TEXAS DEPARTMENT OF LICENSING AND REGULATION

Transcription

1 for the year ended August 31, 2012

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3 TEXAS DEPARTMENT OF LICENSING AND REGULATION P.O. Box 12157, Capitol Station Austin, Texas fax November 16,2012 Honorable Rick Perry, Governor Honorable Susan Combs, Texas Comptroller Ursula Parks, Acting Director, Legislative Budget Board John Keel, CPA, State Auditor Ladies and Gentlemen: We are pleased to submit the annual financial report of the Texas Department of Licensing & Regulation for the year ended August 31, 2012, in compliance with Texas Government Code Annotated, Section , and in accordance with the requirements established by the Comptroller of Public Accounts. Due to the statewide requirements embedded in Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements- and Management's Discussion and Analysis-for State and Local Governments, the Comptroller of Public Accounts does not require the accompanying annual financial report to comply with all the requirements in this statement. The financial report will be considered for audit by the state auditor as part of the audit of the State of Texas Comprehensive Annual Financial Report (CAFR); therefore, an opinion has not been expressed on the financial statements and related information contained in this report. If you have any questions, please contact Jerry Daniels, Director of Financial Services, at (512) Sincerely, f:u::k:!o/1 Executive Director Pra~S. IDenton. Cliair- Conroe, tf~ W.~ }lrismettd'ez - Slia/Towater, tf~ Luran fn'orman-'j(jeney- tfay/cr ~ o/ilfaoe, tf~ Lullnn W.o1'flan- W.itffand', tf~ IJ({lvi Sliali, Camllton. tf~ Prea W.oses - a?fano, tf~ IDe6orali }1. <Yurco - }lustin. tf~

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5 TABLE OF CONTENTS LETTER OF TRANSMITTAL COMBINED FINANCIAL STATEMENTS I. Exhibit I- Combined Balance Sheet/Statement of Net Assets Governmental Funds 2. Exhibit II- Combined Statement of Revenues, Expenditures and Changes in Fund Balances/Statement of Activities - Governmental Funds 3. Exhibit VI- Combined Statement ofnet Assets- Fiduciary Funds 4. Exhibit VII - Combined Statement of Changes in Fiduciary Net Assets NOTES TO THE FINANCIAL STATEMENTS II COMBINING STATEMENTS I. Exhibit A-1 -Combining Balance Sheet- All General and Consolidated Funds 2. Exhibit I-1 -Combining Statement of Fiduciary Net Assets- Private Pmpose Trust Funds 3. Exhibit I-2- Combining Statement of Changes in Fiduciary Net Assets- Private-Purpose Trust Funds 4. Exhibit J-1 -Combining Statement of Changes in Assets and Liabilities- Agency Funds USAS DAI:<'R Statement of Net Assets- Balance Sheet Format (GWFS) 25 SIRS- Government-Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, & Object (GOVT) 39 SCHEDULES I. Schedule 6- Summary of Revenues Generated by Program or Activity Schedule 7- Detail Statement of Revenues Generated by Program or Activity 50 ADDENDA I. Addendum I- Organizational and General Comments Addendum II Organizational Chart 60

6 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit I- Combined Balance Sheet/Statement of Net Assets- Governmental Funds August 31,2012 Governmental Fund Types ASSETS Current Assets: Cash Cash On Hand Cash In State Treasmy Legislative Appropriations Due from Other Funds Consumable Inventories Total Current Assets General Funds (Ex A-1) , ,812, , , ,302, Governmental Funds Total , ,812, , , ,302, Non-Current Assets: Capital Assets (Note 2): Depreciable: Fumiture and Equipment Less Accumulated Depreciation Vehicles, Boats and Aircraft Less Accumulated Depreciation Buildings and Bldg Improvements Less Accumulated Depreciation Computer Software - Intangible Less Accumulated Amortized Total Non-Current Assets Total Assets 4,302, ,302, LIABILITIES AND FUND BALANCES Liabilities Current Liabilities: Payables from: Accounts Payroll Funds Held for Others Employees' Compensable Leave (Note 4) Total Current Liabilities 711, ,861, ,572, , ,861, ,572, Non-Current Liabilities Employees' Compensable Leave (Note 4) Total Non-Cunent Liabilities Total Liabilities 2,572, ,572, The accompanying notes to the financial statements are an integral part of this statement.

7 UNAUDITED Capital Assets Adjustments Long-Term Liabilities Adjustments Statement of Net Assets , ,812, , , ,302, , (331, ) 86, (50,782.76) 194, (184,424.99) 30, (30, , , (331,186.57) 86, (50,782.76) 194, (184,424.99) 30, (30,041.73) 184, , ,487, , ,861, ,183, ,183, ,183, ,756, , , ,002, , , ,574, The accompanying notes to the financial statements are an integral part ofthis statement.

8 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit I- Combined Balance Sheet/Statement of Net Assets- Governmental Funds August 31, 2012 Governmental Fund Types Fund Financial Statement Fund Balances (Deficits): Nonspendable for: Inventories Conunitted Assigned Unassigned Total Fund Balances General Funds (Ex A-1) 170, , , ,248, ,729, Govemmental Funds Total 170, , , ,248, ,729, Total Liabilities and Fund Balances 4,302, ,302, Government-Wide Statement of Net Assets Net Assets Invested in Capital Assets, net of Related Debt Unrestricted Total Net Assets 3 The accompanying notes to the financial statements are an integral pati of this statement.

9 UNAUDITED Capital Assets Adjustments Long-Term Liabilities Adjustments Statement of Net Assets 2,002, , , , ,248, ,729, ,304, , , (2,002,018.48) (2,002,018.48) 184, (2,002,018.48) (87,412.69) 4 The accompanying notes to the financial statements are an integral part of this statement.

10 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit II - Combined Statement of Revenues, Expenditures and Changes in Fund Balances/Statement of Activities- Governmental Funds For the Fiscal Year Ended August 31,2012 General Funds REVENUES Legislative Appropriations Original Appropriations (GR) 22,372,199 Additional Appropriations (GR) 4,461, Federal Revenue (PR- Operating or Capital) Taxes (GR) 30,000 License, Fees & Permits (PR) 447, Sales of Goods and Se1vices (PR) 798, Other (GR) 52,590 Total Revenues 28,162, EXPENDITURES Salaries and Wages 18,355, Payroll Related Costs 4,584, Professional Fees and SeiVices 475, Travel 787, Materials and Supplies 521, Communication and Utilities 338, Repairs and Maintenance 228, Rentals and Leases 599,425 Printing and Reproduction 263, Claims and Judgements 12, Intergovermnental Payments Other Expenditures 1,311, Debt SeiVice-Principal-Capital Leases Capital Outlay 35, Depreciation Expense Other Capital Financing Sources/Uses Total Expenditures/Expenses 27,514, Excess (Deficiency) ofrevenues over Expenditures 648, OTHER FINANCING SOURCES (USES) Net Change in Inventories Transfers Out Legislative Transfers In ll5, Legislative Transfers Out Total Other Financing Sources (Uses) 115, Net Change in Fund Balances/Net Assets 763, Governmental Funds Total 22,372,199 4,461, , , , ,590 28,162, ,355, ,584, , , , , , , , , ,311, , ,514, , , ,ll , The accompanying notes to the financial statements are an integral part of this statement.

11 UNAUDITED Long-Term Capital Assets Liabilities Statement of Adjustments Adjustments Activities 22,372,199 4,461, , , , ,590 28,162, , ,400, ,584, , , , , , , , , , ,311, (35,550.65) 81, , , ,561, (83,620.31) (44,998.51) 601, , , , , , (46,391.24) (44,998.51) 753, The accompanying notes to the financial statements are an integral part of this statement.

12 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit II- Combined Statement of Revenues, Expenditures and Changes in Fund Balances/Statement of Activities - Governmental Funds For the Fiscal Year Ended August 31, 2012 Fund Financial Statement - Fund Balances Fund Balances- September 1, 2011 Restatements Appropriations Lapsed Fund Balances, August 31, 2012 General Funds 2,198, (14,797.48) (1,216,546) 1,729, Governmental Funds Total 2,198, (14,797.48) (1,216,546) 1,729, Government-Wide Statement of Net Assets Net Assets/Net Change in Net Assets Net Assets, Begimring Net Assets as of August 31, 2012 Agency Total The accompanying notes to the financial statements are an integral part of this statement. 7

13 UNAUDITED Capital Assets Ad,justments Long-Term Liabilities Adjustments Statement of Activities 2,198, (14,797.48) (1,216,546) 1,729, (46,391.24) _;...,(.._44_,_9_9_8._51.._) (91,389.75) 231, (1,957,019.97) (1,725,965.95) 184, (2,002,018.48) (1,817,355.70) (87,412.69) The accompanying notes to the financial statements are an integral pmi of this statement. 8

14 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit VI- Combined Statement of Net Assets - Fiduciary Funds August 31, 2012 Private-Purpose Tmst Funds (Exhibit I-1) ASSETS Cash and Cash Equivalents Cash in State Treasury 740, Total Assets 740, LIABILITIES Current Liabilities Funds Held For Others Total Liabilities NET ASSETS Held in Trust For Individuals, Organizations, and Other Govenm1ents Expendable 387, Non-Expendable 352, Total Net Assets 740, Agency Funds (Exhibit J -1) Totals 5, , , , ,371 5,371 5,371 5, , , , The accompanying notes to the financial statements are an integral part of this statement.

15 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit VII- Combined Statement of Changes in Fiduciary Net Assets For the Fiscal Year Ended August 31, 2012 Private-Purpose T111st Funds (Exhibit I-2) Additions Investment Income From Investing Activities: Interest and Investment Income 2, Total Investing Income (Loss) 2, Net Income from Investing Activities 2, Total Net Investment Income (Loss) 2, Other Additions Other Revenue (19,301.07) Total Other Additions (19,301.07) Total Additions (16,815.48) Deductions Salaries and Wages 25, Payroll Related Costs 5, Settlement of Claims 51, Other Expense 8, Total Deductions 90, Net Increase (Decrease) (107,076.07) Net Assets- September 1, , Net Assets- August 31, , Totals 2, , , , (19,301.07) (19,301.07) (16,815.48) 25, , , , , (107,076.07) 847, , The accompanying notes to the financial statements are an integral part of this statement. 10

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17 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) NOTES TO THE FINANCIAL STATEMENTS NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Entity The Texas Depattment of Licensing and Regulation is an agency of the State of Texas and its fmancial records comply with state statutes and regulations. This includes compliance with the Texas Comptroller of Public Accounts' Reporting Requirements for Annual Financial Reports of State Agencies and Universities. The Texas Department of Licensing and Regulation was created by the 7lst Legislature in House Bill863 and operates under the authority oftexas Occupations Code, Chapter 51. The mission ofthe Department is to maintain public trust by ensuring the public's safety and promoting a fair and competitive business environment for our regulated industries. Due to the statewide requirements embedded in GASB Statement No. 34, Basic Financial Statements -and Management's Discussion and Analysis -for State and Local Governments, the Comptroller of Public Accounts does not require the accompanying annual financial report to comply with all the requirements in this statement. The fmancial report is considered for audit by the state auditor as part of the audit of the State of Texas Comprehensive Annual Financial Report; therefore, an opinion has not been expressed on the fmancial statements and related information contained in this report. Blended Component Units The Texas Department of Licensing and Regulation does not have any blended component units. Discretely Presented Component Units The Texas Department of Licensing and Regulation does not have any discretely presented component units. Fund Structure The accompanying financial statements are presented on the basis of funds, each ofwhich is considered a separate accounting entity. Governmental Fund Types and Government-wide Adjustment Fund Types General Revenue Funds The general revenue fund (fund 0001) is used to account for all financial resources of the state except those required to be accounted for in another fund. Capital Assets Adjustment Fund Type The capital asset adjustment fund (fund 9998) is used to convert governmental fund types' capital assets from modified accrual to full accrual. Long-Term Liabilities Adjustment Fund Type The long-term liabilities adjustment fund (fund 9997) is used to convert governmental fund types' debt from modified accrual to full accrual. 11

18 UNAUDITED Fiduciary Fund Types Fiduciary funds account for assets held by the state in a trustee capacity or as an agent for individuals, private organizations, other govermnental units, and/or other funds. When assets are held under the terms of a formal trust agreement, either a pension trust fund or a private purpose trust fund is used. Agency Funds Agency funds are used to account for assets the government holds on behalf of others in a purely custodial capacity. Agency funds involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other govermnents. The child supp01t employee deductions offset account (fund 0807) temporarily holds money withheld from the salaries of state employees for child suppo1t deductions subsequently distributed through the statewide clearing house. Departmental suspense (fund 0900) provides a temporary depositmy for money held in suspense pending fund disposition. Items held in the fund are cleared to the various special funds or the general revenue fund, or are returned to the payer. Private-Purpose Trust Funds Private-Purpose Trust Funds are used to account for all other trust anangements whose principal and interest benefit individuals, private organizations, or other govermnents. The service contract providers securities trust account (fund 0846) holds financial security deposits required to be paid by service contract providers. The auctioneer education and recovety trust fund (fund 0898) holds funds collected as additional fees from licensed auctioneers for payment of claims against licensed auctioneers and for education of auctioneers and promotion of the profession. Basis of Accounting The basis of accounting determines when revenues and expenditures or expenses are recognized in the accounts repmted in the fmancial statements. The accounting and fmancial repmting treatment applied to a fund is determined by its measurement focus. Governmental fund types that build the fund fmancial statements are accounted for using the modified accrual method basis of accounting. Under the modified accrual, revenues are recognized in the period in which they become both measurable and available to finance operations of the fiscal year or liquidate liabilities existing at fiscal year-end. The State of Texas considers receivables collected within sixty (60) days after year-end to be available and recognizes them as revenues of the current year for fund fmancial statements prepared on the modified accrual basis. Expenditures and other uses of financial resources are recognized when the related liability is incuned. Govermnental adjustment fund types that will build the govermnent-wide financial statements are accounted for using the full accrual method of accounting. The following activities are recognized in these fund types: Capital assets, Accumulated depreciation, Unpaid employee compensable leave, The unmatured debt service (principal and interest) on general long-term liabilities, Long-term capital leases, Long-term claims and judgments, and Full accrual revenues and expenses. 12

19 UNAUDITED Private-purpose trust funds are accounted for on the full accrual basis of accounting. Under the full accrual basis of accounting, revenues are recognized when earned and expenses are recognized at the time liabilities are incurred. Budget and Budgetary Accounting The budget is prepared biennially and represents appropriations authorized by the legislature and approved by the governor (the General Appropriations Act). Unencumbered appropriations are generally subject to lapse 60 days after the end of the fiscal year for which they were appropriated. Assets, Liabilities, and Fund Balances/Net Assets Assets Cash and Cash Equivalents Short-term highly liquid investments with an original maturity of three months or less are considered cash equivalents. Restricted Assets Restricted assets include monies or other resources restricted by legal or contractual requirements. These assets include proceeds of enterprise fund general obligation and revenue bonds and revenues set aside for statutory or contractual requirements. Inventories Inventories include both merchandise inventories on hand for sale and consumable inventories. Inventories are valued at cost, generally utilizing the first-in, flrst-out method. The consumption method of accounting is used to account for inventories that appear in the governmental fund types. The cost of these items is expensed when the items are consumed. Capital Assets Assets with an initial, individual cost of more than 5,000 and an estimated useful life in excess of one year are capitalized. These assets are capitalized at cost or, if not purchased, at appraised fair value as of the date of acquisition. Purchases of assets by governmental funds are repotted as expenditures. Depreciation is reported on all"exhaustible" assets. Assets are depreciated over the estimated useful life of the asset using the straight-line method. Liabilities Accounts Payable Accounts payable represents the liability for the value of assets or services received at the balance sheet date for which payment is pending. 13

20 UNAUDITED Employees' Compensable Leave Balances Employees' compensable leave balances represent the liability that becomes "due" upon the occun-ence of relevant events such as resignations, retirements, and uses of leave balances by covered employees. Liabilities are repmted separately as either current or noncurrent in the statement of net assets. These obligations are nmmally paid from the same funding source from which each employee's salary or wage compensation was paid. Fund Balance/Net Assets The difference between fund assets and liabilities is "net assets" on the government-wide and fiduciary fund statements, and the "fund balance" is the difference between fund assets and liabilities on the governmental fund statements. Fund Balance Components Fund balances for governmental funds are classified as nonspendable, restricted, committed, assigned or unassigned in the fund fmancial statements. Nonspendable fund balance includes amounts not available to be spent because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. Restricted fund balance includes those resources that have constraints placed on their use through external parties or by law through constitutional provisions. Committed fund balance can be used only for specific purposes pursuant to constraints imposed by a formal action of the Texas Legislature, the state's highest level of decision making authority. Assigned fund balance includes amounts constrained by the state's intent to be used for specific purposes, but are neither restricted nor committed. Intent is expressed by (1) the Texas Legislature or (2) a body (for example, a budget or finance committee) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that was not assigned to other funds and was not restricted, committed or assigned to specific purposes within the general fund._ 14

21 UNAUDITED Invested in Capital Assets, Net of Related Debt Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bond, notes and other debt that are attributed to the acquisition, construction, or improvement of those assets. Restricted Net Assets Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, grantors, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Assets Unrestricted net assets consist of net assets that do not meet the definition of the two preceding categories. Unrestricted net assets often have constraints on resources, which are imposed by management but can be removed or modified. INTERFUND ACTIVITIES AND BALANCES The agency has the following types of transactions between funds: 1) Transfers: Legally required transfers that are reported when incurred as "transfers in" by the recipient fund and as "transfers out" by the disbursing fund. 2) Reimbursements: Reimbursements are repayments from funds responsible for expenditures or expenses to funds that made the actual payment. Reimbursements of expenditures made by one fund for another are recorded as expenditures in the reimbursing fund and as a reduction of expenditures in the reimbursed fund. Reimbursements are not displayed in the fmancial statements. The composition of the agency's interfund activities and balances are presented in Note

22 : i UNAUDITED NOTE 2: CAPITAL ASSETS A summary of changes in Capital Assets for the year ended August 31, 2012 is presented below: GOVERNMimALACfMfli!S _!)_!!jlrc~iable As,sels.. _ ~uil~i~g~and Build in~ lllljl~~~~rnents.._ F!i_fl1Jlure a~_d &juipn~nt V~hicle, Boats and Aircraft Total Depreciable Assets Less Accumulate_d D~Jl.r~ciation for: _.. Buildu1g~ a!'~ ~ui~ir)g[mprovelll()nt~- Funtiturc a~~ l!g~ipn}c~t i.! ' I (!55.3G4.?6Y - :, 1 _... (184,424,9.2): (414,64t.55Ji L 1. _p7,274}l (3!J,!86.s7): Vehicles, Boats and Aircraft (42/iso:2oll 1 : q. - (50,782.76)! To~al Accurnulate~- Depreciati?~ De_erecia~l~ ~~ets, Net Al!tortiza_ble,Assels ~ bttangi~e Computer Software Total t\morti~blea~sel~-~-lntangiblt:_ ; t 30, , i Less Accumulated Amorti1Jition for: I I i i Comp~ierSoftware J (30,041.73)i l.. -- i -.-- f (30,041.73)) Total Accumulated Amorti1Jition i (30,041.73)! 0 I 0! 0! 0! (30,041.73)[. _An'j)rtizab~eAss~ts:Intangible,NeJ 0! 0 I 0! 0 i 0! 0 i 0 i Guwrnmcn_t_lll t\~-"litics Capital Assets,Net :'--~~2:;:;,31~,0;;;,54:;;;.02;;,!;..., ~0:;,;1====,;:.,0..,1 ~-~~.,;:0~! ==,:(..;;46:.;,,39;;,1;;;.24;I;.)'~--~,.;:,.,O ~-==,;;;18~4,66,;;;2;;;;.7.;;,.;8 i NOTE 3: DEPOSITS, INVESTMENTS AND REPURCHASE AGREEMENTS Not applicable NOTE 4: SHORT-TERM LIABILITIES Not applicable 16

23 UNAUDITED NOTE 5: LONG TERM LIABILITIES Changes In Long-Term Liabilities During the year ended August 31, 2012, the following changes occurred in liabilities. 1,626,149.92) 2,002, ,183, Notes and Loans Payable: The agency did not have any notes or loans payable as of August 31, Employees' Compensable Leave If a state employee has had continuous employment with the state for at least six months, the state employee is entitled to be paid for all unused vacation time accrued in the event of the employee's resignation, dismissal, or separation from state employment. Expenditures for accumulated annual leave balances are recognized in the period paid or taken in governmental fund types. For these fund types, the liability for unpaid benefits is recorded in the statement of net assets. No liability is recorded for non-vesting employees accumulating rights to receive sick pay benefits. This obligation is usually paid from the same funding source(s) from which the employee's salary or wage compensation was paid. NOTE6:BONDEDINDEBTEDNESS Not applicable NOTE 7: CAPITAL LEASES Not applicable NOTE 8: OPERATING LEASES Not applicable NOTE 9: RETIREMENT PLANS Not applicable NOTE 10: DEFERRED COMPENSATION Not applicable NOTE 11: POSTEMPLOYMENT HEALTH CARE AND LIFE INSURANCE BENEFITS Not applicable 17

24 ... UNAUDITED NOTE 12: INTERFUND ACTIVITIES AND TRANSACTIONS The Texas Depmtment of Licensing and Regulation experienced routine transfers with other state agencies that were consistent with the activities of the fund making the transfer. Repayment of interagency balances will occur within one year from the date of the fmancial statement. Individual balances and activity at August 31, 2012 follows: Due From/Due to Due From Other Agencies Due To Other Agencies Source General Revenue, Dedicated (01) ' ' j Appd Fund 0099, D23 Fund 0990 I I Agency 405, Fund 0099 I 7, I Transfer -.. ~ ~ "! l '" Total Due From/To Other Agencies I 7, '"'"''M''<' o '"._, ~ Operating Transfers Transfers In Transfers Out Purpose General Revenue, Dedicated (01) I I Appd Fund 0099, D23 Fund 0990 I I Agency 405, Fund 0099 I 115,112.06! SB 1005, 81st Leg, RS.. 1 I Total Transfers i 115,112.06! - ' I NOTE 13: CONTINUANCE SUBJECT TO REVIEW Under the Texas Sunset Act, the Texas Department of Licensing and Regulation will be abolished effective September 1, 2019, unless continued in existence by the 85th Legislature as provided by the Act. If abolished, the agency may continue until September 1, 2020, to close out its operations. NOTE 14: ADJUSTMENTS TO FUND BALANCES AND NET ASSETS The restatement of (14,797.48) to the Begitming Fund Balance eliminates BRP Appropriation Adjustments previously carried forward from AY (12,611.33), from A Y , and from A Y (2,186.74) on the agency's General Revenue Reconciliation. NOTE 15: CONTINGENT LIABILITIES Not applicable NOTE 16: SUBSEQUENT EVENTS Not applicable NOTE 17: RISK MANAGEMENT Not applicable 18

25 UNAUDITED NOTE 18: MANAGEMENT DISCUSSION AND ANALYSIS Not applicable NOTE 19: THE FINANCIAL REPORTING ENTITY Not applicable NOTE 20: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Not applicable NOTE 21: N/A Not applicable to the AFR reporting requirement process NOTE 22: DONOR RESTRICTED ENDOWMENTS Not applicable NOTE 23: EXTRAORDINARY AND SPECIAL ITEMS Not applicable NOTE 24: DISAGGREGATION OF RECEIVABLE AND PAYABLE BALANCES Not applicable NOTE 25: TERMINATION BENEFITS Not applicable NOTE 26: SEGMENT INFORMATION Not applicable 19

26 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit A-1- Combining Balance Sheet- All General and Consolidated Funds August 31, 2012 Operators and Beauty School Barber School Chauffeurs License Tuition Protection Tuition Protection General Account Account Account Fund 1 Fund 1 Fund 1 Fund 1 (0001) (0990) (0108) (5081) U/F{OOOQ U/F {0099} UIF {0108} U/F {5081} ASSETS Current Assets: Cash Cash On Hand 200 Cash In State Treasury 195, , Legislative Appropriations 3,812, Due from Other Flmds 7, Consumable Inventories 170, Total Current Assets 3,983~ , , , Total Assets 3,983, , , , LIABILITIES AND FUND BALANCES Liabilities Current Liabilities: Payables from: Accounts 711, Payroll 1,853, , Funds Held for Others Total Cun ent Liabilities 2,564, , Total Liabilities 2,564, , Fund Balances (Deficits): Nonspendable for: Inventories 170, Committed 195, , Assigned Unassigned 1,248, Total Fund Balances 1,418, Total Liabilities and Fund Balances 3,983, , , , The accompanying ttotes to the financial statements are an integral part ofthis statement.

27 UNAUDITED Departmental Suspense Account Fund 1 (0999) U/.F(0900) Total (Exh. I) 89, , , ,812, , , ,302, , ,302, , ,861, ,572, ,572, , , , , , , ,248, ,729, ,302, The accompanying notes to the financial statements are an integral part of this statement.

28 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit I-1 -Combining Statement of Fiduciary Net Assets- Private-Purpose Trust Funds August 31, 2012 Ptivate- Ptivate- Pm1wse Tm.st Purpose Tm.st Ftm<ll Fun<l2 (0846) (0898) Totals U/F (0846) UIF (0898) (Ex VI) ASSETS Cash and Cash Equivalents Cash in State Treasuzy 352, , , Total Current Assets 352, , , Total Assets 352, , , LIABILITIES Current Liabilities Funds Held for Others Total Current Liabilities Total Liabilities NET ASSETS Held in Tmst For: Individuals, Organizations, and Other Governments Expendable 387, , Non-Expendable 352, , Net Assets 352, , , The accompanying notes to the financial statements are an integral part of this statement.

29 UNAUDITED 23 The accompanying notes to the financial statements are an integral part of this statement.

30 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Exhibit J-1- Combining Statement of Changes in Assets and Liabilities- Agency Funds August 31, 2012 Agency Fuml #1 (0807) U/F (0807) Beghming Balance 9/l/2011 Additions Deductions Ending Balance 8/31/2012 ASSETS Cash in State Treasury Total Assets 4,745 69, ,745 69, , , ,371 5,371 LIABILITIES Funds Held for Others Total Liabilities 4,745 64, ,745 64, , , ,371 5,371 Totals -All Agency Funds ASSETS Cash in State Treasury Total Assets 4,745 69, , , , ,371 5,371 LIABILITIES Funds Held for Others Total Liabilities 4,745 64, ,745 64, , , ,371 5, The accompanying notes to the financial statements are an integral part of this statement.

31 DAFR JD2 C1 13 CYCLE: 11/C9/12 22:CC 5282 PROD RvJS R452 2(0RG) 3(FND) ( ) 3(GLA) RUN DATE: 11/10/12 TIME: C4:28 45 CFY: 13 CFM: C3 LCY: 12 USAS LCM: 00 FICHE: C1 01 (AGY) 452 (AGL) (ORG) (PRG) (GRT) (NAC) (PRJ) (APP) (SS1) (FND) (COB) (SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT (GWFS) PERCENT OF YEAR ELAPSED: 1CO% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 1 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 01 GENERAL GAAP FUND CC01 GENERAL REVENUE (0001)-GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ N 0010 CASH ON HAND N 0020 PETTY CASH ON HAND * GL CLS 001 CA CASH ON HAND 200.0C 2CC.CC N 0045 CASH IN 'state TREASURY N 0047 SHARED CASH N 0048 LEGISLATIVE CASH * GL CLS 004 CA CASH IN STATE TREASURY 228,595, ,595, co 2C2,583,70C.C4-.co 2C2,583, oo N 9000 LEGISLATIVE APPROPRIATIONS 3,812, ,222, N U'l * GL CLS 020 CA LEGISLATIVE APPROPRIATIONS N 0231 ACCTS. RECEIVABLE - UNBILLED * GL CLS 052 CA ACCOUNTS RECEIVABLES, NET N 0279 CA INTERFUND RECEIVABLE-NO POST DOC * GL CLS 065 CA INTERFUND RECEIVABLE N 0283 DUE FROM OTHER FUNDS N 0283 DUE FROM OTHER FUNDS N 0283 DUE FROM OTHER FUNDS ,812, cc.cc.cc.oc 4,222, oo.oc.oo.oc.oc.oc * GL CLS 070 CA DUE FROM OTHER FUNDS N 0284 DUE FROM OTHER AGENCIES N 0284 DUE FROM OTHER AGENCIES N 0284 DUE FROM OTHER AGENCIES 3600CC * GL CLS 072 CA DUE FROM OTHER AGENCIES N 0285 CONSUM. INVENTORIES {MAT. AND SUPPLI 170, , * GL CLS C80 CA CONSUMABLE INVENTORIES 170, ,074.02

32 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3(FND). ) 3(GLA) RON DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 OSAS LCM: 00 FICHE: TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 2 GAAP FOND GROUP 01 GOVERNMENTAL GAAP FOND TYPE 01 GENERAL GAAP FOND 0001 GENERAL REVENUE (0001) -GENERAL *************************************************************************************************************************~********** GL GL B/C COMP AGY CURRENT PRIOR YEAR YEAR CT CLS IND GL TITLE GL ************************************************************************************************************************************ N 0290 MDSE INVEll<"TORIES (STORES FOR RESALE) * GL CLS 081 CA MERCHANDISE INVENTORIES * GLA CAT 01 CURRENT ASSETS 3,983, ,355, N 0410 AMTS TO BE PROVI FY-OTHER OBLIGATION * GL CLS 190 RETIREMNT OF OTHR GENERAL LONG-TERM DEBT * GLA CAT 11 OTHER DEBITS.oo ** TOTAL ASSETS AND OTHER DEBITS 3,983, ,355, N 0"> N 1009 VOUCHERS PAYABLE N 1010 ACCOUNTS PAYABLE * GL CLS 200 CL ACCOUNTS PAYABLE 14, ' , ' ,036, ,084, N 1015 N 1016 PAYROLL PAYABLE PAYROLL PAYABLE-SEMIMONTHLY 1,853, ,836, * GL CLS 203 CL PAYROLL PAYABLE 1,853, ,836, N 1049 CL INTERFOND PAYABLE * GL CLS 205 CL INTERFOND PAYABLE N 1053 DUE TO OTHER FONDS N 1053 DOE TO OTHER FONDS * GL CLS 210 CL DOE TO OTHER FONDS N 1050 DOE TO OTHER AGENCIES N 1050 DOE TO OTHER AGENCIES N 1050 DOE TO OTHER AGENCIES N 1050 DOE TO OTHER AGENCIES N 1050 DOE TO OTHER AGENCIES oo,00 * GL CLS 211 CL DUE TO OTHER AGENCIES

33 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3 (FND) ) 3 (GLA) RUN DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS} PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD~ ADJUSTMENT FY: 12 PROD SYSTEM **************************************************************************************************************************PAGE 3 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 01 GE~ GAAP FUND 0001 GENERAL REVENUE (0001)-GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ N -...) N 1025 CL EMPLOYEE'S COMPENSABLE LEAVE * GL CLS 230 CL EMPLOYEE'S COMPENSABLE LEAVE N 1149 FUNDS HELD FOR OTHERS * GL CLS 300 CL FUNDS HELD FOR OTHERS * GLA CAT 21 CURRENT LIABILITIES ** TOTAL LIABILITIES N 2050 FD SAL-RESERVED FOR ENCUMBRANCES * GL CLS 360 FD BAL RESERVED FOR ENCUMBRANCES N 2075 FD BAL-RESERVED FOR CONSUM. INVENT. N 2080 FD SAL-RESERVED FOR MERCHAN. INVENT. * GL CLS 362 FD BAL RESERVED FOR INVENTORIES N 2065 FD BAL-RESERVED FOR IMPREST ACCOUNTS * GL CLS 364 FD BAL RESERVED FOR IMPREST ACCT N 2301 FD BAL-NONSPND FOR INVENTORY * GL CLS 510 FD BAL-NONSPENDABLE N **** 2325-POST CLS FFS FB UNASSIGNED * GL CLS 550 FD SAL-UNASSIGNED N 2240 FB UNRESERVED-UNDESIGNATED OTHER N 9999 FFS SYSTEM CLEARING GL LEVEL ONLY * GL CLS 620 FUND BALANCE - UNRESERVED/UNDESIGNATED N 2055 N 2060 N 2250 FB - UNENCUM APPROP - SUBJECT TO LAP FB-RES FOR UNENCUM APPR-FUTURE OPERA FUND BAL UNRES-RES'D SELF-INSURED PL 2,564, ,920, ,564, ,920, oo 170, , , , ,248, ,302, ,248, ,302, co

34 DAFRSSSl 452 J.D CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) RUN DATE: 11/10/12 TIME: 04: (FND) ( ) 3(GLA) CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPoRT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 4 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 01 GENERAL GAAP FUND 0001 GENERAL REVENUE (0001)-GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ N 00 * GL CLS 630 OBSOLETE FB ACCTS UNDER GASB N 9001 ENCUMBRANCES N 9003 ENCUMBRANCES (REPORTING AGENCIES) N 9005 BUDGET RESERVATION FOR ENCUMBRANCES * GL CLS 800 BUDGETARY N 9200 PAYROLL CLEARING N 9201 PAYROLL CLEARING OFFSET N 9202 PAYROLL SYSTEM CLEARING * GL CLS 950 SYSTEM ACCOUNTS * GLA CAT 51 FUND BALANCE (DEFICITS) ** TOTAL OTHER CREDITS AND FUND BALANCE/EQUITY WITH CURRENT CHANGES ** TOTAL LIABILITIES AND FUND BALANCE/EQUITY * GAAP FUND 0001 GENERAL REVENUE (0001)-GENERAL.oo 111, , , , oo.oo.oo.oo 1,418, ,435, ,418, ,435, ,983, ,355, oo

35 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3(FNDJ ) 3 (GLA) RUN DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: (AGY)452 (AGL) (ORG) (PRG) (GRT) (NAC) (PRJ) (APP) (SS1) (FND) (COB) (SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 5 GAAP FUND GROUP Oi GOVERNMENTAL GAAP FUND TYPE 01 GENERAL GAAP FUND 0099 OP~R&CHAUFFER LIC FD (0099) -GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR *****************************************************************************************~****************************************** N 0045 CASH IN STATE TREASURY N 0047 SHARED CASH * GL CLS 004 CA CASH IN STATE TREASURY N 0284 DUE FROM OTHER AGENCIES * GL CLS 072 CA DUE FROM OTHER AGENCIES * GLA CAT 01 CURRENT ASSETS , ' , , , , , , , , N \.D ** TOTAL ASSETS AND OTHER DEBITS N 1009 VOUCHERS PAYABLE N 1010 ACCOUNTS PAYABLE * GL CLS CL ACCOUNTS PAYABLE N 1015 PAYROLL PAYABLE * GL CLS 203 CL PAYROLL PAYABLE * GLA CAT 21 CURRENT LIABILITIES ** TOTAL LIABILITIES N **** 2325-POST CLS FFS FB UNASSIGNED * GL CLS 550 FD BAL-UNASSIGNED N 2240 N 9999 FB-UNRESERVED-UNDESIGNATED-OTHER FFS SYSTEM CLEARING - GL LEVEL ONLY * GL CLS 620 FUND BALANCE - UNRESERVED/UNDESIGNATED N 9202 PAYROLL SYSTEM CLEARING * GL CLS 950 SYSTEM ACCOUNTS 7, , oo , , , , , , , , oo

36 DAFR JD2 Ol 13 CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3(FND) ) 3(GLA) RUN DATE: ll/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM ***********************************************~**************************************************************************PAGE 6 GAAP FUND GROUP Ol GOVERNMENTAL GAAP.FUND TYPE Ol GENERAL GAAP FUND 0099 OPERATOR&CHAOFFER LIC FD (0099) -GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND.GL TITLE GL YEAR YEAR ************************************************************************************************************************************ * GLA CAT 51 FUND BALANCE (DEFICITS) ** TOTAL OTHER CREDITS AND FUND BALANCE/EQUITY WITH CURRENT CHANGES.oo ** TOTAL LIABILITIES AND FUND BALANCE/EQUITY 7, , * GAAP FUND 0099 OPERATOR&CHAUFFER LIC FD (0099} -GENERAL.oo.oo w 0

37 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3(FND) ) 3 (GLA) RUN DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: (AGY)452 (AGL) {ORG) {PRG) {GRT) {NAC) {PRJ) {APP) {SS1) (FND) {COB) {SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION {452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY~ 12 PROD SYSTEM **********************~***************************************************************************************************PAGE 7 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 01 GENERAL GAAP FUND 0108 PRI BEAUTY CULT SCH FD {0108)-GENERAL ************************************************************************************************************************************ GL GL B/C COMP CT CLS IND GL TITLE AGY GL CURRENT YEAR ***********************************~************************************************************************************************ N 0045 CASH IN STATE TREASURY 195, , * GL CLS 004 CA CASH IN STATE TREASURY 195, , * GLA CAT 01 CURRENT ASSETS 195, , ** TOTAL ASSETS AND OTHER DEBITS 195, , N 1009 VOUCHERS PAYABLE PRIOR YEAR w f-> * GL CLS 200 CL ACCOUNTS PAYABLE * GLA CAT 21 CURRENT LIABILITIES ** TOTAL LIABILITIES N 2315 FD SAL-COMMITTED 195, , * GL CLS 530 FD SAL-COMMITTED 195, , N **** 2325-POST CLS FFS FB UNASSIGNED.oo * GL CLS 550 FD BAL-UNASSIGNED N 2240 FB-UNRESERVED-UNDESIGNATED-OTHER * GL CLS 620 FUND BALANCE - UNRESERVED/UNDESIGNATED.oo.oo * GLA CAT 51 FUND BALANCE (DEFICITS) 195, ' ** TOTAL OTHER CREDITS AND FUND BALANCE/EQUITY WITH CURRENT CHANGES 195, , ** TOTAL LIABILITIES AND FUND BALANCE/EQUITY 195, , * GAAP FUND 0108 PRI BEAUTY CULT SCH FD (0108)-GENERAL

38 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3 {FND) ) 3 (GLA) RON DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: (AGY)452 (AGL) {ORG) (PRG) (GRT) (NAC) {PRJ) (APP) (SS1) (FND) (COB) (SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 8 GAAP FOND GROUP 01 GOVERNMENTAL GAAP FOND TYPE 01 GENERAL GAAP FUND 0900 DEPARTMENTAL SUSPENSE (0900) - GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ N 0047 SHARED CASH 89, , GL CLS 004 CA CASH IN STATE TREASURY 89, , N 0279 CA INTERFUND RECEIVABLE-NO POST DOC.oo * GL CLS 065 CA INTERFOND RECEIVABLE * GLA CAT 01 CURRENT ASSETS 89, , ** TOTAL ASSETS AND OTHER DEBITS 89, , w N N 1049 CL INTERFUND PAYABLE * GL CLS 205 CL INTERFOND PAYABLE N 1046 DEFERRED/UNEARNED REVENUES * GL CLS 220 CL DEFERRED/UNEARNED REVENUES.oo.oo * GLA CAT 21 CURRENT LIABILITIES. 00 ** TOTAL LIABILITIES N 2320 FD BAL-ASSIGNED 89, , * GL CLS 540 FD BAL-ASSIGNED 89, , N **** 2325-POST CLS FFS FB UNASSIGNED.oo * GL CLS 550 FD BAL-UNASSIGNED N 9999 FFS SYSTEM CLEARING - GL LEVEL ONLY * GL CLS 620 FUND BALANCE - ONRESERVED/UNDESIGNATED.oo * GLA CAT 51 FUND BALANCE (DEFICITS) 89, ,

39 DAFRB5B1 452 JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) ( 3(FND) ) 3(GLA) RUN DATE: 11/10/12 TIME: 04:2B 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FO~~T(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD~ ADJUSTMENT FYu 12 PROD SYSTEM **************************************************************************************************************************PAGE 9 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 01 GENERAL GAAP FUND 0900 DEPARTMENTAL SUSPENSE (0900) - GENERAL ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ ** TOTAL OTHER CREDITS AND FOND BALANCE/EQUITY WITH CURRENT CHANGES 89, , ** TOTAL LIABILITIES Ah~ FUND BALANCE/EQUITY 89, , * GAAP FUND 0900 DEPARTMENTAL SUSPENSE (0900) - GENERAL w

40 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3 (FND) ( ) 3 (GLA) RUN DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: (AGY)452 (AGL) (ORG) (PRG) (GRT) (NAC) (PRJ) (APP) (SS1) (FND) (COB) (SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 10 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 01 GENERAL GAAP FUND 5081 GR ACCT - BARBER SCHOOL TUITION PROTECT! ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ N 0045 CASH IN STATE TREASURY 25, , * GL CLS 004 CA CASH IN STATE TREASURY 25, , * GLA CAT 01 CURRENT ASSETS 25, , ** TOTAL ASSETS AND OTHER DEBITS 25, , N 1009 VOUCHERS PAYABLE w..,. * GL CLS 200 CL ACCOUNTS PAYABLE * GLA CAT 21 CURRENT LIABILITIES.oo ** TOTAL LIABILITIES.oo N 2315 FD "BAL-COMMIT'l'ED 25, , * GL CLS 530 FD SAL-COMMITTED 25, ' N **** 2325-POST CLS FFS FB UNASSIGNED * GL CLS 550 FD BAL-UNASSIGNED N 2240 FB-UNRESERVED-UNPESIGNATED-OTHER * GL CLS 620 FUND BALANCE - UNRESERVED/UNDESIGNATED * GLA CAT 51 FUND BALANCE (DEFICITS) 25, , ** TOTAL OTHER CREDITS AND FUND BALANCE/EQUITY WITH CURRENT CHANGES 25, , ** TOTAL LIABILITIES AND FUND BALANCE/EQUITY 25, , * GAAP FUND 5081 GR ACCT - BARBER SCHOOL TUITION PROTECT! * GAAP FUND TYPE 01 GENERAL

41 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3(FND) l 3(GLA) RON DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: (AGY) 452 (AGL) (ORG) (PRG) (GRT) (NAC) (PRJ) (APP) (SS1) (FND) (COB) (SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE ll GAAP FOND GROUP 01 GOVERNMEr<"TAL GAAP FOND TYPE 11 CAPITAL ASSET BASIS CONVERSION ADJUSTMTS GAAP FOND 9998 GEN FIXED ASSETS ACCT GROUP ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ w U Y 0539 BC ACCTS. REC * GL CLS 052 CA ACCOUNTS RECEIVABLES 1 NET N 0284 DUE FROM" OTHER AGENCIES * GL CLS 072 CA DUE FROM OTHER AGENCIES * GLA CAT 01 CURRENT ASSETS N y y VEHICLES, BOATS AND AIRCRAFT BC VEHICLES, BOATS AND AIRCRAFT BC ACCUM DEPR-VEHICLES, BOATS & AIRC * GL CLS 150 VEHICLES, BOATS Jll.I"D AIRCRAFT, NET N 0345 y 0645 y 0650 FURNITURE/EQUIPMENT BC FURNITuRE/EQUIPMENT BC ACCUM DEPR-FURN & EQUIP * GL CLS 151 FURNITURE AND EQUIPMENT, NET y 0625 y 0630 BC BUILDINGS & BLDG IMPROVEMENTS BC ACCUM DEPR-BLDGS & BLDG IMPROV * GL CLS 152 BUILDINGS & BLDG IMPROVEMENTS, NET N 0383 OTHER CAPITAL ASSETS-DEPRECIABLE y 0683 BC OTHER CAPITAL ASSETS-DEPRECIABLE y 0684 BC ACCUM DEPR-OTHER CAPITAL ASSETS * GL CLS 158 OTHER CAPITAL ASSETS, NET y 0693 BC COMPUTER SOFTWARE INTANGIBLE y 0696 BC-ACCUM AMORT/COMPUTER SOFTWARE-INT * GL CLS 165 COMPUTER SOFTWARE-INTANGIBLE,NET oo.oo.oo.oo 86, , , , , , , , , ' , , , ' , , , , ' ' 04l , '

42 DAFR JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3 (FND) ) 3 (GLA) RUN DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: ll TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD: ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 12 GAAP FOND GROUP 01 GOVERNMENTAL GAAP FOND TYPE 11 CAPITAL ASSET BASIS CONVERSION ADJUSTMTS GAAP FOND 9998 GEN FIXED ASSETS ACCT GROUP ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ * GLA CAT 06 NON-CURRENT ASSETS 184, , ** TOTAL ASSETS AND OTHER DEBITS 184, , Y **** 3505-POST CLS BC CAP ASSETS/DEBT 184, , * GL CLS 410 INVESTED IN CAP ASSETS,NET RELATED DEBT 184, , Y 9992 BC SYSTEM CLEARING * GL CLS 430 UNRESTRICTED NET ASSETS * GLA CAT 45 NET ASSETS 184, , w en N 2240 FB-UNRESERVED-UNDESIGNATED-OTHER.oo N 9999 FFS SYSTEM CLEARING - GL LEVEL ONLY * GL CLS 620 FUND BALANCE - UNRESERVED/UNDESIGNATED.oo N 2030 INVESTMENT IN GENERAL FIXED ASSETS * GL CLS 630 OBSOLETE FB ACCTS UNDER GASB 34 * GLA CAT 51 FUND BALANCE (DEFICITS). 00 ** TOTAL OTHER CREDITS AND FOND BALANCE/EQUITY WITH CURRENT CHANGES 184, , ** TOTAL LIABILITIES AND FOND BALANCE/EQUITY 184, , * GAAP FUND 9998 GEN FIXED ASSETS ACCT GROUP * GAAP FUND TYPE 11 CAPITAL ASSET BASIS CONVERSION ADJUSTMTS

43 DAFRS5S1 452 JD CYCLE: 11/09/12 22: PROD RJE R452 2(0RG) 3(FND) ( ) 3(GLA) RUN DATE: 11/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 USAS LCM: 00 FICHE: (AGY)452 (AGL) (ORG) (PRG) (GRT) (NAC) (PRJ) (APP) (SS1) (FND) (COB) (SS2) (AOB) (GLA) TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) PERCENT OF YEAR ELAPSED: 100% REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM **************************************************************************************************************************PAGE 13 GAAP FUND GROUP 01 GOVERNMENTAL GAAP FUND TYPE 12 LONG-TERM LIAB BASIS CONVERSION ADJUSTMT GAAP FUND 9997 LONG-TERM LIABILITIES BASIS CONVERSION ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ N 0410 AMTS TO BE PROVI FY-OTHER OBLIGATION.oo w -...! * GL CLS 190 RETIREMNT OF OTHR GENERAL LONG-TERM DEBT * GLA CAT 11 OTHER DEBITS ** TOTAL ASSETS AND OTHER DEBITS N y * GL CLS CL EMPLOYEE'S COMPENSABLE LEAVE BC CL EMPLOYEE 1 S COMPENSABLE LEAVE 230 CL EMPLOYEE'S COMPENSABLE LEAVE Y 1625 BC CL CAPITAL LEASE OBLIGATIONS * GL CLS 260 CL CAPITAL LEASE OBLIGATIONS * GLA CAT 21 CURRENT LIABILITIES Y 1700 BC NC EMPLOYEE 1 S COMPENSABLE LEAVE * GL CLS 301 NC EMPLOYEE 1 S COMPENSABLE LEAVE Y 1715 BC NC CAPITAL LEASES OBLIGATIONS * GL CLS 304 NC CAPITAL LEASE OBLIGATIONS * GLA CAT 26 NON-CURRENT LIABILITIES ** TOTAL LIABILITIES Y 3505 BC CAPITAL ASSETS, NET OF RELATED DE * GL CLS 410 INVESTED IN CAP ASSETS,NET RELATED DEBT Y **** 3950-POST CLS BC UNREST NET ASSETS Y 9992 BC SYSTEM CLEARING.oo 1' 183' ,127, ' 183' ,127, oo.oo 1, 183, ,127, , , , , oo 818, , ,002, ,957, oo.oo 2,002, ,957,019.97

44 DAFR JD PROD RJE R452 2(0RG) 3 (FND) ) 3 (GLA) CYCLE: 11/09/12 22: RON DATE: ~l/10/12 TIME: 04:28 45 CFY: 13 CFM: 03 LCY: 12 OSAS LCM: 00 FICHE: PERCENT OF YEAR ELAPSED: 100% TEXAS DEPT OF LICENSING & REGULATION (452) STATEMENT OF NET ASSETS - BALANCE SHEET FORMAT(GWFS) REPORT PERIOD= ADJUSTMENT FY= 12 PROD SYSTEM *********************************~****************************************************************************************PAGE 14 GAAP FOND GROUP 01 GOVERNMENTAL GAAP FOND TYPE 12 LONG-TERM LIAB BASIS CONVERSION ADJUSTMT GAAP FOND 9997 LONG-TERM LIABILITIES BASIS CONVERSION ************************************************************************************************************************************ GL GL B/C COMP AGY CURRENT PRIOR CT CLS IND GL TITLE GL YEAR YEAR ************************************************************************************************************************************ * GL CLS 430 UNRESTRICTED NET ASSETS 2,002, ,957, * GLA CAT 45 NET ASSETS 2,002, ,957, N 2240 FB-ONRESERVED-ONDESIGNATED-OTHER N 9999 FFS SYSTEM CLEARING - GL LEVEL ONLY.oo * GL CLS 620 FOND BALANCE - UNRESERVED/ONDESIGNATED."oo * GLA CAT 51 FOND BALANCE (DEFICITS) ** TOTAL OTHER CREDITS AND FOND BALANCE/EQUITY WITH CURRENT CHANGES 2,002, ,957, w 00 ** TOTAL LIABILITIES AND FOND BALANCE/EQUITY.oo * GAAP FOND 9997 LONG-TERM LIABILITIES BASIS CONVERSION.oo.oo * GAAP FOND TYPE 12 LONG-TERM LIAB BASIS CONVERSION ADJUSTMT * GAAP FOND GROUP 01 GOVERNMENTAL " AGENCY oo

45 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format (Dr-Pos, Cr=Neg) CHG/SVC-LICENSES, FEES & PERMITS 3005 CHG/SVC-LICENSES, FEES & PERMITS 3005 CHG/SVC-LICENSES, FEES & PERMITS 3005 CHG/SVC-LICENSES, FEES & PERMITS 3035 N -112, N -142, N -13, N -1,758 w CHG/SVC-LICENSES, FEES & PERMITS 3719 N -153, CHG/SVC-LICENSES, FEES & PERMITS 3879 N -129, CHG/SVC-PROFESSIONAL FEES 3175 N -338, CHG/SVC-OTHER CHGS FOR GDS & SVCS 3752 N -787, CHG/SVC-OTHER CHGS FOR GDS & SVCS 3765 N -10,882 Prog Rev - Charges For Services -1,689, SALARIES AND WAGES 7001 N 145, SALARIES AND WAGES 7002 N 16,612, SALARIES AND WAGES 7003 N 88, SALARIES AND WAGES 7017 N 745, SALARIES AND WAGES 7021 N 13, SALARIES AND WAGES 7022 N 438, SALARIES AND WAGES 7023 N 83, SALARIES AND WAGES 7047 N 78, SALARIES AND WAGES 7050 N 63, Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page 1 of 10 Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government 1 FM! FMX FMX Sitemap I Contact FM Accessibility Policy ( Privacy and Security Policy

46 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format (Dr-Pos,.;:: PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3420 TRAVEL 3420 TRAVEL 3420 TRAVEL 3420 TRAVEL 3420 TRAVEL 3420 TRAVEL 3420 TRAVEL 3420 TRAVEL Susan Combs Texas Comptroller of Public Accounts This report was generated on 11114/12 Page2 of N 1,001, N 1, N 2,058, N 161, N 1,337, N 14, N N 31, N 15, N 46, N 23, N 346, N 99, N 392, N 51, N 220, N 15, N 4, N N 1, Questions? Contact statewide.accounting@cpa.state.b<.us Window on State Government I FM I FMX FMX Sitemap I Contact FM Accessibility Policy 1 Privacy and Security Policy

47 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format ~ f-" TRAVEL 3420 TRAVEL 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3425 MATERIALS AND SUPPLIES 3430 COMMUNICATION AND UTILITIES Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page 3of N 5, N -2, N 265, N 59, N N 7, N N N 1, N N 81, N 6, N -3, N 10, N -33, N 135, N 3, N 9, N -21, N Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government I FM I FMX FMX Sitemap I Contact FM Accessibility Policy ( Privacy and Security Policy

48 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format.<:::> N COMMUNICATION AND UTILITIES Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page4of COMMUNICATION AND UTILITIES 3430 COMMUNICATION AND UTILITIES 3430 COMMUNICATION AND UTILITIES 3430 COMMUNICATION AND UTILITIES 3430 COMMUNICATION AND UTILITIES 3430 COMMUNICATION AND UTILITIES 3435 REPAIRS AND MAINTENANCE 3435 REPAIRS AND MAINTENANCE 3435 REPAIRS AND MAINTENANCE 3435 REPAIRS AND MAINTENANCE 3435 REPAIRS AND MAINTENANCE 3440 RENTALS AND LEASES 3440 RENTALS AND LEASES 3440 RENTALS AND LEASES 3440 RENTALS AND LEASES 3440 RENTALS AND LEASES 3445 PRINTING AND REPRODUCTION 3445 PRINTING AND REPRODUCTION 3450 CLAIMS AND JUDGMENTS 7503 N N 45, N 118, N 62, N 1, N 72, N 36, N 181, N 8, N 7, N 30, N N 72, N N 327, N N 194, N 203, N 59, N 3, Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government! FM 1 FMX FMX Sitemap I Contact FM Accessibility Policy! Privacy and Security Policy

49 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format ~ w CLAIMS AND JUDGMENTS 3510 INTEREST EXPENSE - OTHER 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES 3590 OTHER EXPENSES GR-ORIGINAL APPROPRIATIONS 3700 GR-ORIGINAL APPROPRIATIONS 3700 GR-ORIGINAL APPROPRIATIONS 3705 GR-ADDITIONAL APPROPRIATIONS Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page5 of N 1, N N 7, N 2, N 38, N 2, N 18, N 596, N 1, N N 29, N 96, N 476, N 2, N 33, Expenses 27,355, N -23,797, N 1,370, N 54, N 12, Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government I FM I FMX FMX Sitemap I Contact FM Accessibility Policy 1 Privacy and Security Policy

50 FMQuery: USAS Govt Wide Financial Statements {SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format ~ ~ GR-ADDITIONAL APPROPRIATIONS 3705 GR-ADDITIONAL APPROPRIATIONS 3705 GR-ADDITIONAL APPROPRIATIONS 3705 GR-ADDITIONAL APPROPRIATIONS 3705 GR-ADDITIONAL APPROPRIATIONS 3710 GR-UNEXPENDED BALANCE FORWARD 3710 GR-UNEXPENDED BALANCE FORWARD 3730 GR-LAPSES 3765 GR-OTHER TAX REVENUE 3810 GR-OTHER GENERAL REVENUES 9404 N -12, N -1,337, N -2,058, N -1,001, N -63, N N N 1,216, N -30, N -52, GR-CAPITAL OUTLAY 79 BBal Beginning Balance RESTATEMENTS General Revenues Beginning Balance Restatements Fund 0001 Beginning Balance Beginning Balance as Restated Net Activity Fund 0001 Ending Balance 7379 N 35, ,664, ,435, ,435, N 14, , ,435, ,420, , ,418, Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page6 of10 Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government I FM I FMX FMX Sitemap I Contact FM Accessibility Policy 1 Privacy and Security Policy

51 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted {Month 13) Balances, BC =Both N & Y Trial Balance Format GR-OTHER GENERAL REVENUES 3810 GR-OTHER GENERAL REVENUES General Revenues 3788 N 2, N -2,000 0 ~ U'1 Fund 9000 Beginning Balance Beginning Balance as Restated Net Activity Fund 9000 Ending Balance SALARIES AND WAGES 3400 SALARIES AND WAGES 3400 SALARIES AND WAGES 3400 SALARIES AND WAGES 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3405 PAYROLL RELATED COSTS 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3415 PROFESSIONAL FEES AND SERVICES 3425 MATERIALS AND SUPPLIES 3440 RENTALS AND LEASES N 82, N 1, N 1, N N N N N 7, N 4, N 5, N N N 4,680 Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page 7 of10 Questions? Contact statewide.accounting@cpa.state. tx. us Window on State Government 1 FM 1 FMX FMX Sitemap I Contact FM Accessibility Policy 1 Privacy and Security Policy

52 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC = Both N & Y Trial Balance Format INTEREST EXPENSE - OTHER 3590 OTHER EXPENSES 3590 OTHER EXPENSES TRANSFERS IN Expenses Transfers 7806 N N N 4, , N -115, , j::> CJ) Fund 0990 Beginning Balance Beginning Balance as Restated Net Activity Fund 0990 Ending Balance CLAIMS AND JUDGMENTS 3590 OTHER EXPENSES 79 BBal Beginning Balance Expenses Beginning Balance Fund 0108 Beginning Balance 7237 N 7, N , , , , Beginning Balance as Restated Net Activity Fund 0108 Ending Balance CHG/SVC-LICENSES, FEES & PERMITS -203, , , N 443, Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page8of10 Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government 1 FM I FMX FMX Sitemap I Contact FM Accessibility Policy I Privacy and Security Policy

53 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted (Month 13) Balances, BC =Both N & Y Trial Balance Format (Dr-Pos, Cr=Neg).r;::. -...! BBal Beginning Balance OTHER EXPENSES 79 BBal Beginning Balance Prog Rev- Charges For Services Beginning Balance Fund 0999 Beginning Balance Beginning Balance as Restated Net Activity Fund 0999 Ending Balance Expenses Beginning Balance Fund 5081 Beginning Balance Beginning Balance as Restated Net Activity Fund 5081 Ending Balance 443, , , , , , , N , , , , , DEPRECIATION EXPENSE 3495 DEPRECIATION EXPENSE GR-CAPITAL OUTLAY Expenses 7936 y 29, y 52, , y -35, Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page 9 of10 Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government 1 FM 1 FMX FMX Sitemap I Contact FM Accessibility Policy 1 Privacy and Security Policy

54 FMQuery: USAS Govt Wide Financial Statements (SOA) Statement of Activities By GAAP Fund, Fund, and Object (GOVT) Agency 452 -Texas Department of Licensing and Regulation FY 2012, Adjusted {Month 13) Balances, BC =Both N & Y Trial Balance Format'"'-,... "-~'--' General Revenues -35, BBal Beginning Balance -231, Beginning Balance -231, Fund 0099 Beginning Balance -231, Beginning Balance as Restated -231, Net Activity 46, j::. 00 Fund 0099 Ending Balance -184, SALARIES AND WAGES 7002 y 44, Expenses 44, BBal Beginning Balance 1,957, Beginning Balance 1,957, Fund 0098 Beginning Balance 1,957, Beginning Balance as Restated 1,957, Net Activity 44, Fund 0098 Ending Balance 2,002, Susan Combs Texas Comptroller of Public Accounts This report was generated on 11/14/12 Page 10 of 10 Questions? Contact statewide.accounting@cpa.state.tx.us Window on State Government I FM I FMX FMX Sitemap I Contact FM Accessibility Policy 1 Privacy and Security Policy

55 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION Schedule 6- Summary of Revenues Gene ated by Agency Program or Activity Yea Ended August 31, 2012 and Year Ended August 31,2011 Reappropriated Unappropriated Percent of Informational Agency Program or Activity Revenues Revenues Y-T II Revenue 2011 Air Conditioning and Refrigeration Contractors 82,102 Architectural BatTiers 118,385 (I) (I) (I) 1,962,559 2,044, % 1,947,243 4,367,081 4,485, % 4,370,443 Auctioneers 4, , , % 156,196 Auctioneer Education & Recovery Fund (Fund 0898) 18,913 18, % 17,291 (I) Auto Parts Recyclers 5, , , % 154,600 Barbe ring 72,030 1,280,377 1,352, % 1,336,895 Barber Tutition Account Fee 0% 629 Boiler Inspections 142,150 2,562,199 2,704, % 2,794,779 Combative Sports 30,010 1,001,377 1,031, % 941,083 Cosmetology 768,741 11,71 I,782 12,480,522 I02.63% I2,160,919 Cosmetology Tutition Account Fee 0% 12,730 Electricians 225,221 (I) 4,851,677 5,076, % 4,974,923 Elevator/ Escalator Safety 18,620 I,312,071 1,330, % I,I 73,543 For-Profit Legal Services 18,522 (I) 606, , % 753,943 Identify Recovery Services 7,048 7,048 N/A I,714 Industrialized Housing and Buildings 445, ,796 I02.41% 435,324 License Breeder 24,200 24,200 N/A Licensed Court Interpreters 1,758 (I) 49,714 51, % 50,886 Loss Damage Waivers I8,000 18, % 18,600 Personnel Employment Services 2,025 2, % 5,122 Polygraph Examiners 1 I 1, , % I I8,650 Property Tax Consultants I,350 (I) 533, ,02I 89.87% 595,306 Property Tax Professionals 5,770 (I) 210,728 2I6, % 243,963 Service Contract Providers 211 I56, , % 343,765 Staff Leasing Services 222, , % 2I5,025 Talent Agencies 6,099 6, % I9,332 Temporary Common Worker Providers 19,725 19, % 14,575 Tow Truck Operators I I9,436 (I) (1) 4,433,363 4,552, % 4,676,390 Vehicle Booting 123 5,452 5, % I 1,163 Vehicle Protection Product Warrantors 38,650 38, % 32,550 Vehicle Storage Facilities 2I,248 (I) 1,117,703 I,I38, % 1,179,414 Water Well Drillers and Pump Installers 13,214 (I) 598,454 6ll, % 562,232 Weather Modification 6,675 6, % 6,075 Enforcement General Counsel 0% 11,961 Information Resources Division I0,882 10, % 10,882 Copies 112, , % I 11,290 Return Checks 6,358 6, % 5,030 Other Miscellaneous Governmental Revenue 54,013 54, % 51,540 State Sales Tax 48,040 48, % 37,306 City Tax 7,736 7, % 6,029 MTATax 7,736 7, % 6,029 TOTAL 1,791,289 38,161,474 39,952, % 39,565,370 (I) Includes Texas Online Pass-through Fees. 49

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57 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Schedule 7 M Detail Statement of Revenue Generated by Agency Program or Activity Yenr Ended August 31, 2012 with Comparative Totals for August 31,2011 FY 2012 at Auagust 31, 2012 (12 Months) FY 2011 at August 31,2011 (12 Months) Reappropriated Unappropriated Reappropriated Unappropriated Revenue Revenue Total Revenue Revenue Total Air Conditioning and Refrigeration ContractoJ'S License Fee s s 1,622,371.3S s 1,622, ,523,821 l,s23,821 NC Provider Fee 22,37S.OO 22,375 23,000 23,000 ACR Convenience Fee 2, , Penalty 313, , ,S28.SS 319,S28.55 Certificate of Registration 4,S2S.OO 4,525 S,800 S,800 TexasOnline Subscription Fee 79,388.1S 79,388.IS 74,721 74,721 Third Party Reimbursement Total, Air Conditioning and Refrigeration Contractors 82, s 1,962,5S9.22 2, S, , SS I Architectural Barriers Inspection Filing Fee-TDLR s S.OO Inspection 281, I,S , ,860 Inspection Filing Fee-ICP 500 soo.oo Plan Review 178, ,88S.OO 189, ,079 Project Filing Fee-TDLR 3,341, ,341, ,191, ,191, Variance 82,425 82,42S.OO 93,375 93,375 Penalty 282, , , ,322.SO Variance Appeal 9,200 9,200 12,000 12,000 Contract Provider Project RAS Registration 122, , , ,400 RAS CE Provider Fees 3,150 3,1SO.OO 3,57S.OO 3,57S.OO Special Clearance 65, S, ,315 16,3IS.OO Convenience Fee~ AB 79, , , ,ll4.09 Sale of Publications 4,927.SO 4, ,496 1,496 Third Party Reimbursement Third Party Reimbursement-TAA Tuition 33, IS IS Total, Architectural Barriers ,367, ,485, ~ Auctioneers Auctioneer Exam Fee (50) so.oo Auctioneer License Fee 113, , , ,827 Associate Auctioneer License Fee 4,268 4,268 3,883 3,883 Auctioneer Late Fee Auctioneer Penalty 15, IS, , ,282.9S Auctioneer CE Provider Fee 6,47S.OO 6,475 10,6SO.OO 10,650 Auctioneer Convenience Fee Auctioneer Education and Recovery Fund (AERF) 12, ,975 12,4SO.OO 12,4SO.OO Auctioneer Education and Recovery Fund Interest 2, , , , TexasOnline Subscription Fee 4,652 4,6S2 4,519 4,519 Third Party Reimbursement-AERF Total, Auctioneers S Auto Parts Recyctel's Auto Parts Recycler Fee 193, , , ,234 Auto Parts Convenience Fee Auto Parts Recycler Penalty 40, , TexasOnline Subscription Fee.1J.Q~Q s Total, Auto Parts Recyclers S, , S.OO 2, S4,600 Bar bering Barber License Fees 1,086,829.SO 1,086,829.SO 1,025, ,02S, Conveience Fee 1, , Fines & Penalties 193,S , , S, Barber Publication 70, , , , Third Party Reimbursement-Barber Tutition Acct Fee Total, Barbering 72, I ,3S2, S, s 1, ,337,S23.74 so

58 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Schedule 7 w Detail Statement of Revenue Generated by Agency Program or Aclivity Monlh Ended August31, 2012 with Com)>nrntive Totals for August 31, 2011 FY 2012 at August 31,2012 (12 Months) FY 2011 ataugust31, 201 l (12 Months) Reappropriated Unappropriated Reappropriated Unappropriated Revenue Revenue Total Revenue Revenue Total Boiler JnsJlections Boiler Clearance 101, , Boiler Inspection Fees 2,346, ,346, ,483, ,483, Penalty 29,260 29,260 6,820 6,820 Special Inspection Fees 142, , , , , ,250 Commission Exam Fee Commission Fee 3,605 3,605 3,540 3,540 Third Party Reimbursement Total, Boiler Inspections ,562, , ,675, Combative S1wrts Boxing Gross Receipts Tax 30, , , , , Combative Sports Per Event Fee 16, , I2,740 12,740 Bmcing Promoters License 56,301 56,301 39,370 39,370 Boxing License Fee 24,575 24,575 9,395 9,395 Manager License Fee 4,880 4,880 5,300 5,300 Matchmaker License Fee 2,550 2,550 1,950 1,950 Combative Sports Federal!D Card 19,775 19,775 15,4IO.OO 15,410 Judge and Referee License Fee 13,005 I3,005 13,375 13,375 Seconds License Fee 42,860 42,860 40,045 40,045 Timekeeper License Fee I,510 I,510 1,370 1,370 Ringside Physician Registration Fee 2,425 2,425 2,IOO.OO 2,100 Combative Sports Event Coordinator 2,000 2, Boxing Penalty 18, ,I , , Third Party Reimbursement Total, Combative Sports 30,010 l,ooi ,031, I Cosmetology Cosmetology License Fees 10,073, ,073, ,098, ,098, Cosmetology School Inspection 1,400 1,400 2,600 2,600 Cosmetology CE Provider Fee 328, , , ,755 CosmetologyTratlscrpits 40,995 40,995 38, , Cosmetology Publication 712, I2, , , Cosmetology Fine & Penalties 1,308, ,308, ,950, IOI.42 1,950, Convenience Fee I5, , , , Third Party Reimbursement Third Party Reimbursement-Cosmetology Tutiton Acct ,730 Total, Cosmetology 768, II, ,480, , II 586, Electricians Electrician License Fees 4,631,518 4,63I,5I8 4,471, ,471, Electrician CE Fee 46,950 46,950 47,550 47,550 Electrician Convenience Fees 1, I, Electrician Penalty Fees 173, I73, , ,0Il.55 TexasOnline Subscription Fee , Total, Electricians 225, ,85I, , ,974, Elevator/Escalator Safety Elevator Inspector Registration Elevator Contractor Registration 2,415 2,415 2,415 2,4I5 lllevator Duplicate Fee ,500 1,500 Elevator Filing Fee 840, , , , Elevator Penalty 47,840 47,840 40,475 40,475 Elevator License and Renewal 24, , , , Elevator New Technoloby Variance Technology 7,500 7,500 2,500 2,500 Elevator Responsible Party CE Provider Fee Elevator Waiver/Delay 17,380 17,380 20,170 20,170 Late Fee 369, , , , Third Party Reimbursement Third Party Reimbursement-Elevator Kit 18, ,000 Total, Elevator/ Escalator Safety 18,620 1,3I2, ,330, I ,

59 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Schedule 7 ~ Detail Statement of Revenue Generated by Agency Program or Activity Month Ended August 31,2012 with Comparative Totals for August 31,2011 FY 2012 at August 31, 2012 (12 Months) FY2011 ataugust31, 2011 (12Months) Reappropriated Unappropriated Reappropriated Unappropriated Revenue Revenue Total Revenue Revenue Total For Profit Legal Set vices LSC License and Renewal s 243, , , ,679 LSC Differential 311, , , , LSC Penalty 1,250 1,250 LSC Trust Deposit 50,000 50,000 TexasOntine Subscription Fee , Total, For Profit Legal Services 18, , , , ldentiry Recovery Services!DR SCP Application & Renewal Fee 2,000 2,000 1,000 1,000!DR Quarterly Contract Fee , Total, lndentify Recovery Services , ,714 Industrialized llousing and Buildings Manufacturer's Registration Fee 98,975 98,975 88, , Third Party Inspection Agy 1,050 1,050 1,500 1,500 Builder Registration Fee 110, , , , Design Review Agencis Registration Fee 2,400 2,400 2, , Third Party Inspector 4,600 4,600 5,100 5,100 Special Inspection 1,100 1, Third Party rnspector Monitor 1,080 1,080 Decals/Insignia 186, , , , Certification Inspection 31, , , , Penalty 4,400 4,400 16,150 16,150 Inslallation Pennits 4,725 4,725 2, , Third Party Reimbursement Total, Industrialized Housing and Buildings 445, , , Licensed Breeder Licensed Breeder Licence Fee 24,200 24,200 Total, License Breeder ,200 Licensed Court Interpreters Application 43,939 43,939 42,660 42,660 Examination (300) (300) (900) (900) LCI CE Provider Fee 6,075 6,075 5,650 5,650 Penalty 1,750 1,750 TexasOnline Subscription Fee I 758 I 758 I 726 1,726 Total, Licensed Court Interpreters I , ,886 Loss Damage Waivers Loss Damage Waiver Review , Total, Loss Damage Waivers 18, ,600 Personnel Employment Services Employment Agency License ,025 5, Total, Personnel Employment Setviccs , , Polygraph Examiners Polygraph Exam Ill I Total~ Polygraph Examiners 111,275 Ill , ,650 Property Tax Consultants Private CE Provider Fee 4,975 4,975 6,250 6,250 License 124, , , ,512 Professional Fee 304, , , ,998 Penalty 100, , , ,250 TexasOnline Subscription Fee 1,350 1,350 2, , Third Party Reimbursement Total, Property Tax Consultants , ,

60 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Schedule 7 w Detail Statement of Revenue Generated by Agency Progr~m or AcHvity Month Ended August 31,2012 with Compnrative Totals for August 31,2011 FY 2012 at August 31, 2012 (12 Months) FY 2011 at August 31,2011 (12 Months) Reappropriated Unappropriated Reappropriated Unappropriated Revenue Revenue Total Revenue Revenue Total Property Tax Professionals Property Tax Professional License Fee 210, , , , Penalty 3,250 3,250 TexasOnline Subscription Fee 5, Total, Property Tax Professionals , , Service Contract Pt oviders Registration 177, , , ,925 Penalty 64, , ,750 7,750 SCP Convenience Fee SCP Trust Account (85,728) (85,728) 162, ,090 Third Party Reimbursement Total, Service Contract Providers Staff Leasing Services Application Fee 209, ,775 License Fee 220, ,500 5,250 5,250 Penalty 2,000 2,000 Third Party Reimbursement Total, Staff Leasing Services , , Talent Agencies Talent Agents License Fee 6, , , , Penalty Total, Talent Agencies , , Temporary Common Worker Providers License Fee 19,725 19,725 14,575 14,575 Third Party Reimbursement Penalty Total, Temporary Common Worker Providers 19,725 19, Tow Trucks/Ot erators Tow Trucks/Operators Fees 3,760, ,760, ,777, ,777, Tow Trucks/Operators Penalty 402, , , , TexasOnline Subscription Fee 87,315 87,315 89,823 (11) 89,812 Tow Truck Credit Card Convenience Fee 25, , , , Tow Truck CE Provider Fee 38,280 38,280 43,065 43,065 Tow-VSF Dual Employee Fees 230, ,001 Tow-VSF Dual Employee Fee Subscription Fee 6,424 6,424 3, , ,000 Tow-VSF Dual Employee Penalty 2, , Tow -VSF Dual Employee Credit Card Convenience Fee Total, Tow Truck Operators , , , ,559, ,676, Vehicle Booting Vehicle Booting Fees 5,102 5,102 7, , Vehiche Booting Penalty 3, , Vchiche Booting Credit Card Convenience Fee Vehicle Booting CE Provider Fees TexasOntine Subscription Fee Total, Vehicle Booting 123 5,452 5, II Vehicle Protection Product Wanantors Registration Fee 34,900 34,900 29,550 29,550 Fines & Penalties 3, , Total, Vehicle Protection Product Warrantors 38, ,550 32,550 53

61 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) Schedule 7 ~ Detail Statement of Revenue Generated by Agency P1 ogrrtn OJ' Activity Month Ended August 31,2012 with Comparative Totals for August 31, 2011 FY 2012_at August 31,2012 (12 Months) FY 2011at August31, 2011 (12 Months) Reappropriated Unappropriated Reappropriated Unappropriated Revenue Revenue Total Revenue Revenue Total Vehicle Storage Facilities Registration Fee 832,292 s 832,292 s 857, ,331 Convenience Fee 2, , Penalty 285, , , , TexasOnline Subscription Fee ,459 Total, Vehicle Storage Facilities 21, ,117, ,138, , I , Water Well Drillers and Pum11 Installel's Application/Ex.am Fee 24,820 24,820 15,355 15,355 License Fee 27,820 27,820 30,490 30,490 WWE CE Provider Fees 8,175 8,175 7,300 7,300 Renewal Fee 485, , , ,501 Late Fee Penalty 37, , , , Variance 14,300 14,300 6,900 6,900 TexasOnline Subscription Fee 13,214 13,214 11,950 11,950 Third Party Reimbursement Total, Water Well Drillers and Pump Installers 13, , , , Weather Modification Weather Modification License s 6,500 6,500 5,850 s 5,850 Weather Modification Permit Weather Modification Interagency Agreement Weather Modification Penalty Total, Weather Modification General Counsel Combative Sports Warranty Receipts II , Totals, General Counsel II II Information Services Division Interagency Services 10,882 s 10, Totals, Information Services Division s 10,882 10,882 10, Copies 112, , , , Return Checks 6,358 s 6,358 5,030 5,030 Other Miscelhmeous Govenmtental Revenue 54, , , , State Sales Tax 48, , , , City Tax 7, , , , MTATax 7, , , , Distribution of Revenues Generated: Deposited into General Revenue Fund (Fund 000 I) 1,772, ,197, ,969, ,506, ,027, ,534, Deposited into GR Dedicated Account (0108) 12,730 12,730 Deposited into GR Dedicated Account (5081) Deposited into AERF (Fund 0898) 18, , , , Deposited into Trust Fund (0846) LSC & SCP (35,728) (35,728) Total Revenue Generated , , ,537, ,027, s ,

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63 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) ADDENDUM I ORGANIZATIONAL AND GENERAL COMMENTS The Texas Department of Licensing and Regulation (TDLR) serves as the primary state agency responsible for the oversight of businesses, industries, general trades, and occupations In Fiscal Year 2012 these regulatory areas included: Air Conditioning and Refrigeration Architectural Barriers Auctioneers Barbers Boilers Combative Sports Cosmetologists Electricians Elevators, Escalators, and Related Equipment Employers of Temporary Common Workers For-profit Legal Service Contracts Identity Recovery Service Contract Providers Industrialized Housing and Buildings Licensed Breeders Licensed Court Interpreters Loss Damage Waivers Polygraph Examiners Property Tax Consultants Property Tax Professionals Service Contract Providers Staff Leasing Services Used Automotive Parts Recyclers Vehicle Protection Products Vehicle Storage Facilities Vehicle Towing and Booting Water Well Drillers Water Well Pump Installers Weather Modification Texas Commission of Licensing and Regulation TDLR's goveming body, the Texas Commission of Licensing and Regulation,has seven public members appointed by the Governor with the advice and consent of the Senate. Commissiorers serve six-year terms and meet at least qumterly each year. The Commission's primary duties include: guiding the development of the agency's strategic plan and approving the agency's budget repmts and request for funding; providing policy direction for agency operations; reviewing existing rules and adopting new rules as needed; issuing final orders in contested cases; and hiring, supervising, evaluating and setting the salary for the executive director. Commission members serving as of August 31,2012 Name Home Town FrankS. Denton (Chairman) Conroe Deborah Yurco Austin Mike Arismendez (Vice Chairman) Littlefield LuAnn Morgan Midland Fred N. Moses Plano Lilian Norman-Keeney Taylor Lake Village Ravi Shah Carrollton Term Expires February 1,

64 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) ADDENDUM I ORGANIZATIONAL AND GENERAL COMMENTS Because commissioners are prohibited by law from having a financial interest in any oftdlr's regulated professions, they rely on the knowledge and experience of Advisory Board members from the industries we regulate. Members of the following Advismy Boards s are appointed by the Chairman with the approval of the Commission: Advisory Board on Bat bering Advisory Board on Cosmetology Air Conditioning and Refrigeration Contractors Advisory Board Architectural Barriers Advisory Committee Auctioneer Education Advisory Board Board of Boiler Rules Electrical Safety and Licensing Advisory Boan:l Elevator Advisory Board Licensed Breeder Advisory Committee Licensed Coutt Interpreter Advisory Board Medical Advisory Committee Polygraph Examiners Advisory Committee Property Tax Consultants Advisory Council Property Tax Professional Advismy Committee Texas Industrialized Building Code Council- (Members of this board are appointed by the Governor) Towing, Storage and Booting Advisory Board Used Automotive Patts Recyclers Advisory Board Water Well Drillers Advismy Council Weather Modification Advisory Committee Agency Organization in Fiscal Year 2012 TDLR focuses on perfecting its functionally aligned organizational structure while pursuing its vision to be the leader in public service, customer satisfaction, and innovation. TDLR honors the trust of all Texans by ensuring public safety and consumer protection, and providing a fair and efficient regulatory environment In FY 2012, the agency was responsible for 28 programs and 153 different license types with more than 660,000 licensees. TDLR has eleven divisions organized along functional lines: Compliance, Customer Service, Education and Examination, Enforcement, Executive, FinancialServices, General Counsel's Office, Human Resources, Information Systems Development, Licensing, and Network Services. To address the increase in responsibilities and the ongoing need for resources, the functional areas within the agency are organized into two areas of responsibility. "Resource Management" includes the FinanciaJServices, Human Resources, Infotmation Systems Development and Network Services and Maintenance functions. "Regulatory Affairs" encompasses the functions of Customer Service, Compliance, Education and Examination, Enforcement and Licensing. This structure allows the agency toeffectively administer and swiftly consolidate new responsibilities and the functions of any transferred programs into TDLR's infrastructure. The Agency is made up of the following functiomtf areas: Compliance- The Compliance division provides technical oversight, expertise and training across each of TDLR's programs, serving as the point of contact for technical questions and concerns regarding compliance with regulations. Staff inspectors conduct inspections of businesses to ensure public safety and consumer protectioij and provide education and hands-on assistance to licensees. The work of the Compliance division helps improve the quality and operations of businesses, industries and occupations throughout Texas. Customer Service- The Customer Service division provides excellent customer service evety business day, ensuring the right information gets to the right people at the right time. The Customer Service section provides information to customers by telephone, , Facebook, Twitter and in person from 8:00am to 6:00pm Monday through Friday. 56

65 UNAUDITED TEXAS DEPARTMENT OF LICENSING AND REGULATION (452) ADDENDUM I ORGANIZATIONAL AND GENERAL COMMENTS Education and Examination- The Education and Examination division ensures that candidates for licensure satisfy pre-licensure education and examination requirements andthat renewing licensees complete required continuing education courses. The division evaluates and approves schools and other pre-licensure education providers and courses and evaluates and approves continuing education providers, courses and their materials Enforcement- The Enforcement division is responsible for investigating and resolving complaints in all28 statutes regulated by TDLR. Complaints are received from a variety of sources- consumers, industry representatives and other divisions within the agency. Complaints are also generated directly by Enforcement personnel, tlrough stings and other proactive field operations designed to uncover evidence of unlicensed activity and otler violations. Executive Director's Office- The Office of the Executive Director provides the leadership and motivation for achieving the agency's strategic vision, manages the day-to-day operation ofthe agency, implements Commission objectives, interacts with state and legislative leadership, communicates with the public through press releases and social media tools and ensures agency compliance with statewide goals. The Executive Offices' success is guided by a respect-based management philosophy and a commitment to open communication with our employees and the customers we serve. Financial Services- The Financial Services division manages the agency's fiscal resources in compliance with state and federal laws. The division develops the legislative appropriation; request, monitors TDLR's annual budge~ processes the agency's payroll, and prepares all fiscal reports for the agency. The division ensures compliance with various spending limits, such as the ouf.of-state travel expenditure cap, and directs purchasing and capital asset capabilities. General Counsel -The Office of the General Counsel oversees all legal aspects of agency operations. It employs a common sense approach by ensuring that agency rules, contracts and other regulatory activities are fair and consistent. This approach effectively protects the people of Texas, fosters an efficient regulatory environment and minimizes the risk of litigation against the state and the agency. Specifically, the General Counsel's office is responsible for rule review and rulemaking, responding to Open Records requests, suppmting advisory boards and the Commission, and drafting contracts and legal opinions forthe agency and the 28 statutes it administers. Human Resources - The Human Resources division supports TDLR's healthy, positive and equitable work environment and is instrumental in attracting, developing and retaining qualified and dedicated employees. Focusing on quality service to employees, the office provides supp01t in recruitment and hiring; training and career development; employee benefits; developing and maintaining personnel policies and procedures to ensure compliance with state and federal law; employee relations; perfonnance management; workforce planning;and representation on personnel matters. Network Services- The Network Services division supports the agency's vision by planning for growth, installing systems, and supporting and maintaining all information technology items, including our phone systems and mobile devices. The division also manages the network infrastructure, providing troubleshooting, maintenance, and upgrades as needed for TDLR's locations across the state. TDLR is also a participant in the mandated Data Center Services consolidation project through the Department of Infcrmation Resources. Information Systems Development- The Information Systems Development division creates and maintains custom licensing, permitting and internet software that provides a common platform tailored to the precise needs of each agency program. Licensing - The Licensing division issues licenses, registrations, permits and certifications to qualified applicants. The division's application evaluation process includes criminal background checks, education and credential verification, financial security and on-the-job experience. 57