Deposit funds are a type of fiduciary fund used by federal agencies to account for monies held temporarily for others and where the government does not have ownership. These funds are not available for general government use and are excluded from budgetary resources.
Examples include:
Unidentified remittances
Bid deposits or earnest money
Collections awaiting resolution of ownership
These do not represent revenue to the federal government and are instead liabilities until disbursed.
Relevant References:
Treasury Financial Manual (TFM), Volume I, Part 2, Chapter 1500 – Deposit Fund Accounts
GAO Red Book – Federal Appropriations Law
FASAB SFFAS No. 1 – Accounting for Selected Assets and Liabilities
Answer: C. funds held temporarily until ownership is determined
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