PROPRIETARY AND FIDUCIARY FUNDS - 13400-MAY-1985
(Revised and Renumbered from 18400 5/1985)
Each Proprietary and Fiduciary Fund (except for the Special Deposit Fund) was established for a special purpose and is accounted by only one agency. Therefore, no special accounting procedures relating to these funds are prescribed in this manual. In order to show appropriately the financial status and operations of certain Proprietary and Fiduciary Funds, it has been necessary to prescribe in special manuals or special instructions memoranda the use of all or some commercial accounting principles such as:
- Accruing collectible operating income earned, regardless of when collectible.
- Accruing expenditures on the basis of services received and goods used—or goods received if there are insignificant differences between usage and receipts of goods.
- Accounting for all assets with no offsetting reserve and depreciating it.
Where special manuals or special instructions memoranda have been issued by the Fiscal Systems and Consulting Unit of the Department of Finance, these instructions are still applicable except that (1) accounts prescribed in SAM Chapter 7600 will supersede those shown in such manuals and memoranda and (2) procedures regarding income accounting prescribed in SAM Sections 8200–8290 will supersede those shown in such manuals and memoranda unless the fund is of a type requiring accrual of collectible operating income earned regardless of when collectible. Funds requiring accrual of collectible operating income earned regardless of when collectible normally account for operating income as it is billed throughout the year and will continue to accrue income at the time and to the extent they now do.
Where such manuals and memoranda have not been issued, general procedures described in SAM Chapter 7000 to 8900 will be followed, as well as Journal Entries described in SAM Sections 10500 to 10536 to the extent that they are applicable, modified for the use of some different General Ledger accounts as prescribed in SAM Chapter 8200 will not be used if the fund is of a type requiring accrual of collectible operating income earned regardless of when collectible.