Fiduciary Funds are held for whom?

Fiduciary funds are specifically designed to account for resources that a government holds in a trustee or agency capacity for individuals, private organizations, or other governmental entities. This distinguishes them from the government's own use of funds for its operations and services.

When we say these funds are held for "someone else," it refers to the fact that the government is not the ultimate beneficiary of these funds; rather, it is holding or managing assets on behalf of other parties. Examples of fiduciary funds include trust funds that may be established for specific beneficiaries, pension plans, or endowments where the government acts as a steward of those resources.

The other options don’t accurately encapsulate the nature of fiduciary funds. They are not solely for governmental use activities, public benefit, or limited to state agencies, as they extend to various beneficiaries beyond these entities. The defining characteristic of fiduciary funds is that they are specifically dedicated to managing resources for other parties, thereby underscoring the accurate interpretation that they are held for "someone else."