Accounting Assignment
Nita Campbell
ac_460_week_5_assignment.docx· Week 5 Assignment
Government and Not-For-Profit Accounting
Fiduciary and Permanent Funds
The major issue relating to agency funds is when they should be established.
Write a 1000 word, APA style paper where you consider each of the following situations.
Indicate whether (and why or why not) you think that the government should account for the transactions and resources in an agency fund, a government fund, or some other type of fiduciary fund. Not all the situations have been explicitly addressed in the text. Therefore, you may have to generalize from those that have been discussed.
1. A city extended sewer and water lines to a recently annexed community. Per agreement with the community, the improvements are to be paid for entirely by local residents. To finance the improvements, the icty issued 10-year notes on behalf of the residents. It assessed the residents for the amount of the debt, plus interest. The city guaranteed the notes and agreed to collect the assessments from the residents and make appropriate payments to the note holders. However, the city’s role is primarily one of an intermediary. The residents, not the city, are expected to service the debt.
2. A state receives a federal law-enforment grant intended to assist local communities in hiring additional police officers. The federal granting agency selects the cities and counties that are to receive the awards and determines the amounts they are to receive. The federal government, not the state, is responsible for monitoring grant compliance. The state’s only responsibility is to write the checks to the cities and counties.
3. A state receives a federal educational grant intended to assist local school districts in hiring additional teachers. The federal granting agency establishes the criteria that the stat is to use in determining the school districts to receive the awards and the amounts they are to receive. The district has no discretion in selecting recipients other than to apply the specified criteria.
4. A county collects sales taxes that it distributes among itself and the town within its jurisdiction. The taxes are levied by the county and are divided among the recipient governments in accordance with a formula set forth in the legislation that authorized the tax.
·
Week 5 Assignment
Government and Not
-
For
-
Profit Accounting
Fiduciary and Permanent Funds
The major issue relat
ing to agency funds is when they should
be established.
Write a 1000 word, APA style paper where you consider
each of the following situations.
Indicate whether (and why or why not) you think that the
government should account for the transactions and reso
urces
in an agency fund, a government fund, or some other type of
fiduciary fund. Not all the situations have been explicitly
addressed in the text. Therefore, you may have to generalize
from those that have been discussed.
1.
A city extended sewer and water
lines to a recently annexed
community. Per agreement with the community, the
improvements are to be paid for entirely by local residents. To
finance the improvements, the icty issued 10
-
year notes on
behalf of the residents. It assessed the residents for t
he
amount of the debt, plus interest. The city guaranteed the
notes and agreed to collect the assessments from the residents
and make appropriate payments to the note holders. However,
the city’s role is primarily one of an intermediary. The
residents, not
the city, are expected to service the debt.
2.
A state receives a federal law
-
enforment grant intended to
assist local communities in hiring additional police officers. The
federal granting agency selects the cities and counties that are
to receive the award
s and determines the amounts they are to
receive. The federal government, not the state, is responsible
for monitoring grant compliance. The state’s only responsibility
is to write the checks to the cities and counties.
Week 5 Assignment
Government and Not-For-Profit Accounting
Fiduciary and Permanent Funds
The major issue relating to agency funds is when they should
be established.
Write a 1000 word, APA style paper where you consider
each of the following situations.
Indicate whether (and why or why not) you think that the
government should account for the transactions and resources
in an agency fund, a government fund, or some other type of
fiduciary fund. Not all the situations have been explicitly
addressed in the text. Therefore, you may have to generalize
from those that have been discussed.
1. A city extended sewer and water lines to a recently annexed
community. Per agreement with the community, the
improvements are to be paid for entirely by local residents. To
finance the improvements, the icty issued 10-year notes on
behalf of the residents. It assessed the residents for the
amount of the debt, plus interest. The city guaranteed the
notes and agreed to collect the assessments from the residents
and make appropriate payments to the note holders. However,
the city’s role is primarily one of an intermediary. The
residents, not the city, are expected to service the debt.
2. A state receives a federal law-enforment grant intended to
assist local communities in hiring additional police officers. The
federal granting agency selects the cities and counties that are
to receive the awards and determines the amounts they are to
receive. The federal government, not the state, is responsible
for monitoring grant compliance. The state’s only responsibility
is to write the checks to the cities and counties.
