Which characteristic does NOT differentiate trust funds from agency funds?

Trust funds and agency funds serve different purposes in government accounting, but some characteristics of these funds do overlap. The correct answer highlights a characteristic that does not set them apart.

The availability of resources to support government programs is a commonality rather than a differentiating factor between trust funds and agency funds. Both types of funds might involve resources that can be allocated to specific projects or programs. In the case of trust funds, these are often created to hold assets for specific beneficiaries and may be used to support government programs indirectly. Agency funds, on the other hand, typically serve as custodial accounts held for the benefit of others, meaning that the governmental unit does not have discretion over the use of those resources, as they are simply acting as an agent.

The degree of management involvement and the length of time resources are held are characteristics that do indeed differentiate the two types of funds. Trust funds usually involve more management decision-making regarding the funds' use and may hold resources for a longer duration depending on their purpose, while agency funds are often more transient and less directly managed by the government. Therefore, these two elements underscore the differences between the two fund types, while the availability of resources does not inherently set them apart.