A custodial fund should be used to account for special assessment billing and collection, and related debt service of special assessment debt, if the government has no responsibility for the debt.

Question

Quizplus · Accepted Answer

A custodial fund is used to account for assets that the government holds on behalf of others, and is appropriate for special assessment billing and collection when the government has no responsibility for the debt. In this case, the special assessment debt is the responsibility of the property owners who are subject to the assessment, and the government is simply acting as an agent in collecting and distributing the assessments and related debt service payments.

A Custodial Fund Should Be Used to Account for Special