Required information The rowowing nformation appies to the questios displayed be

Question

Required information The rowowing nformation appies to the questios displayed below Evergreen County acts as the disbursing agent for a state grant for the performing arts. The states responsible for determining which local governments are e gible for the grant money and for following up to ensure that the recipients comply with the requirements of the grant. The county receves the grant funds and disburses them according to the schedule provided by the state. When the county was asked to participate, the county's attorney was concerned that the county might be held responsible for any disallowed costs. The state agreed to accept responsibility for any disallowed costs, so the county decided to act as the custodian for the state for this grant. The schedule for the grant funds to be awarded in the current fiscal year is shown below City of Boulder $2,130,000 Aspen Township 1,430,000 930,000 Firtree village6301000 $5,120,000 Snowton Total c. How wouild the activities related to the grant be reported in the county's financial statements? Report in a separate column on the statement of fiduciary net position. Report in the Government-wide financial statements. Report as part of the General fund.

Explanation / Answer

The Answer is "A"

A. Report in a Separate column on the statement of fiduciary net position.

It will be recorded in a Separate column on the statement of fiduciary net position as per

generally accounting principles. Since there is a time gap between the receipt and payment of

grant fund, there may arise a difference in the amounts.

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