Question

The major issue relating to agency funds is when they should be established. 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 governmental 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 improvemenls are to be paid forentirely by local residents. To finance the improvements, the city issued 10-year notes on behalf of the residents. lt 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-enforcement 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 state 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 towns 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.

Answer 1

Answer:  

On the off chance that 1 government should account or the cost engaged with the exchange as the water and sewer lines are essential comforts as well as these legislature should utilize its assets instead of issuing notes on the names of inhabitants.

It is the duty of the legislature to accommodate fundamental luxuries not the person

As the store is experiencing state, state government should check the best possible procedures are pursued and the necessities are met.

Office reserves are engaged with this exchange.

For this situation the assets are given by the government, however it is the duty of state to screen and record for the assets being used.

As duty is an open cash so government is in charge of the dispensing of the reserve and responsible for the cash expensed.