Final answer:
It is true that public institutions treat Pell Grants as nonexchange revenue upon receipt, while private institutions treat these as resources held for students in an agency relationship.
Step-by-step explanation:
The statement mentioned, indicating that public institutions treat Pell Grants as nonexchange revenue upon receipt of the funds, while private institutions treat these as resources held for the student in an agency relationship, is True. This distinction highlights the different accounting treatments applied by public and private institutions when it comes to such federal aid. Public institutions recognize Pell Grants right away because these funds bolster the institution's own finances, rather than being earmarked for specific students. On the other hand, private institutions may see themselves more as intermediaries, holding the funds on behalf of the eligible students.