First of all the General Fund is ALWAYS considered a major fund. Other funds must pass a two part test to qualify as a major fund.
1. Total assets, liabilities, revenues, or expenditures of the individual governmental fund must constitute 10% of the total for the "governmental funds" category, AND
2. total assets, liabilities, revenues, or expenditures of the individual governmental fund must be 5% of the total of the "governmental" and "enterprise" categories, combined.
Or, the loophole, a government can simply designate any fund major if reporting that fund separately would be useful.
In addition to the 10% and 5% tests described by Michael, an enterprise fund is distinguished as generating income from the general public through sales and service charges, to assist in supporting the government's ongoing activities.
First of all the General Fund is ALWAYS considered a major fund. Other funds must pass a two part test to qualify as a major fund.
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2. total assets, liabilities, revenues, or expenditures of the individual governmental fund must be 5% of the total of the "governmental" and "enterprise" categories, combined.
Or, the loophole, a government can simply designate any fund major if reporting that fund separately would be useful.
In addition to the 10% and 5% tests described by Michael, an enterprise fund is distinguished as generating income from the general public through sales and service charges, to assist in supporting the government's ongoing activities.
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