What is a custodial fund under GASB?
Custodial funds will consist of assets held which will benefit parties that are not part of the government administering the fund. Governments administering custodial funds cannot be involved in administrative decision making regarding the use or distributions of fund assets.
Governments can, however, perform the following actions:
1) Billing property owners for assessments.
2) Collecting installments of assessments and interest on assessments.
3) Paying interest and principal on the special assessment debt.
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What assertions are included in the presentation and disclosure level of assertions?
Presentation and disclosure related to the actual financial statements. Basically, the audit team needs to make sure that the financial statements address each of the four key assertions listed in the visual below:
What assertions are included in the account balance category?
The account balance category addresses the balance sheet. The four assertions included in this category are occurrence, rights & obligations, completeness, and valuation & allocation.
What are the assertions for the transaction & events level?
The transaction & events assertions relate to the income statement and the activity throughout the year. The five key assertions include occurrence, completeness, accuracy, cutoff, and classification.