F8: Proprietary Funds Flashcards
What is the acronym used for Proprietary Funds?
“SE”
What type of accrual do proprietary funds get?
FULL accrual
What does the “S” stand for in “SE”?
Service (internal) fund
Purpose of a service internal fund
To finance and account for services and suppliers provided exclusively to other departments within a government (usually a cost-reimbursement basis)
Keyword for examples of service internal funds
“Central”
central janitorial depts, central computer processing depts
Revenue sources for service internal funds
- Restricted grant revenues
- Operating revenues
How are restricted revenues accounted for with service internal funds?
Recognized as revenue in the year monies are spent
How are operating revenues accounted for with service internal funds?
Recognized when earned
What are operating revenues?
Billings for services provided
Proprietary funds are “SPACE”. what does that mean?
SE PAPI Accrual Carry FA & LTD & depreciation Economic resources measurement focus
Are budgetary accounts and encumbrances used with Proprietary Funds?
NO!
3 categories of equity displayed under net position “RUN”
1- Restricted
2- Unrestricted
3- Net Investment
What does the “E” stand for in “SE”?
Enterprise Fund
Purpose of an enterprise fund
Accounts for operations that are financed and operated in a manner similar to private business enterprise
Keyword for examples of enterprise funds
“Public”
public utilities, public hospitals, etc.
