What Is an Enterprise Fund?

According to the Technical College System of Georgia, an enterprise fund is operated to account for revenue received for services and goods offered to members of a community on a continuing basis.

  1. Fund

    • The Massachusetts Department of Revenue website explains that an enterprise fund can be established to separate the revenue received for a specified service. The fund keeps the revenue separate from the general revenue and operating funds of the operating body.

    Benefits

    • A number of benefits are described by the Massachusetts Department of Revenue to operating an enterprise fund, including the accurate recording of information on the performance and costs associated with operating a service. Surplus funds from the operation of a service can also be kept in the enterprise fund for use in the future.

    Requirements

    • For the legal operation of an enterprise fund, the Technical College System of Georgia reports a service must provide a fee-charging service for a community. The enterprise must also operate separately from all other areas of a business.

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