(a) Market value approximates cost.

(b) The Department of Transportation, (Department) on behalf of the Consolidated Transportation Re-
funding Bond Sinking Fund and the County Transportation Refunding Bond Sinking Fund, has entered into
federal securities purchase agreements with banks thereby reducing the market risk to the Department. Un-
der these agreements the Department is required to invest a total of $246,000,000 of Sinking Fund deposits
over the first five and one-half years of the Bond issues. The invested funds are used to purchase federal se-
curities from the banks at predetermined yields and ranges of maturities. Investment maturities are sched-
uled in accordance with bond redemption provisions and the Department anticipates that all investments
will be held until maturity. As of June 30, 1981, investment cost exceeded market value by approximately
$66,000,000; however, no decline in investment market value has been recognized in the financial state-
ments since the Department intends to hold the investments until maturity.

(c) Principally all assets of the higher education endowment and similar funds are pooled on a market
value basis. Each fund subscribes to or disposes of units on the basis of the per-unit market value at the be-
ginning of the calendar quarter within which the transaction takes place. At June 30, 1981, the fund con-
sisted of 175,995 units, each unit having a market value of $113.93.

The following tabulation summarizes changes in the relationship between cost and market of the pooled
net assets (amounts expressed in thousands) and the change in market value per unit for the year ended
June 30, 1981:

	Pooled Net	: Assets	Excess of	Market
			Market	Value
	Market	Cost	over Cost	Per Unit
End of year .............................................	....... $20,050	$18,239	$1,811	$113.93
Beginning of year ........................................	....... 16,694	15,587	1,107	101.17
Unrealized net market depreciation for year .................			704
Realized net gains for year ................................			1,561
Total change in excess of market over cost for year ............			$2,265	$ 12.76

(d) Market value approximates $2,961,800,000.

5. Taxes Receivable:

Taxes receivable (amounts expressed in thousands), as of June 30, 1981 consisted of the following:

		Funds
		Special	Debt	Trust and
	General	Revenue	Service	Agency
Income taxes, current employee withholdings held by employers .....	$134,181
Retail sales and use taxes, current taxes held by collectors ..........	70,156
Transportation taxes, principally motor vehicle fuel and excise .......		$21,551
Unemployment compensation taxes ..............................				$67,837
Other taxes, principally property ..............................	2,849		$4,295
Total ................................................	$207,186	$21,551	$4,295	$67,837

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