Internal vs. External Activity and
Balances
•In
government-wide financial statements, some internal activity and
balances must be reclassified, consolidated, or eliminated.
•Internal
activity and balances – result of resource flows between the
funds of a primary government (including blended components, but not discrete
component units)
•External
activity and balances – result of resource flows between the
primary government and other parties external to the primary
government (i.e. vendors, contractors, legally separate discretely presented
component units, etc.)
•