However, after application of in-transit receipts and disbursements at the close of the fiscal year
by this office, the balance amounted to $21,283,304, and as indicated in Statement A—1 of this report
consisted of the following:

General Fund........................................... $ 438,061

Special Funds...................................... 658,313

Special Fund—Baltimore City Tax

Collector................................................... 2,610

Federal Funds.................................................. 4,267,852

Annuity Bond (Sinking) Funds.............. 8,718,346

Loan Funds...................................................... 3,974,462

Other Funds...................................................... 3,223,660

$21,283,304

Investments of cash funds in excess of daily operating requirements totaled $179,196,675 at June 30,
1968, and are set forth in detail in Statement A—3. An Analysis of these investments by funds is as
follows:

General Fund.................................................... $20,150,000

Special Funds.................................... 37,725,822

Annuity Bond (Sinking) Funds...................... 7,865,874

Loan Funds...................................................... 30,598,720

Miscellaneous and Non-Budgeted Funds.... 82,856,259

$179,196,675

Included in these investments are $11,829,882 held by the Trust Department of The Equitable Trust
Company under an agreement between the State Accident Fund, et al., and the Bank, dated January 2,
1964. All other investments are in the custody of the State Treasurer and held by him in safe deposit
boxes at the Maryland National Bank.

Under the provisions of Section 197, of Article 41 of the Annotated Code of Maryland, the Treasurer
is authorized to advance, on the warrant of the Comptroller, to the State departments, agencies, etc.
working fund cash balances to enable them to make prompt payment for certain expenses as may occur
from time to time and which are exempt from general regulatory control. Such advances, totaling
$2,852,840 at June 30, 1968, are presented in detail in Statement A—2, and consisted of the following
funds:

General Fund.......................................... $1,579,740

Special Funds............................ 800,000

Non-budgeted Funds.................................... 473,100

$2,852,840

The amount of $1,579,740, representing advances from the General Fund, is a portion of the Gen-
eral Fund Surplus Account, and although not in the State Treasury, is shown as cash receivable and
due from the various State departments, agencies, etc. as unappropriated General Fund Surplus.

The financial statements in this report are presented in accordance with the balanced-fund principle
of accounting, which as reflected in Exhibit A presents each major Fund as a separate entity. Our ac-
counting records are maintained in accordance with the most current concept of governmental fiscal
operations, and to achieve both current and effective management reporting every effort is made to
adapt the most modern and advanced technology and equipment to our procedures.

It is my opinion that the exhibits, and supporting statements and schedules, presented in this re-
port cover every area of fiscal operations of our State Government which by Constitutional and Legisla-
tive mandate have been entrusted to the office of the Comptroller of the State of Maryland. However,
if any additional information relative to the contents of this report is desired, my co-workers and I will
be most pleased to furnish it to you.

LOUIS L. GOLDSTEIN,

Comptroller.