recognition of certain revenues and expenditures. A summarization of the effect of the fund structure differences
and exceptions to the modified accrual basis of accounting, at June 30, 1992, follows (amounts expressed in
thousands):

	Total Budgetary
	Fund
	Equities			Financial	Statement	Funds
	and Other						Trust
	Accounts		Special	Debt	Capital		and	Higher
	June 30, 1992	General	Revenue	s Service	Projects	Enterprise	Agency	Education
Classification of budgetary fund equities and other
accounts into GAAP fund structure:
General ..................................	$ (21,415)	$ (21,415)
Special ...................................	296,244	105,441	$15,432	$ 57,296	$18,972	$ 99,103
Current unrestricted .......................	102,161							$ 102,161
Current restricted .........................	1,747							1,747
Other accounts (a):
Non-budgeted ...........................	63,143	60,105	2,480			558
Debt service transportation bonds ..........	93,830			93,830
Capital projects ..........................	170,927				71,182	99,745
Enterprise ..............................	2,417,129					2,417,129
Expendable trust ........................	285,293						$ 285,293
Pension trust ............................	12,734,094						12,734,094
Higher education ........................	2,065,194							2,065,194
Budgetary fund equities and other accounts
classified into GAAP fund structure: ..........	$18,208,347	144,131	17,912	151,126	90,154	: 2,616,535	13,019,387	2,169,102
Accounting principle and timing differences:
Assets recognized in the GAAP financial
statements not recognized for budgetary
purposes:
Intergovernmental receivables .............		(9,306)
Other accounts receivable .................		3,899
Loans and notes receivable, net .............		(1,181)
Liabilities recognized in GAAP financial
statements not recognized for budgetary
purposes:
Accounts payable and accrued liabilities ......		(89,435)
Local income taxes payable to local income
taxes agency fund ......................		(164,035)
Deferred revenue ........................		(5,798)
GAAP financial statement fund equities,
June 30, 1992 .............................		$(121,725)	$17,912	; $151,126	$90,154	t $2,616,535	$13,019,387	$2,169,102

(a) 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 system maintained by the
Comptroller, certain individual agencies which are not subject to the State's budget maintain accounting systems
which permit financial reporting on the basis of generally accepted accounting principles. The changes in net
assets of agencies whose accounting systems are not entirely maintained by the Comptroller are recorded in the
State's accounting system as of the end of the fiscal year.

At June 30,1992, the budgetary General Fund reflected a total deficit and undesignated deficit in the amounts
of $21,415,000 and $56,440,000, respectively. On July 22, 1992, the Board of Public Works approved the
Governor's plan to reduce fiscal year 1993 general fund appropriations by $56,500,000.

4. Cash and Cash Equivalents and Investments:

Substantially all cash and cash equivalents of the governmental fund types and certain proprietary and
fiduciary funds are maintained by the State Treasurer on a pooled basis. The State Treasurer's Office invests
short-term funds on a daily basis. The investments consist of purchases of securities or repurchase agreements.
Under the State Finance and Procurement Article of the Annotated Code of Maryland, Title 6, Subtitle 2, the
State Treasurer may only invest in the following:

• Any obligation for which the United States has pledged its faith and credit for the payment of principal and
interest.

• Any obligation that a federal agency issues in accordance with an act of Congress.

• Repurchase agreements that any of these obligations secure.

• Banker's acceptances.

• Mutual funds that invest solely in federal obligations.

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