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, 2007, and June 30, 2006, are as follows:

Fiscal Year Ended June 30,
(In Thousands)
2007 2006
General Fund
  Taxes:
  Personal Income $408,166 $372,813
  Sales and Use 452,932 343,395
  Petroleum Companies 87,700 72,961
  Public Service Corporations 56,479 52,032
  Corporation 30,843 34,429
  Nursing Home Provider 28,459 28,961
  Real Estate Conveyance 26,278 24,643
  Cigarettes 15,179 15,366
  Alcoholic Beverages 5,619 4,967
  Indian Gaming Payments 36,080 35,289
Total General Fund 1,147,735 984,856
Transportation Fund
  Gasoline 33,348 33,141
  Special Motor Fuel 6,501 6,223
  Motor Carrier Road 1,343 1,610
Total Transportation Fund 41,192 40,974
Totals $1,188,927 $1,025,830