If a state or local government acts as an intermediary between the federal government and beneficiary recipients in processing grant or entitlement resources,those resources should be accounted for in an agency fund.

Question

Quizplus · Accepted Answer

A "pass-through" agency fund should be used by the intermediary government only if the government has no administrative or direct financial involvement in determining to whom, how, and/or for what purposes the monies are to be used. If there is administrative or direct financial involvement, a special revenue fund must be used.

If a State or Local Government Acts as an Intermediary