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.

Governmental Funds

General Fund 0000
Special Revenue Funds 1001 - 1999
Debt Service Funds 2001 - 2999
Capital Projects Funds 3001 - 3999

Proprietary Funds

Internal Service Funds 4001 - 4999
Enterprise Funds 6001 - 6999

Fiduciary Funds

Agency Funds 7001 - 7199
Expendable Trust Funds 7201 - 7299
Non-Expendable Trust Funds 7301 - 7399
Pension Trust Funds 7801 - 7899
ACCOUNTING MANUAL 1-5 JANUARY 1987
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.
ACCOUNTING MANUAL 1-6 JANUARY 1987
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.
 
ACCOUNTING MANUAL 1-7 MAY 1988
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.
ACCOUNTING MANUAL 1-8 OCTOBER 1990
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.
ACCOUNTING MANUAL 1-9 MAY 1988
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 agency code.

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:

PARENT SUBSIDIARIES
4400 Mental Health Dept 4403 Ct Valley Hospital
4404 Norwich Hospital
4405 Fairfield Hills Hosp
ETC.
7700 Regional Comm Coll 7702 Manchester Comm Col
7703 Northwestern Com Col
ETC.
8100 Children & Youth Svs 8103 Long Lane School
8104 Receiving Home
ETC.

AGENCY NUMBERS ARE ASSIGNED BY CENTRAL ACCOUNTING.

ACCOUNTING MANUAL 1-10 JANUARY 1987


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