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.