D ENTERPRISE FUNDS ARE A TYPE OF PROPRIETARY FUND USED BY GOVERNMENTS TO ACCOUNT FOR OPERATIONS THAT ARE FINANCED AND OPERATED IN A MANNER SIMILAR TO PRIVATE BUSINESS ENTERPRISES. THESE INCLUDE ACTIVITIES LIKE WATER, SEWER, AND ELECTRICITY UTILITIES, WHERE USER FEES OR CHARGES FOR SERVICES ARE THE PRIMARY REVENUE SOURCE. IN THIS CASE, A WATER UTILITY CHARGING USERS IS BEST ACCOUNTED FOR USING AN ENTERPRISE FUND. RELEVANT REFERENCE: GASB CODIFICATION SECTION 1300 – FUND TYPES GASB STATEMENT NO. 34 – FUND CLASSIFICATION GFOA BEST PRACTICES – UTILITY AND ENTERPRISE FUND ACCOUNTING ANSWER : D. ENTERPRISE FUND
