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COLE+REED p.c. CERTIFIED PUBLIC ACCOUNTANTS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY AND CREDIT ENHANCEMENT RESERVE FUND June 30, 2008 OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 MANAGEMENT'S DISCUSSION AND ANALYSIS i AUDITED FINANCIAL STATEMENTS Independent Auditors' Report 1 Statement of Net Assets 3 Statement of Revenues, Expenses and Changes in Net Assets 4 Statement of Cash Flows 5 Notes to Financial Statements 7 REPORT REQUIRED BY GOVERNMENT AUDITING STANDARDS Independent Auditors' Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 16 SUPPLEMENTAL INFORMATION Schedule of Net Assets - Quality Jobs Investment Program 18 Schedule of Revenues, Expenses and Changes in Net Assets - Quality Jobs Investment Program 19 Schedule of Net Assets - Tax-Exempt Guaranty Pool.. 20 Schedule of Revenues, Expenses and Changes in Net Assets - Tax-Exempt Guaranty Pool 21 Management's Discussion and Analysis THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY This section of the Oklahoma Development Finance Authority's (the Authority's) annual financial report presents a discussion and analysis of its financial performance for the year ended June 30, 2008. Please read it in conjunction with the financial statements which follow this section. The following table summarizes the financial position and results of operations of the Authority for 2008 and 2007. Assets: 2008 2007 Current assets $ 12,096,718 $ 11,268,469 Capital assets 588,068 601,391 Other non-current assets 1,507,882 2,322,354 Total Assets 14,192,668 14,192,214 Liabilities: Current liabilities 41,941 42,615 Other non-current liabilties 32,728 Bonds payable 9,999,000 9,999,000 Total Liabilities 10,040,941 10,074,343 Net Assets: Invested in capital assets 588,068 601,391 Unrestricted 3,563,659 3,516,480 Total Net Assets $ 4,151,727 $ 4,117,871 Operating Revenues: Fee revenue $ 714,282 $ 682,590 Interest and Investment income 501,552 580,225 Other 37,422 37,422 Total Operating Revenues 1,253,256 1,300,237 Operating Expenses: Interest expense 412,727 537,688 Other operating expenses 806,673 679,151 Total Operating Expenses 1,219,400 1,216,839 Change in net assets 33,856 83,398 Total net assets, beginning of the year 4,117,871 4,034,473 Total net assets, end of the year $ 4,151,727 $ 4,117,871 Management's Discussion and Analysis THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY OVERVIEW OF THE FINANCIAL STATEMENTS The three financial statements presented within the financial statements are as follows: • Statement of Net Assets - This statement presents information reflecting the Authority's assets, liabilities and net assets. Net assets represent the amount of total assets less total liabilities. The statement of net assets is categorized as to current and non-current assets and liabilities. For purposes of the financial statements, current assets and liabilities are those assets and liabilities with immediate liquidity or which are collectible or becoming due within 12 months of the statement date. The Authority's investment balances are considered current assets, as the Authority has historically experienced a high portfolio turnover rate. • Statement of Revenues, Expenses and Changes in Net Assets - This statement reflects the operating revenues and expenses, as well as non-operating revenues and expenses during the operating year. Major sources of operating revenues are administrative fee income and major sources of operating expenses being personnel and interest expense. The change in net assets for an enterprise fund is similar to net profit or loss for any other business enterprise. • Statement of Cash Flows - The statement of cash flows is presented on the direct method of reporting which reflects cash flows from operating, financial and investing activities. Cash collections and payments are reflected in this statement to arrive at the net increase or decrease in cash for the calendar year. FINANCIAL HIGHLIGHTS • The Authority's total assets at June 30, 2008 increased by approximately $500 which is very consistent with the prior year. • Total liabilities decreased for the year. The approximately $33,400decrease in liabilities compared to the prior year is primarily due to a decrease in unearned revenue. • The decrease in total operating revenues of approximately $47,000 in 2008 is due to increased fee revenues of approximately $31,700, and a net decrease in interest and investment income of approximately $78,700. • The increase in total operating expenses of approximately $2,500 in 2008 compared to the prior year is due to a decrease of interest expense of approximately $125,000and an approximate increase of other general expenses of $127,500. • Total net assets increased by approximately $33,900between July I, 2007 and June 30, 2008. 11 Management's Discussion and Analysis THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY OVERVIEW OF THE FINANCIAL STATEMENTS CAPITAL ASSETS As of June 30, 2008, the Authority had invested approximately $809,000 in capital assets, including land, buildings, automobiles, furniture and equipment. Net of accumulated depreciation, the Authority's net capital assets at June 30, 2008 total approximately $588,000. The Authority's net capital assets at June 30, 2007 totaled approximately $601,000. DEBT ADMINISTRATION As of June 30, 2008, the Authority had approximately $1.6 billion of conduit debt (non-recourse debt to the Authority that is repaid solely from revenues derived from the related facilities) outstanding. This is an approximate $100 million increase from June 30, 2007. The Authority also had outstanding as of June 30, 2008 and 2007, $9,999,000 of bonds related to the Oklahoma Quality Jobs Investment Program, a designated fund within the Authority. CONTACTING THE AUTHORITY'S MANAGEMENT This financial report is designed to provide patrons and interested parties with a general overview of the Authority's finances and to demonstrate the Authority's accountability for its finances. If you have questions about this report or need additional financial information, contact: James G. Fulmer, President The Oklahoma Development Finance Authority 5900 N Classen Court Oklahoma City, Oklahoma 73118 Telephone: 405-842-1145 III Independent Auditors' Report The Board of Directors The Oklahoma Development Finance Authority We have audited the statement of net assets of the Oklahoma Development Finance Authority ("ODFA"), a component unit of the state of Oklahoma, as of June 30, 2008, and the related statements of revenues, expenses and changes in net assets and cash flows for the year then ended. We have also audited the financial statements of ODFA's discretely presented component unit, the Credit Enhancement Reserve Fund (lithe Fund"). Collectively, ODFA and the Fund are referred to as the II Authority". These financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on the Authority's financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority and its discretely presented component unit as of June 30, 2008, and the results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Management's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurements and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. 1 ------++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 531 Couch Dr. Suite 200 Oklahoma City, OK 73102-2251 TEL 405.239.7961 FAX 405.235.0042 WEB www.coleandreed.com RSM McGladrey Network An Independently Owned Member In accordance with Government Auditing Standards, we have also issued our report dated October 17,2008, on our consideration of the Authority's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting and compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was made for the purpose of forming an opinion on the basic financial statements of the Authority, taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Oklahoma City, Oklahoma October 17,2008 2 STATEMENT OF NET ASSETS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 Component Unit Total (Credit Primary Enhancement Government Reserve Fund) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,219,710 $ 214,755 Interest receivable 79,137 2,204 Fees receivable and other current assets 375,866 25,300 Notes receivable 202,690 Investments 10,219,315 891,553 TOTAL CURRENT ASSETS 12,096,718 1,133,812 NONCURRENT ASSETS Notes receivable, net of allowance for uncollectible loans of $226,660 1,357,882 Capital assets, net of accumulated depreciation of $221,043 588,068 Other assets 150,000 TOTAL NONCURRENT ASSETS 2,095,950 TOTAL ASSETS 14,192,668 1,133,812 LIABILITIES CURRENT LIABILITIES Accounts payable 9,213 Deferred revenue 32,728 24,068 TOTAL CURRENT LIABILITIES 41,941 24,068 NONCURRENT LIABILITIES Bonds payable 9,999,000 Deferred revenue 247,388 Reserve for losses 51,371 TOTAL NONCURRENT LIABILITIES 9,999,000 298,759 TOTAL LIABILITIES 10,040,941 322,827 NET ASSETS Invested in capital assets 588,068 Unrestricted 3,563,659 810,985 TOTAL NET ASSETS $ 4,151,727 $ 810,985 See accompanying notes to financial statements. 3 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30, 2008 Component Unit Total (Credit Primary Enhancement Government Reserve Fund) OPERATING REVENUES Fee revenue $ 714,282 $ Insurance premiums 56,878 Interest and investment income 501,552 36,763 Other 37A22 TOTAL OPERATING REVENUES 1,253,256 93,641 OPERATING EXPENSES Personnel services 526,595 Professional services 52,520 1,801 Administrative 58,319 3,500 Program expenses 55)15 Depreciation 32,572 Interest expense 412,727 Other 81,552 TOTAL OPERATING EXPENSES 1,219AOO 5,301 OPERATING INCOME 33,856 88,340 NET ASSETS AT BEGINNING OF YEAR 4)17,871 722,645 NET ASSETS AT END OF YEAR $ 4)51,727 $ 810,985 See accompanying notes to financial statements. 4 STATEMENT OF CASH FLOWS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30,2008 Component Unit Total (Credit Primary Enhancement Government Reserve Fund) CASH FLOWS FROM OPERATING ACTIVITIES Cash received for fees and insurance premiums $ 623,934 $ 57,092 Cash paid to suppliers and employees (774,775) (6,491) Interest and investment income received 626,070 42,336 Interest paid (412,727) Other receipts 38,394 NET CASH PROVIDED BYOPERATING ACTIVITIES 100,896 92,937 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payment for acquisition of capital assets (27,587) Sale of capital assets 8,338 NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES (19,249) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments (12,444,988) (1,775,609) Proceeds from sale of investments 12,086,617 1,762,519 Payments received on notes receivable 1,165,664 Advances on notes receivable (375,000) NET CASH USED PROVIDED BY (USED IN) INVESTING ACTIVITIES 432,293 (13,090) NET INCREASE IN CASH AND CASH EQUIVALENTS 513,940 79,847 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 705,770 134,908 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,219,710 $ 214,755 (Continued) See accompanying notes to financial statements. 5 STATEMENT OF CASH FLOW5--Continued OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 3D, 2008 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities Provision for uncollectible loans Depreciation Change in assets and liabilities: Fees receivable and other current assets Interest receivable Accounts payable Deferred revenue and reserve for losses NET CASH PROVIDED BY OPERATING ACTIVITIES See accompanying notes to financial statements. 6 Total Primary Government Component Unit (Credit Enhancement Reserve Fund) $ 33,856 $ 88,340 50,000 32,572 (56,648) (18,975) 74,518 5,573 (674) (1,190) (32,728) 19,189 $ 100,896 $ 92,937 NOTESTO FINANCIAL STATEMENTS OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE A--SUMMARYOF SIGNIFICANTACCOUNTING POLICIES Reporting Entity: The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion could cause the financial statements to be misleading or incomplete. The Oklahoma Development Finance Authority (the" Authority") is a tax-exempt public trust organized under the laws of the state of Oklahoma (the "State") by Declaration of Trust dated November I, 1974. The Authority (previously the Oklahoma Development Authority) amended its Declaration of Trust and changed its name to the Oklahoma Development Finance Authority in 1988. The beneficiary of the Authority is the State. The Authority was established to provide financing for both public and private entities in the State. The Authority obtains funds through the issuance of bonds and notes. Private entities qualifying for Authority financing are generally agricultural, civic, educational, health care, industrial, or manufacturing enterprises. Financing is also provided to governmental agencies and instrumentalities of the State. For public programs, bond and note proceeds are deposited into trust funds to be loaned out to qualifying program participants. Interest from the trust investments and the loans is used to pay interest on the bonds and notes issued by the Authority. The Authority is a component unit of the State and is combined with other similar funds to comprise the Proprietary Component Units of the State. In evaluating how to define the Authority, for financial reporting purposes, management has determined that there is one entity over which the Authority exercises significant influence. Significant influence or accountability is based primarily on operational or financial relationships with the Authority. The Authority exercises significant influence or accountability over the Oklahoma Credit Enhancement Reserve Fund (the "Fund"). Under Oklahoma statutes, the Credit Enhancement Reserve Fund Act (the "Act") created the Fund to be managed, administered, and utilized by the Authority solely to secure the payment of interest, principal, and premium, if any, on the revenue bonds and other financial obligations issued by the Authority for the purpose of enhancing and supporting the credit of such obligations. In addition, the Act authorizes the Fund to issue bonds which are the direct and general obligations of the State (to which the full faith and credit of the State is pledged) in a total principal amount not to exceed $100,000,000for the purpose of generating monies to be deposited to the Fund. The Fund is a discretely presented component unit of the Authority and is reported as an enterprise fund. The Fund does not prepare separately issued financial statements. Collectively, the Authority and the Fund are also referred to as the Authority. 7 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE A--SUMMARYOF SIGNIFICANTACCOUNTING POLICIES--Continued Nature of Activities: The Authority administers a broad mix of programs, as noted below, to meet the various economic needs of the State. Conduit Lending Program: The Conduit Lending Program is completed through the authorization and sale of revenue bonds, notes, certificates of participation, or other evidence of indebtedness. Funds generated by such sale are then available for loans to qualified borrowers. The Authority does not guarantee such obligations. First-Time Farmer Loan Program: The First-Time Farmer Loan Program is administered in conjunction with the Oklahoma Department of Agriculture and was established during 1994. This program is administered by the Authority using federal and state tax-exempt bond financing to reduce a farmer's interest rate for capital purchases. This program is structured so that a direct loan can be made between a borrower and a lender or between a buyer and a seller. Small Business Financing Program: The Small Business Financing Program continues its efforts to provide additional funds and financing opportunities to Oklahoma's small business community. The Authority has assisted Rural Enterprises, Inc. ("REI") of Durant, Oklahoma, with the development of their SBA Micro Loan Program by furnishing seed money for the program. Quality TobsInvestment Program: The Quality Jobs Investment Program encourages the growth of equity and near equity capital for Oklahoma businesses. Under this program, the Authority can match dollar for dollar an investment enterprise's private capital for helping new and expanding businesses. The Program was created by the Authority and funded through a bond issuance in the amount of $9,999,000in 1997with the proceeds restricted to fund the program. Tax-Exempt Guaranty Pool: The Tax-Exempt Guaranty Pool (the "Pool") is designed to assist the Oklahoma Industrial Finance Authority (the "OIFA") in issuing tax-exempt bonds. The Pool acts as a private credit enhancement reserve fund to guarantee any loss after all resources of the OIFA have been exhausted. The guarantee is limited to the resources of the Pool. The program was created by the Authority and funded through a transfer of $500,000from the Authority's unrestricted net assets. The Public Facilities Financing Program: The Public Facilities Financing Program is designed to provide low-cost financing to an applying governmental entity for practically any need of the entity. In order to qualify, the govern...-rnentaelntity's project must contribute to the economic viability or attractiveness of the area impacted by the project, demonstrate strong public support, and the governmental entity must demonstrate the ability to repay borrowed funds. 8 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCEAUTHORITY June 30,2008 NOTE A--SUMMARYOF SIGNIFICANTACCOUNTING POLICIES--Continued The Fund administers the following program: Credit Enhancement Reserve Fund ("CERF") Lending Program - The Authority is concentrating on CERF lending activities involving municipal or other governmentally supported obligations, primarily through the Public Facilities Financing Program. Basis of Accounting: The operations of the Authority and the Fund are accounted for as enterprise funds on an accrual basis in order to recognize the flow of economic resources. Under this basis, revenues are recognized in the period in which they are earned, and expenses are recognized in the period in which they are incurred. Balances classified as operating revenues and expenses are those which comprise the Authority's principal ongoing operations. Since the Authority's operations consist of administering economic development through the issuance of bonds and notes, most revenues and expenses are considered operating. The Authority applies Financial Accounting Standards Board ("FASB") pronouncements and Accounting Principles Board opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case GASB prevails. Use of Estimates: Accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Cash and Cash Equivalents: The Authority and the Fund, for purposes of reporting cash flows, consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Fees Receivable and Other Current Assets: The majority of the fees receivable and other current assets consist of fees receivable. Fees receivable include amounts billed for administrative fees as of June 30, 2008. Fees receivable are accrued based on the annual fee as stipulated in the various bond indentures. Investments: The Authority is currently invested in various SBA Loan Pools, certificates of deposit and us. Treasury Bills. The SBALoan Pools are recorded at fair value based on the average of two bids from independent brokers. U.S. Treasury Bills and certificates of deposit are recorded at cost which approximates fair value. Unrealized gains and losses and interest income are included in investment income. 9 NOTES TO FINANCIAL STATEMENTS---Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE A--SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES---Continued Capital Assets: Capital assets are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over an estimated useful life of 39 years for the building and five years for automobiles, furniture, and equipment. Reserve for Losses: The reserve for losses is an estimate based on management's evaluation of the loan portfolio (those obligations guaranteed by the Fund) giving consideration to general economic conditions, the nature and volume of the loan portfolio, and the historic loan loss experience of the Fund. It is maintained at a level that management considers adequate to absorb potential losses in the loan portfolio. Deferred Revenue: On certain debt financing which the Fund is guaranteeing, the Fund will receive all of its insurance premiums in advance. These premiums are deferred and recognized as revenue over the life of the various debt obligations on a straight-line basis. Income Taxes: The Authority, as an integral part of the State, is exempt from federal and state income taxes. NOTE B--DEPOSITSAND INVESTMENTS Custodial Credit Risk - Deposits: Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The Authority's deposit policy for custodial credit risk is described as follows: The Authority requires that balances on deposit with financial institutions, including trustees related to the Authority's bonds, be insured by Federal Deposit Insurance or collateralized by securities held by the cognizant Federal Reserve Bank, or invested in U.S. Government obligations, in the Authority's name. Interest Rate Risk: The Authority does not have a formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Concentration of Credit Risk: The Authority places no limit on the amount the Authority may invest in anyone issuer. More than 5% of the Authority's investments are in SBALoan Pools, certificates of deposit and U.S. Treasury Bills. These investments comprise 100% of the Authority's total investments. 10 NOTES TO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 NOTE B--DEPOSITSAND INVESTMENTS--Continued The Authority's and the Fund's deposits and investments consisted of the following at June 30, 2008: Type Carrying Value Deposits: Authority Fund Demand $ 1,219,710 $ 214,755 Investments: Certificateof deposit $ 4,645,201 $ SBALoan Pools 2,299,047 USTreasury Bills 3,275,067 891,553 $ 10,219,315 $ 891,553 Deposits: At June 30, 2008, the bank balances of the Authority's and the Fund's cash deposits were $1,219,710and $214,755, respectively. All bank balances were covered by Federal Deposit Insurance or collateralized with securities held by the Authority's or Fund's agent in the Authority's or Fund's name. Investments: The Authority's investments in SBA Loan Pools of $2,299,047 are not evidenced by securities; therefore, these investments are not subject to risk categorization. The Authority's and the Fund's investments in US Treasury Bills of $3,275,067are backed by the full faith and credit of the U. S. Government. The Authority's certificates of deposit totaling $4,645,201have original maturity dates exceeding three months and therefore are classified as investments. Investment Maturities (in Years) Fair Less One to Six to More Investment Type Value Than One Five Ten Than Ten Certificate of deposit $ M45)01 $ 4M5)01 $ - $ - $ Authority's SBA Loan Pools 2,299,047 252,833 2,046)14 Authority's U.s. Treasury Bills 3,275,067 3,275,067 $ 10)19)15 $ 7,920)68 $ - $ 252,833 $ 2,046,214 Fund's U'S. Treasury Bills $ 891,553 $ 891,553 $ - $ - $ 11 NOTES TO FINANCIAL STATEMENT5--Continued OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 NOTE C--NOTES RECEIVABLE At June 30, 2008, the Authority's Quality Job Investment Program has various notes receivable from four entities totaling $1,664,517. The Authority has provided an allowance for loan losses of $226,660 due to uncertainties of collection in connection with one of the notes; however, the Authority believes that the remaining balances are collectible. The Authority's Operating Fund has a note receivable from one entity totaling $122,715 as of June 30, 2008. The notes bear interest at variable interest rates ranging from the national prime rate to national prime plus 300 basis points. Interest is compounded monthly, quarterly or annually, as defined in each note agreement. The notes mature from January 2009 to October 2014 and are unsecured. NOTE D--CAPITAL ASSETS Capital assets activity for the year ended June 30, 2008, was as follows: Estimated Useful Life June 30, June 30, (Years) 2007 Additions Reductions 2008 N/A Land $ 100,000 $ $ $ 100,000 39 Buildings 563,185 563,185 5 Automobiles 79,823 26,092 (26,334) 79,581 5 Furniture and equipment 64,850 1,495 66,345 807,858 27,587 (26,334) 809,111 Accumulated depreciation (206,467) (32,572) 17,996 (221,043) $ 601,391 $ (4,985) $ (8,338) $ 588,068 12 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE E--NONRECOURSEDEBT,NOTES RECEIVABLE,AND FUNDS IN TRUST (Conduit Debt) Certain financing agreements are structured such that the debt is to be repaid solely from the revenues derived from the related facilities leased or acquired with proceeds of the debt obligations, or from the disposition of collateral. The Authority does not hold these notes receivable or trust investments in amounts equal to the long-term financings. As of June 30, 2008,the Authority had 266 series of debt outstanding totaling approximately $2.0billion in the original amount of issuance with approximately $1.6 billion outstanding for all public and private programs. Of this amount, the Authority had 218 series of debt outstanding for non-state entities totaling approximately $1.5 billion in the original amount of issuance with approximately $1.3billion outstanding. The financings are not the general obligations of the Authority, and it is the opinion of the Authority's management and its legal counsel that, in the event of default by the borrower(s), the Authority has no responsibility for repayment of such financings. Accordingly, the nonrecourse debt and the related notes receivables and trust investments have been excluded from the financial statements. NOTE F--THE OKLAHOMA CREDITENHANCEMENT RESERVEFUND Under the constitution of the State, the Fund may issue bonds of the State, to be known as the Oklahoma Credit Enhancement Reserve General Obligation Bonds, in a total principal amount of $100,000,000for the sole purpose of generating monies to be deposited to the Fund if there are insufficient assets to meet insurance obligations. The Fund is managed, administered, and utilized by the Authority solely to secure the payment of principal and interest on revenue bonds and other financial obligations issued by the Authority for the specific purpose of enhancing and supporting the credit of such obligations. As of June 30, 2008, there were approximately $45 million of outstanding financial obligations insured by the Fund. The Authority has accrued a reserve for losses of approximately $51,000 as of June 30, 2008, to cover potential losses from the outstanding financial obligations insured by the Fund. Through June 30, 2008, Oklahoma Credit Enhancement Reserve Fund General Obligation Bonds have not been issued since it is the intention of the Authority to utilize existing assets to meet obligations arising from losses reserved by the Fund. 13 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE G--TAX-EXEMPTGUARANTYPOOL In August 1995, the Authority's Board of Directors created the Pool to assist the OIFA in obtaining tax-exempt financing on OIFA projects. The Pool was funded in fiscal year 1998 with $500,000 of unrestricted monies held by the Authority. The Pool sets up a private credit enhancement reserve fund to guarantee a portion of any loss up to the amount in the Pool after all other resources to collect by OIFA have been exhausted. At no time will the liability of the Pool be greater than the $500,000 funding plus any premiums retained by the Pool. At June 30, 2008, there were approximately $6.1 million of outstanding financial obligations insured by the Pool. All obligations are making payments in a timely manner. NOTE H--RELATEDPARTIES On July I, 1992, the Authority entered into an agreement with OIFA. Under this agreement, OIFA will provide the Authority with staff support and administrative services. The Authority has agreed to pay OIFA its proportionate costs of OIFA employees including related benefits, taxes, and other costs. Based on this agreement, the Authority does not accrue annual vacation or sick leave. The Authority paid OIFA approximately $465,000 during the year ended June 30, 2008, to cover its share of the aforementioned expenses. The current agreement is in effect on a month-to-month basis. NOTE I--BONDSPAYABLE The Authority has issued revenue bonds to fund loans to various investment enterprises in connection with the Quality Jobs Investment Program. Revenue bonds outstanding at June 30, 2008, are as follows: Oklahoma Development Finance Authority Oklahoma Quality Jobs Investment Program Revenue Bond, Series 1996, due April 1, 2031 $ 9,999,000 The registered owner of the bonds is the OIFA, a related party. There were no additions or retirements of revenue bonds during the year ended June 30, 2008. The original maturity date of the bond was April I, 2006. However, on April I, 2006 the Authority and OIFA signed an agreement to extend the maturity date to April 1, 2031. 14 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE I--BONDSPAYABLE--Continued Interest rates are variable with payments due quarterly with principal and all unpaid interest due at maturity. The variable rate of interest is equal to the OIFA's cost of funds on its outstanding variable rate bond issues. The interest rate at June 30, 2008 was 2.5%. The bonds are payable solely from and secured by (1) revenues derived by the Quality Job Investment Program from loan repayments, (2) funds in the Quality Job Investment Program fund established by the Authority to support this bond and (3) a Credit Enhancement Reserve Fund guarantee insurance policy issued to the Oklahoma Industrial Finance Authority. Neither the State nor any political subdivision is obligated to pay principal or interest on the bonds. The Authority does not have any taxing authority. The annual debt service requirements to pay principal and interest on the Quality Jobs Investment Program Revenue Bond, Series 1996, are as follows: Year Ending Tune30, Principal Interest 2009 $ $ 249,975 2010 249,975 2011 249,975 2012 249,975 2013 249,975 2014-2018 1,249,875 2019-2023 1,249,875 2024-2028 1,249,875 2029-2031 9,999,000 687,430 Total $ 9,999,000 $ 5,686,930 Interest requirements for the variable rate debt were determined by using the rate in effect at June 30, 2008. NOTE J--LEASEOBLIGATrONS The Authority leased a portion of its office space to the OIFA and the State Bond Advisor. Rental income from leases for the year ended June 30, 2008, was approximately $37,000. 15 Independent Auditors' Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards The Board of Directors The Oklahoma Development Finance Authority We have audited the financial statements of the Oklahoma Development Finance Authority and the Credit Enhancement Reserve Fund, collectively referred to as the "Authority", as of and for the year ended June 30, 2008, and have issued our report thereon dated October 17, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws and regulations, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Authority's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over financial reporting A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. 16 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 531 Couch Dr. Suite 200 Oklahoma City, OK 73102·2251 TEL 405.239.7961 FAX 405.235.0042 WEB www.coleandreed.com RSM McGladrey Network An Independently Owned Member A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management and the Board of Directors and is not intended to be and should not be used by anyone other than these specified parties. Oklahoma City, Oklahoma October 17, 2008 17 SCHEDULE OF NET ASSETS - QUALITY JOBS INVESTMENT PROGRAM OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 ASSETS CURRENT ASSETS Cash and cash equivalents Interest receivable Notes receivable Investments TOTAL CURRENT ASSETS NONCURRENT ASSETS Notes receivable, net of allowance for uncollectible loans of $226,660 TOTAL ASSETS LIABILITIES LONG- TERM LIABILITIES Bonds payable TOTAL LIABILITIES NET ASSETS (DEFICIT) TOTAL NET ASSETS (DEFICIT) 18 $ 336,845 71,874 187,105 7,190,993 7,786,817 1,250,752 9,037,569 9,999,000 9,999,000 (961,431) $ (961,431) SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - QUALITY JOBS INVESTMENT PROGRAM OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30, 2008 OPERATING REVENUES Investment income $ 280,042 Interest income on projects 55,222 TOTAL OPERATING REVENUES 335,264 OPERATING EXPENSES Professional services 8,850 Interest expense 412,667 Other 53,201 TOTAL OPERATING EXPENSES 474,718 CHANGE IN NET ASSETS (139,454) TOTAL NET ASSETS (DEFICIT) AT BEGINNING OF YEAR (821,977) TOTAL NET ASSETS (DEFICIT) AT END OF YEAR $ (961,431) 19 SCHEDULE OF NET ASSETS - TAX-EXEMPT GUARANTY POOL OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 ASSETS CURRENT ASSETS Cash and cash equivalents Interest receivable Investments TOTAL ASSETS LIABILITIES CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS TOTAL NET ASSETS 20 $ 52)87 697 668,269 721)53 721)53 $ 721)53 SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - TAX-EXEMPT GUARANTY POOL OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30, 2008 OPERA TING REVENUES Fee revenue $ 22,076 Investment income 23,894 45,970 OPERATING EXPENSES Guaranty obligation 46,740 Investment expense 60 46,800 CHANGE IN NET ASSETS (830) TOTAL NET ASSETS AT BEGINNING OF YEAR 721,983 TOTAL NET ASSETS AT END OF YEAR $ 721,153 21 MAY 20 7011 -. 531 Couch Drive, Suite 200 Oklahoma City, OK 73102-2251 TEL 405.239.7961 FAX 405.235.0042 WEB www.coleandreed.com RSM McGladrey Network An Independently Owned Member
Object Description
Description
Title | Development Finance Authority Credit Enhancement Fund 2007/08 |
OkDocs Class# | D1125.3 A911 2007/08 |
Digital Format | PDF, Adobe Reader required |
ODL electronic copy | Deposited by agency in print; scanned by Oklahoma Department of Libraries 7/2011 |
Rights and Permissions | This Oklahoma state government publication is provided for educational purposes under U.S. copyright law. Other usage requires permission of copyright holders. |
Language | English |
Full text | COLE+REED p.c. CERTIFIED PUBLIC ACCOUNTANTS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY AND CREDIT ENHANCEMENT RESERVE FUND June 30, 2008 OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 MANAGEMENT'S DISCUSSION AND ANALYSIS i AUDITED FINANCIAL STATEMENTS Independent Auditors' Report 1 Statement of Net Assets 3 Statement of Revenues, Expenses and Changes in Net Assets 4 Statement of Cash Flows 5 Notes to Financial Statements 7 REPORT REQUIRED BY GOVERNMENT AUDITING STANDARDS Independent Auditors' Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 16 SUPPLEMENTAL INFORMATION Schedule of Net Assets - Quality Jobs Investment Program 18 Schedule of Revenues, Expenses and Changes in Net Assets - Quality Jobs Investment Program 19 Schedule of Net Assets - Tax-Exempt Guaranty Pool.. 20 Schedule of Revenues, Expenses and Changes in Net Assets - Tax-Exempt Guaranty Pool 21 Management's Discussion and Analysis THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY This section of the Oklahoma Development Finance Authority's (the Authority's) annual financial report presents a discussion and analysis of its financial performance for the year ended June 30, 2008. Please read it in conjunction with the financial statements which follow this section. The following table summarizes the financial position and results of operations of the Authority for 2008 and 2007. Assets: 2008 2007 Current assets $ 12,096,718 $ 11,268,469 Capital assets 588,068 601,391 Other non-current assets 1,507,882 2,322,354 Total Assets 14,192,668 14,192,214 Liabilities: Current liabilities 41,941 42,615 Other non-current liabilties 32,728 Bonds payable 9,999,000 9,999,000 Total Liabilities 10,040,941 10,074,343 Net Assets: Invested in capital assets 588,068 601,391 Unrestricted 3,563,659 3,516,480 Total Net Assets $ 4,151,727 $ 4,117,871 Operating Revenues: Fee revenue $ 714,282 $ 682,590 Interest and Investment income 501,552 580,225 Other 37,422 37,422 Total Operating Revenues 1,253,256 1,300,237 Operating Expenses: Interest expense 412,727 537,688 Other operating expenses 806,673 679,151 Total Operating Expenses 1,219,400 1,216,839 Change in net assets 33,856 83,398 Total net assets, beginning of the year 4,117,871 4,034,473 Total net assets, end of the year $ 4,151,727 $ 4,117,871 Management's Discussion and Analysis THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY OVERVIEW OF THE FINANCIAL STATEMENTS The three financial statements presented within the financial statements are as follows: • Statement of Net Assets - This statement presents information reflecting the Authority's assets, liabilities and net assets. Net assets represent the amount of total assets less total liabilities. The statement of net assets is categorized as to current and non-current assets and liabilities. For purposes of the financial statements, current assets and liabilities are those assets and liabilities with immediate liquidity or which are collectible or becoming due within 12 months of the statement date. The Authority's investment balances are considered current assets, as the Authority has historically experienced a high portfolio turnover rate. • Statement of Revenues, Expenses and Changes in Net Assets - This statement reflects the operating revenues and expenses, as well as non-operating revenues and expenses during the operating year. Major sources of operating revenues are administrative fee income and major sources of operating expenses being personnel and interest expense. The change in net assets for an enterprise fund is similar to net profit or loss for any other business enterprise. • Statement of Cash Flows - The statement of cash flows is presented on the direct method of reporting which reflects cash flows from operating, financial and investing activities. Cash collections and payments are reflected in this statement to arrive at the net increase or decrease in cash for the calendar year. FINANCIAL HIGHLIGHTS • The Authority's total assets at June 30, 2008 increased by approximately $500 which is very consistent with the prior year. • Total liabilities decreased for the year. The approximately $33,400decrease in liabilities compared to the prior year is primarily due to a decrease in unearned revenue. • The decrease in total operating revenues of approximately $47,000 in 2008 is due to increased fee revenues of approximately $31,700, and a net decrease in interest and investment income of approximately $78,700. • The increase in total operating expenses of approximately $2,500 in 2008 compared to the prior year is due to a decrease of interest expense of approximately $125,000and an approximate increase of other general expenses of $127,500. • Total net assets increased by approximately $33,900between July I, 2007 and June 30, 2008. 11 Management's Discussion and Analysis THE OKLAHOMA DEVELOPMENT FINANCE AUTHORITY OVERVIEW OF THE FINANCIAL STATEMENTS CAPITAL ASSETS As of June 30, 2008, the Authority had invested approximately $809,000 in capital assets, including land, buildings, automobiles, furniture and equipment. Net of accumulated depreciation, the Authority's net capital assets at June 30, 2008 total approximately $588,000. The Authority's net capital assets at June 30, 2007 totaled approximately $601,000. DEBT ADMINISTRATION As of June 30, 2008, the Authority had approximately $1.6 billion of conduit debt (non-recourse debt to the Authority that is repaid solely from revenues derived from the related facilities) outstanding. This is an approximate $100 million increase from June 30, 2007. The Authority also had outstanding as of June 30, 2008 and 2007, $9,999,000 of bonds related to the Oklahoma Quality Jobs Investment Program, a designated fund within the Authority. CONTACTING THE AUTHORITY'S MANAGEMENT This financial report is designed to provide patrons and interested parties with a general overview of the Authority's finances and to demonstrate the Authority's accountability for its finances. If you have questions about this report or need additional financial information, contact: James G. Fulmer, President The Oklahoma Development Finance Authority 5900 N Classen Court Oklahoma City, Oklahoma 73118 Telephone: 405-842-1145 III Independent Auditors' Report The Board of Directors The Oklahoma Development Finance Authority We have audited the statement of net assets of the Oklahoma Development Finance Authority ("ODFA"), a component unit of the state of Oklahoma, as of June 30, 2008, and the related statements of revenues, expenses and changes in net assets and cash flows for the year then ended. We have also audited the financial statements of ODFA's discretely presented component unit, the Credit Enhancement Reserve Fund (lithe Fund"). Collectively, ODFA and the Fund are referred to as the II Authority". These financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on the Authority's financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority and its discretely presented component unit as of June 30, 2008, and the results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Management's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurements and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. 1 ------++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 531 Couch Dr. Suite 200 Oklahoma City, OK 73102-2251 TEL 405.239.7961 FAX 405.235.0042 WEB www.coleandreed.com RSM McGladrey Network An Independently Owned Member In accordance with Government Auditing Standards, we have also issued our report dated October 17,2008, on our consideration of the Authority's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting and compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was made for the purpose of forming an opinion on the basic financial statements of the Authority, taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Oklahoma City, Oklahoma October 17,2008 2 STATEMENT OF NET ASSETS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 Component Unit Total (Credit Primary Enhancement Government Reserve Fund) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,219,710 $ 214,755 Interest receivable 79,137 2,204 Fees receivable and other current assets 375,866 25,300 Notes receivable 202,690 Investments 10,219,315 891,553 TOTAL CURRENT ASSETS 12,096,718 1,133,812 NONCURRENT ASSETS Notes receivable, net of allowance for uncollectible loans of $226,660 1,357,882 Capital assets, net of accumulated depreciation of $221,043 588,068 Other assets 150,000 TOTAL NONCURRENT ASSETS 2,095,950 TOTAL ASSETS 14,192,668 1,133,812 LIABILITIES CURRENT LIABILITIES Accounts payable 9,213 Deferred revenue 32,728 24,068 TOTAL CURRENT LIABILITIES 41,941 24,068 NONCURRENT LIABILITIES Bonds payable 9,999,000 Deferred revenue 247,388 Reserve for losses 51,371 TOTAL NONCURRENT LIABILITIES 9,999,000 298,759 TOTAL LIABILITIES 10,040,941 322,827 NET ASSETS Invested in capital assets 588,068 Unrestricted 3,563,659 810,985 TOTAL NET ASSETS $ 4,151,727 $ 810,985 See accompanying notes to financial statements. 3 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30, 2008 Component Unit Total (Credit Primary Enhancement Government Reserve Fund) OPERATING REVENUES Fee revenue $ 714,282 $ Insurance premiums 56,878 Interest and investment income 501,552 36,763 Other 37A22 TOTAL OPERATING REVENUES 1,253,256 93,641 OPERATING EXPENSES Personnel services 526,595 Professional services 52,520 1,801 Administrative 58,319 3,500 Program expenses 55)15 Depreciation 32,572 Interest expense 412,727 Other 81,552 TOTAL OPERATING EXPENSES 1,219AOO 5,301 OPERATING INCOME 33,856 88,340 NET ASSETS AT BEGINNING OF YEAR 4)17,871 722,645 NET ASSETS AT END OF YEAR $ 4)51,727 $ 810,985 See accompanying notes to financial statements. 4 STATEMENT OF CASH FLOWS OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30,2008 Component Unit Total (Credit Primary Enhancement Government Reserve Fund) CASH FLOWS FROM OPERATING ACTIVITIES Cash received for fees and insurance premiums $ 623,934 $ 57,092 Cash paid to suppliers and employees (774,775) (6,491) Interest and investment income received 626,070 42,336 Interest paid (412,727) Other receipts 38,394 NET CASH PROVIDED BYOPERATING ACTIVITIES 100,896 92,937 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Payment for acquisition of capital assets (27,587) Sale of capital assets 8,338 NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES (19,249) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investments (12,444,988) (1,775,609) Proceeds from sale of investments 12,086,617 1,762,519 Payments received on notes receivable 1,165,664 Advances on notes receivable (375,000) NET CASH USED PROVIDED BY (USED IN) INVESTING ACTIVITIES 432,293 (13,090) NET INCREASE IN CASH AND CASH EQUIVALENTS 513,940 79,847 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 705,770 134,908 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,219,710 $ 214,755 (Continued) See accompanying notes to financial statements. 5 STATEMENT OF CASH FLOW5--Continued OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 3D, 2008 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities Provision for uncollectible loans Depreciation Change in assets and liabilities: Fees receivable and other current assets Interest receivable Accounts payable Deferred revenue and reserve for losses NET CASH PROVIDED BY OPERATING ACTIVITIES See accompanying notes to financial statements. 6 Total Primary Government Component Unit (Credit Enhancement Reserve Fund) $ 33,856 $ 88,340 50,000 32,572 (56,648) (18,975) 74,518 5,573 (674) (1,190) (32,728) 19,189 $ 100,896 $ 92,937 NOTESTO FINANCIAL STATEMENTS OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE A--SUMMARYOF SIGNIFICANTACCOUNTING POLICIES Reporting Entity: The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion could cause the financial statements to be misleading or incomplete. The Oklahoma Development Finance Authority (the" Authority") is a tax-exempt public trust organized under the laws of the state of Oklahoma (the "State") by Declaration of Trust dated November I, 1974. The Authority (previously the Oklahoma Development Authority) amended its Declaration of Trust and changed its name to the Oklahoma Development Finance Authority in 1988. The beneficiary of the Authority is the State. The Authority was established to provide financing for both public and private entities in the State. The Authority obtains funds through the issuance of bonds and notes. Private entities qualifying for Authority financing are generally agricultural, civic, educational, health care, industrial, or manufacturing enterprises. Financing is also provided to governmental agencies and instrumentalities of the State. For public programs, bond and note proceeds are deposited into trust funds to be loaned out to qualifying program participants. Interest from the trust investments and the loans is used to pay interest on the bonds and notes issued by the Authority. The Authority is a component unit of the State and is combined with other similar funds to comprise the Proprietary Component Units of the State. In evaluating how to define the Authority, for financial reporting purposes, management has determined that there is one entity over which the Authority exercises significant influence. Significant influence or accountability is based primarily on operational or financial relationships with the Authority. The Authority exercises significant influence or accountability over the Oklahoma Credit Enhancement Reserve Fund (the "Fund"). Under Oklahoma statutes, the Credit Enhancement Reserve Fund Act (the "Act") created the Fund to be managed, administered, and utilized by the Authority solely to secure the payment of interest, principal, and premium, if any, on the revenue bonds and other financial obligations issued by the Authority for the purpose of enhancing and supporting the credit of such obligations. In addition, the Act authorizes the Fund to issue bonds which are the direct and general obligations of the State (to which the full faith and credit of the State is pledged) in a total principal amount not to exceed $100,000,000for the purpose of generating monies to be deposited to the Fund. The Fund is a discretely presented component unit of the Authority and is reported as an enterprise fund. The Fund does not prepare separately issued financial statements. Collectively, the Authority and the Fund are also referred to as the Authority. 7 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE A--SUMMARYOF SIGNIFICANTACCOUNTING POLICIES--Continued Nature of Activities: The Authority administers a broad mix of programs, as noted below, to meet the various economic needs of the State. Conduit Lending Program: The Conduit Lending Program is completed through the authorization and sale of revenue bonds, notes, certificates of participation, or other evidence of indebtedness. Funds generated by such sale are then available for loans to qualified borrowers. The Authority does not guarantee such obligations. First-Time Farmer Loan Program: The First-Time Farmer Loan Program is administered in conjunction with the Oklahoma Department of Agriculture and was established during 1994. This program is administered by the Authority using federal and state tax-exempt bond financing to reduce a farmer's interest rate for capital purchases. This program is structured so that a direct loan can be made between a borrower and a lender or between a buyer and a seller. Small Business Financing Program: The Small Business Financing Program continues its efforts to provide additional funds and financing opportunities to Oklahoma's small business community. The Authority has assisted Rural Enterprises, Inc. ("REI") of Durant, Oklahoma, with the development of their SBA Micro Loan Program by furnishing seed money for the program. Quality TobsInvestment Program: The Quality Jobs Investment Program encourages the growth of equity and near equity capital for Oklahoma businesses. Under this program, the Authority can match dollar for dollar an investment enterprise's private capital for helping new and expanding businesses. The Program was created by the Authority and funded through a bond issuance in the amount of $9,999,000in 1997with the proceeds restricted to fund the program. Tax-Exempt Guaranty Pool: The Tax-Exempt Guaranty Pool (the "Pool") is designed to assist the Oklahoma Industrial Finance Authority (the "OIFA") in issuing tax-exempt bonds. The Pool acts as a private credit enhancement reserve fund to guarantee any loss after all resources of the OIFA have been exhausted. The guarantee is limited to the resources of the Pool. The program was created by the Authority and funded through a transfer of $500,000from the Authority's unrestricted net assets. The Public Facilities Financing Program: The Public Facilities Financing Program is designed to provide low-cost financing to an applying governmental entity for practically any need of the entity. In order to qualify, the govern...-rnentaelntity's project must contribute to the economic viability or attractiveness of the area impacted by the project, demonstrate strong public support, and the governmental entity must demonstrate the ability to repay borrowed funds. 8 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCEAUTHORITY June 30,2008 NOTE A--SUMMARYOF SIGNIFICANTACCOUNTING POLICIES--Continued The Fund administers the following program: Credit Enhancement Reserve Fund ("CERF") Lending Program - The Authority is concentrating on CERF lending activities involving municipal or other governmentally supported obligations, primarily through the Public Facilities Financing Program. Basis of Accounting: The operations of the Authority and the Fund are accounted for as enterprise funds on an accrual basis in order to recognize the flow of economic resources. Under this basis, revenues are recognized in the period in which they are earned, and expenses are recognized in the period in which they are incurred. Balances classified as operating revenues and expenses are those which comprise the Authority's principal ongoing operations. Since the Authority's operations consist of administering economic development through the issuance of bonds and notes, most revenues and expenses are considered operating. The Authority applies Financial Accounting Standards Board ("FASB") pronouncements and Accounting Principles Board opinions issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements, in which case GASB prevails. Use of Estimates: Accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Cash and Cash Equivalents: The Authority and the Fund, for purposes of reporting cash flows, consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Fees Receivable and Other Current Assets: The majority of the fees receivable and other current assets consist of fees receivable. Fees receivable include amounts billed for administrative fees as of June 30, 2008. Fees receivable are accrued based on the annual fee as stipulated in the various bond indentures. Investments: The Authority is currently invested in various SBA Loan Pools, certificates of deposit and us. Treasury Bills. The SBALoan Pools are recorded at fair value based on the average of two bids from independent brokers. U.S. Treasury Bills and certificates of deposit are recorded at cost which approximates fair value. Unrealized gains and losses and interest income are included in investment income. 9 NOTES TO FINANCIAL STATEMENTS---Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE A--SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES---Continued Capital Assets: Capital assets are stated at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over an estimated useful life of 39 years for the building and five years for automobiles, furniture, and equipment. Reserve for Losses: The reserve for losses is an estimate based on management's evaluation of the loan portfolio (those obligations guaranteed by the Fund) giving consideration to general economic conditions, the nature and volume of the loan portfolio, and the historic loan loss experience of the Fund. It is maintained at a level that management considers adequate to absorb potential losses in the loan portfolio. Deferred Revenue: On certain debt financing which the Fund is guaranteeing, the Fund will receive all of its insurance premiums in advance. These premiums are deferred and recognized as revenue over the life of the various debt obligations on a straight-line basis. Income Taxes: The Authority, as an integral part of the State, is exempt from federal and state income taxes. NOTE B--DEPOSITSAND INVESTMENTS Custodial Credit Risk - Deposits: Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The Authority's deposit policy for custodial credit risk is described as follows: The Authority requires that balances on deposit with financial institutions, including trustees related to the Authority's bonds, be insured by Federal Deposit Insurance or collateralized by securities held by the cognizant Federal Reserve Bank, or invested in U.S. Government obligations, in the Authority's name. Interest Rate Risk: The Authority does not have a formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Concentration of Credit Risk: The Authority places no limit on the amount the Authority may invest in anyone issuer. More than 5% of the Authority's investments are in SBALoan Pools, certificates of deposit and U.S. Treasury Bills. These investments comprise 100% of the Authority's total investments. 10 NOTES TO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 NOTE B--DEPOSITSAND INVESTMENTS--Continued The Authority's and the Fund's deposits and investments consisted of the following at June 30, 2008: Type Carrying Value Deposits: Authority Fund Demand $ 1,219,710 $ 214,755 Investments: Certificateof deposit $ 4,645,201 $ SBALoan Pools 2,299,047 USTreasury Bills 3,275,067 891,553 $ 10,219,315 $ 891,553 Deposits: At June 30, 2008, the bank balances of the Authority's and the Fund's cash deposits were $1,219,710and $214,755, respectively. All bank balances were covered by Federal Deposit Insurance or collateralized with securities held by the Authority's or Fund's agent in the Authority's or Fund's name. Investments: The Authority's investments in SBA Loan Pools of $2,299,047 are not evidenced by securities; therefore, these investments are not subject to risk categorization. The Authority's and the Fund's investments in US Treasury Bills of $3,275,067are backed by the full faith and credit of the U. S. Government. The Authority's certificates of deposit totaling $4,645,201have original maturity dates exceeding three months and therefore are classified as investments. Investment Maturities (in Years) Fair Less One to Six to More Investment Type Value Than One Five Ten Than Ten Certificate of deposit $ M45)01 $ 4M5)01 $ - $ - $ Authority's SBA Loan Pools 2,299,047 252,833 2,046)14 Authority's U.s. Treasury Bills 3,275,067 3,275,067 $ 10)19)15 $ 7,920)68 $ - $ 252,833 $ 2,046,214 Fund's U'S. Treasury Bills $ 891,553 $ 891,553 $ - $ - $ 11 NOTES TO FINANCIAL STATEMENT5--Continued OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 NOTE C--NOTES RECEIVABLE At June 30, 2008, the Authority's Quality Job Investment Program has various notes receivable from four entities totaling $1,664,517. The Authority has provided an allowance for loan losses of $226,660 due to uncertainties of collection in connection with one of the notes; however, the Authority believes that the remaining balances are collectible. The Authority's Operating Fund has a note receivable from one entity totaling $122,715 as of June 30, 2008. The notes bear interest at variable interest rates ranging from the national prime rate to national prime plus 300 basis points. Interest is compounded monthly, quarterly or annually, as defined in each note agreement. The notes mature from January 2009 to October 2014 and are unsecured. NOTE D--CAPITAL ASSETS Capital assets activity for the year ended June 30, 2008, was as follows: Estimated Useful Life June 30, June 30, (Years) 2007 Additions Reductions 2008 N/A Land $ 100,000 $ $ $ 100,000 39 Buildings 563,185 563,185 5 Automobiles 79,823 26,092 (26,334) 79,581 5 Furniture and equipment 64,850 1,495 66,345 807,858 27,587 (26,334) 809,111 Accumulated depreciation (206,467) (32,572) 17,996 (221,043) $ 601,391 $ (4,985) $ (8,338) $ 588,068 12 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE E--NONRECOURSEDEBT,NOTES RECEIVABLE,AND FUNDS IN TRUST (Conduit Debt) Certain financing agreements are structured such that the debt is to be repaid solely from the revenues derived from the related facilities leased or acquired with proceeds of the debt obligations, or from the disposition of collateral. The Authority does not hold these notes receivable or trust investments in amounts equal to the long-term financings. As of June 30, 2008,the Authority had 266 series of debt outstanding totaling approximately $2.0billion in the original amount of issuance with approximately $1.6 billion outstanding for all public and private programs. Of this amount, the Authority had 218 series of debt outstanding for non-state entities totaling approximately $1.5 billion in the original amount of issuance with approximately $1.3billion outstanding. The financings are not the general obligations of the Authority, and it is the opinion of the Authority's management and its legal counsel that, in the event of default by the borrower(s), the Authority has no responsibility for repayment of such financings. Accordingly, the nonrecourse debt and the related notes receivables and trust investments have been excluded from the financial statements. NOTE F--THE OKLAHOMA CREDITENHANCEMENT RESERVEFUND Under the constitution of the State, the Fund may issue bonds of the State, to be known as the Oklahoma Credit Enhancement Reserve General Obligation Bonds, in a total principal amount of $100,000,000for the sole purpose of generating monies to be deposited to the Fund if there are insufficient assets to meet insurance obligations. The Fund is managed, administered, and utilized by the Authority solely to secure the payment of principal and interest on revenue bonds and other financial obligations issued by the Authority for the specific purpose of enhancing and supporting the credit of such obligations. As of June 30, 2008, there were approximately $45 million of outstanding financial obligations insured by the Fund. The Authority has accrued a reserve for losses of approximately $51,000 as of June 30, 2008, to cover potential losses from the outstanding financial obligations insured by the Fund. Through June 30, 2008, Oklahoma Credit Enhancement Reserve Fund General Obligation Bonds have not been issued since it is the intention of the Authority to utilize existing assets to meet obligations arising from losses reserved by the Fund. 13 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE G--TAX-EXEMPTGUARANTYPOOL In August 1995, the Authority's Board of Directors created the Pool to assist the OIFA in obtaining tax-exempt financing on OIFA projects. The Pool was funded in fiscal year 1998 with $500,000 of unrestricted monies held by the Authority. The Pool sets up a private credit enhancement reserve fund to guarantee a portion of any loss up to the amount in the Pool after all other resources to collect by OIFA have been exhausted. At no time will the liability of the Pool be greater than the $500,000 funding plus any premiums retained by the Pool. At June 30, 2008, there were approximately $6.1 million of outstanding financial obligations insured by the Pool. All obligations are making payments in a timely manner. NOTE H--RELATEDPARTIES On July I, 1992, the Authority entered into an agreement with OIFA. Under this agreement, OIFA will provide the Authority with staff support and administrative services. The Authority has agreed to pay OIFA its proportionate costs of OIFA employees including related benefits, taxes, and other costs. Based on this agreement, the Authority does not accrue annual vacation or sick leave. The Authority paid OIFA approximately $465,000 during the year ended June 30, 2008, to cover its share of the aforementioned expenses. The current agreement is in effect on a month-to-month basis. NOTE I--BONDSPAYABLE The Authority has issued revenue bonds to fund loans to various investment enterprises in connection with the Quality Jobs Investment Program. Revenue bonds outstanding at June 30, 2008, are as follows: Oklahoma Development Finance Authority Oklahoma Quality Jobs Investment Program Revenue Bond, Series 1996, due April 1, 2031 $ 9,999,000 The registered owner of the bonds is the OIFA, a related party. There were no additions or retirements of revenue bonds during the year ended June 30, 2008. The original maturity date of the bond was April I, 2006. However, on April I, 2006 the Authority and OIFA signed an agreement to extend the maturity date to April 1, 2031. 14 NOTESTO FINANCIAL STATEMENTS--Continued OKLAHOMA DEVELOPMENTFINANCE AUTHORITY June 30, 2008 NOTE I--BONDSPAYABLE--Continued Interest rates are variable with payments due quarterly with principal and all unpaid interest due at maturity. The variable rate of interest is equal to the OIFA's cost of funds on its outstanding variable rate bond issues. The interest rate at June 30, 2008 was 2.5%. The bonds are payable solely from and secured by (1) revenues derived by the Quality Job Investment Program from loan repayments, (2) funds in the Quality Job Investment Program fund established by the Authority to support this bond and (3) a Credit Enhancement Reserve Fund guarantee insurance policy issued to the Oklahoma Industrial Finance Authority. Neither the State nor any political subdivision is obligated to pay principal or interest on the bonds. The Authority does not have any taxing authority. The annual debt service requirements to pay principal and interest on the Quality Jobs Investment Program Revenue Bond, Series 1996, are as follows: Year Ending Tune30, Principal Interest 2009 $ $ 249,975 2010 249,975 2011 249,975 2012 249,975 2013 249,975 2014-2018 1,249,875 2019-2023 1,249,875 2024-2028 1,249,875 2029-2031 9,999,000 687,430 Total $ 9,999,000 $ 5,686,930 Interest requirements for the variable rate debt were determined by using the rate in effect at June 30, 2008. NOTE J--LEASEOBLIGATrONS The Authority leased a portion of its office space to the OIFA and the State Bond Advisor. Rental income from leases for the year ended June 30, 2008, was approximately $37,000. 15 Independent Auditors' Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards The Board of Directors The Oklahoma Development Finance Authority We have audited the financial statements of the Oklahoma Development Finance Authority and the Credit Enhancement Reserve Fund, collectively referred to as the "Authority", as of and for the year ended June 30, 2008, and have issued our report thereon dated October 17, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatements, we performed tests of its compliance with certain provisions of laws and regulations, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Authority's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over financial reporting A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. 16 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 531 Couch Dr. Suite 200 Oklahoma City, OK 73102·2251 TEL 405.239.7961 FAX 405.235.0042 WEB www.coleandreed.com RSM McGladrey Network An Independently Owned Member A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of management and the Board of Directors and is not intended to be and should not be used by anyone other than these specified parties. Oklahoma City, Oklahoma October 17, 2008 17 SCHEDULE OF NET ASSETS - QUALITY JOBS INVESTMENT PROGRAM OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 ASSETS CURRENT ASSETS Cash and cash equivalents Interest receivable Notes receivable Investments TOTAL CURRENT ASSETS NONCURRENT ASSETS Notes receivable, net of allowance for uncollectible loans of $226,660 TOTAL ASSETS LIABILITIES LONG- TERM LIABILITIES Bonds payable TOTAL LIABILITIES NET ASSETS (DEFICIT) TOTAL NET ASSETS (DEFICIT) 18 $ 336,845 71,874 187,105 7,190,993 7,786,817 1,250,752 9,037,569 9,999,000 9,999,000 (961,431) $ (961,431) SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - QUALITY JOBS INVESTMENT PROGRAM OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30, 2008 OPERATING REVENUES Investment income $ 280,042 Interest income on projects 55,222 TOTAL OPERATING REVENUES 335,264 OPERATING EXPENSES Professional services 8,850 Interest expense 412,667 Other 53,201 TOTAL OPERATING EXPENSES 474,718 CHANGE IN NET ASSETS (139,454) TOTAL NET ASSETS (DEFICIT) AT BEGINNING OF YEAR (821,977) TOTAL NET ASSETS (DEFICIT) AT END OF YEAR $ (961,431) 19 SCHEDULE OF NET ASSETS - TAX-EXEMPT GUARANTY POOL OKLAHOMA DEVELOPMENT FINANCE AUTHORITY June 30, 2008 ASSETS CURRENT ASSETS Cash and cash equivalents Interest receivable Investments TOTAL ASSETS LIABILITIES CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS TOTAL NET ASSETS 20 $ 52)87 697 668,269 721)53 721)53 $ 721)53 SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - TAX-EXEMPT GUARANTY POOL OKLAHOMA DEVELOPMENT FINANCE AUTHORITY Year Ended June 30, 2008 OPERA TING REVENUES Fee revenue $ 22,076 Investment income 23,894 45,970 OPERATING EXPENSES Guaranty obligation 46,740 Investment expense 60 46,800 CHANGE IN NET ASSETS (830) TOTAL NET ASSETS AT BEGINNING OF YEAR 721,983 TOTAL NET ASSETS AT END OF YEAR $ 721,153 21 MAY 20 7011 -. 531 Couch Drive, Suite 200 Oklahoma City, OK 73102-2251 TEL 405.239.7961 FAX 405.235.0042 WEB www.coleandreed.com RSM McGladrey Network An Independently Owned Member |
Date created | 2011-07-11 |
Date modified | 2011-10-28 |
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