ABSTRACT
Because governments, for the most part, are not subject to marketplace competition, and budgets in state and local governments reflect public policy priorities, significant breach of legal and contractual restrictions over budgetary resources
Contents 4.1 Introduction .............................................................................................149 4.2 Funds Descriptions ..................................................................................150 Endnotes ...........................................................................................................160
can have serious financial consequences. Understandably, governments take great care to adhere to restrictive rules on the use of public resources. To demonstrate fiscal and operational accountability and provide assurance to interested parties, such as grantors, legislators, and citizens, that resources are being used on approved purposes, most governments establish separate funds for resources earmarked to various activities. Hence, fund accounting is designed to help governments enhance control and accountability on the use of public resources.
