COMPTROLLER OF MARYLAND

Serving the People

William Donald Schaefer

Comptroller

John D. Kenney

Director
General Accounting Division

Honorable Members of the General

Assembly and the Governor,
State of Maryland:

November 27, 2000

INTRODUCTION

The Comprehensive Annual Financial Report of the State of Maryland, for the fiscal year ended June 30,
2000, submitted herewith, includes financial statements of the State of Maryland as well as information required
by Title 2, Section 102 of the State Finance and Procurement Article of the Annotated Code of Maryland.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the Office of the Comptroller. I believe that the data, as presented, are
accurate in all material respects; that they are presented in a manner designed to fairly set forth the financial
position and results of operations of the State as measured by the financial activity of its various funds; and that
all disclosures necessary to enable the reader to gain the maximum understanding of the State's financial affairs
have been included.

This Report is presented in three sections; introductory, financial, and statistical. The introductory section
includes this transmittal letter, the State's organizational chart, and a list of principal officials. The financial
section includes the general purpose financial statements and the combining and individual fund and account
group financial statements and schedules, as well as the report of independent public accountants on the financial
statements and schedules. The statistical section includes selected financial and demographic information,
generally presented on a multiyear basis.

The accompanying financial statements include all funds and account groups of the State of Maryland
(primary government), as well as all of its component units. Component units are legally separate entities for
which the primary government is financially accountable.

Discretely presented component units are reported in a separate column in the combined financial statements
to emphasize that they are legally separate from the primary government and to differentiate their financial
position, results of operations and cash flows from those of the primary government. Accordingly, the various
colleges and universities, the Maryland Industrial Development Financing Authority, the Maryland Stadium
Authority, the Maryland Food Center Authority, Maryland Environmental Service and Maryland Prepaid
College Trust are reported as discretely presented component units.

Introductory Section

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