It unquestionably makes sense for governments to manage certain government-wide services, such as vehicle repair and computer services, in a separate organizational unit, and to control demand by beneficiary units by charging them usage fees. In the government-wide statements, internal service fund assets and liabilities are classified as governmental activities and expenses, most of which are typically accounted for in the general fund, are charged back to the beneficiary units. Moreover, the resources of internal service funds are seldom legally restricted. Would it not make sense for purposes of external (albeit not internal) reporting to do away with internal service funds entirely, and to report all assets, liabilities, and expenses in the funds used to account for the beneficiary units?

  • CreatedAugust 13, 2014
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