CITY OF DESOTO, TEXAS
FUND STRUCTURE
All funds of the City of DeSoto are subject to appropriation and are classified into six “fund types” used by local governments. Four of the six fund types are governmental funds . These are used by the City of DeSoto to account for governmental type activities. These are the general fund, the special revenue funds, the debt service funds and the capital project funds. Governmental funds use the “flow of current financial resources” measurement focus and the “modified accrual” basis of accounting. 1. General Fund: This is the chief operating fund of the City. Accounts for all financial resources not required to be accounted for in another fund type. 2. Special Revenue Funds: Revenue sources are designated for a specific purpose. 3. Debt Service Funds: These funds are designated to meet current and future debt service requirements on general government debt. 4. Capital Project Funds: These funds provide funding for capital acquisition and construction projects. Two of the fund types are proprietary funds . These are used by the City of DeSoto to account for “business type” activities. Business type activities receive a significant portion of their funding through user charges. Proprietary funds use the “flow of economic resources” measurement focus and the “full accrual” basis of accounting. 5. EnterpriseFunds: These funds account for operations that are financed and operated in a manner similar to private business enterprises. The costs of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges. 6. Internal Service Fund: Allocation and recovery of costs of services provided to other governments. The City of DeSoto currently has no funds of this type. The City includes all of its governmental and enterprise funds in the annual audited financial statements.
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