The City of Highland Hills receives a federal grant to assist in nutrition programs for its senior citizens.The City will select the contractors that will provide meals and approve the participants in the program.The proceeds of this grant should be accounted for in which of the following funds of the City?

Question

Quizplus · Accepted Answer

Since the City is selecting contractors and approving participants for its own program, the grant proceeds should be accounted for in a governmental (public) fund. An enterprise fund would be used for a government-owned and operated business-type activity, an agency fund would be used to hold and disburse funds for a specific purpose or beneficiary, and a private-purpose trust fund would be used for funds held for the benefit of specific individuals or organizations.

The City of Highland Hills Receives a Federal Grant to Assist