ARTHUR
ANDERSEN

ARTHUR ANDERSEN & Co, SC

Arthur Andersen & Co.

120 East Baltimore Street
Baltimore MD 21202
4107275800

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

The Honorable Louis L. Goldstein
Comptroller of the Treasury of Maryland

We have audited the accompanying general purpose financial statements of the State of Maryland as of June 30,
1993, and for the year then ended, as listed in the table of contents. These general purpose financial statements
are the responsibility of the State of Maryland's management. Our responsibility is to express an opinion on these
general purpose financial statements based on our audit. We did not audit the financial statements of four loan
insurance programs and six loan programs of the Maryland Departments of Housing and Community
Development, Economic and Employment Development and Environment; Maryland Food Center Authority;
Maryland Environmental Service, State Use Industries, Maryland Higher Education Loan Corporation, and
Maryland Stadium Authority which represent total assets, revenues and expenses constituting 17.5 percent, 8.3
percent and 13.7 percent, respectively, of the related combined totals for Enterprise Funds and we did not audit
the financial statements of the Maryland Transportation Authority which represent total assets, revenues and
expenditures constituting 32.0 percent, 7.8 percent and 5.3 percent, respectively, of the related combined totals of
the Special Revenue Fund. Those financial statements were audited by other auditors whose reports thereon have
been furnished to us, and our opinion, insofar as it relates to the amounts included for the above mentioned
component units, is based solely on the reports of other auditors.

We conducted our audit in accordance with generally accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
general purpose financial statement presentation. We believe that our audit and the reports of other auditors
provide a reasonable basis for our opinion.

In our opinion, based on our audit and the reports of other auditors, the general purpose financial statements
referred to above present fairly, in all material respects, the financial position of the State of Maryland as of
June 30,1993, and the results of its operations and the cash flows of its Enterprise Funds for the year then ended
in conformity with generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a
whole. The combining financial statements and schedules listed in the table of contents, which are also the
responsibility of the State of Maryland's management, are presented for purposes of additional analysis and to
meet legal reporting requirements and are not a required part of the general purpose financial statements. The
information, except for the Schedules of Estimated Revenues and General, Special, Federal, Current
Unrestricted and Current Restricted Fund Appropriations—Budgetary Basis for the year ending June 30, 1994
(pages 79 and 80), has been subjected to the auditing procedures applied in our audit of the general purpose
financial statements and the reports of other auditors referred to above, and, in our opinion, is fairly stated in all
material respects in relation to the general purpose 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 29,1993

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