Exam 7: Fiduciary Funds, Interfund Transactions

In an agency fund, assets are equal to:

What are the required statements and schedules for a pension trust fund and in what part of the CAFR are the schedules reported?

Agency fund assets are offset by liabilities equal in amount, so no fund equity exists.

The "external portion" of an investment trust fund relates to…

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

Donated resources that benefit individuals or private organizations are reported in a private-purpose trust fund.

Fiduciary Funds are not included in the government-wide financial statements.

An endowment to support scholarships would most likely be accounted for in which of the following fund types?

The purpose of a Statement of Fiduciary Net Position for a defined benefit pension plan is to enable the reader to determine whether the pension plan is sufficiently funded.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals, organizations, and other governmental units.

GASB had issued a proposed standard that would more clearly define fiduciary activities and change the categories of fiduciary funds. Which of the following statements is correct?

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan, and a statewide agency plan. The City would include in its CAFR pension trust fund financial statements for:

Contrast the purpose of Private-purpose Trust Funds and Permanent Funds.

If a government has a locally administered pension plan for which it is trustee, the government would report the locally administered plan as a pension trust fund in the basic financial statements.

The City of Sycamore has investments in bonds. These bonds have an amortized cost of $1,997,000. At year end, the financial press reports a market value of $2,002,600 for these bonds. The original cost of the bonds was $1,993,000. The par value at maturity will be $2,000,000. The amount at which the investments would be reported is:

The terms used for classification of items on the Statement of Changes in Fiduciary Net Position are:

An investment trust fund is used to account for the internal portion of a multi-government investment pool, when the reporting government is trustee.

GASB had issued a proposed standard that would more clearly define fiduciary activities and change the categories of fiduciary funds. Activities meeting the definition of fiduciary in nature but that lack a formal trust agreement will in the future be reported in a new category, custodial fund. Custodial funds would include many activities currently reported in agency funds as well as pass-through grants and other activities lacking trust agreements.

At the time this textbook went to publishing, the GASB had issued a proposed standard that would more clearly define fiduciary activities and change the categories of fiduciary funds. Under the proposed standard, pension and postemployment benefit trusts continue to be reported in fiduciary funds. Additionally, fiduciary activities include activities in which a government controls assets that are not derived solely from the government's own tax or service revenue, and one or more of four criteria is met: Name the four criteria that would require a fund to be classified as a fiduciary?

A private-purpose trust fund where the principal is not expendable, normally it is called a/an: