Proprietary Fund

A Proprietary Fund is a government fund category for business-type activities primarily supported by taxes, grants, and similar revenue sources.

• Context:
  • It can (often) focus on the determination of Operating Income, changes in Net Assets, Financial Position, and Cash Flows.
  • It can (typically) be an Internal Service Fund or an Enterprise Funds.
  • It can (typically) be reported on an Accrual Basis and an Economic Resources Measurement Focus.
  • It can range from being a Local Government Proprietary Fund to being a State Proprietary Fund ...
• Example(s):
  • an Internal Service Fund, such as: an employee benefits internal service fund.
  • an Enterprise Fund, such as a sewer capital projects enterprise fund.
  • …
• Counter-Example(s):
  • a Governmental Fund.
  • a Fiduciary Fund.
• See: Governmental Activities Funds.

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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.

    Proprietary funds include the following.

    • “Internal service funds are used for operations serving other funds or departments within a government on a cost-reimbursement basis. A printing shop, which takes orders for booklets and forms from other offices and is reimbursed for the cost of each order, would be a suitable application for an internal service fund.
    • Enterprise funds are used for services provided to the public on a user charge basis, similar to the operation of a commercial enterprise. Water and sewage utilities are common examples of government enterprises.

• (City Council of Cambridge, 2016) ⇒ City Council of Cambridge, MA. (2016). “Annual Budget 2016-2017 Adopted by the City Council, Cambridge, Massachusetts."
  • QUOTE: PROPRIETARY FUNDS. Funds that focus on the determination of operating income, changes in net assets, financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds.
• (City Council of Barnstable, 2016b) ⇒ Town of Barnstable. (2016). “Town of Barnstable Adopted Operating Budget - 2017."
  • QUOTE: Proprietary funds: Funds that account for government’s business-type activities (e.g., activities that receive a significant portion of their funding through user charges). The fund types included in proprietary funds are the enterprise fund and the internal service fund. The internal service fund accounts for certain central services (e.g., data processing, printing, postage, motor pool) and then allocates the cost among departments or funds within the governmental unit.

201?

• http://www.gasb.org/jsp/GASB/GASBContent_C/UsersArticlePage&cid=1176156736184
  • QUOTE: … The proprietary and fiduciary funds report information using an accrual basis and economic resources measurement focus, similar to the type of information reported in the financial statements of not-for-profit organizations and corporations

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