Final answer:
The incorrect statement regarding the financial reporting of agency funds is that 'Agency fund financial information is reported in a separate column of the government-wide statement of activities' option (c).
Step-by-step explanation:
The question pertains to the financial reporting of agency funds within the context of governmental accounting and the standards set by the Governmental Accounting Standards Board (GASB). To address the statement that is not true among the options provided:
- (a) Agency funds are not included in the statement of changes in fiduciary net position - This is true since agency funds act as custodial funds and do not have a measure of results of operations.
- (b) Fiduciary activities are reported only in the fiduciary fund financial statements - This is also true; fiduciary activities are reported separately from governmental activities.
- (c) Agency fund financial information is reported in a separate column of the government-wide statement of activities - This statement is not true. Agency funds, due to their custodial nature, are not reported on the government-wide statement of activities.
- (d) GASB standards do not require disclosure of the assets and liabilities of individual agency funds - This is true, as typically only aggregated data is required for disclosure.
Therefore, the statement that is not true regarding the financial reporting of agency funds is: 'c. Agency fund financial information is reported in a separate column of the government-wide statement of activities.