Lesson: Governmental Fund Structure

In this lesson, Nick Palazzolo, CPA, uncovers the intricacies of the governmental fund structure, starting with an in-depth look at the general fund — the primary operating fund for most government revenues. He clarifies the difference between operational funds in the governmental context versus business-type activities, helping to distinguish between governmental, proprietary, and fiduciary funds based on their characteristics and purposes. With a clear, step-by-step approach, Nick provides insight into how to categorize these funds in practice, focusing on how each serves distinct fiscal and operational needs within government accounting.