Exam 7: Fiduciary Funds, Inter-fund Transactions

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.

Which of the following is true regarding fiduciary funds?

Fiduciary fund financial statements include the Statement of Fiduciary Net Position,Statement of Changes in Fiduciary Net Position,and Statement of Cash Flows.

Investments in a private-purpose trust fund should generally be reported at fair market value.

Investment pools invested from external parties are recorded in Investment Trust Funds.

GASB requires that endowments report investments at fair value unless the investments are in real estate

GASB Standards require that IRS 457 Deferred Compensation Plans,if administered by the governmental unit,be reported as pension trust funds.

Which of the following is true regarding accounting for investments by state and local governmental units?

When accounting for defined benefit pensions,the net pension liability for employees of governmental activities is:

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

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

An endowment to provide scholarships would be reported in a Private-purpose Trust Fund.

Fiduciary funds are reported only in the fund-basis financial statements.

Jefferson County maintains a tax agency fund for use by the County Treasurer to record receivables,collections,and disbursements of all property tax collections to all units of government in the county. In the year 2015,the following taxes were levied: 1.$8,820,000 in property taxes were levied for the General Fund,of which 2% are deemed to be uncollectible. 2.$4,830,000 in property taxes were levied for the school district. 3.$4,410,000 in property taxes were levied for a village in the county. Required: A.Prepare the journal entries for each unit and the Agency Fund to record these levies. B.The agency fund then collected 90% of the levy for each fund. The Jefferson County General Fund charges 1.5% of collections as a fee for maintaining the agency fund. Prepare the journal entries for each unit and the Agency Fund to record these collections and fees.

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.

Assets held in trust that are restricted to benefit the citizenry in general or in support of the reporting government's programs would be reported as permanent funds if nonexpendable.

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

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or private organizations.

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula,rather than the amount contributed to the plan.

Fiduciary funds use the accrual basis of accounting.