In some local government financial reports you will find activities such as solid waste disposal and sewage disposal accounted for as a part of the General Fund. In other reports apparently identical activities are accounted for as enterprise funds. When is a government required to establish an enterprise fund?
Enterprise funds are created to deliver assisstance as rapidly as possible with enough flexibility to develop programs and use a variety of investment approaches to address specific conditions in each country. Whereas General funds is a pool of cash created from collection of taxes and can be used for various social causes. If problem of solid waste disposal or sewage disposal is quite intensive in a particular region or county an enterprise fund can be created for emergency assisstance
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