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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