An enterprise fund should be used when the government has a policy to establish fees to cover the costs of providing services for an activity.

Question

Quizplus · Accepted Answer

According to GASB Statement 34, enterprise funds must be used when certain criteria are met. They are 1) When debt is backed solely by fees and charges. 2) When a legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered though fees or charges. Or 3) When a government has a policy to establish fees and charges to cover the cost of providing services for an activity.

An Enterprise Fund Should Be Used When the Government Has