150-294-0420 Governmental Fund Definitions (1) For the purpose of this rule "fund" means a fiscal and accounting entity with self-balancing accounts to record cash and other financial resources, related liabilities, balances and changes, all segregated for specific, regulated activities and objectives. (2) Municipal corporations organized and operated on a fund accounting system shall prepare estimates of expenditures for the ensuing year using the following types of funds: (a) The General Fund — To account for all financial resources except those required to be accounted for in another fund. (b) Special Revenue Funds — To account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specific purposes. Funds as defined in ORS 294.311(39) and 280.040(2) are examples of special revenue funds. (c) Capital Projects Funds — To account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds, Special Assessment Funds and Trust Funds). (d) Debt Service Funds — To account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. (e) Special Assessment Funds — To account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. (f) Enterprise Funds — To account for operations: (A) That are financed and operated in a manner similar to private business enterprises — where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (B) Where the governing body has decided 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. (g) Internal Service Funds — To account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursement basis. (h) Trust and Agency Funds — To account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. These include: (A) Expendable Trust Funds; (B) Nonexpendable Trust Funds; (C) Pension Trust Funds; and (D) Agency Funds. (3) Estimates of expenditures and resources are not required to be budgeted if the following three criteria are met: (a) The municipal corporation holds the resources merely for safekeeping; (b) Expenditure of the resources is not under the control of the municipal corporation or a third party chosen by the municipal corporation; and (c) The resources are expended for a purpose other than that for which the municipal corporation levies a tax or expends funds. (4) Estimates of expenditures and resources are not budgeted if the criteria of ORS 294.361(3) and 294.338(2) are met. (5) It is the intention of this administrative rule to adopt governmental fund definitions that are recognized as generally accepted governmental accounting principles. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 294.388 History: Renumbered from 150-294.388(1)-(A), REV 42-2016, f. 8-12-16, cert. ef. 9-1-16 Renumbered from 150-294.352(1)-(A), REV 7-2012, f. 7-26-12, cert. ef. 8-1-12 REV 4-1998, f. & cert. ef. 6-30-98, Renumbered from 150-294.352(1) RD 9-1986, f. & cert. ef. 12-31-86