general fund

Definition

In public sector accounting, the primary or catchall fund of a government, government agency, or nonprofit entity such as a university. It is similar to a firm's general ledger account, and records all assets and liabilities of the entity that are not assigned to a special purpose fund. It provides the resources necessary to sustain the day-to-day activities and thus pays for all administrative and operating expenses. When governments or administrators talk about 'balancing the budget' they typically mean balancing the budget for their general fund.

Use general fund in a sentence

They set up a general fund in the public sector and I was glad to see how it would evolve and what they did next.

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They reviewed the general fund and were able to predict that they would have enough money to proceed with the next round of development.

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