What is a Special Revenue Fund?

A special revenue fund is a fund used within a government entity to record the proceeds from certain revenue sources for which fund usage is restricted. The use of a special revenue fund makes it easier to track cash inflows and outflows related to special-purpose activities. They are especially useful for maintaining the accountability for specially-allocated funds. A government may be required to report the cash inflows and outflows associated with a special revenue fund.

If a significant amount of the cash inflows for a special revenue fund are not expected to be derived from a committed revenue source, the reporting entity should stop reporting a special revenue fund. Instead, it should report the remaining proceeds for the fund in the entity’s general fund.

Examples of Special Revenue Funds

Here are several examples of special revenue funds:

Gasoline tax fund. Used to account for revenues from fuel taxes, which are legally required to be spent on road maintenance and transportation infrastructure.
Park and recreation fund. Accounts for revenue from park entrance fees, recreational program fees, or dedicated taxes used to maintain parks and recreational facilities.
Library fund. Used for revenues from library taxes, grants, or donations that fund public library operations and programs.
Street maintenance fund. Accounts for money collected from street-related fees or taxes that fund the repair and maintenance of city streets.
Tourism development fund. Tracks revenue from hotel occupancy taxes, which are used to promote tourism and support convention centers.
Public safety fund. Includes revenue from special taxes, grants, or fees that support police, fire departments, or emergency medical services.
Community development fund. Manages federal or state grants (such as Community Development Block Grants) used for affordable housing, economic development, or urban renewal projects.
School lunch program fund. Accounts for revenues from federal or state aid and meal sales that are dedicated to school nutrition programs.
911 emergency services fund. Tracks funds from 911 surcharges on phone bills, which are used to maintain and upgrade emergency response systems.
Drug enforcement fund. Includes revenue from seized assets or fines related to drug-related crimes, used to support law enforcement efforts against drug trafficking.