Internal Service funds are treated as governmental activities in the government-wide statements if the only "buyers" are departments within the General Fund.

Question

Quizplus · Accepted Answer

Internal Service funds are considered part of the reporting entity and are included in the government-wide statements as governmental activities if they are primarily used by departments within the General Fund or other governmental funds. Therefore, if the only buyers of the services provided by an Internal Service fund are departments within the General Fund (which is a governmental fund), then the fund will be treated as part of governmental activities in the government-wide statements.

Internal Service Funds Are Treated as Governmental Activities in the Government-Wide