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.



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.
  1. Hay, p. 6
  2. "Touring the Financial Statements, Part III: The Governmental Funds" Government Accounting Standards Board (November 2007). Retrieved 2010-03-17.
  3. Fixed assets are sometimes referred to as capital assets, a broader term than fixed assets.
  4. Earl Wilson, Jacqueline Reck, Susan Kattelas (2006). Accounting for Governmental & Nonprofit Entities, 14th edition. p. 163. McGraw-Hill. ISBN 0-07-310095-1.
  5. Hay, p. 164-165

2013

2007