1. A member of the city commission insists that the city's internal fund prepare and submit a budget for commission approval. The commissioner argues that it is only through the budget that the commissioners will be able to ensure control over the internal service fund. Do you agree or disagree with the commissioner's argument? Explain your answer.

2. Describe the basic activities conducted by a tax custodial fund. What are some of the issues that make tax custodial accounting complex?