Understanding fund accounting at LCC

As part of the strategic plan’s Resource Management and Fiscal Responsibility focus area, the college has launched the Increased Financial Awareness Team. This group’s goal is to increase the college community’s understanding of LCC budgeting and accounting.

In this first of a series of articles, we cover the concept of “funds,” which you might find mentioned throughout the college’s financial statements.

A fund is a fiscal and accounting entity that exists to carry on specific activities or attain certain objectives, in accordance with special regulations, restrictions or limitations.

Fund accounting is a method of accounting used by governmental entities, like LCC, that separates and tracks financial transactions into specific funds based on Generally Accepted Accounting Principles.

The college has established the following fund types, which categorize fund sources that have similar characteristics:

  • Auxiliary Funds
  • Designated Funds
  • General Funds
  • Plant Funds
  • Restricted Funds

For more information regarding fund accounting and these five fund types, please visit the 5Star Knowledge Base article.

The Increased Financial Awareness Team wants to hear from you and what you need in order to better understand the college’s finances. Please reach out to Kevin Bubb at bubbk@lcc.edu if you have questions or ideas for items you’d like the team to address, or if you’d like to join the team.