If a reporting government is only secondarily responsible for debt under a construction type special assessment, the special assessment is reported in an Agency Fund.

Question

Quizplus · Accepted Answer

If the government is liable, either primarily or secondarily, for the payment of special assessment debt in the event of default by the property owners, the transactions are handled if as if it were a government project. A capital projects fund should account for the proceeds of the debt and the construction expenditures.

If a Reporting Government Is Only Secondarily Responsible for Debt