Which statement is included within the BASIC financial statements for agency funds?

The basic financial statements for agency funds primarily include the statement of fiduciary net assets, which provides detailed information about the assets and liabilities of the agency funds at a specific point in time. This statement outlines the fiduciary net assets, emphasizing the liabilities held, and highlights that agency funds are held in a trustee capacity, not with the intent to generate profit or provide benefits to the government entity or the fund itself.

While the statement of changes in fiduciary net assets does exist, it is not classified as a basic financial statement specifically for agency funds. Instead, agency funds typically present the statement of changes in assets and liabilities to depict the flow of activity within the agency fund during the reporting period.

Thus, the inclusion of the statement of fiduciary net assets as part of the basic financial statements is crucial, as it aligns with the objective of providing transparent and useful financial information regarding the fiduciary responsibilities of the agency fund.