- 2.0 FUNDS
- 2.1 Statutory References
- Sections 4-31a (b), 4-69 (2), (24), (33) and (34).
- 2.2 General Information
- Connecticut State accounting is organized and operated on a fund basis. A fund is
defined as a financial and accounting entity with a self-balancing set of accounts
recording cash and other financial resources, together with all related liabilities and
residual equities or balances, and changes therein, which are segregated for the purpose
of carrying on specific activities or attaining certain objectives in accordance with
special regulations, restrictions, or limitations.
Funds have a four digit code in the
ranges indicated. The specific code for each fund is shown in the section on coding.
|Special Revenue Funds
||1001 - 1999
|Debt Service Funds
||2001 - 2999
|Capital Projects Funds
||3001 - 3999
|Internal Service Funds
||4001 - 4999
||6001 - 6999
||7001 - 7199
|Expendable Trust Funds
||7201 - 7299
|Non-Expendable Trust Funds
||7301 - 7399
|Pension Trust Funds
||7801 - 7899
- 2.3 General Fund - 0000
- This fund accounts for the general operations of the State of Connecticut. All revenues
and financing sources--all expenditures and other uses of these resources--not required to
be accounted for in another fund are accounted for in the General Fund.
- 2.4 Special Revenue Funds - 1000
- These funds account for the proceeds of specific revenue and other financing sources
(other than expendable trusts, or for major capital projects) that are legally restricted
to expenditure for specified purposes.
- 2.5 Debt Service Funds - 2000
- These funds account for the accumulation of resources for, and the payment of, long term
debt principal and interest.
- 2.6 Capital Projects Funds - 3000
- These funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by proprietary funds
and trust funds).
- 2.7 Internal Service Funds - 4000
- These funds account for the financing of goods or services provided by one department or
agency primarily or solely to other departments or agencies of the State, or to other
governmental units, on a cost-reimbursed basis.
- 2.8 Enterprise Funds - 6000
- These funds account for operations (a) that are financed and operated in a manner
similar to private business enterprises--where the intent is that costs of providing goods
or services primarily or solely to the general public on a continuing basis be financed or
recovered primarily through user charges; or (b) that periodic determination of revenues
earned, expenses incurred, and/or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
- 2.9 Agency Funds - 7001-7199
- These funds account for assets held by the State as an agent for individuals or
government units. In the future these assets will be transferred to other state funds or
to sources outside the State.
- From the foregoing definitions it follows that Agency Funds cannot be used to record
revenue or expenditures of the State of Connecticut. State revenue will be recorded as
such when it is transferred from an Agency Fund to the General Fund or to other than
another Agency Fund.
Agency funds are also used for pension funds administered but not
funded by the State. These include Municipal Retirement and Probate Judges and Employees.
- 2.10 Expendable Trust Funds - 7201-7299
- These funds account for trusts whose principal and interest may be expended in the
course of their designated operations.
- 2.11 Non-Expendable Trust Funds - 7301-7399
- Those trust funds whose principal must be preserved intact.
- 2.12 Pension Trust Funds - 7801-7899
- Pension trust funds account for the various pension plans administered and funded by the
State of Connecticut.
- 2.13 Special Local Funds
1. Some agencies or departments maintain funds, and records thereof, that are separate from
the regular State funds and records. Receipts for these funds are deposited in separate
bank accounts and the records are maintained at the agency or department level only. These
"special local funds" are usually maintained for the benefit of patients,
inmates, students, or employees of state operated facilities. Authorization for
establishment of such funds is contained in Sec. 4-53 and 4-56.
- 2. All gifts, donations, or bequests, not made for the group benefit of all students,
inmates, or patients of a state facility shall, unless exempted by statutes, be entered
upon the records of the general fund. Such receipts shall not be entered in the records of
a "special local fund." (Refer to Sec. 4-31a.)
- 3. The Comptroller's Office has issued an Accounting Procedures Manual for
Institutional Activity and Welfare Funds.
- 4. Where applicable, the above manual is to be referred to and complied with. For other
types of "special local funds" authorized by the Comptroller, adequate records
shall be maintained to show all receipts and disbursements, and any other information that
is necessary to provide full details on operations. All "special local funds"
are subject to audit by the Auditors of Public Accounts.
- 5. Instructions for maintaining Petty Cash Funds, which are "special local
funds," are contained in the Miscellaneous Section, pages 12-2 thru 12-11.
- 6. Refer to the Receipts section, paragraph 2.1 for information on opening a bank account,
and to paragraph 2.3 for methods of endorsing checks.
- 7. Bank Deposit Tickets for checking accounts should be completed in duplicate (see
Receipts Exhibit 2-3). Have the duplicate ticket receipted by the bank and retain it with
the fund records.
- 8. In the event of a Bad Check Charge-Back, the bank will notify the custodian of the
"special local fund" of the reduction in the bank balance. The fund records
should be adjusted accordingly for such reductions. It is the responsibility of the agency
or department to take the necessary action to secure repayment of the check or to cancel
any credit recorded to an individual's account for the amount involved.
- 2.14 Establishing New Funds
- It is the policy of the Comptroller to discourage the establishment of new State funds
unless absolutely necessary or required by statute.
- The following is a Statement of Principle - Number of Funds issued by the Governmental
Accounting Standards Board:
- "Governmental units should establish and maintain those funds required by law and
sound financial administration. Only the minimum number of funds consistent with legal and
operating requirements should be established, however, since unnecessary funds result in
inflexibility, undue complexity, and inefficient financial administration."
- In those instances where a new fund is not authorized by statute but is determined to be
administratively required, the Comptroller may request approval from the Governor to
establish a fund under Section 4-31a(b). The agency concerned should send a written
request to the Comptroller stating the purpose of the fund, the source of receipts, and an
estimate of the size and duration of the fund.
- 3.0 AGENCIES
- 3.1 Statutory References:
- Section 4-69
- 3.2 General Information
- An agency for accounting purposes is defined as the lowest organizational unit which
receives appropriations and/or allotments and therefore is assigned an agency code. To
amplify this definition the following examples are furnished.
An agency such as the
State Comptroller for which the General Assembly appropriates for the office as a whole is
a single agency with a single agency code. The Central Accounting Division, Accounting
Systems Division, etc. are sub-units and thus receive no separate agency codes.
The Civil Air Patrol which is not a unit of state government, because it receives a
direct appropriation from the General Assembly, becomes an agency and is assigned an
Parent-Subsidiary Agencies. These are situations where the General Assembly
appropriates for the "department" or "Parent" as a whole but the
constituent units are controlled by the allotment process. In this case the constituent
unit (subsidiary) becomes an agency and is assigned an agency code. Examples are:
|4400 Mental Health Dept
||4403 Ct Valley Hospital
4404 Norwich Hospital
4405 Fairfield Hills Hosp
|7700 Regional Comm Coll
||7702 Manchester Comm Col
7703 Northwestern Com Col
|8100 Children & Youth Svs
||8103 Long Lane School
8104 Receiving Home
AGENCY NUMBERS ARE ASSIGNED BY CENTRAL ACCOUNTING.
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