COMMONWEALTH OF PUERTO RICO NOTES TO BASIC FINANCIAL STATEMENTS
11. INTERFUND AND INTRAENTITY TRANSACTIONS
Interfund receivables and payables at June 30, 2012 are summarized as follows (expressed in thousands):
Receivable Fund Payable Fund
COFINA Debt Service Pledged Sales and Use Tax $ 102,879
Lotteries General 67,559
Other governmental General 65,254
General Lotteries 27,180
General Unemployment 20,630
Other proprietary General 18,131
General Other governmental 1,684
General Other proprietary 803
304,120 $
Transfers from (to) other funds for the year ended June 30, 2012 are summarized as follows (expressed in thousands):
Transferee Fund Transferor Fund
COFINA Special Revenue COFINA Debt Service $ 963,236
General COFINA Special Revenue 952,615
Debt service General 745,201
General Debt service 704,889
COFINA Debt Service Pledged Sales and Use Tax 601,393
Other governmental General 409,840
Other governmental Other governmental 259,104
General Lotteries 165,142
General Unemployment 57,584
Debt service Other governmental 25,198
Other proprietary General 4,907
General Other proprietary 1,975
4,891,084 $
The principal purposes of the interfund transfers are to (expressed in thousands):
a. Transfer of ($963,236) from the COFINA Debt Service Fund to the COFINA Special Revenue Fund to be transferred to the General Fund for the purpose stated below.
b. Transfer of ($952,615) from the COFINA Special Revenue Fund to the General Fund to fund the Fiscal Stabilization Fund and the Local Stimulus Economic Plan and for the payment of extra constitutional debt.
c. Transfer of ($745,201) from the General Fund to the Debt Service Fund to make funds available for debt service payments.
e. Distribution of the sales and use tax for the use of COFINA Debt Service fund as required by enabling legislation for the payment of its bonds ($601,393).
f. Recognize as transfers the rental payments made by the Commonwealth’s agencies on properties leased by PBA, a blended component unit of the Commonwealth ($331,491); ($72,491) related to the revenues received from the Tobacco Settlement for the agreement managed by The Children’s Trust, a blended component unit of the Commonwealth; and ($5,858) to the Puerto Rico Maritime Shipping Authority for the payment of appropriation debts.
g. Transfers from the PBA debt service fund to the PBA special revenue fund ($118,050) and PBA capital project fund ($141,054).
h. Transfer of ($165,142) from the Lotteries to the General Fund to distribute the increase in net assets of the Lotteries for the use of the General Fund, as required by the Lotteries enabling legislation. i. Transfer from the Unemployment Insurance Fund related to the distribution of surplus cash
corresponding to the General Fund for the payment of administrative expenses ($57,584).
j. Transfer of ($25,198) from the Commonwealth’s Capital Projects Fund to the Debt Service Fund for the payment of interest of its bonds.
k. Transfer to provide local matching funds from the General Fund to the Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund and the Puerto Rico Water Pollution Control Revolving Fund, nonmajor enterprise funds of the Commonwealth ($4,907).
l. Transfer from the Drivers’ and Disability Insurance Funds related to the distribution of surplus cash to the General Fund ($1,975).
Interfund receivables and payables represent the pending settlements of the aforementioned transfers or transactions from current and prior years.
Due from (to) primary government are as follows (expressed in thousands):
Receivable Entity/Fund Amount Payable Entity/Fund Amount
Business-type activities $450,044 Puerto Rico Aqueduct and Sewer Authority $450,044 Governmental activities 115,232 Cardiovascular Center Corporation of
Puerto Rico and the Caribbean 28,769 565,276
$ Puerto Rico Ports Authority 20,006 Puerto Rico Metropolitan Bus Authority 15,695 Puerto Rico Infrastructure Financing Authority $188,256 Puerto Rico Tourism Company 12,546 Puerto Rico Health Insurance Administration 115,180 Puerto Rico Industrial Development Company 7,634 Puerto Rico Aqueduct and Sewer Authority 67,586 Puerto Rico Health Insurance Administration 7,239 Government Development Bank for Puerto Rico 62,045 Puerto Rico Highways and Transportation Authority 6,857 University of Puerto Rico 56,842 Puerto Rico Infrastructure Financing Authority 6,682 Puerto Rico Electric Power Authority 50,242 Governing Board of the 911 Service 4,508 Company for the Integral Development of the Puerto Rico Medical Services Administration 3,366 "Península de Cantera" 23,192 National Parks Company of Puerto Rico 1,930 Agricultural Enterprises Development Administration 16,356
Land Authority of Puerto Rico 12,303 $565,276 Puerto Rico Ports Authority 11,800
Puerto Rico Medical Services Administration 9,273 Puerto Rico Council on Education 5,221 Puerto Rico Tourism Company 3,853 Solid Waste Authority 3,675 University of Puerto Rico Comprehensive Cancer Center 3,649 Puerto Rico Metropolitan Bus Authority 1,909 Puerto Rico Public Private Partnerships Authority 1,529
Cardiovascular Center Corporation of Governmental activities:
Puerto Rico and the Caribbean 1,391 Due to component units 603,309 Notes payable 30,993 634,302
$ $634,302
The amount owed by PRASA of $450 million represents construction loans granted by the Puerto Rico Water Pollution Control Revolving Fund and the Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund, nonmajor enterprise funds, to finance the construction of capital assets for PRASA.
The amounts presented as due from primary government by the University of Puerto Rico and PREPA exclude approximately $24.7 million and $6.3 million, respectively, that were recorded and presented by the Commonwealth as notes payable in the accompanying statement of net assets (deficit) of the
Due from (to) component units are as follows (expressed in thousands):
Receivable Entity/Fund Amount Payable Entity/Fund Amount
Puerto Rico Electric Power Authority $ 122,846 Puerto Rico and Municipal Islands Maritime
Puerto Rico Ports Authority 32,655 Transport Authority $ 49,885 University of Puerto Rico 27,494 Puerto Rico Aqueduct and Sewer Authority 32,253 Land Authority of Puerto Rico 20,051 University of Puerto Rico 30,773 Puerto Rico Highways and Transportation Puerto Rico Tourism Company 23,943 Authority 14,142 Puerto Rico Medical Services Administration 19,764 Puerto Rico Aqueduct and Sewer Authority 14,109 Puerto Rico Highways and Transportation Authority 17,863 Puerto Rico Convention Center Cardiovascular Center Corporation of Puerto Rico
District Authority 11,718 and the Caribbean 15,762 Puerto Rico Medical Services Administration 7,320 Agricultural Enterprises Development Administration 15,059 State Insurance Fund Corporation 6,218 Puerto Rico Ports Authority 12,472 Puerto Rico Land Administration 1,306 National Parks Company of Puerto Rico 8,463 Solid Waste Authority 5,285 Subtotal 257,859 Puerto Rico Metropolitan Bus Authority 5,134 Farm Insurance Corporation of Puerto Rico 4,992 Puerto Rico Infrastructure Financing Authority 4,595 Puerto Rico Convention Center District Authority 4,057 Land Authority of Puerto Rico 3,745 Puerto Rico Trade and Export Company 1,429 Puerto Rico Industrial Development Company 1,306 Automobile Accidents Compensation Administration 1,079 Subtotal 257,859 Puerto Rico Highways and Transportation Authority 1,881,963 Special Communities Perpetual Trust 363,639 Puerto Rico Medical Services Administration 264,390 Port of the Americas Authority 219,349 Puerto Rico Health Insurance Administration 171,080 Puerto Rico Ports Authority 165,543 Puerto Rico Convention Center District Authority 145,889 Puerto Rico Aqueduct and Sewer Authority 109,788 Agricultural Enterprises Development Administration 96,212 University of Puerto Rico 90,580 Puerto Rico Industrial Development Company 87,842 Solid Waste Authority 74,416 Puerto Rico Electric Power Authority 49,781 Land Authority of Puerto Rico 38,884 Puerto Rico Infrastructure Financing Authority 36,885 Company for the Integral Development of the
"Península de Cantera" 23,103 University of Puerto Rico Comprehensive Cancer Center 19,886 National Parks Company of Puerto Rico 12,174 Economic Development Bank for Puerto Rico 9,893 Puerto Rico Public Private Partnerships Authority 6,050 Institute of Puerto Rican Culture 2,515 Puerto Rico Conservatory of Music Corporation 1,411 Government Development Bank for
Puerto Rico 3,871,273 3,871,273
4,129,132
$ $4,129,132
The rest of the loans receivable reported by GDB consists of the following (expressed in thousands):
Primary government — governmental activities $1,584,925
Other governmental entities and municipalities 2,369,551
Private sector 533,257
The loans receivables reported by GDB include $49.8 million presented within Other Restricted Assets in the accompanying Combining Statement of Net Assets (Deficit) — Major Component Units.
The loans to the primary government are presented by the Commonwealth within notes payable in the statement of net assets (deficit).
Expenses of the primary government include approximately $2.7 billion in capital and operational contributions made by the primary government to the component units as follows (expressed in thousands):
Puerto Rico Health Insurance Administration $ 945,033
University of Puerto Rico 763,469
Puerto Rico Aqueduct and Sewer Authority 393,650
Nonmajor components units 636,061
Total contributions made by primary government to component units $2,738,213 12. RESTRICTED ASSETS
Restricted assets of the primary government included in the basic financial statements at June 30, 2012 consist of cash, receivables, investments, and other assets to be used for the following purposes (expressed in thousands):
Governmental activities:
Debt service and sinking fund $2,795,818
Public Housing Administration — funds received from the U.S Housing
and Urban Development 1,836
Affordable housing program 1,258
Construction of governmental facilities 407,975
Payment of operational expenses and certain financing granted to the
Commonwealth, among other purposes 57,068
Other 242,615
Assets in liquidation 24,607
Total restricted assets of governmental activities $3,531,177
Business-type activities:
Payment of insurance benefits $ 490,667
Lending activities 566,942
Liabilities of the primary government payable from restricted assets consist of the following (expressed in thousands):
Governmental activities:
Debt service $ 742,583
Other 107,520
Accounts payable to contractors 407,975
Liabilities payable from restricted assets — governmental activities $1,258,078 Business-type activities:
Insurance benefits payable $ 104,789
Accounts payable and accrued liabilities 2,067
Liabilities payable from restricted assets — business-type activities $ 106,856 Restricted net assets of the primary government consist of the following (expressed in thousands):
Governmental activities restricted net assets:
Net assets in liquidation $ 24,607
Payment of operational expenses and certain financing granted to the
Commonwealth, among other purposes 192,163
Restricted for debt service 2,053,235
Affordable housing and related loan insurance programs 3,094 Total restricted net assets — governmental activities $2,273,099
Business-type activities restricted net assets:
Lending activities $ 564,875
Payment of insurance benefits 385,878
Total restricted net assets — business-type activities $ 950,753 Restricted assets of the component units included in the basic financial statements at June 30, 2012 are to be used for the following purposes (expressed in thousands):
Debt services and sinking fund requirements $4,372,782
Construction and betterments funds 1,395,482
Collateral for underlying securities 948,113
Educational funds 104,999
Financial assistance 105,090
Industrial incentives 6,264
Malpractice insurance fund 5,268
Other uses 579,087