What types of items are categorized as other financing sources?

Other financing sources in governmental accounting refer to the inflows of resources that are not classified as revenues but still contribute to the financing of a government’s operational and capital activities. Transfers in from other funds and proceeds of long-term borrowing are classified as other financing sources because they represent funding that supports expenditures without being directly tied to operations.

Transfers in from other funds highlight inter-fund transactions that provide resources for specific purposes or projects, ensuring that funds allocated for certain services or projects are available from different segments of government finances. Proceeds of long-term borrowing reflect funds raised through debt issuance that will be used to support government operations, capital projects, or meet obligations, and similar to transfers, they are not generated from direct operational revenues such as taxes or fees.

In contrast, grants received from federal agencies are typically recognized as intergovernmental revenues and are included in revenue calculations instead of being classified as other financing sources. Utility income and property sales represent revenues generated from operations and asset liquidation, not financial activities that serve to finance other activities. Equity investments by the government pertain to ownership stakes in businesses or projects, and while they might impact the financial statements, they do not fall under the category of other financing sources for government accounting purposes.