Investments of cash funds in excess of daily operating requirements, which totaled $364,581,429. at
June 30, 1972, are set forth in detail in Statement A—3. An analysis of these investments by fund is
as follows:

General Fund.................................................................................................... $ 67,106,000.

Special Funds.................................................................................................... 56,824,145.

Loan Funds........................................................................................................ 79,953,850.

Annuity Bond (Sinking) Fund............................................................... 33,623,816.

Other Funds...................................................................................................... 127,073,618.

$364,581.429.

$18,209,595. of the above is held by the Trust Department of the Equitable Trust Company, for
account of the State Accident Fund, under an agreement dated January 2, 1964, between that Agency
and the bank. The remainder of the investments are held in the custody of the State Treasurer in safe
deposit boxes maintained at the Maryland National Bank, Baltimore, Maryland.

Under the provisions of Section 197 of Article 41 of the Annotated Code of Maryland, on the war-
rant of the Comptroller, the Treasurer is authorized to advance to the State departments, agencies, etc.,
cash working funds to enable them to make prompt payment for certain expenses exempted from general
regulatory control. Such advances, totaling $3,857,384. at June 30, 1972, are presented in detail in
Statement A—2 and consist of the following funds:

General Fund.................................................................................................... $1,654,971.

Special Funds.................................................................................................... 1,387,640.

Non-Budgeted Funds...................................................................................... 814,773.

$3,857,384.

The amount of $1,654,971. which represents advances from the General Fund is an unappropriated
portion of the General Fund Surplus Account. Although it is not in the State Treasury, it is considered
as cash receivable and due from the various State departments, agencies, etc.

Financial statements contained in this report are presented generally in accordance with standards
of financial reporting promulgated by the National Committee of Governmental Accounting through
the Municipal Finance Officers Association of the United States and Canada. The accounting system
and records of this office are in conformance with generally accepted accounting principles applicable to
government fiscal operations, and have been set up to achieve both current and effective management
reporting. To accomplish this, every effort has been made to utilize the most current and advanced
technology and equipment to maintain our accounting controls and procedures.

It is my opinion that the exhibits, supporting statements and schedules presented herein cover all
areas of fiscal operations of our State Government which by Constitutional and Legislative mandate
have been entrusted to the office of the Comptroller of the State of Maryland. However, if any addi-
tional 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