1.0 General Information
1.1 Statutory References
Sections 4-31a (b), 4-69 (2), (24), (33) and (34).
1.2 General Definition
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.
Connecticut State accounting is organized and operated on a fund basis.
The State's financial statements and reports, must show how money is spent,
rather than how much profit was earned. State reporting details the
expenditures and revenues for each of the State's individual funds, and
generates reports that summarize the State's financial activities across all
of its funds.
Funds have a five digit code in the ranges indicated. To see the specific
code for each fund:
1.3 Governmental Funds
General Fund: 11000 Special Revenue Funds: 12001 - 12068 Non-Capital
Improvements & Other Projects Funds: 13001 - 13048 Debt Service Funds: 14001
- 14006 Capital Improvement and Other Purpose Funds: 17001 - 17991+
Enterprise Funds: 21001 - 21023 Internal Service Funds: 22001 - 22004
Pension Funds: 31001 - 31012 Agency Funds: 34001 - 34010 Other Trust
Funds: 35001 - 35016 Private Purpose Trust Fund: 91503 - 93405 Political
Sub-Division Fund: P-1000
2.0 Specific Funds Defined
2.1 General Fund - 11000
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.
2.2 Special Revenue Funds - 12001
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.
2.3 Debt Service Funds - 14001
These funds account for the accumulation of resources for, and the
payment of, long term debt principal and interest.
2.4 Capital Project Funds - 13001 + 17001
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).
2.5 Enterprise Funds - 21001
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.
2.6 Internal Service Funds - 22001
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. These funds are authorized to use special asset profiles with a
prefix of IS to facilitate their reporting needs.
2.7 Pension Trust Funds - 31001
Pension trust funds account for the various pension plans administered
and funded by the State of Connecticut.
2.8 Agency Funds - 34001
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
2.9 Other Trust Funds - 35001
These funds account for trusts whose principal and interest may be
expended in the course of their designated operations.
2.10 Private Purpose Trust Funds - 91503
Those trust funds whose principal must be preserved intact.
2.11 Special Local Funds
A. CGS Sec. 4-53 and 4-56
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.
B. CGS Sec. 4-31a
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.
2.12 Accounting Procedures Manual for Activity and Welfare Funds
The Comptroller's office maintains an Accounting Procedures Manual for
Activity and Welfare funds. All types of "special local funds" authorized by
the Comptroller, must maintain adequate records 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.
Instructions for maintaining Petty Cash Funds, which are "special local
funds," are contained in the Miscellaneous Section of the Accounting
Procedures Manual for Activity and Welfare funds.
There are detailed instructions for opening a bank account and endorsing
checks in the Receipts section of this manual. See the Receipts section,
paragraph 2.1 for information on opening a bank account, and paragraph 2.3
for methods of endorsing checks.
Bank Deposit Tickets for checking accounts should be completed in
duplicate. Have the duplicate ticket receipted by the bank and retain it
with the fund records.
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.
3.0 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. The Comptroller will request approval from the