2019 Commonwealth of Massachusetts Comprehensive Annual ...

Commonwealth of Massachusetts

Comprehensive Annual

Financial Report

For the Fiscal Year Ended June 30, 2019 Prepared by

Office of the Comptroller

Statewide Financial Reporting Team

Andrew W. Maylor

Comptroller of the Commonwealth

This document is available at the Comptroller's website:

Massachusetts Department of Higher Education STEM Nexus

STEM Regional Networks - Promoting Women in STEM

The 2019 Commonwealth of Massachusetts Comprehensive Annual Financial Report (CAFR) is pleased to highlight the important work that the Massachusetts Department of Higher Education is doing to promote women in STEM through its Nexus STEM Regional Networks. STEM is the acronym for science, technology, engineering and mathematics. Promoting and supporting women in STEM is critical to bridging the gender and pay gaps for women and improving the quality and scope of STEM opportunities in Massachusetts.

Why is STEM important for women in Massachusetts?

Although Massachusetts was recently ranked 2nd among all 50 states in terms of gender equity in STEM employment, the employment gap between women and men in STEM careers is still wide. While women hold more than half of healthcare jobs in Massachusetts, the State has only a modestly higher percentage of women in non-healthcare STEM occupations (29%), compared to the national average (25%). Overall, there are 2.5 men to every woman in STEM jobs, slightly better than the national rate of 3 men for every woman.

Managed by the Department of Higher Education the State's Regional STEM Networks serve as hubs for connecting educators, community leaders and industry partners to further excite and energize students about opportunities in STEM subjects. These networks are among the longest standing STEM Networks in the country.

The Massachusetts strategy with the STEM Nexus Regional Networks was to align economic, workforce, and education systems to coordinate systems based on skill needs in regions. The Governor designated a new set of regional boundaries that roll up existing workforce development areas into a smaller set of regions.

Each network is managed by an executive director and housed in either an institution of higher education or a regional employment board. Under the direction of the STEM Advisory Council, the networks play a key role in cultivating interest and engagement in STEM activities in their regions and implementing the priorities of the STEM Advisory Council.

Special thanks to the Massachusetts Department of Higher Education for curating and providing photos of women in STEM education.

Front Cover: The double helix is made up of photos submitted by (top to bottom): Roxbury Community College, Greenfield Community College and Holyoke Community College.

Back Cover: Special thanks to Massachusetts College of Liberal Arts for the top photo and mass.edu/stem/getinvolved/ pipelinenetworks.asp for the remaining photos on the back cover.

Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2019

Table of Contents

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL .............................................................................................. 1

CONSTITUTIONAL OFFICERS ........................................................................................ 6

COMMONWEALTH ORGANIZATIONAL STRUCTURE .................................................. 7

ADVISORY BOARD TO THE COMPTROLLER ................................................................ 8

ACKNOWLEDGEMENTS .................................................................................................. 9

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL

REPORTING....................................................................................................................... 11

FINANCIAL SECTION

INDEPENDENT AUDITORS' REPORT............................................................................. 15

MANAGEMENT'S DISCUSSION AND ANALYSIS............................................................ 19

BASIC FINANCIAL STATEMENTS .................................................................................... 35

GOVERNMENT-WIDE FINANCIAL STATEMENTS ......................................................... 35

Statement of Net Position................................................................................................ 36

Statement of Activities ..................................................................................................... 38

GOVERNMENTAL FUND FINANCIAL STATEMENTS .................................................... 41

Balance Sheet.................................................................................................................. 42

Reconciliation of Fund Balances to the Statement of Net Position ................................ 43

Statement of Revenues, Expenditures and Changes in Fund Balances .......................... 44

Reconciliation of Statement of Revenues, Expenditures and Changes in Fund

Balances of Governmental Funds to the Statement of Activities ............................... 45

PROPRIETARY FUND FINANCIAL STATEMENTS ......................................................... 47

Statement of Net Position................................................................................................ 48

Statement of Revenues, Expenses and Changes in Net Position..................................... 50

Statement of Cash Flows................................................................................................. 51

FIDUCIARY FUND FINANCIAL STATEMENTS .............................................................. 53

Statement of Net Position................................................................................................ 54

Statement of Changes in Net Position............................................................................. 55

DISCRETELY PRESENTED COMPONENT UNIT FINANCIAL STATEMENTS .............. 57

Statement of Net Position................................................................................................ 58

Statement of Revenues, Expenses and Changes in Net Position..................................... 59

TABLE OF CONTENTS ? NOTES TO THE BASIC FINANCIAL STATEMENTS ............. 61

Notes to the Basic Financial Statements......................................................................... 63

REQUIRED SUPPLEMENTARY INFORMATION-OTHER THAN MANAGEMENT'S

DISCUSSION AND ANALYSIS ...................................................................................... 135

Schedules of Revenues, Expenditures and Changes in Fund Balances ? Statutory

Basis ? Budget and Actual ? General Fund............................................................... 136

Explanation of Differences between Revenues, Expenditures and Other Financing

Sources (Uses) for the General Fund on a Budgetary Basis and GAAP Basis ......... 137

Notes to Required Supplementary Information ? Budgetary Reporting ......................... 138

Schedule of Changes in the State Employees' Retirement System (SERS)

Net Pension Liability and Related Ratios .................................................................. 140

Notes to the SERS Schedule ............................................................................................ 142

Schedule of Changes in the Massachusetts Teachers' Retirement System (MTRS)

Net Pension Liability and Related Ratios .................................................................. 144

Notes to the MTRS Schedule ........................................................................................... 146

Schedule of Changes in the State Retirees' Benefit Trust (SRBT)

Net OPEB Liability and Related Ratios..................................................................... 148

Notes to the SRBT Schedule ............................................................................................ 149

Schedule of Investment Returns ...................................................................................... 151

Schedule of Proportionate Share of the Net Pension Liability and Contributions -

SERS........................................................................................................................... 152

Schedule of Proportionate Share of the Net Pension Liability and Contributions -

MTRS.......................................................................................................................... 154

Schedule of Proportionate Share of the Net Pension Liability and Contributions -

BRS............................................................................................................................. 156

Notes to the Schedules of Proportionate Share of the Net Pension Liability and

Contributions ............................................................................................................. 157

Schedule of Employer Contributions - OPEB................................................................. 158

OTHER SUPPLEMENTARY INFORMATION ................................................................... 159

Combining Balance Sheet ? Other Governmental Funds............................................... 160

Combining Statement of Revenues, Expenditures and Changes in Fund Balances ?

Other Governmental Funds ....................................................................................... 164

Combining Statement of Revenues, Expenditures and Changes in Fund Balances -

Budgetary Basis ? Budget and Actual ? Other Budgeted Nonmajor Governmental

Funds.......................................................................................................................... 168

Combining Budget to GAAP Reconciliation ? Other Budgeted Nonmajor

Governmental Funds.................................................................................................. 174

Combining Statement of Net Position Available for Post - Employment Benefits ?

Pension and OPEB Trust Funds ................................................................................ 176

Combining Statement of Changes in Net Position Available for Post - Employment

Benefits ? Pension and OPEB Trust Funds ............................................................... 177

Combining Statement of Net Position Held in Trust for Pool Participants ? External

Investment Trust Fund................................................................................................ 178

Combining Statement of Changes in Net Position Held in Trust for Pool Participants ? External Investment Trust Fund.............................................................................. 179

Combining Statement of Changes in Assets and Liabilities ? Agency Funds ................. 180

Combining Statement of Net Position ? Nonmajor Discretely Presented Component

Units........................................................................................................................... 182

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