Types of Funds

General Fund

the main operating fund of local governments. Most departmental operating activities, such as those of police and fire, public works, culture and recreation, education, and social services, as well as general government support services, such as the city manager’s office, finance, personnel, and data processing. Is a Governmental Fund.

Special Revenue Fund

When tax or grant revenues or private gifts are restricted by external resource providers or committed by enabling legislation for particular operating purposes, such as the operation of a library or maintenance of roads and bridges.

Debt Service Fund

Governments that have bond obligations outstanding and certain other types of long-term general liabilities. The purpose is to account for financial resources designated for making principal and interest payments on general long-term debt. Is a Governmental Fund.

Capital Projects Fund

Typically created to account for tax or grant revenues or bond proceeds earmarked for a capital project, as well as payments to architects, engineers, construction contractors, and suppliers. Is a Governmental Fund.

Permanent Fund

Used to account for permanent endowments created when a donor stipulates that the principal amount of a contribution must be invested and preserved, but earnings on amounts so invested can be used for a purpose that supports the general public and the government’s own programs. Includes maintenance of a cemetery, a park, or aesthetic enhancements to public buildings. Is a Governmental Fund.

Proprietary Fund

Follow accounting and financial reporting principles similar to those for commercial business entities. Use of these principles assists financial statement users to assess operational accountability for proprietary activities. Uses the accrual basis of accounting.

Governmental Fund

Focuses on the inflows and outflows of current financial resources. Generally reports only current assets and deferred outflows of resources, current liabilities and deferred inflows of resources, and fund balances.

Internal Service Fund

Funds established to finance and account for services and commodities furnished by a designated department or agency to other departments and agencies within a single government or to other governments. Is a Proprietary Fund.

Enterprise Fund

A fund established to finance and account for the acquisition, operation, and maintenance of governmental facilities and services that are entirely or predominantly self-supporting by user charges; or for when the governing body of the government has decided periodic determination of revenues earned, expenses incurred, and/or net income is appropriate. Is a Proprietary Fund.

Fiduciary Funds

Report on operational accountability of those Fiduciary activities by using the economic resources measurement focus and accrual basis of accounting.

Custodial Fund

Funds consisting of resources received and held by the government for other entities; for example, taxes collected and held by a municipality for a school district. Is a Fiduciary Fund.

Trust Fund

Funds consisting of resources received and administered through a trust for the benefit of parties external to the government. Examples include investment, pension, and private-purpose trusts. Is a Fiduciary Fund.

Pension Trust Funds (PTFs)

Funds that collect retirement and other employee benefit contributions from government employers and employees, manage assets, and make payments to qualified retirants, beneficiaries, and disabled employees. Is a Fiduciary Fund.

Investment Trust Funds

Funds used to account for the assets, liabilities, net position, and changes in net position corresponding to the equity of the external participants. Is a Fiduciary Fund.

Private-Purpose Trust Funds

Funds that account for contributions received under a trust agreement in which the investment income of an endowment is intended to benefit an external individual, organization, or government. Is a Fiduciary Fund.