The policy's implication about central funding for sale proceeds is that they are always deposited in central funds.

The policy's implication about central funding for sale proceeds is that they are always deposited in central funds.

• A. True
• B. False
• C. Not specified
• D. Only with approval

Answer: (B)

Central funding for sale proceeds is not an absolute rule. In practice, receipts from the sale of government assets are generally tracked and deposited to central funds to improve accountability, but there are statutory and regulatory exceptions that direct where the proceeds should go. Depending on the asset, how it was financed, and the applicable laws, sale proceeds can be credited back to the fund that financed the asset, deposited into a revolving or working capital fund to support ongoing operations, or used as offsetting collections. Because of these possible exceptions, you cannot state that sale proceeds must “always” be deposited in central funds—the implication is not correct.

Central funding for sale proceeds is not an absolute rule. In practice, receipts from the sale of government assets are generally tracked and deposited to central funds to improve accountability, but there are statutory and regulatory exceptions that direct where the proceeds should go. Depending on the asset, how it was financed, and the applicable laws, sale proceeds can be credited back to the fund that financed the asset, deposited into a revolving or working capital fund to support ongoing operations, or used as offsetting collections. Because of these possible exceptions, you cannot state that sale proceeds must “always” be deposited in central funds—the implication is not correct.