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Commonwealth of Massachusetts
        Annual Comprehensive
           Financial Report
            For the Fiscal Year Ended June 30, 2023
                           Prepared by
                    Office of the Comptroller
               Statewide Financial Reporting Team
                        William McNamara
                Comptroller of the Commonwealth
This document is available at the Comptroller’s website: www.macomptroller.org
Cover Photo Credit:
Cod (gadus morrhua), Official State Fish of Massachusetts
© davidyoung 11111, Licensed through Adobe Stock
Other Photo Credits:
Lady Bug (coccinella septempunctata), Official State Insect of Massachusetts
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American Elm (ulmus americana), Official State Tree of Massachusetts
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Right Whale (eubalaena glacialis), Official State Marine Mammal of Massachusetts
© Dewald, Licensed through Adobe Stock
Mayflower (epigaea repens), Official State Flower of Massachusetts
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Cranberry (vaccinium macrocarpon), Official State Berry of Massachusetts
© Donny Wu/Wirestock Creators, Licensed through Adobe Stock
Morgan Horse (equus ferus caballus), Official State Horse of Massachusetts
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Dinosaur Track (ichnite), Official State Fossil of Massachusetts
© celiafoto, Licensed through Adobe Stock
Cranberry Juice, Official State Beverage of Massachusetts
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Garter Snake (thamnophis sirtalis), Official State Reptile of Massachusetts
© Erik, Licensed through Adobe Stock
New England Neptune (neptunea lyrata decemcostata), Official State Shell of Massachusetts
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Tabby Cat (felis catus), Official State Cat of Massachusetts
© Kellie, Licensed through Adobe Stock
Boston Terrier (canis familiaris), Official State Dog of Massachusetts
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Rhodonite, Official State Gemstone of Massachusetts
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Wild Turkey (meleagris gallopavo), Official State Game Bird of Massachusetts
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                Annual Comprehensive Financial Report
                                             For the Fiscal Year Ended June 30, 2023
                                                Table of Contents
INTRODUCTORY SECTION
 LETTER OF TRANSMITTAL ..............................................................................................                 1
 CONSTITUTIONAL OFFICERS .........................................................................................                    6
 COMMONWEALTH ORGANIZATIONAL STRUCTURE ..................................................                                             7
 ADVISORY BOARD TO THE COMPTROLLER ................................................................                                   8
 ACKNOWLEDGMENTS .....................................................................................................                9
 CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
 REPORTING .......................................................................................................................    10
FINANCIAL SECTION
 INDEPENDENT AUDITORS’ REPORT.............................................................................                            12
 MANAGEMENT’S DISCUSSION AND ANALYSIS ...........................................................                                     17
 BASIC FINANCIAL STATEMENTS ....................................................................................                      39
 GOVERNMENT-WIDE FINANCIAL STATEMENTS .........................................................                                       39
   Statement of Net Position ................................................................................................         40
   Statement of Activities......................................................................................................      42
 GOVERNMENTAL FUND FINANCIAL STATEMENTS ....................................................                                          45
   Balance Sheet ..................................................................................................................   46
   Reconciliation of Governmental Fund Balances to the Statement of Net Position .........                                            47
   Statement of Revenues, Expenditures and Changes in Fund Balances ...........................                                       48
   Reconciliation of Statement of Revenues, Expenditures and Changes in Fund
      Balances of Governmental Funds to the Statement of Activities................................                                   49
 PROPRIETARY FUND FINANCIAL STATEMENTS .........................................................                                      51
   Statement of Net Position ................................................................................................         52
   Statement of Revenues, Expenses and Changes in Net Position .....................................                                  54
   Statement of Cash Flows .................................................................................................          55
 FIDUCIARY FUND FINANCIAL STATEMENTS ..............................................................                                   57
   Statement of Fiduciary Net Position ................................................................................               58
   Statement of Changes in Fiduciary Net Position.............................................................                        59
 DISCRETELY PRESENTED COMPONENT UNIT FINANCIAL STATEMENTS..............                                                               61
   Statement of Net Position ................................................................................................         62
   Statement of Revenues, Expenses and Changes in Net Position .....................................                                  63
 TABLE OF CONTENTS – NOTES TO THE BASIC FINANCIAL STATEMENTS .............                                                            65
   Notes to the Basic Financial Statements .........................................................................                  67
 REQUIRED SUPPLEMENTARY INFORMATION-OTHER THAN MANAGEMENT’S
   DISCUSSION AND ANALYSIS.......................................................................................                     143
   Schedule of Revenues, Expenditures and Changes in Fund Balances – Statutory
      Basis – Budget and Actual – General Fund ...............................................................                        144
   Schedule of Revenues, Expenditures and Changes in Fund Balances – Statutory
      Basis – Budget and Actual – Budgeted Major Governmental Funds - Federal
      Covid-19 Response Fund............................................................................................                  146
   Explanation of Differences between Revenues, Expenditures and Other Financing
      Sources/(Uses) for the General Fund on a Budgetary Basis and GAAP Basis..........                                                   148
   Explanation of Differences between Revenues, Expenditures and Other Financing
      Sources/(Uses) for the Federal Covid-19 Response Fund on a Budgetary Basis
      and GAAP Basis .........................................................................................................            149
   Notes to Required Supplementary Information – Budgetary Reporting..........................                                            150
   Schedule of Changes in the State Employees’ Retirement System (SERS)
      Net Pension Liability and Related Ratios ...................................................................                        152
   Notes to the SERS Schedule .............................................................................................               154
   Schedule of Changes in the Massachusetts Teachers’ Retirement System (MTRS)
      Net Pension Liability and Related Ratios ...................................................................                        158
   Notes to the MTRS Schedule ............................................................................................                160
   Schedule of Changes in the State Retirees' Benefit Trust (SRBT)
      Net OPEB Liability and Related Ratios......................................................................                         164
   Notes to the SRBT Schedule.............................................................................................                166
   Schedule of Investment Returns .......................................................................................                 170
   Schedule of Proportionate Share of the Net Pension Liability and Contributions -
      SERS ...........................................................................................................................    172
   Schedule of Proportionate Share of the Net Pension Liability and Contributions -
       MTRS .........................................................................................................................     174
   Schedule of Proportionate Share of the Net Pension Liability and Contributions -
       BRS ............................................................................................................................   176
   Notes to the Schedules of Proportionate Share of the Net Pension Liability and
       Contributions .............................................................................................................        178
   Schedule of Employer Contributions - OPEB .................................................................                            179
OTHER SUPPLEMENTARY INFORMATION ...................................................................                                       181
 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -
    Budgetary Basis - Budget and Actual - Combined General Fund ............................                                              182
 Combining Balance Sheet – Other Governmental Funds................................................                                       184
  Combining Statement of Revenues, Expenditures and Changes in Fund Balances –
    Other Governmental Funds ........................................................................................                     188
  Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -
    Budgetary Basis – Budget and Actual – Other Budgeted Nonmajor Governmental
    Funds ..........................................................................................................................      192
  Combining Budget to GAAP Reconciliation – Other Budgeted Nonmajor
    Governmental Funds ..................................................................................................                 200
  Combining Statement of Fiduciary Net Position - Pension and Post-Employment
    Benefits Trust Funds – Pension and OPEB Trust Funds ..........................................                                        203
  Combining Statement of Changes in Fiduciary Net Position Pension and Post-
    Employment Benefits Trust Funds – Pension and OPEB Trust Funds ......................                                                 204
  Combining Statement of Fiduciary Net Position Held in Trust for Pool Participants –
    External Investment Trust Funds ...............................................................................                       205
  Combining Statement of Changes in Fiduciary Net Position Held in Trust for Pool
    Participants – External Investment Trust Funds ........................................................                               206
 Combining Statement of Fiduciary Net Position – Custodial Funds ..............................                                           207
     Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ........... 208
     Combining Statement of Net Position – Nonmajor Discretely Presented Component
       Units ........................................................................................................................... 209
     Combining Statement of Revenues, Expenses and Changes in Net Position –
       Nonmajor Discretely Presented Component Units .................................................... 210
STATISTICAL SECTION
  Statistical Section Narrative and Table of Contents........................................................                           212
  Schedule of Net Position by Component - Last Ten Fiscal Years ...................................                                     214
  Changes in Net Position – Last Ten Fiscal Years ...........................................................                           216
  Fund Balances, Governmental Funds - Last Ten Fiscal Years .......................................                                     218
   Ten-Year Schedule of Revenues and Other Financing Sources All Governmental
     Fund Types – Fund Perspective ................................................................................                     220
   Ten-Year Schedule of Expenditures and Other Financing Uses by Secretariat - All
     Governmental Fund Types – Fund Perspective .........................................................                               222
  Personal Income by Industry - Last Ten Calendar Years................................................                                 224
  Commonwealth of Massachusetts Personal Income Tax Filers and Liability by
      Income Level – Calendar (Tax) Years 2021 and 2012 ..............................................                                  226
  Ten-Year Schedule of Per Capita General Long-Term Bonded Debt and Capital
      Leases ........................................................................................................................   227
  Ten-Year Schedule of Outstanding Direct Debt and Statutory Debt Limit .....................                                           228
  Ten-Year Schedule of Pledged Revenue Coverage..........................................................                               230
   Ten-Year Schedule of Percentage of Annual Debt Service Expenditures For General
     Bonded Debt to Total Non-Capital Expenditures – Fund Perspective - All
     Governmental Fund Types .........................................................................................                  232
  Component Units Revenue Bond Coverage for the Last Ten Fiscal Years .....................                                             233
  Ten-Year Schedule of Massachusetts and United States Resident Population................                                              234
  Ten-Year Schedule of Massachusetts and United States Resident Per Capita Net
     Income ........................................................................................................................    235
   Ten-Year Schedule of Annual Average Civilian Labor Force, Unemployment and
     Unemployment Rates - For Massachusetts and the United States .............................                                         236
  Largest Private Sector Massachusetts Employers - 2023 and 2014 ...............................                                        237
  Full Time Equivalent Employees by Function / Program - Last Ten Years ....................                                            238
   Average Annual Medicaid Caseload and Medicaid Expenditures – Fund Perspective
     – Last Ten Fiscal Years ..............................................................................................             240
   Massachusetts Road Inventory Calendar Year End, Lane Miles by Type - Last Ten
     Calendar Years ...........................................................................................................         241
   Massachusetts Real Property Owned and Leased Annual Inventory, Acreage,
     Improvements and Square Footage - Last Ten Years ................................................                                  242
   Massachusetts Public Higher Education Enrollment and Degrees Conferred - Last
     Ten Academic Years ...................................................................................................             244
  Calculation of Transfers: Stabilization Fund ..................................................................                       246
  Calculation of Transfers: Tax Reduction Fund ...............................................................                          247
  Massachusetts General Information ................................................................................                    248
            Introductory Section
                                       (Unaudited)
Letter of Transmittal
Constitutional Officers
Commonwealth Organizational Structure
Advisory Board to the Comptroller
Acknowledgments
Certificate of Achievement for Excellence in Financial Reporting
May 28, 2024
To Her Excellency Governor Maura Healey, the Honorable Members of the General Court, and
the Citizens of the Commonwealth:
Please accept this Letter of Transmittal for the Commonwealth’s fiscal year 2023 (FY23) Annual Comprehensive
Financial Report (ACFR) prepared in accordance with Generally Accepted Accounting Principles (GAAP). The
objective of this report is to provide a clear financial picture of our government as a single, unified entity.
This document presents the Commonwealth’s financial information on three bases of accounting, each serving a
different purpose. The report includes “required supplementary information” in the form of budgetary basis
statements, which are prepared in accordance with the Commonwealth’s budgetary or statutory basis of accounting
and summarized by Commonwealth branch and agency. This information is aggregated from FY23 line item
appropriations, the legal level of budgetary control -- i.e., the amount up to which state departments can spend without
approval of additional appropriations (in a so-called "supplemental budget") by the Massachusetts Legislature. Line
ite