Lesson: Governmental Revenues - Special Revenue Fund

Instructor: Nick Palazzolo

In this lesson, join Nick Palazzolo, CPA, as he demystifies the workings of the Special Revenue Fund used by government entities. He maps out the journey of funds that are legally earmarked for particular uses not covered by other funds, such as debt service or capital projects. With relatable examples like Red Light Camera Funds and Alcohol Tax Funds, Nick clarifies how these revenues are tightly coupled with their specific purposes. He wraps up with a reminder of the legal requirements that safeguard the use of Special Revenue Funds, ensuring they are utilized as intended and can't be diverted for unauthorized expenses.

Updated: Oct. 20, 2021 Create an account

"Examprep.ai helped me pass all 4 CPA exams on the first try. I highly recommend. I especially like the feedback and ratings the software provides so I know where to focus my time."

Daniel H., CPA

"I can't recommend ExamPrep.ai enough. Nick's lessons turned concepts I struggled with into strengths. I was able to pass FAR right before other exams expired!"

Andrew K, CPA

"I just want to say thank you for the great lesson videos. I couldn't stay awake through lectures of another course. After watching all your FAR lessons I was finally able to pass!"

Alyssa M., CPA Candidate

Recommended Lessons

Governmental Assets, Liabilities, Revenues & Expenses Overview and Objectives

Governmental Fund Structure

Governmental Revenues - General Fund

Governmental Expenditures - General Fund

Governmental Revenues - Special Revenue Fund

Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

Cite this lesson

Link to this page

[[ citeExample ]]

Copy to clipboard

Copy URL to clipboard

Copy HTML to clipboard

Right now, the Special Revenue Fund, as we mentioned, manages revenues and expenditures that are earmarked specifically for special purposes, purposes not included in other funds such as debt service or capital projects. These revenues are legally restricted to a specific revenue source and a specific use. Examples can be Red Light Camera Funds, so anytime you run a red light, they pay for road repair; Alcohol Tax Fund, maybe we charge an extra 3% on any alcohol purchases and this goes to improve infrastructure; and Speeding Ticket Fund, so maybe any speeding tickets incurred during this period are going to fund awareness of drunk driving.

Remember that the usage of these monies are legally restricted and so must be used for the intended purpose, right? So in theory, the governor can't take the money from the and just blow it on a bunch of expensive fancy meals. Maybe that happens. I'm not one to judge, but these are legally restricted.

To unlock this lesson, sign up for a free account.

Get more from this lesson

Create an account 7-day free trial. No credit card required.

Governmental Accounting: Part 1

Module: 3 Concepts, 29 Lessons

Governmental Assets, Liabilities, Revenues & Expenses Overview and Objectives

1:32

Governmental Fund Structure

1:12

Governmental Revenues - General Fund

1:31

Governmental Expenditures - General Fund