Governmental Fund
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A Governmental Fund is a government fund category composed of funds for activities primarily supported by taxes, grants, and similar revenue sources.
- Context:
- It can be composed of a Bookkeeping Sub-Sub-Accounts, such as a Governmental General Funds, Governmental Special Revenue Funds, Governmental Capital Projects Funds, Governmental Debt Service Funds, and Governmental Permanent Funds.
- Example(s):
- Governmental General Funds, such as: ...
- Governmental Special Revenue Funds, such as: ...
- Governmental Capital Projects Funds, such as: ...
- Governmental Debt Service Funds, such as: ...
- Governmental Permanent Funds, such as: ...
- …
- Counter-Example(s):
- See: Funds Account, Governmental Activities Funds, Governmental Utility Billing Funds.
References
2016
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/fund_accounting#State_and_local_government_funds Retrieved:2016-1-7.
- State and local governments use three broad categories of funds: governmental funds, proprietary funds and fiduciary funds.
Governmental funds include the following.[1] [2]
- General fund. This fund is used to account for general operations and activities not requiring the use of other funds.
- Special revenue (or special) funds are required to account for the use of revenue earmarked by law for a particular purpose. State and federal fuel tax revenues require special revenue funds, because federal and state laws restrict these taxes to transportation uses.
- Capital projects funds are used to account for the construction or acquisition of fixed assets, [3] such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project. [4] Fixed assets acquired and long-term debts incurred by a capital project are assigned to the government's General Fixed Assets and Long-Term Debts.
- Debt service funds are used to account for money that will be used to pay the interest and principal of long-term debts. Bonds used by a government to finance major construction projects, to be paid by tax levies over a period of years, require a debt service fund to account for their repayment. The debts of special assessment and proprietary funds are serviced within those funds, rather than by a separate debt service fund. [5]
- Permanent funds account for public infrastructure improvements financed by special levies against property holders. Sidewalk and alley repairs often rely on special assessments.
- State and local governments use three broad categories of funds: governmental funds, proprietary funds and fiduciary funds.
- ↑ Hay, p. 6
- ↑ "Touring the Financial Statements, Part III: The Governmental Funds" Government Accounting Standards Board (November 2007). Retrieved 2010-03-17.
- ↑ Fixed assets are sometimes referred to as capital assets, a broader term than fixed assets.
- ↑ Earl Wilson, Jacqueline Reck, Susan Kattelas (2006). Accounting for Governmental & Nonprofit Entities, 14th edition. p. 163. McGraw-Hill. ISBN 0-07-310095-1.
- ↑ Hay, p. 164-165
2013
- (Georgia Department of Community Affairs, 2013) ⇒ Georgia Department of Community Affairs. (2013). “Third Edition of the Uniform Chart of Accounts for Local Governments in Georgia."
- QUOTE: Governmental funds — used to account for activities primarily supported by taxes, grants, and similar revenue sources.
2007
- http://www.gasb.org/cs/ContentServer?pagename=GASB/GASBContent_C/UsersArticlePage&cid=1176156735732
- QUOTE: There are three groups of funds for which financial statements are prepared — governmental, proprietary, and fiduciary. Proprietary funds are employed to report on activities financed primarily by revenues generated by the activities themselves, such as a municipal utility. Fiduciary funds contain resources held by a government but belonging to individuals or entities other than the government. A prime example is a trust fund for a public employee pension plan.
Governmental funds account for everything else. This is where the bread-and-butter services can be found — police, fire, social services, sanitation, and so on.
- QUOTE: There are three groups of funds for which financial statements are prepared — governmental, proprietary, and fiduciary. Proprietary funds are employed to report on activities financed primarily by revenues generated by the activities themselves, such as a municipal utility. Fiduciary funds contain resources held by a government but belonging to individuals or entities other than the government. A prime example is a trust fund for a public employee pension plan.