ACCT 424 Advanced Accounting

Grading Expectations and Matrices

Paper #1: Segment and Non-Controlling Interest Reporting and Disclosure Requirements

Area of

Assessment

Points Expectation Assessment Criteria

Basic Content

in Place

50 1-Must use an approved company that has both

segments and NCIs; 2- a brief introduction / review of

your chosen entity; 3- coverage of the requirements for

segment and NCI disclosures and reporting including

clear identification of the actual rules (#s, history /

development); 4- summarization of what and how your

particular company has disclosed relating to these two

items, and; 5- your thoughts on the effectiveness /

overall meaningfulness of your company's disclosures

and the disclosure rules themselves in only the areas of

segments and NCIs

Quantitative: 5 requirements worth

10 points each

Advanced

Content in

Place

20 Demonstrate an understanding of the subjects of NCI

and segment reporting and disclosures within the

context of a 10-K report of the student’s chosen and

approved entity.

Qualitative: 0 to 20 points depending

on the student’s ability to tie together

all the requirements into a cohesive

presentation

Overall

Analysis and

Evaluation

10 1,000 to 1,800 words required to properly address the

topics at hand; headings used to identify the four

primary subject areas required; appropriate and

relevant outside literature used and referenced

properly.

Qualitative: 0 to 10 points depending

on the student’s ability to

demonstrate an understanding of the

topic at hand and ability to lay out the

discussion of same in a meaningful,

logical manner.

Meets

Presentation

Requirements

5 Single-spaced; double-spacing between paragraphs; one

inch margins; font size 10-12; cover page.

Quantitative: 5 requirements worth 1

point each

APA In-Text

Citations and

Reference

Section

5 “Works Cited” section included at end; proper in-text

citations used and all facts are cited

Quantitative: 5 points for including

the Works Cited Section and proper

in-text citation of all facts

Clarity,

Mechanics,

Grammar

10 Free of spelling and grammar mistakes. Text and

sentence structure should be clear and readable. Free of

choppy or incomplete sentences. Proper use of

paragraphs. No active hyperlinks anywhere in the paper.

Quantitative: 10 points if totally free

of grammar / spelling errors and

active hyperlinks; 5 points if minor

grammar / spelling errors and or

active hyperlinks; <5 points for

numerous spelling grammar errors, 0

points when no demonstrable

attention has been paid to grammar /

spelling.

Paper #2: CAFR

Area of Assessment Points Expectation Assessment Criteria

Basic Content in Place 25 1: Use of an approved entity’s CAFR/ACFR, 2: a brief introduction / review of your chosen entity, 3: discussion of the main sections of a CAFR/ACFR and what it’s focused on, 4: clearly identify the actual intended users of the CAFR/ACFR report, 5: your thoughts on the CAFR/ACFR report overall

Quantitative: 5 requirements worth 5 points each

Advanced Content in Place

20 Demonstrate an understanding of CAFRs

Qualitative: 0 to 20 points depending on the student’s ability to tie together all the requirements into a cohesive presentation

Overall Analysis and Evaluation

25 1,000 to 1,800 words. Topics at hand properly addressed; headings used to identify the primary subject areas required; appropriate and relevant outside literature used and referenced properly.

Qualitative: 0 to 25 points depending on the student’s ability to demonstrate an understanding of the topic at hand and ability to lay out the discussion of same in a meaningful, logical manner.

Meets Presentation Requirements

10 Single-spaced; double-spacing between paragraphs; one inch margins; font size 10-12; cover page.

Quantitative: 5 requirements worth 2 points each

APA In-Text Citations and Reference Section

10 “Works Cited” section included at end; proper in-text citations used and all facts are cited

Quantitative: 5 points for including the Works Cited Section; 5 points for proper in- text citation of all facts

Clarity, Mechanics, Grammar

10 Free of spelling and grammar mistakes. Text and sentence structure should be clear and readable. Free of choppy or incomplete sentences. Proper use of paragraphs. No active hyperlinks anywhere in the paper.

Quantitative: 10 points if totally free of grammar / spelling errors; 5 points if minor grammar / spelling errors; < 5 points when no demonstrable attention has been paid to grammar / spelling.

Paper #3: NFPs & the Form 990

Area of

Assessment

Points Expectation Assessment Criteria

Basic Content in

Place

50 1-Must use an approved 990 from an

approved entity; 2- a brief

introduction / review of your chosen

entity; 3- coverage of the general

focus of the information of a 990 & its

major sections; 4- coverage of the

actual intended users of a 990; 5-

comparison of a 990 to your entity’s

annual report.

Quantitative: 5 requirements worth 10 points

each

Advanced

Content in Place

20 Demonstrate an understanding of the

subject of a 990.

Qualitative: 0 to 20 points depending on the

student’s ability to tie together all the

requirements into a cohesive presentation

Overall Analysis

and Evaluation

10 1,000 to 1,800 words required to

properly address the topics at hand;

headings used to identify the four

primary subject areas required;

appropriate and relevant outside

literature used and referenced

properly.

Qualitative: 0 to 10 points depending on the

student’s ability to demonstrate an

understanding of the topic at hand and ability

to lay out the discussion of same in a

meaningful, logical manner.

Meets

Presentation

Requirements

5 Single-spaced; double-spacing

between paragraphs; one inch

margins; font size 10-12; cover page.

Quantitative: 5 requirements worth 1 point

each

APA In-Text

Citations and

Reference

Section

5 “Works Cited” section included at end;

proper in-text citations used and all

facts are cited

Quantitative: 5 points for including the Works

Cited Section and proper in-text citation of all

facts

Clarity,

Mechanics,

Grammar

10 Free of spelling and grammar

mistakes. Text and sentence structure

should be clear and readable. Free of

choppy or incomplete sentences.

Proper use of paragraphs. No active

hyperlinks anywhere in the paper.

Quantitative: 10 points if totally free of

grammar / spelling errors and active

hyperlinks; 5 points if minor grammar /

spelling errors and or active hyperlinks; <5

points for numerous spelling grammar errors,

0 points when no demonstrable attention has

been paid to grammar / spelling.

West Virginia Comprehensive Annual

Financial Report For the Fiscal Year

Ended June 30, 2021

Jim Justice

Governor

Mark Scott

Cabinet Secretary

Department of Administration

Sarah H. Long, CPA

Chief Financial Officer and

Assistant Cabinet Secretary

Department of Administration

Prepared by the Financial

Accounting and Reporting Section

i

Governor Jim Justice

Jim Justice Governor of West Virginia

To the Honorable Members of the West Virginia Legislature and the Citizens of West Virginia:

I am pleased to provide you with the State of West Virginia's Comprehensive Annual Financial Report (CAFR) for the year ended June  30, 2021. An independent certified public accounting firm has audited the basic financial statements contained in this report.

The CAFR demonstrates West Virginia's commitment to financial accountability and national standards. This document provides the Legislature and citizens of West Virginia with the state's financial data. It can be accessed on the Internet at www.finance.wv.gov.

This report was compiled with the help of individuals throughout state government. Each state agency provided clear, concise information to ensure the highest level of financial accountability.

Sincerely,

Jim Justice Governor

State Capitol | 1900 Kanawha Blvd., East, Charleston, WV 25305 | (304) 558-2000

ACKNOWLEDGMENTS Report Prepared By:

West Virginia Department of Administration Finance Division Financial Accounting and Reporting Section 2101 Washington Street, East Building 17, 3rd Floor Charleston, West Virginia 25305 (304) 558-4083

Financial Reporting Team:

Stephanie Bailes, CPA Betsy Chapman, CGFM Samantha Chapman, CGFM Taylor Cole Melody Duke Cheryl Garner Reneé King Luke Murray Matthew Reynolds Timothy Scites Robert Tanner Kay Walden, CGFM Maria Yoakum

A Special Thanks To:

Sarah H. Long, CPA

Special appreciation is given to all personnel throughout the State whose extra effort to contribute accurate, timely financial data for their agencies made this report possible. The technical support of West Virginia Our Advanced Solution with Integrated Systems (wvOASIS) has been invaluable. Also, photo credit goes to the Division of Tourism.

We invite you to visit our website: http://www.finance.wv.gov.

West Virginia

iv

TABLE OF CONTENTS

INTRODUCTORY SECTION

Letter of Transmittal ……………………………………………………………………………………………………………………………………… x GFOA Certificate of Achievement ………………………………………………………………………………………………………………….. xviii Organization Chart ………………………………………………………………………………………………………………………………………… xix State of West Virginia Principal Officials ………………………………………………………………………………………………………. xx

FINANCIAL SECTION

Report of Independent Auditors …………………………………………………………………………………………………………………….. 2 Management’s Discussion and Analysis ………………………………………………………………………………………………………… 6

Basic Financial Statements

Government-wide Financial Statements

Statement of Net Position ………………………………………………………………………………………………………………….. 22 Statement of Activities ……………………………………………………………………………………………………………………….. 24

Governmental Funds Financial Statements

Balance Sheet ……………………………………………………………………………………………………………………………………… 28 Reconciliation of the Governmental Funds

Balance Sheet to the Statement of Net Position ……………………………………………………………………………….. 30 Statement of Revenues, Expenditures, and Changes in Fund Balances ……………………………………………. 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances to the Statement of Activities ………………………………………………………………………………… 32

Proprietary Funds Financial Statements

Statement of Net Position ………………………………………………………………………………………………………………….. 34 Statement of Revenues, Expenses, and Changes in Fund Net Position ……………………………………………. 36 Statement of Cash Flows ……………………………………………………………………………………………………………………. 38

Fiduciary Funds Financial Statements

Statement of Fiduciary Net Position …………………………………………………………………………………………………. 44 Statement of Changes in Fiduciary Net Position ………………………………………………………………………………. 45

Discretely Presented Component Units Financial Statements

Combining Statement of Net Position ……………………………………………………………………………………………….. 48 Combining Statement of Activities …………………………………………………………………………………………………….. 52

West Virginia

v

Notes to the Financial Statements:

Note 1 – Summary of Significant Accounting Policies ……………………………………………………………………… 55 Note 2 – Restatements and Restricted Balances ……………………………………………………………………………… 77 Note  3 – Net Position/Fund Deficits ………………………………………………………………………………………………… 80 Note  4 – Deposits and Investments ………………………………………………………………………………………………….. 83 Note  5 – Receivables …………………………………………………………………………………………………………………………. 124 Note  6 – Interfund Balances …………………………………………………………………………………………………………….. 128 Note  7 – Interfund Transfers …………………………………………………………………………………………………………… 130 Note  8 – Restricted Assets ………………………………………………………………………………………………………………… 133 Note  9 – Capital Assets …………………………………………………………………………………………………………………….. 135 Note 10 – Long-Term Obligations ……………………………………………………………………………………………………… 139 Note 11 – Leases …………………………………………………………………………………………………………………………………. 153 Note 12 – Retirement Systems …………………………………………………………………………………………………………… 156 Note 13 – Other Postemployment Benefits ……………………………………………………………………………………….. 175 Note 14 – Risk Management ………………………………………………………………………………………………………………. 185 Note 15 – Commitments and Contingencies ………………………………………………………………………………………. 191 Note 16 – Subsequent Events …………………………………………………………………………………………………………….. 195

Required Supplementary Information

Budgetary Comparison Schedule ……………………………………………………………………………………………………….. 198 Notes to Required Supplementary Information – Budgetary Reporting …………………………………………… 201 Budgetary Comparison Schedule, Budget-to-GAAP Reconciliation ………………………………………………….. 204 Pension Plans Schedules ……………………………………………………………………………………………………………………. 206 Notes to Required Supplementary Information – Pension ………………………………………………………………… 222 OPEB Plan Schedules ………………………………………………………………………………………………………………………… 224 Notes to Required Supplementary Information – OPEB …………………………………………………………………… 227

Combining Financial Statements and Schedules

Nonmajor Governmental Funds

Combining Balance Sheet …………………………………………………………………………………………………………. 232 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ……………….. 234

Nonmajor Special Revenue Funds

Combining Balance Sheet …………………………………………………………………………………………………………. 238 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ……………….. 240

Nonmajor Debt Service Funds

Combining Balance Sheet …………………………………………………………………………………………………………. 244 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ……………….. 245

West Virginia

vi

Internal Service Funds

Combining Statement of Fund Net Position ……………………………………………………………………………. 248 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ……………….. 249 Combining Statement of Cash Flows ……………………………………………………………………………………….. 250

Nonmajor Proprietary Funds

Combining Statement of Net Position ……………………………………………………………………………………… 253 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ……………….. 254 Combining Statement of Cash Flows ……………………………………………………………………………………….. 255

Pension Trust and Other Employee Benefit Trust Funds

Combining Statement of Fiduciary Net Position ……………………………………………………………………… 260 Combining Statement of Changes in Fiduciary Net Position ………………………………………………….. 262

Investment Trust Funds

Combining Statement of Fiduciary Net Position ……………………………………………………………………… 266 Combining Statement of Changes in Fiduciary Net Position ………………………………………………….. 266

Custodial Funds

Combining Statement of Fiduciary Net Position ……………………………………………………………………… 269 Combining Statement of Changes in Fiduciary Net Position ………………………………………………….. 270

Nonmajor Discretely Presented Component Units ……………………………………………………………………………. Combining Statement of Net Position ……………………………………………………………………………………… 274 Combining Statement of Activities …………………………………………………………………………………………… 276

STATISTICAL SECTION

Index to Statistical Section

Schedule  1 – Net Position by Component ………………………………………………………………………………. 282 Schedule  2 – Changes in Net Position …………………………………………………………………………………….. 284 Schedule  3 – Fund Balances – Governmental Funds ……………………………………………………………… 288 Schedule  4 – Changes in Fund Balances – Governmental Funds …………………………………………… 290 Schedule  5 – Revenue Base ……………………………………………………………………………………………………… 292 Schedule  6 – Revenue Rates ……………………………………………………………………………………………………. 294 Schedule  7 – Revenue Payers by Industry/Category ………………………………………………………………. 296 Schedule  8 – Ratios of Outstanding Debt ……………………………………………………………………………….. 298 Schedule  9 – Pledged Revenue Coverage ………………………………………………………………………………… 300 Schedule 10 – Demographic and Economic Indicators …………………………………………………………….. 308 Schedule 11 – Principal Employers …………………………………………………………………………………………… 310 Schedule 12 – Education Enrollment ……………………………………………………………………………………….. 311 Schedule 13 – State Employees by Function. …………………………………………………………………………… 312 Schedule 14 – Operating Indicators by Function ……………………………………………………………………… 314 Schedule 15 – Capital Assets Statistics by Function ………………………………………………………………… 316 Schedule 16 – Miscellaneous Statistics …………………………………………………………………………………….. 318

West Virginia

vii

West Virginia

viii

STATE OF WEST VIRGINIA DEPARTMENT OF ADMINISTRATION

Mark D. Scott CABINET SECRETARY

December 17, 2021

The Honorable Jim Justice, Governor The Honorable Members of the West Virginia Legislature Citizens of the State of West Virginia

Dear Governor, Senators, Delegates, and Citizens:

I am pleased to present the 2021 Comprehensive Annual Financial Report (2021 CAFR) of the State of West Virginia for the fiscal year ended June 30, 2021. This report was prepared by the Financial Accounting and Reporting Section (FARS) within the Finance Division of the Department of Administration (Management).

The 2021 CAFR was prepared in conformity with the reporting model outlined by the Governmental Accounting Standards Board (GASB) Statements No. 34 and No. 35, and other related statements. This reporting model's objective is to provide a clear picture of the government as a single, unified entity as well as to provide traditional fund-based financial statements. The State of West Virginia's financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with generally accepted accounting principles in the United States (GAAP).

This independent audit of the financial statements of the State of West Virginia is part of a broader, federally mandated “Single Audit” designed to meet the requirements of federal grantor agencies. The standards governing Single Audit engagements require the independent auditors to report not only on the fair presentation of the basic financial statements, but also on West Virginia's internal controls and compliance with requirements applicable to major programs.

GAAP requires that Management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The State's MD&A can be found immediately following the Report of the Independent Auditors.

The 2021 CAFR consists of Management's representations concerning the financial information of the State of West Virginia. Consequently, Management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, Management of the State has

1900 KANAWHA BOULEVARD, EAST • BUILDING 1, ROOM E-119 • CHARLESTON, WEST VIRGINIA 25305-0120 • (304) 558-4331 • FAX: (304) 558-2999

established a comprehensive internal control framework that is designed to protect the government's assets from loss, theft, or misuse and to compile sufficiently reliable information for the preparation of the State's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the State's comprehensive framework of internal controls is designed to provide reasonable, rather than absolute, assurance that these financial statements are free from material misstatements. As Management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The State of West Virginia's financial statements were audited by Ernst & Young, LLP. The independent auditors concluded, based upon their audit and the reports of other auditors, that there was a reasonable basis for rendering an unmodified opinion.

Profile of the Government

The State of West Virginia provides a full range of services, including education, social and health services, transportation, public safety, conservation of natural resources, and economic development. In addition to general government activities, this report includes financial information regarding various discretely presented component units which are financially accountable to the State, or for which the nature and significance of their relationship with the State are such that their exclusion would cause this report to be misleading or incomplete. The criteria used to determine financial accountability of a particular entity are the appointment by a state official of a voting majority of the entity's governing body and (1) the ability of the State to impose its will on that entity or (2) the potential for the entity to provide specific financial benefits to or impose specific financial burdens on the State. See Note 1 (Summary of Significant Accounting Policies) for a comprehensive discussion of the criteria used in determining the State's financial reporting entity.

Budgetary control is maintained through legislative appropriations and the Executive Branch quarterly allotment process. Agencies submit budgetary requests to the State Budget Office. The State Budget Office compiles the Executive Budget on behalf of the Governor, who submits it to the Legislature. After the approval of the budget, the State Budget Office maintains control over the spending patterns of the State at the activity level and by use of the quarterly allotments. The State Auditor exercises control over spending at the annual appropriation level. All appropriations, except funds which are reappropriated, expire 31 days after fiscal year-end.

Economic Review

West Virginia leads the nation with its commitment to energy research and a diverse energy portfolio that includes not only coal but natural gas, wind, hydroelectric, geothermal, biomass, and solar. The State has long been, and remains today, one of America's leading net exporters of electricity. West Virginia is a net supplier of electricity to the regional grid and is among the top five states in the nation in net interstate sales of electricity. West Virginia remains competitive in low-cost energy.

D E P A R T M E N T O F A D M I N I S T R A T I O N O F F I C E O F T H E C A B I N E T S E C R E T A R Y

The Honorable Jim Justice, Governor The Honorable Members of the West Virginia Legislature Citizens of the State of West Virginia

xi

The State is the sixth-largest producer of marketed natural gas in the nation. This substantial increase in production can be attributed to the discovery of vast gas reserves in the Marcellus and Utica Shale formations beneath portions of the Appalachian region and the utilization of horizontal drilling techniques to access those reserves. The region's 6,000-foot-deep Marcellus Shale gas fields, extending from New York to West Virginia, are believed to contain more than 84 trillion cubic feet of recoverable natural gas, one of the world's largest natural gas fields.

West Virginia's business climate is among the best in the country and ranks tenth in the Business Facilities 2021 State Rankings Report. Business Facilities also ranked Charleston, WV, as third best business climate for populations less than 200k. Business Facilities considers the competitiveness of each state's infrastructure, workforce, economy, business friendliness, and access to capital when determining a state's business climate ranking.

West Virginia continues to diversify its economy, which includes industries such as technology, chemicals and polymers, automotive, manufacturing, natural gas, aerospace, metals, fulfillment distribution, and building products.

Global companies and organizations have selected West Virginia for their expansion because of its business climate and productive workforce. Below are examples of this economic growth in the State:

• Virgin Hyperloop announced it will locate its new Hyperloop Certification Center (HCC) on nearly 800 acres of land, spanning Tucker and Grant counties, where it will leverage intellectual capital and resources from West Virginia University, Marshall University, and from across the State. West Virginia was chosen over 17 others states for this development project an