So how does a fund get to be a major fund? It is basically an arithmetical calculation based on the size of the fund, but there are some exceptions. First, the general fund (as the main operating fund of the government) is always considered to be a major fund. Other funds are considered major funds if they meet both of the following criteria:

• Total assets, liabilities, revenues, or expenditures/expenses of the fund are at least 10% of the corresponding total (assets, liabilities, revenues, or expenditures/expenses) for all funds in that category (i.e., either governmental or proprietary).
• Total assets, liabilities, revenues, or expenditures/expenses of the fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.

For example, say that total assets of a special revenue fund are $125. Total assets for all governmental funds are $1,000. Total assets for all enterprise funds are $250. This special revenue fund is a major fund. Its assets are more than 10% of the total assets for all governmental funds ($125 divided by $1,000, or 12.5%). Its assets are more than 5% of the total assets of all governmental and enterprise funds combined ($125 divided by $1,000 + $250, or 10%).
Notice that the fund type of enterprise funds is used in this calculation and not the total for all proprietary funds, which means that the totals for internal service funds are not considered in the calculation. In addition, the government may choose to report any fund that it believes to be particularly important or
of interest to readers as a major fund even if it does not meet the monetary criteria discussed above.
The following sections describe the financial statements presented for each of these fund types.

Taken From : Governmental Accounting Made Easy

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