Louis L. Goldstein

Comptroller of the Treasury

Louis L. Goldstein Treasury Building, P. 0. Box 466
Annapolis, Maryland 21404-0466

Honorable Members of the General

Assembly and the Governor,
State of Maryland:

October 30, 1995

INTRODUCTION

The Comprehensive Annual Financial Report of the State of Maryland, for the fiscal year ended June 30, 1995,
submitted herewith, includes financial statements of the State of Maryland as well as information required by
Title 2, Section 102 of the State Finance and Procurement Article of the Annotated Code of Maryland.
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with the Office of the Comptroller. I believe the data, as presented, are accurate in
all material respects; that they are presented in a manner designed to fairly set forth the financial position and
results of operations of the State as measured by the financial activity of its various funds; and that all disclosures
necessary to enable the reader to gain the maximum understanding of the State's financial affairs have been
included.

This Report is presented in three sections; introductory, financial, and statistical. The introductory section
includes this transmittal letter, the State's organizational chart, and a list of principal officials. The financial section
includes the general purpose financial statements and the combining and individual fund and account group
financial statements and schedules, as well as the independent public accountants' report on the financial
statements and schedules. The statistical section includes selected financial and demographic information,
generally presented on a multiyear basis.

The accompanying financial statements include all funds and account groups of the State of Maryland (primary
government), as well as all of its component units. Component units are legally separate entities for which the
primary government is financially accountable.

Blended component units, although legally separate entities, are, in substance, part of the primary
government's operations and are included as part of the primary government. Accordingly, the Maryland Industrial
Development Financing Authority and the Maryland Stadium Authority are reported as enterprise funds of the
primary government. In addition, the State Retirement and Pension System of Maryland is reported in the pension
trust funds of the primary government. Discretely presented component units are reported in a separate column in
the combined financial statements to emphasize that they are legally separate from the primary government and to
differentiate their financial position, results of operations and cash flows from those of the primary government.
The various colleges and universities, the Maryland Food Center Authority, Maryland Enviromental Service and the
Maryland Higher Education Loan Corporation are reported as discretely presented component units.

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