The City of Great Falls, Montana, reports four Internal Service Funds: a Central Communications Fund, a Health and Benefit Fund, an Information Technology Fund, and a Central Garage Fund.

Required
1. Discuss how these Internal Service Funds will be reported in
(a) The fund financial statements
(b) The combining financial statements.
2. Identify the financial statements that would be required for the Internal Service Funds.
3. Describe the classifications of net position that would potentially be reported in each fund.