Enterprise funds do not generally receive financial support from the General Fund, so Denver Golf must generate sufficient revenue to cover expenditures. Revenue comes primarily from fees paid by golfers who use the golf facilities. TABLE OF CONTENTS
Full Answer
Which funds should be used for activities financed by user fees?
Activities financed almost exclusively by user fees (utilities) are reported in the general or special revenue funds, when an enterprise fund should be used Enterprise funds are incorrectly used for activities when the only revenue sources are taxes, grants and transfers (these activities should be reported in governmental funds)
What is the difference between government funds and enterprise funds?
Government funds use the modified accrual basis of accounting. Enterprise funds use the accrual basis of accounting. Measurement Focus Measurement focus determines what transactions will be re-ported in the various funds’ operating statement. The differ-ences in the measurement focus of governmental vs. enterprise funds is highlighted in Exhibit 2.
Are your local governments reporting enterprise activities in the correct fund type?
We have observed that local governments sometimes are not reporting enterprise activities in the correct fund type, and noted the following areas of concern: Activities financed almost exclusively by user fees (utilities) are reported in the general or special revenue funds, when an enterprise fund should be used
What is an enterprise fund?
An enterprise fund is a fund that may be used to report any activity for which a fee is charged to external users for goods or services. We have observed that local governments sometimes are not reporting enterprise activities in the correct fund type, and noted the following areas of concern:
Is a golf course an enterprise fund?
Golf Enterprise Fund is the City Fund, separate from the City's General Fund, where all golf course related revenues are deposited and from which all golf course related expenses are paid.
What is the purpose of an enterprise fund?
An enterprise fund identifies the total direct and indirect costs to provide the service and the sources and amounts of revenues that support the service for which a fee is charged in exchange for service.
Do golf courses turn a profit?
Profitable golf courses are generally selling for six to eight times EBITDA, while courses that aren't profitable tend to sell at 0.8 to 1.4 times revenue.
What makes a golf course profitable?
Green fee play, memberships, food & beverage, and pro shop sales are the four main levers that can lead to an increase in revenue at a golf course. Of course, within each revenue stream, many specific opportunities exist for golf courses to produce more revenue.
What is the difference between an enterprise fund and an internal service fund?
It is important to note that the funds customers are internal customers. Enterprise funds: The Enterprise fund will be set up to account for the acquisition and operation of governmental services. Unlike Internal service funds, customer of enterprise funds are generally external customers.
What is an example of a General Fund?
Examples are the purchase of supplies and meeting operating expenditures. An example of a specialized fund, on the other hand, is the capital projects fund that accounts for financial resources used for the acquisition or construction of major capital facilities.
What is the profit margin on golf clubs?
After all expenses, the best golf retailers rarely profit more than 2-3% of the total cost of a club. However, as a whole, we can say that around 33.33% of the cost of a golf club is the markup from the retailer.
Why are golf courses so expensive?
Why is golf so expensive? Golf is costly due to the high cost of quality golf clubs, accessories, course fees, memberships, and the amount of golf that is played. Golf clubs are made from quality materials meant to last a lifetime, and courses often require membership, the cost of which reflects the club's exclusivity.
How much money do golf courses make?
Golf Course Owners make between $30,000 to several hundred thousand dollars per year. However, golf course owners sometimes will lose money if the course has a bad year. Overall, the golf course industry is very volatile, and there is no guarantee that money will be made.
How can I make my golf course successful?
Offer Online Tee Time Booking. Online tee time booking is more important than ever. ... Look at Third-Party Booking Outlets. ... Offer Varying Golf Course Membership Options. ... Add a Loyalty Program. ... Use POS Reporting and Analytics. ... Automate Ordering and Inventory. ... Host Golf Events and Contests. ... Add Time-Based Discounts.More items...•
How much money does the golf course make in GTA 5?
Description. The golf club is located at the GWC and Golfing Society in Richman, and is the most expensive property that any of the three characters can buy in the game and in the entire series, costing $150,000,000 and generating a weekly income of $264,500 (also the most profitable).
Is a golf club a business?
Many Golf Clubs, whether members clubs or proprietary clubs, will be constituted under these models and will operate as businesses subject to Corporation Tax, VAT, PAYE and business rates as appropriate to their operations. A limited company is a form of business which is legally separate from its owners and directors.
Why are enterprise funds incorrectly used?
Enterprise funds are incorrectly used for activities when the only revenue sources are taxes, grants and transfers (these activities should be reported in governmental funds)
What is enterprise fund?
An enterprise fund is a fund that may be used to report any activity for which a fee is charged to external users for goods or services.
What is pricing policy?
There is a pricing policy that fees and charges be set to recover cost, including capital costs (depreciation and debt service) These criteria should be applied in the context of the activity’s principal revenue source. The term activity generally refers to programs and services. This term is not synonymous with “fund.”.
What is a good indicator of the activity's significance?
A good indicator of the activity’s significance might be comparing pledged revenues or fees and charges to total revenue. For example, consider a county auditor’s office that charges fees to provide a payroll service to various taxing districts.
Is an activity a fund?
The term activity generally refers to programs and services. This term is not synonymous with “fund.”. As a practical consequence, if an activity reported as a separate fund meets any of the three criteria, it should be an enterprise fund.
What is an enterprise fund?
An enterprise fund is considered the best practice to promote and maintain long-term financial sustainability for water, sewer and stormwater activities. An enterprise fund is a separate accounting and financial reporting mechanism for which revenues and expenditures are segregated into a fund with financial statements separate from all other governmental activities. An enterprise fund identifies the total direct and indirect costs to provide the service and the sources and amounts of revenues that support the service for which a fee is charged in exchange for service. Direct costs generally consist of personnel services, expenses and capital outlay, which are budgeted and accounted for in the enterprise fund. Indirect costs are expenditures budgeted and accounted for in the general fund on behalf of the enterprise fund, which are allocated to the enterprise fund for funding. Examples of indirect costs are central service department costs (accounting, treasury, collections, law and the like), insurances and fringe benefits that are not budgeted and accounted for in the enterprise fund.
What is the second step in establishing an enterprise fund?
The second step in establishing an enterprise fund is to develop and have the appropriating body approve a budget. The budget is subject to the appropriation process.