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A permanent fund
is a fund in which the income from the fund can be used for the specified
purpose; however, the principal of the fund (corpus) can not be expended.
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An enterprise
fund may be used to report an activity where a fee is charged to external
users for goods or services. An
activity is required to be reported as an enterprise fund if any one of the
following criteria is met:
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(1) the activity
is financed with debt secured solely by the revenue from that activity
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(2) laws require
the activity costs of providing services be recovered through fees and charge
from the activity
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(3) clearly
established pricing polices demonstrate that the government is trying to
recover its costs through user fees
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Internal service
funds may be used to report any activity that provides good or services to
other funds, departments, or agencies of the primary government and its
component units. Internal service
funds should be used only if the reporting government is the predominant
participant in the activity.
Otherwise, the activity should be reported as an enterprise fund.
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An investment
trust fund is used to report external investment pools.
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A private
purpose trust fund is used to report trust arrangements under which principal
and interest are used for specific beneficiaries.
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