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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Loan Programs
Social or Economic Objective

Programs created by the Legislature or management may be considered social or economic. Social programs are often seen as serving traditional functions of government (such as providing financial support for basic services like public safety and education). Economic programs are often used to create or improve a specific or general economic environment.

Social programs do not necessarily match the level of services provided to the amount of support provided. Governmental funds (such as the general fund [fund type 01] or special revenue funds [fund type 02]) are typically used for reporting these programs. Economic programs, however, usually attempt to recover costs in an exchange relationship between the governmental entity and the “consumer.” They are considered business-type activities and are appropriately reported in the enterprise fund (fund type 05).

A clear distinction between the two may be difficult to establish. For example, some economic programs may not be entirely self-supporting and are partially funded by appropriations, or the loan program may be only one department among many. As a result, other factors may need to be considered in deciding the proper fund type for financial reporting.

Glenn Hegar
Texas Comptroller of Public Accounts
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