What are the three fund types (categories) used by state and local governments?
There are five main types of government funds, which includes the general fund, the capital projects fund, the permanent fund, the special revenue fund, and the debt service fund. Show 1) The General Fund: The General Fund is used to account for ordinary operations of a governmental unit and is financed from taxes as well as other general revenues. All funds coming from the general fund are “current” fund and will not contain long-term assets or liabilities. The General Fund will be used for administrative and operational tasks of the governmental entity. 2) Capital Projects Fund: The Capital Projects Fund is a governmental fund that is used for tracking the financial resources used to acquire or construct major capital assets. 3) Permanent Fund: The Permanent Fund is a fund used to report resources that will legally restrict the entity to the extent that income, and not principal, will be used to support the governments programs or the benefit of the general public. 4) Special Revenue Fund: The Special Revenue Fund is a set up to account for revenues from specific taxes to finance certain governmental activities. 5) Debt Service Fund: The Debt Service Fund is set up to account for payment of principal and interest on both short-term and long-term debt for government entities. GASB Codification Section 1300 – Fund Accounting Process and Document Preparation: New York State has three broad fund categories that are further divided into fund types. A fund type is the grouping of all funds of similar characteristics and purposes. Only the minimum number of funds consistent with legal and operating requirements will be established since unnecessary funds result in inflexibility and inefficient financial administration. The fund categories and related fund types are listed below and are discussed in greater detail later in this section.
A list of the State's funds, classified by fund type, is set forth in Section 3.C - State Funds Included in the ACFR of this Chapter. A detailed description of the activities and characteristics of the different fund types is necessary for a complete understanding of governmental accounting. A discussion of the fund types used by the State, as well as the criteria used to make determinations regarding classification of a fund to a fund group, follow below. These are the funds through which most governmental functions are financed. The acquisition and use of the State's expendable financial resources (current assets) and the related current liabilities, as well as any deferred inflows and outflows of resources, are accounted for through these funds. All Governmental Funds use the modified accrual basis of accounting and their measurement focus is a flow of spendable financial resources. This fund category is comprised of the following fund types:
The required financial statements for the Governmental Funds are the:
These funds are used to account for business-type activities supported, at least in part, by fees or charges. There are two types of proprietary funds: enterprise funds and internal service funds. The State has no internal service funds on a GAAP basis.
The required financial statements for the Enterprise Funds are the:
These funds are used to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Trust Fund spending is controlled primarily through legal trust agreements and applicable State Laws. Equitable title to fund assets does not pass to the State by virtue of the custodial role. This fund category is comprised of the following three fund types:
The required financial statements for the Fiduciary Funds are the:
Guide to Financial Operations REV. 09/12/2022What are the three types of government funds?Governmental funds are classified into five fund types: general, special revenue, capital projects, debt service, and permanent funds.
What are the 3 categories of funds prescribed by GASB standards and which fund types are included in each which basis of accounting is used by each category?The three categories of funds are governmental, proprietary, and fiduciary. The fund types included in each category are shown below: The basis of accounting used by governmental funds is modified accrual. Proprietary funds use the accrual basis of accounting as do fiduciary funds.
What are the different types of government funding?The information below outlines four common types of federal government funding including individual benefits, appropriations, grants and procurement.
How many fund types are there?Mutual funds fall into four main types: equity funds, bond funds, hybrid funds, and money market funds. Equity funds tend to be riskier, while bond funds are generally more risk averse.
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