The main accounting difference with profit accounting is the use of funds in governmental accounting A fund is not a separate legal entity Rather they are the mechanism the government uses for its accounting and reporting The primary measurement focus for this reporting for governmental fund types is the flows and balances of financial resources, in contrast to profit organizations (businesses) whose primary measurement focus is income determination First, we will list the categories and funds within each category and then look at them in more detail 1) Government Funds • General Fund ( account for the day-to-day operations of the governmental unit ) • Special Revenue Fund ( ex state gasoline tax collected in order to maintain streets ) • Capital Projects Fund (account for constraction of major capital assets such as Liabrary ) • Debt Service Fund ( used to pay interest + principal on general long term debt of Gov.) • Permanent Trust Fund (account for resources in which the principal is legally Restricted) 2) Proprietary Funds • Enterprise Funds (used to account for governmental activities when the government acts like a private industry with a profit motive and the “revenues” come from the public) • Internal Service Funds (account for governmental activities that are operated like a business, but provide its services to other governmental agencies) 3) Fiduciary Funds • Pension Trust Fund • Investment Trust Fund • Private-Purpose Trust Fund • Agency Funds