Page 69 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Budget 101 Overview

FUND TYPES AND STRUCTURE

Without going into too much technical jargon, funds are set up like separate companies which
must operate under the parameters that were set up when the fund was created.

Funds are unique to governmental type agencies. In the corporate world, “ Funds” do not exist.
The company receives revenues and writes checks to pay for their expenses and reports them
for the company. Governments handle this process a little differently.

The Town of Westlake, along with other Municipalities throughout the State of Texas, record and
report all financial transactions using standard set by the Governmental Accounting Standards
Board ( GASB) and General Accepted Accounting Principles ( GAAP).

Accordingly, these standards require all Municipalities to use individual funds that must be
categorized into one of 11 Funds Types.

ALL FUND TYPES

Governmental Proprietrary Fiduciary

Funds ( 11) Funds ( 5) Funds ( 0)

General Fund Internal Service Funds Pension Trust Funds
1 Fund 3 Funds do not have

Special Revenue Funds Enterprise Funds Investment Trust Funds
5 Funds 2 Funds do not have

Debt Service Fund Private Purpose Trust Funds
2 Funds do not have

Capital Project Funds Agency Funds
2 Funds do not have

Academic Funds
1 Fund

Permanent Funds
do not have

The Town of Westlake has 16 funds with specific purposes which are defined by federal, state, or
local laws. They include the General Fund which is used for general city operations, the Utility
Fund which is used to support the City’ s water, sewer, drainage, and refuse service, and a
multitude of Special Revenue and Capital Project Funds.

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