Fiscal Policies Establishing Funds
The establishment of funds, which are part of the statewide chart of accounts (COA), is defined by Idaho Code, 67-1021(3) as follows: “For the purpose of maintaining a uniform statewide accounting and reporting system, the state controller shall define and classify the various funds, accounts, grants and other financial structures."
As stated in Governmental Accounting, Auditing and Reporting, "Governmental units should establish and maintain those funds required by law and sound financial administration. Only the minimum number of funds consistent with legal and operating requirements should be established however, since unnecessary funds result in inflexibility, undue complexity, and inefficient financial administration."
Funds are established as required by a variety of sources - legislation, court order, or from an agency due to a change in accounting requirements. Agencies must complete the COA Fund Maintenance form on the State of Idaho Service Portal for the Office of the State Controller, to establish a new fund.
Complete the 'COA Fund Maintenance Form' on the State of Idaho Service Portal. The request will be reviewed with the agency to determine if other possible structures, e.g., posting level fund or grant, might be used rather than a new fund.
If the alternative structure will not suffice, the characteristics of the new fund will be analyzed in order to determine the appropriate fund type and interest earnings distribution.
Once the fund type and fund have been determined and established in the accounting system, SCO will notify: