Page 78 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Funds and Departments

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 these fund 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 Town’s water, sewer, drainage, and refuse service, and a multitude of Special
Revenue and Capital Project Funds.

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