2020 DELAWARE Comprehensive Annual Financial Report …

1 2020 DELAWAREC omprehensive Annual Financial ReportFor the fiscal Year Ended June 30, 2020 State of DelawareComprehensive Annual Financial ReportFor the fiscal Year Ended June 30, 2020 John CarneyGovernorRichard J. GeisenbergerSecretary, Department of FinanceJane L. Cole, CPAD irector, Division of AccountingPrepared by the Department of Finance, Division of AccountingThis document and related information is available at State of DELAWARE s Comprehensive Annual Financial Report was prepared by the Department of Finance, Division of Accounting, Financial Accounting & Reporting Section:Lisa Elder, CPAD eputy Director of Financial Reporting Melanie Schenck, CPAM anager of Financial Reporting and Internal ControlRobert C.

2 JohnsonState Accountant VAlaina EgolfState Accountant VMichael CraftState Accountant IVGeorgianna LuppinoState Accountant IVAmanda DavisState Accountant IVSpecial appreciation to:All fiscal and accounting personnel throughout the State whose efforts and cooperation to submit accurate, timely Financial data for their agencies made this Report possible. State of DelawareComprehensive Annual Financial ReportFor the fiscal Year Ended June 30, 2020 Table of ContentsINTRODUCTORY SECTIONL etter of of Achievement for Excellence in Financial State SECTIONI ndependent Auditors s Discussion and Financial StatementsGovernment - Wide Financial StatementsStatement of Net of Fund Financial StatementsBalance of the Governmental Funds Balance Sheet to the Statement of Net of Revenues, Expenditures, and Changes in Fund Balances (Deficits).

3 24 Reconciliation of the Net Changes in Fund Balances - Total Governmental Funds to Change in Net Position of Governmental Fund Financial StatementsStatement of Net of Revenues, Expenses and Changes in Fund Net of Cash Fund Financial StatementsStatement of Fiduciary Net of Changes in Fiduciary Net Presented Component Unit Financial StatementsCombining Statement of Net Statement of to the Financial StatementsNote 1 - Summary of Significant Accounting 2 - Cash, Investments and Restricted 3 - Fair Value of 4 - 5 - Interfund Balances and 6 - Capital 7 - Deferred Outflows and Inflows of 8 - General Obligation 9 - Revenue 10 - Loans and Notes 11 - Lease 12 - Other Long-Term 13 - Changes in Long-Term 14 - Risk 15 - Other Post-Employment Benefits (OPEB).

4 99 Note 16 - 17 - 18 - 19 - Governmental Fund 20 - Tax 21 - No Commitment 22 - Affiliated 23 - Component Unit Concession 24 - Subsequent Supplementary InformationNotes to Required Supplementary Comparison Schedule - General and Special About Infrastructure Assets Reported Using the Modified Public Employees Retirement System (DPERS)141 Schedule of Net Pension of - DELAWARE Transit Corporation - Pension Data149 Schedule of Net Pension of of Contents(continued)PageOPEB Trust153 Schedule of Net OPEB of Transit Corporation - OPEB Trust156 Schedule of Net OPEB Information - Combining StatementsCombining Statement of Fiduciary Net Statement of Changes in Fiduciary Net Trust Funds:Combining Statement of Net Statement of Changes in Net Agency Funds:Combining Statement of Changes in Assets and School District Funds.

5 Combining Balance Schedule of Revenues, Expenditures and Changes in Fund SECTIONS tatistical Section Position by in Net in Fund Balances, Governmental Balances, Governmental Income by Income Tax Income Tax Filers and Liability by Income of Outstanding Debt by Obligation Debt Revenue and Economic Employers by Employees by Indicators by Assets Statistics by Asset Balances by of Contents(continued)Introductory SectionComprehensive Annual Financial ReportDecember 24, 2020To the Citizens, Governor, and Members of the Legislature of the State of DELAWARE : It is my pleasure to present the Comprehensive Annual Financial Report (CAFR) for the State of DELAWARE (the State) for the fiscal year ended June 30, 2020.

6 This Report has been prepared in accordance with generally accepted accounting principles (GAAP) applicable to state and local governments, as prescribed by the Governmental Accounting Standards Board (GASB). The State continues to follow the recommendations of the Government Finance Officers Association of the United States and Canada (GFOA) for the form and content of government Financial reports and participates in the GFOA's program for the Certificate of Achievement for Excellence in Financial Reporting. Responsibility for both the accuracy of the data, as well as the completeness and fairness of the CAFR's presentation, rests with the Department of Finance. The management of the Department of Finance has established a Comprehensive framework of internal control to provide a reasonable basis for asserting that, to the best of our knowledge and belief, the information presented is accurate in all material respects and fairly sets forth the State's Financial position and results of operations in accordance with GAAP.

7 All disclosures necessary to enable the reader to gain an understanding of the State's Financial activities are included. The Report is presented in these sections: introductory, Financial , and statistical. The introductory section includes this transmittal letter, a list of selected State officials, the State's organizational chart, and the GFOA Certificate of Achievement. The Financial section includes the independent auditors' Report , management's discussion and analysis (MD&A), basic Financial statements, notes to the basic Financial statements, and required supplementary information. The statistical section includes selected Financial , demographic, and economic information. GASB Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments, requires that management provide a narrative introduction, overview, and analysis to accompany the basic Financial statements in the form of an MD&A.

8 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 STATE OFFICE BUILDING, 820 N. FRENCH ST., 8TH FLOOR, WILMINGTON, DE 19801 TELEPHONE: (302)577-8979 - FAX: (302)577-8982 PROFILE OF THE GOVERNMENT The State is located on the eastern seaboard of the United States and is bordered by the Atlantic Ocean, the DELAWARE Bay and the states of New Jersey, Pennsylvania and Maryland. The State is 96 miles long and has a land area of 1,955 square miles. Population estimates from the Census Bureau in July 2019 indicate over 973,000 people reside here. As the first state to ratify the United States Constitution on December 7, 1787, the State of DELAWARE is known as "The First State.

9 " The structure of the State's government, which is similar to other states, consists of three branches that operate through a system of checks and balances. The executive branch is comprised of the Governor, Lt. Governor, State Treasurer, State Auditor, Attorney General and Insurance Commissioner. The legislative branch is bicameral and consists of a 21-member Senate and a 41-member House of Representatives. The judicial branch includes the Supreme Court, Superior Court, Court of Chancery, and other courts. The State's reporting entity reflected in the CAFR, which is described more fully in Note 1 to the basic Financial statements, conforms to the requirements of GASB Statement No. 61, The Financial Reporting Entity: Omnibus and amendment of GASB Statements No.

10 14 and No. 34. The objective of this Statement is to improve Financial reporting for a governmental Financial reporting entity, to better meet user needs and to address reporting entity issues that have arisen since the issuance of Statements No. 14 and No. 34. Consequently, the transmittal letter, MD&A, and the Financial statements focus on the primary government and its activities. Although information pertaining to the discretely presented component units is provided, their separately issued Financial statements should be read to obtain a complete overview of their Financial position. The State budgets and controls its Financial activities on the cash basis of accounting during its fiscal year.