The Inventory of Funds presents a synopsis of each of the funds operated by the State of Minnesota, incorporating information on each fund’s statutory authority, date of origin, fund type, administering agency, purpose, key revenue and expenditure components, and recent financial activities. The report provides an inventory of the state’s complex fund structure. The financial information of all the operating funds is on a budgetary basis. The financial information of all the non-operating funds is on a cash
flow basis.

Fund Reports

Funds and Accounts Definitions

Governmental accounting systems are organized and operated on a fund basis. A und is the basic unit used to segregate resources and expenditures in the state treasury. A fund is a separate accounting entity with a self-balancing set of accounts used to record
the financial transactions and balances of that entity. The general purpose of a fund is to segregate resources and restrict expenditures to clearly identifiable purposes. Funds include a number of specifically defined “accounts” with related restricted expenditures. In each case, revenue is dedicated or appropriated, spending is restricted and any balance remains in the account.

Fund Origin

Separate funds have been created for different reasons. These are:

Constitutional - The state’s constitution establishes separate funds. Several transportation funds, the Permanent School Fund, the Permanent University Fund, and the Environment and Natural Resources Trust Fund are examples of
constitutionally established funds.

Federal Requirements - There may be requirements under federal law to segregate resources from the federal government into a separate fund.

Policy Reasons - There may be policy reasons to establish a separate fund. A separate fund may enhance the Legislature’s ability to maintain proper oversight. A second reason may be to address the concerns of interest groups affected by a
related tax or fee increase. A third reason may be that the new spending activity is significantly different from general fund spending, so a new fund is required.