Which funds are governmental funds?

• A. General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds
• B. General Fund, enterprise funds, internal service funds, and investment trust funds
• C. Fiduciary funds and enterprise funds
• D. Internal service funds and investment trust funds

Answer: (A)

In GASB reporting, governmental funds are used to account for the basic governmental activities and focus on current financial resources, using the modified accrual basis. The fund types that fall into governmental funds are the General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. These five types together represent the core set of governmental funds.

The other fund types—enterprise funds and internal service funds—are proprietary funds, which operate more like private-sector businesses and use full accrual accounting. Fiduciary funds, including investment trust funds, are not governmental funds either; they hold and manage resources for others and are reported separately from governmental fund statements.