Special assessment bonds having no governmental commitment are recorded as liabilities of an Agency Fund at the time of their issuance.

Question

Quizplus · Accepted Answer

Special assessment bonds without governmental commitment are not recorded as liabilities in an Agency Fund because Agency Funds are custodial in nature and do not record long-term liabilities. These bonds are typically the responsibility of the property owners who benefit from the improvements funded by the bonds.

Special Assessment Bonds Having no Governmental Commitment Are Recorded as Liabilities