Cash Management

During the year, temporary surpluses of cash in general governmental funds were invested in repurchase
agreements and U.S. Treasury and Agency obligations with maturities ranging from one to 181 days and in
time deposits ranging from 180 to 365 days. For the fiscal year ended June 30, 1983 the State's cash
resources for general governmental funds were invested as follows: in repurchase agreements, 50.8 percent;
in United States Treasury and Agency obligations, 46.4 percent; and in Certificates of Deposits, 2.8 percent
The average yield on maturing investments during the year was 9.1 percent, as compared to 14.5 percent in
the prior year, and the amount of interest received was $96,621,000, which was $28,378,000 less than the
previous year.

Capital Projects Fund

Proceeds of general obligation bond issues are accounted for in the capital projects fund. Completed
projects and uncompleted construction in progress at year end which are assets of the State are capitalized in
the general fixed assets account group, the appropriate enterprise fund for self-supporting projects or the
higher education and university hospital fund. During fiscal year 1983, state projects costing $84,897,000
were completed. State grants for capital projects of local governments and other public organizations
amounted to $99,762,000 in the fiscal year, a decrease of $10,116,000 from 1982 which is primarily
attributable to a decline in school construction.

Authorized but unissued general obligation bonds at June 30, 1983, totaled $588,301,000.

Enterprise, Fiduciary, and Higher Education
and University Hospital Funds

All enterprise funds reported retained earnings for the year ending June 30, 1983. Only the State Use
Industries reported a decline in retained earnings during the year. Overall the increase in retained earnings for
enterprise funds during 1983 was $56,156,000 as compared to an increase of $55,694,000 in 1982.

Fiduciary fund types include expendable and nonexpendable trust funds, pension trust fund and agency
funds. Agency funds are custodial in nature and do not report fund balances. All other fiduciary fund types
reported fund balances of $4,003,318,000 at June 30, 1983, as compared to $3,798,564,000 at June 30,
1982.

The total fund balance for the higher education and university hospital fund was $ 1,078,998,000 at
June 30, 1983, as compared to $1,043,515,000 at June 30, 1982.

General Fixed Assets

The general fixed assets of the State are those used in the performance of general governmental
functions and exclude the fixed assets of the proprietary fund type, fiduciary fund types and the higher
education and university hospital fund. As of June 30, 1983, the general fixed assets of the State amounted
to $2,484,597,000. This amount represents the actual or estimated cost of the assets. Depreciation of general
fixed assets is not recognized in the State's accounting system. Infrastructure assets, consisting principally of
highways, roads and bridges are not recorded in the general fixed assets.

Audits

The statutes of the State require an audit of every unit of the Executive and Judicial branches of
government, including the Comptroller of the Treasury's records, by the Legislative Auditor at least every two
years. The Legislative Auditor is required to be and is a certified public accountant. The Legislative Auditor
makes fiscal, compliance and performance audits of the various agencies and departments of the State and
issues a separate report covering each of those audits. Although certain of those reports include
presentations of detailed financial data and contain expressions of opinion thereon, the audits are usually not
made for that purpose. The primary purpose of the reports is to present the Legislative Auditors findings
relative to the fiscal management of those agencies and departments.

Additionally, my office requires an examination of the State's combined financial statements by a firm of
independent certified public accountants selected by an audit committee composed of members from the

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