PROPRIETARY FUND TYPE

Enterprise Funds:

The enterprise funds include:

1. Economic Development:

Direct loan and loan insurance programs of the Maryland Department of Economic and Community
Development.

2. Maryland Food Center Authority which owns and operates warehouse facilities for use by wholesale
food distributors.

3. Maryland Transportation Authority which constructs, maintains and operates transportation toll
facilities.

4. Maryland State Lottery which operates the State Lottery.

5. Maryland Environmental Service which constructs, maintains and operates water supply and liquid
and solid waste disposal facilities.

6. State Use Industries which utilizes inmate labor from State correctional institutions to manufacture
goods, wares and merchandise to be sold to State Agencies, political subdivisions and charitable, civic,
educational, fraternal or religious associations or institutions.

7. Maryland Higher Education Loan Corporation which assists resident students in meeting costs of
attending approved institutions by guaranteeing loans made by commercial lenders.

FIDUCIARY FUND TYPES

Transactions related to assets held by the State in a trustee or agency capacity are accounted for in
fiduciary fund types. Fiduciary fund types are comprised of:

1. Expendable Trust Funds:

a. Deferred Compensation Plan:

This fund accounts for the amounts withheld from employees and invested in the plan as the
employee has directed. Assets of this fund aggregating $141,892,000 are available to the general
creditors of the State.

b. Refunded Transportation Debt:

This fund accounts for the investment income and refunded bond debt service expenditures
pertaining to Consolidated Transportation Bonds and County Transportation Bonds which were
refunded in 1978.

c. Employment Security Administration:

This fund accounts for the unemployment taxes collected from employers and federal revenue
received and remittence of benefits to the unemployed.

d. Federal Payroll Taxes:

This fund accounts for the federal payroll taxes withheld from state and its political subdivision
employees and remitted to the federal government.

2. The nonexpendable trust fund reflects the transactions, assets, liabilities and fund equity of the State
Accident Fund. The fund was established to provide workers' compensation insurance for participating
employers in the State, including the State of Maryland.

3. The pension trust fund reflects the transactions, assets, liabilities and fund equities of the State
administered retirement and pension systems.

4. Agency funds account for the receipt and expenditure of various taxes and federal grant proceeds
collected by the State for distribution to its political subdivisions and patient and prisoner accounts.

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