State of Connecticut

ACCOUNTING BASIS OF THE REPORT

This report has been prepared on a modified cash basis of accounting, consistent with the prior fiscal year.

Expenditures are charged against appropriations of the year in which they are paid.

Revenues are recognized when received except, in the General and Transportation Funds, for certain accrued taxes and Indian gaming payments and for Federal and other restricted grant revenues which are recognized when earned. The amount of accrued taxes and Indian gaming payments recorded at June 30, 2003, and June 30, 2002, are as follows:

Fiscal Year Ended June 30,
(In Thousands)
2003 2002
General Fund
Taxes:
  Sales and Use $ 334,610 $ 403,725
  Personal Income 294,825 234,001
  Public Service Corporations 43,385 32,146
  Corporation 22,276 19,363
  Petroleum Companies 27,819 24,949
  Real Estate Conveyance 17,833
  Cigarettes 14,494 11,363
  Alcoholic Beverages 4,078 5,915
Indian Gaming Payments 33,139 30,817
Total General Fund 792,459 762,279
Transportation Fund
  Gasoline 32,358 32,895
  Special Motor Fuel 5,767 3,862
  Motor Carrier Road 1,311 412
Total Transportation Fund 39,436 37,169
Totals $ 831,895 $ 799,448