Regarding external financial reporting for governmental units, Internal Service Funds are reported in total in a separate column in the fund-based balance sheet for Proprietary Funds.

Question

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Internal Service Funds, which are a type of Proprietary Fund, are indeed reported in total in a separate column in the fund-based balance sheet for Proprietary Funds in external financial reporting for governmental units. This is because Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursement basis, and their financial information is essential for comprehensive reporting.

Regarding External Financial Reporting for Governmental Units, Internal Service Funds