Which of the following funds are proprietary funds?

The generally accepted accounting principles (GAAP) basis classification divides funds into three broad fund categories:  Governmental, Proprietary, and Fiduciary. The GAAP classification assigned to a fund impacts how the fund is displayed in the state comprehensive annual financial report.

1. Governmental Funds

   These funds are used to record and report the normal resources and costs of day-to-day activities in providing governmental type services.  The focus of governmental funds is current financial resources. Funds in this group are classified into one of the following five fund types:

   • General Fund: This is the main operating fund of the state. It is used to account for all financial resources not accounted for and reported in another fund.
   • Special Revenue Funds: Used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
   • Capital Project Funds: Used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets (other than those financed by proprietary and fiduciary funds).
   • Debt Service Funds: Used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Debt service funds should also report financial resources being accumulated for principal and interest maturing in future years (other than those financed by proprietary and fiduciary funds).
   • Permanent Funds: Used to account for and report resources that are legally restricted to the extent that only earnings, and not principal, may be used to support the reporting government’s programs, that is, for the benefit of the government or its citizens.
2. Proprietary Funds

   These funds are used to account for assets held in a trustee capacity for others or as a custodian/agent for individuals, private organizations, and other governments, and cannot be used to support the government’s own programs. Funds in this broad group are classified into four fund types:

   Funds are categorized into one of 11 different fund types. The fund types are grouped into three classifications:

   • Governmental funds – generally used to account for tax-supported (governmental) activities.
   • Proprietary funds – used to account for business-type activities (such as activities supported, at least in part, by fees or charges).
   • Fiduciary funds – used to account for resources held by an agency as a trustee or custodial capacity for outside parties. These resources cannot be used to support the agency’s own programs and must meet the fiduciary activities criteria.

   The following chart reflects the fund structure categorized as governmental, proprietary or fiduciary fund types and includes the USAS fund type code in parenthesis.

   Governmental FundsProprietary FundsFiduciary FundsGeneral (FT01)Enterprise (FT05)Pension (FT10)Special Revenue (FT02)Internal Service (FT06)External Investment Trust (FT18)Debt Service (FT03)Private-Purpose Trust (FT20)Capital Projects (FT04)Custodial (FT22)Permanent (FT19)

   Suspense funds are reported in fund types 01 or 05. Discrete component units are reported in fund type 15.

   Use the following fund types in USAS to record the basis conversion transaction amounts needed to convert the FFS to the GWFS.

   Basis Conversion Fund TypesFund Type NumbersCapital Asset Adjustments11Long-Term Liabilities Adjustments12Other Adjustments21

   GASB 35 established accounting and financial reporting standards for universities within the financial reporting guidelines of GASB 34. Universities are reported as business-type activities (BTA) and must follow proprietary fund accounting. Universities are required to report all funds in a single column instead of by individual USAS fund. For more information, see Proprietary Funds.

   Propriety Funds are used to account for a government's ongoing organizations and activities that are similar to businesses found in the the private sector. These funds are considered self-supporting in that the services rendered by them are generally financed through use charges or on a cost reimbursement basis. There are two (2) types of proprietary funds:

   The Enterprise Fund is used to account for any activity for which a fee is charged to external users for goods or services. Activities are required to be reported as enterprise funds. The City Enterprise Funds include the following funds:

   
   

   • Sewer - Fund 60: This is a City fund for the collection of sewer fees and the operation and maintenance of Sewer Maintenance.

   
   

   • Debt Service Sewer Revenue Bonds: This is a funding source for various capital improvements paid for by sewer revenue and the connected municipalities.

   
   

   • Intermunicipal Sewer Fund - Fund 61: This is for the operation and maintenance of the Wastewater Treatment Plant

   
   

   • Sewer Transportation - Fund 62: This fund holds moneys for the $.0.04 per 1,000 gallons charged to the connected municipalities for use to pay fro capital improvements to the sanitary sewer conveyance system and/or the Wastewater Treatment Plant.

     What are the proprietary funds?

     Propriety Funds are used to account for a government's ongoing organizations and activities that are similar to businesses found in the the private sector. These funds are considered self-supporting in that the services rendered by them are generally financed through use charges or on a cost reimbursement basis.

     What is an example of a proprietary fund?

     Also as mentioned above, proprietary funds account for business-like activities of the government. The most common example is utilities.

     How many types of proprietary funds are there?

     According to GAAFR (the Blue Book), proprietary funds are “used to account for activities that receive significant support from fees and charges.” There are two types of proprietary funds: enterprise funds and internal service funds.

     What are the 5 types of governmental funds?

     Governmental funds are classified into five fund types: general, special revenue, capital projects, debt service, and permanent funds.