Page 11 - Pantego FY22 Operating Budget

FINANCIAL STRUCTURE

The financial structure of the budget is organized by funds. A fund is generally defined as a
fiscal and accounting entity which has its own self-balancing set of accounts for recording cash
and other financial resources, as well as any liabilities or residual equities or balances.
Normally, funds are segregated for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions or limitations. However,
when appropriate, funds are comprised of departments. The following table outlines the fund
structure for the Town of Pantego.

BUDGETED FUNDS

The Town adopts an annual appropriated budget for the following three (3) types of funds:
Governmental, Proprietary and Fiduciary.

1. Governmental funds are accounted for on a modified accrual basis of accounting. The
specific funds which make up the Governmental Fund type are: the General Fund, Debt
Service Fund, Special Revenue Funds and Capital Projects Funds. Each of these funds
operates separately and independently from one another; therefore, they are budgeted
separately and include separate financial statements. Each fund represents a specific
function and maintains individual objectives.

Governmental Funds

General Fund Debt Service Fund Special Revenue Funds Capital Projects Funds

Shamburger Fund Equipment Replacement Fund

Court Security Fund 2019 C/O Drainage Fund

Court Technology Fund Coronavirus (CLFRF) Fund
Street Improvement Fund

2. Proprietary funds are used to account for “business-type” activities that are financed by
the revenues generated from these activities. The Town of Pantego has one (1)
proprietary fund: the Water and Sewer enterprise fund. Proprietary funds are accounted
for on the full accrual basis of accounting. The Water and Sewer enterprise fund is the
only proprietary fund of the Town and receives all revenue through monthly customer
utility billings. Expenses of the Water and Sewer fund include all activities necessary to
provide water and wastewater service to the citizens of Pantego. The Water and Sewer
Fund is divided into three (3) separate funds:

o Water and Sewer Operating Fund – This fund is the general operating fund for
the Water and Sewer Fund. All operating revenues for the sale of water and
sewer charges are recognized in this fund. Payments are made from this fund
for the general operation and maintenance of the Town’s water and sewer
systems. This fund is divided into two (2) departments: Water Department and
Sewer Department.

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