State of Arizona June 30, 2010 Highlights - Financial Statement and Single Audit

State of ArizonaREPORT General Fund Reports a Fund Balance DeficitHIGHLIGHTSFINANCIAL STATEMENT AND The State’s General Fund ended the year with a deficit of $755 million. This was a SINGLE AUDITSdecrease of $224 million from the prior year’s deficit of $979 million. The increase in Subject fund balance was the result of the following changes in revenues and other financing sources and expenditures and other financing uses between fiscal years:The State of Arizona issues a Comprehensive Annual Financial Report (CAFR) and General Fund revenues and other amount of corporate income taxes a Schedule of Expenditures financing sources increased $2.2 billion, collected during the fiscal year.of Federal Awards annually. or 10.7 percent, between fiscal years The State is responsible for • Transfers in from other funds 2009 and 2010, primarily as a result of preparing the CAFR and decreased by $194 million, primarily the following:schedule, maintaining strong due to a decrease in sweeps from internal controls, other funds to address budget demonstrating accountability • Long-term borrowing increased by for its use of public monies, shortfalls.$910 million due primarily to the and complying with federal issuance of $425 million in Lottery program requirements. As General Fund expenditures and other bonds and $999 million in the auditors, our job is to financing uses increased by $672 million, determine whether the State Department of Administration ...