Special Fund:

The Special Fund includes all of the transportation activities of the State fishery and wildlife funds, shared
taxes and payments of debt service on general obligation bonds, whereas the GAAP Special Revenue Fund
includes only the operations (other than debt service) of the Maryland Department of Transportation and
Maryland Transportation Authority.

Federal Fund:

The Federal Fund accounts for substantially all grants from the Federal government.

Higher Education Funds:

Current Unrestricted Fund: Unrestricted revenue used or available for use in carrying out the current
operations of the State's colleges and universities is accounted for in the current unrestricted fund.

Current Restricted Fund: Restricted gifts, grants and other restricted resources are accounted for in the
current restricted fund.

Budgetary Fund Equities and Other Accounts:

In addition to the annual budget, the General Assembly adopts authorizations for the issuance of general
obligation bonds. The expenditures of the resources obtained thereby are accounted for in the capital projects
fund. Because capital projects fund authorizations are not part of the annual budget, capital projects fund
activities are not 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 for the year ended June 30,1993.

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, 1993, the General Assembly approved
increases in General Fund appropriations aggregating $57,798,000. 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 funds appropriations to the extent
that revenues from the particular special, federal, current unrestricted or current restricted funds sources exceed
original budget estimates and such additional expenditures are approved by the Governor or, in the case of the
University of Maryland System, 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 the end of the fiscal year. 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 for the year
ended June 30, 1993. 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. The budgetary system's principal
departures from the modified accrual basis are the classification of the State's budgetary funds and the timing of
recognition of certain revenues and expenditures. A summarization of the effect of the fund structure differences

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