The paper "Governmental, Proprietary, and Fiduciary Funds" is a good example of an essay on finance and accounting. Governmental funds - These are funds that are regarded as being used for typical governmental functions and they include the following. A debt-service fund is a form of a government fund that is fully devoted to the repayment of debt. This fund is obtained through budgetary allocation that the government does at the beginning of each of its financial year. Local debts arise from the amount borrowed from the local industries and investors. Capital projects funds are kept by the government in order to finance the acquisition of capital assets, building or renovation of government equipment and infrastructural development.
This group of funds does not include capital assets paid for through the proprietary funds. (Ruppel, 2011). Permanent funds are composed of the various investments and other resources that the government is not allowed by the constitution to spend or convert into cash. This fund can only be spent in circumstances that the government is in short supply of funds to finance its projects that directly benefit the people. Proprietary funds - Proprietary fund is another type of government funds that are used for the accounting of the ongoing organizations and activities of the government that are deemed to be similar to the businesses in the private sector.
The funds are regarded as self-supporting owing to the fact that such services are financed by user charges or on reimbursement basis (Finkler, et. al, 2013). There are two types of funds in this category namely enterprise funds and internal service funds. Fiduciary funds - These are funds used to account for the assets that are held by a unit of the government in a trustee capacity or as an agent to individuals or private organizations.
This category is made of four types of funds namely investment trust funds, agency funds, private-purpose trust funds, and pension trust funds.