Question

Governments often have services that operate much like a for-profit business. Give an example of one of these activities, and tell us what type of fund or funds it uses?  

please add references and cite your sources

Answer 1

Activities where government entity provides goods /services for a fee (similar to commercial entities) is termed as Proprietary funds.

There are two types of proprietary funds -

1.Internal service fund - It reports any activitythat provides goods/services internally to other funds/department of the primary government on cost-reimbursement basis.

Example - It dept, printing services, purchasing dept etc.

2. Enterprise funds - Report any activitty for which a fee is charged to "external users" for goods/services.

Example - City operated water and sewer utility, public hospitals, public universities, off-street parking lots, lotteries etc.

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