Resources, and Changes in Fund Balances — Budget and Actual — for the year ended June 30, 1995. 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 and exceptions to the modified accrual basis of
accounting, as of June 30, 1995, follows (amounts expressed in thousands).

	Total
	Budgetary
	Fund Equities				Financial	Statement Funds
	and Other						Trust	Component	Units
	Accounts		Special	Debt	Capital		and	Higher	Proprietary
	June 30, 1995	General	Revenue	Service	Projects	Enterprise	Agency	Education	Funds
Classification of budgetary fund equities
and other accounts into GAAP fund
structure:
General..........................................................	$ 470,576	$470,576
Special...........................................................	631,357	183,592	$274,063	$51,446	$17,598	$104,658
Current unrestricted .................................	159,282							$159,282
Current restricted.......................................	3,504							3,504
Other accounts (a):
Non-budgeted..........................................	435,631	22,641	295,677	117,258		55
Debt service transportation bonds.....	39,101			39,101
Capital projects .....................................	92,803				(7,210:	) 100,013
Enterprise.................................................	796,427					796,427
Expendable trust.....................................	659,717						$ 659,717
Pension trust..........................................	16,293,279						16,293,279
Component units:
Higher education................................	2,259,217							2,259,217
Proprietary funds ..............................	23,492								$23,492
Budgetary fund equities and other
accounts classified into GAAP fund
structure:.....................................................	$21,864,386	676,809	569,740	207,805	10,388	1,001,153	16,952,996	2,422,003	23,492
Accounting principle differences:
Assets recognized in the GAAP
financial statements not recognized
for budgetary purposes:
Other accounts receivable.....................		(466]	I
Loans to other funds .............................			1,000
Liabilities recognized in GAAP financial
statements not recognized for
budgetary purposes:
Accounts payable and accrued
liabilities..............................................		18,847
Deferred revenue.....................................		(66,766)	1
Loans from other funds .......................			(50,000:	1
Accrued self-insurance costs ..............		(7,088)	i
GAAP financial statement fund equities,
June 30, 1995 .............................................		$621,336	$520,740	$207,805	$10,388	$1,001,153	$16,952,996	$2,422,003	$23,492

(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 must
be included to properly present the State's financial reporting in accordance with generally accepted accounting
principles.

4. Cash and Cash Equivalents and Investments:

Substantially all cash and cash equivalents of the governmental fund types and certain enterprise and fiduciary
funds are maintained by the State Treasurer on a pooled basis. The State Treasurer's Office invests short-term cash
balances on a daily basis. The investments consist 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 Government has pledged its faith and credit for the payment of
principal and interest.

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

• Repurchase agreements that any of the above obligations secure.

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