Special revenue fund,
Definition of Special revenue fund:
In the periodic budget process that every municipality goes through, there are negotiations and battles over money — where does it come from, who gets it, and how much they get. There are four basic buckets of budget money to be allocated: general fund, capital fund, "rainy day" fund and special revenue funds. The general fund pays for usual and ongoing town expenses; the capital fund is earmarked for large projects, and the rainy day fund is the emergency account for unexpected expenditures. A special revenue fund is established to finance and operate dedicated smaller-scale projects. Parks, libraries, beaches and town plazas may all be financed by special revenue funds. These projects will have their own set of books for recording cash inflows and outflows.
An account with an insignificant amount of profit reported on a financial statement.
A special revenue fund is an account established by a government to collect money that must be used for a specific project. Special revenue funds provide an extra level of accountability and transparency to taxpayers that their tax dollars will go toward an intended purpose.
Meaning of Special revenue fund & Special revenue fund Definition