What results when an internal service fund supports both governmental and business-type activities?

When an internal service fund supports both governmental and business-type activities, the result is often referred to as a crossover amount. This occurs when the fund's financial resources or activities are utilized in a way that blurs the lines between governmental functions, which are typically funded by taxes and grants, and business-type activities that operate more like a private sector entity, generating revenue through fees for services.

The crossover amount captures the intermixing of funding and resources because it reflects how internal service funds provide services across different types of activities. This can complicate financial reporting because the revenue generation and expenditure tracking may reflect both governmental and proprietary fund attributes. Understanding this concept is essential for accurately assessing the financial position and performance of the fund, as well as ensuring compliance with reporting standards that require clear differentiation between governmental and business-type activities.

In contrast to this, blended balances, adjusted fiscal reports, or combined activity funds do not specifically address the intermingling of governmental and business-type funds in this manner, which is a key element in the crossover amount context.