Funds Flashcards
What are two types of Proprietary Funds?
- Enterprise Fund
2. Internal Service Fund
What are five types of governmental funds?
- General Fund
- Special Revenue Fund
- Capital Projects Fund
- Debt Service Fund
- Permanent Fund
What are 4 types of Fiduciary Funds?
- Agency Fund
- Employee Pension Trust Fund
- Investment Trust Fund
- Private Purpose Trust Fund
Governmental fund
- One fund that all entities must have
- Records most taxes paid by citizens plus most required operating expenditures (administrative, public, safety, cultural, health, transportation, etc.
- example: purchases of equipment to fight wildfires
General Fund
Governmental fund
- Account for receipt and disbursement (via direct payment or as transfers) of resources dedicated for a specific governmental purpose
- Source of funding: gifts and fed/state grants, special taxes
- Multiple funds of this kind possible for a single government
- Must use all money given to them eventually
- example: federal grant all of which must be spent on medical supplies at a city clinic
Special Revenue Fund
Governmental fund
- accounts for resources used for building capital assets for governmental activities only
- one fund require for each project
- example: construction of new city roads
Capital Projects Fund
Governmental fund
- pays the interest and principal on governmental fund long-term debt
- example: principal and interest paid on bonds issued to build a new city hall
Debt Service Fund
Governmental fund
- account for legally restricted trust funds in which on the earnings only must be spent for purposes designated by donor to provide additional municipal/governmental services
- example: gift that must be invested and earnings only used for city programs
Permanent Funds
- use full accrual accounting and account for all assets and liabilities within the fund
- they should break-even in the long term
- these funds pay their own principal and interest on all debt and construct their own assets
- They pay salaries of their employees, supplies bought, etc.
- their equity accounts are called “net assets”
- includes: enterprise funds and internal service funds
Proprietary Funds
- uses modified accrual accounting
- capital assets and long-term debt are not reported on the fund statements for these funds
- only current assets, current liabilities, and the appropriate fund balance (equity accounts) are recorded
- capital assets used by these funds are not reported in the fund statements
- includes: General funds, special revenue funds, capital projects funds, debt service funds, and permanent funds
Governmental Funds
Proprietary fund
- external (citizens)
- account for parts of the government that sell goods/services to citizens (water, sewer, landfill, electric funds)
- called business-like activities
- example: purchases of water treatment equipment
Enterprise Fund
Proprietary Fund
-similar to enterprise funds, except goods and services are provided only to other funds within the government (computer, legal or accounting services, motor pools, etc. for the General fund)
Internal Service Fund
- funds act as a trustee or agent
- uses full accrual accounting
- the equity accounts used are “net assets”
Fiduciary Fund
Fiduciary fund
- act as a conduit for resources to their final destination
- examples: tax agency funds
Agency Funds
Fiduciary fund
-take money transferred from General fund, etc., invest it and pay out to retirees
Employee Pension Trust Funds
