Final answer:
Fiduciary funds are sometimes identified in the annual reports of state and local governments as Trust and Agency Funds.
Step-by-step explanation:
True. Fiduciary funds are indeed sometimes identified in the annual reports of state and local governments as Trust and Agency Funds.
These funds are used to account for resources that governments hold in a fiduciary capacity, meaning they are holding and managing the resources on behalf of others. Trust and Agency Funds include resources such as pension funds, investment funds, and funds held for individual beneficiaries or other governments.