SUMMARY

We provided an unqualified opinion on the Fund’s financial statements for FY 2009-10 and FY 2008-09. As its reserves were depleted, the Fund borrowed from the federal government to pay unemployment benefits to eligible individuals. The balance owed to the federal government as of May 31, 2011, was $1.3 billion plus an additional $25.4 million in interest accrued on the loan as of that date. Federal borrowing was to be repaid, with interest, beginning in 2011.