bonds issued by these corporations are limited obligations of the corporation. have not been reported in the accompanying financial statements. and other projects. D. affordable housing.060. including first-liens on multifamily residential rental properties located within the State of Alabama.110. Debt Limitations and Methods of Bond Issuance Under Section 213 of the Constitution of Alabama of 1901. These bonds do not constitute a debt or pledge of the faith and credit of the Authority or the State of Alabama. The General Fund is being used to liquidate this debt.000 to provide multifamily housing for the citizens of Alabama.000 for the next year in the form of actual payments and tax credits. and it is not reflected in the accompanying financial statements.640. Claims and Judgments A judgment was entered against the State in favor of Alabama State University and Alabama A&M University. Inc. The Supreme Court of Alabama has ruled that the debt prohibition does not apply to debts incurred by separate public corporations functioning as state instrumentalities.000. has designated $69.

781) $ 769. youth services facilities. agricultural development. State Port Authority’s facilities. Mobile harbor.000 $ 34.000 29.145.000 1.000 105. educational television.562.000 $ 320.057 (6.000 47.250.001 252.609 41.079. diagnostic and research laboratories.538 $ 34.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.609 73.930.538 96 .620.132.705.985.360 253.330.000 31.575 16.122 72.580. Capital appreciation bonds are sold at a deep discount and do not pay any interest until the bonds mature.886.571.689.000 27. mental hospitals.136. 2.646. The full faith and credit of the State is pledged for the payment of the bonds.122 43. forensic sciences laboratories. General Obligation Bonds – Governmental Activities The State has general obligation bond issues outstanding for the purpose of financing major capital projects for: state waterways.062. the bonds increase in value as semi-annual interest is earned and is compounded from the original issuance date to the date of maturity.978.001 357. 2010 The State and its component units issue serial and term bonds and capital appreciation bonds.187. Based on the original offering price. state buildings.551.000 32.643. The issuance of this type bond postpones the cash flow until the bonds mature or are called. The increase in the value of the bonds is referred to as accretion.276 Total 59.397.269 80.000 741.269 91.567. prisons.117.000 11.514 44. state parks.075.358.088 64. conservation and preservation projects.575 14.000 1.161.360 205. The following schedule shows the general obligation annual debt service requirements and is followed by a detailed table describing each individual general obligation bond issue outstanding: Maturity 2011 2012 2013 2014 2015 2016-2020 2021-2025 2026-2030 2031-2035 Total Unamort Prem Unamort Loss GENERAL OBLIGATION BONDS Debt Service Requirements to Maturity Principal Interest $ 25. bridges. General obligation bonds also finance grant programs for public school and college buildings. and historical projects.514 72. as well as economic development grants to industry and local government.834.272.088 $ 32. the State Coliseum.790. roads.969.890.390.650.

765.562.000. on funds held by the State Treasurer. amounts received in the event of condemnation of the building.0% to 5.004 for Series 2002-A.771.643.675.000 37. Transfers received from the Department of 97 . and earnings. if any on funds held by the Trustee.620 for Series 2010-C and $9. The Montgomery Downtown Redevelopment Authority issued bonds to fund the construction of the Gordon Persons Building.230 for Series 2005-A. and $5. amounts payable by MBIA under the Insurance Policy. Revenue Bonds a.0% to 5.000 12.0% 3. $618.488 for Series 2010-A. Primary Government – Governmental Activities The Alabama Corrections Institution Finance Authority issues bonds for the purposes of acquiring land and constructing correctional institutions. $7. operation.906. 30.370.3% to 3. Series E .880. & Industry Recruitment Series 2007 . earnings. and capital improvements of judicial facilities.276 $ ‡ Unamortized premiums were $546.180.0% 3. proceeds of insurance in the event of damage or destruction of the building. & Industry Recruitment Series 2010 Series A . and funds received by the Trustee in the event of any foreclosure sale of the building.840.Refunding Bonds Series B . The Authority also receives income from the rental of the office buildings to state agencies. Series 2010-C.195 for Seri es 201 0-D.0% 3.0% to 3. reconstruction.0% to 5.0% 5. The Alabama Public Health Care Authority issues bonds for the purpose of funding the acquisition. construction. Debt service is payable solely from the revenues and receipts paid pursuant to leases. construction. †† Unamortized accounting losses were $1. The bonds are payable from revenues and receipts paid by the Judicial System pursuant to the lease.931.832 for Series 2010-C.0% 3.463 for Series 2010-B.263.915 for S eries 2010-B.Economic Develop. $3.000 62. 2010 4. amounts on deposit in the Reserve Fund held by the Trustee. The Alabama Judicial Building Authority issues bonds for the purpose of funding the acquisition.932. The Alabama Building Renovation Finance Authority issues bonds to provide funding for the renovation.000 273.41 9.000 84.0% to 5.004.0% to 3.Refunding Bonds Series C .0% 5.141 for Series 2001-E.0% to 5. $3.Public Historical Sites & Improvement Corp.000 64.795 for Series 2007-A.000 110.000 34.General Obligation Issue Series 2001 Series D . $6. if any.0% Bonds Payable Sept.5% to 5.5% to 5.000 54.025.Refunding Bonds Series D .330.0% 4. $648. and maintenance of public office buildings in the state capitol complex. $294.Economic Develop.085.250.Economic Development Series 2005 Series A .Capital Improvement Bonds Series 2002 Series A .057 (6.0% 3. The bonds are payable from revenues derived from payments under a lease agreement between the Authority and the Department of Corrections.Economic D evelopment Sub-total General Obligatio n Bonds ‡ Plus: Unamortized Premiums †† Less: Unamo rtized Loss Total General Obligation Bonds GENERAL OBLIGATION BONDS PAYABLE Final Interest Date Maturity Rates Issued Date 06/01/01 11/01/01 09/01/02 02/01/05 02/01/06 08/01/07 03/23/10 03/23/10 05/11/10 05/11/10 09/30/21 09/01/21 09/01/22 08/01/25 02/01/26 08/01/27 06/01/21 06/01/21 06/01/21 06/01/32 4. The bonds issued by the Authority are payable from the rents received by the authority under lease agreements.781) 769.352 for Series 2006.805 for Series 2010-A.000 741. and equipping of buildings located in each county for the use of the Department of Public Health.0% 4.Universities and Economic Development Series 2006 . $868.000 37. 3.430.

977 for Montgomery Downtown Redevelopment Authority. surfaces.162 4.00% to 5.50% to 5. streets.000 26.410.436 for Federal Aid Highway Finance Authority. or any other work which is eligible for federal aid financing assistance under Title 23.416.000 28.30% to 5. The Series 2008-B bonds will bear interest at a rate of 50 basis points plus LIBOR. and $329. 2010. road sides. The Authority issued Series 2010 Docks Facilities Revenue Bonds during 98 .815.405. The rate at 9/30/10 was 1.000 52. The rate at 9/30/10 was 2. 2010.000.473. and a Municipal Bond Insurance Policy are used for the payment of principal and interest on the bonds.213. At September 30.000 27. At September 30. PRIMARY GOVERNMENT Governmental Activities Revenue Bonds Alabama Corrections Institution Finance Authority 2003-A Refunding Bonds 2003-B Term Bonds Montgomery Downtown Redevelopment Authority Series 2002 Alabama Building Renovation Finance Authority Series 2006 Series 2010 Alabama Judicial Building Authority Series 2007 Bonds Alabama Public Health Care Authority Series 2005 Alabama Federal Aid Highway Finance Authority Series 2002-A Sub-total Revenue Bonds Payable ‡ Less: Unamortized Discounts § Plus: Unamortized Premiums †† Less: Unamortized Loss Net Primary Government Revenue Bonds Payable. $75. the outstanding principal balance of the 2009-A bond anticipation note was $29.00% to 4.969. resurfaces.700 for Judicial Building Authority.000 16. At September 30. shoulders. bridges.00% to 5. structures. guard rails. The Alabama Federal Aid Highway Finance Authority issues bonds for the purpose of funding the costs of constructing any roads. open storage area.715.360.943. of the United States Code and applicable regulations.388 for the Alabama Building Renovation Finance Authority.50% 5. parks. Governmental Activities ‡ Unamortized Discount $421. Final Date Issued 01/01/03 01/01/03 08/08/02 08/01/06 07/21/10 10/01/07 09/28/05 04/01/02 Maturity Date 10/01/13 04/01/15 10/01/13 09/01/31 09/01/24 11/01/18 09/01/35 09/01/17 Interest Rates 3. along with income from investing idle funds. 30.26%.25% to 4. $946.837 for Public Health Care Authority. The bonds are issued in anticipation of the receipt by the State of the federal share of the costs. $557. $199.000.848 for Judicial Building Authority.17%. The bonds are secured by the gross revenues of the Authority derived from charges made by the Authority for all services provided.968 (2. railroad crossings. drainage structures.214) $ 274. § Unamortized premium is $1.00% 2. $2.527 for Montgomery Downtown Redevelopment Authority. the outstanding principal balance of the 2008-A bonds was $60.25% b. warehouse. 2010.347 for Alabama Corrections Institution Finance Authority. †† Unamortized accounting losses were $1.380.000.000 271.00% 3. Chapter 1. 2010 5. 2010 Public Health.00% to 3.312 for Alabama Corrections Institution Finance Authority $792.810 for Building Renovation Finance Authority and $907. Primary Government – Business-Type Activities The Alabama State Port Authority issued bonds for the construction and maintenance of a wharf.00% 5. The rate at 9/30/10 was 2.56%.000 (421.592) 5.298. right of ways.283.00% 4. interstates.730. and other port facilities at Mobile Bay.00% 2.000 4.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. The Series 2008-A bonds will bear interest at a rate of 100 basis points plus 67% of LIBOR (London Interbank Offered Rate).990.000. signs.000.000 110. the outstanding principal balance of the 2008-B bond anticipation note was $50.470.50% to 4.592 for Public Health Care Authority.00% $ Bonds Payable Sept.

000 55.689.497 0 0 87.000 9.000 25.786 $ 426.000 26.000.00% 4.000 11.230.450. 30.226 99 .152.000 29.230.000 60. the 2008-B and 2009-A debt is shown as long-term as of September 30.60% to 7.775 87.709.592) 0 274.000 21.000 107. Most were issued for the construction.839 (9. dining facilities.236. 2010.255.265.65% $ Bonds Payable Sept.969.283.189.040. Proprietary Funds State P ort Authority Series 2006-A Series 2006-B Series 2006-D Series 2008-A Final Maturity Date 10/01/36 10/01/36 10/01/30 10/01/21 12/10/10 12/01/10 Various Date Issued 11/01/06 11/01/06 12/07/06 04/01/08 Interest Rates 4.282.815. Proprietary Funds § Less: Unamortized Premium †† Less: Unamortized Loss Net Primary Government Revenue Bonds Payable.000 274.200.039 271.295.235 .000 5.566.943.000 27.000 20. †† Unamort ized accounti ng losses were $9. and acquisition of buildings for various purposes. student centers.000 50.600.020 24.000 2.000 59.000 6.438 128.485.189.214) (9. renovation.235.839 (2.50% to 5.631 28.749 25.063.109.50% to 5.715.106 21. The Alabama College System has numerous bond issues outstanding for a variety of purposes.610.533.000 $ 28.945.December 2010.933.968 4.563 $ 23.000 8.759 24.613 for Alabam a State Port Authority.354.162 $ 638.470.072.730.839 for Alab ama St at e Port Auth orit y.101 26.000 643.566 28. Maturity 2011 $ 2012 2013 2014 2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 Total Unamort Prem Unamort Loss Unamort Disc $ Revenue Bonds Debt Service R equirements to Maturity Governmental Activ ities Business-type Activities Principal Interest Principal Interest 27. dormitories.063.432 71.226 Series 2008-B 07/09/08 Series 2009-A 11/03/09 Alabama College System Various Sub-total Revenue Bonds Payable.00% Variable Variable Variable Variable 1.850.235.000 34.000 80.535.613) 638.613) (421.180 29.350. The Series 2010 debt has refunded the 2008-B and 2009-A debt with long-term debt.979. Proprietary Funds $ § Unamort ized premi um $4.802 $ 89. research facilities.672.995. PRIMARY GOVERNMENT Business-Type Activities Revenue Bonds.000 26.480. and as such.990.036.060 24.000 $ 12.000 6.589 28.000 14.235. including classrooms.625.336.600 81.109. 2010 147.270.133 128.560.000 643.824 17.000. and athletic facilities.160.000 4.189.945.065.000 11.298.235.875.

construction. which established the Federal Family Education Loan Program. mortgage loans. At September 30. The proceeds are used to purchase student loans and fund operating costs of the corporation.400. proceeds from any sale of loans and issuance of refunding bonds. The Alabama Mental Health Finance Authority issues bonds for the acquisition. dormitories. 2010. The Alabama Higher Education Loan Corporation issues bonds to provide Alabama lending institutions with a secondary market for student loans made under the Higher Education Act. and athletic facilities. The interest rate for the 2006A-1 and 2006-A2 bonds is an auction rate based on an auction period of 35 days. the rate for the 2006-A1 was 0. as amended. 2010 c. Revenue from the sales and use taxes. monies. Substantially all of the Authority's assets are pledged as security for the bonds. Revenues from certain tobacco and liquor taxes are pledged for the payment of principal and interest on these bonds. designing.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.000. The corporation issues tax-exempt revenue bonds in order to fund its operations. acquiring. The bonds are secured by a lease of the facilities to the Space Science Exhibit Commission as well as a pledge of all revenues of the Commission. 100 . dining facilities. The State Industrial Development Authority issues bonds for the purpose of financing projects that promote the industrial development of the State. research facilities. S. The Alabama Water Pollution Control Authority issues bonds to provide funds for the purpose of making loans to certain local government units to construct sewage treatment plants and related facilities. 2010. The Alabama Revolving Loan Fund Authority issues bonds for the purpose of making grants to the Regional Planning and Development Commissions which are utilized by the grantees as revolving loan funds. student centers. as described in the applicable trust indenture.455%. Revenues from privilege and license tax on providers of cellular radio telecommunication services are used to pay the debt. The Alabama Twenty-first Century Authority issues bonds for the purpose of promoting economic development and industrial recruitment for the State of Alabama. the outstanding principal balance of the 2009-A bonds was $4. Component Units The Alabama Incentives Finance Authority issues bonds to fund financial commitments to industries relocating to Alabama under the terms of the State’s Industrial Incentives legislation. by all revenues.106% and the rate for the 2006-A2 was 0. Each bond issue is secured. The interest rate was 4. the leasing tax. including classrooms. Proceeds from loan agreements are used for payment of debt service related to the bonds. The interest rate is variable and equal to 70% of LIBOR plus 3%. Proceeds from the loan agreements are used for payment of debt service related to the bonds.3%. interest. interest income from investments. Revenues from cigarette and tobacco taxes are pledged for the payment of these bonds. The Alabama Housing Finance Authority issues bonds that are limited obligations of the Authority and are not a debt or liability of the State. but at no time less than 4.3% as of September 30. guaranteed payments on defaulted loans. Revenues from the Tennessee Valley Authority to the State “in lieu of taxes” are pledged for the payment of these bonds. 2010. and other assets in the funds and accounts of the program. and equipping of mental health facilities. The bonds are special obligations of the Authority payable solely from the Trust Estate created under the Indenture. and special allowance payments from the U. hospitals. The bonds are repaid from principal repayments on student loans. The Alabama Drinking Water Authority issues bonds to provide funds for the purpose of making loans to local governments for planning. and acquisition of buildings for various purposes. At September 30. renovation. The boards of the various institutions of higher education have numerous bond issues outstanding for a variety of purposes. improvement. or constructing sanitary drinking water and related facilities. The Alabama Space Science Exhibit Finance Authority issued bonds to finance the construction of the Space Camp and related housing facilities for the campers. Department of Education. and the utilities gross receipts and use taxes are pledged for the payment of these bonds. The Alabama Public School and College Authority is authorized to issue bonds to construct and improve educational buildings. investments. Most were issued for the construction.

50% 3.00% to 4.COMPONENT UNITS Revenue Bonds Alabama Incentives Finance Authority Series 2009-A Series 2009-B Series 2009-C Alabama Public School and College Authority Series 2001-A Series 2002-A Series 2002-B Series 2003 Series 2005 Series 2006 Series 2007 Series 2008 Series 2009-A Series 2009-B Series 2009-C Series 2009-D Series 2010-A Series 2010-B Series 2010-Q State Industrial Development Authority Special Tax Bonds.00% to 5.000 422.63% 5.00% 4.595.360.00% to 5.732.00% 5.00% 5.945.50% to 3.00% 1.880.980.010.00% 5.000 80. 2010 23.00% to 4.00% to 2. Series 2003 Mental Health Finance Authority Series 2005 Alabama Twenty-first Century Authority Tobacco Settlement Revenue Bonds.00% 5.00% to 5.727.980.15% to 5.040.00% 5.000 1.775.000 2.13% 5.50% 5.000 34.00% to 3.00% to 2.97% 3.003.000 69.768.93% to 4.00% 5.095.605.000 159.50% to 3. Series 2001 Alabama Revolving Loan Fund Authority Series 2000 Sub-Total Revenue Bonds.00% 4.000 33.330.000 8.000 650. 30.00% 5.000 26.000 45.000 109.76% to 4.00% to 3.00% 5.000 97.000 70.18% to 8.000 2. Series 2000 Tobacco Settlement Revenue Bonds.25% to 5.690.00% to 3.00% 4.985.800.705. Component Units Continued on next page Date Issued 09/17/09 09/17/09 09/17/09 05/15/01 08/22/02 12/01/02 12/01/03 02/01/05 03/01/06 12/05/07 02/05/08 10/21/09 10/21/09 10/21/09 12/03/09 04/14/10 04/14/10 09/14/10 01/01/03 06/01/05 09/01/00 12/01/01 03/01/00 Final Maturity Date 09/01/29 09/01/29 09/01/29 02/01/21 02/01/22 12/01/28 02/01/23 08/01/25 03/01/26 12/01/27 02/01/28 05/01/24 05/01/19 05/01/29 12/15/25 05/01/19 05/01/14 03/01/27 07/01/13 06/01/15 12/01/20 12/01/19 03/01/20 Interest Rates 3.605.00% to 6.00% to 4.000 75.000 46.76% 5.75% 8.25% 5.000 154.000 145.000 98.000 35.00% 4.50% to 4.15% $ Bonds Payable Sept.00% to 4.25% to 5.285.110.00% to 5.000 17.000 7.18% $ 101 .780.800.

Series 2003-C Revolving Fund Loan Bonds. Series 2010-A Revolving Fund Loan Bonds. Series 2002-A Refunding Bonds.000 5.440. Continued Revenue Bonds Sub-Total from previous page Alabama Housing Finance Authority Single family Bond Programs Alabama Water Pollution Control Authority Refunding Bonds. Series 2004-A Revolving Fund Loan Bonds. 30.550.00% to 5.500.00% 3.000 25.705.000 18.00% to 4. Series 1997 Revolving Fund Loan Bonds.00% to 4. Series 2002-A Revolving Fund Loan Bonds.300.000 56. Series 2002-B Revolving Fund Loan Bonds.000 33.000 38.00% to 4.765.105. Series 2006-A1 Student Loan Revenue Bonds.77% 4.000 23.000 3.155.000 102 .63% 4.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.35% to 8.00% 4.080. Series 2000-B Revolving Fund Loan Bonds.780. Series 2000-A Revolving Fund Loan Bonds.625. Series 1998-A Revolving Fund Loan Bonds.38% 2.000 5.00% 4.000 43.000 3.10% to 6.357.00% 2. Series 2000-C Revolving Fund Loan Bonds.715. Series 2004-A Revolving Fund Loan Bonds.750.10% 3.00% to 5.400.50% to 4.00% to 4. Series 2003-A Revolving Fund Loan Bonds. Series 2000 Revolving Fund Loan Bonds.00% to 4.000 1999-2010 10/01/97 12/01/00 01/15/02 02/01/02 01/01/03 01/01/03 08/01/03 04/01/04 02/01/08 06/21/10 08/02/10 09/01/98 02/01/00 02/01/00 12/01/00 01/01/02 12/01/03 12/01/04 10/01/05 2015-2039 08/15/12 08/15/23 08/15/24 08/15/14 08/15/26 02/15/16 08/15/15 08/15/16 08/15/29 08/15/23 08/15/21 08/15/22 08/15/21 08/15/21 08/15/23 08/15/24 08/15/21 08/15/28 08/15/28 Various 4.000 Date Issued Final Maturity Date Interest Rates $ Bonds Payable Sept.46% 2.385.30% to 5.50% to 5.490.870.900.85% 4.75% 3.33% to 4.00% 8.000 64.50% 3.000 18.964.25% 2.00% 3.325.40% 3.750. Component Units Continued on next page 05/01/05 09/25/10 11/27/06 11/27/06 Apr 2026 09/01/29 03/01/33 11/01/41 5.000 28. Series 2003-B Revolving Fund Loan Bonds.000 24.50% 4.000 36.00% to 4.000 30.00% 3.000 9.00% to 5.35% 4. Series 2010-B Alabama Drinking Water Authority Revolving Fund Loan Bonds.370.30% to 5. Series 2006-A2 Sub-total Revenue Bonds Payable.768.000 24. Series 2003-A Revolving Fund Loan Bonds.000 18.00% to 4.000 4.775. Series 2008 Revolving Fund Loan Bonds.680.000 41.25% 514.732.00% to 3.000 21.77% to 5.330.00% to 5. Series 2005-A Alabama Space Science Exhibit Finance Authority Series 2005-B Series 2009-A Higher Education Loan Corporation Student Loan Revenue Bonds. 2010 COMPONENT UNITS. 2010 2.33% Variable Variable $ 10.00% to 5.

25% to 3.50% to 1.184 for Alabama A & M University.651. $2.125 for the University of Alabama .30% 5.Birmingham 1993 University of Alabama .685) ‡ 144.880. ‡ Unamortized accounting loss was $3.574.145. $3. $487.185.829. $714.268 for Alabama Public School and College Authority. Continued Revenue Bonds Sub-Total from previous page Date Issued Final Maturity Date Interest Rates Bonds Payable Sept.000 543.00% 5.923 for the Public School and College Authority.Tuscaloosa.Birmingham.041) † (56. 2010 $ 3.637 for the Water Pollution Control Authority.664. $101.000 102.517 for the University of Alabama .638 for Auburn University.139. $1.805 for Incentives Financing Authority and $2. § Unamortized premiums were $1.Tuscaloosa 2004 University of Alabama .00% 4.902 for the University of Montevallo. $5.845 for the Water Pollution Control Authority.25% 6.886 for Auburn University.681.988.241 for Alabama State University.091 for the University of North Alabama. and $729. $7.50% $ † Unamortized discounts were $9.506 for Alabama State University.000 86.50% 6.020.75% to 5.484 for the Alabama Twenty-first Century Authority.074.870.000 for the University of South Alabama.75% to 2.984 for the Drinking Water Authority. $1.000 6.399.858.000 544. $404.076.544.578.303. $55. $1.000 21.838.COMPONENT UNITS.819.990 § 6.122.Huntsville 05/01/80 Alabama A&M University 1980 Alabama State University 1965 Auburn University 1978 Jacksonville State University 1993 University of West Alabama 12/01/67 University of Montevallo 1985 University of North Alabama 1999 University of South Alabama 1999 Troy University 1998 Total Revenue Bonds Payable Less: Unamortized Discounts Less: Unamortized Loss Plus: Unamortized Premium Net Revenue Bonds Payable.772 (11.155.000 for the University of South Alabama.649.00% 3.75% 5.983 for the Alabama Space and Science Commission. $15. $32.146.000 60. $10.972 for Incentives Financing Authority and $2.00% to 1.000 for the University of South Alabama.60% 5.226.306 for Auburn University.40% to 2.036 Higher Education University of Alabama .022 for the Mental Health Finance Authority. $5.00% to 1. $2.914. $250.000 165.90% to 1.35% to 2. Component Units 2036 2041 09/01/34 2033 2038 2038 2023 06/01/19 2030 2035 2038 2028 2. 103 .000 19. $112.482 for the Mental Health Finance Authority.798.Tuscaloosa.881 for the University of Alabama .00% to 3.000 330. $246.621. $275.000 2.077.40% 5. $540.040.000 for State Industrial Development Authority.00% to 2.000 715.953.787.438. 30.40% to 3.957.38% 8.265.656.772 82.623 for Alabama A & M University.90% 5.964.412 for Alabama State University.

859.783.361 3 72.070.929 6 67.952.325. on a current basis. An original issue premium of $3.077.204.187 1 93.942 4 28.741.707 2 56.349 303.062.000.519.185.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. As a result of the refunding.075 and a reduction in the cash flows required to service the new debt compared to the cash flows required to service the old debt of $2.079. On October 28.215 2 70. the General Obligation Series 2001-B bonds with an aggregate outstanding principal amount of $12.849 and a reduction in the cash flows required to service the new debt compared to the cash flows to service the old debt of $7.787.5 65.738.903 3.187 7 89.000.000 30.174 $ $ $ $ $ $ † The above table shows interest in the year it will be paid. the General Obligation Bonds Series 2001-C bonds with an aggregate outstanding principal amount of $74.788. An original issue premium of $648.074.604.787.0 03.000 377. Advance refundings and early redemptions are discussed in the remainder of this section. In March 2010.361 1.685) 144. the General Obligation Bonds Series 2001-A bonds with an aggregate outstanding principal amount of $40. Treasury obligations in such amounts with certain maturities to provide sufficient funds to pay the remaining maturing principal and interest on the refunded bonds as they become due.517.994. 2009.193.797.000.840 1.699.000.535 1. the Alabama Public School and College Authority (APSCA) issued Capital Improvement Refunding Bonds Series 2009-A in the amount of $467. The refunded bond debt is considered to be retired for financial reporting purposes even though the debt is still legally outstanding and the issuer of the bonds has not been released from the debt obligations.837.402 Total 6 13.911.646.415.960.538 325.085.772 † (11. An original issue premium of $6.430. A portion of the proceeds from the sale of the refunding bonds is deposited with an escrow agent according to an escrow trust agreement. The bond proceeds were used to refund.954.543.344 6 26.628.228 5 45.836 1.000 595.734 2 82.664. Refunded Bonds Advance refunding bonds are issued to retire existing bonds.8 79.833 322.502. the State of Alabama recognized an economic gain of $4.621.705 32. 4.568.585.879 2 42.475 1.000.425.372.621 was received on the sale of the bonds.000.903 10.646.610 343.545.5 21.000.815.286.000 6.893. Treasury obligations constitute a trust fund to be held by the escrow agent for the benefit of the holders of the refunded bonds.942 51. the State of Alabama issued General Obligation Refunding Bonds Series 2010-A (bonds) in the amount of $37.705 1.691.798.201 2.365. the State of Alabama recognized an economic gain of $5.705. In March 2010.765.889. the State of Alabama recognized an economic gain of $1.041) (56.S.771. The proceeds are invested by the escrow agent in certain U.S.066.512 and a reduction of reduction in the cash flows required to service the new debt compared to the cash flows required to service the old debt of $12.70 was received on the sale of the 104 .915 was received on the sale of the bonds.606 1.211. The bond proceeds were used to refund.805 was received on the sale of the bonds.990 6.048 5 93. In May 2010.687. As a result of the refunding.139.036 Interest 2 91. on a current basis.6 34. the State of Alabama issued General Obligation Refunding Bonds Series 2010-C (bonds) in the amount of $62.180.484.729.1 79.870 of remaining General Obligation 2001-C funds were used to refund.459. The bond proceeds together with $11.419.940. 2010 COMPONENT UNITS Debt Service Requirements to Maturity Maturity 2011 2012 2013 2014 2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 Total Unamort Disc Unamort Loss Unamort Prem Principal 321.696.544. The U.417. As a result of the refunding. An original issue premium of $34. the State of Alabama issued General Obligation Refunding Bonds Series 2010-B (bonds) in the amount of $12.245 5 82. on an advance basis. not the year it is accrued.685.

615.000.720. the Water Pollution Control Authority issued the 2010-B Revolving Fund Loan Refunding Bonds in the amount of $64.000. On April 22. on an advance basis.437.829 and a reduction in the cash flows required to service the new debt versus the cash flows to service the old debt of $7.048.5% to 4%.981 and a reduction in the cash flows required to service the new debt versus the cash flows to service the old debt of $6. An original issued premium of $12. the APSCA issued Capital Improvement Bonds Series 2010-B in the amount of $70.000 in General Fee bonds with interest rates ranging from 2% to 5% were issued to advance refund $79. 2009. The refunding resulted in an accounting loss of approximately $795.276 and a reduction in the cash flows required to service the new debt versus the cash flows to service the old debt of $34. The Series 2009-A bond proceeds were used to refund. on a current basis.000. 2010.548.939. the APSCA issued Capital Improvement Bonds Series 2010-A in the amount of $109.388.000 with interest rates ranging from 3% to 4%. The refunding resulted in an accounting loss of approximately $1. the APSCA issued Capital Improvement Pool Refunding Bonds Series 2009-B in the amount of $174. the Series 1999-D bonds with an aggregate principal amount outstanding of $151.450.000 of the Series 1998-A bonds and $40. The Series 2010-B bonds were used to refund.258. 2010. On July 21.000.000.133.000 with interest rates from 2.403. Series 1999-A bonds with an aggregate principal amount outstanding of $18.410.190.960.440.734. The 2010-B bonds were used to refund $39. On April 22. the APSCA Series 1998 bonds maturing fiscal years 2010 through 2017 with an aggregate principal amount outstanding of $212. Auburn University issued $79.000 of the Series 1999 bonds. The economic gain for the University is $4. The APSCA had an economic gain related to the refunding of $7.980.170. The 2010 bonds were used to currently refund $27.922.213.775. The APSCA had an economic gain related to the refunding of $23. the Series 1999-C maturing 2014 through 2018 with an aggregate principal amount outstanding of $27. The refunding resulted in an accounting loss of $1.7 million. Series 1998 bonds maturing in November 2017 and 2018 with an aggregate principal amount outstanding of $66. This refunding resulted in the University recognizing a loss of $6. The Authority had an economic gain related to the refunding of $5. Series 2001-C bonds maturing 2010 through 2013 with an aggregate principal amount outstanding of $74. 105 .990.4 million.176. on a current basis.000. An original issue premium of $7. On June 21.046.164 and a reduction in the cash flows required to service the new debt versus the cash flows to service the old debt of $5.803 was received on the sale of the bonds.535.259. An original issue premium of $12.900.267 for the difference between the acquisition price of the new debt and the net carrying amount of the old debt. The Alabama Building Renovation Finance Authority issued the Series 2010 Revenue Refunding Bonds in the amount of $26.bonds. The APSCA had an economic gain related to the refunding of $14. 2010. The Series 2010-A bonds were used to refund.720. on an advance basis.521.000.000 with interest rates ranging from 2% to 3%.000.295 was received on the sale of the bonds. The Authority reduced its aggregate debt service by approximately $16.107.518.000 of the Series 1998-B bonds.666.676.540.000. 2010.246 and a reduction in the cash flows required to service the new debt versus the cash flows to service the old debt of $28.915.000 and to refund. the Alabama Water Pollution Control Authority issued the 2010-A Revolving Fund Loan Refunding Bonds in the amount of $36. The APSCA had an economic gain related to the refunding of $3.000 of outstanding bonds with interest rates ranging from 4.750.815. On August 2. and Series 1999-C bonds with an aggregate outstanding principal amount of $250. On December 29.360.033. The Authority reduced its aggregate debt service by approximately $23 million and obtained an economic gain of approximately $11.6 million and obtained an economic gain of approximately $7. On October 28.352.926.45% to 6%.193.000.000 of the Series 1999 bonds.030. The 2010-A bonds were used to refund $42.206.121.45 was received on the sale of the bonds.500.000 and Series 2009-A Series bonds maturing in 2025 through 2029 with an aggregate principal amount outstanding of $44. on an advance basis. 2010. The Series 2009-B bonds were used to refund. 2009.

Bond issues that have already been redeemed may be subject to additional payments if an arbitrage rebate or spending payment is owed and has not been paid. were as follows: Component Units Water Pollution Control Authority Housing Finance Authority $ Amount 2.500.000 5.510 3.000 7.489. 2010.000 Amount $ 23.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. Arbitrage The Tax Reform Act of 1986 requires that governmental entities issuing tax-exempt debt subsequent to August 1986.400.301. The U. 2010 Defeased Bonds: Component Units University of Alabama in Tuscaloosa University of Montevallo Primary Government State Port Authority Amount $ 23. 106 . Treasury has issued regulations on calculating the rebate amount and complying with the provisions of the Tax Reform Act of 1986.S. are due at least once every five years over the life of the bonds. Income earned on excess earnings is also subject to rebate. Bond issues with arbitrage liabilities outstanding at September 30.820. The regulations require the excess of the aggregate amount earned on investments purchased with bond proceeds over the amount that would have been earned if the proceeds were invested at a rate equal to the bond yield to be rebated to the federal government. if required. Rebate payments. Any refunded bond issue is subject to the rebate requirement until the last bond is redeemed. Governmental issuers must comply with the rebate regulation in order for their bonds to maintain tax-exempt status.000 These lists are based upon incomplete data since some bond issues have not yet been included in arbitrage calculations. to calculate and rebate arbitrage earnings to the federal government.

500 1. $650.845 652. Bonds Authorized But Not Issued Bonds Authorized But Not Issued (Amounts in Thousands) Primary Government General Obligation Bonds State of Alabama Federal Aid Highway Finance Authority Farmers Market Authority Highway Authority Corrections Institution Finance Authority Public Health Finance Authority Public Health Care Authority Parking Deck Authority Gulf State Park Authority Alabama Toll Road.000 45. The Corporation paid $864.000 under the interest rate swap agreement for the years ended 107 .500 24.000 Based on amount received in federal funds 13. 2007.85%.265 $ 61. Under the swap.000. The Corporation utilizes the interest rate swap to convert its variable rate on the promissory note to a synthetic fixed rate.975 10.000 Based on Authority's construction of toll road.000 $ 746.000 765. Derivative Transactions University of South Alabama .025 $ 184. N. The promissory note came into effect on May 1. the Corporation pays the counterparty a fixed payment of 6. upon conversion of the construction loan.696.500 $ 175. 2028. 2008. when the loan matures.000 Unlimited 241.610 15. 2008.655 1.000 was outstanding.10% and receives a variable payment of the one-month LIBOR rate plus 0.680 $ 241. the interest rate swap associated with the loan became effective.820 $ 38. Bridge and Tunnel Authority Total Primary Government Component Units State Industrial Development Authority † Mental Health Finance Authority Alabama Public School and College Authority-Pool Bonds Alabama Public School and College Authority-Capital Improvement Bonds Alabama Revolving Loan Finance Authority Alabama Incentives Financing Authority Total Component Units Total Reporting Entity $ $ 100.On February 27. Also.000 20.000 70.390 84.000 467.500 24.000 70. The swap will terminate on My 1. the University of South Alabama Research and Technology Corporation entered into a derivative transaction with Wachovia Bank.000 300.6.A.000 19.000 13.025 7. pay fixed” interest rate swap entered into in connection with the promissory note that came into effect upon conversion of the construction loan into a permanent loan on May 1.000.000 Unlimited $ Issued 720.000 23. At 9/30/10. No more than $40.000 45.000 297.000 125.000 13. on May 1. 2008.000 $ Unissued 29.735 Authorized $ 750.975 † The State Industrial Development Authority is authorized to issue a total of $100. bridge or tunnel projects payable from tolls and other revenues $ 931.000 in bonds in addition to any bonds authorized prior to 1991. 7. The notional amount of the swap will at all times match the outstanding principal amount of the loan.000 100.000 in aggregate principal amount of such bonds may be outstanding at any one time.000 10.043.000 and $756. The derivative is a “receive variable.000 4.

The interest rate swap had a fair value of $(4.577.202 (214.073 1.688. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement.352 67.226 1.605. Notes. Credit Risk. the Corporation granted the counterparty a $2. the Corporation would have a gross exposure to credit risk in the amount of the derivatives’ fair value. On the Corporation’s “receive-variable.694 33.367.893 776. which is reflected as an increase in interest expense.887 3. which includes standard default and termination events.002 2.024 (1. an interest in Building II. However.030) at September 30.800.332 6. such as failure to make payments.698 117.000 2 00.764.668.936 26. 8. breach of agreement. Also. interest rate risk associated with the variable rate debt would no longer be hedged. 2010.957.379 35. if at the time of termination the interest rate swap had a negative fair value. 2010.171 5.865 323.089. At September 30.446 Maturity 2011 2012 2013 2014 2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 Total Interest Net 108 .549. if interest rates change and the fair value of the derivative becomes positive.115.694. and Capital Leases Debt Principal Requirements to M aturity Governmental Activities Principal $ 5.124. The fair value of the interest rate swap was estimated using the zero-coupon method.490 2.817 581.388.031 4.967.000.155) $ 117.881.463 4. no events of default or termination had occurred.374. The interest rate swap contracts use the International Swaps and Derivatives Association.102 $ 1 1. pay-fixed” interest rate swap.047 Business-Type Activities Principal $ 2. a security interest in Building II tenant leases and a security interest in income received from rental of Building II.187. Mortgages. The counterparty was rated Aa2 by Moody’s Investors Services and AA by Standard & Poor’s Ratings Services as of September 30. and bankruptcy. Interest Rate Risk. 2010. This method calculates the future net settlement payments required by the swap.474.195 39. If the interest rate swap is terminated.210.688. Fair Value. the Corporation would be liable to the counterparty for a payment equal to the interest rate swap’s fair value.578) $ 1 98.127.534.000 mortgage secured by an interest in the ground lease with respect to the parcel of land on which Building II stands.017.333 1 1.171.744 60.102 Component Units Principal $ 13. The changes in fair value are reported as a deferred outflow on the Statement of Net Assets since the interest rate swap is a hedging derivative instrument.185 13.697 16.620 8. Master Agreement. respectively.253. Inc.766 4.025.483. as LIBOR decreases.533 24. As of September 30.808 31.831. To allow the Corporation the maximum flexibility to manage the utilization of Building II and III while at the same time providing protection for the counterparty.420. 2010 the Corporation was not exposed to credit risk on the interest rate swap because it had a negative fair value.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates.329. the net payment on the swap increases. 2010 September 30. Termination Risk.085.297 13.841 26. 2010 and 2009.

At September 30.589 1. but can range from twenty to forty years. The largest capital leases in governmental activities are for buildings in county facilities used by the Department of Public Health and the Department of Human Resources.136) $ 57.431 (31. 2010 assets recorded under capital leases were as follows (amounts expressed in thousands): Governmental Activities $ 87. Capital leases are recorded at the lower of the present value of the future minimum lease payments or fair market value. Most buildings under capital lease have a term of twenty-five to thirty years. Principal and interest capital lease payments are recorded as expenditures of the applicable governmental function in the governmental fund.884 Buildings Equipment Less: accumulated depreciation Total The State leases office buildings and equipment with varying terms and options. 109 .

000. $34.494 2.433 $ $ (390.769) (7.390 27.419) (5.889) (8. $18.266.283 117.213 200.730) (92.839 696. University of South Alabama.957 17.274 779 367.538) (1.391 6.621.460 26.840 28.133 700 22. 110 .797 1.254 1.325 6.608 272.059 720.000.000.535 27.496 1. and Alabama College System.149 $ $ 618.366 32.384) (3.405 20.836 16. $87.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.029 141. University of North Alabama.000 and Public School and College Authority.990 65.945 6. †† Other Long-term liabilities are payable as follows: Department of Finance.582 288.845.087 7.074 1.299 76.236 8.656 † § $ $ $ $ $ † Compensated Absences debt is liquidated proportionately by all funds having payroll costs.830 128.079) (52.396 779 188.679 17.074 5. $779. 2010 9. University of Alabama at Birmingham.838 26. ‡ Other Long-term liabilities are payable as follows: State Port Authority.225. $178. § Other Long-term liabilities are payable as follows: University of Alabama.892.009 17.956 291.565.802 24.998. $32.360 14.927 80.702 198.457) (17.449 2.073 321.000.444 17.165 $ 25.646 36.613 619.000.036) (51.535 16.160 638.614) (30.115 74.287) (21.332 $ 222. Changes in Noncurrent Liabilities Beginning Balance (As Restated) Ending Balance Due Within One Year (Amounts in Thousands) Primary Government Governmental Activities: Bonds Payable: General Obligation Bonds Revenue Bonds Capital Leases/Notes/Mortgages Claims & Judgments Compensated Absences Other Long-Term Liabilities Other Post-Employment Benefits Total Governmental Activities Business-type Activities: Revenue Bonds Capital Leases/Notes/Mortgages Claims & Judgments Compensated Absences Other Long-Term Liabilities Other Post-Employment Benefits Total Business-Type Activities Total Primary Government Component Units: Revenue Bonds Arbitrage Capital Leases/Notes/Mortgages Compensated Absences Claims & Judgments Other Long-Term Liabilities Other Post-Employment Benefits Total Component Units Additions Reductions $ † †† 687.000 2.688 6.127 131.290 542.030 26.918 1.000.548 $ (140.083 14.314.742) (38.275 5.969) (23. $13.612.125 29.370 34.901 133.341) (855) (4.975.789 4.823) (15.035 $ $ 109.512 † ‡ $ $ 2.063 12.147 76.183) (1.498 187.000.109 11.467. University of Alabama at Huntsville.547) $ $ 2.567) (337. $20.040 5.687.527.383.712 56.336 298.993.765 4.715) $ 769.217.254.192 6.671 205.441) (11.211.330 274.251 133.599) (2. Auburn University.199.000 498.784 13.000.381 2.724) (12. $258.506. $178.000.561 23.

and $17.204.596.243 7 6. 803 Constitution of Alabama 1901.355.470. $19. Of that amount.000 is owed to Medicaid.000 is due to Public Health.169 49 Alcoholic Beverage Control Board $ 11.000 is due to Rehabilitation Services.367 $ 15 21 36 $ 47 24.751 49 1.625 198 600 19.606. 803 Constitution of Alabama 1901.000 in total.391 381 5.819 71 $ 168. $444.735 $ 1.000 is due to Senior Services. The Alcoholic Beverage Control Board (ABC) has interfund payables totaling $18. ABC owed $11.391.735 The majority of the interfund balances due to the Nonmajor Governmental Funds from the General Fund.676 150 720.685 33 46.566.000 to Nonmajor Governmental Funds.500 $ Medicaid Fund 0 7. Pursuant to Amendment No.466 2. 2010 consisted of (amounts in thousands): Public General Fund $ 0 1.661.169.NOTE 5 .204 329 Nonmajor Enterprise Funds $ 0 641 Internal Service Funds $ 20 139 976 Fiduciary Funds $ 0 - DUE TO General Fund Education Trust Alabama Trust Medicaid Fund Public Road & Bridge Fund Public Welfare Trust Fund Nonmajor Governmental Unemployment Compensation Alcoholic Beverage Control Board Internal Service Funds Fiduciary Funds Totals $ Total 13.044.875 $ 2. the Legislature must provide for the replenishment of the account within six years after withdrawal.556 599.865 $ 47 17. ABC is required by 111 .596 $ 641 $ 232 1. Medicaid owed $7. The General Fund has the second most interfund payables.581 DUE FROM Public Welfare Trust Fund $ 0 1.000 is due to repay the General Fund Rainy Day Account within the Alabama Trust Fund which was used to alleviate a budget shortfall.000. Pursuant to Amendment No.484 7. and the Nonmajor Governmental Funds consist of routine short term borrowings of cash between funds of individual agencies. Interfund Balances Interfund balances as of September 30. $161.661 Road & Bridge Fund $ 22 1. Medicaid.000 is owed to other Nonmajor Governmental Funds. The Education Trust Fund has the most interfund payables. $168.290 585 6.134 403 527 5.106.758 388 14. and $943.000 is due to repay the Education Trust Fund Rainy Day Account within the Alabama Trust Fund which was used to alleviate a budget shortfall. Of that amount.000 in total.254 18 2.INTERFUND ACTIVITY AND INTRA-ENTITY BALANCES A. $5.000 to the Public Welfare Trust Fund and $23. $8.819 Nonmajor Governmental $ 2.075 Education Trust Fund $ 0 437.000 is due to Youth Services.685.470 $ 188 18. $1.742.290.566 7 3.000.606 23. the Legislature must provide for the replenishment of the account within ten years after withdrawal.410 57. Of that amount.752 44 2. $437.106 $ 772 444.000 is owed to Internal Service Funds for goods and services. Of the latter amount.608.000 to the Public Welfare Trust Fund.568 161.000 to the General Fund and $6.044 $ 468 31. totaling $46.625. $12. Nonmajor Governmental Funds have the third most interfund payables.

STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30, 2010
law to distribute profits and certain taxes collected to those two funds, local governments, and the Mental Health component unit. The law also allows ABC to delay distribution for 120 days in order to maintain sufficient operating cash. The Alabama Trust Fund has the largest interfund receivable, the $437,391,000 due from the Education Trust Fund and $161,566,000 due from the General Fund as discussed previously. Nonmajor Governmental Funds rank second in receivables, at $57,751,000. The Internal Service Funds rank third in receivables, at $24,676,000. Risk Management, an Internal Service Fund, financed several buildings and building renovations for various Nonmajor Governmental Funds in the amount of $9,286,000 for a period of longer than one year. The remaining Internal Service Fund receivable of $15,390,000 generally represent normal billings for services rendered or goods sold to the other funds late in the fiscal year which will be paid early in the subsequent fiscal year. The Public Welfare Trust Fund ranks fourth in receivables, at $14,410,000. Majority of that amount is due from Medicaid and ABC as discussed above. B. Balances with Component Units Balances owed by state funds to component units at September 30, 2010, consisted of (amounts in thousands):
PAYABLE TO State Employees' Mental Health Health Insurance $ 9 7 37,767 315 133,056 2,424 22 $ 173,600 $ 183 11 10 66 144 2 26 306 748

PAYABLE BY General Fund Education Trust Fund Medicaid Fund Public Road and Bridge Fund Public Welfare Trust Fund Nonmajor Governmental Alcoholic Beverage Control Board Nonmajor Enterprise Internal Service Funds Totals

Public School & College Authority $ 0 15,491 15,491

Nonmajor Component Units $ 1 5 865 871 $

Total 192 19 37,772 10 381 149,556 2,426 26 328 $ 190,710

$

$

$

The largest payable of $133,056,000 is a short term payable owed by Nonmajor Governmental Funds to Mental Health for tax revenues pledged by the primary government to support Mental Health programs. The second largest short term payable was $37,767,000 owed by Medicaid to the Mental Health component unit, primarily for funding Medicaid eligible patients in the care of Mental Health. In addition to the above balances with component units, the financial statements report Water Pollution Control Authority has a long term receivable of $6,032,000 that is due from the primary government as a whole.

112

Balances owed to state funds by component units at September 30, 2010 consisted of (amounts in thousands):

PAYABLE TO General Fund Education Trust Fund Medicaid Public Road and Bridge Fund Public Welfare Trust Fund Nonmajor Governmental Alcoholic Beverage Control Board Internal Service Funds Totals

Mental Health $ 0 8,241 544 233 317 $ 9,335

Water Pollution Control Authority $ 0

PAYABLE FROM Public State Education Employees' Employees' Health Health Insur Insurance $ 0 $ 5 2 1 2 406 419 436 1 420 104 550

Nonmajor Component Units $ 0 1,415 1,476 2,891

Total $ 5 2 8,241 1 546 2,909 1,898 $ 13,602

$

406

$

$

$

The component units of the State owe $13,602,000 to various funds of the State. The largest amount, $8,241,000, is owed by Mental Health to Medicaid to match federal dollars. Risk Management, an Internal Service Fund, financed building renovations for Crime Victims Compensation, a Nonmajor Component Unit in the amount of $1,312,000 for a period of longer than one year. The remaining Internal Service Fund receivable of $586,000 is owed for routine billings of services rendered. Nonmajor Component Units owe Nonmajor Governmental Funds $1,415,000. Of that amount, $1,158,000 is owed by the Drinking Water Finance Authority to the Department of Environmental Management primarily for payroll costs. C. Balances Between Component Units Balances owed between component units at September 30, 2010 consisted of (amounts in thousands):
PAYABLE FROM State Employees' Health University of Insurance Alabama $ 41 $ 71,248 $ 41 $ 71,248

PAYABLE TO Mental Health State Employee's Health Insurance Totals

Mental Health $ 0 3 $ 3

Nonmajor Component Units $ 0 1 $ 1

Total $ 71,289 4 $ 71,293

The component units of the State had interfund payables due to other component units totaling $71,293,000. The largest amount, $71,248,000, is owed by the University of Alabama to Mental Health for the purchase of the Bryce Hospital property. State Employees’ Health Insurance owes Mental Health $41,000 in refunds.

113

STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30, 2010
D. Interfund Transfers Transfers among the various funds of the primary government during fiscal year 2010 were as follows (amounts in thousands):
EduTRANSFERS OUT General Fund Education Trust Fund Alabama Trust Medicaid Public Road & Bridge Fund Public Welfare Trust Fund Nonmajor Governmental Unemployment Compensation State Port Auth Alcoholic Beverage Control Board Nonmajor Enterprise Internal Service Funds Fiduciary Funds Totals $ 108,850 $ 6 945 $ 176,989 $ 149 52 840,256 $ 5,755 $ 53 $ 361,511 $ 379 $ 9 10,378 $ 164 52 1,625,554 9,687 9,687 12,766 430 245 13,441 9,366 54 9,366 54 31,697 382 6,104 67,740 837 1,385 206,202 5,755 22,566 379 7,350 350,397 24,741 102 48,579 73,422 58,764 53 58,817 64,387 6,694 12,673 64,604 21,827 139,040 236,073 338,945 1,119 381,258 203,427 300,677 General Fund $ 0 $ cation Trust Fund 0 $ Ala Trust Fund 0 $ Medicaid Fund 14,777 $ Public Road & Bridge Fund 0 $ Public Welfare Trust Fund 97,897 $ TRANSFERS IN NonUnemploymajor Governmental ment Compensation 0 $ State Port Auth 0 $ Alabama College System Alcoholic Beverage Control Board 0 $ 0 $ Internal Service Funds 1,900 $

Total 224,792

110,218 $

382 $ 6,104 $ 113,952 $

Transfers are often made between funds as required by the legislature in the appropriation acts as well as by a variety of existing statutes. Of the $224,792,000 transferred to other funds by the General Fund, $204,913,000 was transferred in compliance with the appropriation acts. Of that amount, $97,897,000 was transferred to the Public Welfare Trust Fund, $61,307,000 was transferred to various Nonmajor Governmental Funds and $36,420,000 was transferred to the Department of Public Health. The remaining General Fund transfers were made in small amounts to comply with a variety of statutes. Of the $381,258,000 transferred out of the Education Trust Fund, the appropriation acts as adjusted by proration required the transfer of $369,194,000 to other funds. Of that amount, $338,945,000 was transferred to supplement the operations of the Alabama College System. The appropriation acts also mandated that the Internal Service Funds receive $1,119,000 to fund telephone and computer services and the Public Welfare Trust Fund received $12,673,000. The remaining Education Trust Fund transfers were made in small amounts to comply with a variety of statutes. The Alcoholic Beverage Control Board transferred $12,766,000 to the General Fund and $430,000 to the Public Welfare Trust Fund, which represents those funds’ statutorily mandated share of the Board’s profits. The Alabama Trust Fund, in compliance with amendments to the Constitution of Alabama of 1901, is required to transfer to other funds a substantial portion of its investment earnings as well as a portion of new income from offshore oil and gas rights. In compliance with these amendments, the General Fund received $64,387,000, and the Nonmajor Governmental Funds received $139,040,000. Within the Nonmajor Governmental Funds, the Forever Wild Land Trust Fund received $10,140,000, the County Government Capital Improvement Fund received $12,948,000, the Municipal Government Capital Improvement Fund received $12,948,000, the Alabama Capital Improvement Trust Fund received $49,313,000, the County and Municipal Capital Improvement Trust Fund received $52,720,000, and the Senior Services Trust Fund received $971,000.

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Medicaid transferred out $64,604,000 to the Public Welfare Trust Fund, and $236,073,000 to Nonmajor Governmental Funds to fund services provided to Medicaid recipients. The Departments of Public Health, Youth Services, Senior Services, and Rehabilitation Services were the Nonmajor Governmental Fund recipients. The financial statements show $12,000 more transfers in for Internal Service Funds because transfers of capital assets were made from general government capital assets to Internal Service Funds.

NOTE 6 - RISK MANAGEMENT
The State manages risk through risk control and risk financing to minimize the adverse effects of certain types of losses. Risk financing includes self-insurance through several different funds. The State Insurance Fund provides coverage for state buildings and contents against fire and casualty losses. The General Liability Trust Fund insures state employees against the risk of loss from employment-related liability claims. The State Employee Injury Compensation Trust Fund was created by the 1994 legislature to provide benefits to eligible state employees for job-incurred injury. The State Insurance Fund, the General Liability Trust Fund, and the State Employee Injury Compensation Trust Fund are administered by the Division of Risk Management of the Department of Finance. There was no significant reduction in insurance coverage by the three Division of Risk Management funds from the prior year. These funds do not have acquisition costs; therefore, no cost is amortized for the period. The funds use the accrual basis of accounting for reporting purposes. As required by GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and External Investment Pools,” most investments are recorded at fair value. Liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). Because actual claims liabilities depend on such complex factors as inflation, changes in legal doctrines, and damage awards, the process used in computing claims liabilities does not necessarily result in an exact amount. Claims liabilities are reevaluated periodically to take into consideration recently settled claims, the frequency of claims, and other economic and social factors. Estimated claims liabilities are calculated by the plans’ actuary based on prior claims data for the General Liability Trust Fund and State Employee Injury Compensation Trust Fund. For the State Insurance Fund, estimated claims liabilities are based on management’s judgment. Non-incremental claims adjustment expenses have not been included as part of the liability for any of the funds. The separately issued financial report of the Division of Risk Management contains additional note disclosures and supplementary information regarding claims development and liabilities.

115

STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30, 2010

A. The State Insurance Fund The State Insurance Fund (SIF) was established in 1923 and is under the Code of Alabama 1975, Section 41-15-1 for the purpose of insuring direct physical loss on buildings and contents in which title in whole or in part is vested in the State of Alabama or any of its agencies or institutions or in which funds provided by the State have been used for the purchases of land, construction of buildings, purchase or maintenance of any equipment, machinery, furniture, fixtures or supplies in such buildings and public school buildings together with the contents of all such buildings. All covered property shall be insured for no more than its replacement cost and shall be insured for no less than 80 percent of its actual cash value. Ten percent of actual cash value, salvage value, is used for property that is normally uninsurable. City boards of education may insure school buildings and property either in the State Insurance Fund or with an insurance company, whichever in the opinion of such board provides the best coverage for such school buildings and property. The principles of private industry insurance companies are utilized to establish rates, premium discounts, and experience credits to result in equitable premiums charged to policyholders. Excess insurance and reinsurance is acquired to assure the solvency of the fund. Losses are recorded as current liabilities and expenses in the year reported. IBNR recognizes losses that have occurred but have not yet been reported. This liability and expense is determined by a professional actuary. The SIF has a $10,000,000 cumulative loss annual deductible and a $3,500,000 specific loss deductible for all perils except named wind storms, and a $10,000,000 specific loss deductible for named wind storms. Excess insurance covers claims exceeding the deductible with a $1,000,000,000 limit. Payments received in fiscal years 2010, 2009, and 2008 for settlements in excess of deductibles totaled $2,273,9751, $14,166,000, and $14,655,000 respectively. The following table presents the changes in claims liabilities for the past two years:
(Amounts in Thousands) Reported claims payable and estimated claims incurred but not reported at beginning of year Incurred claims and adjustment expenses: Provision for insured events of the current year Increase (Decrease) in provision for insured events of prior years Total incurred claims and adjustment expenses Payments: Claims and adjustment expenses attributable to insured events of the current year Claims and adjustment expenses attributable to insured events of prior years Total payments Reported claims payable and estimated claims incurred but not reported at end of year September 30, 2010 2009 $ 12,302 $ 7,871 6,538 3,804 10,342 (6,310) (6,242) (12,552) $ 10,092 12,113 3,781 15,894 (2,980) (8,483) (11,463) $ 12,302

A schedule of ten-year loss development information for the State Insurance Fund is in the Required Supplementary Information section of the CAFR.

116

B. General Liability Trust Fund The General Liability Trust Fund (GLTF) was established in 1984 to protect state employees from personal financial liability resulting from lawsuits that are based on alleged negligence while acting within the line and scope of state employment. Claims are investigated and defended through the Office of the Attorney General. Auto liability is fully reinsured and the re-insurer, American Southern Insurance Company, handles all claims. The GLTF is managed much like a commercial insurance company, with exposure evaluated and commensurate premiums assigned to state agencies. Investment activities are an essential part of the General Liability Trust Fund’s ability to maintain lower-cost employee liability coverage. Funds in excess of those needed for immediate operations are invested to maximize return and keep premiums down. Losses are recorded as current liabilities and expenses in the year reported. IBNR recognizes losses that have occurred but have not yet been reported. This liability and expense is determined by a professional actuary. Excess insurance was not renewed in April 2002, so the GLTF is currently without excess coverage. Payments received in fiscal years 2009 and 2010 for settlements in excess of deductibles for old claims (prior to April 2002) totaled $2,833,932 and $0, respectively. The following table presents the changes in claims liabilities for the past two years:

(Amounts in Thousands) Reported claims payable and estimated claims incurred but not reported at beginning of year Incurred claims and adjustment expenses: Provision for insured events of the current year Increase (Decrease) in provision for insured events of prior years Total incurred claims and adjustment expenses Payments: Claims and adjustment expenses attributable to insured events of the current year Claims and adjustment expenses attributable to insured events of prior years Total payments Reported claims payable and estimated claims incurred but not reported at end of year

September 30, 2010 2009 $ 28,721 $ 27,416 668 4,643 5,311 (654) (3,651) (4,305) $ 29,727 4,969 3,996 8,965 (1,376) (6,284) (7,660) $ 28,721

117

The Department of Transportation had $9.451) $ 29. 2010 C.964 (1. A key element in assuring effective and efficient operation of SEICTF was the creation of a statewide medical provider network with a focus on professionals who are experts in treating occupational injury. and local boards of education.260 2. IBNR recognizes losses that have occurred but have not been reported.795. lost wages (including benefits for time lost from the job).767 4.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.121 in 2010. and total claims payments were $1.327) (6. State Employee Injury Compensation Trust Fund The State Employee Injury Compensation Trust Fund (SEICTF) was created by the legislature on October 1. Division of Risk Management in accordance with the Alabama Administrative Code and include all reasonable medical expenses arising from a job-incurred injury.376 5.132) (5. Specifically excluded from coverage are employees of the State Port Authority.304 4. The claims incurred but not reported at the beginning of the year for Transportation totaled $8.450) $ 27. educational institutions.126 8. Benefits under SEICTF are administered by the Department of Finance.894.588 7. 118 .124) (5.892. Its purpose is to provide benefits to eligible state employees for job-incurred injury.787 in claims liabilities at the end of the year.281 The Department of Transportation finances its own risk for state employee injury compensation. The following table presents the changes in claims liabilities for the past two years: (Amounts in Thousands) Reported claims payable and estimated claims incurred but not reported at beginning of year Incurred claims and adjustment expenses: Provision for insured events of the current year Increase (Decrease) in provision for insured events of prior years Total incurred claims and adjustment expenses Payments: Claims and adjustment expenses attributable to insured events of the current year Claims and adjustment expenses attributable to insured events of prior years Total payments Reported claims payable and estimated claims incurred but not reported at end of year September 30.318) (6. 1994. This table includes the changes in claims liabilities for the Department of Transportation as well as Risk Management.281 $ 25. 2010 2009 $ 27. Losses are recorded as current liabilities and expenses in the year reported. and benefits to dependents of employees who are fatally injured on the job. This liability and expense is determined by a professional actuary.000.430 (1.

450 405.773) (31.982 $ 37. The SEIB also administers a local government health insurance plan (LGHIP) in the same manner as the SEIP. and of estimated claims that have been incurred but not reported. The monthly premiums for employee and dependent coverage are determined annually and are set at a rate necessary to provide sufficient funds to pay all claims and reasonable expenses of administering the plans. 119 . the process used in computing claims liabilities does not result in an exact amount.020) (402. unpaid claims liabilities are computed using the gross method without discounting the accrued claims payable.804 414.102 429. 833 to provide health insurance benefits for state employees.982 At year-end. and changes in legal doctrines. The separately issued financial report contains note disclosures and supplementary information regarding claims development.D. 2010 2009 $ 48. The following table represents changes in those aggregate liabilities for SEIB during the years ended September 30 (approximately 59% of claim liabilities are related to the SEIP and the remainder to the LGHIP): (Amounts in Thousands) Reported claims payable and estimated claims incurred but not reported at beginning of year Incurred claims and adjustment expenses: Provision for insured claims of the current year Adjustment to estimated claims incurred but not reported at end of year Total incurred claims and adjustment expenses Payments: Claims and adjustment expenses attributable to insured claims of the current year Claims and adjustment expenses attributable to insured claims of prior years Total payments Reported claims payable and estimated claims incurred but not reported at end of year September 30.325) $ 55. Actual claims costs incurred may vary from estimated claims liabilities depending on the similarities in the nature and frequency of the claims between current and prior years.747 8. The State pays a monthly premium for each employee and the employee pays the established dependent premium. The SEIB establishes claims liabilities based on estimates of the ultimate cost of claims (including future retroactive claims adjustments) that have been reported but not settled.552) (423.671) $ 48. medical technology. Because actual claims liabilities are affected by complex changing factors such as inflation. The SEIP is administered by the State Employees' Insurance Board (SEIB).551 (372. Adjustments of the estimated claims liabilities based on actual results are charged or credited to expense in the periods in which such adjustments are determined.651) (30.067 726 429.793 (391. State Employees' Insurance Plan The State Employees' Insurance Plan (SEIP) was established in 1965 by Alabama Act No.

205 (39) 775. and changes in legal doctrines.739) (788. That rate was $752 per participant for 2010 and 2009.213) $ 78.547 $ 69. Each participating school system must then pay the employer rate to the PEEHIF each month. the employee pays certain premium amounts.547 The separately issued financial report contains additional note disclosures and supplementary information regarding claims development. 120 . Note that $419.216 (713. In addition to the employer payments each month.000 of unpaid claims at year-end is classified as due to the primary government. The following table presents the changes in claims liabilities during 2010 and 2009: (Amounts in Thousands) Unpaid claims and claim adjustment expense at beginning of year Incurred claims and adjustment expenses: Provision for insured events of the current year Increase (Decrease) in provision for insured events of prior years Total incurred claims and adjustment expenses Payments: Claims and adjustment expenses attributable to insured events of the current year Claims and adjustment expenses attributable to insured events of prior years Total payments Total unpaid claims and adjustment expenses at end of year $ $ September 30. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.808) 787.658) (69.166 (696. Because actual claims liabilities are affected by complex changing factors such as inflation. Actual claims costs ultimately incurred may vary from the estimated claims liabilities depending on the similarities in the nature and frequency of the claims between current and prior years.231) (75.793 775. and estimates of claims that have been incurred but not reported.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. medical technology.024 (2. 2010 2009 78. The plan is administered by the Public Education Employees' Health Insurance Board (PEEHIB).555) (766.594 790. The State contributes a specified amount monthly to each respective participating school system. Public Education Employees' Health Insurance The Public Education Employees' Health Insurance Fund (PEEHIF) was established in 1983 by the provisions of Act 83-455 to provide a uniform plan of health insurance for current and retired employees of public educational institutions and to provide a method of funding the benefits related to the plan. 2010 E. PEEHIB established claims liabilities based on the actual cost of claims reported but not settled. the process used in computing claims liabilities does not result in an exact amount.970) 76.

Alabama Health Insurance Plan The Alabama Health Insurance Plan (AHIP) was established to provide health insurance coverage to eligible individuals as an alternative to federal oversight required in the Health Insurance Portability and Accountability Act of 1996. unpaid claims liabilities are computed using the gross method without discounting the accrued claims payable.901. Premiums are determined annually and are set at a rate necessary to provide sufficient funds to pay all claims and reasonable expenses of administering the plan.643 102 21.000. Assessments in excess of actual losses are to be held in interest and used by the board to offset future losses or to reduce future assessments. codified as Section 27-52-1 in the Code of Alabama 1975. 115 authorizes the Plan to recoup losses by assessing participating insurers based on their health insurance premiums written in the state for any year in which the Plan incurs a deficit.503 At year-end.912) (1.508 21.367 (19.838) (21.000 for the lifetime of a participant. 2010 2009 $ 3.750) $ 3.796) (21. and is governed by an eight member Board of Directors.745 (19.374) (1. AHIP established claims liabilities based on estimates of the ultimate cost of claims (including future retroactive claims adjustments) that have been reported but not settled and of estimated claims that have been incurred but not reported.170) $ 3. The following table presents the changes in claims liabilities during the years ended September 30. respectively. The separately issued financial report contains additional note disclosures and supplementary information regarding claims development. The estimation of claims costs depends on many factors including historical loss experience. The plan provides that participants pay monthly premiums for health insurance coverage. 2010 and 2009: (Amounts in Thousands) Reported claims payable and estimated claims incurred but not reported at beginning of year Incurred claims and adjustment expenses: Provision for insured events of the current year Increase (Decrease) in provision for insured events of prior years Total incurred claims and adjustment expenses Payments: Claims and adjustment expenses attributable to insured events of the current year Claims and adjustment expenses attributable to insured events of prior years Total payments Reported claims payable and estimated claims incurred but not reported at end of year September 30.F. Coverage is also available for eligible dependents of participants. Adjustments of the estimated claims liabilities based on actual results are charged or credited to expense in the periods in which such adjustments are determined.000 in 2010 and 2009. The plan provides major medical benefits limited to $1. AHIP obtained funding from assessments totaling $3.503 $ 3. AHIP was established in 1997 under Regulation 115 pursuant to Act 97-713.194 173 21.000 and $3.829.700 21. Regulation No. 121 .

1939. and on an elective basis. The Board of Control of the ERS administers and operates the JRF. or (2) formula. Act Number 1205 of the legislature of 1975 supplemented the provisions of Act Number 1163 and enlarged the scope and coverage of the JRF to include District and Probate Judges. The JRF provides retirement allowances and other specified benefits for any Justice of the Supreme Court of Alabama. The Board of Control has responsibility for the general administration and operation of the TRS.000 self-insured retention is covered without a policy limit. established as of September 15. members of TRS and ERS (except state police) are allowed 2.760 $ 2. 2010 and 2009: (Amounts in Thousands) Reported claims payable and estimated claims incurred but not reported at beginning of year Provision for claims Total payments Reported claims payable and estimated claims payable incurred but not reported at end of year September 30. and Judicial Retirement Fund. Benefits for TRS and ERS members vest after 10 years of credited service. Teachers and state employees who retire after age 60 (52 for state police) with 10 years of credited service or with 25 years of service (regardless of age) are entitled to an annual retirement benefit. The Judicial Retirement Fund (JRF) is a cost-sharing multiple-employer defined benefit pension plan. or office holder of any newly created judicial office receiving compensation from the State Treasury. NOTE 7 .STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. towns. 1. The liability for uninsured claims includes an estimated amount for claims that have been incurred but have not been reported. Judge of the Court of Criminal Appeals.815 1. under the provisions of the 1945 Alabama Acts 515. The Employees' Retirement System of Alabama (ERS) is an agent multiple-employer defined benefit pension plan established as of October 1. Each claim for a loss in excess of the $500. ERS.283 (598) (764) $ 2. The following represents changes in those aggregate liabilities for the Authority during the years ended September 30. 2010 G. and quasi-public organizations. Under the formula method. 1945. Alabama State Port Authority The Alabama State Port Authority is partially self-insured with respect to workers’ compensation claims.0125 percent of their final average salary (highest 3 of the last 10 years) for each year of 122 . The Board of Control is responsible for the general administration and operation of the ERS. established under the 1973 Alabama Acts 1163. The TRS provides retirement allowances and other specified benefits for qualified persons employed by State-supported educational institutions. Retirement Systems of Alabama The Retirement Systems of Alabama (RSA) administers the following three retirement programs for the benefit of state employees and public education employees: Teachers’ Retirement System. including ad hoc cost of living adjustments. and JRF provide retirement benefits as well as death and disability benefits as established by State law. Judge of the Court of Civil Appeals.334 The separately issued financial report contains additional note disclosures and supplementary information regarding claims development. Service retirement benefits are calculated by two methods with the member receiving payment under the method which yields the highest monthly benefit: (1) minimum guaranteed. Plan Descriptions The Teachers' Retirement System of Alabama (TRS) is a cost-sharing multiple-employer defined benefit pension plan. must be established by statute. 2010 2009 $ 2. counties. state police. Changes to benefits. The TRS.334 $ 1. Judge of the Circuit Court. under the provisions of the 1939 Alabama Acts 419.024 1. to all cities.RETIREMENT PLANS A. The ERS provides retirement allowances and other specified benefits for state employees. payable monthly for life. Employees’ Retirement System.

JRF benefits vest from five to eighteen years. is transferred to the Expense Fund.875 percent for each year of state police service in computing the formula method. (4) completed at least 18 years of credited service or three full terms as a judge or justice and has attained age 65 (5) completed 10 years of credited service and has attained age 70. State police are allowed 2. The pre-retirement death benefit (group term life insurance) is paid in addition to the return of member contributions upon the death of an active TRS or ERS member who has completed at least one year of active membership in the system and whose date of death was within 180 days of such member's last date of actual service. Service retirement benefits for justices and judges are dependent upon the particular office held in the judicial branch of government. 1979. RSA issued a stand-alone financial report that includes financial statements and required supplementary information (including the six-year trend) for the year ended September 30. A pre-retirement death benefit is offered in which the account is credited with TRS and ERS employer contributions and investment income on such funds. for ERS. The service retirement benefit for a district judge is 75% of the position’s salary immediately prior to retirement. Copies may be obtained by writing to: The Retirement Systems of Alabama P. Box 302150 201 South Union Street Montgomery. Disability retirement benefits are calculated in the same manner. (2) completed 12 years of credited service and has attained age 65. appellate. elected prior to July 30. (6) been elected prior to July 30.O. The pre-retirement death benefit is equal to the annual earnable compensation of the member as reported to the system for the preceding year ending June 30. or have at least 25 years of credited service. A member eligible to retire who has not requested his retirement benefit to commence at the end of the term in which his seventieth birthday occurs is entitled only to the refund of his contributions (except for members with at least 25 years of credited service). A retirement benefit is payable upon the request of any member who has: (1) 25 years of credited service (regardless of age). When a member withdraws from service prior to becoming vested. 2010. There is no pre-retirement death benefit available for JRF members. Except for justices or judges who were either disabled. AL 36130-2150 123 .service. for TRS and September 30. a surviving spouse beneficiary of a deceased member who was eligible for service retirement may elect a survivor allowance in lieu of this benefit. no justice or judge shall be eligible to receive judicial service retirement pay prior to attaining sixty years of age. the member's accumulated contributions and a portion of accumulated interest credited to the Annuity Savings account are returned to the member. (3) completed 15 years of credited service and whose age plus service equals or exceeds 77. However. which by law is not payable to the member. and probate judges is 75% of the member’s salary at the time of separation from service. 1979 and has 18 years of service (regardless of age). The portion of accumulated interest. The service retirement benefit for circuit.

06%. common and preferred stock. pursuant to plan requirements. of the TRS and ERS investments and Goldman Sachs which represented approximately 6.15 percent and 6. or other investment vehicles with the care. Contributions are recognized as revenues when earned. the normal contribution is determined using the “entry age normal” method. Summary of Significant Accounting Policies 13 30 132 32 207 ERS 287 65 517 1 870 JRF 67 1 68 a. For the TRS and ERS. At September 30. the number of participating employers in each system was as follows: TRS Cities Counties Other Public Entities Universities Post-Secondary Institutions City & Co unty Boards of Education State Agencies & Other Total 2. The financial statements are prepared in accordance with requirements of the Governmental Accounting Standards Board. As of September 30. and JRF financial statements are prepared using the accrual basis of accounting. the estimated present value of benefits payable to retired members. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates.86 percent. of the TRS and ERS investments. through the Secretary-Treasurer and Investment Committee. and JRF are considered component units of the State of Alabama. beneficiaries and active members. as of the date of the latest available actuarial valuations (September 30. 2010 State Law established the contribution requirements and must be amended by state statute. and a portion to finance administrative costs. 3. skill. mortgage-backed securities. ERS. Under these requirements. The actuarial valuations for the TRS and ERS are prepared using the entry age method. Under this method. prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use. b. The law provides that the Boards of Control engage an actuary to prepare an annual valuation of the assets and liabilities of the various reserve funds. the TRS. Short-term investments are reported at cost. in bonds. respectively. Basis of Accounting The TRS. respectively. As required by the Alabama State Law. Mortgage-backed securities are reported based on future principal and interest payments discounted at the prevailing interest rate for similar instruments. 2010. an accrued liability contribution. ERS and JRF).STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. while the JRF valuation utilizes the projected unit credit method. a calculation is made to determine the uniform and constant percentage rate of the employer contributions which. the TRS. 2010. The employer contributions required to support the benefits of each system are determined following a level funding approach and consist of a normal contribution. ERS. The present value of all expected benefits payable from each system to the present group of members and beneficiaries is calculated by adding the present value of the expected benefits payable to the active members to the present value of the expected future payments to retired members and beneficiaries. which approximates fair value. Investments The Boards of Control of the Systems have the responsibility and authority to invest and reinvest available funds. would be required 124 . if applied to the compensation of the average new member during the entire period of the member's anticipated covered service. ERS. and JRF provide for employer contributions at actuarially determined rates (expressed as percentages of annual covered payroll) that accumulate sufficient assets to pay benefits when due.63% and 6. the TRS and ERS owned debt and equity securities of Raycom Media Corporation which represented approximately 6. 2009 for TRS. All plan assets are carried at fair value. Contributions Required and Contributions Made The actuary has computed. The fair value of real estate investments is based on independent appraisals.

State Employer Segment of ERS The funded status of the State employer segment of ERS as of the latest actuarial valuation is as follows: Employees' Retirement System State Employees and State Policemen 9/30/2009 $ $ 7. 100% of the ARC was contributed.8% $ 1. as they occur. ERS-state employees. For the JRF.880 Major Discretely P resented Component Units (DP CU) Auburn University 39.952 University of South Alabama 32.563. respectively. and ERS-state policemen. police officers and correctional officers) is 5 percent of earnable compensation. the normal contribution is determined using the “projected accrued benefit” (unit-credit) method.252 128.361 $ 54.454 5.742 30.517 JRF Primary Government 10.5% (Amounts in thousands) Actuarial Valuation Date Actuarial Accrued Liability (AAL) Actuarial Value of Assets Unfunded Actuarial Accrued Liability (UAAL) Funded Ratio Covered Payroll UAAL as a Percentage of Covered Payroll 125 . The amortization method is level percent open for the September 30.326 $ 51. TRS and JRF A schedule of Annual Required Contributions (ARC) and the percentage contributed (%) for the TRS and JRF (Cost-sharing plans) is shown below (primary government is denoted by PG and discretely presented component units are denoted DPCU): System TRS Primary Government $ Annual Required Contribution (ARC) * 2010 2009 2008 55.233 2.57 percent and 24.814 * Amounts in Thousands. Under this method.163.297.221 70.042 38.20 percent.51 percent. and correctional officer members of the TRS and ERS are required to contribute 6 percent of earnable compensation.862 136. The employer contribution rate for ERS state policemen and JRF was 30.725 10. 2009 actuarial valuation. police officer. the benefits of each individual included in an actuarial valuation are allocated by a consistent formula to valuation years. The actuarial gains (losses).94 percent and the rate for TRS was 12. In all instances.259 University of Alabama 134. The amortization method is level percent open for the September 30. DROP participants continue to contribute during the DROP period.252 123.671 9. but receive a refund of these contributions and a portion of the interest upon retirement.134.in addition to the contributions of the member to meet the cost of all benefits payable on the member's behalf. the required contribution rate of the employer for ERS (state employees) was 11. JRF members and certified firefighter. For fiscal year 2010. and certified firefighters. The remaining amortization period is 30 years for the TRS. The remaining amortization period is 30 years. generally reduce (increase) the unfunded actuarial accrued liability. a. 2009 actuarial valuations for the TRS and the ERS. State policemen are required to contribute 10 percent of earnable compensation.638 36.698 32. The required contribution rate of active plan members for TRS and ERS (excluding state policemen.

Employees' Retirement System of 126 . The current value of the employee contributions may be withdrawn upon termination.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. retirement. Actuarial Methods for ERS Valuation Date: September 30.DEFERRED COMPENSATION The State offers employees the opportunity to participate in an optional deferred compensation plan created in accordance with Internal Revenue Service Code Section 457. 2010 The schedule of funding progress.61%-7.837.726 Percentage of APC Contributed 100 100 100 Net Pension Obligation 0 0 0 Year Ended 2008 2009 2010 B. All members of the Teachers' Retirement System of Alabama. The Peace Officers Annuity and Benefit Fund is a cost-sharing multipleemployer defined benefit pension plan that provides a small additional pension benefit to state and local peace officers beyond that which is paid by the Employees’ Retirement System. 2007 Actuarial Cost Method: Entry Age Asset Valuation Method: 5 Yr Smoothed Market Amortization Method: Level Percent Open Remaining Amortization Period: State Employees 20 years. NOTE 8 .5% The annual pension cost for the State employer segment of ERS was as follows: Three-Year Trend Information Annual Pension Cost (APC) $ 160. It is the opinion of the State's legal counsel that the State has no liability for losses under this plan but does have the duty of due care that would be required of an ordinary prudent investor. for a small number of hourly workers and railway employees. Contributions in 2010 for agent employer ERS were made in accordance with actuarially determined contribution requirements determined through an actuarial valuation performed at September 30.372 191. These pension plans are not material to the State. death.75% * Cost of Living Increases: None *Includes inflation at 4. 2007. presented as required supplementary information following the notes to the financial statements. The plan is available to all state employees and permits them to defer a portion of their salary until future years. the Hourly Plan and the Terminal Railway Plan. presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.182. Other Pension Plans The State Port Authority administers two single-employer pension plans.909. The Public Employees' Individual Retirement Account Fund/Deferred Compensation Plan (RSA-1) is administered and operated by its Board of Control. State Policemen 20 years Actuarial Assumptions for ERS Investment Rate of Return: 8% * Projected Salary Increases: 4.980 191. The Clerks and Registers Supernumerary Fund is a cost-sharing multipleemployer defined benefit pension plan that provides pension benefits to circuit clerks and registrars of courts. or an unforeseeable emergency.

Employees covered under these two plans who retire from active service and begin receiving monthly benefits from the Employees' Retirement System of Alabama or from the Teachers' Retirement System of Alabama may elect to continue coverage under the group insurance plan by consenting to have deducted from their monthly benefit payment the difference in the total cost of their insurance coverage and the portion authorized to be expended by the SEHIP or PEEHIP for coverage of such retired employees. Suite 200 Montgomery. The retiree portion of the SEHIP is accounted for through the Alabama Retired State Employees’ Health Care Trust and the retiree portion of the PEEHIP is accounted for through the Alabama Retired State Employees’ Health Care Trust (see plan description). and the Public Education Employees’ Insurance Board administers PEEHIP.332. This plan is also a deferred compensation plan organized under IRC Section 457. State employees may also participate in a plan administered by Great-West Retirement Services. As of the latest actuarial evaluation. A. The State has no fiduciary responsibility for the assets and therefore does not include the plan in its reporting entity. The plan contract requires the assets to be held in trust for the benefit of plan participants. and employees of employers eligible to participate in the Employees' Retirement System.O. NOTE 9 . 2010. Judicial Retirement Fund. are eligible to participate in this plan. At September 30. The State Employees’ Insurance Board administers SEHIP. in accordance with Code of Alabama 1975. 2010.000. Section 16-25A-17. In order to fund the ongoing costs of these other postemployment benefits (OPEB). A copy may be obtained by writing to: State Employees’ Insurance Board P. the State has established two trust funds as described below to comply with GASB Statements 43 and 45. AL 36130-2150 The State Employees’ Insurance Board issued a stand-alone financial report that includes the Alabama Retired State Employees’ Health Care Trust financial statements and detailed disclosures for the year ended September 30. 2010. The Alabama Retired State Employees’ Health Care Trust is a single employer defined benefit health care plan established as an irrevocable trust in 2007 by Constitutional Amendment 798. Plan Descriptions The Alabama Retired Education Employees’ Health Care Trust is a multiple employer cost-sharing defined benefit health care plan established as an irrevocable trust in 2007 by Constitutional Amendment 798. to all retired employees of state educational institutions through the Public Education Employees' Health Insurance Plan (PEEHIP).540. Section 36-29-10. Box 304900 201 South Union Street.POSTEMPLOYMENT HEALTH BENEFITS In addition to the pension benefits described in the Retirement Plans note. A copy may be obtained by writing to: The Public Education Employees’ Health Insurance Board P. The Public Education Employees’ Health Insurance Board issued a stand-alone plan financial report for the Alabama Retired Education Employees’ Health Care Trust that includes financial statements and detailed disclosures for the year ended September 30. Box 302150 201 South Union Street Montgomery. net assets of the plan totaled $1.Alabama. O. to all retired state employees through the State Employees' Health Insurance Plan (SEHIP) and. there were 192 participating employers. the State provides postretirement health care benefits. in accordance with Code of Alabama 1975. AL 36130-4900 127 .

2005 except for disability. Optionally. an appraisal is performed to determine the fair value of the investments. Therefore. Mortgage-backed securities are reported based on estimated future principal and interest payments discounted at the prevailing interest rate for similar instruments. the retirees may use this insurance allocation to purchase two plans of optional insurance offered by PEEHIP with no out-of-pocket cost. the State has no net OPEB obligation related to the PEEHIP. Most of the remaining amount was on-behalf payments for local school boards that are not part of the State’s reporting entity. Retirees who are eligible for Medicare benefits must pay $1. Funding Policy The cost of the teachers’ health care benefits is paid from the regular appropriations made to individual education entities.000. Under the SEHIP statute. the state and its discretely presented component units paid 100% of the statutorily determined contribution requirements. 45.54 per month for the coverage. Also. $1. Employer contributions are recognized when earned.14 per month for the Hospital/Medical coverage while those who are not eligible for Medicare must pay $97.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. 128 . Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. For retirees. Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. C. The State provides health care benefits for retired state employees through SEHIP. the State pays 100 percent of the premium for a retiree who is over 65 and eligible for Medicare.959. 1.738 was an on-behalf payment for the primary government of the State of Alabama and $949. The Medicare Part D subsidy for fiscal year 2010 was $27. The retiree is responsible for the amount of contribution not covered by the State. COBRA insurance is also available to state employees who terminate state service. In all instances.193.472. who retire on or after October 1. Investments All plan assets are carried at fair value except short-term investments which are reported at cost. Of this amount. 2010 B. The retired employee allocation is funded through the active employee premium. The Medicare Part D retiree drug subsidy for fiscal year 2010 was $6. For retirees who retired prior to October 1. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Act 2004-648 provides that the State contribution for retiree health insurance premiums shall be based on years of service.976 on-behalf payments of the major discretely presented component units of the State of Alabama. requires additional reporting and disclosures for OPEB plans. Basis of Accounting Both Trusts are “other employee benefits trust funds” that operate under the accrual basis of accounting. 2. Summary of Significant Accounting Policies 1.794. but the employee is liable for the premiums. the State contribution per month per retiree is funded on a pay-as-you-go basis through the active employee premiums each agency pays for its active employees. Annual OPEB Cost and Net OPEB Obligation Government Accounting Standards Board Statement No. Additional premiums are paid for dependents. Contribution requirements are determined by statute. the State may make additional contributions. The State contribution to the health insurance premium shall be reduced by two percent for each year of service less than twenty-five and increased by two percent for each year of service over twenty-five. which approximates fair value. Investments not traded on exchanges are valued based on the selling price of similar investments sold in the open market. Additional funds were not contributed during fiscal year 2010. The PEEHIP is a cost-sharing multiple-employer plan. In those instances where there are no similar investments sold in the open market. pursuant to plan requirements. The State pays a portion of the premium for a retiree who is under 65. Plan member contributions are recognized in the period in which contributions are due. 2005.

consistent with the long-term perspective of the calculations.330 (10. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. was as follows: Retired State Employees' Health Care Trust (SEHIP) 09/30/2009 $ 4. 3.097 (Amounts in thousands) Actuarial Valuation Date Actuarial Accrued Liability (AAL) Actuarial Value of Assets Unfunded Actuarial Accrued Liability (UAAL) Funded Ratio Covered Payroll UAAL as a Percentage of Covered Payroll 252. 129 .913 384.053. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets.694 (833) 861 2.488 2% $ 1.340 $ $ $ Percentage of annual OPEB cost contributed: 49% 2.479 3.129 1.607.The SEHIP is a single employer plan. beginning of year Net OPEB obligation. Funded Status and Funding Progress The funded status of the plan for the retired state employees as of the most recent actuarial valuation dated September 30.2% Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future.856 Component Units $ 17. 2009.489 14.646) 99.087 (Amounts in thousands) Annual required contribution Interest on net OPEB obligation Adjustment to ARC Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligation. The following OPEB amounts are for the SEHIP: Primary Government $ 192.658 124 (88) 1. end of year Fiduciary $ 1.943 284.192 36.599) 8. The actuarial value of assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five year period. The schedule of funding progress.588 $ 4.275 (910) 17.076 88.142.895 27. presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.230) 196.589 (96. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. presented as required supplementary information following the notes to the financial statements.494 (8.

967 106.00% Ultimate Trend Rate: Medicare Eligible 5.584 424.130 4. 4. as of September 30.777 Percentage of Annual OPEB Cost Contributed 40% 49% 49% Net OPEB Obligation $ 206.317 Major Discretely P resented Component Units Auburn University 9.381 215. the discount rate may be increased to reflect equity investment the fund may have after full pre-funding begins.668 214.758 8.284 $ 15.598 24. Trend Information The following table details employer contributions to the Alabama Retired Education Employees’ Health Care Trust: (Amounts in Thousands) Primary Government $ Annual Required Contribution* 2009 2008 2010 17.5% The assumed investment rate of return reflects the fact that although. 2007 Actuarial Cost Method: P rojected Unit Credit Asset Valuation Method: Market Value of Assets Amortization Method: Level Percent of Pay Remaining Amortization Period: 30 Years Period Closed/Open: Open Actuarial Assumptions for Retired State Employees' Health Care Trust Investment Rate of Return: 5. If the Plan starts fully pre-funding benefits. 2010 The actuarial methods and significant assumptions used to determine the ARC for fiscal year 2010 are as follows: Actuarial Methods for Retired State Employees' Health Care Trust Valuation Date: September 30.50% Pre-Medicare 11.903 5. the Plan does not have assets in trust solely to provide benefits to retirees and their beneficiaries. This investment rate of return assumption is independent of the inflation assumption.573 * 100% of t he st atut ori ly required contribut ions were contribut ed.00% Medical Cost Trend Rate: Medicare Eligible 9.302 $ 15. 2007.170 314.214 University of South Alabama 6. (Amounts in thousands) Employer Contributions $ 137.078 University of Alabama 25.498 105.078 Annual OPEB Cost $ 343. The employer contributions and annual OPEB cost of the SEHIP is presented in the table below.935 22.00% *Includes Inflation at 4.283 2008 2009 2010 130 .00% Year of Ultimate Trend Rate: 2016 Dental Trend Rate: 5.033 8.00% Pre-Medicare 5. a trust has been established along with a policy to make regular contributions representing a partial payment toward the ARC each year.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.

which then uses the money to pay the bond principal and interest. the UAH Athletic Association. respectively. O. but the Authority is not a part of the City's reporting entity and is therefore considered a separate "stand-alone government. 2013. the North Alabama Center for Educational Excellence. These bonds were partially refunded in 1992 with a new bond issue of $66. the UAH Alumni Association." The bonds issued constitute conduit debt obligations of the Authority. 14. the Alabama A&M Research Institute. These financial statements exclude certain foundations and other organizations affiliated with state colleges and universities.150. "The Reporting Entity" and GASB Statement No. Tennessee. Joint Ventures The Tennessee-Tombigbee Waterway Development Authority is a joint venture created by a compact executed between the State of Alabama and the States of Mississippi. The bonds' final maturity is on October 1. These are: the University of Alabama at Huntsville Eminent Scholar Foundation.RELATED ORGANIZATIONS The State's officials are responsible for appointing a majority of the members of the boards of other organizations. a public corporation. NOTE 11 .JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS A. The State appoints the nine-member board of the Private Colleges and Universities Facilities Authority and a majority of the eleven member board of the Alabama Family Trust Corporation.000. The fiscal year of the TennesseeTombigbee Waterway Development Authority ends on December 31.RELATED PARTY TRANSACTIONS The Montgomery Downtown Redevelopment Authority. The State operates and maintains the building and has entered into an agreement with the Authority whereby the rental payments from state agencies occupying the building are paid to the Authority.000 to the Authority for fiscal year 2010 and fiscal year 2009. Members of the board of directors of the Authority are appointed by officials of the City of Montgomery. The payments to the Authority are reported by the State as debt principal and interest expenditures. Key financial data for the Authority is shown below. Its purpose is to develop and promote a navigable waterway between the Tennessee and Tombigbee rivers and provide a nine foot deep navigable channel.200.265.NOTE 10 . an amendment to GASB 14. but the State's accountability for these organizations does not extend beyond making appointments. none of which is reported in these financial statements. MS 39703. issued $65. Drawer 671. the University of South Alabama Medical Science Foundation.000.000 of bonds in 1988 to construct the Gordon Persons office building. Jointly Governed Organizations The Historic Chattahoochee Commission is a jointly governed organization that was created by a compact executed between the State of Alabama and the State of Georgia. NOTE 12 . The State of Alabama provided $119. the Alabama Engineering Foundation. While the purpose of these foundations and associations is to operate exclusively for the benefit of the colleges and universities. and are therefore reported as revenue bond debt of the State. the University of Alabama Birmingham 131 . and Kentucky. such organizations do not constitute component units under the provisions of Governmental Accounting Standards Board (GASB) Statement No. The Authority has also issued conduit debt on behalf of other governments and third parties. B. Columbus. 39. the Alabama A & M Foundation. The Series 1992 bonds were refunded in 2002 with a new bond issue of $43. The Commission had $339.000 in revenues in 2010. (Amounts in Thousands) 2010 Fund Balance Revenues Expenditures *Revised $ 212 337 322 2009 * $ 197 388 364 Complete financial statements for the Authority can be obtained at P.000 and $135.

if any. the UAB Health System. the State received $97. $101.128.000 of funding from HSF in 2010. Any disallowance resulting from a federal audit may become a liability of the State but cannot be reasonably estimated at this time. Entitlement to these resources is generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal regulations. may have an impact on the related individual state agencies and funds.0 million in fiscal year 2007. and the Valley Foundation. when aggregated. The lawsuits involving potentially significant amounts are described below. 2010 Educational Foundation (UABEF). UAB contributed $6...9 million in fiscal year 2005. This settlement money is intended to compensate the State for smoking related health care costs incurred by various state programs. American Tobacco Co. $106.932. C.000 during 2010 to the UAB Health System Board.000 during the 2010 fiscal year. The operating revenues of UAB include approximately $39. The MSA contains a provision that allows an adjustment to reduce the payments by 132 . the University of Alabama Birmingham Health System. the University of Alabama Health Services Foundation. The UABEF made contributions to the University of Alabama at Birmingham (UAB) of $4. $102.C. which is used to support the educational and research activities of UAB. UABEF leases certain facilities to UAB with annual rental expense of approximately $1. The Foundation reimburses the University for certain administrative expenses and other related support services. $116. It is believed that any liability resulting from a determination of noncompliance will not materially affect the State's financial condition. Tobacco Settlement As a party to a successful multi-state legal settlement with the tobacco industry.000 for 2010. Federal grantor agencies from time to time review state records to determine whether the State has complied with the terms and conditions of grant agreements and federal regulations. no receivable for these amounts is recorded in these financial statements. et al.365. Total amounts received for such expenses were approximately $1. $94. B.000 for 2010. (HSF). The monetary impact.1 million in fiscal year 2008. no provision for potential liability has been recorded in the accompanying financial statements. P.CONTINGENCIES A. filed in the Circuit Court of Montgomery County is an arbitration proceeding concerning the Master Settlement Agreement (MSA) that was negotiated with the tobacco industry in 1998. Due to the uncertainty involving the ultimate outcome and amounts of the unresolved litigation described below.2 million in fiscal year 2010. have no material effect on the accompanying government-wide financial statements.6 million in 2003 and $224.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30. An affiliation agreement documents the relationship between HSF and UAB.6 million in fiscal year 2004. Grants The State receives federal grants for specific purposes that are subject to review and audit by the grantor agencies.668. The purpose of this agreement is to provide common management for their existing and future health care delivery operations. et al. UAB and HSF have entered into an agreement which established a common management group.313. $99. The MSA was entered into as a settlement of litigation brought against the participating tobacco products manufacturers by the Attorney Generals of the signatory states to reimburse the states for health care expenses in treating their citizens affected by the use of tobacco products sold by the manufacturers. Blaylock. Because the exact amount of the future settlement amounts is not measurable. $118.6 million in fiscal year 2006. NOTE 13 .7 million in both 2002 and 2001. some of which involve potentially significant amounts.6 million in fiscal year 2009. Other proceedings involving amounts that. including the expenditure of resources for allowable purposes. Litigation The State is a party to numerous legal proceedings that occur in the normal course of governmental operations. of litigation resulting in adverse rulings is usually addressed in subsequent state budgets and modifications of state laws. The South Alabama Medical Science Foundation exists for the purpose of promoting education and research at the University of South Alabama. v.

was an employment discrimination case filed in 1994 against various state agencies and the State Personnel Department. The Court granted the State’s “Motion for a Ruling” in May 2006. States will not be subject to a reduction in their payments if it is determined that they diligently enforced their escrow statutes. They also seek an injunction against enforcing the current property tax laws until the Governor and legislature enact tax reforms and adequate funding of education. These cases have a significant combined potential refund liability or reductions of assessments. Eugene Crum. In March 2006. State of Alabama. et al. Series 1999-A Bonds. The plaintiffs are seeking a declaratory judgment that the property tax restrictions in the Alabama Constitution violate Title VI of the Civil Rights Act. A trial began in U. 133 . et al. Alabama’s potential share of the adjustment could be as much as $100 million if Alabama is deemed to have not diligently enforced its escrow statutes during 2003. Other cases challenge tax assessments made by the Department. State of Alabama. The Court recently denied class certification to plaintiffs and defendants. The State of Alabama Department of Revenue is also involved in significant tax-related lawsuits or actions that challenge the legality of certain taxes or challenge other provisions of tax laws and procedures. prior to the exercise date for the first Swap Option. Any individual lawsuits remaining are not considered a significant liability to the state. Appeals from those assessments are pending in the Administrative Law Division of the Department of Revenue. JPMorgan gave notice of exercise of the first option in June 2008 and has since given notice of the exercise of each of the other options.000 and recorded liens against various entities within the Colonial Bank family of entities. v. The Crum case alleges discrimination in all aspects of employment. The states are attempting to work together in the negotiations and they are sharing in the preparations for the arbitration. From July 2008 through October 2008.S. Northern District of Alabama. This class action suit is brought on behalf of public school students who maintain that their civil rights have been violated by the manner in which Alabama’s public schools are funded. The 2003 payment has a potential adjustment of $1. in part. and the Constitution of the United States. The State is continuing to negotiate settlements with corporations for potential refunds totaling $87. S. 2011 and is ongoing. Supreme Court ruled that Alabama’s franchise tax scheme unconstitutionally discriminated against interstate commerce. on March 13. et al. the "Swap Options") in connection with the Authority's Series 1998 Bonds. 2008. District Court on March 21.600.. the continuing financial burden that expert updates and responses has placed on the State. The question of whether the state was diligent will be determined by an arbitration panel consisting of three retired Article III federal judges. The parties filed a Joint Motion for Voluntary Dismissal and an Order was granted dismissing the case.C. S. the "Authority Bonds").000. Texas. In March 2002 the Alabama Public School and College Authority (the "Authority") and JPMorgan Chase Bank ("JPMorgan") entered into a series of agreements (collectively.000 plus accumulated interest of $150 million to $200 million.. Jr. the Montgomery Bankruptcy Court. Lynch. v. District Court. The State of Alabama has been involved in settling lawsuits challenging the constitutionality of the franchise tax in effect before 2000. The Swap Options were amended in 2003. This case was settled in December 2010. and in the FDIC receivership in Dallas. Adverse rulings in these cases could also reduce future revenues.the tobacco industry if the MSA has been determined to be a significant factor in the loss of market share by the manufacturers. Section 2000d et seq. On August 14. but is potentially significant.S... the State filed a request to the Court for a ruling on the class certification issue citing. The arbitration commenced in the fall of 2010 with hearings on preliminary matters and is currently ongoing. The financial impact is not determinable at this time. is a class action filed in the U.6 million. 2009. the Authority initiated discussions with JPMorgan about the Swap Options and raised concerns about the structure and legality of the Swap Options. In October 2008 the Authority filed a declaratory judgment action in federal district court requesting the court to determine the rights and obligations of the parties under the Swap Options. The State of Alabama Department of Revenue entered final tax assessments totaling $154. Under the terms of the Swap Options the Authority received lump sum payments of approximately $12. 42 U. Series 1999-C Bonds and Series 1999-D Bonds (together. and JPMorgan was granted an option to require the Authority to enter into fixed rate payer swaps in connection with variable rate refundings of the Authority Bonds. The U. The State Legislature enacted laws to remedy the significant loss of revenue. et al.2 billion nationwide that could be applied to the states that are determined not to have diligently enforced their escrow statutes during 2003. Colonial Bank failed and was taken over by the State Banking Department and the Federal Deposit Insurance Corporation.

the Alabama Housing Finance Authority called approximately $30. The bonds pay interest at varying rates 1% to 5. the Authority submitted a proposal for $60.460. 2030. executed a private placement bond issue in the amount of $1. permits the boards of the educational institutions of the State to allocate an amount of realized and unrealized endowment appreciation as the boards determine to be prudent for donor-restricted endowments. the University issued $52. After initiating a pilot program in December 2010 the program is scheduled to begin in February 2011. the University issued $34. All amounts relating to Pallas’ GICs have been sold and reinvested in money market funds. 2010. In November. The bonds will be payable on December 1 each year. 2010 NOTE 14 . The Authority has drawn $8 million in HHF funds to be used to fund the program as of the date the financial statements were available to be issued.000 in Series 2010C General Revenue Bonds.000 Series 2010A General Revenue Bonds. C. Endowments’ earnings are classified in accordance with donor restrictions and are reported in the component units as net assets restricted for permanent trust – expendable or non-expendable as appropriate. The Authority is currently designing and planning its implementation. 2040. 2027. the University of Alabama at Tuscaloosa issued the Series 2010 B. 2020.000 Series 2010-C Tax-Exempt Capital Improvement Direct Loan Bonds and $13. The bonds pay interest at varying rates 2% to 4% with principal due annually through October 1.000 of the 2008-B and 2009-A debt.860.650. Moody's Investor Services downgraded Pallas Capital Corporation’s guaranteed investment contracts (GICs) below the Alabama Housing Finance Authority’s contractual requirements. 2010.000.SUBSEQUENT EVENTS Primary Government On December 9. a subsidiary of the Alabama College System.000. 2010. 2010. 2010. 2010. The net endowment appreciation of the four-year colleges at September 30.550.045. Component Units From October 1. In November. 2010. 2010 through December 17. The bonds refund the outstanding $79. The proceeds from these bond issuances will fund various capital projects. The colleges’ policies are to retain the endowments realized and unrealized appreciation with the endowments after the spending rate distributions.48% to 3. The interest rates on the 2010-C and 2010-D bonds range from 2. The other four-year colleges have approved similar spending rate policies with rates ranging between 3 and 6%.000 to purchase a strip mall located adjacent to campus. In November. The Housing Finance Agency Hardest Hit Fund (HHF) is funded through the U. The maturity date of the bonds is December 1.STATE OF ALABAMA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended September 30.000.25% with principal due annually through October 1. In November.000 of bonds prior to their scheduled maturities in the single family bond program. In November. NOTE 15 . The interest rates on the bond range from 6% to 6. 2010. within each respective single-family bond issue. the University of Alabama at Birmingham issued $54. In September 2010. Subsequently.975. the Alabama Public School and College Authority issued $53. The bonds pay interest at varying rates 2% to 4. the Alabama State Port Authority issued $106. The Boards of the University of Alabama and University of South Alabama approved a spending rate of 5% of a moving threeyear average of the fair (unit) value. was added in the third round of potential funding in August 2010. 134 . Subsequent to year-end. 2010 was $45.S. as adopted in Alabama.25% and will mature on October 1.714. Alabama.500. On November 9.960. through the Alabama Housing Finance Authority.6 million of HHF funds.000 In Series 2010B General Revenue Bonds.000 Series 2010 Docks Facilities Revenue Bonds.2% with principal due annually through October 1.77%. additional funds totaling $101. 2034.000 Series 2010-D Taxable Capital Improvement Direct Loan Bonds. Department of Treasury to provide funds to help families in states hit hardest by the foreclosure crisis in conjunction with high unemployment rates. Athens State University.9 million were made available to the State of Alabama to be administered by the Authority. and D General Revenue Bonds totaling $149.DONOR-RESTRICTED ENDOWMENTS The Uniform Management of Institutional Funds Act.298.

290. The bonds will refund $8. The maturity date of the bonds is March 1.330. On October 29. 135 . was settled.On November 30. The loan portfolio was offered for sale through a competitively bid transaction. 2010.850. 2010. 2010. Since the Corporation cannot fund any new FFELP loans after June 30.795. the loans were sold to a reputable lender and servicer of FFELP loans who also agreed as a part of the transaction to honor all of the AHELC borrower benefits that were attached to the loans. The Health Care and Education Reconciliation Act (HCERA) of 2010 was signed into law on March 30. The Authority made a payment to JP Morgan of $19. the University of North Alabama refinanced $10. The interest rates on the bonds range from 2% to 4% and the bonds will mature on August 15. On November 17.000 of the 1999-A General Fee Revenue Bonds and issued new debt in the amount of $25. 2030.000 in Build America Bonds for the purpose of constructing a Science and Engineering Technology Facility. 2010.755. 2010. the Alabama Revolving Loan Fund Authority issued $20.000 Series 2000 bonds. 2010. 2010. $61.. on a current basis. On December 20. paid in full at par plus accumulated interest $75.000 in return for a full settlement of claims and mutual release from the swap agreement. Subsequent to September 30. a nonmajor component unit. The bonds are issued for the purpose of refunding. HCERA eliminates the origination and/or guarantee of FFELP loans.000 Series 2006-A1 and Series 2006-A2 bonds. the Declaratory Judgment Action from 2008 in regard to the March 2002 interest swap agreement along with the 2003 amendments between Alabama Public School and College Authority and JP Morgan Chase Bank N.000 Series 2000 bonds. the Alabama Higher Education Loan Corporation (AHELC). 2010. 2023.355. effective July 1.100. 2010.000 Series 2010 Special Obligation and Refunding Taxable Bonds. 2010. a strategic decision was made to sell the entire FFELP Loan Portfolio and utilize the proceeds of that sale and additional equity to redeem its outstanding bonds and eliminate all of the Corporation’s debt.A.000. The interest rate on the bond ranges from 2.000 Series 2010-C Revolving Fund Loan Refunding Bonds. HCERA does allow lenders to make subsequent disbursements on loans originated on or before June 30. the Alabama Water Pollution Control Authority issued $36. On October 19.5% to 6% with principal due annually on March 1.

136) 19 (17.593 1.957 861 254.446 1.264 71 4.473 2.209 39.310) 270.313 31 102 3.140 2.206) (65) (108.801 162.912) (14.987 4.254 45.205 27.296) 136 .680 295.080 216.556 16.157.662 775 269.918) 704 551 1.103 225 6.631 11.654 749 1.272.625 1.771 153.274) (2.292 28 92 3.858 315.398 704 264.448 684 1. 2010 (Amounts in Thousands) GENERAL FUND Actual Budgeted Amounts (Budgetary Original Final Basis) REVENUES Taxes Licenses.437 (313.847 50.201 7.572 776 1.461) (2.449 25.296) $ $ Variance with Final Budget (89.015 (345.099 1 20 386 434 500 20.614 10.847 46.723 24.329 349.175 23.243 2.875) (39.335 11.039) 19 (42.249.120 174.193 27 72 2.312.176 2.433 5.159.184 26.403) 97 (25.028 18.656 2.580 196.553 32.644 234.072 22.039 17.069 164.737 79.301 1.715 12.007 13.414 71.860 306.040 2.176 16.009 12.986) (44.034 7.683 168.622 12.335 14.841 4.990) (25.343 13.324 89.306) (44.860) 0 $ $ 1.034 (313.083.888 8.039 15.266.719 163.165 11.591 13.790 2. Permits and Fees Fines.470 1. and Court Settlements Investment Income Federal Grants and Reimbursements Other Revenues Total Revenues EXPENDITURES Administrative Office of Courts Agriculture and Industries Attorney General Auditor Commission on Higher Education Corrections Economic and Community Affairs Education Emergency Management Examiners of Public Accounts Finance Governor Human Resources Industrial Relations Legislature Medicaid Mental Health Postsecondary Education Public Health Public Safety Public Service Commission Rehabilitation Services Revenue Secretary of State Transportation Treasurer Youth Services Colleges and Universities Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Bonds Issued Insurance Recovery Proceeds Total Other Financing Sources (Uses) Net Change in Fund Balances $ $ 1.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule All Budgeted Funds For the Fiscal Year Ended September 30.396 26.545 5.861 8.045.653 342.815 4.380 64.928 (18.297 29.441 14. Forfeits.084 121 3.680) 0 $ 955.111 (1.712 15.471 34.

448 1.247 111.122.444 100 3.455 5.568 8.725 181.499 60.531 22.038 (2.066 8.264 (552.449 3.340.093 65.785 548.689 2.204 1.452 6.383.645 4.389 682.819 131.972) 12.045 928.354) (52.772 481.741 25.002 420 (55.315.764 12.461.717 33.925 26.311 87.872) 5.451 11.098 1.893.837 83.852 859.775 153.040 55.504 18.019 16.831 16.226.164 2.863 100.257.329 1.503 650.070 107.422) (55.957 23.854 3.EDUCATION TRUST FUND Actual Budgeted Amounts (Budgetary Original Final Basis) $ 5.413 1 5.128.748.254.586.079 3.838 1.409 382 (53.778 3.978 127.865 6.029) (5.532 52.033.047 133.522 5.151.002) $ 0 $ $ 5.623 14.924 15.502.783.131.437 $ $ EARMARKED FUNDS Actual Budgeted Amounts (Budgetary Original Final Basis) 1.972 3.741 364.275 79.149 15.461 32.952) (552.635.706 51 260 5.100 1.152 282.946 2.450 408.702 0 $ 1.712 7.128.961.240) (239.220 46 236 5.216 7.017 63.312 137 .742 369.598.477 (2.251 23.375.491 37.193 69.881.576.439 12.321 26.747.216.249.109 4.972) 0 $ 5.001) (1) (10.748 3.233 100.556 418.248 22.815 5.504 112 2 1.147.532 134.456 583 811 13.435 80.182.706.476 769.023.929) (3.586 166.684 303.795 5.972 382 (53.017 20.920 26 2.198 1.917 56.133 4.202 23.952 124.896 5.226.437 $ $ Variance with Final Budget (10.219 6.502 16.872 64.336 28.637.437 0 0 12.751 140.889.420 15.767) (102.491 26 1.433 18.164 2.970 4.128.023.501 62.376 1.954.693.042 5.850 29.438) 2.896 113.613.902 (1.464 22.821 26.468 19.841 499.669 3.694 11.326 22.980 1.629 9.212.312 $ $ Variance with Final Budget (341.702) 2.027 100 4.361.182 1.982.136 911.757 17.122 107.015 55.189 71.602.914 172.066 345.002) 2.656 1.211 19.221 46 237 5.233 2.750 358.732 303.673.426 85.080 7.829 33.845 879.838 3.952) 358.495 5.509.210 13.356 4.847.173.946) 2.725 185.243 923.688.081 97.451 137.487.855 17.797 91.380 14.065) (2.044 1.094.005 378.893.946 1.173 18.403 136.854 3.842) (6.429 250.958 882.946 0 $ $ 1.453 3.024 9.861 19.978 132.228 24.354) (52.093.754 139.377 1.469 125.698 3.216.431 22.455 774.090 28.319 21.009.871 129.035.474 1.783.501 9.855 395.384 5.

437 Earmarked Funds $ 358.125 (86.879 (22. 2010 (Amounts in Thousands) BUDGETARY FUNDS General Fund Net Change in Fund Balance Reconciliation to GAAP Basis: Perspective Differences: Reclassification of budgetary funds to GAAP financial statement fund types Basis Differences: Accruals of revenues and other revenue adjustments Accruals of expenditures.567) 13.541) (244.026) (22.586 $ $ 138 .526) 0 172.040 (3.985) (221.312 Alabama Trust Fund - - (358.170 2. October 1. expenses and other non-budgeted items To remove asset purchases treated as budgetary expenditures To remove encumbrances recognized as expenditures To recognize prior budget year expenditures/expenses To remove budget expenditures/expenses not accrued as liabilities Entity Differences: Add net operating results for funds not budgeted Net Change in Fund Balances/Net Assets .033 (861) 129 967 132 (81) - (139.332) 222.312) $ 5.707) 1. September 30.424 (38.800 2.142 69 82. 2010 $ (44.416 $ 3.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule Budget-to-GAAP Reconciliation For the Fiscal Year Ended September 30.296) $ Education Trust Fund 12.GAAP Basis Fund Balances/Net Assets.047) 324 3. as Restated Increase (Decrease) in Inventory Fund Balances/Net Assets.027 178. 2009.951.129.

805) 11.995) 42.800 (29) (1.201) 10.508.728 $ (56.FINANCIAL STATEMENT CLASSIFICATION Public Road and Bridge Fund Public Welfare Trust Fund Pension (and Other Employee Benefit) Trust Funds PrivatePurpose Trust Funds Medicaid Fund Nonmajor Governmental Funds Enterprise Funds Internal Service Funds Component Units $ 53.665.342 1.708 (2.729.882 19.195 982 (691) 19 (366) 6.763) (71.576) 15.246.069.315 8.174 (4.600 24 $ 1.746 (274.336 823 (150) (134) 550 14.680 7.417 1.085.924 6.403 1.199.057 (144.926 43 49.128.671 $ 6.385) (178) 245.835) 716 39.494 $ 156.314 $ 472.508 4.537 26.200) 83.134.951 (65.319 (8.142.505) 1.034 418.670) (45.210) $ (16.121 (71.641) $ (541) $ 93.411 (6.672 17.167 $ 132.698.360 (7.408) (86.420 $ 139 .065 78 46.749 6.820 $ 1.217 $ 2.872 $ 82.369 733.966 $ 1.245 616 399 (224) 91 164 761 52 (22) 3.573 4.499 262.763 $ 157.654 1.360) 43.327 1.660.931 (31.355) 37.614 12.145 (12.885) 19.964 (930) 52.940 612.579 144.955) 4.387 $ 27.030 5.452 2.909) $ (11.989 7.

and the Governor's recommendation for the next year. Increases to these estimated amounts do not require a new bill and are included as other appropriations. During fiscal year 2010. as well as portions of some proprietary and fiduciary operations. Requested changes in programmatic expenditures over the prior fiscal year must be explained. The Earmarked Funds group includes the operations of most governmental funds of both the primary government and the component units. local funds. current year. Numerous statutes exist which restrict the use of most state revenue sources to specific uses. the budgeted revenues consist of the amount of budgeted expenditures allocated among the revenue categories in proportion to the actual amounts received. These estimates are submitted annually to the Executive Budget Office of the Finance Department on or before the first day of the third month preceding each regular session of the Legislature. The budget is prepared by program elements for each agency. The first is the General Fund. The General Fund appropriations were reduced as a result of proration in the amount of $184 million and then proration was reduced by $31 million later for a net proration of $153 million. The Earmarked Funds are generally funded by a combination of federal funds. or contributions in excess of the amount appropriated are automatically appropriated to be used for the purposes specified in the gift. The Appropriation Acts do not include a revenue budget. For each agency. The Appropriation Acts specify that in addition to the appropriations made. grants. Emergency appropriations cannot exceed two percent of the total General Fund appropriation bill. The recommended appropriation bills indicate the programmatic appropriation to each agency and the source of funds from which each appropriation is to be paid.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Notes on Budgetary Accounting and Reporting For the Fiscal Year Ended September 30. The Legislature then legally enacts the State budget into law through the passage of a number of bills as Appropriation Acts. Some conditional appropriations are included in the Appropriation Acts. the agency's request for the next year. State law also requires that if revenues actually received are inadequate to fund the appropriations. and interest income. estimates prepared by legislative and executive branch professional staff assure the legislature that adequate revenues will be available to meet the level of appropriations approved. comparative summaries of appropriations and revenues are presented for the prior year. The State funds its budgetary activities under three budgetary fund groups. which is restricted to funding all levels of educational activity in the State. Some expenditures are required by law to be fully funded and estimated amounts are approved in the General Fund appropriation bill. grant. The ETF is funded primarily by income taxes and sales taxes. 140 . The Appropriation Acts budget by agency and program rather than by GAAP basis funds. Original appropriations to the Departmental Emergency Fund are included in the original budget. and specific taxes and licenses. Approximately $101 million of supplemental appropriations and $3 million of conditional and other appropriations were distributed to various agencies from the General Fund. $20 million of supplemental appropriations were distributed from the Education Trust Fund. respectively. all gifts. The budget document. is published and transmitted to the Legislature on or before the second legislative day of each regular session. The Department of Corrections and the Medicaid Agency received supplemental appropriations in the amounts of $52 million and $42 million. For the Budgetary Comparison Schedule. or contribution. then the appropriations must be prorated to the level that the revenues will support. The third budgetary group is referred to in the budget documents as Earmarked Funds. and proposed capital expenditures must be justified as required by the Executive Budget Office. Most of the $3. The General Fund is funded by a wide variety of taxes. as finally developed by the Governor. The Education Trust Fund appropriations were reduced twice as a result of proration in the amounts of $428 million and $114 million. licenses. which includes many of the general operations of the three branches of government. 2010 Budgetary Process Formulation of the budget begins with the preparation of estimates of expenditure requirements for the next fiscal year by the administrative head of each budgeted agency and institution. unless the conditions have been met before the fiscal year begins. At the time of their passage.4 billion increase in the Earmarked Funds is increased federal funds. The second is the Education Trust Fund (ETF). This includes federal funds which are included in the Earmarked Funds. Veterans Affairs received a supplemental appropriation of $14 million. The agencies do not include these conditional amounts in the original budget.

At the end of fiscal year 2010 there were no funds left that could be drawn for either Rainy Day Accounts. Encumbrances remain valid for a period of one year following the end of the fiscal year. Lapsing of Appropriations All non-capital outlay appropriation balances not reserved by encumbrances or accounts payable lapse at September 30 of each fiscal year. At fiscal year end this control becomes stricter. Any transfers approved by the Governor must be reported to the Legislature. The Finance Department monitors revenue projections during the year to ensure that adequate funds will be available to meet budgeted expenditures. Below this legal level of control. The Rainy Day Accounts must be replenished within 10 years for the General Fund withdrawals and 6 years for the Education Trust Fund withdrawals. Encumbrance balances are reported on the budgetary basis statements as expenditures. Encumbrance accounting is used as purchase orders are issued to ensure that purchase orders plus expenditures do not exceed allotment balances. These interagency agreements must also be approved by the Governor. For example. the Governor is required to prorate appropriations and restrict allotments to prevent an overdraft or budget deficit in any fiscal year. he can only transfer existing authority. Under the Budget Management Act. then oil and gas capital payments in the Alabama Trust Fund will be used to fund withdrawals from the Rainy Day Accounts.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Notes on Budgetary Accounting and Reporting For the Fiscal Year Ended September 30. “Lab Analysis and Disease Control” and “Agricultural Inspection Services” are two programs within the agency of Agriculture and Industries. The General Fund was prorated by 12% and then reduced by 2% in 2010. Encumbrance Accounting Encumbrances represent commitments related to unperformed contracts for goods and services. If proration is declared for the General Fund. any non-capital outlay appropriation balance not reserved by encumbrances lapses at November 30 following each fiscal year. Rainy Day withdrawals may not exceed the lesser of (a) ten percent of the previous fiscal year’s General Fund appropriations less the total amount of any prior years’ withdrawals from the account which have not been repaid to the account. Encumbrances outstanding at year end in governmental funds are reported on the GAAP basis statements as a reservation of fund balance. the Governor cannot create new budget authority. Within the Alabama Trust Fund. the professional management of the Finance Department. as purchase orders plus any other obligations or accounts payable incurred against fiscal year appropriations may not exceed allotment balances. The General Fund has 10 years to pay back $162 million which was withdrawn in 2010. The Budget Management Act legally authorizes the transfer of appropriations between programs within an agency with the approval of the Governor. If cash collections do not meet budget projections. Allotments of appropriations are made quarterly based on the plans of operations submitted by the agencies.5% and then by an additional 2% in 2010. Both the Constitution of Alabama of 1901 and the statutes require a balanced budget for annual financial operations. The Education Trust Fund was prorated by 7. If proration is declared for the General Fund or the Education Trust Fund. Rainy Day withdrawals may not exceed the lesser of (a) six and one-half percent of the previous fiscal year’s Education Trust Fund appropriations less the total amount of any prior years’ withdrawals from the account which have not been repaid to the account. under the authority of the Governor’s policy. A change between objects within appropriations for programs (financial management level) must have the approval of the Budget Officer and the Finance Director. and then must follow that plan or explain why a change must be made. or (b) the average of the estimated available revenue for the General Fund certified by the Finance Director and the Legislative Fiscal Officer prior to the third legislative day of the Regular Session. Each agency must submit an operations plan detailing planned expenditures down to the object level. If proration is declared for the Education Trust Fund. 2010 Budgetary Control The legal level of control is the agency and program specified in the Appropriation Acts. Furthermore. The Department of Finance enforces both the legal level and the professional management level of budgetary control through automated edits which must be complied with before making expenditures against an appropriation. exercises budgetary control at the fund and object level. Balances of 141 . or (b) the average of the estimated available revenue for the Education Trust Fund certified by the Finance Director and the Legislative Fiscal Officer prior to the third legislative day of the Regular Session. a General Fund Rainy Day Account and an Education Trust Fund Rainy Day Account have been created by constitutional amendment. Transfers between agencies. may be made pursuant to interagency agreements executed for the purposes of accomplishing the objectives for which the Legislature made the appropriation. and the Education Trust Fund has 5 years to pay back $437 million which was withdrawn in 2009. but within the same program.

In compliance with Amendment 26 to the Constitution of Alabama of 1901. This schedule provides detail information at the legal level of control for each individual appropriation item contained in the budget for all budgetary fund groups. The budgetary fund structure for the General Fund group and the Education Trust Fund group is essentially the same as the GAAP fund structure. Capital outlay appropriations for the purchase of land. Therefore. cash always equals or exceeds obligations (encumbrances and estimated accounts payable). which represent obligations against current fiscal year appropriations. Since the accounting principles used in the State’s budgetary basis of accounting differ significantly from those used to present financial statements in conformity with GAAP. The Earmarked Fund group does not correspond to a major GAAP fund and these perspective differences are included in the Budget-to-GAAP Reconciliation. 2010 encumbrances are reported on the Budgetary Comparison Schedule as expenditures. at year end. At year end.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Notes on Budgetary Accounting and Reporting For the Fiscal Year Ended September 30. are accrued. fund balances are reserved to accrue expenditures for those outstanding encumbrances and estimated accounts payable. During the fiscal year. a reconciliation of the differences is presented on the schedule. The budget excludes funds for all entities operating outside the State Treasury. 142 . the construction of buildings. Governmental Accounting Standards Board (GASB) Statement No. 41 requires that budgetary comparison schedules be presented as RSI based on the fund. The Budgetary Comparison Schedule (Non-GAAP Basis) presents comparisons of the adopted budget with actual data on a budgetary basis. encumbrances. or for the maintenance of roads and bridges of the state highway system continue until the completion of the project. Budgetary Basis of Accounting and Fund Structure The State budgets and operates primarily on the budgetary basis which approximates the cash basis with certain material exceptions. A Detail Schedule of Budget and Actual Expenditures appears in the Governmental Funds subsection of the Combining and Individual Fund Statements and Schedules Section of the CAFR. certain distributive accounts such as those for making distributions to local governments. the total reservation may not exceed the cash on hand in the State Treasury. and most debt service accounts. The budgets of some major funds are spread throughout various agencies and programs in the Earmarked Fund group. organization. or program structure that the government uses for its legally adopted budget for a government with significant budgetary perspective differences that result in the government’s not being able to present budgetary comparisons for the general fund and each major special revenue fund.

113 5. Reestimated net incurred losses and expenses as of: End of Accident Year One Year Later Two Years Later Three Years Later Four Years Later Five Years Later Six Years Later Seven Years Later Eight Years Later Nine Years Later 7.246 4.292 12.301 10.492 1.255 10.408 7.310 2.042 7.549 10.724 12.355 8.468 15.582 9.796 9.231 15.673 7.891) (3.010 $ 13.722) (2. end of accident year: Incurred Ceded Net incurred 4.012 2.623 10.991 1.120 16.021 9. the correlation between original estimates and reestimated amounts is commonly used to evaluate the accuracy of net incurred losses currently recognized in less mature accident years.113 6.730 10.957 10.991 7.751 23.030 10.449 7.247 12.021 12.764 9.094 17.930 14.973 10.068 12.012 $ 4.977 15.391 14.796 9.625 $ 31.133 15.732 9.975 12.686 3.602 10. 2010 The following table illustrates how the State Insurance Fund's (Fund) earned revenue (net of reinsurance) and investment income compare to related costs of loss (net of loss assumed by reinsurers) and other expenses assumed by the Fund as of the end of each of the previous ten years.012 3.160 34.796 9.730 10. Reestimated ceded losses and expenses 6.051 $ 28. Premiums and investment revenue: Earned Ceded Net Earned 2.459 7.220 9.094 17.956 8.796 9.138 12.673 446 9.424 7.135 2.432 9.857 13. (2) This line shows each fiscal year's other operating costs of the Fund including overhead and loss adjustment expenses not allocable to individual claims.801 13.950 13.584 16.096 12.022 15.843 2.819 9.245 12.321 1.636 11.) (7) This line compares the latest reestimated net incurred losses amount to the amount originally established (line 3) and shows whether this latest estimate of losses is greater or less than originally estimated. The columns of the table show data for successive accident years.781 9.160 15.471 7.888 16.661 16.103 10.582 9.816 2.638 6. Unallocated Expenses 3.025) (2.535 7.716 7.505 $ 11.347 10. and reported premiums (net of reinsurance) and reported investment revenue.231 10.785 $ 20. (4) This section of ten rows shows the cumulative net amounts paid as of the end of successive years for each accident year.158 15.843 9.146 1.613 12.630 1. and emergence of new losses not previously known. amounts of premiums ceded.871 $ 11.256 2.278 7.113 10.923 2.033 1.538 (214) (713) (2.538 6.347 10.760 $ 17.066 10.435 28.113 5.467 580 9.489 16.257 6.054 11.058 12.240 15.781 6.893 16.796 9.687 7.160 10. As data for individual accident years mature.962 7.983 11.621 6.980 12. Estimated losses and expenses.889 6.978 89 17.696 19.803 15.453 7.096 12.782 9.889 16.887 4.778 16.603) - - 143 .558 14.843 7.846 9.582 17.160 9.459 7.746 9.086 8.999 11.108 $ 26.625 6.729) 5.887 9.662 10.746 9.336 11.617 14.278 20.231 10.840 6. Net paid (cumulative) as of: End of Accident Year One Year Later Two Years Later Three Years Later Four Years Later Five Years Later Six Years Later Seven Years Later Eight Years Later Nine Years Later 5. The rows of the table are defined as follows: (1) This line shows the total of each fiscal year's gross earned premiums and reported investment revenue.319 5.806 990 14. reevaluation of existing information on known losses.513 7.621 13.730 19. losses assumed by reinsurers.278 13.966 10. (This annual reestimation results from new information received on known losses.170 15.278 7. (6) This section of ten rows shows how each accident year's net incurred losses increased or decreased as of the end of successive years.067 16.160 9.273 2010 32. (3) This line shows the Fund's gross incurred losses and allocated loss adjustment expense.682 $ 31.229 10. (Amounts in Thousands) 2001 1. (5) This line shows the latest reestimated amount of losses assumed by reinsurers for each accident year.668 87 16.382 (2.726 10.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Ten Year Loss Development Information for State Insurance Fund For the Fiscal Year Ended September 30. Increase (decrease) in estimated net incurred losses and expenses from end of accident year 2002 2003 2004 Fiscal and Accident Year Ended 2005 2006 2007 2008 2009 32.231 14.738 3.816 13.293 - - 5.221 6.866 9.730 13.957 10. and net incurred losses and loss adjustment expense (both paid and accrued) as originally reported at the end of the year in which the event that triggered coverage occurred (called accident year).778 4.098 15.424 7.113 12.173 23.226 1.571 6.

712 1.9 74.134.1 82. Copies may be obtained by writing to: The Retirement Systems of Alabama P.262.107.934 5.3 79.272.922 2.0 102.726 1.009 6.536 7.541.875 5. Box 302150 201 South Union Street Montgomery.221 (A/B) Funded Ratio 90. AL 36130-2150 144 .704 1.8 (C) Covered Payroll $ 1.335.102.563.163.509 1.862 ((B-A)/C) UAAL as a % of Covered Payroll 45.322.047 1. 2010. 2010 State Employees and State Policemen (Amounts In Thousands) (A) Actuarial Value of Assets $ 4.966 1.5 116.852.1 70.7 80.464.O.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress for Employees’ Retirement System For the Fiscal Year Ended September 30.6 76.579 6.345 5.664 1.922.579.570 5.582.839.3 136.5 Actuarial Valuation Date 9/30/2004 9/30/2005 9/30/2006 9/30/2007 9/30/2008 9/30/2009 The Retirement Systems of Alabama issues a stand-alone financial report that includes financial statements and required supplementary information for the year ended September 30.873 5.297.233 (B) Actuarial Accrued Liability (AAL) $ 5.599 6.047.763 1.336.454 (B-A) Unfunded AAL $ 541.194.019.067.2 92.228.599 1.856 7.

003.796 3.582.488 (A/B) Funded Ratio 0.097 ((B-A)/C) UAAL as a % of Covered Payroll 188.076 $ 2.879 1.588 $ 2.951.7% 2.984.827 1.1% (C) Covered Payroll $ 1.984.381 4.6% 181.053.623.607.796 2.0% 1.7% 252.196 4.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress for Retired State Employees’ Health Care Trust For the Fiscal Year Ended September 30.2% Actuarial Valuation Date 9/30/2007 9/30/2008 9/30/2009 145 . 2010 Retired State Employees Health Care Trust (Amounts In Thousands) (A) (B) (B-A) Actuarial Value Actuarial Accrued of Assets Liability (AAL) Unfunded AAL $ 52.185 88.142.

2010. Box 304900 201 South Union Street. Also.5 percent to 9 percent for the 9/30/2008 valuation and for Pre-Medicare retirees was changed from 12 percent to 11 percent for the 9/30/2007 valuation. a Medicare Advantage Plan was established for Medicare-eligible retirees. Actuarial Valuation Date 9/30/2007 9/30/2008 9/30/2009 *Includes inflation at 4. 2010 Changes in the actuarial assumptions significantly affect the identification of trends in the amounts reported in the Schedule of Funding Progress. The investment rate of return was changed from 4 percent to 5 percent and the ultimate trend rate was changed from 6 percent to 5 percent for the 9/30/2006 valuation. O.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Notes to Schedule of Funding Progress for Retired State Employees’ Health Care Trust For the Fiscal Year Ended September 30. The table below summarizes these changes. Suite 200 Montgomery.5% Ultimate Trend Rate * 5% 5% 5% Year of Ultimate Trend Rate 2016 2016 2016 The medical cost trend rate for Medicare-eligible retirees was changed from 9.0% Pre-Medicare 11. AL 36130-4900 146 . Investment Rate of Return * 5% 5% 5% Medical Cost Trend Rate * Medicare Eligible 9. A copy may be obtained by writing to: State Employees’ Insurance Board P.50%.0% 11.0% 10.0% 9. The effects of these changes are reflected in the actuarial valuations.5% 9. The State Employees’ Insurance Board issues a stand-alone financial report that includes the Retired State Employees’ Health Care Trust financial statements and required supplementary information for the year ended September 30. The medical cost trend rate for pre-Medicare changed from 11% to 10.5% for the 9/30/2009 valuation.

Costs that allow the infrastructure network to be used efficiently over the expected useful life of the assets are expensed as general maintenance costs.0 inches each or 100 inches/mile. the State has adopted the modified approach for reporting roadway and bridge infrastructure assets. If data is collected for the complete route. If data is collected in route samples. A lower IRI measurement represents a smoother condition of pavement. Alabama is required to:  Maintain an asset management system that includes an inventory of eligible infrastructure assets.368 of state maintained bridges and culverts. Under the modified approach. Data is collected by route samples and complete route assessments when available.0 inches every 0. The smoothness is measured by the cumulative height the wheel of a vehicle travels vertically over a mile long section of roadway. The IRI is a standard representing the perceived smoothness of pavements while traveling in passenger cars.01 X 100 = 1 mile) of 1. The United States Department of Transportation developed suggested values for IRI of <60 inches/mile to >220 inches/mile to grade the smoothness condition of the roadway. The Alabama Department of Transportation utilizes this scale of suggested values in its roadway condition assessments. the frequency of collection is every 0. Infrastructure costs that result in an increase in the capacity or an improvement in the efficiency of the infrastructure network are capitalized and added to the historical cost of the assets.01 mile and no weighting is used in the computation of system averages. the IRI for that 1 mile section of roadway would be the sum of 100 measurements (0. Preservation costs are expensed and reported in lieu of a charge for depreciation expense. 2010 Modified Approach As allowed by GASB Statement Number 34.  Estimate annually the amount to maintain and preserve the assets at the condition level established and disclosed by the State.01 miles. The IRI scale is as follows: IRI Rating > 170 Interstates > 220 Other Routes 120-170 Interstates 171-220 Other Routes 95-119 Interstates 95-170 Other Routes 60-94 All Routes < 60 All Routes Condition Poor Mediocre Fair Good Very Good Description Significant Maintenance Required (Resurfacing or Reconstruction) Moderate Maintenance Required (Resurfacing or Reconstruction) Routine Maintenance Required (Pavement Patching) Negligible Maintenance Required No Maintenance Required 147 . if the wheel of a vehicle travels vertically 1. depreciation is not recorded.876 miles of state maintained highways and 5.  Perform condition assessments of eligible assets and summarize the results using a measurement scale. In order to utilize the modified approach. Certain maintenance costs that extend the useful life of the assets but do not increase capacity or efficiency are classified as preservation costs.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Information About Infrastructure Assets Reported Using the Modified Approach For the Fiscal Year Ended September 30. the samples are weighted by route length to give system averages. Assets accounted for under the modified approach in fiscal year 2010 include approximately 10. For example.  Document that the assets are being preserved approximately at or above the established condition level. Roads Measurement Scale The Alabama Department of Transportation uses the International Roughness Index (IRI) to measure and monitor pavement conditions.

Structural elements are sound but have minor deterioration.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Information About Infrastructure Assets Reported Using the Modified Approach For the Fiscal Year Ended September 30.77 74.876 66.99 5 .773 906 10. and the sum of all deck areas. The ten point scale is as follows: Rating 1 . Non-Interstate National Highway System Routes.99 7 or Greater Condition Marginal Satisfactory Good Description Structural elements have been seriously affected by deterioration. Assessed Conditions The following table represents the most recent condition assessment for bridges and culverts classified by Non-Interstate NonNational Highway System Routes.807 906 10.6. Structural elements show negligible signs of deterioration. Non-Interstate National Highway System Routes.192 2009 Rating 79.876 70. and Interstate Routes: As of September 30. 2010 Established Condition Level The weighted average rating of all State maintained roadways shall be “Fair” or better. 2010 Category Non-Interstate Non-National Highway System Non-Interstate National Highway System Interstate System Summary Total and Weighted Average Rating 2.08 62. Established Condition Level The weighted average rating of all State maintained bridges and culverts shall be “Satisfactory” or better.24 2. each bridge deck area.197 2008 Rating 83.54 69.79 77.50 Miles 7. The GASB 34 Bridge Rating is a zero to ten score assigned to each component-rating category and then averaged for each bridge asset classification using an algorithm developed by the ALDOT Maintenance Bureau.17 2.877 64.163 Rating 83.90 Miles 7.12 Bridges Measurement Scale ALDOT uses a weighted rating of the major structure components and the deck area of a bridge or culvert.19 Miles 7.779 906 10.37 79. and Interstate Routes: 148 .49 62. Assessed Conditions The following table represents the most recent condition assessment for roadways classified by Non-Interstate Non-National Highway System Routes. The algorithm uses the assessed weighted ratings.4.

2010 As of September 30.000 for roadway preservation and $2.160.0.0.621 1.149 5.253. Condition levels are expected to continue to meet or exceed the “Established Condition Levels”. 2008.000 for roadway preservation and $22.08 6.594 Rating 6.149 5.67 Structures 2. to preserve and maintain all roadway assets and $10.151 5.434.457.7.76 Estimated and Actual Costs In fiscal years 2010.71 2008 Structures 2.000 for bridge preservation. The State spent $387.84 6.91 6. 2010 Category Non-Interstate Non-National Highway System Non-Interstate National Highway System Interstate System Summary Total and Weighted Average Rating 1. 149 . In fiscal year 2007. $277.000.082. 2007.374 6. 2009.000 for roadway preservation and $47. In fiscal year 2006. the State spent $265. In fiscal year 2009. respectively.STATE OF ALABAMA REQUIRED SUPPLEMENTARY INFORMATION Information About Infrastructure Assets Reported Using the Modified Approach For the Fiscal Year Ended September 30.188.000 to preserve all roadway assets and approximately $10. and 2006.629 1.10 6. In the next fiscal year.000 for bridge preservation in fiscal year 2010. the State spent $293.594 Rating 6. $310.823. the State spent $259.0 million in each year to preserve all bridge assets at or above the “Established Condition Levels” presented above.020.625 1.64 1.000 to preserve all bridge assets at or above the “Established Condition Levels” presented above. the State estimated it would need to spend $306.000 for maintenance and preservation of roadway and bridge assets combined.60 1.362 6. and $247.91 6.69 2009 Structures 2.000 for bridge preservation.0.568.1 million.592 Rating 6. In fiscal year 2008. the State spent $316. $320. the Alabama Department of Transportation estimates that it will need to spend approximately $319.000 for road preservation and $34.000 for bridge preservation.368 6.11 6.793.

150 .

STATE OF ALABAMA FINANCIAL SECTION Combining and Individual Fund Statements and Schedules 151 .

951 $ 2.072 152 .592 70 2 3 155. Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ 995.556 118.694 161 192 61 8.166 61.390 43.068 122.431 1.232 $ 39.328 12 3 2.537 $ 0 3 3 $ 6 2.824 3.206 $ Debt Service Funds 509 300 809 $ Capital Projects Funds 155.364.158 78.824 3.364.751 2.349 $ 0 6 52 3 8.595 210.374 70. Designated for Debt Service Unreserved.318 155.784 153.111 56.129.732 326.259 39.116 1.116 1.751 2. Designated for Capital Projects Unreserved.166 61.524 472.556 120.784 24.805 1.725 719 844.318 806 1.166 61.212 210. 2010 (Amounts in Thousands) Special Revenue Funds ASSETS Cash and Cash Equivalents Investments Due from Other Funds Due from Component Units Investment Sales Receivable Accounts Receivable Due from Other Governments Taxes Receivable Interest and Dividends Receivable Mortgages.273 681 61.279 681 61.171 78.214 61 47.072 $ $ $ $ 39.909 845 9. Notes.909 845 9.983 157.206 $ 806 806 809 $ 153.324 56.748 37 $ 2.667 $ Permanent Funds 13.736 529.256 46. and Loans Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Warrants Payable Investment Purchases Payable Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Due to Other Governments Securities Lending Obligation Deferred Revenue Amounts Held in Custody for Others Compensated Absences Total Liabilities Fund Balances Reserved for: Encumbrances Inventory Restricted Assets Long-term Receivables Permanent Trust Principal Unreserved.274 47.256 46.822 157.390 Totals $ 1.121 43.464 149.020 39.242 1.178.324 56.166 61.STATE OF ALABAMA COMBINING BALANCE SHEET Nonmajor Governmental Funds by Fund Type September 30.824 57.164.669 $ 2.508.242 122.748 37 $ 2.284.202.725 719 855.667 $ 45.470 149.760 57.171 8.748 208 1.748 208 45.129.318 153.732 326.068 1.

353 84.147 367.356 Totals $ 1.724.000 9.496 42.096.037 62.525 45. EXPENDITURES.351.316 47. Permits.667 1.116) (89.293 $ Capital Projects Funds 0 247 282 529 $ Permanent Funds 0 1.331 2.351.742 112.030 10.Interest and Other Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Bonds Issued Refunding Bonds Issued Other Debt Issued Debt Issuance Premiums Insurance Recovery Proceeds Transfers Out Payments to Refunded Bond Escrow Agent Current Refunding to Bondholders Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances.513 44.560) 111.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.525 816 43.358 623.415) (52.887 177.005.663) (74.780.840 (2.600 24 $ 1.246.546) 741.453 717.Principal Retirement Debt Service .327 1.259.256 110.635 1. as Restated Increase (Decrease) in Inventory Fund Balances.644 177.873 262.906 (10.203) (42.540 5.420 5. 2010 (Amounts in Thousands) Special Revenue Funds REVENUES Taxes Licenses.951 153 .165 68.699 5.014.764 26. 2010 $ 1.610) 88.136 1.807 122.671 1.180 91.138 2.700 346.404 2.030 62.547 63.453 717.703 5. and Fees Fines.397 $ Debt Service Funds 0 155 2.415) (52.582 122.055 1. Forfeits.939 24 $ 1.460 6.706 1.611 70.397) (74.000 112.465 50.700 346.658 (696) 962 6.610) 668. 2009.318 $ 1.575 195.746 1.723. October 1.033 361.341 757 14 771 195.085 806 $ 1.478) 467.055 42.764 30.819 110.585 (406. September 30. AND CHANGES IN FUND BALANCE Nonmajor Governmental Funds by Fund Type For the Fiscal Year Ended September 30.635 1.508.372 623.924 (279) 1.965 153.259.285.284.667 1.149 2.669 $ 95. and Court Settlements Investment Income Federal Grants and Reimbursements Other Revenues Total Revenues EXPENDITURES Current: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Capital Outlay Debt Service .121 (280.147 363.421.225 3.127 (350.780.158 840.127 (336.906 237.033 362.906 237.822 187.812) 5.136 20.

154 .

Rehabilitation Services Accounts for the operation of the Department of Rehabilitation Services which operates programs that provide services to aid handicapped citizens. Education Department Accounts primarily for Federal programs administered by the State Department of Education. 155 . Other Nonmajor Special Revenue Funds Are aggregated for reporting purposes and account for various other resources which must be used for specific purposes. and state and regional planning. skills enhancement and employment opportunities. Revenues Allocated to Other Governments Account for revenues from taxes and other revenue sources which are shared with local governments and component units. which promotes the general physical health. traffic control and accident prevention. Economic and Community Affairs The Department of Economic and Community Affairs oversees federal and State programs related to energy management. Industrial Relations Administers the employment security. enforces laws relating to public health and operates programs providing preventive and treatment services to the public. Revenue Administrative Administers the collection of most state taxes and licenses.Nonmajor Special Revenue Funds Nonmajor Special Revenue Funds account for specific revenue sources that are legally restricted to finance particular functions and activities of the State. Other Medicaid Funds Accounts for activity associated with the Medicaid program that is not reported in the Major Governmental Funds under either the General Fund or the Medicaid Fund. Public Health Department Accounts for resources used for the primary operations of the Department of Public Health. Conservation and Natural Resources Is responsible for the management of the State's game and wildlife resources as well as operation of the State parks system. and industrial safety and accident prevention programs. Public School Fund Accounts for revenues and expenditures which are allocated to local boards of education for support of educational programs. workers compensation. Children First Trust Accounts for tobacco settlement revenues that are restricted to various programs that benefit children.

671 $ 158 268 7.744 3.264 Economic and Community Affairs $ 26.677 39 2.827 607 20 4.668 4 12 92.804 39.251 Education Department $ 57.400 63.476 814 371 27.662 956 15.799 4.186 15.659 974 268 7.168 33.264 $ 7.251 156 .392 $ 113 1.997 34 96.230 63.486 40.238 105 63. Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ $ 66.238 108.472 21 117.671 $ $ $ $ $ $ 150 18.340 108.654 157.665 22.744 21.924 $ 16.792 Revenues Allocated to Other Governments $ 73.230 13.062 94 2.747 1.798 $ Other Medicaid Funds 1.172 974 148 1 42.792 $ 0 249.186 15.151 10.127 5.177 937 2 172.563 88.798 $ 0 65 65 4.055 69 33.536 44.589 12.154 14 249.626 3.STATE OF ALABAMA COMBINING BALANCE SHEET Nonmajor Special Revenue Funds September 30.670 65 15.626 8 9.472 157.516 13.860 147.017 $ 12.528 3. 2010 (Amounts in Thousands) Public Health Department ASSETS Cash and Cash Equivalents Investments Due from Other Funds Due from Component Units Investment Sales Receivable Accounts Receivable Due from Other Governments Taxes Receivable Interest and Dividends Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Warrants Payable Investment Purchases Payable Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Due to Other Governments Securities Lending Obligation Deferred Revenue Amounts Held in Custody for Others Compensated Absences Total Liabilities Fund Balances Reserved for: Encumbrances Inventory Restricted Assets Long-term Receivables Unreserved.763 2.493 250 2.154 249.798 $ 15.

457 $ 21 5.326 130 4 1 844 25.194 $ 8.871 23.556 118.033 570 21.502 1.169 1.710 32 6 893 21.950 $ 1.518 37 $ 1.748 43.219 14.464 149.110 $ Children First Trust 20.009 3.537 908 165 13.014.273 78.992 8 570 55 13 12.562 $ Conservation and Natural Resources 68.284.760 57.375 21.824 3.147 19 15.832 $ Industrial Relations 19.246 56.467 $ Other Special Revenue Funds 615.222.951 9.468 480 207.162 $ 7 73 569 305 2.725 719 844.910 107.948 26.968 25.755 3.824 681 18.259 39.889 584 57.226 268 1.800 63.020 39.145 16 650 5.937 6 202 5 15.358 $ 319 6.748 208 1.166 61.129.751 2.292 21.110 $ 1 17.070 $ 26.206 157 .292 $ 30.019 23.178.852 1.822 157.467 21.776 11.068 1.756 1.948 134.147 165 30.696 7 916 26 844 75 8.129.906 1.275 21.424 5.020 252 134.638 336 2.860 275 2.116 1.273 681 61.832 $ 471 16.778 $ 0 252 106.497 16.944 845 3.282 17.222.524 472.847 1.293 149 54.Rehabilitation Services $ 26.747 164 1.576 231 9.782 1.732 326.107 1 5.909 845 9.212 210.594 $ 206 4.720 918 49.518 208 938.324 56.166 61.937 584 78.798 $ 39.562 $ 4.206 $ $ $ $ $ $ $ 142 3.009 1.838 128.256 46.283 21.522 15.522 149 54.899 4.748 $ Totals 995.213 9 5 2 8.431 1.416 95 893 4.669 $ 2.070 $ Public School Fund 5.068 122.641 Revenue Administrative $ 13.748 37 $ 2.641 $ 3.383 469.242 24.648 2.

and Fees Fines.880 120.468 206.112 1.264 $ Other Medicaid Funds 282.208) 49.338 872.331 225.393 1.472 270.486 262.357 510.188 766 211.758 96.555 316.594 Economic and Community Affairs $ 0 1.705 (925) 45. October 1.050) 11.418 3. Forfeits. September 30.208 36.278 2.812 (17) 21.400 $ 36. 2010 (Amounts in Thousands) Public Health Department REVENUES Taxes Licenses. 2010 $ $ 3.920) (29.091 10.872 47.984 23.732 40.224 1.718) 605 20.654 $ 10.446 2.408 270.220 (38.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.287.Interest and Other Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Other Debt Issued Insurance Recovery Proceeds Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances. as Restated Increase (Decrease) in Inventory Fund Balances.630) 7.346 836.408 (168. and Court Settlements Investment Income Federal Grants and Reimbursements Other Revenues Total Revenues EXPENDITURES Current: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Debt Service . Permits.012 30.031 536 657 679.876 Education Department $ 3. 2009.839 30.265 44.714 30.950 36.472 47.515) 167.168 1.202 (39.835 192.753 429. AND CHANGES IN FUND BALANCE Nonmajor Special Revenue Funds For the Fiscal Year Ended September 30.768 15.281.186 158 .295. EXPENDITURES.718 30.933 347.922 32.208 0 0 $ 1 (38.340 $ 2.051) (38.981 11 342.702 678.926 319.621 120.Principal Retirement Debt Service .496 941 4 2 1.152) 204 7.240.356 (2.203 Revenues Allocated to Other Governments $ 706.323 (36.

127 (336.222 830.784) 48.104 533 195.259.136 813 (171.278 $ Conservation and Natural Resources 9.343) 2.807) (280.046 159.331 2.499 1.450 108.394 22 63.506 3.667 1.358 623.284.637 5.029 (12.746 (18) $ 1.732 26.952 173.938 89.081 8.495 1.266 10.369 $ Industrial Relations 5.887 177.780.273 422.149 2.787) 314.939 24 $ 1.249 195.351.478) 467.720 16.997) 5.107) (26) 17.668 99.400 68.182 108.297 1.232 26.718) 3.948 $ (12.055 1.460 567.658 924 5.313 21.984 103.867 62.399 268.136 1.375 $ 11.706 1.516 68.033 361.Rehabilitation Services $ 0 1.540 5.669 159 .143) 65.970 Revenue Administrative $ 118.874 10 (859) 27.858 2.025 1.916 79.958 48.908 1.991) (22.622 195.147 363.750 128.037 3.149 (5.889 119.397 7.363 4.029 184.700 346.285.723.037 62.315 $ Children First Trust 0 12 48.968 $ 16.593 304 (14.363 71.221 37 $ 14.822 187.173 251 46 98 69.111 760 18.853 (904) (4.309 17.322) 12.298 13 97.852 78.248 12.450 75.453 717.034 13.780 36.292 $ 538 538 (21.950 741.135 6.152 4.815 Totals $ 1.005.405 18.350 113.697) (129.240 9.258 $ Public School Fund 168.776 25.221.096.747) (5.703 5.091.645 572.116) 27.283 $ 7.871 609 1.122 105.580 67.764 26.107) (12.513 (25.906 237.554 (2.198 9.582 122.511 4 1 119.635 1.014.101 46.570 155.753 $ Other Special Revenue Funds 53.889 26.

031 599 119 2.337 391 2 2.654 9.100 $ 0 1. 2010 (Amounts in Thousands) Professional and Occupational Boards $ 43.454 630 37 6.014 328 158 251 28 318 3 2.532 1.921 200 3.567 8.088 420 53.411 208 36.625 59.025 63 1.062 $ 6.236 113.042 $ 41 1.624 72.877 $ 1.360 $ $ $ $ $ $ 0 143 886 5.625 122.664 871 15 19.260 23.366 205 1 15.197 890 1.321 53.952 7.672 5.310 53.624 26 108 29.411 8.470 318 23.567 53.781 $ 696 3.643 43.245 1 1.360 $ 630 4.262 72.138 47 2.310 13.814 208 1.390 Corrections ASSETS Cash and Cash Equivalents Investments Due from Other Funds Due from Component Units Investment Sales Receivable Accounts Receivable Due from Other Governments Taxes Receivable Interest and Dividends Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets TOTAL ASSETS LIABILITIES AND FUND BALANCES Warrants Payable Investment Purchases Payable Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Due to Other Governments Securities Lending Obligation Deferred Revenue Amounts Held in Custody for Others Compensated Absences Total Liabilities Fund Balances Reserved for: Encumbrances Inventory Restricted Assets Long-term Receivables Unreserved.302 6.390 160 .STATE OF ALABAMA COMBINING BALANCE SHEET Other Nonmajor Special Revenue Funds September 30.715 1.304 Emergency Management $ 7.988 859 11.198 Educational Television Foundation Authority $ 727 3.198 $ 263 20.997 21.542 1. Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ $ 61.634 74 1 227 1.062 Environmental Management $ 58.515 33.281 122.304 $ 806 32.

943 403.207 57 29.140 $ 0 0 $ 3.461 389.022 $ 0 0 $ 7.272 $ 400.571 354 139.705 150 137 1 6.518 37 $ 1.943 400.199 8.199 7.083 $ University Stabilization 0 0 Miscellaneous Special Revenue Funds $ 411.263 6 12.058 2.064 $ Totals 615.073 $ 0 675 407 1.Public Health Care Authority $ 6.776 11.523 $ 0 0 $ 294 562 213 4 1.522 15.544 23 455 11.824 681 18.522 149 54.798 6.899 4.950 $ 1.246 56.944 845 3.871 23.748 161 .942 4.228 377.850 $ 6.292 21.009 3.720 918 49.033 516.884 16.031 $ 8.393 149 263 363.935 3.114 10 213 8.628 457 55.499 6.383 469.906 1.222.518 208 938.830 9.850 6.019 23.275 21.993 $ 6.708 19.782 1.468 480 207.014.293 149 54.222.242 24.008 407 403.499 11.022 $ State Parks Improvement Corporation 0 0 $ Alabama Capital Improvement Trust 4.993 $ Forever Wild Trust 10.083 $ 0 0 $ 13.272 $ County and Municipal Capital Improvement 9.774 10.362 845 3.881 129 994 5.009 16.628 149 263 516.748 $ $ $ $ $ $ $ $ 0 143 143 $ 3.064 21.361 56.516 528 3 21 455 4.

000) (8.021) (3.493 (1.281 $ 10.Interest and Other Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Other Debt Issued Insurance Recovery Proceeds Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances.196 2.226 33. 2010 $ $ 0 5. as Restated Increase (Decrease) in Inventory Fund Balances.845 Educational Television Foundation Authority $ 0 186 9.167 314 168.774 1.049 25.092 91.953 222 21.Principal Retirement Debt Service .275) 6. Forfeits.296 22.567 22 28. September 30.463 43.012 9.262 $ 1. October 1.321) 6.554 17. and Court Settlements Investment Income Federal Grants and Reimbursements Other Revenues Total Revenues EXPENDITURES Current: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Debt Service .564 Emergency Management $ 0 53.716 48.245 62.965 168.945 186.945 Corrections REVENUES Taxes Licenses.430 126.007 8 158.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.505 (5.481 105.025 304 83.873 38.523 5.759 9.723 9.341 113.021 (4. Permits.905) 42.165 604 303 1.905) 5.171 9. and Fees Fines.012 86.475 65.531 409 1.750 86. 2009.004 30 49.574 101.089 21.218 12.940 11.847 Environmental Management $ 8.310 8.366 19.708 43.119 107.059 1.691 20. 2010 (Amounts in Thousands) Professional and Occupational Boards $ 0 33.302 162 .370 (4.723 18. EXPENDITURES.321 $ 7.260 $ (443) (443) (221) 5. AND CHANGES IN FUND BALANCE Other Nonmajor Special Revenue Funds For the Fiscal Year Ended September 30.

720 (10.444 66.950 163 .281 1.037 434 232.139 (6.276) 42.971 37.985 75.776 25.355 400.901) (35.945 Miscellaneous Special Revenue Funds $ 44.531 1.222 830.661) 182.098 (1.313 (58.472 208 208 91.588 334.645 572.033 422.924 163.870 57.136 813 (171.653 $ 6.855 6.509 $ Totals 53.531) 3.670) 3.356) 38.347) (12.476) (129.499 1.918 4.570 155.527) (3.964) (2.574 $ State Parks Improvement Corporation 0 4 4 $ Alabama Capital Improvement Trust 0 (182) 430 248 $ County and Municipal Capital Improvement 0 24.943 $ 0 0 0 $ 267.571) 19.313 21.871 609 1.556 (18) 377.460 567.350 113.608 (32.314 2.580 67.014.850 $ 10.221.148 62.460 1.232 26.998 14 3.352 $ University Stabilization 0 91.399 268.224) 24.221 99.538 38.499 $ (1.495 339.531 2.091.178 513.770 7.619 200 66 658.143) (3.918 38.049 26.538 2.867 62.815 4.660) (9.670 0 $ 49.645 270.199 $ 52.945 71.807) 3.668 99.912 26.046 159.622 (4.122 105.788 10.297 1.Public Health Care Authority $ 0 17 17 $ Forever Wild Trust 0 245 15 2.029 184.122 105.746 (18) $ 1.352 24.803) 8.144 0 (145.945 91.787) 314.478 76 (456) 3.945 91.088 111 433 (84.143) (1.

164 .

General Obligation Bonds Accounts for the accumulation of resources used to pay general obligation interest and principal on debt issued by the State for the purpose of financing a wide variety of construction projects. Corrections Institution Finance Authority Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Corrections Institution Finance Authority for the purpose of financing prison construction. Judicial Building Authority Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Authority for the purpose of financing the construction of facilities used by the unified judicial system. Public Health Care Authority Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Authority for the purpose of financing the construction of public health facilities.Nonmajor Debt Service Funds Nonmajor Debt Service Funds account for the accumulation of resources which are used for the payment of general governmental debt principal and interest. 165 . Federal Aid Highway Finance Authority Accounts for the accumulation of resources used to pay the interest and principal on debt issued by the Authority for the purpose of financing road and bridge construction.

Designated for Debt Service Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ $ $ 461 461 $ $ Public Health Care Authority 0 300 300 $ $ Judicial Building Authority 0 0 $ $ General Obligation Bonds 48 48 $ 0 0 $ 0 0 $ 0 0 $ 3 3 461 461 461 $ 300 300 300 $ 0 0 $ 45 45 48 166 .STATE OF ALABAMA COMBINING BALANCE SHEET Nonmajor Debt Service Funds September 30. 2010 (Amounts in Thousands) Corrections Institution Finance Authority ASSETS Cash and Cash Equivalents Investments TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Accounts Payable Total Liabilities Fund Balances Unreserved.

Federal Aid Highway Finance Authority $ $ 0 0 $ $ Totals 509 300 809 $ 0 0 $ 3 3 0 $ 0 $ 806 806 809 167 .

891 6.Principal Retirement Debt Service . as Restated Fund Balances. 2010 $ $ 0 2.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.531 (2. 2009.138 $ Public Health Care Authority 155 155 $ Judicial Building Authority 0 0 $ General Obligation Bonds 0 0 1.138 2.293 3.973 24.680 1.840 (74.973 0 0 $ 64.868 (324) 624 300 $ 3.685 453 2. AND CHANGES IN FUND BALANCE Nonmajor Debt Service Funds For the Fiscal Year Ended September 30. EXPENDITURES.973 3. September 30.485 35. 2010 (Amounts in Thousands) Corrections Institution Finance Authority REVENUES Investment Income Other Revenues Total Revenues EXPENDITURES Debt Service .338 112.192) (3.456 3.347 2.973) (60.415) (52.030 10.Interest and Other Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Refunding Bonds Issued Debt Issuance Premiums Transfers Out Payments to Refunded Bond Escrow Agent Current Refunding to Bondholders Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances.653 60.183 45 45 168 .138 0 (6.138) 0 0 461 461 $ 8.138 2. October 1.663) 5.610) 60.

496 (18.010 5.138 2.900 44.316 47.Federal Aid Highway Finance Authority $ 0 0 $ Totals 155 2.293 13.900 0 $ 0 $ 95.900) (89.085 806 169 .180 91.610) 88.900 18.890 18.030 10.742 112.203) 18.663) (74.415) (52.840 (2.924 (279) 1.

170 .

parks. Judicial Building Authority Capital Projects Accounts for proceeds of debt issued by the authority for the purpose of acquiring. prisons.Nonmajor Capital Projects Funds Nonmajor Capital Projects Funds account for the acquisition. General Obligation Bond Projects Accounts for the proceeds of general obligation debt issued by the State for a wide variety of construction projects involving waterways. mental hospitals. roads. and other buildings. Public Health Care Authority Capital Accounts for the proceeds of debt issued by the Authority for the purpose of financing the construction of public health facilities. and equipping judicial facilities. 171 . and improvement of major general governmental capital assets. State Parks Improvement Corporation Accounts for the proceeds of debt issued by the State for the purpose of financing renovations to the State Parks System. construction. Other Capital Project Funds Accounts for the proceeds of all other debt issued by the State to fund capital projects. research labs. constructing.

914 $ Judicial Building Authority 6.842 70 2 15.637 6.197 133.637 6.491 1.STATE OF ALABAMA COMBINING BALANCE SHEET Nonmajor Capital Projects Funds September 30.197 132.643 172 . 2010 (Amounts in Thousands) General Obligation Bond Projects ASSETS Cash and Cash Equivalents Investments Interest and Dividends Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Warrants Payable Accounts Payable Due to Other Governments Securities Lending Obligation Total Liabilities Fund Balances Reserved for: Unreserved.643 6. Designated for Capital Projects Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ $ 133.423 15.914 $ 6.046 State Parks Improvement Corporation $ 0 0 $ Public Health Care Authority 15.643 $ $ $ $ $ 0 837 12 849 $ 0 0 $ 0 1.046 133.423 14.491 $ 6 6 132.046 $ 0 0 $ 14.

Other Capital Project Funds $ 61 3 64 $ Totals 155.328 12 3 2.592 70 2 3 155.349 61 61 $ 64 $ 153.318 153.667 173 .318 155.667 $ $ $ 0 3 3 $ 6 2.

143) (2.652) 16. 2010 (Amounts in Thousands) General Obligation Bond Projects REVENUES Investment Income Other Revenues Total Revenues EXPENDITURES Capital Outlay Debt Service . 2010 $ $ 212 282 494 State Parks Improvement Corporation $ 18 18 $ Public Health Care Authority 0 0 $ Judicial Building Authority 17 17 33. as Restated Fund Balances. September 30.168) 110.018 3.637 2.197 $ (10.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.000) (3.906 (8) 119.552) 12.423 $ 0 (3.185 (34.442 132.000 9. AND CHANGES IN FUND BALANCE Nonmajor Capital Projects Funds For the Fiscal Year Ended September 30. EXPENDITURES. October 1.168) 9.819 (1.552) (10.Interest and Other Charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Bonds Issued Debt Issuance Premiums Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances.471 3.821 816 34.637 174 .185 3.471) (3.552 0 $ 1. 2009.075 14.018 2.805 6.471 3.898 85.755 46.819 1.552) (12.

560) 111.Other Capital Project Funds $ 0 0 $ Totals 247 282 529 30 30 42.819 110.341 (30) (42.318 175 .812) 0 (30) 91 $ 61 $ 1.525 816 43.906 (10.353 84.965 153.165 68.000 9.

176 .

protect. not principal. and social programs. Marine. may be used for purposes that support the State's governmental programs. and develop wildlife within the State.Nonmajor Permanent Funds Nonmajor Permanent Funds report resources that are legally restricted so that only earnings. Alabama Research Institute Is a trust fund which awards research grants to State universities to promote science and technology. Game and Fish Endowment Invests the proceeds of lifetime hunting and fishing licenses and uses the investment income to preserve. Senior Services Trust Invests a portion of the proceeds from the tobacco settlement in order to accumulate money to expand programs benefiting elderly citizens. propagate. 177 . Other Permanent Funds Accounts for several small permanent funds which further educational. health.

STATE OF ALABAMA COMBINING BALANCE SHEET Nonmajor Permanent Funds September 30.679 $ Alabama Research Institute 44 15.840 $ Senior Services Trust 0 22.808 15.694 161 192 61 8. Game. and Fish Endowment ASSETS Cash and Cash Equivalents Investments Accounts Receivable Interest and Dividends Receivable Mortgages.694 $ Other Permanent Funds 12.312 26.694 $ 13.232 18.500 4.840 $ 2.177 $ 45.340 19. Undesignated Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES $ $ 82 18.111 56.790 4 2 15. Notes.756 3. and Loans Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities Due to Other Funds Accounts Payable Due to Other Governments Securities Lending Obligation Total Liabilities Fund Balances Reserved for: Permanent Trust Principal Unreserved.051 94 13.381 26.679 $ 11. 2010 (Amounts in Thousands) Marine.893 18.390 178 .177 $ Totals 13.382 $ 0 32 32 $ 6 52 3 8.972 22.171 8.985 99 61 32 13.374 70.680 161 3.893 22.145 13.158 78.171 78.784 24.390 $ $ $ $ $ $ 0 30 3.786 $ 6 21 3 2 32 $ 0 1 4.756 22.381 4.308 15.125 188 4.

243 $ Other Permanent Funds 409 13 4 426 $ Totals 1.113 12. EXPENDITURES.509 18.671 1. and Fees Investment Income Other Revenues Total Revenues EXPENDITURES Current: Education and Cultural Resources Social Services Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances.651 17.356 0 757 757 14 14 0 757 14 771 1.658 (696) 962 6.651 279 3.787 1.547 63. September 30. Permits. and Fish Endowment REVENUES Licenses.312 $ 687 687 1.534 15.032 13.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.585 0 1. 2010 $ $ 816 835 1.611 70.456 3.158 179 .460 6.229 426 5.803 22. Game. October 1.036 $ Senior Services Trust 0 1.036 1. AND CHANGES IN FUND BALANCE Nonmajor Permanent Funds For the Fiscal Year Ended September 30.808 $ 971 (691) 280 3. as Restated Fund Balances.225 3.651 $ Alabama Research Institute 0 1.893 $ (5) (5) 274 15.145 $ 1. 2010 (Amounts in Thousands) Marine. 2009.242 18.

180 .

181 .Governmental Funds Supplementary Information Governmental Funds Supplementary Information includes non-GAAP basis schedules demonstrating compliance with the legally adopted budget and summaries of governmental fund revenues in the State Treasury.

176 13.166 510 137.335 95 8 296 70 235 704 General Fund Actual Variance 3.095 16.Other Educational Activities Support of State Universities TOTAL Commission on Higher Education Corrections Administration Service and Logistical Support Correctional Industries Institutional Service Corrections TOTAL Corrections Economic and Community Affairs Administrative Support Service Energy Management Law Enforcement Planning and Development Planning Skills Enhancement/Employment Opportunities Surplus Property Water Resources TOTAL Economic and Community Affairs 5.244 6 1.165 16.568 4.135 1.986 264.545 89 502 110 2.841 292 590 649 9.662 560 9.852 3. Non-GAAP.039 5.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.Operations Legal Advice and Legal Service: Consumer Utility Fund TOTAL Attorney General Auditor Fiscal Management TOTAL Auditor Commission on Higher Education Alabama Teacher Recruitment Incentive Planning and Coordination Services Student Financial Aid Support .165 3.856 868 450 3.335 273 4. Budget Basis For the Fiscal Year Ended September 30.605 233 10.554 269.563 14.201 203 88 539 6.264 775 775 704 704 71 71 - - - 13.696 15.261 518 137.883 662 73 3.656 182 .357 6.613 3.278 162.614 125 54 239 133 551 574 10.849 239 11.973 206 377 399 4.286 3.398 14 1.496 16.097 11.260 1.582 3. 2010 (Amounts in Thousands) Budget EXPENDITURES: Administrative Office of Courts Administrative Services Alabama Sentencing Commission Court Operations Drug Court Juvenile Probation Officer Services TOTAL Administrative Office of Courts Agriculture and Industries Administrative Services Agricultural Development Services Agricultural Inspection Services Lab Analysis and Disease Control TOTAL Agriculture and Industries Attorney General Fair Marketing Practices: Consumer Protection Legal Advice and Legal Service: Attorney General .513 163.349 250.303 6.622 255.

785 10.953 8.433 4.467 5.627 1.288 4.287 3.444 583 583 574 19.444 8.856 57.330 5.616 - - - 10.110 149.635 75 4.401 274 9.770 409.880 5.856 18.385 36.564 4.182 686 889 3.909 64.019 67.561 3.985 6.267 5.769 356.085 518 339 138 2.441 Continued on next page.889 3.017 19.891 - - - 6.616 49.650 12.546 697 3.672 345.456 6.024 3.038 1.816 25.110 400.444 16.182 30.557 5.599 1.228 18.923 158. 183 .007 - - - 9.768 95 8 4.381 2.233 9.542 16.261 518 160.519 23.433 3.213 297..466 33.592 2.444 20.165 21.193 16.166 510 155.177 8.778 296 2.842 14 1.655 223.695 5.194 230.830 22.841 6.780 5.903 18.612 1.934 2.063 9.544 70 1.914 388 348 75 811 1.985 9.782 6.484 66.692 515.448 628 47.547 5.273 2.851 5.Education Trust Fund Budget Actual Variance Budget Earmarked Funds Actual Variance Budget Total Actual Variance - - - 22.775 19.108 184.564 288.568 561 835 3.200 9.080 3.095 20.632 9.340 320 3.434 10.503 296 2.196 499.443 39.844 5.059 18.859 3.377 28.473 37.444 18.993 717 48.689 560 18.749 436.049 233 18.847 - - - 100 100 100 100 - 875 875 804 804 71 71 1.890 191.698 1.603 3.431 455.255 19.499 50.877 185.216 844 5.189 6.381 2.114 13.000 56.747 24..876 239 20.027 9.724 2.827 6 1.524 153.248 1.660 8.660 4.898 12.046 1.770 153.015 1.173 2.085 518 727 486 75 2.499 - - - 3.194 25.763 172.725 2.384 1.066 1 9.795 5.467 8.776 66.682 18.357 7.680 29.027 8.455 977 6.655 67.366 16.384 7.065 66.

009 11.368 5.009 12. Non-GAAP.084 12.433 379 234 956 4.888 11.888 121 121 903 427 1.Audit Service TOTAL Examiners of Public Accounts Finance Administrative Support Service Administrative Support Service: Director's Office Executive Planning: Executive Planning Fiscal Management Fiscal Management: Budget Office Fiscal Management: Comptroller's Office Fiscal Management: Purchasing General Services General Services: Alabama Building Renovation Finance Authority General Services: Capital Complex Maintenance and Repair General Services: Capitol General Services: Space Management Information Services Legal Management Legal Management: Legal Division Risk Management SMART Business Systems TOTAL Finance Governor Criminal Investigation: Law Enforcement Fund Executive Direction: Governor's Contingency Fund Executive Direction: Governor's Mansion Executive Direction: Governor's Office Executive Direction: Governor's Proclamation Expense Executive Direction: National Governors' Conference TOTAL Governor - For the Fiscal Year Ended September 30.084 2.631 2.635 887 115 8. 2010 General Fund Actual Variance - 7.715 7.103 184 .715 5.446 70 316 348 3.243 6 316 348 3.706 607 196 5.202 77 191 4.140 1.993 1.370 12 3.140 64 504 530 5 1.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Education Administrative Services Alabama Science in Motion At-Risk Student Program Board of Adjustment Disability Determination for Social Security Endowment Interest Program-PSF Financial Assistance Foundation Program Information Technology Services School Nurses Program Transportation Program TOTAL Education Emergency Management Agency Readiness and Recovery TOTAL Emergency Management Agency Examiners of Public Accounts Legislative Support .631 5.781 1.987 524 193 412 359 358 218 1.105 1.370 127 12.

097 22.581 8.982.710 2.079 174.837 1.482 3.567 369.170 174.049 45.370 31.455 166.103 Continued on next page.462 3.706 607 196 5.624 30.163 6.191 642 47.573 456 12 2.763 Variance 62.443 533 1.407 31.009.452 Variance 6.609 401 99 86 11.478 1.456 1.120 7.917 3.505 20.191 642 36.573 271.781 1.120 13.376 79.600 13.Education Trust Fund Budget 161.482 5.573 271.768 8.313 1.293 152.581 127 8.461.993 13.772 2.351.442 1.717 3.624 30.138 524 193 3.275 Budget 253.886 1.202 77 191 4.519.613 9.006.482 4.821 4.370 76.491.720 22.191 642 37.754 1.586 - - - 166.451 Total Actual 190.138 3.413 Budget Earmarked Funds Actual 35.573 271.304 526 3.837 3.294 448.509.007 81.443 533 1.039 - - - 3.120 13.407 218 1.299 9.105 1.042.124 9.875 - - - 26 26 26 26 - 70 342 348 3. 185 .942 2.191 642 85.624 30.293 139.747 401 99 3.768 8.356 983 83.434 2.737 533 1.293 1.060 555.982.688 91.742 6.514 412 359 358 2.573 271.821 4.963.079 79.645 623 38.609 780 333 86 956 4.310 59.140 1.454.163 81.220 374.741 1 1 5.049 887 45.124 9..311 Variance 56.886 1.938 623 38.720 85.377 2.088 3.522 3.376 87.742 6.747 1.125 5.920 2.865 Actual 155.466 4.497 2..600 1.482 3.502.754 5.125 115 5.356.768 22.741 6.944 3.653 5.624 30.613 9.635 11.299 9.491 1.514 2.356 983 92.505 24.917 24.039 4.297 2.573 456 2.097 47.475 22.429 3.166 64 504 530 5 1.310 56.773 5.060 548.171 7.353 2.737 533 1.368 5.269 6 342 348 3.170 93.466 20.294 447.455 87.442 1.374 1.007 93.088 3.171 7.313 1.456 76.

593 - - - 186 .457 1.231 84.524 25.329 22.837 90.982 1.072 101 124 225 5 29.504 21.516 47.778 9.291 2.847 18.726 1.858 5 6.714 315.385 23.714 349.041 31 2.982 213 19.Other Health Insurance Medical Assistance Through Medicaid: Mental Health.858 22. Non-GAAP.466 6.Facilities Medical Assistance Through Medicaid: Mental Health. 2010 General Fund Actual Variance - 2.Waivers Medical Assistance Through Medicaid: Nursing Home Care Medical Assistance Through Medicaid: Pharmaceutical Medical Assistance Through Medicaid: Physician Care Medical Assistance Through Medicaid: Premiums TOTAL Medicaid Agency Mental Health Administrative Services Institutional Treatment and Care of Intellectually Disabled Institutional Treatment and Care of Mentally Ill Special Services Substance Abuse Program TOTAL Mental Health - For the Fiscal Year Ended September 30. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Human Resources Human Services TOTAL Human Resources Industrial Relations Administrative Services Employment Security Industrial Safety and Accident Prevention Regulation Workers Compensation Small Business Program TOTAL Industrial Relations Legislature Commission to Reduce Poverty Legislative Operations and Support TOTAL Legislature Medicaid Agency Medical Assistance Through Medicaid: Administrative Cost Medical Assistance Through Medicaid: Alternative Care Medical Assistance Through Medicaid: Family Planning Medical Assistance Through Medicaid: Health Support Medical Assistance Through Medicaid: Hospital Care Medical Assistance Through Medicaid: Mental Health.481 86.000 3.235 10.200 2.324 29.111 88.142 155 2.471 37.516 50.185 21.000 34.250 2.000 1.254 18.669 2.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.193 27.297 2.

979 374.704 5.471 - - - 178.689 31.728 523.169 18.316 26.329 22.106 54.417 80.302 251.961.864 155 113.427 9.603 63.233 34.961.466 6.633 357.548 85.212.652 1.814 16.762 53.852 35.738 862.403 74.629 418.212.870 48.575 451.149 Continued on next page.162 4.203 271.610 924.133 4.753 1.203 4.146 325.290 346.489 19.118 438.605 2.820 4.617 405.426 1.449 347.821 2.314 244.Education Trust Fund Budget Actual Variance Budget Earmarked Funds Actual 1.209 36.059 1.205 4.864 111.607 3.495 425.738 871.209 36.427 7.389 17.046 59.806 393.471 5.426 Variance 250.084 399.420 323.040 2.564 15.260 7.637.417 80.859 123.003 859.872 63.254.901 7.426 Variance 250.118 438.840.504 3.500 124.875 362.689 28.948 928.164.954.244 71.324 29.281 59.969 41.368 2.948 1.247 - - - 17.814 16.858 5 6.751 241.644 5.205 275.270 24.984 47.818 247.641 1.798 229.969 41.930 5.157 383.821 Budget 2. 187 .270.614 - - - - - - 5 29.821 250.426 1.040 2.872 62.084 399.961.786 - - - 23.820 6.564 15.449 347.193 215.821 250.202 56.173 716.316 124 26.901 7.870 48.859 123.929.986.189 20.961.641 1.153 72.956 5.184 58.548 31 87.244 71.806 535.892 161.945 69.757 4.810 433..629 418.173 682.499 266.489 19.149 23.819 12.945 69.045 142.948 928.212.247 Total Actual 1.247 2.205 2.814 5.011 34.610 935.744 53.538 221.500 124.440 4.607 3.605 2.209 610.247 2.212.003 859.169 18.875 362.205 275.813 24.440 3.653 49.603 63.189 20.551 10.522 12..858 22.

372 46.034 5.065 5.959 4.310 324 71.292 4.414 9. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Postsecondary Education Adult Education Adult Education: Adult Basic Education Firefighters-Fire College: Firefighters/Fire College Industrial Training: AIDT/Development Program Industrial Training: AIDT/Training Program Industrial Training: AIDT/Workforce Development Postsecondary Administration Postsecondary Administration: Postsecondary/Chancellor's Postsecondary-Prison Education: Prison Education-Operations and Maintenance Postsecondary-Special Line Items: Mine Safety Postsecondary-Special Line Items: Special Populations Training Postsecondary-Technical Colleges Postsecondary-Technical Colleges: Truck Driver Training-CACC Postsecondary-Two Year Colleges Postsecondary-Two Year Colleges: Alabama Technology Network Postsecondary-Two Year Colleges: Marion Military Institute Postsecondary-Two Year Colleges: Two Year Colleges/Operations and Maintenance Postsecondary-Two Year Colleges: Workforce Development Support of State Universities: Athens State .042 36.099 - - - 28 28 27 27 1 1 92 92 72 72 20 20 188 .106 866 324 7.593 60.561 45.444 64.Operations and Maintenance Support of State Universities: Fiscal Stabilization Fund TOTAL Postsecondary Education Public Health Administrative Services Children's Health Insurance Emergency Medical Service Education Family Practice Rural Health Public Health Services TOTAL Public Health Public Safety Administrative Services Police Services Public Safety Support Services Readiness and Recovery TOTAL Public Safety Public Service Commission Regulatory Services TOTAL Public Service Commission Rehabilitation Services Direct Client Services-Handicap TOTAL Rehabilitation Services Revenue State Revenue Administration TOTAL Revenue - For the Fiscal Year Ended September 30.380 223 811 1.819 35.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.193 803 5. 2010 General Fund Actual Variance - 10.790 54. Non-GAAP.

150 1.711 58 2.501 33.053 5.087 8.182 729 288 538 5.058 141.926 270.193 31.222 26.607 - - - 43.716 16.295 24.455 957 1.058 26.901 887 419.326 36.420 Variance 3.122 5.560 134.808 10.207 125.603 5.603 5.521 134.532 107.758 8.737 203.239 6.896 20.019 6.500 25.901 965 441.159 4.122 16.148 23.290 23.503 Variance 2.926 286.002 3.685 51.052 8.482 1.280 167. 189 .883 3.002 3.482 1.816 15.816 8.239 5.444 9.122 16.389 887 55.069 324 39.618 40.901 369.227 10.924 Actual 11.203 32.150 540.280 141.221 240 4.482 1..862 2.871 79.192 78 15.613 2.560 140.962 250 19.923 Variance 2.443 1.024 8.210 837.213 80.221 240 5.279 460.379 Total Actual 9.430 33.755 5.222 - - - 140.148 23.239 5.219 167.468 134.187 5.530 169.219 26.545 3.148 23.306 169.279 1.057 11.829 957 1.726 324 184.187 5.Education Trust Fund Budget 15.047 22.321 6.883 4.174 10.499 33.443 1.221 240 5.736 203.521 6.207 33.003 711.829 15.146 250 4.047 16.225 18.925 22.245 78 21.862 11.613 1.039 6.047 22.983 86.736 5.561 588.009 774.416 113.561 11.901 364.751 107.532 11.594 - - - 22.321 5.532 26.925 5.039 Continued on next page.278 111.187 5.449 134.529 35 1.187 5.435 11.159 17.383 124.926 288.019 140.626 650.500 250 25.047 16.755 5.501 33.529 5.482 1.711 5.603 5.449 6.926 270.952 Budget 12.871 99 80.492 19.384 17.456 12.504 Budget Earmarked Funds Actual 9.122 5.462 11.925 33.800 5.495 49.499 2 2 133.425 13.182 23 538 5.716 4.462 508.745 6.745 15.468 140.925 5.457 706 288 1.962 19.221 240 4.858 250 4.858 1.581 965 71.906 6.751 133..755 5.603 5.755 5.563 10.123 4.657 145.831 7.457 4.239 2.146 2.148 23.461 42.139 31.545 3.717 99 13 112 31.

Industries for the Blind Total Alabama Institute for the Deaf and Blind Alabama State University Support of State Universities: Alabama State University-Operations and Maintenance Support of State Universities: Fiscal Stabilization Fund Total Alabama State University 326 825 180 1.441 2.176 For the Fiscal Year Ended September 30.080 9.507 8 2. 2010 General Fund Actual 292 807 176 1.007 434 434 9. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Secretary of State Administrative Support Service Administrative Support Service: Administration of HAVA Administrative Support Service: Dist Public Documents Administrative Support Service: Printing of Acts/Journals Administrative Support Service: Printing of Codes Administrative Support Service: Secretary of State Special Services: Training Elected Officials TOTAL Secretary of State Transportation Aviation Stimulus General Administration General Aviation and Aeronautic Roads and Transit Stimulus Surface Transportation Improvements TOTAL Transportation Treasurer Fiscal Management TOTAL Treasurer Youth Services Community Educational Programs Financial Assistance Youth Services Youth Services Camp Programs TOTAL Youth Services Colleges and Universities Alabama Agricultural and Mechanical University Support of State Universities: Agriculture Research Station Fixed Costs Support of State Universities: Alabama A&M-Agriculture Research Extension State Match Support of State Universities: Alabama A&M-Miles College Support of State Universities: Alabama A&M-Operations and Maintenance Support of State Universities: Fiscal Stabilization Fund Support of State Universities: Urban Affairs and Non-Traditional Program Total Alabama Agricultural and Mechanical University Alabama Institute for the Deaf and Blind Alabama Institute for the Deaf and Blind.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.007 2.580 262 238 500 190 . Non-GAAP.Adult Programs Alabama Institute for the Deaf and Blind.847 4.Children and Youth Programs Alabama Institute for the Deaf and Blind.233 14.585 3.788 57 3.441 2.790 Variance 34 18 4 281 49 386 - - - 2.995 13.

830 757.291 6.724 8.462 264 1.819 841.327 34 18 4 516 49 17.244 9.673.611 7.543 1.419 42.611 7.177 39.260 3.413 3.673.004 164.100 4.177 39.361.543 4.178 39.400 326 825 180 2.182 Variance 2.558 36.260 3.741 2.850 2.091 88.360 3.982 48.360 3.399 57 23.109 6.094 28.379 4.014 Total Actual 1.116 31.604 9.152 1.327 235 16.995 4.338 1.338 1.669 5.147 25.850 3.178 3.656 Budget 3.147 25.200 362 30.244 9.508 286.863 407 25.003 11.Education Trust Fund Budget Actual Variance Budget Earmarked Funds Actual 1.611 7.413 3.769 29.980 - - - 3.178 264 1.003 11.261 1.361.113 19.772.860 3.260 3.113 19.116 31.827 15.066 4.147 25.772.204 15 1.044.043 4.860 3.176 46.004 164.689 17.419 42.042 3.733 1.473 3.177 39..400 611 19.109 1.995 99.883 8 5.360 3.733 1.360 3.178 3.828 118.233 106.438 - Continued on next page.498 60.604 9.830 757.176 46.979 931. 191 .748 1.390 25.200 362 30.508 286.035.838 - - - 23.260 - 264 1.522 238 6.178 - 3.389 83.379 62.152 1.073 376 3.558 36.581 702 5.260 42.827 15.997 50.044.979 931.558 39.360 3.177 39.094 14.200 362 30.260 42.798 1..669 5.261 1.881 1.200 362 30.896 1.980 23.291 4.819 841.741 1.748 4.438 264 1.178 39.828 118.419 42.147 25.035.860 3.797 687 3.798 1.073 292 807 176 1.972 Variance 2.860 3.724 6.360 3.094 14.419 42.611 7.689 17.724 7.724 6.558 39.

Tuscaloosa Support of State Universities: Fiscal Stabilization Fund Support of State Universities: University of Alabama-Tuscaloosa-Operations and Maintenance Total University of Alabama .Huntsville Support of State Universities: Fiscal Stabilization Fund Support of State Universities: University of Alabama Huntsville-Operations and Maintenance Total University of Alabama . Non-GAAP.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.Tuscaloosa University of Montevallo Support of State Universities: Fiscal Stabilization Fund Support of State Universities: University of Montevallo-Operations and Maintenance Total University of Montevallo University of North Alabama Support of State Universities: Fiscal Stabilization Fund Support of State Universities: University of North Alabama-Operations and Maintenance Total University of North Alabama University of South Alabama Support of State Universities: Fiscal Stabilization Fund Support of State Universities: University of South Alabama-Operations and Maintenance Total University of South Alabama University of West Alabama Support of State Universities: Fiscal Stabilization Fund Support of State Universities: University of West Alabama-Operations and Maintenance Total University of West Alabama TOTAL Colleges and Universities - For the Fiscal Year Ended September 30.Birmingham University of Alabama . 2010 General Fund Actual Variance - 192 .Huntsville University of Alabama .Birmingham Support of State Universities Support of State Universities: Chauncey Sparks Center/University of Alabama Birmingham Support of State Universities: Fiscal Stabilization Fund Support of State Universities: UAB Cancer Center Support of State Universities: University of Alabama-Birmingham-Operations and Maintenance Total University of Alabama . Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Auburn University Support of State Universities: Auburn University System-Operations and Maintenance Support of State Universities: Auburn University-AUM Operations and Maintenance Support of State Universities: Auburn/Agriculture Experiment Station Support of State Universities: Auburn/Cooperative Extension Service Support of State Universities: Fiscal Stabilization Fund Total Auburn University Jacksonville State University Support of State Universities: Alabama Film Initiative Program Support of State Universities: Fiscal Stabilization Fund Support of State Universities: Jacksonville State University-Operations and Maintenance Total Jacksonville State University Troy State University Support of State Universities: Fiscal Stabilization Fund Support of State Universities: Troy State University System-Operations and Maintenance Total Troy State University University of Alabama .

701 22.599 44.184 43.699 14..769 1.088 248.256 108 108 180 180 779 779 145 145 8.562 256.972 453 35.615 17.884 261.737 1.850 1.924 Variance 2.776 10.939 54 2.214 24.575 39.629 1.945 22.507 2.108 22.599 44.860 107.028 44.372 4.073 138.221 22.086 43.408 17.990 9.152 Continued on next page.088 248.541 153.941 1.946 Variance 2.344 3.320 31.204 1.966 4. 193 .408 17.769 97.059 1.541 17.562 26.928 14.737 12.Education Trust Fund Budget 152.408 18.860 12.699 1.023.073 46.978 Variance Budget Earmarked Funds Actual 25.562 278.001 14.214 2.562 26.256 1.088 248.615 1.691 2.408 19.076 Total Actual 152.972 453 35.615 2.436 4.912 4.990 97.034 24.204 100.108 235.221 4.939 54 2.737 13.086 43.575 36.034 9.884 3.691 2.928 2.562 281.711 54 3.320 31.023.575 39.939 2.917 453 3.436 24.745 1.112 48.372 4.562 24.052 4.108 235.701 22.978 Actual 152.307 2.599 4.912 24.098 22.796 1.112 3.088 248.599 22.945 258.737 1.939 2.152 Budget 152.214 10.344 3.711 3.320 31.599 54 24.860 97.184 14.073 138.073 43.699 138.860 12.541 153.843 29.408 24.436 22.575 36.507 17.059 12..737 13.701 22.915 2.596 9.843 29.562 97.843 29.112 44.562 256.843 29.108 25.562 24.257 14.112 44.745 1.507 1.860 108.945 3.541 138.884 25.699 138.221 2.073 43.344 4.599 4.408 24.990 1.028 44.034 2.320 31.344 35.928 43.256 108 108 180 180 779 779 145 145 8.562 97.023 2.860 97.240 1.737 12.344 4.344 35.436 4.059 91.073 47.541 17.541 138.124.112 3.701 22.699 14.699 1.184 4.204 12.769 10.256 1.112 48.240 1.115.856 453 3.

Regulation and Enforcement Total Alabama Boxing Commission Alabama Construction Recruitment Recruitment/Training Promotion Total Alabama Construction Recruitment Alabama Law Institute Support .Other Educational Activities Total Alabama Law Institute Alabama Onsite Wastewater Board Professional and Occupational Licensure and Regulation Total Alabama Onsite Wastewater Board Alabama Security Regulatory Board Licensing.009 40 40 3 27 146 176 15 15 1 1 46 46 - For the Fiscal Year Ended September 30. Regulation and Enforcement Total Alabama Security Regulatory Board Alabama Trust Fund Alabama Natural Heritage Fiscal Management Total Alabama Trust Fund Alcoholic Beverage Control Board Administrative Services Alcoholic Beverage Management Licensing.055 87 87 99 210 441 750 867 867 18 18 2.055 2. 2010 General Fund Actual Variance 194 . Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Other Accountancy Board Professional and Occupational Licensure and Regulation Total Accountancy Board Agricultural Museum Board Agricultural Promotional Program Total Agricultural Museum Board Agriculture Center Board Agricultural Development Services: Fairs and Livestock Shows Agricultural Development Services: Livestock Coliseum Agricultural Development Services: Operations Total Agriculture Center Board Alabama Board of Court Reporting Professional and Occupational Licensure and Regulation Total Alabama Board of Court Reporting Alabama Boxing Commission Licensing. Non-GAAP.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations. Regulation and Enforcement Total Alcoholic Beverage Control Board Architects Registration Board Professional and Occupational Licensure and Regulation Total Architects Registration Board Archives and History Historical Resources Management Total Archives and History Assisted Living Examiners Board Professional and Occupational Licensure and Regulation Total Assisted Living Examiners Board 127 127 102 237 587 926 882 882 19 19 2.009 2.

432 20 20 139 139 50 50 438 1 439 2.738 86 86 1.797 54.750 1.150 1.738 6.585 482 482 6.082 72 72 318 318 1..973 398 398 5.266 3.432 1.475 1.475 127 127 102 762 587 1.797 54.109 1.Education Trust Fund Budget Actual Variance Budget Earmarked Funds Actual Variance Budget Total Actual Variance 227 227 3.432 139 139 50 50 438 438 2.451 105 105 150 150 1.432 1.515 3.947 67.947 67.813 17.612 84 84 1.266 3.159 332 332 72 72 318 318 311 311 452 452 5.089 1.266 - 222 222 3.104 27 27 1.475 1.975 80.159 1.069 7.588 59 59 316 316 40 40 3 220 146 369 33 33 150 150 1.975 80..266 - 5 5 - 1.588 5.159 87 87 99 542 441 1.109 450 450 50 50 890 19 909 7.728 47. 195 .028 12.417 86 86 1.973 398 398 313 313 59 59 316 316 193 193 33 33 150 150 1.728 47.150 27 27 Continued on next page.298 14.417 1.612 84 84 1.028 12.813 17.750 450 450 50 50 890 890 7.298 14.515 3.089 311 311 452 18 470 5.159 1.104 1.585 482 482 1.750 1.750 1.475 525 525 105 105 150 150 1.069 7.

STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page) (Amounts in Thousands)
Budget Athlete Agent Regulatory Commission Professional and Occupational Licensure and Regulation Total Athlete Agent Regulatory Commission Athletic Trainers Board Professional and Occupational Licensure and Regulation Total Athletic Trainers Board Auctioneers Board Professional and Occupational Licensure and Regulation Total Auctioneers Board Banking Charter Licensure and Regulation Financial Total Banking Board of Adjustment Special Services: Damage Claims-Board of Adjustment Special Services: Death Claims-Board of Adjustment Total Board of Adjustment Board of Prosthetists and Orthotists Professional and Occupational Licensure and Regulation Total Board of Prosthetists and Orthotists Board of Respiratory Therapy Professional and Occupational Licensure and Regulation Total Board of Respiratory Therapy Building Commission Professional and Occupational Licensure and Regulation Special Services Total Building Commission Child Abuse Prevention Social Services Total Child Abuse Prevention Children Services Facilitation Human Services Total Children Services Facilitation Children's Affairs Children's Policy Council Social Services Total Children's Affairs Chiropractic Examiners Board Professional and Occupational Licensure and Regulation Total Chiropractic Examiners Board Choctawhatchee, Pea and Yellow Rivers Watershed Management Authority Water Resource Development Total Choctawhatchee, Pea and Yellow Rivers Watershed Management Authority Clerk of the House Legislative Operations and Support Total Clerk of the House Commission on Uniform State Laws Special Services Total Commission on Uniform State Laws 12 1,037 1,049 267 267 391 391 382 382 1,853 1,853 68 68

For the Fiscal Year Ended September 30, 2010
General Fund
Actual 9 1,014 1,023 244 244 377 377 330 330 765 765 19 19 Variance 3 23 26 23 23 14 14 52 52 1,088 1,088 49 49

196

Education Trust Fund
Budget 18,188 18,188 Actual 17,301 17,301 Variance 887 887 Budget

Earmarked Funds
Actual 9 9 48 48 166 166 12,950 12,950 125 125 121 121 112 1,411 1,523 8,280 8,280 2,590 2,590 303 174 477 322 322 146 146 Variance 42 42 3 3 29 29 3,298 3,298 15 15 6 6 16 338 354 692 692 245 245 656 16 672 214 214 40 40 Budget 51 51 51 51 195 195 16,248 16,248 12 1,037 1,049 140 140 127 127 128 2,016 2,144 8,972 8,972 2,835 2,835 959 18,769 19,728 536 536 568 568 1,853 1,853 68 68

Total
Actual 9 9 48 48 166 166 12,950 12,950 9 1,014 1,023 125 125 121 121 112 1,655 1,767 8,280 8,280 2,590 2,590 303 17,852 18,155 322 322 476 476 765 765 19 19 Variance 42 42 3 3 29 29 3,298 3,298 3 23 26 15 15 6 6 16 361 377 692 692 245 245 656 917 1,573 214 214 92 92 1,088 1,088 49 49

51 51 51 51 195 195 16,248 16,248 140 140 127 127 128 1,749 1,877 8,972 8,972 2,835 2,835 959 190 1,149 536 536 186 186 -

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197

STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page) (Amounts in Thousands)
Budget Conservation and Natural Resources Administrative Services Game and Fish Marine Police Marine Resources Outdoor Recreation Sites and Services State Land Management Total Conservation and Natural Resources Cosmetology Board Professional and Occupational Licensure and Regulation Total Cosmetology Board Council on the Arts Fine Arts Total Council on the Arts Counseling Examiners Board Professional and Occupational Licensure and Regulation Total Counseling Examiners Board Court of Civil Appeals Court Operations Total Court of Civil Appeals Court of Criminal Appeals Court Operations Total Court of Criminal Appeals Credit Union Administration Charter Licensure and Regulation Financial Total Credit Union Administration Crime Victims Compensation Commission Special Services Total Crime Victims Compensation Commission Criminal Justice Information Center Criminal Justice Infomation Services Total Criminal Justice Information Center 3,847 3,847 4,599 4,599 2,002 2,002

For the Fiscal Year Ended September 30, 2010
General Fund
Actual 3,536 3,536 4,046 4,046 1,958 1,958 Variance 311 311 553 553 44 44

198

Education Trust Fund
Budget 4,546 4,546 Actual 4,528 4,528 Variance 18 18 Budget

Earmarked Funds
Actual 9,520 33,678 8,661 14,742 6,713 14,150 87,464 2,116 2,116 1,136 1,136 315 315 1,142 1,142 2,822 2,822 7,544 7,544 Variance 3,979 3,920 3,017 4,053 345 25,973 41,287 549 549 95 95 555 555 1,803 1,803 7,807 7,807 Budget 13,499 37,598 11,678 18,795 7,058 40,123 128,751 2,665 2,665 5,682 5,682 410 410 3,847 3,847 4,599 4,599 1,697 1,697 4,625 4,625 17,353 17,353

Total
Actual 9,520 33,678 8,661 14,742 6,713 14,150 87,464 2,116 2,116 5,664 5,664 315 315 3,536 3,536 4,046 4,046 1,142 1,142 2,822 2,822 9,502 9,502 Variance 3,979 3,920 3,017 4,053 345 25,973 41,287 549 549 18 18 95 95 311 311 553 553 555 555 1,803 1,803 7,851 7,851

13,499 37,598 11,678 18,795 7,058 40,123 128,751 2,665 2,665 1,136 1,136 410 410 1,697 1,697 4,625 4,625 15,351 15,351

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199

STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations, Non-GAAP, Budget Basis
(Continued from previous page) (Amounts in Thousands)
Budget Debt Service and Reserve Debt Service Debt Service: 2001-E Docks/Local Match Bonds Debt Service: 2002-A GO Bonds Debt Service: 2005-A GO Bonds Debt Service: Administrative Office of Courts Debt Service: Alabama Building Renovation Fin Authority Debt Service: Department of Corrections Debt Service: Department of Mental Health Debt Service: Department of Public Health Debt Service: General Obligation 1999-B Refunding Debt Service: GO 2001-A Agriculture Development Bond Debt Service: GO 2001-B Forensic Sciences Debt Service: GO 2001-C Parks System Bonds Debt Service: GO 2001-D Historic Site Bonds Debt Service: GO 2006 Debt Service Debt Service: GO 2007-A Debt Service Total Debt Service and Reserve Development Office Industrial Development: Alabama Development Office Total Development Office Dieteticians and Nutritionists Examining Board Professional and Occupational Licensure and Regulation Total Dieteticians and Nutritionists Examining Board District Attorneys Court Operations Total District Attorneys Educational Television Commission Educational Television Total Educational Television Commission Electrical Contractors Board Professional and Occupational Licensure and Regulation Total Electrical Contractors Board Electronic Security Board Professional and Occupational Licensure and Regulation Total Electronic Security Board Environmental Management Environmental Management Total Environmental Management 1,871 547 2,418 3,814 3,814 36,148 36,148 -

For the Fiscal Year Ended September 30, 2010
General Fund
Actual 1,871 547 2,418 3,591 3,591 35,345 35,345 Variance 223 223 803 803 -

200

Education Trust Fund
Budget 6,006 6,006 6,742 6,742 Actual 6,006 6,006 6,714 6,714 Variance 28 28 Budget

Earmarked Funds
Actual 50,280 7,674 4,145 1,845 3,973 2,906 2,138 1,460 3,515 1,004 294 1,383 473 4,776 24,535 110,401 1,430 1,430 111 111 120 120 566 566 307 307 314 314 109,126 109,126 Variance 4,675 1 3,636 2,028 33 12 1,871 3,600 1,075 7,107 24,038 480 480 39 39 149 149 121 121 20 20 29,779 29,779 Budget 54,955 7,675 4,145 11,487 3,973 4,934 2,171 1,460 3,527 3,742 4,604 1,369 9,037 473 4,776 24,535 142,863 5,724 5,724 150 150 36,268 36,268 7,457 7,457 428 428 334 334 138,905 138,905

Total
Actual 50,280 7,674 4,145 7,851 3,973 2,906 2,138 1,460 3,515 1,871 1,004 294 1,930 473 4,776 24,535 118,825 5,021 5,021 111 111 35,465 35,465 7,280 7,280 307 307 314 314 109,126 109,126 Variance 4,675 1 3,636 2,028 33 12 1,871 3,600 1,075 7,107 24,038 703 703 39 39 803 803 177 177 121 121 20 20 29,779 29,779

54,955 7,675 4,145 5,481 3,973 4,934 2,171 1,460 3,527 1,871 4,604 1,369 8,490 473 4,776 24,535 134,439 1,910 1,910 150 150 120 120 715 715 428 428 334 334 138,905 138,905

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201

857 11.338 603 603 704 10 14 4 8.Other Educational Activities: Optometric Scholarships Total ETF Direct Disbursements ETF Non-State Support .040 116 2.Other Educational Activities: Tuskegee University Total ETF Non-State Ethics Commission Regulation of Public Officials and Employees Total Ethics Commission Farmers' Market Authority Agricultural Development Services Total Farmers' Market Authority Finance Special Appropriations Administration Service and Logistical Support: Removal of Prisoners Criminal Investigation: Arrest of Absconding Felons Executive Direction: Governors' Widow Retirement Fiscal Management: Cash Management Improvement Act Institutional Service Corrections: Feeding of Prisoners Legal Advice and Legal Service: Automatic Appeal Expense Legal Advice and Legal Service: Court Assessed Cost not Provided Legal Advice and Legal Service: Law Enforcement Legal Defense Special Services: Court Assessed Cost not Provided Special Services: Election Expenses Special Services: Emergency Fund.240 12.360 180 4.Other Educational Activities: Marine Environmental Support .Other Educational Activities: Dental Scholarships Support .693 630 630 720 53 14 737 8.450 24.550 35 262 3 4.748 7.446 11. Non-GAAP. 2010 General Fund Actual 1.240 For the Fiscal Year Ended September 30.624 7.338 1.200 35 116 2.477 383 383 202 .STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.923 12.Other Educational Activities: Lyman Ward Military Academy Support .857 Variance 355 355 27 27 16 43 733 190 35 82 3 124 160 35 56 1. Departmental Special Services: Estate of Robert E Doyle Special Services: Registration of Voters Total Finance Special Appropriations Finance Special Funds Appropriation Transfers Non-State Special Services Total Finance Special Funds Forensic Sciences Forensic Science Services Total Forensic Sciences 1.693 1. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget ETF Direct Disbursements Debt Service: Auburn University Endowment Debt Service: Grove Hill Endowment Debt Service: University of Alabama Endowment Employee Benefits: Teachers Retirement System Unused Sick Leave Death Benefits Financial Assistance: Alabama School of Fine Arts Financial Assistance: American Legion Scholarships Financial Assistance: Lee County Schools Financial Assistance: Walker County School System Special Services: Space Science Exhibit Commission Support .394 23.Other Educational Activities: Talladega College Support .

750 28.272 Variance 2.276 113 65 861 520 268 3.338 2.319 720 53 14 737 8.494 10.651 204.716 249 837 9.624 7.446 204.065 16 43 733 190 35 82 3 124 160 35 56 1.494 10.580 1.276 101 65 861 520 268 3.360 180 4.499 150 13.276 113 65 861 520 268 3.338 16.494 10.129 Variance 268 12 280 355 355 2.494 10.450 24.477 5.923 204.040 116 2.172 44 240.894 6.254 3.716 249 837 9.651 2.580 Variance 268 12 280 Budget Earmarked Funds Actual 4.449 Continued on next page.894 6.162 6.748 7.319 5.338 3.172 44 240.693 1.578 28.172 44 240.689 4.550 35 262 3 4.534 36.065 2.Education Trust Fund Budget 20 1 61 2..066 5.499 150 13.254 704 10 14 4 8.162 6.580 1.276 101 65 861 520 268 3.338 1.580 Actual 20 1 61 1.200 35 116 2.750 11.066 Budget 20 1 61 2.038 5.750 16.534 36.129 23.693 5.499 150 13..272 11.449 5.578 Total Actual 20 1 61 1.689 204.750 23.534 36.038 2.996 249 837 9.394 23.534 36. 203 .996 249 837 9.499 150 13.172 44 240.

983 1.506 2.983 16 270 81 203 252 182 263 153 16 164 212 81 29 15 122 2. Inc Non-State: Network of Children's Advocacy Centers Total General Fund Non-State Geological Survey Mineral.059 446 203 892 1. Non-GAAP. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Foresters Registration Board Professional and Occupational Licensure and Regulation Total Foresters Registration Board Forestry Commission Forest Resources Protection and Development Total Forestry Commission Forever Wild Land Trust Administrative Services Total Forever Wild Land Trust Fringe Benefit Accounts Fringe Benefits: Judicial Retirement .637 3.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations. 2010 General Fund Actual 1.983 1.541 3.983 15 264 79 198 246 178 257 150 15 161 207 79 28 15 119 2.637 99 99 313 313 For the Fiscal Year Ended September 30. and Water Resources Total Geological Survey Governor's Office of Faith-Based and Community Initiatives Executive Direction Total Governor's Office of Faith-Based and Community Initiatives Governor's Office on Disability Executive Direction Total Governor's Office on Disability 1. Stephens Historical Commission Tourism and Travel Promotion: Motor Sports Hall of Fame Water Resource Development: Bear Creek Development Authority Water Resource Development: Choccolocco Creek Watershed Water Resource Development: Tennessee-Tombigbee Waterway Total General Fund Direct Disbursements General Fund Non-State Non-State: Coalition Against Domestic Violence Non-State: Kidney Foundation.823 83 83 150 150 Variance 1 6 2 5 6 4 6 3 1 3 5 2 1 3 48 10 5 20 35 814 814 16 16 163 163 204 .823 2.011 436 198 872 1.General Fund Share Total Fringe Benefit Accounts Funeral Services Board Professional and Occupational Licensure and Regulation Total Funeral Services Board General Contractors Licensing Board Professional and Occupational Licensure and Regulation Total General Contractors Licensing Board General Fund Direct Disbursements Employment and Social Opportunities: Women's Hall of Fame Fine Arts: Music Hall of Fame Historical Resources Management: Brierfield Ironworks Park Historical Resources Management: Cahaba Advisory Committee Historical Resources Management: Citizenship Trust Historical Resources Management: Historic Blakeley Authority Historical Resources Management: Historic Chattahoochee Commission Historical Resources Management: Historic Ironworks Commission Historical Resources Management: Men's Hall of Fame Historical Resources Management: Sports Hall of Fame Historical Resources Management: St. Energy.

593 1.263 1.197 5.876 28.374 2.983 209 209 1.659 7.638 1.876 28.535 7.983 1.967 3.638 6.628 7.547 163 163 200 200 36.582 3.628 1.628 7.604 3.919 3.515 Budget 200 200 36.547 1.515 1.638 6.374 2.263 15 264 79 198 246 178 257 150 15 161 207 79 28 15 119 2.535 7.059 446 203 892 1.659 990 990 59 59 656 656 1.876 6.535 36.919 1.876 6.604 7.593 1.582 - Continued on next page.810 313 313 Total Actual 86 86 28.659 990 990 59 59 656 656 1 6 2 5 6 4 6 3 1 3 5 2 1 3 48 10 5 20 35 2.967 3.Education Trust Fund Budget 129 129 Actual 113 113 Variance 16 16 Budget Earmarked Funds Actual 86 86 28.067 2.506 5..535 36..628 268 268 1.263 1.541 7.407 1.011 436 198 872 1.638 209 209 1.983 268 268 1.659 7.407 2.197 2.263 2.983 1.263 2.919 16 270 81 203 252 182 263 153 16 164 212 81 29 15 122 2.263 150 150 Variance 114 114 7.810 3.919 1. 205 .067 Variance 114 114 7.

Air Conditioning. and Refrigeration Contractors Board High School of Math and Science Financial Assistance Total High School of Math and Science Historical Commission Historical Resources Management: Alabama Historical Commission Historical Resources Management: Bellemont Historical Resources Management: Birmingham Civil Rights Institute Historical Resources Management: Birmingham Unity Breakfast Historical Resources Management: Black Heritage Historical Resources Management: Buffalo Soldier Memorial Historical Resources Management: Capitol Preservation Historical Resources Management: Civil Rights Foot Soldiers Historical Resources Management: Collinsville Clock Historical Resources Management: Confederate Park-Soldier Fund Historical Resources Management: Donnell House Historical Resources Management: Helen Keller Birthplace Historical Resources Management: Houston Memorial Library Historical Resources Management: Jesse Owens Park Historical Resources Management: Katrina Grants Historical Resources Management: Nat King Cole Project Historical Resources Management: Past Time Theatre Historical Resources Management: Ralph Abernathy House Historical Resources Management: Roxy Theatre Historical Resources Management: Russell County Historical Commission Historical Resources Management: Tallapoosa Historical Museum Historical Resources Management: USS Alabama Battleship Commission Historical Resources Management: Voting Rights Museum Total Historical Commission Home Builders Licensure Board Professional and Occupational Licensure and Regulation Total Home Builders Licensure Board Home Medical Equipment Services Provider Board Professional and Occupational Licensure and Regulation Total Home Medical Equipment Services Provider Board Homeland Security Office Readiness and Recovery Total Homeland Security Office Indian Affairs Commission Social Services Total Indian Affairs Commission 220 220 597 597 151 151 For the Fiscal Year Ended September 30. Non-GAAP.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Health Planning and Development Health Planning Development and Regulation Total Health Planning and Development Hearing Instrument Dealers Board Professional and Occupational Licensure and Regulation Total Hearing Instrument Dealers Board Heating. Air Conditioning. 2010 General Fund Actual 215 215 516 516 142 142 Variance 5 5 81 81 9 9 206 . and Refrigeration Contractors Board Professional and Occupational Licensure and Regulation Total Heating.

306 18.117 1.224 5.404 255 255 40.553 194 194 Variance 151 151 25 25 157 157 362 362 711 2 10 22 189 192 1.037 52 52 Variance 146 146 25 25 157 157 235 235 711 2 10 22 189 192 1.117 6.754 Actual 5.913 52 52 18. 207 .117 470 470 5.491 2.224 6.491 203 203 22.484 45 9 9 48 45 279 9 90 645 36 90 9 45 409 68 45 90 45 149 14 81 90 7.913 1.491 203 203 22.940 205 205 Total Actual 1.708 2.343 40.343 54 54 Continued on next page.773 43 9 9 38 45 257 9 90 456 36 90 9 45 217 68 45 90 45 149 14 81 90 6.627 5.126 1.754 5.037 22.126 1.627 Variance 127 127 Budget Earmarked Funds Actual 965 965 29 29 960 960 235 235 4.180 29 29 960 960 5.387 11 11 1.111 54 54 1..773 43 9 9 38 45 257 9 90 456 36 90 9 45 217 68 45 90 45 149 14 81 90 6.111 1.331 1.834 4.404 4.553 22.862 5.331 54 54 1.862 4.387 18.708 2.117 1.913 1.404 255 255 40.834 4.913 52 52 18.940 40.491 2.404 4.180 1.306 2 2 Budget 1.Education Trust Fund Budget 5..484 45 9 9 48 45 279 9 90 645 36 90 9 45 409 68 45 90 45 149 14 81 90 7.

Match-Alabama A&M Support of State Universities: Trust for Educational Excellence.822 780 780 Variance 416 416 214 214 135 135 876 876 699 699 4 195 199 190 190 - 208 .308 1.308 2.021 970 970 - For the Fiscal Year Ended September 30.383 2. Match-Alabama State Total Knight vs.664 2.859 3. Base-Alabama A&M Support of State Universities: Trust for Educational Excellence.383 162 2.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations. Non-GAAP. 2010 General Fund Actual 467 467 394 394 432 432 1. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Insurance Regulatory Services Total Insurance Interior Design Registration Board Professional and Occupational Licensure and Regulation Total Interior Design Registration Board Interpreters and Transliterators Professional and Occupational Licensure and Regulation Total Interpreters and Transliterators Judicial Inquiry Commission Administrative Services Total Judicial Inquiry Commission Knight vs. Alabama Financial Obligation Support of State Universities: Alabama State-PhD Microbiology Program Support of State Universities: Doctoral Program in Education-Alabama State Support of State Universities: Knight vs Alabama 2 year Postsecondary Support of State Universities: Scholarships to Diversify-Alabama A&M Support of State Universities: Scholarships to Diversify-Alabama State Support of State Universities: Trust for Educational Excellence. Alabama Financial Obligation Labor Regulatory Services Total Labor Landscape Architect Examining Board Professional and Occupational Licensure and Regulation Total Landscape Architect Examining Board Legislative Building Authority Legislative Operations and Support Total Legislative Building Authority Legislative Council Legislative Operations and Support Total Legislative Council Legislative Fiscal Office Legislative Operations and Support Total Legislative Fiscal Office Legislative Reference Service Legislative Operations and Support Legislative Operations and Support: Code Supplement-LRS Legislative Operations and Support: Legislative Reference Service Total Legislative Reference Service Lieutenant Governor Legislative Operations and Support Total Lieutenant Governor Liquefied Petroleum Gas Board Regulatory Services Total Liquefied Petroleum Gas Board 883 883 608 608 135 135 1.684 158 2. Base-Alabama State Support of State Universities: Trust for Educational Excellence.684 1.

000 1.278 346 346 98 98 Actual 1.000 1.209 11.690 23 23 10 10 416 416 830 1.000 1.408 69 69 300 300 1.000 1.000 Variance 2. 209 .000 769 8.000 1.690 2.000 1.235 2.217 336 336 98 98 Variance 830 1.000 10.899 50 50 50 50 883 883 1.213 1.213 1.659 1.235 2.235 2.429 1.000 1.020 2.419 970 970 1.235 2.035 1.659 1.000 1.729 398 162 2.308 1.035 52 52 140 140 1.Education Trust Fund Budget 1.209 11.213 830 1.209 27 27 40 40 1.000 1..000 1.000 769 8.308 2.000 1.000 1.061 10 10 Budget Earmarked Funds Actual 11.000 1.000 1.429 52 52 432 432 2.000 231 2.729 2.659 Total Actual 11.060 780 780 1.217 1.000 10.690 23 23 10 10 373 373 17 17 160 160 659 659 Budget 13.016 2.000 1.000 1.000 1.278 2.659 Continued on next page.899 13.213 830 1.664 3..061 587 587 17 17 135 135 876 876 709 709 160 4 195 359 190 190 659 659 13.000 Variance 2.209 27 27 40 40 467 467 1.899 50 50 50 50 1.408 1.020 238 158 2.000 1.899 13.859 3.000 231 2.016 69 69 135 135 1.690 2.

202 13 10.459 20 20 756 756 1.395 3 3 1.644 3.Army MCCA Military Operations: Military Billeting Military Operations: Operations Military Operations: Operations and Maintenance Military Operations: Quartering Allowance to Headquarters Military Operations: State Defense Force Total Military Nursing Board Professional and Occupational Licensure and Regulation Total Nursing Board Nursing Home Administration Examining Board Professional and Occupational Licensure and Regulation Total Nursing Home Administration Examining Board Occupational Therapy Board Professional and Occupational Licensure and Regulation Total Occupational Therapy Board Office of Prosecution Services Prosecution Training Education and Management Total Office of Prosecution Services Oil and Gas Board Management and Regulation of Oil and Gas Exploration/Development Total Oil and Gas Board Pardons and Paroles Administration of Pardons and Paroles Total Pardons and Paroles Peace Officer Annuity and Benefit Retirement Systems Total Peace Officer Annuity and Benefit 767 949 834 714 584 5.888 2. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Manufactured Housing Commission Regulatory Services Total Manufactured Housing Commission Marriage and Family Therapy Board Professional and Occupational Licensure and Regulation Total Marriage and Family Therapy Board Massage Therapy Board Professional and Occupational Licensure and Regulation Total Massage Therapy Board Medical Scholarships Awards Board Support .286 Variance 549 21 234 501 26 2.127 - For the Fiscal Year Ended September 30. 2010 General Fund Actual 218 928 600 213 558 3.100 24 4 3.286 33.004 3.004 1.127 35.888 33. Non-GAAP.178 9 6.644 35.936 3 3 984 984 2.841 - 210 .841 1.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.332 1.232 1.Other Educational Activities Total Medical Scholarships Awards Board Military Military Operations: Active Military Service Military Operations: ANG Operations & Maintenance Military Operations: BP Oil Spill Military Operations: Bus Driver Training Military Operations: Counter Drug Military Operations: Dropping Allowance Military Operations: Military.

119 257 78 52.762 3.795 1.961 30 30 150 150 1.795 600 600 Total Actual 1.706 4.961 3.413 857 213 14 38.835 8.762 4.041 438 438 233 233 Actual 1.376 556 23.975 2.696 115 115 135 135 5.666 29.202 13 108.766 24 4 32.485 257 14 38.696 8.166 32 32 400 400 634 64 14. 211 .778 486 486 12.062 1.439 97.197 1.217 1.332 1.460 115 115 135 135 4.979 4.968 1.374 45.041 1.041 218 6.592 448 13.461 8.289 8.820 465 465 Variance 2.068 1.332 2.773 68.795 48.706 48.668 13.961 3.778 3.041 1.376 556 558 27.091 714 78 52.166 2.795 30 30 118 118 1.863 171 171 36 36 24 24 1..795 30 30 118 118 5.062 13.178 9 75.460 8.795 1.975 4.289 79 79 111 111 3.209 1.975 1.041 438 438 233 233 Variance Budget Earmarked Funds Actual 1.441 767 7..197 576 576 1.374 3.968 1.404 171 171 36 36 24 24 1.534 12.975 135 135 3.865 8.041 1.Education Trust Fund Budget 1.961 30 30 150 150 400 400 6.979 5.441 1.217 1.134 135 135 Budget 3.166 32 32 400 400 549 655 234 501 64 14.525 79 79 111 111 4.698 8.668 600 600 Continued on next page.134 1.004 37.820 45.004 584 43.166 2.525 8.592 448 26 15.443 1.534 465 465 Variance 2.

Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Peace Officer Standards and Training Certified Law Enforcement Academy Program Professional and Occupational Licensure and Regulation Total Peace Officer Standards and Training Personnel Administrative Support Service Total Personnel Physical Fitness Commission Advisory Services Total Physical Fitness Commission Physical Therapy Board Professional and Occupational Licensure and Regulation Total Physical Therapy Board Plumbers and Gas Fitters Examining Board Professional and Occupational Licensure and Regulation Total Plumbers and Gas Fitters Examining Board Polygraph Examiners Professional and Occupational Licensure and Regulation Total Polygraph Examiners President Pro Tempore Senate Legislative Operations and Support Total President Pro Tempore Senate Proessional Engineers Registration Board Professional and Occupational Licensure and Regulation Total Proessional Engineers Registration Board Professional Geologists Licensing Board Mineral. Non-GAAP. and Water Resources Total Professional Geologists Licensing Board Psychology Examiners Board Professional and Occupational Licensure and Regulation Total Psychology Examiners Board Public Education Employees Health Insurance Board Administrative Support Service Total Public Education Employees Health Insurance Board Public Library Service APLS Special Grant Program Public Library Services Total Public Library Service Public Livestock Market Board Agricultural Development Services Total Public Livestock Market Board Real Estate Appraisers Board Professional and Occupational Licensure and Regulation Total Real Estate Appraisers Board Real Estate Commission Professional and Occupational Licensure and Regulation Total Real Estate Commission 2.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.791 - For the Fiscal Year Ended September 30.071 2. 2010 General Fund Actual 2. Energy.071 Variance 720 720 - 212 .791 2.

701 8.791 2.950 9.330 Variance 67 830 897 873 873 42 42 174 174 816 816 14 14 720 720 470 470 14 14 86 86 1.973 2.812 281 281 1..033 7.565 1.072 4.137 20 20 3 3 238 238 1.913 2.208 1.072 1.973 2.208 46 46 150 150 2.598 9.137 31 151 182 3 3 238 238 1.895 Total Actual 758 3.685 847 847 455 455 2.895 4.471 16 16 1.053 8.791 1.670 4.500 4.895 Continued on next page.287 2.287 30 30 2.208 46 46 150 150 2.565 Budget 825 4.332 Variance 23 23 31 131 162 Budget Earmarked Funds Actual 383 3. 213 .565 450 4.812 8.245 1 1 834 834 3.973 2..287 30 30 1.072 4.330 3.678 1.330 Variance 67 830 897 873 873 19 19 174 174 816 816 14 14 470 470 14 14 86 86 1.330 3.071 2.137 1.287 2.208 1.933 2.812 805 805 281 281 1.110 4.471 1.072 1.494 Actual 375 273 648 805 805 299 7.685 9.678 60 60 236 236 4.812 8.913 1 1 834 834 3.110 2.427 4 4 1.110 330 10.943 4.973 299 9.678 60 60 236 236 4.895 4.946 10.137 1.471 1.678 1.110 4.685 9.773 5.471 16 16 2.071 1.933 4 4 1.097 10.164 7.Education Trust Fund Budget 375 273 648 828 828 330 7.565 1.685 19 19 455 455 2.

310 For the Fiscal Year Ended September 30.360 6.Other Educational Activities Total Sickle Cell Oversight Commission Social Work Examiners Board Professional and Occupational Licensure and Regulation Total Social Work Examiners Board Soil and Water Conservation Commission Professional and Occupational Licensure and Regulation Resource Conservation and Development Water Resource Development Total Soil and Water Conservation Commission Speaker of the House Speaker of House.488 1.313 5. Non-GAAP.488 214 .218 16. Office of Total Speaker of the House Speech Pathologists and Audiologists Examining Board Professional and Occupational Licensure and Regulation Total Speech Pathologists and Audiologists Examining Board State Bar Association Professional and Occupational Licensure and Regulation Total State Bar Association State Employees Insurance Board Administrative Support Service Fringe Benefits Total State Employees Insurance Board State Executive Commission .235 4.313 8.219 498 498 5.Community Services State Industrial Development Authority Industrial Development Total State Industrial Development Authority Supercomputer Authority Information Technology Services Total Supercomputer Authority Supreme Court Court Operations Total Supreme Court 1.Community Services Alabama Community Service Grant: House of Representatives Alabama Community Service Grant: Senate Total State Executive Commission .323 852 852 5.088 2.620 15.822 Variance 66 259 598 923 46 58 104 354 354 233 233 1.927 8.571 2.648 2.546 10.101 5.042 2.310 10.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.993 8. 2010 General Fund Actual 1.177 4.546 5.822 8. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Retirement Systems of Alabama Retirement Systems Total Retirement Systems of Alabama Securities Commission Regulatory Services Total Securities Commission Senior Services Elderly Medication Program Medicaid Waiver Services Planning and Advocacy for Elderly Total Senior Services Sickle Cell Oversight Commission Support .

928 44.502 1.526 8.316 4.916 4.899 6.488 1.502 234 234 1.772 10.253 1.801 2.546 355 355 5 1.899 6.848 79.502 3.149 Variance 13.699 4.040 13.316 1.185 354 354 104 104 873 873 3.482 11.467 3.916 66 10.809 31.013 79 79 3 1.502 3.468 95.482 11.809 31.482 - Continued on next page.809 8.751 1.779 2.890 1.254 Variance 1 1 Budget Earmarked Funds Actual 31.526 11.916 4.040 13.916 10.928 13.928 44.040 8.685 28.350 2.928 13.277 1.253 1.043 333 333 1.088 3.043 1.316 1.605 289 289 5.835 5.119 4.307 11.612 110.078 1.043 333 333 Budget 44.119 4.149 11.899 4.600 1.743 498 498 185 185 4.772 10.215 4.042 2.149 8.890 61.119 13.928 852 852 289 289 5.772 5. 215 .890 13.255 Actual 1.974 50.567 1.993 69.488 44.809 8.761 4..974 8.310 Total Actual 31.512 38.316 1.350 11.927 58.974 1.043 1.779 9.152 32.546 14.040 8.822 Variance 13.822 8.974 8.181 1.936 79 79 3 46 1.081 104 104 873 873 3.307 1.Education Trust Fund Budget 1.772 5.526 11.394 93.144 14.726 4.533 276 276 2 522 524 185 185 4.890 13.310 10.316 4.526 8.350 11.277 9.316 1.307 11.316 276 276 2 2..149 11.899 4.482 10.350 2.751 1.214 4.136 1.117 1.527 4.307 1.119 13.786 34.316 355 355 5 2.

111 $ Variance 17 17 63 63 721 721 19 19 20.159.039 For the Fiscal Year Ended September 30. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget Supreme Court Law Library Court Operations Total Supreme Court Law Library Surface Mining Commission Industrial Safety and Accident Prevention Total Surface Mining Commission Tourism Instructional Technical Assistance Tourism and Travel Promotion Total Tourism Veterans Affairs Administration of Veterans Affairs Student Financial Aid Veterans' Home Total Veterans Affairs Veterinarian Medical Examiners Board Professional and Occupational Licensure and Regulation Total Veterinarian Medical Examiners Board Women's Commission Employment and Social Opportunities Total Women's Commission TOTAL Other TOTAL EXPENDITURES TRANSFERS OUT: Education Trust Fund Transfers Building Commission Child Abuse Board Education Tech Fund Transfer Finance-Telephone Revolving Human Resources Mental Health Penny Trust Fund Public School Fund Endowment Supercomputer TOTAL Education Trust Fund Transfers 1. 2010 General Fund Actual 1.380 1.STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.938 36 36 196.380 644 644 2.397 707 707 3.659 55 55 216.938 2.397 1.301 $ 1.324 89. Non-GAAP.659 3.249.928 216 .625 $ 1.

427 24.944 16.706 1.673 26.119 12.278 53.093.400 $ 4.379 86 25.503 1.173.175 2.431 22.354 514 1.696 28.119 12.309 97 97 19 19 308.052 32.278 53.112 1.464 27.882 3.637 345 533 8.831 18.503 7.586 30.637 345 533 8.175 7.895 $19.637 345 533 8.354 - - - - 514 1.397 1.112 7.354 30.332 10.106 Variance 17 17 1.706 1. 217 .354 - Continued on next page.052 44.890 1.375.882 86 32.246 32.549 1.609 Total Actual 1.093 $ Variance 225 1.882 86 31.549 1.996 600 600 1.Education Trust Fund Budget 2.513 2.503 7.813 5.637 345 533 8.855 $17.706 1.645 $ 4.592 63.573 44.999.423 48.503 1.119 12.503 514 1.532 Actual 2.221 503 503 1.379 86 24.406 132.902 Variance 1.783.205.815 $ 5.061 600 600 55 55 1.136 Budget 1.625 4.094.592 30.379 2.673 26.119 12.673 26.295 $24.380 1.038 2.416.206.549 1.775 97 97 282.539 31.688.882 3.673 26.464 30.278 53.439 Budget Earmarked Funds Actual 3.397 3.151..629 27.384 $ 5.593 127.831 21.129 28.380 2.071 25.423 85.379 2..354 514 1.706 1.588 16.549 1.278 53.157 7.725.752 503 503 36 36 1.210 $13.588 1.

092 419 639 203 434 1.831 97.714 81 343 1.025 $ 1. 2010 General Fund Actual 90 1.244 13.136 $ For the Fiscal Year Ended September 30. Budget Basis (Continued from previous page) (Amounts in Thousands) Budget General Fund Transfers Alabama Bureau of Investigation Cost of Evidence Child Abuse Board Child Health Insurance Program Children's Policy Council Conservation and Natural Resources Crime Victims Compensation Commission Educational Television Commission Environmental Management .STATE OF ALABAMA DETAIL SCHEDULE OF BUDGET AND ACTUAL EXPENDITURES All Agencies and Appropriations.562.744 201 2.714 81 343 1.039 313.472.420 18 647 81 540 4.040 313.897 152 103.744 201 2.040 313.039 $ $ Variance 97 97 97 90.092 419 639 203 434 1.242 162 3.911 20 324 40.150 218 .420 18 647 81 540 4.136 313.371 2. Non-GAAP.276 36.242 162 3.276 36.911 20 227 40.244 13.Operations Environmental Management-Hazardous Substance Fund Environmental Management-Steel / Dust Sludge Fair Trial Tax Transfer Finance Forestry Commission Forestry Emergency Forest Fire Historical Commission Human Resources Local Emergency Management Agency Assistance Mental Health Peace Officers Annuity & Benefit Penny Trust Fund Pollution Control Grant Pollution Grant Postsecondary Department Revenue-Ad Valorem Equalization Surface Mining Commission Tourism and Travel Department Treasurer-SAFE Program Agriculture and Conservation Development Commission TOTAL General Fund Transfers TOTAL TRANSFERS OUT TOTAL EXPENDITURES AND TRANSFERS OUT $ 90 1.831 97.897 152 103.175 $ 1.371 2.

393 $ Variance 97 97 97 $ 5.Education Trust Fund Budget $ 53.242 162 3.038 $13.244 13.242 162 3.092 419 639 203 434 1.600 219 .276 36.490 $ Total Actual 90 1.911 20 324 40.831 97.744 201 2.420 18 647 81 540 4.276 36.204.244 13.744 201 2.365.040 313.371 2.783.136 $24.206.447 $17.371 2.897 152 103.831 97.886 $ 5.902 $ 4.897 152 103.040 313.099 $20.354 $ Actual 53.714 81 343 1.688.911 20 227 40.136 366.039 366.439 $ Budget Earmarked Funds Actual $ $ Variance $ Budget 90 1.714 81 343 1.226.420 18 647 81 540 4.092 419 639 203 434 1.572.354 $ $ Variance 22.094.499 $ 4.

3% 15.7% 0. varying amounts on cigars.1% 41. 3¢ aviation. securities.064 55.312 1.200 269. 6.949.857.003.234 122.2% 1.705 410.25 mills per cigarette.786 104.627 105. snuff. smoking tobacco.2% 0. etc.7% 2.0% 0.5% vehicles.000 net worth.2% 0.8% 1.780 2.964 96 33.730 6.1% 0. 1.5% of net income of banks and other financial institutions) Documentary Filing Taxes (auto title.908 9.375 245.0% 0.2% 0.(4% most items.5% net corporate income) Property Tax Relief (represents portion of Income Tax used to offset property taxes lost in certain funds due to homestead exemptions) General Property Tax (6 1/2 mills for state on varying rates not over 30%) Gasoline Taxes (16¢ per gallon.) Public Utilities (2.3% 0.823 2.727 1.8% 0.737 39.3% 0.) Corporation Taxes (privilege.6% 0. Transfers Excluded For the Fiscal Year Ended September 30. 2010 (Amounts in Thousands) TAXES General Sales Tax (4% on gross retail sale of merchandise) General Use Tax Income Tax (2% to 5% personal income. deed.976 316.0% 0.4% 0.2% 1.5% 0.653 62.9% 220 . 25¢ to $1. collected by ABC stores) Tobacco & Cigarette Taxes (21. 2% garments) Production Privilege Tax (Oil & Gas Severance at amounts varying 2-8%) Financial Institutions Excise Tax (6.724 43.581 46.3% 0.802 137.3% 0.4% 1.368 143.5% 0.0% 0. permit. etc) Coal Severance Tax (33.158 436.742 137.235 81. 4% other) Insurance Premium Tax (1% to 6%) Liquor & Wine Tax (totals 56%.1% 2.6% 0.603 8.874 55.765 256.918 831 18.445 4.104 35.969 18.2%) Motor Fuel Tax (diesel 17¢ per gallon) Tennessee Valley Authority (payments in-lieu of all state taxes) Leasing / Renting Tangible Personal Property .0% 0.5¢ per ton) Forestry Severance Tax Inheritance Tax (amount of federal credit) Contractors Gross Receipts Tax (5% of gross receipts) Lodgings Tax (4% or 5% of charge) Hydroelectric Companies (tax on 2/5 mill per kilowatt hour and 2. 1¢ jet) Utilities Tax (6% telephone. entrance fees for filing) State Beer Tax (5¢ per 12 oz.7% 0.STATE OF ALABAMA SCHEDULE OF REVENUES BY PRINCIPAL SOURCES Governmental Funds in State Treasury Cash Basis.75 per $1.4% 0.0% 0.2% per dollar gross receipts) Lubricating Oil Tax (6¢ per gallon) Pari-mutuel Betting (1 or 2% on pari-mutuel pools) Court Cost Taxes Medicaid Taxes Cellular Telephones (6%) Ground Materials Severance Tax Miscellaneous Taxes TOTAL TAXES $ 1.0% 0. mortgage.

648 $19.00025¢ to 15¢ per gallon) Agricultural Licenses and Fees Wholesale Oil Company License Motor Vehicle License ($23.309.808 0. boat registration.369 153.6% 154.871 434.3% 32.239 76.757 102.648 623.492 0.LICENSES AND FEES Conservation Licenses (fishing.4% 0. up to $845. businesses.001 9. professions.346 2.5% 5.125. etc) Drivers Licenses and Fees Petroleum Products Inspection Fees (. factories.0% 0.8% 3.677 157.149 50.011 11.954 60.266 15.1% 100.519 80.8% 0.046 979.838 0.3% 0.3% 48.2% 2.2% 0.250 98.0% 221 .091 3.1% 0.852 97.00 on auto. hunting.0% 0.536 50.921 63.4% 0.0% 0.5% 0.1% 0.541 34.9% 0.489 1.5% 0.3% 0. etc) Court Fees Alcoholic Beverage Licenses Insurance Corporation Licenses and Fees Miscellaneous License and Fees TOTAL LICENSES AND FEES FINES AND FORFEITS Court Fines and Forfeits Tobacco Settlement Miscellaneous Fines and Forfeits TOTAL FINES AND FORFEITS INVESTMENT INCOME FEDERAL REVENUES OTHER REVENUES Rents and Royalties Reimbursements Sales of Property or Services Contributions Intragovernmental Services Local Revenues Disproportionate Hospital Receipts (Medicaid) Miscellaneous Revenues TOTAL OTHER REVENUES TOTAL REVENUES 26.1% 0.3% 0.00 on buses) Privilege License (fees for privilege of operating stores.3% 0.071 63.8% 0.00 on trucks and up to $210.2% 0.803 145.576 41.3% 0.

888 12.727 1.290 619.803 145.640 $ Public School Fund 0 20.976 316.280 105.322 413 475 4.235 64.786 104.954 60.838 434.203 $ 168.852 97.235 81.657 712 5.918 831 18.274 37.212.814 143.642 $ 18.802 137.471 55.786 104.279 Alabama Trust Fund $ 0 0 0 0 13.529 $ General Fund 75.835 32.064 55.610 21.147 725 36.104 35.737 39.969 18.627 105.011 11.896.044 $ 1.398 $ 19.954 Education Trust Fund $ 1.344 $ Human Resources Funds 61.450 153.285 123.603 8.653 62.104 35.993.492 32.312 1.954 60.713 $ 136.674 43.677 157.039 68.250 539.726 1.592 122.801 241.266 15.871 2.592 3.234 122.752 31.908 26.730 6.742 137.730 96 31.464 $ Net Revenues 1.519 80.695 219.816.829.213.445 4.677 42.803 145.149 50.121 3.857.070 2.563 74.159.921 63.765 256.445 4.566.180 23.425 500 6.712 5.489 598 3.346 2.896 80.403 957.190 237.881.751 0 4.235 81.369 153.091 3.118 9.998 222 .125.025 24.369 153.852 97.003.087 608 2.368 143.943 52.724 43.001 9.874 55.447 2.647.808 Administrative Expense $ 40.440 10.309.158 436.368 143.126 434.869 46.200 269.828 19.333 52.581 46.001 9.742 132.780 2.375 245. Transfers Excluded For the Fiscal Year Ended September 30.289 1.705 410.836 436.401 119.921 63.545 16.802 137.623 358 3.918 831 18.730 6.092 11.995 2 44 46 0 238 $ 5.STATE OF ALABAMA SCHEDULE OF REVENUES BY PRINCIPAL SOURCES AND DISTRIBUTIONS OF REVENUES Governmental Funds in State Treasury Cash Basis.848 89 164.514 7.301 4.346 2.945 445 445 0 1.676 1.896.159 33.732 55.817 397.964 96 33.949.224 119.121 57.569 26.756 $ 132.648 623.637 1.278 11.976 310.091 3.650 96 33.642 142 314 50 23 1 14 347 89 122.038 12 172.938 47.041 22.064 55.653 62.677 155.200 269.262 39.239 76.489 1.056 1.804 22.574 4.250 545.266 15.453 1.339 1.869 421.155 2.489 1.074 5.309.104 10.706 62.149 50.352 256.021 $ 1.823 2.011 11.969 18.400 5. 2010 (Amounts in Thousands) Total Revenues TAXES General Sales Tax General Use Tax Income Tax Property Tax Relief General Property Tax Gasoline Taxes Utilities Tax Insurance Premium Tax Liquor & Wine Tax Tobacco & Cigarette Taxes Corporation Taxes State Beer Tax Public Utilities Motor Fuel Tax Tennessee Valley Authority Leasing/Renting Personal Property Production Privilege Tax Financial Institutions Excise Tax Documentary Filing Taxes Coal Severance Tax Forestry Severance Tax Inheritance Tax Contractors Gross Receipts Tax Lodgings Tax Hydroelectric Companies Lubricating Oil Tax Pari-mutuel Betting Court Cost Taxes Medicaid Provider Taxes Cellular Telephone Tax Ground Materials Severance Tax Miscellaneous Taxes TOTAL TAXES LICENSES AND FEES Conservation Licenses Drivers Licenses and Fees Petroleum Products Inspection Fee Agricultural License and Fees Wholesale Oil Company License Motor Vehicle License Privilege License Court Fees Alcoholic Beverage Licenses Insurance Corp Licenses and Fees Miscellaneous License and Fees TOTAL LICENSES AND FEES FINES AND FORFEITS Court Fines and Forfeits Tobacco Settlement Miscellaneous Fines and Forfeits TOTAL FINES AND FORFEITS INVESTMENT INCOME FEDERAL REVENUES Disproportionate Public Hospital Miscellaneous Revenues TOTAL REVENUES $ 1.809 2.

390.749. Corr 19M.369 3. Conservation 3. DFS 7.1M Insurance Dept ADEM 62M.957 1.580 199.636 1. DIR 70M Cons 54M.957 11 330.110 589 2.245.091 4.244 3.950 122.537 2.784 26.970 $ 1.261 3.3M Conservation Public Safety Agriculture Agriculture Corrections 3.311 $ 1.185 $ 335.397 $ Other 5.138 $ 714.930 5.356 130.599 4.061 24. Indus Rel 5.847 Economic & Community Affairs $ 0 0 0 1.369 31 3.250 95.266 10.418 Debt Service Funds $ 103.300 20.503.277 3. DOC 1.525 14.946. Conservation Dept.465 9.367 21.394 738.277 140. Bank 15M DFS 2.483 88.600 4.565 20.979 754 36.4M. PSC 16M.458 948 948 4 4 2 1.405 116.411 4.674 176.353 101.6M ADEM 8.243 0 0 151 2.000 1.740 97.446 $ 130.742 0 422.001 194.846 1.399 262.809 8.8M.4M.840 $ Medicaid 0 269.5M.280 3.149 17.6M Prof & Occup Bds 26 M AOC 11M.991 2. ADEM 21M 223 .650 10.818 66. Univ 92M.231.914 153 27.9 21st Century Fund DPS 2.688 Health General & Mental $ 0 14.582 $ 1.963 11.491 56.703 13.248 4.171 47.802 17.529 8.675 30. AG 2.534 8.851 1.226 775 9.740 68.285 Distribution of Other Amounts Conservation Dept.683 990.557 2.280 269.123 771 120.255 Education Department $ 0 3.489 23.347 $ 415.422 1.458 3.514 30.501 1.239 540 36 347.4M Research Alliance 3M DOC 197M.835 661 831 234 362.493 434.217 128. DPS 2.036 28.791 $ 4.280 0 3.214 Transportation Department $ 0 216.Distributed To Local Government $ 4.875 2.462 0 1.6M Insurance Dept State Parks Secretary of State Forestry Tourism Fair Trial Fd 18.854 19.058 2.

224 .

Corrections Canteen Accounts for the activity of the canteen funds of the Department of Corrections.Nonmajor Enterprise Funds Nonmajor Enterprise Funds are used to account for the operations of State agencies that provide goods and services to the public in a manner similar to private business enterprises. National Guard Canteen Accounts for the activity of the canteen funds of the National Guard. including the Guaranteed Student Loan Fund and Military Billeting. Motor Sports Hall of Fame Operates a public exhibit displaying the history of automotive racing and other motor sports. 225 . Alabama Health Insurance Plan Provides health insurance coverage for citizens who have lost their group health insurance. The cost of providing the goods or services are recovered primarily through user charges. Other Enterprise Funds Are aggregated for reporting purposes and account for other small enterprise funds operated by the State.

846 1.934 25 23 3.864 0 698 0 6 $ 5 3.337 196 2.655 174 2.397 0 1.630 4.533 $ 768 768 $ 1.823 3.466 $ 2.162 4.700 401 4.825 1.149 9 12 1. Net of Accumulated Depreciation Capital Assets Not Depreciated Total Noncurrent Assets TOTAL ASSETS LIABILITIES Current Liabilities Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Due to Other Governments Claims Payable Unearned Revenue Securities Lending Obligation Total Current Liabilities Noncurrent Liabilities Compensated Absences Other Post-employment Benefits Notes and Capital Leases Payable Total Noncurent Liabilities Total Liabilities NET ASSETS Invested in Capital Assets.829 5 5 7.466 1.149 2 16 18 641 57 698 2 4 6 0 4.105 3.754 3.532 2.928 226 .STATE OF ALABAMA COMBINING STATEMENT OF NET ASSETS Nonmajor Enterprise Funds September 30.559 44 300 7.903 $ 131 104 235 $ 815 3 648 1. Short-term Accounts Receivable Securities Lending Collateral Inventory Other Current Assets Total Current Assets Noncurrent Assets Capital Assets.759 $ 2.105 2. Net of Related Debt Unrestricted TOTAL NET ASSETS Motor Sports Hall of Fame National Guard Canteen Corrections Canteen $ 7.908 1. 2010 (Amounts in Thousands) Alabama Health Insurance Plan ASSETS Current Assets Cash and Cash Equivalents Investments.105 1.

Other Nonmajor Enterprise Funds Totals $ 244 11 255 $ 11.952 10 83 93 174 19 95 1.336 18.133 227 .511 7.825 1.891 $ 64 81 145 $ 3.700 401 11 4.622 11.024 24 1 42 3 11 81 28 641 26 142 3 3.688 64 64 319 2.939 6.706 2.630 5.404 104 47 11 822 300 12.

368 21. as Restated Total Net Assets. EXPENSES.161 Corrections Canteen $ 22. and Operating Expenses Depreciation Claims and Benefits Other Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Taxes Grants Investment Income Other Nonoperating Revenues Interest Expense Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers Transfers Out Increase (Decrease) in Net Assets Total Net Assets.343) 7.609 2.623 (9.507 12.244 3.920 (3.471 14. and Benefits Utilities and Communications Professional Services Supplies. Materials.263) 58 10 4 55 172 8 307 (108) 12.415 746 3.928 228 .734 (7. 2010 $ $ 0 14. AND CHANGES IN NET ASSETS Nonmajor Enterprise Funds For the Fiscal Year Ended September 30.471 $ Motor Sports Hall of Fame 0 199 199 National Guard Canteen $ 11.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES. Wages.161 11.554 95 10.102 3. 2010 (Amounts in Thousands) Alabama Health Insurance Plan OPERATING REVENUES Charges for Goods and Services Premiums and Contributions Rents and Leases Total Operating Revenues OPERATING EXPENSES Salaries.061 22.901 19 3.759 $ 3 120 (91) 32 (76) (76) 2. 2009.061 360 6 21.507 9.533 $ 69 69 9. September 30. October 1.343) (3.254 66 10.593) 30 738 768 $ 25 5 30 776 (92) 684 3.

368 9 45.173 6.901 119 47 197 (91) 4.687) (2.852 264 21.133 229 .882 11.Other Nonmajor Enterprise Funds $ 0 422 422 $ Totals 33.749) 13.222 14.765 119 3 122 (42) (2) (44) 189 $ 145 $ 3.938 (9.471 621 48.314 331 190 8 36 20 1 586 (164) 484 200 372 22.549 2.

629 0 0 (9.559 $ 7.STATE OF ALABAMA COMBINING STATEMENT OF CASH FLOWS Nonmajor Enterprise Funds For the Fiscal Year Ended September 30.226) 10. September 30.072 69 (12.388 2.512) 9.162) (85) (94) 824 Corrections Canteen $ 22.785 7.595) (9.380 (455) (21. 2009 Cash Balance.655 2. as Reported on Balance Sheet $ 18.595) (92) (92) 0 101 (71) (91) (61) 0 (490) (490) 19 19 (3.655 230 .165 (10. October 1.170) (3. Construct.245) $ Motor Sports Hall of Fame 200 120 (77) (54) 189 National Guard Canteen $ 11. 2010 (Amounts in Thousands) Alabama Health Insurance Plan Cash Flows from Operating Activities: Receipts from Customer & User Charges Receipts from Interfund Services Receipts from Other Operating Activities Payments for Goods Held for Resale Payments for Other Goods & Services Payments for Employees Services Payments for Interfund Services Net Cash Provided by (Used In) Operating Activities Cash Flows from Noncapital Financing Activities: Transfers to Other Funds for Noncapital Financing Net Cash Provided By (Used In) Noncapital Financing Activities Cash Flows From Capital & Related Financing Activities: Receipts from Sale of Capital Assets & Insurance Proceeds Payments to Acquire.559 $ 3 (104) (101) 27 104 131 131 $ 0 34 781 815 815 $ 25 25 267 2. & Improve Capital Assets Principal Paid on Revenue Bonds & Other Capital Debt Interest Paid on Revenue Bonds & Other Capital Debt Net Cash Provided by (Used in) Capital and Related Financing Activities Cash Flows From Investing Activities Receipts from Interest & Dividends on Investments & Loans Purchase of Investments Net Cash Provided By (Used In) Investing Activities Net Increase (Decrease) In Cash and Cash Equivalents Cash Balance as Restated. 2010 Cash and Cash Equivalents.

231 .878) 14.129) (21.419 (2) (2) (9.404 11.282 11.404 Continued on next page.689) (9...537) (465) (5) 7.689) 0 101 (490) (71) (91) (551) 0 20 224 244 $ 244 $ 47 (104) (57) (2.238 8 309 (23.Other Nonmajor Enterprise Funds $ 421 8 120 (205) (317) (5) 22 $ Totals 52.

245) $ 1 4 172 120 297 189 $ 12 (19) 13 69 75 9.901 4.263) $ (108) $ 9.554 $ 746 (8) (96) 6 197 12 6 3.018 $ (3.629 $ 5 4 3 66 78 824 - (101) - - 232 .STATE OF ALABAMA COMBINING STATEMENT OF CASH FLOWS (Continued from Previous Page) Nonmajor Enterprise Funds For the Fiscal Year Ended September 30. Capital. Write-offs. 2010 (Amounts in Thousands) Alabama Health Insurance Plan Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Due from Other Funds Accounts Receivable Inventory Salaries Payable Due to Other Funds Accounts Payable Claims Payable Unearned Revenue Compensated Absences Other Post-employment Benefits Depreciation Nonoperating Revenues Total Adjustments Net Cash Provided (Used) by Operating Activities Noncash Investing. and Other Reductions to Capital Asset Motor Sports Hall of Fame National Guard Canteen Corrections Canteen $ (7. and Financing Activities Increase (Decrease): Disposals.

765 8 (8) 1 25 (1) 20 20 121 186 $ 22 $ 8 9 (15) (8) (95) 48 197 12 (1) 24 264 4.654 7.419 - (101) 233 .Other Nonmajor Enterprise Funds Totals $ (164) $ 2.211 4.

234 .

services. mail services. and building maintenance. motor pool. operation and maintenance of telecommunications and computer equipment. Telecommunications Fund Provides for the coordination and promotion of efficiency in the acquisition. Risk Management Accounts for resources used to provide insurance coverage for State buildings. and their contents. and networks used by state agencies. Building Renovation Finance Authority Accounts for the rental and maintenance of the buildings in the State Capitol Complex. 235 . systems. school buildings. Service Division Accounts for various services provided to State agencies including janitorial services. Other Internal Service Funds Account for other small internal service funds operated by the Finance and Military Departments. Correctional Industries Accounts for the manufacturing activities of the State's correctional facilities. Risk Management also insures State employees against work related injuries as well as employment-related liability claims.Internal Service Funds Internal Service Funds account for the operation of State organizations which provide goods and services to other State agencies on a cost-reimbursement basis.

416 8. 2010 (Amounts in Thousands) Telecommunications Fund ASSETS Current Assets Cash and Cash Equivalents Investments.669 412 564 49.084 3 424 71 1.047 779 5. Noncurrent Due From Component Unit.236 $ 3.047 282 761 336 18.629 2.167) 6.301 114.487 804 1.944 3.382 48.139 100.629 81.719 181.924 6. Noncurrent Other Noncurrent Assets Capital Assets.606 15.743 2 1.068 2.170 $ 4.937 (5.372 148 197 8.232 620 2.289 1.529 84.235 2 336 6.552 2. Net of Accumulated Depreciation Capital Assets Not Depreciated Total Noncurrent Assets TOTAL ASSETS LIABILITIES Current Liabilities Warrants Payable Salaries Payable Due to Other Funds Due to Component Units Accounts Payable Due to Other Governments Claims Payable Compensated Absences Securities Lending Obligation Notes and Capital Leases Payable Revenue Bonds Payable Total Current Liabilities Noncurrent Liabilities Claims Payable Compensated Absences Other Post-employment Benefits Notes and Capital Leases Payable Revenue Bonds Payable Other Long-term Liabilities Total Noncurent Liabilities Total Liabilities NET ASSETS Invested in Capital Assets.125 13 1.459 2.459 8.116 4.017 1.189 76.810 9.193 310 352 130 305 228 10.655 9.802 402 708 66.067 57.564 2.166 1.130 2.383 8.904 101 113 1 1.563 143 264 139 820 6.140 1.857 1.403 2.079 67.667 119.026 $ 10.282 94 292 1.260 24.852 12.142 2.404 139 326 2.887 $ 20.018 22 4.403 6.173 5.026 5.858 7 272 12 628 38 7 574 7.832 21. Short-term Due from Other Funds Due from Component Units Accounts Receivable Interest and Dividends Receivable Securities Lending Collateral Inventory Other Current Assets Total Current Assets Noncurrent Assets Investments.968 $ $ $ $ $ 236 .241 1.645 61.827 1.024 429 2.786 1.403 3.378 12.029 142 192 10.852 18. Net of Related Debt Restricted for: Capital Projects Unrestricted TOTAL NET ASSETS Service Division Correctional Industries Building Renovation Finance Authority Risk Management $ 7.160 3 197 1.085 14.249 8.475 62.613 192 12.555 85.283 3 574 22.STATE OF ALABAMA COMBINING STATEMENT OF NET ASSETS Internal Service Funds September 30.775 2.739 794 37. Long-term Due From Other Funds.312 162 5.

426 10.249 9.499 9.904 32 304 336 6.669 4.640 1.Other Internal Service Funds Totals $ 1.823 32 32 1.537 6.057 142 1.613 9 1.246 202 23 29 61 315 322 2.342 $ $ 237 .512 85.703 5.420 158.480 $ 47.499 326 7.173 1.286 1.234 171.017 66.267 57.548 30.881 157.367 328 7.423 316.655 32.390 586 2.419 61 1.312 794 44.176 48.079 779 126.484 439 422 861 1.827 15.684 41 10.924 143.629 144.

121 Risk Management $ 315 52.568 4.313 4. and Benefits Utilities and Communications Professional Services Supplies.142 $ 19 71 (126) (36) (5.127 (14) 9. AND CHANGES IN NET ASSETS Internal Service Funds For the Fiscal Year Ended September 30.584 3.630 10. 2009.632 2.251 794 1.446 (37) (592) 15.965) 3.216 16.968 238 .855 119. and Operating Expenses Interest Depreciation Claims and Benefits Other Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Grants Investment Income Other Nonoperating Revenues Interest Expense Other Nonoperating Expenses Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers Transfers In Transfers Out Increase (Decrease) in Net Assets Total Net Assets.639 3.522 435 3. 2010 (Amounts in Thousands) Telecommunications Fund OPERATING REVENUES Charges for Goods and Services Premiums and Contributions Rents and Leases Total Operating Revenues OPERATING EXPENSES Salaries.240 46.528 654 290 8.935 (60) (1.191 (561) 5.380 8. September 30.050 33 196 229 (3.363 16.630 Correctional Industries $ 11.622 8.660 20. 2010 $ $ 42.698) 1.469) 1.581 1.674 64 48. Wages.541 83 17.493 11.382 485 747 16.786 $ 5 103 (102) 6 (555) 15 (17) (557) 5.065 17.346 19.033 34 5.086 (4.304 71 278 7.598 4. EXPENSES.048 52.994 (27) 6.231 3.008 1. Materials.458 3.594) 10.661 $ Building Renovation Finance Authority $ 854 18. October 1.077 9.113 110.551 1.335 1.663 3.699 5.STATE OF ALABAMA COMBINING STATEMENT OF REVENUES.001) 4.937 $ 11 18 6 (19) 16 2. as Restated Total Net Assets.200 Service Division 10.121 11.171 120 5.529 14.173 $ 10 5.661 42.359 (3.

120 11.768 52.187 3.993 3.763 157.346 139.674 6.342 239 .390 (164) 12.528 (341) 33.913 142.051 412 (102) (145) 5.300 2.911 31 368 49 16 153 3.048 18.716 40.844 17.947) 6 2 8 (333) (9) (342) 678 $ 336 $ 84 5.231 5.109 (2.Other Internal Service Funds $ 3.353 10.162 2.618 22.579 144.187 $ Totals 68.

152) (9.859 20. Construct.929 (53) 1. September 30.635) (4.564 $ 18 18 3.373 6 (7. Penalties.798) (1. October 1.889) (31.241 $ 3.808 2 0 32 3.091 1. 2010 (Amounts in Thousands) Telecommunications Fund Cash Flows from Operating Activities: Receipts from Customer & User Charges $ Receipts from Interfund Services Receipts from Other Operating Activities Payments for Goods Held for Resale Payments for Other Goods & Services Payments for Employees Services Payments for Taxes.132) 5.166 $ 176. & Similar Fees Payments for Interfund Services Payments for Other Operating Activities Payments for Claims Net Cash Provided by (Used In) Operating Activities Cash Flows from Noncapital Financing Activities: Transfers from Other Funds for Noncapital Financing Transfers to Other Funds for Noncapital Financing Net Cash Provided By (Used In) Noncapital Financing Activities Cash Flows From Capital & Related Financing Activities: Proceeds from Revenue Bonds & Other Capital Debt Receipts from Sale of Capital Assets & Insurance Proceeds Payments to Acquire.083 (27) 4.723) (3.207 25.496) (1) (562) (186) (4. & Improve Capital Assets Principal Paid on Revenue Bonds & Other Capital Debt Interest Paid on Revenue Bonds & Other Capital Debt Net Cash Provided by (Used in) Capital and Related Financing Activities Cash Flows From Investing Activities Receipts from Sales & Maturities of Investments Receipts from Interest & Dividends on Investments & Loans Purchase of Investments Net Cash Provided By (Used In) Investing Activities Net Increase (Decrease) In Cash and Cash Equivalents Cash Balance as Restated.STATE OF ALABAMA COMBINING STATEMENT OF CASH FLOWS Internal Service Funds For the Fiscal Year Ended September 30.745) 0 (1.137 7.125 2 (284) (6. 2010 Add: Warrants Payable Cash and Cash Equivalents.813 (102) (26.767 161 (6.510) $ Building Renovation Finance Authority $ 18 18.703 2.061) (32.547) (167) (1.056 (14) (14) 194 (889) (695) 94 (7) (251) (101) (265) 24 (245) (221) 29.334 3.745) (2.693 4.805 315 (25.870 (214. 2009 Cash Balance.757 310 10.905) (51) (20.241 $ 0 (1.561 3 4.611) (2.759) (5.876 (8) (8) 3.108 8.669 4. Fines.199) (448) 305 Correctional Industries $ 2.729) 42.424 Service Division 1.482) (537) (21) 8.300 16.580) Risk Management $ 31.291) (1.209 3.486 9.067 $ 7. as Reported on Balance Sheet 1.985) (15.927) (1.482) (3.630) 5.198) (2.159 7 20.329) 9.063) (1.810 240 .004 10 (6.706 (37) 3.027 9.390 41.634) (35.

125 315 (4.149) 0 (206) 1.570 1 (26) (25) 29.752 106.009 46.Other Internal Service Funds $ 2 3.443) (4.468 4..267 Continued on next page..043) (32.439) (168) (5.419 $ 176.872) (20.703 2.558 (9) (9) 9.634) (35.888 (214.196) (7.718 (148) 9.253) (13.307 (13.625 1.140) (31.630) 6.064) 79. 241 .185 2 (214) (2.963) (62.419 $ 1.788) (356) (3) (172) $ Totals 35.454) (32.945 322 47.

008 18 (19) 5.091) 89 203 (210) (524) (1.091 Noncash Investing. Capital.188 (2.506) 1 589 1. 2010 (Amounts in Thousands) Telecommunications Fund Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Due from Other Funds Accounts Receivable Inventory Other Assets Capital Assets Salaries Payable Due to Other Funds Accounts Payable Due to Other Governments Claims Payable Amounts Held Pending Distribution Unearned Revenue Funds Held in Escrow Compensated Absences Other Post-employment Benefits Investment Income Operating Interest Expense Depreciation Nonoperating Revenues Nonoperating Expenses Total Adjustments Net Cash Provided (Used) by Operating Activities $ Building Renovation Finance Authority Service Division Correctional Industries Risk Management (3. and Financing Activities Increase (Decrease): Transfers and Donations of Capital Assets Capital Assets Acquired by Capital Lease or Other Debt Disposals.580) $ (405) 9 116 (24) (13) (235) (14) 184 3.424 $ 628 503 (296) 42 298 (176) (126) (381) 192 34 157 56 9 83 18 1.605) - 242 .121) (740) 244 (216) (1.198) 211 (167) 349 (19) 527 1.050 (735) 747 (23) (1.STATE OF ALABAMA COMBINING STATEMENT OF CASH FLOWS (Continued from Previous Page) Internal Service Funds For the Fiscal Year Ended September 30.965) $ 2.343 (175) (6) 90 (1. and Other Reductions to Capital Asset Revenue Bond Amortizations and Other Debt Adjustments Interest Accruals and Other Adjustments Unrealized Gains (Losses) in Investment Fair Value Transfers In (Out) 4.568 $ 4. Write-offs.698) $ (561) $ (4.231 3.041 5.779 (3.458 38 1.510) $ (262) (38) 499 4 98 (339) 17 79 794 15 (1) 866 305 $ (523) 676 (58) (192) (98) (183) 257 485 21 385 (4.856 8.

306 56 3.248) (1.001) (613) (167) (126) 349 (381) 192 (144) 1.906 1.175 (296) 116 (66) (1.343 (5.221 1.297) 1.558 1 (20) - 5.091) (524) (1.844 117 (20) 9.Other Internal Service Funds Totals $ (341) $ (2.605) (656) 243 .947) (7) 6 24 21 102 16 7 169 $ (172) $ (1.505 6.240 5.

244 .

Pension and Other Employee Benefit Trust Funds
Pension and Other Employee Benefit Trust Funds account for the resources held in trust for members and beneficiaries of retirement plans and other employee benefit plans administered by the State. Employees' Retirement System Accounts for the accumulation of resources for pension benefit payments to State employees, State police, and employees of other eligible governmental organizations such as cities and counties within the State. Teachers' Retirement System Accounts for the accumulation of resources for pension benefit payments to employees of state-supported educational institutions. Judicial Retirement Fund Accounts for the accumulation of resources for pension benefit payments to judges of the State's Supreme Court, Court of Civil Appeals, Court of Criminal Appeals, and Circuit Court. Peace Officers' Annuity and Benefits Provides pension benefits to State and local peace officers. State Port Authority Hourly Plan Is a retirement fund for certain hourly employees of the Alabama State Port Authority who are not members of the State Employees' Retirement System. State Port Authority Railway Plan Is a retirement fund for certain employees of the Alabama State Port Authority who are not members of the State Employees' Retirement System. Clerks and Registers Supernumerary Is a pension plan for certain employees of the court system. Flexible Employees' Benefits Board Provides a number of benefit programs to State employees such as a cafeteria plan, health care reimbursement accounts, and dependent care reimbursement accounts. Employee Savings Plans Accounts for resources contributed by public employees for deferred compensation plans and individual retirement accounts. Retired Education Employees' Health Care Trust Provides post-employment health insurance benefits for retired employees of school systems and institutions of higher education. Retired State Employees' Health Care Trust Provides post-employment health insurance benefits for retired State employees.

245

STATE OF ALABAMA COMBINING STATEMENT OF PLAN NET ASSETS Pension and Other Employee Benefit Trust Funds September 30, 2010
(Amounts in Thousands)
Employees' Retirement System ASSETS Cash and Cash Equivalents Investments U.S. Treasury Securities U.S. Agency Securities Mortgage Backed Securities Corporate Stocks Corporate Bonds Real Estate Commercial Paper International Stocks Mutual and Money Market Funds Receivables Employer Contributions Receivable Member Contributions Receivable Investment Sales Receivable Accounts Receivable Interest and Dividends Receivable Securities Lending Collateral Other Assets Capital Assets, Net of Accumulated Depreciation Capital Assets Not Depreciated TOTAL ASSETS LIABILITIES Warrants Payable Investment Purchases Payable Salaries Payable Due to Other Funds Accounts Payable Due to Other Governments Claims Payable Securities Lending Obligation Deferred Revenue Compensated Absences Other Post-employment Benefits TOTAL LIABILITIES $ 14,272 319,656 179,440 142,408 3,573,333 1,424,254 923,235 229,985 1,101,393 78,596 30,329 15,197 425,256 741 25,278 855,001 50,279 2,535 9,391,188 $ Teachers' Retirement System 22,919 696,921 382,678 316,296 7,426,861 2,923,052 1,893,380 347,431 2,488,588 138,374 64,509 25,796 923,111 1,219 54,920 1,943,162 100,855 5,085 19,755,157 $ Judicial Retirement Fund 1,782 15,791 9,984 6,562 106,307 35,713 2,686 2,999 33,219 5,254 369 114 17 1,094 29,439 251,330 Peace Officers' Annuity and Benefits $ 257 2,419 1,091 3,297 2,396 9,428 2 75 8 10 18,983 $ State Port Authority Hourly Plan 0 2,439 1,596 939 1,458 3,684 1,848 100 2,138 14,202

$

11,004 343,876 900 407 2 855,001 1,691 1,551 1,214,432

$

18,042 750,027 1,217 813 3 1,943,162 2,591 1,467 2,717,322

$

520 22 15 6 29,439 64 20 30,086

$

113 28 2 11 8 92 45 299

$

0 2,138 2,138

NET ASSETS Held in Trust for Pension and Other Employee Benefits 8,176,756 TOTAL NET ASSETS $ 8,176,756

17,037,835 $ 17,037,835

$

221,244 221,244

$

18,684 18,684

$

12,064 12,064

246

State Port Authority Railway Plan $ 0 143 93 55 85 216 108 6 125 831

Clerks and Registers Supernumerary $ 29 2,525 1,548 1,014 1 4,377 933 108 1,832 12,367 $

Flexible Employees' Benefits Board 1,098 223 47 1,368 $

Employee Savings Plans 956 274,581 137,135 109,212 197,923 445,676 195,690 48,566 11,319 258,613 1,679,671 $

Retired Education Employees' Health Care 0 59,930 35,191 23,493 305,705 80,532 114,326 101,970 46,923 57 11,396 3,093 54,194 3,231 840,041 $

Retired State Employees' Health Care Trust 0 9,937 10,104 3,278 40,119 19,670 12,157 1,526 2 2,157 694 58,753 158,397 $

Totals 41,313 1,384,342 758,860 606,554 11,651,792 4,939,570 2,819,301 890,431 3,737,327 331,556 95,207 41,109 1,348,441 15,738 96,687 3,203,312 3,231 151,144 7,620 32,123,535

$

0 125 125

$

29 1,832 1,861

$

0 2,626 47 205 2,878

$

955 20 258,613 259,588

$

0 78 35,383 54,194 89,655

$

0 14,316 58,753 2,158 75,227

$

30,663 1,094,023 2,160 2 3,863 5 49,699 3,203,312 2,158 4,438 3,288 4,393,611

$

706 706

$

10,506 10,506

$

(1,510) (1,510)

1,420,083 $ 1,420,083

$

750,386 750,386

$

83,170 83,170

27,729,924 $ 27,729,924

247

STATE OF ALABAMA COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS Pension and Other Employee Benefit Trust Funds For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Employees' Retirement System ADDITIONS Contributions: Plan members Employer Medicare Part D Retiree Drug Subsidy Total Contributions Investment Earnings Investment Interest and Dividends Net Increase (Decrease) in Fair Value of Investments Securities Lending Income Total Investment Earnings Less: Investment Expense Securities Lending Interest and Fees Net Investment Income Other Additions Licenses and Fees Miscellaneous Total Other Additions Total Additions DEDUCTIONS Benefit Payments and Refunds Administrative Expense Transfers Out Total Deductions Changes in Net Assets Net Assets Held in Trust for Pension and Other Employee Benefits, October 1, 2009, as Restated Net Assets Held in Trust for Pension and Other Employee Benefits, September 30, 2010 Teachers' Retirement System Judicial Retirement Fund Peace Officers' Annuity and Benefits State Port Authority Hourly Plan

$

194,977 377,974 572,951

$

319,770 776,415 1,096,185

$

2,566 10,815 13,381

$

660 81 741

$

0 1,569 1,569

268,708 427,365 5,427 701,500 2,588 2,384 696,528

560,023 886,997 12,072 1,459,092 5,423 5,283 1,448,386

6,551 15,287 164 22,002 78 21,924

479 1,004 1,483 42 1,441

541 506 9 1,056 6 1,050

2,165 2,165 1,271,644

1,825 1,825 2,546,396

0 35,305

3,193 171 3,364 5,546

0 2,619

759,521 13,705 773,226 498,418 7,678,338

1,611,286 17,294 1,628,580 917,816 16,120,019

24,759 288 25,047 10,258 210,986

4,385 420 1 4,806 740 17,944

905 905 1,714 10,350

$ 8,176,756

$ 17,037,835

$

221,244

$

18,684

$

12,064

248

State Port Authority Railway Plan

Clerks and Registers Supernumerary

Flexible Employees' Benefits Board

Employee Savings Plans

Retired Education Employees' Health Care

Retired State Employees' Health Care Trust

Totals

$

0 169 169

$

371 371

$

24,602 2,910 27,512

$

118,534 118,534

$

69,136 332,590 27,959 429,685

$

25,081 99,284 6,794 131,159

$

755,697 1,601,807 34,753 2,392,257

32 53 1 86 86

568 477 10 1,055 6 1,049

0 0

52,009 55,035 1,614 108,658 921 107,737

17,937 39,820 434 58,191 218 57,973

2,895 5,933 131 8,959 63 8,896

909,743 1,432,477 19,862 2,362,082 8,053 8,959 2,345,070

0 255

0 1,420

3 3 27,515

0 226,271

0 487,658

0 140,055

3,193 4,164 7,357 4,744,684

170 170 85 621

348 348 1,072 9,434

27,024 1,834 28,858 (1,343) (167)

78,105 78,105 148,166 1,271,917

406,218 1,059 407,277 80,381 670,005

136,089 736 136,825 3,230 79,940

3,048,810 35,336 1 3,084,147 1,660,537 26,069,387

$

706

$

10,506

$

(1,510)

$ 1,420,083

$

750,386

$

83,170

$ 27,729,924

249

250

Prepaid Affordable College Tuition Accounts for the operation of a prepaid college tuition plan for the benefit of individual citizens of Alabama. private organizations or other governments. Alabama College Education Savings Plan Accounts for the operation of an individual college tuition savings plan. 251 . Foundation for Local Schools Accounts for monies donated by the private sector which are invested and used for the benefit of specific local public schools. Local Education Endowments Accounts for the proceeds of several endowments donated by private citizens for the benefit of specific local school systems.Private-Purpose Trust Funds Private-Purpose Trust Funds report trust arrangements where the principal and income benefit individuals.

402 $ 450.180.239 85.142.369 $ 1.335 202 68.368 29.061 682.567 21 356 2.STATE OF ALABAMA COMBINING STATEMENT OF FIDUCIARY NET ASSETS Private-Purpose Trust Funds September 30.981 2.296 1.563 7. 2010 (Amounts in Thousands) Prepaid Affordable College Tuition ASSETS Cash and Cash Equivalents Investments Time Deposits U.360 28.943 83.578 132 157.125 $ Totals 5.567 21 356 2.972 156.613 450.190 28.S.771 302 20 34 35.444 8. Agency Securities State and Local Government Securities Mortgage Backed Securities Corporate Stocks Corporate Bonds Real Estate Commercial Paper International Stocks International Bonds Mutual and Money Market Funds Commingled Funds Receivables Due from Other Funds Accounts Receivable Interest and Dividends Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Salaries Payable Due to Other Funds Accounts Payable Due to Other Governments Securities Lending Obligation Compensated Absences Other Post-employment Benefits TOTAL LIABILITIES NET ASSETS Held in Trust for Beneficiaries TOTAL NET ASSETS $ 3. Treasury Securities U.496 682.496 $ 8.444 $ 816 816 1.079 840 540 28.107 $ Foundation for Local Schools 0 195 120 75 355 62 9 309 1.677 267 999 50 51 38.561 2 855 3 9 869 663 663 309 309 302 22 34 36.015 286 3 683.462 79.613 $ 682.174 Alabama College Education Savings Plan $ 1.912 999 1.742 202 68.190 710.364 840 540 302 1 663 9.822 267 24 50 42 36.184 7.616 24 487.358 29.365 Local Education Endowments $ 545 132 815 287 322 3.065 75.369 252 .S.981 2.142.

373 11.403 1.767 51 233.720 11 11 1.611) 489.706 77.487 259 259 55.236 $ 222.290 0 84 732 320. 2009.142.224 228.834 92.496 $ 8.852 $ 0 0 $ 0 0 $ 231.941 44.444 $ 816 $ 1.540 53 104.STATE OF ALABAMA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS Private-Purpose Trust Funds For the Fiscal Year Ended September 30.383 7.431 7.555 55. 2010 (Amounts in Thousands) Prepaid Affordable College Tuition ADDITIONS Contributions: Plan members Total Contributions Investment Earnings Investment Interest and Dividends Net Increase (Decrease) in Fair Value of Investments Securities Lending Income Total Investment Earnings Less: Securities Lending Interest and Fees Net Investment Income Other Additions Miscellaneous Total Other Additions Total Additions DEDUCTIONS Benefit Payments and Refunds Administrative Expense Transfers Out Total Deductions Changes in Net Assets Net Assets Held in Trust for Beneficiaries.865 183 974 12 1. 2010 Alabama College Education Savings Plan Local Education Endowments Foundation for Local Schools Totals $ 8.165 44 40 1 85 1 84 26.098 154 47.421 48 47. October 1. as Restated Net Assets Held in Trust for Beneficiaries.966 $ 450.249 2.369 253 .852 222.134.613 $ 682.236 8.088 231. September 30.997 51 328.123 5.868 0 278.717 0 1.169 32.230 94.169 4 1.154 7.667 167 104.776 637.088 15.165 0 84 259 259 335.865 55.310 44.479 (38.

254 .

and remittance of resources to individuals. organizations or other governments. 255 . and numerous other amounts held for individuals and organizations outside of State government. Other Agency Funds Are aggregated for financial reporting purposes and represent amounts held for child support payments. State Clearing Accounts Accounts for the collection and distribution of State taxes and licenses as well as amounts collected and held by courts for individuals. cash bonds. temporary investment. These taxes do not represent future revenues of the State. Agency funds typically involve the receipt.Agency Funds Agency Funds report assets held by the State in a purely custodial capacity (assets equal liabilities). Payroll Accounts for amounts withheld from employees that are not yet distributed to outside organizations or governments. Taxes Collected for Local Governments Accounts for local taxes which are collected by the State as a service for local governments.

2010 (Amounts in Thousands) State Clearing Accounts ASSETS Cash and Cash Equivalents Investments Due from Other Funds Accounts Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Accounts Payable Due to Other Governments Securities Lending Obligation Amounts Held in Custody for Others TOTAL LIABILITIES $ 137.434 140 833 3.082 618 147 1.374 150 3.620 $ $ 2.STATE OF ALABAMA COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES Agency Funds September 30.474 138.494 Taxes Collected for Local Governments $ 3.591 $ $ $ $ $ $ $ 16.112 2.326 100.736 62.117 245.023 62.257 7 3 140 3.620 $ Other Agency Funds $ 36.583 121 17 1.204 245.897 100.986 1 6 501 138.070 $ $ 22.591 256 .407 $ $ 3.539 619 4.407 Totals 180.326 94.494 $ $ 96 3.070 $ Payroll 3.583 129 26 2.470 150 3.927 1 591 501 120.117 216.

257 .

822.673.257 7 3 140 3.348 $ $ 258.115 9.494 $ $ 3.248 3.567 $ $ 802.215.918 236 258.494 $ $ 31.787.251 $ $ 137.434 140 833 3. 2010 $ $ 173.620 $ $ 2.323 140.465 4.437 4.251.474 138.746 4.769 31.323 175.348 $ $ 252.248 521.825.915 793 570.907 435.001 587.316 521.045 230.276 150 258.435.323 29.848 122 202 2.436.842 $ $ 787.940.842 $ $ 16.447 150 1.803 31.620 $ $ 38 1.115 8.438 792 4 570.440 175.441 122 1 140 2.247 9.822.112 236 3.174 290 783.552 290 783.812 202 861 2.903 $ $ 16.436.503 202 701.986 1 6 501 138.407 258 .529 30.927 1 591 501 120. 2009 STATE CLEARING ACCOUNTS ASSETS Cash and Cash Equivalents Due from Other Funds Accounts Receivable Taxes Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Due to Other Funds Accounts Payable Tax Refunds Payable Due to Other Governments Securities Lending Obligation Amounts Held Pending Distribution Deferred Revenue Amounts Held in Custody for Others TOTAL LIABILITIES TAXES COLLECTED FOR LOCAL GOVTS ASSETS Cash and Cash Equivalents Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Accounts Payable Due to Other Governments Securities Lending Obligation Amounts Held Pending Distribution Amounts Held in Custody for Others TOTAL LIABILITIES PAYROLL ASSETS Cash and Cash Equivalents Due from Other Funds Accounts Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Due to Other Funds Accounts Payable Securities Lending Obligation Amounts Held Pending Distribution Amounts Held in Custody for Others TOTAL LIABILITIES Additions Reductions Balance September 30.875 $ $ 1.712 2.001 587.694 501 16.013 $ $ 2.046 230.694 2.545 $ $ 1.826 236 1.436.563 353.316 1.509 10 2.367 1.357 501 29.470 150 3.478 2.374 150 3.664 7 2 202 2.STATE OF ALABAMA COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES Agency Funds For the Fiscal Year Ended September 30.172 $ $ 3.323 16.013.488 $ $ 96 3.710.899 236 1.003 353.875 $ $ 2.600 258.013.760 $ $ 252.907 455.941.407 $ $ 1.189 9. 2010 (Amounts in Thousands) Balance October 1.503 140 701.915 $ $ 16.154 $ $ 3.704 $ $ 2.426 $ $ 257.746 4.529 30.600 256.

624 $ $ 736.150 86.829 840.972 4.907 1.326 344.584 970 242 570.150 92.897 100.662 230.150 739.869.996 $ $ 180.694 4.911 228.204 245.070 $ $ 3.302.073 37.829 840.998 10 17.889 692 3.898 $ $ 19.743 39 16 2. 2009 OTHER AGENCY FUNDS ASSETS Cash and Cash Equivalents Investments Due from Other Funds Accounts Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Due to Other Funds Accounts Payable Due to Other Governments Securities Lending Obligation Amounts Held Pending Distribution Amounts Held in Custody for Others TOTAL LIABILITIES Additions Reductions Balance September 30.326 94.391 2.592 4.743 46 28 4.117 245.591 259 .332 353.647.ALL AGENCY FUNDS ASSETS Cash and Cash Equivalents Investments Due from Other Funds Accounts Receivable Taxes Receivable Securities Lending Collateral TOTAL ASSETS LIABILITIES Warrants Payable Due to Other Funds Accounts Payable Tax Refunds Payable Due to Other Governments Securities Lending Obligation Amounts Held Pending Distribution Deferred Revenue Amounts Held in Custody for Others TOTAL LIABILITIES $ $ 212.865 $ $ 734.735 230.672 692 54 2.326 746.672 37.911 20.909 386.432 1.869.605 274.066 4.970 $ $ 322.Balance October 1.115 267.679.117 30.513 782 1.909 395.736 62.370 8.056 92.258.424 1. 2010 $ $ 33.229.907 1.081.624 $ $ 321.112 2.524 $ $ 3.082 618 147 1.584 56 238 2.694 2.431.074.326 100.539 619 4.591 1.738 8.588 10 17.982 353.418.070 TOTALS .319.424 138 239 1.940 $ $ 22.911 274.911 30.689 $ $ 19.023 62.587 689 2.689 $ $ 3.419 $ $ 36.961 56.583 129 26 2.317.591 $ $ 36.972 4.842 $ $ 3.583 121 17 1.117 216.115 267.595 2.676 56.117 20.150 344.290.053 240 570.586 2.

260 .

which established the Federal Guaranteed Student Loan Program. 261 . Space Science Exhibit Commission Operates the U. which are reported in more detail later in this report. Jacksonville State University Reports the operations and balances of the University. Historical Commission Preserves and maintains buildings. and sites of historical significance. Troy University Reports the operations and balances of the University. Twenty-first Century Authority Finances economic development and industrial recruitment incentive grants primarily with debt secured by tobacco settlement revenues. Alabama Agricultural and Mechanical University Reports the operations and balances of the University. Other Nonmajor Component Units Combined totals of other nonmajor component units.S. Incentives Finance Authority Issues bonded debt for the purpose of making incentive grants to major industries locating or expanding within the State. Drinking Water Finance Authority Issues revolving loan bonds and lends the bond proceeds to local governments at below market rates for the construction of drinking water treatment and distribution facilities. Space and Rocket Center and the U.Nonmajor Component Units Higher Education Loan Corporation Provides Alabama lending institutions with a secondary market for student loans made under the Higher Education Act. objects. University of North Alabama Reports the operations and balances of the University.S. Alabama State University Reports the operations and balances of the University. Space Camp.

815 166.170 39.239 17.898 226.STATE OF ALABAMA COMBINING STATEMENT OF NET ASSETS Nonmajor Component Units September 30.666 8.663 $ Alabama State University 109.072 112 140 949 75.276 2.593 (7. Net of Related Debt Restricted for: Permanent .827 4.576 5.966 9 4.Non-expendable Debt Service Other Purposes Unrestricted TOTAL NET ASSETS $ 12.911 391.589 6.900 $ Drinking Water Finance Authority 45.221 67.130 Alabama Agricultural and Mechanical University $ 7. Net of Accumulated Depreciation Capital Assets Not Depreciated TOTAL ASSETS LIABILITIES Warrants Payable Salaries Payable Due to Primary Government Due to Component Units Accounts Payable Interest Payable Due to Other Governments Securities Lending Obligation Unearned Revenue Amounts Held in Custody for Others Noncurrent Liabilities: Due Within One Year Due In More Than One Year TOTAL LIABILITIES NET ASSETS Invested in Capital Assets.951 139.497 44.237 240 3.878 108 1.478 13.646 54.321 351.829 3.012 23.177 201 9.204 63.792 1.364 89.954 23.377 201 6.764 500 239.198 34.267 935 83.877 20.180 192.555 60.043 26.657 58.361 5.731 2.048 8 2.Expendable Permanent .148 201.383 7.459 Jacksonville State University $ 55.158 21 1.181 190.301 1 1.100 76.004 113.289 3.996 21.599 148.144 29.381 15.521 1.206 82.938 1.773 1.208 30. and Loans Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets Capital Assets.745 10.538 25.664 3.120 116. 2010 (Amounts in Thousands) Higher Education Loan Corporation ASSETS Cash and Cash Equivalents Investments Due from Primary Government Accounts Receivable Due from Other Governments Interest and Dividends Receivable Mortgages.096 13.075 165.996 109.286 10.652 148.052 14.652 62.941 36.862 202.611 96.790 8.366 5.496 $ $ $ $ $ 262 .011 13.755 10.480 55.122 64.754) 79. Notes.216 2.

078 119.554 667.682 118.928 15.363 108.635 4.876 13.930 164.261 237.410 566.433 24.472 12 6.974 6 689 8.104 $ Totals 627.730 473.296 108.656 40.198 10 2.182 224.342 28.360 285.300 85.589 $ Troy University 196.205 109.745 15.687 58.511 177 500 74.986 16.917 $ Space Science Exhibit Commission 88 1.996 120.043 93.743 3.205.658 871 224.018 $ $ $ $ $ $ $ 263 .131 45.600 154.415 4.242 35.807 7.257 31.844 108.139 21.474 401 3.983 591 6 4.494 8.039 38.216 1.295 905 1.511 1.637 25.698 60.218 790 47.515.935 137.496 42.174 307.872 2.872 6.746 39.277 43.000 12 588 137.247 89 2.645 $ 1.805 2.812 310.502 6.417 74.593 241.542 8.310.122 596 50.262 5.358 109.718 (101.224 146.486 10.130 736 5.891 1 57.642 147.159 2.587 1 11.819 29.598 $ Incentives Finance Authority 40.522 919.225 $ Other Nonmajor Component Units 79.834 254 345 146 347 38 1.783 370 18.598 432 12.649 4.341 17 2.625 105.582 6.811) 588 18.256 18.641 298 216 486 494 7.795 1 77 1.878 2.306 23.568 38.235 4.499 339 1.615 8.697 4.522 1.387 $ Twenty-first Century Authority 31.529) (92.236 15.864 532 1.976 188.University of North Alabama $ 40.143 38.666 143.994) 35.127 21.345 29 889 59.052 17.438 4.566 153.381 32 133 1.370 2.342 3.613 7.668 (6.840 82.976 93.783 14.816 90.224 8.261 117 795 494 23.937 290.251 $ Historical Commission 8.694 287 4.749 2.103 113.201 89.

STATE OF ALABAMA COMBINING STATEMENT OF ACTIVITIES Nonmajor Component Units For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
Higher Education Loan Corporation $ 8,490 Drinking Water Finance Authority $ 16,047 Alabama Agricultural and Alabama Mechanical State University University $ 138,955 $ 137,885 Jacksonville State University $ 114,806

Expenses Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues Net (Expense) Revenue

1,338 1,338 (7,152)

9,059 14,381 23,440 7,393

46,631 52,644 99,275 (39,680)

55,264 44,914 6,281 106,459 (31,426)

53,231 27,280 80,511 (34,295)

General Revenues: Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Contributions to Permanent Funds and Endowments Payments from State of Alabama Total General Revenues, Special Items, and Transfers Change in Net Assets Net Assets, October 1, 2009, as Restated Net Assets, September 30, 2010

0 (7,152) 14,751 7,599

4,052 1,647 5,699 13,092 135,560 148,652

214 1,683 39,604 41,501 1,821 77,790 79,611

6,775 42,438 49,213 17,787 172,383 190,170

5,213 7 39,371 44,591 10,296 99,200 109,496

$

$

$

$

$

264

University of North Alabama $ 86,492

Troy University $ 258,853

Space Science Exhibit Commission $ 28,397

Historical Commission $ 7,890

Incentives Finance Authority $ 9,903

Twenty-first Century Authority $ 96,209

Other Nonmajor Component Units $ 232,204

Totals $ 1,136,131

42,279 18,168 4,285 64,732 (21,760)

165,253 63,954 8,284 237,491 (21,362)

24,980 29 2,983 27,992 (405)

1,724 2,169 295 4,188 (3,702)

0 (9,903)

0 (96,209)

102,502 46,484 1,292 150,278 (81,926)

502,261 270,023 23,420 795,704 (340,427)

1,940 118 4 26,596 28,658 6,898 102,078 108,976

3,395 1,498 48,711 53,604 32,242 252,797 285,039

1 1,436 1,437 1,032 34,385 35,417

915 6 4,513 5,434 1,732 87,883 89,615

131 20,851 20,982 11,079 (103,890) (92,811)

98 96,446 96,544 335 18,509 18,844

1 4,962 508 92,595 98,066 16,140 208,270 224,410

1 27,696 5,467 4 412,561 445,729 105,302 1,099,716 $ 1,205,018

$

$

$

$

$

$

$

265

STATE OF ALABAMA COMBINING STATEMENT OF NET ASSETS Other Nonmajor Component Units September 30, 2010
(Amounts in Thousands)
U.S.S. Alabama Battleship Commission $ 1,350 966 1 208 77 10,209 255 13,066 Historic Ironworks Commission $ 328 29 2,549 943 3,849 $ University of West Alabama 20,585 3,310 6,355 931 759 13,518 493 45,951 $ University of Montevallo 23,151 35,444 5,986 459 1,438 3,206 42,473 1,155 113,312

Supercomputer Authority ASSETS Cash and Cash Equivalents Investments Due from Primary Government Accounts Receivable Due from Other Governments Interest and Dividends Receivable Mortgages, Notes, and Loans Receivable Securities Lending Collateral Inventory Restricted Assets Other Assets Capital Assets, Net of Accumulated Depreciation Capital Assets Not Depreciated TOTAL ASSETS LIABILITIES Warrants Payable Salaries Payable Due to Primary Government Due to Component Units Accounts Payable Interest Payable Due to Other Governments Securities Lending Obligation Unearned Revenue Amounts Held in Custody for Others Noncurrent Liabilities: Due Within One Year Due In More Than One Year TOTAL LIABILITIES NET ASSETS Invested in Capital Assets, Net of Related Debt Restricted for: Permanent - Expendable Permanent - Non-expendable Unrestricted TOTAL NET ASSETS $ 6,639 18 286 105 2,639 174 9,861

4 519 21 286 272 1,102

251 541 399 1,191

12 43 47 705 807

894 53 8,123 31 195 3,681 12,977

3,864 497 9,162 380 903 21,461 36,267

2,813 5,946 8,759

10,464 1,411 11,875

3,063 (21) 3,042

13,012 654 19,308 32,974

22,687 11,122 13,668 29,568 77,045

$

$

$

$

$

266

Alabama Institute for the Deaf and Blind $ 10,938 14,831 4,755 216 27 6,183 204 28,907 3,163 69,224

Marine Environmental Sciences Consortium $ 5,508 1,544 140 7,736 4,795 19,723 $

Red Mountain Recreation Commission 1,073 630 7 21 14,035 15,766 $

State Industrial Development Authority 3,968 171 4,139 $

Revolving Loan Fund Authority 0 0

Crime Victims Compensation Commission $ 4,028 3,602 2 24 1,258 8,914

Miscellaneous Component Units $ 2,119 350 298 13 31 327 161 3,299 $

Totals 79,687 58,783 370 18,641 298 216 486 494 7,522 1,438 4,358 109,637 25,174 307,104

5,191 602 202 1,061 2,084 9,140

419 5,243 121 46 919 6,748

40 761 801

32 59 7 139 171 500 135 1,043

57 560 7,770 8,387

121 1,333 1 21 24 1,675 470 3,645

250 138 13 2 183 586

32 133 1,587 1 11,261 117 795 494 23,130 736 5,568 38,840 82,694

29,376 1,839 2,978 25,891 60,084

12,439 91 445 12,975

13,276 1,689 14,965

3,096 3,096

(8,387) (8,387)

1,258 4,011 5,269

488 2,225 2,713

108,876 13,052 17,300 85,182 224,410

$

$

$

$

$

$

$

$

267

STATE OF ALABAMA COMBINING STATEMENT OF ACTIVITIES Other Nonmajor Component Units For the Fiscal Year Ended September 30, 2010
(Amounts in Thousands)
U.S.S. Alabama Battleship Commission $ 4,090 Historic Ironworks Commission $ 1,665 University of West Alabama $ 55,342 University of Montevallo $ 53,690

Expenses Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues Net (Expense) Revenue

Supercomputer Authority $ 9,031

2,882 2 2,884 (6,147)

3,559 421 56 4,036 (54)

1,417 211 1,628 (37)

33,528 11,810 45,338 (10,004)

23,940 11,262 35,202 (18,488)

General Revenues: Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Payments from State of Alabama Total General Revenues, Special Items, and Transfers Change in Net Assets Net Assets, October 1, 2009, as Restated Net Assets, September 30, 2010

8,278 8,278 2,131 6,628 8,759

9 9 (45) 11,920 11,875

229 229 192 2,850 3,042

49 13,796 13,845 3,841 29,133 32,974

3,933 38 18,916 22,887 4,399 72,646 77,045

$

$

$

$

$

268

Alabama Institute for the Deaf and Blind $ 86,341

Marine Red Environmental Mountain Sciences Recreation Consortium Commission $ 11,544 $ 881

State Industrial Development Authority $ 1,813

Revolving Loan Fund Authority $ 699

Crime Victims Compensation Commission $ 5,306

Miscellaneous Component Units $ 1,802

$

Totals 232,204

30,172 11,513 1,236 42,921 (43,420)

2,540 7,008 9,548 (1,996)

1,252 1,252 371

74 74 (1,739)

0 (699)

4,288 2,770 7,058 1,752

102 235 337 (1,465)

102,502 46,484 1,292 150,278 (81,926)

639 431 42,178 43,248 (172) 60,256 60,084

1 3,499 3,500 1,504 11,471 12,975

14 14 385 14,580 14,965

4,107 4,107 2,368 728 3,096

1,217 1,217 518 (8,905) (8,387)

1 295 30 81 407 2,159 3,110 5,269

22 9 294 325 (1,140) 3,853 2,713

1 4,962 508 92,595 98,066 16,140 208,270 224,410

$

$

$

$

$

$

$

$

269

270 .

Supplemental Statements and Schedules Supplemental Statements and Schedules presents schedules and statements which bring together information spread throughout the statements. 271 . presents information in greater detail. or presents information that demonstrates legal compliance.

2010 (Amounts in Thousands) Amount Administrative Office of Courts Agriculture and Industries Attorney General Child Abuse Prevention Children's Affairs Commission On Higher Education Conservation and Natural Resources Corrections Council on the Arts Crime Victims Compensation Commission Criminal Justice Information Center District Attorneys Drinking Water Finance Authority Economic and Community Affairs Education Emergency Management Environmental Management Farmers' Market Authority Finance Finance Special Funds Forensic Sciences Forestry Commission Forever Wild Land Trust Geological Survey Governor's Office of Faith Based and Community Initiatives High School of Math and Science Historical Commission Human Resources Industrial Relations Labor Manufactured Housing Commission Medicaid Mental Health Military Office of Homeland Security Other .135 2.717 2.794 444 224 29.464 175 1.907 273 5.177.811 31.598 1.925 158.962 901 68.010 428.814 67.648.910 6.815 500 2.385 29.STATE OF ALABAMA SCHEDULE OF FEDERAL REVENUES BY AGENCY All Funds and Component Units.194 1.771 392 1.945 13. Excluding Amounts Received Directly by Higher Education For the Fiscal Year Ended September 30.525 91.737 1.589 1.Medicare Part D Other Agencies Pardons and Paroles Postsecondary Education Public Health Public Library Service Public Safety Public Service Commission Rehabilitation Services Revenue Secretary of State Senior Services Soil and Water Conservation Commission State Port Authority Surface Mining Commission Transportation University Stabilization Funds Veterans Affairs Water Pollution Control Authority Total Federal Revenues $ 794 3.192 21.456 854.580 $ 272 .546 10.837 2.240 1.840 1.555 1.766 2.280.861 28.065 928.754 120 14.189 10.379 342.314 1.402 712 376 27.390 1.683 158 252 3.782 9.976 53.678 17.968.346 2.

and required supplementary information says about the State's overall financial health. 273 .STATE OF ALABAMA STATISTICAL SECTION This part of the State of Alabama's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements.  State Government Employment by Function  Indicators of Demand or Level of Service  Indicators of Volume.    Major Revenue Base Revenue Rates Principal Revenue Payers Page 290 Debt Capacity These schedules present information to help the reader assess the affordability of the State's current levels of outstanding debt and the State's ability to issue additional debt in the future.     Net Assets by Component Changes in Net Assets Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Page 284 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the State's ability to generate its individual income tax and corporate income tax. Note: The number of years presented on each schedule varies according to available data. Usage and Nature of Capital Assets Sources: Unless otherwise noted. note disclosures. Financial Trends Page 274 These schedules contain trend information to help the reader understand how the State's financial performance has changed over time. the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.  Labor Force Statistics  Population/Per Capita Personal Income Statistics  Top Ten Employers in Alabama Operating Information Page 300 These schedules contain service and infrastructure data to help the reader understand how the information in the State's financial report relates to the services the State provides and the activities it performs.     Ratios of Outstanding Debt Ratios of General Bonded Debt Outstanding Debt Limitations Pledged Revenue Coverage Page 296 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the State's financial activities take place.

630 1.460 513.973.004.775 (315.210) 22.184.059 1.155 2006 $ 16.391.470 240.871 171.624.967 4.797 1.660 643.666 344.464 709.682.854 22.431 2007 $ 16.585 (820.715 (223.609.608 274 . Net of Related Debt Restricted Unrestricted Total Primary Government Net Assets $ 18.292 92.010.001 479.052.653 143.879. Net of Related Debt Restricted Unrestricted Total Business-type Activities Net Assets Primary government Invested in Capital Assets.815 17.533.552.756) 22.611.629 449.387.212 5.809 4.753 5.507.358 2008 $ 17.305 (555.495) 22.104.277.179 18.329 19.STATE OF ALABAMA NET ASSETS BY COMPONENT For the Last Nine Fiscal Years Ended September 30 (Amounts in Thousands) 2010 Governmental Activities Invested in Capital Assets.199.895 17.020. Net of Related Debt Restricted Unrestricted Total Governmental Activities Net Assets Business-type Activities Invested in Capital Assets.540.697) $ 23.495 6.208 (113.663 284.024 244.742 503.419.578.982.617 6.433.588.286 4.128.981 1.396 19.363.014 2009 $ 18.211 4.448.876) $ 23.157 6.212 881.077.857) 22.605 204.821 754.739.880.484 $ 23.356.360.681 102.537 1.853.302 $ 23.327 $ 24.315 867.101 4.238 (676.810.381 121.

352 607.692 1.629 630.575 4.490 4.235.820.887 425.774.902 3.888 2002 $ 3.864 5.580.427 18.458 3.105 299.765 7.280 352.015.385 $ 22.869.947 275 .667 470.712 508.838 514.124.270 973.2005 $ 15.559 185.137 $ 8.356.924.021.329.559.693 21.797.625 15.191.962 $ 20.452 433.245.496 459.340 4.156 489.158 15.588 365.358.316.813.825 4.153 367.200.790 1.172 19.597.803.250 351.662 2004 $ 15.145.700.372 1.615.847 204.524 330.196 117.991 310.144 5.235 16.738 2003 $ 14.241.004.791 3.594 182.697 $ 19.829.

763 1.714 219.095 131.001 45.566.465 6.422 160.460 179.096.669 573.718 812.482.745 6.609.568 10.639 2.972 1.143.500.384 1.612.435 72.005 $ 410.643.184 17.897 19.573 113.268.383 21.005.004 231.058 123.652 1.Interest and Other Charges Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Program Revenues Business-type Activities Unemployment Compensation State Port Authority Alabama College System Alcoholic Beverage Control Board Public Education Employees Health Insurance Operating Grants and Contributions Capital Grants and Contributions Nonmajor Proprietary Funds Total Business-type Activities Program Revenues Total Primary Government Program Revenues $ 2009 2008 2007 2006 $ 229.195 249.167.286 $ 10.609 18.086 103.048 927.874.374 $ 228.839 250.088 157.572 108.004 186.489 464.497.020.170 6.248 7.312 45.138 1.050.647 1.447 178.680.745 198.768.486 9.252 199.481 9.426 166.678.122 42.364.934 801.Interest and Other Charges Total Governmental Activities Expenses Business-type Activities Unemployment Compensation State Port Authority Alabama College System Alcoholic Beverage Control Board Public Education Employees Health Insurance Nonmajor Proprietary Funds Total Business-type Activities Expenses Total Primary Government Expenses Program Revenues Governmental Activities Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Debt Service .235.667 330.075 9.253 18.039 253.717 47.429 277.662 19.155 411.019 1.955 1.406 53.939 683.559 252.722 180.088 1.651 $ 335.667 45.906 132.067.248 997.213 1.549 15.068 127.564 $ 306.949 666.011 1.618 215.670.672 15.284.100 $ 264.377 131.505.122 230.323.311 6.318 227.025 146.192 829.574 6.753.607 92.147 120.101.265 305.STATE OF ALABAMA CHANGES IN NET ASSETS For the Last Nine Fiscal Years Ended September 30 (Amounts in Thousands) 2010 Expenses Governmental Activities Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Debt Service .448 115.148.654 48.020 19.140 9.197.413 49.253 2.533 6.390 1.370 45.419 719.134 254.235 152.768.312 149.839.453 57.977.911 7.621 5.622 231.666 1.221.270.121 194.067.947 1.053 52.555.131 164.443 11.041 8.558 239.434.458 565.261 1.951 1.905 208.120.091 1.548 1.988 145.616.686 1.168 1.671 1.440 337.737 43.451 51.416 231.551 897.295 276 .447 89.929 6.799 1.393.808 16.771.389 47.257.677 252.361.618.481 155.920 259.339 6.099 874.134 42.950 5.081 13.421 12.327 5.947 $ 215.867.414 4.176.095.902 983.714 745.200 812.069.528 221.111 9.504 2.094 1.025.553.780 127.008 12.376 925.809 48.688 5.260.316.373 6.339 13.892 $ 11.764.895 90.112.561 6.391 17.852 270.998 145.313 1.590 230.339 2.014.902 8.127 187.134.614.837 31.598 5.526 1.829 18.767.823.149 7.924 428.832 48.671 248.928 819.709 204.931 49.556 232.347 249.032.385.070 54.627.325 192.587 47.774 62.146.699.

734.805.491 170.121 133.783 111.281 174.311 5.106.682 15.509 460.015 184.871 66.841 4.052 14.269 173.204 10.427.224.504 165.637 641.591 155.680 5.352 52.278 47.384 74.425 12.314 565.673 7.398 5.479 154.599 $ 9.827 114.353.550 581.449 4.122 7.240 308.341 1.871 7.679 627.398 Continued on next page.755.647 72.811 4.470 $ 191.115 3.295 1.385.137 85.883.786 198.988 545.314 1.713 1.153 436.941 118.603 726.763 856.493 13.022 146.235.218 7.2005 2004 2003 2002 $ 185.783.431 43.256 168.623 4.278 177.793 167.201 21.017 4.952 60.877 114.105 15.438 692.922.990 1.839 8.902 673.150 42.425.868 1.604 1.511.050.135 $ 59.315 82.607.199 1.606.269.076.358 $ 239.194 202.246 $ 63.900 151.838 1.726 802.546 297.240.030 5.410.823 776.031.332 8.229 77.731 882.245 94.749 137.088.538 12.529.959 269.846 184.826 410.548.104 772.935 770.858.467 324.203.758 627.391 736.610 162.825 59.854 9.003 667.977 8.365.894 4.858 6.669 144.133 66.444.420 101..588 1.559 2.869 64. 277 .228 8.425 593.160 746.124 650.426 9.185 176.791 43.454.141 183.776 167.714 2.083 13.076.190 $ 263.550 $ 66.960 109.667 22.312.833.182 600.066 307.302 1.315.724 87.059.047 450 6.984 646.461.870 142.232 404.281 74.582 121.662 251.203.238 14.257 1.482 717..417 172.641.677 9.853 369.584.832 123.059 142.678.746 4.580 15.801 198.981 167.472 184.111 206.868 192.646 265.127.412 12.032 4.564 127.259 95.496.894 593.094 324.072 298.

274 71 357.220 278 .452 3.798 9.561 102 (9.264 621.172.973.079.314 34.916 147.110.506) 462.651 152.785.518.314) 8.846.016 785 245.108.196 $ 1.912.056 10.209) 8.700 513.147) 335.311 40.257 88 444.724) 70.297) $ 2007 (8.964 10.532 $ 533.419.314 502.027 278.250 (321.246 551.476 8.726.866 314.811 667.419) $ 2009 (7.172 12.251) 786.854 2.320 199.977.209 432.957 (379.563) (431.070 9.305 (444.181 136.161 156.912 34.718 3.468.323 315.932 116.940 3.261.836 (141.468 (799.312) 2.831 40.079.582.796 9.668) (6.002 163.839 2.088.606.773 2.439.018 569.887 697.475.318.041 9.406.973.726 320.473 275.827 (366.150 350.751 284.446.369 656.349) $ 2008 (8.206 3.900 1.834 2.098 136.534) (8.210 684.512.125 143.202 9.056 122 321.592 140.243 314.406 2.256) $ 504.437 263.656 (71.139 301.108.421 131 379.139 786.873) $ (869.302) (7.734) (9.922) (316.255 550.335 155.949.572 11.724 (335.930 13.573 292.577 3.770) (8.141 267.555.558 2.623) 7.117) (422.STATE OF ALABAMA CHANGES IN NET ASSETS (Continued from Previous Page) For the Last Nine Fiscal Years Ended September 30 (Amounts in Thousands) 2010 Net (Expense)/Revenue Governmental Activities Business Activities Total Primary Government Net (Expense) Revenue General Revenues and Other Changes in Net Assets Governmental Activities Sales and Use Taxes Income Taxes Motor Fuels Taxes Utility Taxes Insurance Premium Tax Property Tax Liquor Taxes Tobacco and Cigarette Taxes Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Contributions to Permanent Funds and Endowments Transfers Total Governmental Activities Business-type Activities Liquor Taxes Grants and Contributions Not Restricted to Specific Programs Investment Earnings Miscellaneous Contributions to Permanent Funds and Endowments Special Items Transfers Total Business-type Activities Total Primary Government General Revenues and Other Charges Change in Net Assets Governmental Activities Business-type Activities Total Primary Government Changes in Net Assets $ (7.044.117 568.150) 8.644) (174.601 711.568 8.381.750 792.623 393.700) (300.305.579) (759.459 542.769 (357.150 $ 65.901.230 266.520 879.631 13.880 601.652 8.977 156.020) 8.569 8.456) $ 2006 (6.020 374.

342 471.147.696 556.211 274.159 236.053 $ 1.761 232.598 25.606.114 263.492 22.320 8.067.213.113 491.486 7.492 279 .103 7.046 534.423 366.276 680 (216.440 112.338 6.172.309 1.435 45.405 (229.253 2.234.244 157.336 204 (226.651 75.369 223.245 243.857 2 (261.757) (316.684 27.722.557 121.506) (6.715 6.393.211.448 340.192.255 517.018 113.114) 7.020 213.765 6 229.384 564.744 $ 1.788) 6.908 128.049.658 2.031 598.821.2005 $ (6.468) $ 2003 (5.423) 6.026 207 226.239 278.359 2.788 268.067 299.672.806 29.741 173.022.657 911.762) $ 2002 (5.035 7.687.124 4.960 137.050) $ 2004 (5.911 2.057 129.726) (6.975 8.544) (20.019 7.086.742) (217.659.906.231 210.220.212 7.796 2.783) 1.906) (6.116 1.191 688.520.393 530.137.938.790 1.943.605 2.143 911.494.038.994 $ 1.513.757 231.359 (47.814 1.045 174 216.783 1.460 510.596) (334.071 2.330.974.576 $ 460.873.379 31.067) 7.005) (6.698 251.330 201 261.177 1.966 866.502) 2.746 84.222 7.092.

165.772 399.528 16.314 401.470.221 5.607.163. Designated for Capital Projects Unreserved.363 83.447 3.630 1.694 $ 2007 5.402 185.133.474 77.319 20.173 $ 6.351.393 404.201 $ 4. Designated for Debt Service Unreserved.427 153.085 1.956 275.519 216. Undesignated.444 3.405 82.758.987.192.380 3.659 $ 6.155 3.358.STATE OF ALABAMA FUND BALANCES OF GOVERNMENTAL FUNDS For the Last Nine Fiscal Years Ended September 30 (Amounts in Thousands) 2010 General Fund Reserved Unreserved Total General Fund All Other Governmental Funds Reserved Unreserved.070.528 4.374 $ 4.318 806 1.051 280 .303 376.391 381.498.449 2.866 2.938 $ 4.620 24.790 4.142 $ 2008 5.507 441.522 24.009 404.781 $ 2006 3.450.191.481 1.879 $ 2009 5.314 30.099.707 3.623 222. Reported In: Special Revenue Funds Permanent Funds Total All Other Governmental Funds $ 5.

228 232.2005 $ 6.464 465.208 1.501 236.045 $ 2002 4.649 4.729 $ 2003 4.123 $ 3.606 2.538 $ 4.226.542.077 2.488 2.003 317.105.041 2.888.249 733.480.710 498.028 2.579 8.303.696.979 1.935 9.882 $ 2004 4.386 2.050 12.879 323.087 147.346 163.708 $ 4.699 158.340 292.437 8.452.934 4.147 $ 5.528.798 4.667.234.067 381.505 281 .941 152.

916 5.121 1.328 1.061.478 110.935 1.010.627.032 71.646.030 2.129.493 52.460.457 (1.166 1.73% 0.150 1.104.380.995 56.76% 282 .682 5.179 (142.508 664.560.100) (1.522.493 1.213 61.797 982.621 1.724) 121.727 40.910 17.910) 873.908) 305.535 254.000 11.379.329 934.863 2008 $ 8.625) 171 1.333 1.841.198.293 650.768 657.595) 1.085. Forfeits.825 4.901 300.STATE OF ALABAMA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For the Last Nine Fiscal Years Ended September 30 (Amounts in Thousands) 2010 Revenues Taxes Licenses.556.517 6.725 5.149 520.626.672 19.757.725 (259.393 1.116 840.362.969) 61.660 (23.932 1.292 254.289.205 1.662 1.126.000 112.606.791.482 17.293 56.397 647.395 (354.948) 9.697.592.625.989 1.114.732 171.366 313.616 48.336 17.554 6.514 18.388 959.523.377 2009 $ 8.477 7.211 7.238 201.635 143.550.244.330 987.406 226.887 133.450 272.599 1.069 1.794 1.813. and Court Settlements Investment Income Federal Grants and Reimbursements Other Revenues Total Revenues Expenditures Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Persons and Property Transportation General Government Capital Outlay Debt Service .738 9.464 6.770 136.67% 0.427. and Fees Fines.388 47.484 1.618 204.55% 0.907.693.993 6.391.026 6.579 (433.355 168.552 1.025.247.913) 10.415) (52.525 50.575.739 243.523 1.357 164.136 20.577.773 0.299.000 22.782 183.717.387 6.835 81.195.790) (74.166.372.871.333 3.024 (58.Interest and Other Charges Total Expenditures Other Financing Sources (Uses) Transfers In Transfers Out Bonds Issued Refunding Bonds Issued Other Debt Refunding Proceeds Payments to Refunded Bond Escrow Agent Current Refunding to Bondholders Other Debt Refunding Uses Capital Leases Other Debt Issued Other Debt Proceeds Debt Issuance Premiums Premiums on Debt Discounts on Debt Insurance Recovery Proceeds Transfers Out Payments to Refunded Bond Escrow Agent Current Refunding to Bondholders Insurance Recovery Proceeds Total Other Financing Sources (Uses) Net Increase (Decrease) for the Year Debt Service as a Percentage of Noncapital Expenditures $ 8.610) (161.333 1.011.6% 0.054.Principal Retirement Debt Service .643.388.242 1.651 185.592) (441.260 19.722.162 1.234 5.504 2.566.170.512.306.322 62. Permits.963 150.638) 375.737 1.757) 1.347) 6.159 9.969.411 92.210 4.016.319 16.402 68.465 (1.743 2007 $ 8.642 2.074.746 3.655 18.110 (1.927 2006 $ 8.707.818 (2.085 7.535.254 18.180 1.691.089 (1.373 194.310 608.350.028 214.077 42.167 17.520.

515.152 (244.234 562.416) 103.833 73.296 1.612.458 0.354.511.068.510.847 1.818.005.201 15.739 679.576 156.920 57.198.823 680.277.289) 476.040 227.004.13% 283 .914 4.451.095 4.762 204.596 5.675.816 680.303 108.794.914.652) 345.975 (27.863 60.321.776 (917.984) 613.496.558 5.535.634 (225.048 4.461 149.100) 828.639.983 63.763 4.125 13.619 (1.309.366 1.930 14.677 1.650 38.049 (1.195 37.729 96.718 2002 $ 5.889 610.436 1.274 502.583.216.347.127 5.335.764.669 (1.254.162) 618 3.239.599 38.316.610.980 6.462 4.638 4.716 86.903 726.780 1.520 1.677.704 66.290.282 13.434 120.203 1.922 5.527.553 (17.999 185.574 67.963 40.949) 659 5.974 1.956.862 4.354.183 13.551) 4.426 646.343 16.945 1.161 100.305 17.411.117 1.605 1.902 13.825 65.527.239.419.831 183.967 1.160 712.399.866 993.444 120.113 1.493 182.363 497.823 78.188 4.324.532 48.708 2.480 2003 $ 6.323 730.2005 $ 7.118 142.696 147.191 156.073 14.636 81.002 55.031.734 532.110) 600 (600) 1.771 1.829 2004 $ 6.9% 1.77% 0.242 (580) (134.81% 0.566.

218 1.422 77.282 4.577 7.894 1.022 16.401.569.S.927.568.271.168.180.987 7.910 7.430.97% $ 135.326 $ 2008 1.035.485 5.886.802.462.91% $ 151.744 3.226 1.863 6.465 76.285 9.905.280 $ 3.505.861 4.461.256 24.563.607.530.975 66.379.207.348.636.871 5.251. 284 .970 22.919.72% $ 158.758.865.846 5.638 $ 2.084 7.194 5.113.292.748 1.835.089 9.185 7.329 3.842.056 3.293 $ 2.231.142.142 1.973 16.603 16.850.168 23.520 1.010 5.444.768.655 5.993 3.467 7.856.532. U.89% Source: Bureau of Economic Analysis.353.800 $ 3.463.084.513.832 5.521.955.541.623 7.206 71.544.651 21.434 $ 2005 819.677.734 7.691.973 1.733 20.906 5.839.469.495 5.872 15.564.800 $ 157.011.561.074 3.163 15.99% $ 144.209.699.510 1.999.964 7.018.301 $ 2007 888.327.381.STATE OF ALABAMA REVENUE CAPACITY Major Revenue Base: Personal Income by Industry Last Ten Years (Amounts in Thousands) Industry Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and warehousing Finance and insurance Professional and technical services Government and government enterprises All other Total Personal Income State Income Taxes Average Effective Rate* $ 2009 1.201 1.426 $ 2006 927.878 1.195 8.298.607 $ 2.499 7.959 62.989. Year 2009 is the most recent year data is available.980.503. Department of Commerce *Note: The average rate for personal income equals state income taxes divided by total personal income.

176 4.106.283 5.540 6.039.712.397 51.463.012.943.547.073.943 14.327 $ 128.891 1.539 3.693 5.262.306 5.182 4.977 15.334.512 6.496 15.121 $ 2000 670.988.494.910 3.027 14.781 5.633 14.73% $ 115.853.STATE OF ALABAMA $ 2004 704.955 3.885 2.789 1.564 2.560 4.276.93% 285 .190 5.434.701 3.992.848.296.922 2.578 $ 2003 620.061.161.150.019.306.636.413.247 1.618 48.867 54.984 $ 2.892.104 4.809 2.102.800.212 5.589.846 $ 2.467 $ 2.289.703.555 53.792.118.244.318.207 1.788 16.054.234.384 1.950 6.098 18.728.150 4.87% $ 107.931.513.540 6.772.854 1.772 1.285 7.186 3.872.807 4.246 14.79% $ 112.999.373.556.399.165 6.099.318 6.398.932.718.429 15.078.513 $ 2.833 $ 2.688 $ 2001 603.067.511 $ 2002 631.181 5.483 1.338 1.912.76% $ 120.265.910.983.270.968.622 1.066.965 17.256.332 59.643 5.

000 Over $3.875 or more 2% 4% 5% Adjusted Gross Income of $3.000 Over $6.000 Filing Status Taxable Net Income Level Single Not Over $500 Over $500 But Not Over $3.000 Married filing Separate Not Over $500 Over $500 But Not Over $3.000 Over $3.750 or more 2% 4% 5% 2007-2009 Rate Adjusted Gross Income of $4.000 or more 2% 4% 5% Adjusted Gross Income of $7.000 Married filing Jointly Not over $1.500 or more 2% 4% 5% Corporate Income Tax Rates 2000 5% 2001 .000 But Not Over $6.2006 Rate Adjusted Gross Income of $1.2009 6.000 But Not Over $6.000 2000 .250 or more 2% 4% 5% Adjusted Gross Income of $10.STATE OF ALABAMA REVENUE CAPACITY Revenue Rates: Individual and Corporate Income Tax Rates Last Ten Calendar Years Filing Status Taxable Net Income Level Single.700 or more 2% 4% 5% Adjusted Gross Income of $5.000 Over $6.000 Married filing Jointly Not over $1.000 Over $3.000 Over $3.5% Source: Alabama Department of Revenue 286 .000 Over $1.000 Head of Family Not Over $500 Over $500 But Not Over $3. Married filing separate Not Over $500 Over $500 But Not Over $3. Head of family.000 Over $1.

001.80.624 895.000 39.80.824.001.771.000 TOTAL Number of Filers 372.001.987 680.000 OVER 80.940 192.552 11.001.257 408. Source: Alabama Department of Revenue Year 2008 is the most recent data available.000 359.255 2.264 325.746 Percentage of Total 27% 21% 17% 14% 8% 13% 100% Total Income (In Thousands) $ 500.000 12.114 130.285 125.409.20.353 289.997 328.402 267.727 8.001.154 2.237 216.000 60.40.101 4.812.108 302.455.276.000 6.24.678 114.237 1.STATE OF ALABAMA REVENUE CAPACITY Principal Revenue Payers: Individual Income Tax Filers and Liability by Taxable Income Last Four Years For Tax Year 2008 Adjusted Gross Income Level LESS THAN 12.444.000 Over 80.392 23.664.330 265.000 20.000 60.000 Percentage of Total 1% 6% 11% 15% 12% 55% 100% $ Number of Filers 526.001.000 161.40.658.023 5.000 10.586 377. 287 .670. The categories presented are intended to provide alternative information regarding the sources of the State’s income tax revenue.001.001.859.800 1.001.000 TOTAL For Tax Year 2006 Adjusted Gross Income Level Less Than 10.000 2.000 60.000 TOTAL For Tax Year 2007 Adjusted Gross Income Level LESS THAN 12.134 4.001.758.000 3.000 300.000 269.60.39.258 159.60.507.60.498.001.932.000 20.172 Percentage of Total 28% 20% 16% 14% 8% 14% 100% Total Income (In Thousands) $ 582.389.000 60.000 Percentage of Total 1% 7% 11% 15% 12% 54% 100% Tax Liability (In Thousands) $ 22.458 146.844 Percentage of Total 1% 4% 10% 14% 12% 59% 100% Tax Liability (In Thousands) $ 25.000 OVER 80.000 Over 80.001.121.80.749 301.000 TOTAL Note: Number of Filers 382.344.726.249 28.001.016.000 24.812 253.074 1.792 Percentage of Total 3% 7% 17% 16% 13% 44% 100% Tax Liability (In Thousands) $ 23.384.39.000 $ 52.310 55.000 12.007 211.191 1.591 8.349 230.001.193.594 151.60.459.383.80.000 40.000 10.822 272.406 387.525 107. the names of the ten largest individual income tax payers are not available.846.094 273.695 Percentage of Total 2% 7% 18% 15% 13% 45% 100% Number of Filers 514.633.762.822 1.965.000 5.144 Percentage of Total 22% 20% 24% 13% 8% 13% 100% Total Income (In Thousands) $ 1.956 $ 55.397.030 185.587 Percentage of Total 24% 20% 24% 13% 8% 11% 100% Total Income (In Thousands) $ 1.646 330.968 396.000 24.030 1.003 416.000 1.455 326.166.795.458 $ 65.544.631 Percentage of Total 1% 6% 17% 16% 14% 46% 100% $ Due to legal confidentiality issues.188 5.918 7.000 7.24.490 268.782 33.20.620.000 40.000 28.539 Percentage of Total 3% 9% 21% 16% 9% 42% 100% Tax Liability (In Thousands) $ 22.258.206 1.001.001.000 39.576.854 320.957 11.231 Percentage of Total 1% 6% 10% 14% 12% 57% 100% $ $ $ For Tax Year 2005 Adjusted Gross Income Level Less Than 10.010 206.910 6.791.672 10.

045 358.149 330.866 328.840 Percentage of Total 82% 6% 7% 2% 3% 100% Taxable Income (In Thousands) $104.654 338.367 257.1. Source: Alabama Department of Revenue Year 2008 is the most recent data available.206 $552. 000 100.243 $8.500.282 7.000 1.001 and higher Total Number of Filers 20.001 .001 .001 and higher Total Note: Number of Filers 28.000 and lower 50.487 82.000 100. 000 100.001 .466 25.311 469.673 1.836 Percentage of Total 89% 4% 4% 1% 2% 100% Taxable Income (In Thousands) $94.1.100.141 5. 001 .872 21.1.469 99.126 $387. 810.610 Percentage of Total 1% 1% 5% 4% 89% 100% Tax Liability (In Thousands) $7. 001 .000.919 1.000 500.000 500.735 458 767 25.642 339.100.197 Percentage of Total 2% 1% 5% 4% 88% 100% Due to legal confidentiality issues.001 .001 .392 362 545 31.371 1.080 306.350 Percentage of Total 1% 1% 5% 4% 89% 100% Tax Liability (In Thousands) $6.100.001 and higher Total Number of Filers 18.316 7.610 Percentage of Total 2% 1% 7% 4% 86% 100% For Tax Year 2007 Alabama Taxable Income 50.001 .526 $7.229.000.944 Percentage of Total 2% 1% 5% 4% 88% 100% Tax Liability (In Thousands) $6.000.000.347 16.855 21.100.815 6. 224.000.468 491. 001 .209 1.500.079 16.934 6.378 26.487 25.000 and lower 50.805 467 784 24.795 5. 557.119 413.215 $5.500.001 .865 86.384 1.000 500.1.001 and higher Total Number of Filers 20.665 278. the names of the ten largest corporate income tax payers are not available.722 Percentage of Total 1% 1% 5% 4% 89% 100% For Tax Year 2006 Alabama Taxable Income 50.166 1.788 98.500.000 500.793 P ercentage of Total 1% 1% 5% 4% 89% 100% For Tax Year 2005 Alabama Taxable Income 50.165 $392.165.000 1.209 20.859 Percentage of Total 83% 5% 7% 2% 3% 100% Taxable Income (In Thousands) $94.STATE OF ALABAMA REVENUE CAPACITY Principal Revenue Payers: Corporate Income Tax Filers and Liability by Taxable Income Last Four Years For Tax Year 2008 Alabama Taxable Income 50.978 5.355 6. 503. The categories presented are intended to provide alternative information regarding the sources of the State’s income tax revenue.000.768 $530.000 1. 001 .001 .054 Percentage of Total 83% 5% 7% 2% 3% 100% Taxable Income (In Thousands) $110.400 1.000 1.574 403 754 22. 629.716 397.000 and lower 50.000. 288 .035 Percentage of Total 1% 1% 5% 4% 89% 100% Tax Liability (In Thousands) $6. 964.012 $8.000.000 and lower 50.421 1. 000 100.

STATE OF ALABAMA 289 .

728 $ 687.438 42.663.643 898.698 25.688 649.549 1.742.562 $ 773.15% 1.109 11.275 633. 290 .145 323.224 629.352 1.745 $ 572.810.044 39.029.043 $ 516.086.115 1.92% Amount of Debt per Capita † $ 385 $ 353 $ 367 $ 376 $ 290 Notes: Details regarding the state's outstanding debt can be found in the note 4 of the financial statements.715.483 41.635 1.06% 1.160.586 1.877 593.525 $ 619.360 14.702 $ 394.597 $ 721.232 $ 612. All years presented with revised population and personal income data.712 43.330 274.183 1.659 1.331. Except Per Capita Amount) 2010 Primary Government Governmental Activities: General Obligation Bonds Revenue Bonds Capital Leases/Notes/Mortgages Total Governmental Activities Business-type Activities: Revenue Bonds Capital Leases/Notes/Mortgages Total Business-Type Activities Total Primary Government Debt as a percentage of Personal Income † $ 2009 2008 2007 2006 $ 769.797 1.336 298.15% 0.253 333.149.959 16. Fiscal year 2010 personal income and population data are estimated.782 20.272 1.314 638. † See the Schedule of Demographic and Economic Statistics on page 297 for personal income and population data.08% 1.STATE OF ALABAMA DEBT CAPACITY Ratios of Outstanding Debt Last Nine Fiscal Years (Amounts in Thousands.283 117.973 355.934 1.228 433.

633 33.291 17.219 308.370 831.209 $ 1.854 $ 1.059 955.728 $ 535.139 32.224.948 323.508 12.316 901.429 38.619 $ 1.266.918 355.891 33.327 42.884 0.336.211 347.030 411.061 14.085 369.STATE OF ALABAMA 2005 2004 2003 2002 $ 507.009 $ 1.99% 0.10% $ 294 $ 263 $ 273 $ 283 291 .986 445.100 890.186.737 299.742 $ 445.93% 1.361 337.02% 1.080 386.346 311.010 $ 490.503 351.

26% 1.506. 292 .04% 1.562 40.930 25.178.336 721.659.072 936.844 30.209 111.795.487.620.770 1.69% 1.00% 1.732 2.822.634.016 42.337 46.085 535.99% 1.169 Percentage of Personal Income † 1.02% 1.522.STATE OF ALABAMA DEBT CAPACITY Ratios of General Bonded Debt Outstanding Last Nine Fiscal Years (Amounts in Thousands.914 29.925 2.395 2.710.09% 0.307 91.457 1.920 1.650 72.483 1.245.398 Total 1.886. The State does issue revenue bonds which are limited obligations of public corporations governed by state officials. Fiscal year 2010 personal income and population data are estimated. † See the Schedule of Demographic and Economic Statistics on page 297 for personal income and population data.442 906.832.799 1.137.994 Percentage of Personal Income † 1.825 1.175 99.720 677.211 490.252 $ Fiscal Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 Revenue Bonds $ 2.087 1.772 684.101.768.376 112.649.86% 0.135 1. All years presented with revised population and personal income data.145 773.079 $ Less: Amounts Available in Debt Service Fund $ 47.759 1.973 507.740.576 1.614.564.008 28.267 1.220 749.570 1.503 445.662.240.56% $ Per Capita † 565 528 539 325 362 376 381 388 401 Note: Details regarding the state's outstanding debt can be found in the note 4 of the financial statements.483 $ Fiscal Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 Revenue Bonds 912.92% 0.616 1.100 2.86% 0.543 1.534.896 103.59% 0.857 1.621.039 113.45% 1.673 1.34% 1.844. Except Per Capita Amount) Primary Government General Obligation Bonds Payable $ 769.615 1.164 1.695 1.253 516.421 Total 2.388 686.15% 1.392 918.330 687.58% 1.734.719.02% $ Per Capita † 347 332 345 356 270 274 244 253 264 Component Units (Only includes issues that the State has pledged revenue for principal payment) Less: Amounts Available in Debt Service Fund $ 109.742 762.945 25.95% 1.925 42.160 1. Debt Limitations The Constitution of Alabama of 1901 prohibits the issuance of debt by the State.

STATE OF ALABAMA 293 .

82 726.027 7.359 13.215 93.73 979.720 12.415 7.459 5.830 14.133 12.18 548.50 87.482.33 2.473 1.871 5.959 130.07 294 .910 10.313 2.813 1.123 41.480 7.527 5.64 748.24 137.126 9.045 9.010 5.198 7.85 186.550 34.56 648.240 76.374.80 16.218 14.640 78.760 5.08 20.013 9.307.638 3.630 6.460 13.831 10.70 2.656 4.095 7.62 2.42 2.462 2.STATE OF ALABAMA DEBT CAPACITY Pledged Revenue Coverage Last Seven Fiscal Years (Amounts in Thousands) 2010 Primary Government .747 87.070 7.022 5.769 14.063 12.26 831.86 267.698 11.928 10.371 14.575 10.770 6.460 7.08 184.112 6.84 18.169 2.136 43.333 7.290 77.794 68.592 2.393 10.688 15.970 9. Use Tax Debt Service Principal Interest Coverage ¹ 2009 2008 2007 2006 2005 2004 106.81 125.720 116.765 72.13 206.430 8.43 77.735 6.05 109.205 7.001 1.428 6.162.952 11.514.78 2.311 12.983 28.589 7.970 8.910 8.508 1.626 71.890 51.450 6.Revenue Bonds State Port Authority Revenue-Charges for facilities usage Debt Service Principal Interest Coverage ¹ Alabama College System Revenue-Tuition and Fees Debt Service Principal Interest Coverage ¹ Federal Highway Finance Authority Revenue-Federal Revenue Debt Service Principal Interest Coverage ¹ Component Units-Revenue Bonds Alabama Incentives Financing Authority Tennessee Valley Exhibit Commission Revenue-Tennessee Valley Electric Payment Debt Service Principal Interest Coverage ¹ Public School and College Authority Revenue-General Sales Tax.048. Utility Tax.280 10.448 8.521 11.69 19.955 11.749 4.550 91.830 9.47 2.124 5.250 13.155 5.664 12.009 14.420 6.530 11.527 38.35 2.260 9.25 790.429 14.944 110.920 1.968 6.328.202 2.340 7.285 72.23 185.150 12.235 132.81 17.982 2.361 5.920 7.165 12.85 88.83 101.669 39.328 2.96 20.45 103.19 18.851 140 6.

03 13.100 7.02 101.828 4.050 647 1.775 745 1.26 6.360 7.287 440 780 83.03 13.562 4.895 315 903 62.490 969 1.71 84.513 1.02 Details regarding the state's outstanding bonds can be found in Note 4 of the financial statements.000 5.36 2004 3.83 90.000 4.910 6.31 13.420 1.121 3.42 2008 4.315 343 1.141 3.03 13.31 2009 4.921 3.000 5.490 8.197 3.660 8.659 1.302 0.03 13.145 1.000 5.919 515 702 87.03 13.654 1.710 505 1.855 7.241 1.773 1.919 370 847 74.000 4.996 4.022 1.000 5.53 75.900 112 2.400 2.03 13.364 4.781 475 743 89.929 5.247 3.590 2.31 101.79 6.100 258 1.25 6.42 2005 5.85 4.958 1.205 1.188 5.25 6.19 6.050 927 0.54 105.STATE OF ALABAMA 2010 State Industrial Development Authority Revenue-Cigarette Tax Debt Service Principal Interest Coverage ¹ Mental Health Financing Authority Revenue-Cigarette Tax Debt Service Principal Interest Coverage ¹ Alabama Revolving Fund Authority Revenue-Mobile Telecommunications Tax Debt Service Principal Interest Coverage ¹ Alabama Twenty-first Century Authority Revenue-Tobacco Settlement Debt Service Principal Interest Coverage ¹ 4.892 345 876 69.544 0.057 405 815 82.115 508 1.773 3.625 6.262 1. ¹ Coverage equals revenue divided by debt service.41 2006 5.03 108.22 6.190 270 4. 295 .000 4.050 776 1.35 2007 5.

994.366 211.169.8% 3.989.034.201 108.064 Unemployment 99.849 1.104. Department of Labor 296 .425 106.500.936 113.4% 5.107.000 Unemployment Rate 10.134. U.0% 9.177 2.0% 1.007.0% 3.4% 5.108. Bureau of Labor Statistics.5% Civilian Labor Force Trend with Unemployment Rates Labor Force 2.000 4.0% 1.887 2.284 75.959.000.7% 5.873 2.817 2.074 2.0% 2.133.355 75.748 1.628 81.0% Labor Force Note: Unemployment Unemployment Rate Data were not seasonally adjusted.127.184.098.0% 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0.7% 9.000 8.4% 5.038 202.051.601 1.909 1.893 2.211 Employment 2.967 2.173.170.000 2.000 6.000.STATE OF ALABAMA DEMOGRAPHIC AND ECONOMIC INFORMATION Labor Force Statistics Last Ten Years Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Labor Force 2.5% 3. 2006-2010 data reflects revised population controls and model reestimation with the Bureau of Labor Statistics.0% 500.500. S.462 2.147 Unemployment Rate 4.781 2. Sources: Local Area Unemployment Statistics.845 2.209 2.925.113.858 2.110 114.153 2.784 2.061.

000 5.000 11.853.597.865.878.545.256.081.000 9.591 4.151 298.000 10.698 39.190 4.000 40.034 4.019.458 40.S.000 11.418 293.476.677.280 157.369.413.688 4. Department of Commerce.554.084.165.800 158.556 287.STATE OF ALABAMA DEMOGRAPHIC AND ECONOMIC INFORMATION Population/Per Capita Personal Income Statistics Last Ten Years Population Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 United States 282.000 12.461 32.568.054.212 301.669.092 25.830.000 15.914 290.637.708.061.833 115.420 4.745.072.049 4.451.984 120.790.516.000 9.607 151.866.638 Pe r Cap it a In co me Al ab am a Co mp ar ed to U ni te d St at es 45.467 128.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 United States Alabama Note: Year 2009 is the most recent year for which data are available.708 Per Capita Personal Income United States 30.899.579.000 35.744 33.S.000 30.424 37.012.464 4.045.593. Department of Commerce 297 .474.000 8.360 Personal income (in Thousands) United States 8.006.326.736 28.145 31.000 Alabama 107.849 4.462.673 39.806 26.928. Each year’s data is updated by the U.702.803.843 31.904 4.318 31.293 144.512.636.490.000 25.881 35. Bureau of Economic Analysis.846 307.472.372 29.421 32.464.150.846 112.957 285.000 9.069 25.000 10. Sources: Regional Economic Information System.753.895 304.000 12.900 33.626 Alabama 24.271 33.000 20.550 Alabama 4. U.739 295.379.374.513 135.171.

77% 0.58% Employment Range 30.38% 0.999 5.000-159.000-9.000-9.999 5.42% 6.999 5.999 5.000-9.999 5.000-19.39% 0.94% 1.39% 0.000-9.000-9.000-9.000-39.80% 1.000-9.77% 0.999 5.999 5.999 5.39% 0.41% 0.28% 0.41% 0.000-9.999 5.999 5.000-9.999 100.41% 0.000-29.42% 0.000-29.999 95.999 5.000-9.39% 0.999 10.000-29.999 5.000-9.000-9.999 5.000-39.38% 0.38% 0.28% 0.999 5.990 % of Total State Employment 1.999 5.000-39.42% 0.999 20.999 10.39% 0.89% 2009 % of Total State Employment 1. Of Alabama In Birmingham Medical Center U S Postal Service Regions Bank Pilgrims Pride Corporation Huntsville Hospital Rank 1 2 4 6 7 8 3 5 9 10 Rank 1 2 4 6 7 8 3 5 9 10 Employer Wal Mart Associates Inc Army Mobile Education Board University Of Alabama In Birmingham Alabama Power Co Electric Univ.999 20.999 5.000-29.39% 0. Percentage of Total State Employment is based on the midpoints in the ranges given.000-9.Labor Market Information Division 298 .000-9.000-9.999 5.41% 0.999 5.54% Employer Wal Mart Associates Inc Army Mobile Education Board University Of Alabama In Birmingham Alabama Power Co Electric Univ.000-9.999 5.41% 6.999 95.69% Employment Range 30.39% 0.41% 0.000-9.999 5.990 2008 Employment Range 30.000-39.999 5.41% 0.38% 0.000-9.000-9.999 5.000-9.000-19.42% 0.38% 0.000-9.38% 6.000-159.000-9.42% 0.42% 0. State of Alabama is excluded.000-9.000-9. Source: Alabama Department of Industrial Relations .77% 0.990 % of Total State Employment 1.999 5.42% 0.999 5.999 20.000-9.000-9.42% 0.999 5.79% 1.36% 0.39% 6.41% 0.999 5.999 20.STATE OF ALABAMA DEMOGRAPHIC AND ECONOMIC INFORMATION Top Ten Employers in Alabama Last Ten Years 2010 Employment Range 30. Of Alabama In Birmingham Medical Center U S Postal Service Winn Dixie Montgomery Regions Bank Pilgrims Pride Corporation Huntville Hospital Rank 1 2 3 6 7 9 4 5 8 10 Rank 1 2 4 6 9 8 3 10 5 7 - Note: All figures are based on March of each year.000-9.000-9.999 5.999 5.999 95.999 10.000-169.000-19.90% 1.000-9.999 5.990 2007 % of Total State Employment 1.000-159.

000-9.999 5.000-9.990 % of Total State Rank Employment 1 2 5 6 9 8 3 4 7 10 1.Labor Market Information Division 299 .000-9.999 5.999 Alabama Power Co Electric 5.37% 0.41% 0.999 5.41% 0.63% Employment Range 20.39% 0.000-9.999 85.000-39.40% 0.999 20.999 5.999 5.999 5.000-9.39% 0.STATE OF ALABAMA 2006 2005 2004 Employment Range 30.40% 0.999 University Of Alabama In Birmingham 5.000-9.40% 0.000-9.999 5.39% 0.999 75.000-9.999 5.000-39.000-9.000-29.000-39.999 5.999 5.41% 0.000-29.000-19.999 5.41% 0.000-9.40% 0.000-29.24% 2003 % of Employment Total State Range Rank Employment 30.41% 6.87% 1.33% 0.999 90.000-9.999 5.999 5.999 5.39% 0. Of Ala In Bham Medical Center U S Postal Service Gold Kist Inc Winn Dixie Montgomery Brunos Supermarkets Inc BellSouth Telecommunications Russell Corporation 5.94% 0.41% 0.96% 0.000-9.000-9.999 20.999 5.000-9.999 15.000-9.40% 0.999 15.40% University Of Alabama In Birmingham 5.999 5.39% 0.000-129.000-149.41% 0.000-9.000-9.000-9.999 20.000-39.40% 0.999 5.999 5.990 Note: All figures are based on March of each year. Of Ala In Bham Medical Center U S Postal Service Gold Kist Inc Winn Dixie Montgomery Regions Bank Brunos Supermarkets Inc 5.999 5.999 5.41% 0.41% 0.92% 0.41% 0.999 5.999 Employer Wal Mart Associates Inc Army Mobile Education Board Range 30.41% 0.000-9.41% 0.40% 0. State of Alabama is excluded.41% 0.000-9.41% 0.41% 0.40% 0.999 5.999 5.999 5.999 5.990 2002 1 2 3 4 7 8 9 10 6 5 1.000-129.000-9.000-9.41% 0.40% 6.000-9.999 15.40% 0.990 8 10 5 3 7 1.51% % of Total State Rank Employment 1 2 3 5 6 9 8 10 7 4 1.000-9.990 Employment % of Total State Rank 1 2 3 5 7 10 8 6 4 9 Employment 1.999 5.999 % of Total State Rank Employment 1 2 3 4 5 6 7 8 9 10 1.000-9.41% 0.40% 0.999 5.999 U.999 5.40% 0.41% 5.40% 0.999 U.000-9.000-9.96% 0.18% Employment Range 20.999 5.000-9.000-9.999 5.30% 0.91% 1.34% 0.39% 0.999 90.990 2001 % of Total State Rank Employment 1 2 4 6 9 5.000-9.999 5.000-19.41% 0.000-29.41% 0.000-9.999 5.39% 6.54% Employer Wal Mart Associates Inc Army Mobile Education Board Employment Range 30.41% 0.999 90.41% 0.82% 1.999 5.36% 0.000-9.000-29.999 5.999 5.41% 0.999 75.000-9. Source: Alabama Department of Industrial Relations .000-149.000-149. Percentage of Total State Employment is based on the midpoints in the ranges given.000-9.41% 6.40% 0.000-9.000-9.000-9.000-9.999 5.000-9.000-9.999 5.000-9.000-139.000-9.999 Alabama Power Co Electric 5.40% 5.999 5.40% 0.999 5.000-9.999 5.000-9.000-9.999 5.000-9.000-9.000-9.39% 0.000-19.

964 35.277 7.STATE OF ALABAMA OPERATING INFORMATION State Government Employment by Function Last Nine Years 2010 Primary Government Governmental Activities: Economic Development and Regulation Education and Cultural Resources Natural Resources and Recreation Health Social Services Protection of Person and Property Transportation General Government Total Governmental Activities Business-type Activities: Alcoholic Beverage Control Board State Port Authority Alabama College System Total Business-Type Activities Total Primary Government 2009 2008 2007 2006 802 1.167 6.950 3. and Administrative Office of the Courts.454 5.686 33.031 36. Sources: Alabama Personnel Department Alabama Commission on Higher Education Alabama Administrative Office of the Courts Alabama House of Representatives 300 .169 4.363 4.743 882 1.904 836 1.968 8. Senate.937 3.749 901 193 1.173 32. House.712 881 1.014 36.916 3.301 4.108 8.226 1.446 881 1.966 8.378 5.263 4.842 5.477 898 200 1.451 5.458 32.254 1.849 Note: Includes State Merit System.057 5.731 33.808 34.317 5.210 1.608 5.200 1.885 2.163 8.513 5.493 6.368 4.117 1.521 5.460 5.644 5.626 6.445 5.792 2.868 851 165 1.037 36.587 33.757 895 184 1.041 902 185 1.

583 4.203 753 142 1.790 760 119 1.768 7.138 4.081 6.581 34.124 31.383 4.008 746 119 1.317 893 1.796 2.495 31.STATE OF ALABAMA 2005 2004 2003 2002 824 1.622 4.166 31.111 1.691 34.890 6.909 778 150 1.818 6.490 301 .482 32.175 899 1.488 7.688 4.615 34.313 7.766 2.702 2.104 1.092 1.590 5.694 34.931 6.323 7.509 835 1.486 4.575 5.086 1.750 2.981 4.733 5.013 4.395 4.

158 66.389 2.946 229.271 2.217 210.098 27.700.314 11 111.984 n/a 4.483 432.796 3.451 273.372 n/a 2.650 228.075 4.475 732.946 273.711 359.611.368 10.910 33.683 10.Physical and Mental Public Health Vital records issued M edicaid Citizens enrolled monthly Claims processed monthly S ocial S ervices Industrial Relations Employment Security claims Human Resources Number of visits to licensed child care centers Child support caseload Households receiving food assistance Number of child abuse/neglect assessments Protection of Persons and Property Department of Corrections Number of inmates Public Safety Arrest tickets issued Accidents investigated Pardons and Paroles Number of board hearings Number of offenders supervised Forensic Sciences Number of death cases investigated Transportation Transportation Department Roadway miles Bridges General Government Administrative Office of Courts Caseload Revenue Department Number of payments received 2.304.646 10.220 30.603 2.512 25.603.939 11.603 3.376 739.904 821.961.625 n/a 285.115 12.216 25.078 209.284 71.505 30.406 3.019 226.094 11 97.846 5.298 243.579 2.854 568.840 n/a n/a 52.180.907 517.389 n/a 1.578 2.756 10.362 11.287 3.546 58.STATE OF ALABAMA OPERATING INFORMATION Indicators of Demand or Level of Service Last Five Fiscal Years 2010 Economic Development and Regulation Forestry Commission Number of fires Average acres burned Agriculture and Industries Pounds of meat and poultry processed under inspection Educational and Cultural Resources Education Department Teacher certificates issued Number of local schools supported Number of children served Natural Resources and Recreation Conservation and Natural Resources Number of guests to outdoor recreational sites Acres of land managed Number of registered boats Health .009 197.932 15 88.723 765.547 878.303 538.823.232 2.269 3.591 16 88.514 3.082.982 n/a 302 .819.550 744.875 5.067 3.448 2006 4.024 n/a n/a 3.403 25.970 4.834 248.453 2008 2.904 12.147 13.954 67.060 228.876 5.694 479.788 n/a 506.602 2.862 3.736 584.616 2.000 48.328 2.353.196 4.506 8.627 36.758.000 344.617 2007 4.697 3.520 10.520 739.848.375 49.589.296.198 n/a 1.161 198.301 237.374 10.868.280 501.802 271.031.537 2009 2.206 3.589.318.450 10 105.159 324.041.062 407.987 2.316 27.254 229.235 5.197 n/a 1.479 231.877 5.470 29.390 533.635 280.855 28.289 31.056.460 3.566 237.607 24.835.366.435 229.419.454 2.

241 1. and Nature of Capital Assets Last Seven Fiscal Years (Amounts in Thousands) 2010 Economic Development and Regulation Forestry Commission Buildings Vehicles Heavy Equipment Educational and Cultural Resources Education Television Buildings Natural Resources and Recreation Conservation and Natural Resources Buildings Vehicles Heavy Equipment Health Environmental Management Vehicles Social Services Human Resources Buildings Protection of Persons and Property Agriculture and Industries Vehicles Corrections Buildings Vehicles Military Buildings Public Safety Vehicles Youth Services Buildings Vehicles Pardons and Paroles Vehicles Transportation Transportation Buildings Vehicles Heavy Equipment General Government Administrative Office of Courts Vehicles Revenue Department Vehicles 2009 2008 2007 2006 2005 2004 160 379 654 159 380 657 142 371 671 142 397 690 142 326 682 142 322 741 142 307 715 26 26 24 24 24 24 24 678 760 214 668 778 211 659 774 207 631 759 211 611 689 212 609 672 210 604 645 213 183 163 178 189 196 192 172 31 30 31 30 30 30 30 246 370 446 665 1.062 1.275 118 103 322 234 362 446 680 1.356 1.343 1.353 115 106 321 249 370 421 669 1.159 118 89 252 222 362 332 688 1.061 501 2.357 118 96 262 236 362 404 688 1.062 118 74 211 510 2.STATE OF ALABAMA OPERATING INFORMATION Indicators of Volume. Usage.375 119 101 305 233 362 448 642 1.130 472 2.146 473 2.184 471 2.039 1.127 472 2.138 23 29 22 26 20 27 17 27 7 27 7 37 7 24 303 .287 118 82 248 186 345 332 688 1.093 510 2.389 1.379 1.