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Government Mandated Nonexchange
Transactions
•
Government at one level provides
resources to a government at another
level and requires the funds to be used for
a specific purpose
•
Examples
–
federal mandates on state & local
governments
–
state mandates on local governments
One government pays for the programs it requires to be established and run by another government.
Entitlement programs are perhaps the best example of these nonexchange transactions.
May include a time restriction as to when the resources may be used.