Full Answer
How much was the Buckeye Tobacco Settlement refinancing?
(COLUMBUS, Ohio) – The Buckeye Tobacco Settlement Financing Authority (the Authority) closed on a $5.3 billion refinancing of the Tobacco Settlement Asset-Backed Bonds on Wednesday, March 4.
When was the Ohio tobacco settlement established?
The General Assembly created the Authority in 2007 for the sole purpose of exchanging Ohio’s annual revenue stream of tobacco settlement proceeds for a one-time upfront payment that financed the cost of improving facilities of Ohio’s K-12 schools and universities statewide. In turn, those annual payments are pledged to repay bond holders, and once repaid, the annual proceeds from the settlement will return to the State of Ohio.
When did the Buckeye Tobacco Settlement Financing Authority end?
We have audited the accompanying financial statements of the governmental activities and Debt Service Fund of the Buckeye Tobacco Settlement Financing Authority (the Authority), a blended component unit of the State of Ohio, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.
What is the Ohio government bond service fund?
The fund is an accounting device that the State of Ohio uses to keep track of specific sources of funding and spending for particular purposes. The fund balance may serve as a useful measure of the Authority’s net resources available for spending at the end of the fiscal year.
What is the column labeled "Governmental Bond Service Fund"?
The column labeled “Governmental Bond Service Fund” presents information on near-term inflows, outflows, and balances of expendable resources. Such information is presented on the modified- accrual basis of accounting.
What are the two components of the financial statements of the Authority?
These basic financial statements are comprised of two components: 1) combined government-wide and fund financial statements, and 2) notes to the financial statements . For most governmental entities, the government-wide and fund financial statements are presented separately; however, since the Authority is comprised of only one bond service fund, we are presenting both types of financial statements on one combined set of financial statements, as described below:
What is auditing financial statements?
An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the Authority's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.
What is the responsibility of the auditor?
Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.
How much of the Authority's liabilities are accrued interest?
Approximately 99% of the Authority’s liabilities consist of the principal balance, net of discounts and premium, of the Bonds outstanding, with the remaining liability being accrued interest payable on those Bonds at the end of the fiscal year. The carrying amount of the bonds increased during the fiscal year by $42.2 million due to reasons previously mentioned in the financial highlights.
