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1) An internal service fund is required whenever an activity is funded by fees or charges
from other government departments.
2) Unless use of an agency fund is mandated by law, by GASB standards, or by
decision of the governing board of a government, an agency relationship may be
accounted for within governmental and/or proprietary funds.
3) Government-wide statements are prepared using the accrual basis; therefore,
enterprise fund-basis statements need to be adjusted from their original modified
accrual basis.
4) If a government has no potential liability for payment of special assessment debt in
the event of default by the property owners, then an agency fund may be used to
account for the proceeds of the special assessment.
5) According to the rules for accounting for colleges and universities under the
jurisdiction of the FASB, revenues and expenses are reported atnet amounts and gains
and losses are reported at gross amounts.
6) The Statement of Changes in Net Position of a federal agency should articulate with
net position on the agencys Balance Sheet.
7) Net assets represented by supplies and prepaid expenses are classified in
governmental funds as Nonspendable Fund balance.
8) The
9) Proprietary funds use the economic resources measurement focus and modified
accrual basis of accounting.
