Reference no: EM132821297

Question 1: What is the purpose of an internal service fund? What are its advantages and disadvantages? What is considered compliant with for-profit businesses in terms of financial reporting?

Question 2: Service Concession Arrangements (SCAs) allow governments to enter into an agreement with another public or private sector entity, in which the external entity, the operator, provides public services through the use of the asset, versus to the transferring government. This allows the government to generate income and cash flows from its capital assets and possibly improve the efficiency of public services. Under an SCA, the government essentially transfers the rights and obligations of an asset to the external entity. What are the two measures that help protect a government from failure by a contractor to meet the terms and specifications of such an agreement? Describe each measure and its main purpose.