All State budgetary expenditures for the general, special and federal funds are made pursuant to the
appropriations in the annual budget, as amended from time to time by budget amendments. State
governmental units may, with the Governor's approval, amend the appropriations by major function within the
general fund, provided they do not exceed their total general fund appropriations as contained in the annual
budget. Increases in general fund appropriations must be approved by the General Assembly. For the fiscal
year ended June 30, 1982 the General Assembly approved increases in General Fund appropriations
aggregating $23,878,000. Appropriations for programs funded in whole or in part from the special or federal
funds may permit expenditures in excess of original special or federal fund appropriations to the extent that
revenues from the particular special or federal fund sources exceed original budget estimates and such
additional expenditures are approved by the Governor or, in the case of the University of Maryland, the Board
of Public Works. Unexpended appropriations from the general fund may be carried over to succeeding years to
the extent encumbrances are approved by the Department of Budget and Fiscal Planning. Unexpended
appropriations from special and federal funds may be carried over to the extent of (a) available resources, and
(b) encumbrances are approved by the Department of Budget and Fiscal Planning.

The amended annual budget adopted by the General Assembly for the general, special and federal funds is
presented in the Combined Statement of Revenues, Expenditures and Encumbrances, Other Sources and Uses
of Financial Resources and Changes in Fund Balances—Budget and Actual—Budgetary General, Special and
Federal Funds. The State's budgetary fund structure and the basis of accounting used for budgetary purposes,
which is the modified accrual basis with certain exceptions, differs from that utilized to present financial
statements in conformity with generally accepted accounting principles. A summarization of the effect of the
fund structure differences and exceptions to the modified accrual basis of accounting (amounts expressed in
thousands) with respect to governmental fund types as of June 30, 1982 follows:

				Capital
Budgetary Funds	General	Special		Projects	Other
		Special	Debt	Capital
Financial Statement Funds	General	Revenue	Service	Projects
Budgetary fund equities, June 30, 1982 ..............................	$175,235	$345,045		$ 56,697	$777,063
Reclassification of budgetary fund equities into GAAP financial statement
fund structure ....................................................	61,976	(167,821)	$442,677	(43,101)	(777,063)
Budgetary fund equities reclassed into GAAP financial statement funds	237,211	177,224	442,677	13,596
Other accounting principle differences:
Assets recognized in the GAAP financial statements not recognized for
budgetary purposes (net of applicable deferred revenues):
Intergovernmental receivables ...................................	6,340	(12,745)
Other accounts receivable .......................................	15,623	2,380	77	106
Loans and notes receivable ......................................			(4,440)	7,239
Liabilities recognized in GAAP financial statements not recognized for
budgetary purposes:
Accounts payable and accrued liabilities ..........................	(1,626)	(30,205)		(22,062)
Local income taxes payable to local income tax agency fund ........	(113,740)
Accounts payable to political subdivisions ........................	(487)
GAAP financial statement fund equities, June 30, 1982 ...............	$143,321	$136,654	$438,314	$ (1,1211	$ -0-

The State's accounting system is maintained by the Comptroller in compliance with State Law and in
accordance with the State's Budgetary Funds. In addition to the accounting systems maintained by the
Comptroller, certain individual agencies which are not subject to the State budget maintain accounting
systems which permit financial reporting on the basis of generally accepted accounting principles. The most
significant of these agencies are: ecomonic development loan and insurance activities, Maryland Food Center
Authority, Maryland State Lottery, Maryland Environmental Service, State Use Industries, Maryland Higher
Education Loan Corporation, Fiduciary Funds and the higher education and university hospital fund. In
certain instances these agencies deposit funds with the State Treasurer and in such instances accountability
for such funds is maintained in the budgetary other fund.

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