7400     FUNDS OF THE STATE-GENERAL 
(New 09/02)

In governmental finance and accounting, funds are classified by type. The State's fund structure includes both a legal/budgetary basis and a generally accepted accounting principles (GAAP) basis classification.  The fund classification structure is shown below:

Legal/Budgetary basis	GAAP Basis
Governmental Cost Fund	Governmental Fund
Nongovernmental Cost Fund	Proprietary Fund Fiduciary Fund

The classification assigned to each fund is located in the Uniform Codes Manual (UCM) and the Manual of State Funds.  Both resources are maintained by the Department of Finance (DOF), Fiscal Systems and Consulting Unit (FSCU) and can be found on the DOF home page at http://www.dof.ca.gov/ (Information for Government Agencies).

This structure affects a fund's basis of accounting, general ledger accounts, and year-end reports.  Agencies should  carefully review the general ledger account descriptions, use, and prohibitions contained in SAM Sections 7620-7680 and 10401-10475.