Question

Which of the following grants received by a city would most appropriately be recorded in a pass-through agency fund?

a. A state grant to a local not-for-profit organization for summer employment of juveniles.
b. A federal grant made directly to a county for repairing and overhauling bridges.
c. A federal grant via the state government for which the city will be responsible for upgrading low-rent housing.
d. A federal grant for which the ultimate allocation and use of the money will be decided by the state government. The city will serve as a conduit for the money between the state government and various not-for-profit organizations who will use the money.

Answer 1

The most appropriate grant to be recorded in a pass-through agency fund is option c, where the city receives a federal grant via the state government for upgrading low-rent housing and acts as a conduit between the state government and not-for-profit organizations.

Step-by-step explanation:

The most appropriate grant to be recorded in a pass-through agency fund would be option c.

This is because a pass-through agency fund is used when a government entity acts as a conduit for funds between a higher level of government and other organizations. In this case, the city will receive a federal grant from the state government for upgrading low-rent housing. The city will then distribute the funds to various not-for-profit organizations that will use the money for the intended purpose.