louche Pass & Co.

The Honorable Louis L. Goldstein

Comptroller of the Treasury of Maryland

We have examined the combined financial statements of the State of Maryland as of and for the year ended
June 30, 1984, as listed in the Table of Contents. Our examination was made in accordance with generally
accepted auditing standards and, accordingly, included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances. We did not examine the financial
statements of the loan insurance programs and two loan programs of the Maryland Department of Economic
and Community Development, Maryland Food Center Authority, Maryland Transportation Authority,
Maryland State Lottery, Maryland Environmental Service, and Maryland Higher Education Loan
Corporation, which statements reflect total assets, revenues and expenses constituting 93 percent, 98 percent
and 95 percent, respectively, of the related combined totals for Enterprise Funds. We also did not examine the
financial statements of University Hospital, which statements reflect total assets, revenues, and expenses
constituting 8 percent, 26 percent and 17 percent, respectively, of the related combined totals for the Higher
Education and University Hospital Fund. These statements were examined by other auditors whose reports
thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts
included for the above mentioned units, is based only upon the reports of other auditors.

In our opinion, based upon our examination and the reports of other auditors, the combined financial
statements referred to above present fairly the financial position of the State of Maryland as of June 30, 1984,
and the results of its operations and the changes in financial position of its Enterprise Funds, Nonexpendable
Trust Fund and Pension Trust Fund for the year then ended, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.

Our examination was made for the purpose of forming an opinion on the combined financial statements
taken as a whole. The combining financial statements and schedules listed in the Table of Contents are
presented for purposes of additional analysis and to meet legal reporting requirements and are not a required
part of the combined financial statements of the State of Maryland. Except for the Schedules of Estimated
Revenues and General, Special and Federal Fund Appropriations-Budgetary Basis for the year ending June
30, 1985 (pages 69 and 70), the information has been subjected to the auditing procedures applied in the
examination of the combined financial statements and, in our opinion, is fairly stated in all material respects
in relation to the combined financial statements taken as a whole.

The other data included in this report have not been audited by us and, accordingly, we express no opinion
on such data.

Baltimore, Maryland
October 26, 1984

Certified Public Accountants

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