PROPRIETARY AND FIDUCIARY FUNDS - 13400

Each Proprietary and Fiduciary Fund (except for the Special Deposit Fund) was established for a special purpose and is accounted by only one agency. Generally, proprietary and fiduciary fund types use the economic resources measurement focus described in SAM section 7430, and the accrual basis of accounting described in SAM section 7440 to record and report financial transactions, such as:

1. Recognizing revenue when earned, regardless of when collectible.
2. Recognizing expenses based on services received and goods used in the reporting period, regardless of when payment is made.
3. Accounting for all assets with no offsetting reserve and recording depreciation or amortization as the unit of cost of use of the assets in the period.

Where FSCU has issued special accounting instructions, agencies/departments will continue to use the accounts described in SAM Chapter 7600 to comply with such instructions. The procedures regarding income accounting prescribed in SAM chapter 8200 will continue to apply, except for funds that require accrual of income earned regardless of when collectible. Funds requiring accrual of operating income earned regardless of when collectible normally account for operating income as they are billed throughout the year and will continue to accrue income at the time and to the extent they now do.

Where FSCU has not issued any special instructions, agencies/departments will follow the general procedures described in SAM chapters 7000 to 19000, as well as the journal entries described in SAM chapter 10500, to the extent applicable.