Fund Accounting

FUND ACCOUNTING


Irvan Desmal

What is a Fund?

 A “fund” is a fiscal and an accounting entity with a self-balancing set of accounts

 In other words, a fund is an entity with its own set of books (ie., chart of accounts , general journal, general ledger, trial balances, and financial statements)

 Fund accounting uses the equation:

Assets = Liabilities + fund balance ( often referred to as net assets)

 Fund balance = difference between fund’s assets and claims against these assets

Akuntansi Dana adalah sistem akuntansi yang sering digunakan oleh organisasi-organisasi nirlaba dan institusi sektor publik. Sistem tersebut merupakan metode pencatatan dan penampilan entitas dalam akuntansi seperti aset, dan kewajiban yang dikelompokkan menurut kegunaannya masing-masing


Basis of Accounting

 Full Accrual: Revenues recognized when earned; expenses recognized when incurred

 Cash: Revenues recognized when available; expenses/expenditures recognized when paid

 Modified Accrual: revenues recognized when available and measurable; expenditures when incurred


Activities of Government

 Governmental Activities

 Proprietary Activities

 Fiduciary Activities


Types of Funds

 Governmental Funds (5)

General Fund; Special Revenue Funds; Capital Projects Funds; Debt Service Funds; Permanent Funds

 Proprietary Funds (2)

Internal Service Funds; Enterprise Funds

 Fiduciary Funds (4)

Agency Funds; Investment Trust Funds; Private purpose Trust Funds; Pension (and other employee benefit) Trust Funds


Fund Presentation

 Major funds

 Non-major funds presented in a single column by category

 Concept does not apply to fiduciary funds and internal service funds