In the
process of aggregating data for the statements of net assets and the statements
of activities, some amounts reported as interfund activity and balances in the
funds should be eliminated or reclassified.
Eliminations in the statement of activities should be made to eliminate the grossing-up
effect.
Interfund receivables and
payable should be eliminated in the governmental and business-type activities
columns of the statements of net assets, except for the net residual amounts
due between governmental and business type activities.
Amounts reported in the funds as receivable
from or payable to fiduciary funds should be included as receivables and
payables to external parties.
All
internal balances should be eliminated in the total column.