All State budgetary expenditures for the general, special, federal, current unrestricted and current
restricted funds are made pursuant to the appropriations in the annual budget, as amended from time to time
by budget amendments. State governmental departments and independent agencies 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, 1988, the General Assembly
approved increases in General Fund appropriations aggregating $19,681,000. Appropriations for programs
funded in whole or in part from the special, federal, current unrestricted or current restricted funds may permit
expenditures in excess of original special, federal, current unrestricted or current restricted fund appropriations
to the extent that revenues from the particular special, federal, current unrestricted or current restricted fund
sources exceed original budget estimates and such additional expenditures are approved by the Governor or, in
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; all other appropriations lapse as of June 30,1988. Unexpended appropriations from
special, federal, current unrestricted and current restricted funds may be carried over to the extent of (a)
available resources, and (b) encumbrances approved by the Department of Budget and Fiscal Planning.

The amended budget adopted by the General Assembly for the general, special, federal, current unrestricted
and current restricted 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, Federal, Current Unrestricted and Current Restricted 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 as of June 30, 1988, follows (amounts expressed in
thousands):

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