The City of Hollywood follows Generally Accepted Accounting Principles (GAAP) in preparing its budget and accounting for its operations. These principles require that the City use separate accounting entities called funds to keep track of the resources used for different purposes. There are three different types of funds: Governmental Funds, Enterprise or Proprietary Funds, and Fiduciary Funds.
Governmental Funds are individual funds through which most governmental functions are typically financed, including the General Fund, Debt Service Fund, General Capital Projects Fund and the Gas Tax Fund.
Enterprise Funds are used to account for ongoing activities that are similar to those often found in the private sector, including the Water & Sewer Utility Fund, Stormwater Utility Fund, Golf Enterprise Fund, Sanitation Enterprise Fund and the Parking Enterprise Fund.
Fiduciary Funds cover costs & services which are normally eliminated in the consolidation process, because the charges are duplicated in other funds. This group includes the Central Service fund and the Insurance Fund.
Several Other Funds are included in the City's Comprehensive Annual Financial Report (CAFR) but are not specifically included as part of the City's operating budget. These include the Community Redevelopment Agency (CRA) District Funds, which are legally separate from the City and have their own operating budgets; the Emergency Disaster Fund, which reflects extraordinary activities; and Special Revenue Funds, which relate primarily to revenues and expenditures associated with (and restricted to use for) federal, state and local government grant programs.