Can an enterprise fund be used for activities that are partially funded through user fees?

An enterprise fund is designed to account for operations that are financed primarily through user fees, making it a self-sustaining mechanism for funding specific services or activities. The utilization of an enterprise fund for activities partially funded through user fees reflects the nature of such funds, which allows for a blend of revenue sources while still aiming to cover operating costs primarily through those fees.

For an enterprise fund to function effectively, the fees charged must ideally relate closely to the costs of providing the service. However, the structure accommodates a scenario where additional funding sources, such as government appropriations or grants, can complement the user fees without disqualifying the activity from being classified under an enterprise fund. This flexibility ensures that organizations can maintain services even when user fees alone may not suffice, thus expanding the viability of services offered to the community.

In summary, the ability of an enterprise fund to operate with partial funding from user fees is inherently aligned with its purpose, allowing for multiple sources of revenue while primarily relying on user fees to sustain operations.