A fund is a separate and distinct fiscal/accounting object containing a complete self-balancing set of accounts used to segregate cash and other financial resources, together with associated liabilities, residual equities, and related changes.

Amounts are separated by fund so that certain activities can be performed or objectives achieved in accordance with special regulations, restrictions, or limitations. Organizations may establish funds at a lower level than those required for external reporting. Fund groups must then be used.

Funds are classified into fund types, which have distinctive accounting and reporting requirements.