Governmental accounting systems are organized and operated on a fund basis. A fund is the basic unit used to segregate resources and expenditures. On a simplistic basis it can be compared to a checkbook. Given the complexity of the state's budget there are numerous fund types; the following highlights a few common to Admin and the customers served.
General Fund Activities
The general fund typically serves as the chief operating fund of a government. The general fund is used to account for all financial resources except those required to be accounted for in another fund.
Internal Service and Enterprise Fund Activities
Internal service fund activities provide goods or services to state agencies, on a cost-reimbursement basis. The internal service funds within Admin are:
- Fleet Services - Vehicles
- Plant Management - Central Mail
- Plant Management - Leases
- Plant Management - Repairs Other Jobs
- Risk Management - Property and Casualty Insurance
Enterprise funds account for activities for which a fee is charged to external users for goods or services. Enterprise fund activities are financed and operated in a manner similar to private business enterprises where the intent is to recover costs primarily through user fees. The enterprise funds within Admin are:
- Cooperative Purchasing
- Minnesota's Bookstore
- Surplus Services
- Building Construction, Bonded - Accounts for financial resources to be used for the acquisition or construction of major capital facilities.
- Debt Service - Allows for the accumulation of resources for the payment of general long-term debt principal and interest.
- Federal - Identifies funds provided by the federal government to carry out specific activities such as the Developmental Disabilities Council, STAR or other federal grant programs. Funds must be drawn pursuant to federal laws and policies. Recipients are required to report on a regular basis on the use of the funds and the results of the programs.
- Gift - Allows agencies to receive gifts (monetary or non-monetary). Unless specific statutory authority exists to receive gifts, approval of the Commissioner of Finance is required. Work with appropriate accounting staff any time a gift may be donated. Activities that have specific statutory authority to receive gifts must have a policy and procedure for gift acceptance.
- Master Lease - Accounts for loans from a financial institution that are typically used to finance the purchase of equipment (e.g. vehicles) that meet Admin's capitalization threshold.
- Special Revenue - Identifies funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes.
Periodic Standard Reports
Standard reports provide customers with an array of financial data. Financial Management and Reporting provides reports to some Admin divisions and small agencies, boards, councils and commissions to provide information and assist with managerial and budget decision-making.
All Standard Report Descriptions
- Manager's Financial Report (MFR) - Provides a manager with a useful budget snapshot as of the end of each month. This snapshot includes a line-item breakdown and comparison of amounts budgeted, encumbered and expended.
- Expenditures by Expense Budget - Provides actual payments made during a designated period. The report reflects the last working day of the period. Data is organized by funding source, object code and transaction number information.
- Receipts by Account - Provides a list of receipts processed for the period specified on the report. Receipts are sorted by transaction number within revenue source code within the organization.
- Open Requisition & Encumbrance - Provides supporting detail of all encumbered funds on a specific date. Salaries encumbrances are reflected as Payroll Reserve in the description field. Purchase orders are sorted in ascending order.
- Payroll Posting Audit Trail - Provides itemized payroll expenditure detail for each employee for an individual pay period. Data is organized by funding source and employee.
- Roster Staffing/Staffing Report by Expense Budget - Provides actual cumulative salary/fringe costs through a designated pay period end date and anticipated salary/fringe costs for the remainder of the fiscal year. Data is organized by funding source and employee.