3 Accounting
3.9 Interfund Activities
3.9.2 Property Transfers
3.9.2.10 If the contributed nonmonetary assets were originally acquired with restricted resources, the government must monitor their usage and disposal to assure that one fund does not benefit from another (RCW 43.09.210). If management's intentions are to repay the cash transferred to the internal service fund, the transfer should be recorded as an interfund loan in the appropriate funds (see BARS 3.9.1, Interfund Loans). Transfers of assets within the government must be reported at book value. It cannot result in an overall increase in net position/fund balance within the government.
The transfer of general capital assets (originally purchased with unrestricted resources) between funds of the same government should be accounted for as a change in location and/or custodian. If the resources involved with the original purchase were restricted, the capital assets must be paid for by the receiving fund.