To the Citizens, Governor and
  Members of the South
  Carolina General Assembly

         It is my pleasure to present to the citizens of South Carolina this Comprehensive Annual Financial Report for the State of South Carolina for the fiscal year ended June 30, 1998. The report provides financial information about the State's operations during the year and describes its financial position at the end of the year.

         Contained in the report is information for the use of all those interested in the State's finances, including South Carolina taxpayers, members of the General Assembly and directors of the State's executive agencies as well as those investors and creditors with whom the State has an ongoing business relationship.

         As the Comptroller General and Chief Financial Officer of South Carolina, I present these financial statements as my representations, and I express confidence that the information is accurate in all material respects. The citizens of South Carolina may be further assured that this report contains all material facts about the State's financial condition and thereby reflects my total commitment to accountability to the taxpayers through full public disclosure.

         For the convenience of users, we have divided the report into three sections as follows:

• The Introductory Section, containing this letter of transmittal, the Certificate of Achievement for Excellence in Financial Reporting for the June 30, 1997 report, a list of State officials and an organizational chart of State government.

• The Financial Section, consisting of the general purpose financial statements (combined statements, component unit combining statements, and notes), required supplementary information, other combining financial statements, and schedules.

• The Statistical Section, presenting comparative financial data and other non-financial data.