STATE OF MARYLAND

Combined Statement of Cash Flows

Enterprise Funds and Component Unit Proprietary Funds

for the year ended June 30,2000

(Expressed in Thousands)

	Primary Government Enterprise	Component 1 Unit Proprietary 1	total Reporting Entity 'Memorandum
	Funds	Funds	Only)
Cash flows from operating activities:
Operating income (loss)...........................................................................................................	$429,478	$ (9,679)	$419,799
Adjustments to reconcile operating income to net cash provided (used) by operating activities:
Depreciation and amortization .............................................................................................	2,966	12,299	15,265
Loss on disposal of property, plant and equipment...............................................................	215		215
Effect of changes in assets and liabilities:
Other accounts receivable ................................................................................................	(14,588)	2,268	(12,320)
Tuition contracts receivable... ...........................................................................................		12,401	12,401
Due from other funds/primary government.....................................................................	(49,541)	(4,309)	(53,850)
Inventories .......................................................................................................................	(654)		(654)
Loans and notes receivable...............................................................................................	(121,783)		(121,783)
Other assets......................................................................................................................	(10,240)	(2,186)	(12,426)
Accounts payable and accrued liabilities..... .............................................................. ........	3,133	2,590	5,723
Accrued tuition benefits...................................................................................................		12,027	12,027
Due to other funds...........................................................................................................	3,676	(757)	2,919
Accrued insurance on loan losses .....................................................................................	(5,171)	(331)	(5,502)
Other liabilities ................................................................................................................	(1,085)	(1,560)	(2,645)
Deferred revenue.. ............................................................................................................	(881)	(213)	(1,094)
Accrued self insurance costs.............................................................................................	4	83	87
Accrued annual leave........................................................................................................	110	70	180
Lottery installment payments ...............................................................................................	(111,475)		(111,475)
Future lottery prize installments ...........................................................................................	52,645		52,645
Net cash provided by operating activities .....................................................................	176,809	22,703	199,512
Cash flows from non-capital financing activities:
Third party contributions.........................................................................................................		1,000	1,000
Proceeds from sale of revenue bonds........................................................................................	529,587	250	529,837
Payment on revenue bonds.......................................................................................................	(394,574)		(394,574)
Operating transfers in..............................................................................................................	77,439		77,439
Operating transfers in from primary government ....................................................................		30,780	30,780
Operating transfers out............................................................................................................	(408,108)		(408,108)
Operating transfers out to primary government.. .....................................................................		(816)	(816)
Contributed capital..................................................................................................................	41,954		41,954
Grant recoveries.......................................................................................................................	74		74
Net cash provided (used) by non-capital financing activities ......................................	(153,628)	31,214	(122,414)
Cash flows from capital and related financing activities:
Investments in direct financing leases ......................................................................................		6,897	6,897
Increase in interest in direct financing lease .............................................................................		(3,698)	(3,698)
Proceeds from notes payable and revenue bonds......................................................................	2,210	121,380	123,590
Principal paid on notes payable and revenue bonds .................................................................	(1,032)	(131,918)	(132,950)
Interest payments .....................................................................................................................	(120)	(22,064)	(22,184)
Acquisition and construction of property, plant and equipment ..............................................	(3,836)	(2,680)	(6,516)
Decrease in revenue bond debt service account........................................................................		(397)	(397)
Proceeds from property, plant and equipment sales.... ..............................................................	16	66	82
Net cash used by capital and related financing activities .............................................	(2,762)	(32,414)	(35,176)
Cash flows from investing activities:
Proceeds from maturity and sale of investments ......................................................................	668,370	27,835	696,205
Purchase of investments...........................................................................................................	(714,344)	(57,580)	(771,924)
Interest on investments ............................................................................................................	21,217	4,889	26,106
Increase in loans and notes receivable ......................................................................................		209	209
Lease principal interest payments received.......................... .....................................................		1,154	1,154
Net cash used by investing activities ...........................................................................	(24,757)	(23,493)	(48,250)
Net decrease in cash and cash equivalents....................................................... ...........	(4,338)	(1,990)	(6,328)
Cash and cash equivalents balance, July 1, 1999 ..........................................................................	190,721	4,251	194,972
Cash and cash equivalents balance, June 30, 2000 .......................................................................	$186,383	$ 2,261	$188,644

Noncash transactions (amount in thousands):

Enterprise funds—Unrealized gain on investments $4,137. The acquisition of equipment totaling $143 which was financed by contributed capital from the State.

Proprietary funds—Unrealized gain on investmensts $1,302.

The accompanying notes to the general purpose financial statements are an integral part of these financial statements.
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