Fund Types
Governments have multiple options when it comes to handling money. The diversity of funds and having a policy on how to manage funds is essential for governments because of the many different ways in which the government must allocate its budget and the many different ways that a government is expected to generate returns on its investments. Critical oversight of this process is crucial to governmental monetary and fiduciary success.
The Eleven Fund Types
The eleven fund types that government agencies can use for allocating revenues can be categorized into the three broader groupings: governmental funds, proprietary funds (business type funds), and fiduciary funds. The eleven fund types as grouped by the three categories are as follows:
Governmental funds consists of: 1) general funds, such as accounts for general operations -- Sheriff, Parks, etc.; 2) special revenue funds, such as a Tourist Tax Fund; 3) debt service funds, such as the 2008 Series Debt Service Fund; 4) capital projects funds; 5) permanent funds, such as a cemetery care fund.
Proprietary funds consist of 6) enterprise funds, such as water/sewer funds;...
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