Exam 7: Fiduciary Funds, Inter-fund Transactions

The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30,2015,the following transactions occurred: 1.The City contributed $ 1,200,000 in cash to the plan. Employee members contributed an additional $ 1,200,000. 2.Annuity benefits in the amount of $255,000 were recorded as liabilities. 3.Annuity benefits,previously recorded as liabilities,were paid in cash in the amount of $207,000. 4.Investment income received in cash amounted to $102,000. In addition,$16,000 in interest receivable was accrued at year-end. 5.Additional investments in the amount of $2,100,000 were purchased. 6.The market value of investments decreased by $9,100. 7.Nominal accounts for the year were closed. Required: Prepare journal entries for the above transactions on the books of the City of Richmond Public Safety Employee Retirement Trust Fund.

Governments should report the net pension liability in the governmental fund basis statements even if it is not expected to be paid from current financial resources.

Fiduciary Fund activities report in terms of Additions and Deductions.

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as deferred outflows or deferred inflows in the period that the value changes.

Assume a government makes a change of assumption that results in an increase in its estimate of the net pension liability. This will be recorded in the government-wide statements as an increase in the net pension liability and an increase in deferred outflows of resources.

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

Which fund is used when a contributor specifies that the income of trust assets be used for the benefit of the general citizenry?

What is a defined benefit pension plan?

Which of the following is true regarding pension (and other employee benefit)trust funds?

Clinton County maintains an investment trust fund for the investments of governments within its borders. All the investments had determinable fair values. Which of the following is true regarding investment trust funds and investments in general?

Which of the Fiduciary Funds listed below is used to account for the assets held by a government acting as an agent for one or more other governmental units?

Agency fund assets belong to the party or parties for which the government acts as agent.

Where is the net pension liability shown in a Comprehensive Annual Financial Report for employees in governmental type activities?

Which type of pension plan most commonly results in an unfunded actuarial liability?

The Fiduciary Funds are included in the Government-Wide Financial Statements.

Investments of internal investment pools are to be reported in:

How are Fiduciary Funds presented in the Government-wide Financial Statements?

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

What are the four types of fiduciary funds and the function of each?

When accounting for pension benefits,the net pension obligation for employees of proprietary activities is: