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, 2006, and June 30, 2005, are as follows:

Fiscal Year Ended June 30,
(In Thousands)
2006 2005
General Fund
Taxes:
Personal Income $372,813 $356,336
Sales and Use 343,395 376,480
Petroleum Companies 72,961 52,082
Public Service Corporations 52,032 48,945
Corporation 34,429 37,667
Nursing Home Provider 28,961 -
Real Estate Conveyance 24,643 28,276
Cigarettes 15,366 16,098
Alcoholic Beverages 4,967 4,464
Estate Tax - 3,189
Indian Gaming Payments 35,289 33,815
Total General Fund 984,856 957,352
Transportation Fund
Gasoline 33,141 34,721
Special Motor Fuel 6,223 6,438
Motor Carrier Road 1,610 1,245
Total Transportation Fund 40,974 42,404
Totals $1,025,830 $999,756