GOV-Interfund Transfers

Question 1

How are GOV funds reporting interfund transfers?

Answer 1

Governmental funds receiving transfers should report them as Other Financing Sources in the “Other Financing Sources (Uses)” section of the Statement of Revenues, Expenditures, and Changes in Fund Balance.

Question 2

What are reciprocal interfund activities?

Answer 2

Reciprocal interfund activities are activities that affect two funds resulting from loans or services provided and received. The transfer of $200,000 from the general fund to establish a new enterprise fund and the routing transfer of $50,000 from the general fund to the debt service fund are of this type. Only the billing by the internal service fund represents a symmetrical transaction between two funds.
HINT
two ways buyer seller relationship, payback items

Question 3

what are non reciprocal interfund activiies

Answer 3

Nonreciprocal interfund activities consist of flows of assets without equivalent flows in return.
HINT
Transfer funds nothing in return

Question 4

Gem City’s internal service fund received $50,000 cash from the general fund that does not need to be repaid. This should be reported in Gem’s internal service fund as a credit to:

Answer 4

Inflows of assets from other funds without a requirement for repayment are considered interfund transfers. In proprietary funds (which include internal service funds), transfers should be reported separately after nonoperating revenues and expenses in the statement of revenues, expenses and changes in fund net position. An interfund transfer to/from a governmental fund should be reported as “other financing sources or uses” in the governmental fund.