What type of activities do Enterprise Funds serve?

Enterprise Funds are designed to account for business-type activities within a government. These activities operate similarly to private sector businesses; they generate their own revenue through user fees and charges for services. Examples of such activities often include utilities (like water and sewer services), public transportation, and airports.

The use of Enterprise Funds ensures that the costs related to these services are covered by those who use them, rather than relying on general tax revenues. This self-sustaining model distinguishes Enterprise Funds from other types of funds, allowing for a clear separation of business-type activities from governmental activities, which typically rely on taxes and grants. By categorizing these activities under business-type, it helps ensure proper financial reporting and accountability within government entities.