A special revenue fund is a government fund that is used to finance specific activities or programs. The money in the fund can only be used for the purpose for which it was intended and cannot be used for other purposes. Special revenue funds are usually supported by dedicated revenue sources, such as taxes, user fees, or earmarked federal funds.
What are some similarities between a general fund and a special revenue fund?
Both general fund and special revenue fund revenues are derived from taxation. However, the revenues in a special revenue fund are restricted to a specific purpose, while revenues in a general fund are not. For example, gas tax revenues must be spent on road maintenance in a special revenue fund, but can be spent on any purpose in a general fund.
Both general fund and special revenue fund expenditures must be approved by the legislature. However, the legislature may place restrictions on how the funds in a special revenue fund can be spent. For example, the legislature may require that gas tax revenues in a special revenue fund can only be spent on road maintenance.
What are the 3 categories of funds prescribed by GASB standards and which fund types are included in each which basis of accounting is used by each category?
The three categories of funds prescribed by GASB standards are governmental funds, proprietary funds, and fiduciary funds. Governmental funds are used to account for primarily tax-supported activities and include the general fund, special revenue funds, debt service funds, and capital projects funds. Proprietary funds are used to account for activities that are self-sustaining and include enterprise funds and internal service funds. Fiduciary funds are used to account for activities that are for the benefit of other organizations or individuals and include pension trusts, investment trusts, and private-purpose trusts.
The basis of accounting used by each category varies. Governmental funds use the modified accrual basis of accounting, which recognizes revenues when they are measurable and available, and expenditures when they are incurred. Proprietary funds use the accrual basis of accounting, which recognizes revenues when they are earned and expenditures when they are incurred. Fiduciary funds use the fiduciary basis of accounting, which recognizes all resources that are held in trust for other organizations or individuals.
What is the difference between a governmental fund and a proprietary fund?
A governmental fund is a type of fund used by the government to track its finances. This fund is used to account for money that the government collects and spends. The money in this fund is typically used for public purposes, such as building roads or funding schools.
A proprietary fund is a type of fund used by the government to track its finances. This fund is used to account for money that the government collects and spends. The money in this fund is typically used for private purposes, such as funding a private business. What are the two proprietary fund types? The two proprietary fund types are the enterprise fund and the internal service fund.
An enterprise fund is a fund that is used to finance the operations of a self-sustaining enterprise. This type of fund is typically used to finance utilities, such as water, sewer, and electricity.
An internal service fund is a fund that is used to finance the operations of a government entity that provides services to other government units. This type of fund is typically used to finance activities such as payroll and benefits administration, or fleet maintenance.
What is the difference between general and special revenue fund?
There are two types of revenue funds that the government uses to finance its activities: the general revenue fund and the special revenue fund. The general revenue fund is the government's main operating account, into which all tax revenue is deposited. The special revenue fund is a separate account that is used to finance specific programs or activities.
The main difference between the two types of revenue funds is that the funds in the general revenue fund can be used for any purpose, while the funds in the special revenue fund must be used for specific purposes that are authorized by law. For example, the general revenue fund can be used to finance the government's general operating expenses, such as salaries and rent, while the special revenue fund can be used to finance specific programs, such as highway construction or food assistance.