The second set of fund financial statements included in a government’s basic financial statements are the proprietary fund financial statements. Since the proprietary funds report activities using the same accounting basis and measurement focus as is used in the government-wide financial statements, their presentation resembles that of the government-wide statements much more than the governmental fund statements. Remember from Chapter 3 that there are two types of proprietary funds— enterprise funds and internal service funds—and it is these funds that are reported in the proprietary fund financial statements.
Proprietary funds are required to present three financial statements.

1. Statement of net assets
2. Statement of revenues, expenses, and changes in fund net assets
3. Statement of cash flows
Each of these statements will have individual columns for each of the major enterprise funds of the government. A single column is used to report all of the enterprise funds that are nonmajor. A total column for all enterprise funds (major and nonmajor) is also required. In addition, each of these statements will have a single column to report all of the government’s internal service funds.

Taken From : Governmental Accounting Made Easy

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