Inter-fund Transfers

Question 0

• inter-fund services provided and used
• quasi-external transactions
• provider of service records revenue in the selling fund
• buyer of service records expenditure or expense in the purchasing fund

Answer 0

Reciprocal or Exchange transactions

Question 1

General fund pays $4,000 for water to Water fund.

Record for General fund and for Water fund.

What type of transaction is this?

Answer 1

General fund
Debit - Expenditure 4,000
Credit - Cash 4,000

Water fund
Cash 4,000
Revenue. 4,000

Reciprocal or exchange transaction

Question 2

• inter-fund transfers: funds transfer to distribute cash to/from various funds
• there is no equivalent flow of assets in return and no repayment is expected
• these transfers are part of “other financing sources/uses” on the fund statement of revenue, expenditure and change in fund balance

Answer 2

No reciprocal/non-exchange transactions